A Rock and a Hard Place

Wow. The markets really dont believe that the Operation Twist can have an  positive effect on the economy or at the very least counterbalance the European debacle which is quickly gathering momentum. With a potential trade war brewing between Brazil and China – i’m again asking wheres the growth going to come from? Even the Fed say the outlook is bad. But how many times has the Fed switched gears after only 24hrs of their official statement. Given the Fed’s willingness to hold rates at zero for another two years tells us that 2012 is poised to be a recessionary year. I think we need another co-ordinated central bank move to quell this unrest. The USD is again becoming a default safety asset regardless on how little investors get paid – It looks like all out liquidation and a run for the exits. Bottom line: raise some cash here and wait for a capitulation of sorts in the next few weeks where you may be able to buy some of yor favorite companies for bargain base prices.


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