Week In Review

Quote of the week

We’re happy to see the federal government taking some dramatic action. It reaffirms our faith in our fellow man – he’s an idiot; as we knew all along. And it confirms our opinion of the political class – they’re grifters, chiselers and opportunists.” – Bill Bonner, The Daily Reckoning

The Geopolitics of Iran

“To understand Iran, you must begin by understanding how large it is. Iran is the 17th largest country in world. It measures 1,684,000 square kilometers. That means that its territory is larger than the combined territories of France, Germany, the Netherlands, Belgium, Spain and Portugal – Western Europe. Iran is the 16th most populous country in the world, with about 70 million people. Its population is larger than the populations of either France or the United Kingdom.” more…

Bailout cure worse than disease

“The grim reality is that trillions of dollars were borrowed and spent that will never be repaid. No government program can alter that fact. Someone is going to have to pay the piper for all those granite counter tops and plasma TVs. The price tag is staggering and for all the bailouts and stimulus packages, all the government can do is exacerbate the losses and shift the burden through inflation. Nor can the government resurrect bubble home prices and the fantasy of real estate riches that went along with them. One way or another, rational home prices will be restored and the myths of our asset-based, consumption-dependent economy will be finally discredited.” more…

Ron Paul followers pose danger for McCain in West

“‘The notion is, let’s just break the GOP because the people who are running and holding office in it aren’t respecting what the constituents want,’ said Jay Weeldreyer, a Paul field director in Renton, Wash. ‘So, if we can just let them suffer a massive loss, then maybe that will get through to them.'” more…

The Maestro Won’t Face the Music

“The housing bubble was Greenspan’s doing pure and simple. He gave birth to it, nurtured it, protected it, and guided it during every stage of its development. In fact, if there was a deck of playing cards featuring the key players in this debacle, Alan Greenspan would be the ace of spades. The fact that the media still holds this joker in such high esteem is a testament to just how clueless they are. Rather than fawning over his every word, journalists should be grilling him like a CIA interrogator.” more…

And now the numbers

DOW Jones Industrials – 11,326.32 (-44.37)
Wilshire 5000 – 12,888.21 (+51.11)
CSI 300 (China) – 2,840.79 (-98.41)
BSE 500 (India) – 5,642.57 (+134.32)
MICEX (Russia) – 1,492.55 (+ 5.45)
BOVESPA (Brazil) – 57,630.35 (+431.21)
Gold/oz – 917.50 (-19.40)
Silver/oz – 17.52 (+0.145)
Copper/lb – 3.5785 (-0.0265)
Oil/bbl (Brent) – 124.18 (- 0.34)
Wheat/bu (CBT) – 7.94 (- 0.17)
Corn/bu – 5.85 (-0.115)
Rough Rice – 16.36 (- 0.36)
Dollar/Euro – 1.557 (-0.0145)
Yuan/Dollar – 6.838 (+0.023)
Yen/Dollar – 107.685 (-0.185)
Dollar/Real – 0.6431 (+0.0056)
3 Month Treasury – 1.66 (- 0.07)
2 Year Treasury – 2.49 (- 0.21)
10 Year Treasury – 3.93 (- 0.17)
30 Year Treasury – 4.56 (- 0.13)
Fed Target Rate – 2.00 (UNCHG)
U.S. Public Debt – 9,585,479,639,200.33 (+45318528183.31)

Volatility ruled the week, but in the US stocks finished almost exactly where they started the week. Bond rates are still substantially below the stated rate of inflation, much less the real non-politically manipulated rate of inflation as measured by Shadow Stats. It’s a bit laughable actually…

Anyway, my last day at the office in Albuquerque was today. We had a great lunch, shrimp scampi cooked on-site by our system’s administrator cum chef. Next week my wonderful wife and I pack up for Ann Arbor. We head out bright and early on Friday. I’m not sure what that means for the newsletter. Most likely I’ll get it sent out on Sunday evening when we get to Ann Arbor. It may come on Thursday evening. Not sure, but the show must go on!

Have a fabulous weekend!

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