15 OCT 2010, Friday (AM)

• Federal Reserve Chairman Bernanke in a speech this morning just said that inflation is too low and that the Federal Reserve is now committed to create a higher inflation level.  WHAT???  When have you ever heard that in your lifetime.  Geez....you'd think gas was 37 cents a gallon...not.
• Unemployment continues to rise and more folks are rolling off the extended benefits.  How will those folks be able to pay for more inflation?
• Housing market is freezing up because of the title paperwork legalities.
• Cash flow to the mortgage backed securities (MBS) / derivatives is drying up so that impacts banks and even pension funds holding them.
• Banks are still in a bad way and it will get worse the longer the housing mess exists.
• And the market is roaring upward still...am I taking crazy pills?
• We're in worse shape now than when this all cracked open in 2007 it seems but people are getting giddy.  Bullish sentiment is getting high again.
• When it gets like this...it can change very quickly...you just never know when.  
• Good luck.