Commodity Trading & Trend Following

There seems to be tug of war between those who ” Predict” this harsh Recession will be over this quarter or next year and those that react to the economic situation. Truthfully no one knows how long this Recession will last or when it will be over. The fact is those more money has been lost recently trying to call a bottom. The next reality is that there is further evidence that there is a deepening of the slowdown not just in the US but from around the world.
1.Japan’s business-confidence fell to an all-time low
2.Europe has the lowest inflation at 0.6% in Euro dollar terms through March, the lowest level since official records began in 1996.
3.U.S home prices fell 19% in January compared to the prior year.
4.The Organization for Economic Cooperation and Development has stated the the world economy will shrink by 2.75% this year.
5.The IMF and OECD both forecast a sharp drop off in world trade.
6.Klaus Schmidt-Hebbe the head economist of the OCED stated that it is his belief that the world economy is in the midst of its deepest and most synchronized recession in our lifetimes.
7. The U.S. has been in an official recession 17 months which is one of the longest since the Great Depression of 1929.

More than these stated facts, the big concern is will all this money being thrown around, can it really assist in getting banks to lend, companies to hire, foreclosures to stop or is it more of the root of the problem. Lack of physical responsibility?

Unfortunately it is my opinion that too many have forgotten one of the simple ideas we all learned in college economics, Printing money leads to “INFLATION”. Inflation is a wealth destroyer. Prove it to yourself, open excel in your computer…but in $100 and every year take out 2%..see what you are left with after 10 years… not try the same with 5%…and 10%…and even 15%.. see what your $100.00 is worth after 10 years. You probably will not like what you see.

What do you think? Will the G20 come to a conclusion and save the world? Will all the stimulas money kick start the economy? I find it hard to believe. I believe the word “Bailout” is a much better designation than Stimulas. Instead of really addressing the issues company after company is looking for a “Bailout”.

Question is Who will be the Lender of Last Resort? Who will be left to bailout the those who Bailout?

www.myinvestorsplace.com

Bear market rallyג€¦or serious reversal?

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