Just a few comments. Before I start I want to say that it's a great day here in Steeler Nation as we prepare to watch our Steelers take their first step towards winning a 7th Lombardi trophy:
Getting back to the economy. Former LA Mayor Richard Riordan was recently caught doing some truth telling in an interview recently. He warns that 90% of the cities in this country will be bankrupt within 5 years thanks to unions who have corrupted the whole political system.
Let me do a quick side bar here before I continue. I am very busy with business over the next month so I might not be posting as much as I usually do. Work comes first folks because unfortunately blogging doesn't pay the bills.
Let me also add that I am disgusted at what's I am seeing on Wall St and in Washington. The muni market is showing signs of collapse. Food and gas prices are soaring. Tunisia just overthrew their government because of rising food prices and a 50% unemployment rate among the younger generation.
Despite all of this chaos, the market trades as if it doesn't have a care in the world while Rome slowly burns in the background.
The whole thing is absolutely ludicrous and I want no part of it right now. In a nutshell: Stocks are too expensive to buy at this point, and the Fed's money printing makes shorting the market too dangerous.
As a result, I sit here in cash with my thumb up my ass waiting for this absurdity to end. The way I see it, the next big event is the ending of QE2 in June. The market will start to worry about this in March/April and I expect chaos in DC as the Fed tries to figure out what to do.
Remember folks: Without this insane government spending we would be in the middle of a depression right now. The problem is the government cannot sustain this Ponzi scheme without destroying the dollar. We are broke and Moody's is talking about lowering our credit rating as a result of this stupidity.
Enjoy the interview below. It's always nice to see a smart guy who has a clue.