Tuesday, January 10, 2012
10 Jan 2012
Apparently the target I set for the S&P in my post from a few weeks ago would have kept me in the game a bit longer. See post: http://thelastcanary.blogspot.com/2011/12/29-dec-2011.html We are already at that line for the Dow, a bit short on the Nasdaq, and about 10 points shy on the S&P. This should allow my short term indicator to reach overbought territory again.
Looks like the market (humans) truly does always oscillate between oversold and overbought without ever learning. I'm glad it doesn't.
"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls . . . become 'profiteers', who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished not less than the proletariat. As the inflation proceeds . . . all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless."
-- John Maynard Keynes, "The Economic Consequences of the Peace", pages 220-223 (1919)
at 10:36 PM