Our Market is Actively Manipulated by the Government, Relax...

It strikes me that despite the current mood of death and despair that stalks the market, we should all wake up and smell the negative real interest rates! So let's lever-up, get LONG, and quit all this belly-aching about a "credit crisis." The government just bailed out the debt holders which means credit and moral hazard will rain from the sky, eventually. So while prices are getting smashed I will lever up and buy.

The dollar has been rallying to its high against currencies far and wide. This means despite the losses we feel so acutely in this country, foreigners who bought at the lows are still making dough. So blow out the trade gap, and give them all the cash, because our people can print more of it just as fast. Pump it into their banks and strengthen trade ties, they all have to buy our debt not to let their currencies rise. Thus they will lend it right back to us and we will do it all again, and I will multiply my position by ten.

Remember Rothschild: "Buy when there is blood in the streets." I will go further. Wait 'til it runs into the Hudson, the Thames, the Rhine. That's when you will know it is time. But it is when the bounce has started in earnest that you must push your credit furthest and watch asset prices soar higher than the burj dubai.

But when bank profits wax fat and real estate agents are telling YOU to buy this stock and that, this is the time to pull your position back. Cash in and check out, buy some puts if you must-o... because trying to short the top is an easy path to bust-o.

-RiskAffine