Wednesday, September 01, 2010

Global Media Disseminates The Fairytale Of Dragon Blowing Bear-Melting Fire

While the global media focuses on "better or less bad than expected data" today, which is enough for headline investors, but the real reason, in my view, may be different. Sentiment starting from Main-street to Riches, and even to some institutionals, while some segments show total complacency, has deteriorated for some time now, and the critical technicals probably play a much bigger role today for this anticipated short squeeze.

Media has been covering the "bond bubble" for some time now, but the astute James Montier did it yesterday. But read the comments toooooo... The time will come, but it does not feel right yet. Timing is very very difficult and may make you dependant on social benefits ...

It is likely that MMT-ers, like this one, could deal with bond bubbles (hardly pleasant cures in real terms), but they still need some time ... Until that the political gridlock between austerians and Keynesians will pump, very likely, the bubble a bit bigger.

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