August 2012


Do you think Dexter should die at the end of the series?
No (87%)
Yes (13%)
Total Votes: 76,552

I voted no. I’d like to see him continue to “get away with it,” after all, he’s killing the bad chaps.

Is now posted next door. I’ll have the results up later.

To libertarians every re-distribution of welfare that ignores property rights is indefensible. But why should property rights be put above our rights to medical attention, education and health? To secure the possibilities of a decent life may demand redistribution, and meaningful freedom presupposes that we can develop our capabilities and take part in the welfare. Freedom has to do with more than property.

Simply because “medical attention, education, and health” are not rights. They are scarce economic goods. A right must be a “universal.”

In his speech Friday at Jackson Hole, Federal Reserve Chairman Ben Bernanke made it clear that the Fed stands ready to help the economy with further quantitative easing. But he also acknowledged the headwinds now facing the economy — challenges that may be immune to QE3′s tonic

Second, spending cuts at all levels of government have hurt business activity. Plus, uncertainty about the fiscal cliff and lifting the federal debt ceiling “are probably also restraining activity,” Bernanke said.

So, stimulus on all fronts.

I am a little surprised, with the election around the corner, I thought he would commit to a date. Operation Twist is still going, so until that ends…?

Long Trannies/Short SPX.

Bernanke, to date, has proven that he is no Volcker. Therefore it is a safe bet to state that his only possible reactions will be [i] continue to inflate [ii] do nothing further. It is unlikely, with a Presidential election looming, and Romney publically stating that he will be replaced, that he will favour any requests from Obama to “help” his chances in winning the election through an improvement in the economy.

Bernanke sincerely believes that inflating is the way forward, unless he has been lying for all these years. Therefore, the question becomes not “if” but “when” will Bernanke open the spigot of further money/credit creation again?

How quickly do markets react? Quickly. Any announcement of further QE will have an effect in the market as soon as the words leave his lips. The initial move, may not be the true move. QE will, at some point create another bull move in stocks, but, the first move may not be bullish, it could go either way, such are the games played in the market.

However, this move in the market, does not represent the move in economic indicators. They require far more time to register inflationary pressures. I suspect therefore, tomorrow Bernanke will announce a new QE.

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