couple of random thoughts:

1. don't try to make sense of the markets. whatever you think, you're wrong. what's that saying? the market can be irrational longer than you can stay solvent?

2. i was having dinner with a friend at hedge fund and she was saying 'flat is the new up!' which is apparently somekind of new jargon to describe the realities of the economy...kind of like 'we're a service economy' and 'earnings don't matter'. anyway, i kept think 'down is the new up...'

3. i think a rate cut would temporarily suspend the dollar rally, but its not going to bring the dollar back to all time lows. which is what i need. i honestly don't think that will happen until the treasury starts monetizing all this debt, which could be a ways off.

again, i'd love to be proven wrong.

the fact is this (and readers of other blogs or faber will recognize this), there are both inflationary and deflationary forces in effect. the inflationary forces are just barely trying to keep up with deflation.

ben will have to kick up the inflationary jedi powers up a notch eventually, but we're not there yet.

jmho