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Answers I Really Wanna Know: Is Government Spending Driving this Tech Rally?

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...do you now see why a greenback rally could spell trouble for stocks?

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  • Did "Goose" from Top Gun have a last name?

  • With crude in the mid-nineties, the CRB (commodities, input costs) eyeing all-time highs, stocks buoyant still and the dollar at multi-year lows, is the notion of "asset class deflation vs. dollar devaluation" resonating yet?

  • And through that lens, do you now see why a greenback rally could spell trouble for stocks?

  • Even if crude slips precipitously (albeit in a relative fashion)?

  • How surprised are you to hear "greenback" and "rally" back-to-back in the same sentence?

  • What does that tell you?

  • Did you read the bull case on Baidu.com (BIDU) yesterday from a bull that was there early and plans to stay late?

  • Are your Mini-Minyans ready for the biggest, baddest, boldest children's initiative ever?

  • Can I please burn that black sweater now?

  • After holding (yet again) near multiyear lows, will the piggies finally be able to poke through resistance near BKX 106?

  • And IF the banks indeed turn higher, doesn't that tell us all we need to know about the year-end flow?

  • Is that the biggest "IF" in the financial universe right now?

  • Particularly given the divergence between equities and mortgage credit markets?

  • Is government spending driving this tech rally?

  • I mean, while they spent $8.5 billion on Y2K, they're tabling $100 billion for Networx and $300 billion for IPv6? (thanks Minyan Dwayne)

  • Wouldn't IPv6 have only cost $200 billion in 2002 dollars?

  • How much will that be in 2010 dollars?

  • Other than Bill Bates, has anyone in the NFL ever put a hit on like Ronnie Lott?

  • So, there's a 74% probability of a quarter-point cut tomorrow?

  • And a 12% shot of a 50 bip snip?

  • And then what?

  • UBS (UBS) posts a $712 million loss (and takes a $4.4 billion write-down) and folks breathe a sigh of relief?

  • If we were in the hole and on the lows (i.e.-if field position was heelsy), I could see that but... we're near all-time highs?

  • Will we see $100 billion in write-downs before this year is over?

  • What do cranberries do the other eleven months each year?

  • When Microsoft (MSFT) gets back to acne support, does anyone wanna bet that there will be plenty of reasons not to buy it (when textbook technicals dictate we should)?

  • Is that double top in the S&P Boo's last dance with Mary Jane this year?

  • Seriously, does anyone feel like we're at all-time highs?

  • Or does it feel funny, sorta like that rope in gym class?

  • Inflation in things we need to feed, educate and power the world?

  • Deflation in things we want such as cell phones, plasmas and laptops?

  • Won't corporate have to swallow the input cost increases (crunching margins) or pass them through to an already strapped consumer?

  • Doesn't it feel like we've been talking about this for a long time?

  • But it hasn't "mattered" due to the elasticity of debt?

  • Aren't the effects cumulative?

  • Like pizza on top of ice cream on top of peanut M&M's?

  • Or am I projecting?


R.P.


Holiday Festivus is here! Come join us and support the Ruby Peck Foundation For Children's Education at an old-fashioned Southern-style hoe-down in the heart of New York City on December 7th. Click the image below to learn more!

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