Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Creating More Debt in a Debt-Laden World


What will happen to bulls while under this drug-induced haze?

Let's see, we've got unity and accord at the G20, a relaxation of mark-to-market accounting rules, global markets cut in half in the last two years, the government throwing everything and the kitchen sink at the tape and a seemingly endless supply of innovative inventions designed to spur lending. We're good, right?

As a trader, I'm schooled to focus on the journey rather than the destination and we walk that walk every day, sometimes right, sometimes wrong but always honest. What I'm not reconciling, however, is the fundamental disconnect in this equation, the 800-pound elephant in the room and the fatal flaw for the Matador Crowd.

The only true solution for what ails our economy is debt destruction yet all we're seeing is an attempt to create more debt.

How this manifests remains to be seen and to be sure, the circle smirk can last for a while. I will simply ask Minyans to maintain perspective and remember that the grand experiment gone awry created cumulative imbalances that won't be cured with a garden variety V-shaped recovery. Indeed, bear market rallies aside, this particular puppy will take years to resolve itself.

It will take many shapes and forms--from potential currency shocks to social manifestation--and proper preparation, prudence and proactive intelligence will serve us in good stead. Make no mistake Minyans, I'm extremely bullish on the opportunities that will emerge after the medicine of time and price is taken.

My concern, I suppose, is what might happen to Hoofy while he's under the influence of a drug induced haze.

Financial staying power. I remind ye faithful of this concept while the screens are green as most folks are in a better mood. It should never take something bad--or lower prices--to reinforce the notion of risk management as we together find our way.

Good luck today!


In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.

< Previous
  • 1
Next >
No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos