I recently discovered Reggie Middleton’s BoomBustBlog. He is simply a very smart and witty guy from whom one can learn a lot quickly about what is going on…
I’ve noticed a few queries as to my opinion of whether financial stocks will get better or if the worst is behind us. I actually thought I made my viewpoint clear. Obviously not, so let me be a bit more blunt. Things are going to get very ugly, starting this week – and from there it will get even uglier – and after that the bad part will start. Since I cannot predict the future I will shy away from X will happen in Y months, but the world’s credit and real asset markets are in a bad way and need a severe correction to reach a level of peaceful equilibrium. The central banks and governments appear to be dead set against letting capitalistic nature take its course, thus we will be in a tug of war akin to farmers trying to prevent tornadoes from destroying their crops. Best efforts may appear valiant, but in the end fruitless. Don’t mess with Mother Nature. I will put a post up in a few hours (partially free) that consists of the research that finally explains, in explicit detail, the industrial/manufacturing portion of my investment thesis and leads into the official global macro theme (it’s 33 pages and consumed a lot of resources at a very trying time, so the bulk of it will be for subscribers), followed by bankruptcy candidates that made it to the shortlists but were not selected for final analysis.
more from Reggie here.
Plus, an explanation of Credit Default Swaps and why anyone should care here.