Risk is back on!!

> Stocks at highs not seen since 2008

Yet well below the previous highs. I don't quite know if I'd call it a bubble.

One could call it a bear market rally if you think its temporary... but bubble... hmmm.

I would agree with you if it were not for the high valuations.

IBM doesnt put up big numbers in bear markets. we're goin higher

Margin is at its highest EVER except for 2008. Real short-term interest rates are MINUS 5%. Fed flooding the economy with $75 BILLION a month. Moving average p/e ratio (calculated by Shiller, of Case-Shiller) at 24x, versus historical norm of 12x.

China just raised interest rates and reserve requirements. Brazil raised interest rates to 12%. Saudi Arabia says demand for oil is low, slashes output, yet price remains above $110 a barrel. Unemployment remains high. Housing prices continue to fall.

This is QEII at work. Chart all the markets after QEI was announced, then expanded, then let expire. Crash. Once QEII is over, mortgage bond maturities will start to drain $17 billion a month from the propped up economy. QEIII would roil the bond markets.

IBM DOES put up big numbers in bear markets: a huge part of its income is in foreign currency. Devalue the dollar, its dollar-based income goes up: if there is one euro per dollar, then one dollar in profit for every euro in profit. If there are .75 dollars per euro, dollar based income goes up 33%: every euro then buys $1.33, not $1.

Steve, are you making a call again? Please let me know for sure... because I have been selling off stock lately, but if you're saying its going to go down, that's a pretty safe bet it is going up.

Steve, are you making a call again? Please let me know for sure... because I have been selling off stock lately, but if you're saying its going to go down, that's a pretty safe bet it is going up.

I'm simply pointing out the facts, SWE. My short positions are on and they're staying on. But if you think prices are going up, I think you should buy more gold.

Of course now that you're not going to be able to watch Glenn Beck on Fox, the price of that shiny metal may be affected...