Friday, November 11, 2011

Two Things

1. This whole euro mess reminds me of a zombie movie.  There are a few survivors left; oh let's call them Greece, Portugal, Spain, Italy, France, and Germany.  Ten minutes into the movie, Greece starts to cough and turn green.  Everyone knows the eventual outcome, but nobody wants to do the rational thing and put Greece out of its misery.  Meanwhile, as everyone argues whether to "kick Greece out," Italy starts to look a bit nauseous.  Now everyone's getting real nervous.  Unfortunately, this analogy does not have a good comparison for ECB/IMF/Fed bazooka where they can buy up all and any sovereign bond much to the chagrin of free market enthusiasts and people who just want to see the world burn.

2. Thanksgiving meals are 13% more expensive than last year.  This type of inflation is occurring DURING a period when most Americans believe to be a recession.  How fast would inflation rise when the economy gets back on track?  For Bernanke's sake, I hope we stay in this malaise forever (no Jimmy Carter).