The news today mostly supports the key themes I’ve been exploring:
- Frugality is now hip (which is deflationary) and people are losing trust in our institutions (structural shifts are coming in the finance industry). Yahoo!Finance, NY Times, WSJ.
- The threat of GDII (Great Depression II) remains real as the stimulus package appears to be getting bogged down in politics. Talking Points Memo and WSJ.
- Continued grim economic news will persist (no sustained rally in equity prices for a while). NY Times and WSJ.
- The economic threats are global with no geography offering safety and a coordinated global response is required, but lacking so far. NY Times and FT.
- The Fed understands the severity of the problem, but is running out of options to deal with it. NY Times.
But, there are needles to be found in this haystack for diligent investors. In particular, bonds continue to be an excellent refuge (get paid to wait this thing out). Barron’s.