Federal Reserve Chairman Ben Bernanke talks about the overall state of the economy. He also talks about housing prices and an overall outlook.




I made this video cartoon with Xtranormal's site. I made this other one on the stock market too.

Basically, what the above video is about is a comparison with the 1970s stagflation and something similar this decade.

To me it seems as far as the gold price is concerned something along those lines is already baked in and has actually been in process. Silver and gold right now are near highs and still have good fundamentals with a long-term zero interest rate policy by the FED in place and likely further debasing of the dollar. Most significantly they are both a hedge against dollar inflation. I'm going to blog more about this in a future post.
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This former NCAV cheap stock Blonder Tongue Laboratories BDR popped 70% today off of earnings.

Operating EPS was positive vs a loss prior. Sales were up driven by digital video encoders. It looks like there is about 14.7 million in current assets and about 7 million in debt. So, this big pop pushed it over NCAV. But it still might be in play. I guess we will see.

disclosure: no position
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I stumbled on this article China Has a Painful Surprise for the Global Economy about the Chinese real estate bubble recently. He looks at three other historic housing bubbles as measured by residential housing value relative to GDP. This chart by HSBC compares China with the old bubbles in Hong Kong, the U.S. and the granddaddy in Japan in the late 1980s that brought their "lost decade."



Even if we trust these numbers from China you can still see the trajectory of the market in China these past couple years has been like a rocket. Maybe the market can buy a couple years and keep going awhile longer. Maybe a crash is coming soon.

Everybody is worried about Europe but what if it is actually China that brings the big blow to the global economy. That sure would be unexpected I think. But I guess they would just be joining the crowd.
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Larry Kudlow is a well known perma-bull on CNBC. Even when it was incredibly hard to stay bullish at certain times over the past few years Kudlow kept his bullish stance. This is sort of an odd slip maybe? They were talking about gold.

Listen to what he says at the very end of the clip. He says the whole world is going bankrupt. "We're all going bankrupt...the whole fiscal world is going bankrupt". Maybe he was being facetious...I don't know.

First, we've got Jim Cramer who has given up on the stock market all together. Now Kudlow is essentially saying he understands the gold price and is *hit hitting the fan pessimistic. Amazing times. To hear this stuff from these two. Almost feels like I'm tumbling down a cosmic rabbit hole.


The Video



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