"The End is Near"

And believe it or not… I’m an optimist!

The title of this inaugural post is probably an indication that I’ve been reading too much of the Financial Armageddon blog, but I do think there are lots of reasons (some obvious, some less so) to be paranoid about financial markets these days. For example, I am on the side of those who think the debacle in subprime CDOs is going to significantly and negatively impact the broader credit markets. In that regard, I think high yield is particularly vulnerable at the moment. July 16, when Bear Stearns reports their losses, should be an interesting day.

I’m also a big fan of the Big Picture blog and similarly feel the Fed has fallen asleep at the wheel with its mind boggling laissez faire attitude toward asset prices. As long as core inflation is in tact, no worries, right? I discussed some of my opinion on the subject here and here.

I’m also a bit perplexed by the total lack of attention colony collapse disorder is receiving in the finance community. What is that going to do to the price of agricultural products next year? As long as food is not part of core inflation, no worries.

Oh, and for the record, I don’t expect a relief in oil prices any time soon either.

Phew! That is probably more than enough for an inaugural post, but you can certainly expect me to be discussing these issues and more as this adventure unfolds.

Cheers!