2007 Redux

"I'm sure that in 1985 plutonium is available in every corner drugstore. But in 1955 it's a little hard to come by."
--Dr Emmett Brown (Back to the Future)

Hard for me not cross fraudclosure, QE2, et al with the optimistic tape and generate a the feeling like I'm back in 2007.

During 2007 we had the initial rumblings of the mortgage crisis via subprime (remember New Century?) while Fed officials stepped up with more liquidity and assurances that problems were 'contained.' Markets chose to fixate on the 'good' news and rallied for much of 2007. The Dow touched an all time high in late 2007.

Then the House of Cards collapsed.

Setup feeling similar now. Big probs w/ the banks and real estate, the Fed's liquidity howitzer, and big time fund managers warning that people should not fight the Fed. And...markets have chosen to party.

Interestingly, John Mauldin and John Hussman both waxed nostalgically about 2007 in their most recent commentary. Humbling to be vibing in parallel w/ these two...

Dr J's commentary continues to creep up my reading list. Truly great stuff from where I sit. I read w/ interest that he's getting pretty defensive here--even 'feeding the ducks' w.r.t. metals positions...

While the 2007 experience tells us that this party can certainly last awhile, I'm increasingly prone to look for short side opportunities.

position in SH, gold, silver