In Zimbabwe, inflationary government actions have made the stock market the only real store of monetary value.
Curious, because what with the creeping ban on short selling, the US stock market is also becoming artificially - for now at least - the only real thing holding value in America.
Dennis Gartman, the rather influential independent investor, notes too in the latest edition of the Gartman Letter that the US government’s bailout plan - the TARP - is “inordinately inflationary” and warns that with it, money will flee bond markets and flow into gold and equities.
Reflation is the only way out of this current mortgage market dilemma.
It is, says Gartman, the “Zimbabweisation of the US capital market”
We do not wish to be hyperbolic…but in the cold light of day, that is what we see and we shall trade accordingly henceforth.
Related links
Downgrading the USA - FT Alphaville
