Zeev's Turnips Patch-No Politics (ZEEV)

[federal reserves]

Zeev, RUN TO THE HILLS?

Thanks for that.

Most expect a rally into expiry, but the rally looks to be over. I expect a big down month with no rally until Feb.

http://www.mrci.com/special/dspi70.asp

I think this model 1970's model applies. It was a recession that year and it bottomed in NOV/70. The market bottomed that summer and rallied before the recession ended. Lets see how it goes.

In the 70's we had rising inflation and rising unemployment. The sign of stagflation. IMHO as long as Bush is willing to extend unemployment benefits we have stagflation.

Current Fed and Fiscal Policy combined with the war leads me to believe the same result as 1970 is coming.