Things Are Picking Up

I imagine this post will be only a few sentences; I haven't had a whole lot of time to say much in the last few weeks, as this time of the year generally involves a lot of activity and travel for us, and 2011 has been no different...

I recall speaking a few weeks back about 14,000 on the TSX feeling like kryptonite, and it now appears that we may finally be seeing the result of QE2 getting up and leaving the table. The TSX closed just shy of 13,100 on Friday, and while a short-duration reversal back to the mid-13s is probably in order, a downward trend seems established.

The only question that remains is when QE3 will be announced. The US is not, and won't be, in a position to avoid both a) increasing the debt ceiling, despite the political noise this is currently generating, and b) avoiding further rounds of "Quantitative Easing".

The governments of the G20 have made it clear that they are either unable or unwilling to act in the manner necessary to bring expenses back in line with tax receipts. What would you say if your neighbor came up to you and said that he would continue to knowingly spend a great deal more than he makes until 2014? Just kidding, the majority of Canadians would probably invite the neighbor in to view their new credit-line-financed home renos over a glass of Cristal on granite in front of a 52" television continually tuned to HGTV (except when the only show on that channel worth watching is on).

What an age we live in; I may have to refill my popcorn bowl a few more times here on the positive net worth end of the theater, but the feature presentation is growing nearer, and it's going to be a good one.