Don't Drink The KoolAid

Not Drinking The KoolAid... after weak Easter sales, JCPenney #3 U.S. department-store chain, issued downside Q1 earnings guidance.

Q1 sales at stores open at least a year will post a "high single-digit" percentage-point decline.

CEO Myron Ullman: "We expect the continuation of a difficult environment over the course of 2008."

Don't drink the KoolAid... Lehman Brothers was upgraded to Buy from Hold at Citigroup.

Citi said Lehman has ample liquidity to run its business. Sillybank or CitiGroup is almost insolvent itself.

Listening to Citibank, is like listening to Countrywide about "quality" lending, or like trusting one kid to watch the others glass of KoolAid.

Don't drink the KoolAid II... Reuters and AP stories with these headlines... Inflation moderates, benign inflation data.

Readers of these pages know our stance and challenge on this issue, which we proven numerous times with empirical data...

ANYONE claiming that stagflation is running under 10% is either a fool or a liar or both.

Our Nattering's don't bring us profit, so we won't lie to you. Unlike the FED we aren't in the business of "managing your inflation expectations".

When and IF the most insidious weapon the central banks have at their disposal is tame, moderating or benign, we will let you know.

Don't drink the KoolAid III... Is that Jon Markman at MSN? Reading his latest "Has the Fed redeemed itself?" makes one wonder.

"It will be months before we understand exactly how the good guys won; for now, we know only that

the Federal Reserve Board staged a stunning coup d'etat in Washington last week, fulfilling its goal of stability at any cost.

I wrote a column suggesting that readers sell all but their strongest stocks on any bounce to the 1,350 to 1,400 level of the S&P 500 Index.

Now here we are that level, and I am happy to rescind my blanket sell recommendation, as the worst of the threat has likely passed
."

Good guys? Won? Goal of stability? Rescind my blanket sell recommendation? The worst of the threat has likely passed?

Is this the Markman we know or a cunning replicant or pod person? Perhaps he drank the KoolAid...

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