Fried Eggs and Spam

This weekend I made what is probably the finest breakfast: fried eggs and spam.

The eggs were, of course, from happy cage-free, organically fed chickens who have sunlit porches. I fried them with a bit of pepper in olive oil to the over-medium phase, which required 35 seconds on the flip side. To eat them, I mash them with my fork and eat each bite with a bit of spam.

The spam is fried in olive oil until each side is a bit crusty.

I also have 1/2 of a bagel toasted a bit with pumpkin butter, and some fruit.

This food is soooooooo good - I had it both days this weekend. The only improvement I'm pondering is adding a slice of Valveeta cheese on top of the eggs. Thinking ...

Markets

More Euro-beefer liquidation and some Asia selling. And some more US-beefer selling. And the public is selling its mutual funds. And we even hear of some public pensions fund being forced to sell a bit ... to fund commitments to "alternative investments".

Perhaps a bit of recapitulation of what we know now is in order.

1. Big, evil funds - aka beefers - exist and were grossly oversized and very dangerous to the world financial markets and we now know they are dangerous to the common man and the real economy, too.

2. A bit of inflation is good. It helps people have some confidence in their asset values and businesses. Trying to grind out 2%-3% core inflation is nuts.

3. Core inflation measures are correct. Trying to cut nominal inflation caused buy oil prices is stupid and destructive.

4. The monetary base should grow at 2-3% per year. The Fed was too tight until September.

5. Hedge funds are not an another asset class; most are not even "investments", but are just speculations or trading operations.

6. Commodity futures are not another asset class, either. Money in those contracts are just speculations, too.

It's rather obvious now to all, and to this writer for years, that excess money that flowed into hedge funds and commodity futures or related derivatives was a speculative bubble fueled by the rich and some pension funds.

That's enough for now.

The Federal money finally begins flowing today. I'll watch. This cure will work, but will take some time.

I suspect the continued weakness in oil is due to endless liquidation of beefers adn pension fund positions, plus the liquidation of inventories that some such speculators held to masquerade as "commercials". Traffic was heavy this weekend here as I drove to sheep herding classes for Sky.

Actions

I circled the wagons a la the Hussites on Friday to defend CVX, DVN, RIG, BHP and FCX. I was a bit long and concerned about being away from my screen during that museum trip. So I sold JPM, AAPL, GOOG and EDU and used just a portion of the cash to buy a bit more CVX, DVN, RIG and BHP. I am also holding EXM, DRYS, GNK, JOYG and MBI. I'm not expecting a lot, but figure my upside on these are rather good compared to those I sold.

My Krypto Fund spreadsheet wants me to buy emerging markets. But I'll wait a few days to let this settle more.

Politics

Big John McCain drew 4,000 people to an enthusiastic rally in Zanesville, Ohio, which is not far from my home town in Ohio. That's a lot for this sparely populated area. Comments about his reception was quite positive. So I wonder if he has more strength among the common man than the media credits for him.

Word of the Day

"Cosmogony" - noun [$10]
Cosmogony means 1. the origin of the universe; 2. a theory about this.
Sentence: What will Bunkerman use for building blocks for a cosmogony of understanding the behavior of future financial markets if beefers become extinct?