Is the Economy Failing?

I had an interesting conversation with a good friend yesterday. He said the following to me:

“You know Christian how they cut people off at the legs last year with no warning, well we are so busy right now we don’t know what to do with all the work.”

He then continued and tried to rationalize why with all of the news his software company is so busy (until at least March 2010).

“People have been laid off, but the work is still there. They are not sending people to conferences, or to trainings that is true. But those that are working are actually overworked. So the easiest solution to alleviate the burden is to hire temporarily to do the work.”

This talk dovetailed into a talk I had with my brother who was in Russia. I once in a while talk shop with him and asked him what commodities are doing well. His last recommendations were nickel and lead, both of which did fine.

He had no recommendations and that was odd, but he did have one thing to say in that we are not entering a world where volatility will go up. People will more quickly pull back their horns, and then put the horns back. The panic that set in will remain because panic will be panic.

So this talk on how the dollar must be weak, and that the markets will go up, and all of the other things that predict the market are pure and absolute crap. At least he was of that opinion. I tend to agree with him because people are grasping straws and will grasp on these kinds of straws…

Me I personally love these markets. Makes it great to buy low, and sell high.

So is the economy failing? No not at all, just like one my 2009 predictions said, “we are living in the land of perception…”