Bernanke and company are trying to reflate the economy with almost stated objective of inflation at 2 percent and higher in order to provide some type of safety margin for a future recession. That's where they want to go.

We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time.

If financial assets no longer work for you at a rate far and above the rate of true wealth creation, then you must work longer for your money.

Bond investors want growth much like equity investors, and to the extent that too much austerity leads to recession or stagnation then credit spreads widen out - even if a country can print its own currency and write its own cheques.

When you're underperforming the index, you go home at night and cry in your beer. It's not fun, but who said this business should be fun. We're too well paid to hang our heads and say boo hoo.

You know those adages about smelling the roses and chasing butterflies? The markets are my butterflies and my roses.

If companies don't know that they can run out of money, they won't be thinking of ways not to run out of money.