“How do you feel now?” asked a reporter for a local investment magazine. “I mean, you’re a contrarian…and you were right about so much?”

Obama’s ever-growing stimulus package isn’t giving the markets a boost. Matthew Collins says the Fed’s zero-rate interest policy has created a liquidity trap, in which businesses and consumers prefer to hoard cash than make risky investments. That makes stimulating the economy very difficult, and dampens hopes of an ‘Obama rally’ in the near future.

Pessimism about the U.S. economy and financial market is so thick right now you could cut it with a knife. I’ll be the first to admit that times are tough. But Americans have seen tough times before. And we have always prevailed.

Dollar up vs yen as BOJ warns of further export woes…  Euro gains broadly; doubts about U.S. auto bailout loom… Market expects ECB rate cut; policy-makers seem divided

The government is spending like crazy. And the Fed is cranking up the printing presses to keep the money flowing. As the greenback crumbles and inflation returns, Louis Basenese says interest rates will have to rise again. He says the best way for an investor to profit from this trend is to short US Treasury bonds, which are in an unsustainable bubble of their own.

In the currency market, the dollar plummeted against the euro, marking the fifth straight day of losses. Late Tuesday, the euro was trading at $1.3891 vs. $1.3679 on Monday.

In the currency market, the dollar plummeted against the euro, the fourth straight day of losses. Late Monday, the euro was trading at $1.3679 vs. $1.3374 on Friday.

Puru Saxena sees a historical opportunity for long-term gains amid the current financial meltdown. There is currently around $3.5 trillion sitting on the sidelines, waiting to be invested in strong sectors. Puru says natural resources and industrials still have strong fundamentals, meaning they may never again be as cheap as they are today.

It’s inflation or die for global central banks, says Eric Roseman. The market is pricing in a deep recession and a stretch of deflation. But in the coming year, these desperate reflation policies will work. And when they does, inflation-hedging hard assets will soar. Eric says this makes now the perfect time to accumulate gold.

We are all being deceived by the nature of our banking system, says Matthew Collins. Fractional reserve banking is corrupt. And with the Fed at the heart of the scam, it’s no wonder things are so messed up. Matthew says it’s time we stand up and demand answers.