You’d think that after losing over half its value, the S&P 500 would be cheap. But you would be wrong, too, just by thinking that thought.

This bear market has pushed the price of many good stocks to bargain-basement levels. In my view, the stock prices of many oil and natural gas exploration and production (E&P) companies are irrationally low.

Prices for food in U.S. grocery stores jumped 6.6% last year – the biggest spike since 1980 – underscoring yet again that inflation is a much bigger problem than government officials, or most economists, say it will be.

Christmas may be over, but Obama is keeping the ’season of giving’ going on the Hill…the next bubble will be in public debt… Stock prices are more ‘normal’ than they were a year ago…how many chickens can get in a plane engine? What is bad for GM is bad for America…just when you think you have things figured out, the facts change…and more!

It’s become apparent that Israel’s land war and Russia’s childish power plays aren’t driving gas prices up. In fact, the price of crude sank 6% to $38.00 a barrel this morning.

Perhaps the biggest reason the stock market is a leading indicator of where the economy is headed is what’s called the “wealth effect.”  It goes something like this… When our portfolios are headed higher, we usually go out and spend like the dickens.  After all, with nice fat investments we feel like we have a lot more money to spend.  And, as well all know, spending drives the economy.  Result:  Stock prices and the economy get a boost.

If there’s a proverb that captures the outlook for the U.S. economy in the New Year, it’s the one that says: “It’s always darkest before the dawn.”

The masks are coming off. It’s the end of the party, now we get to see what people really look like. And it’s not a pretty sight.

“You will lose more in purchasing power (as central bank monetary inflation destroys the currency by printing enough to finance the higher stock prices) than you will ever net in gains…”

Good morning Australia. It’s another triple digit mid-day decline on the Dow. Is this the Obama Rally?