Chart a Day #14 Direxian Tech 3x Bull Bubble (TYH)

I'm gonna call this "tech bubble 3.0," which follows 1.0 in 2000 and 2.0 in 2007. As I pointed out a few days ago, valuations are at the highest levels they have ever been in history. We have a fed fueled bubble in the entire stock market but especially in tech stocks! I think this Direxian 3x really argues this point well since everyone uses insane leverage these days. I tried to short the TYH today but my broker could not locate shares. I started shorting FAS instead and sold my SPY calls. There's more to be said about this but I have to run.

Disclosure: I am short AAPL

Economic Stress Relief

Squishy banker dolls are now available for economic stress relief at SqueezeTheBanker.com. The advertisers should have some fun with this one I'm thinking. The slogan could be "turn the credit crunch on the creditors" or "only $8.99, buy one before your dollars become worthless" or "if you pay taxes, Paulson put the squeeze on you, now put the squeeze on Paulson." Ah, I love the internet.

Housing Quotes

“We've never had a decline in housing prices on a nationwide basis. What I think is more likely is that house prices will slow, maybe stabilise.”

Ben Bernanke (2005), then economic adviser to the president, was asked about the possibility of a decline in house prices on CNBC. Source.

"But let me be clear, despite strong economic fundamentals, the housing decline is still unfolding and I view it as the most significant current risk to our economy. The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth."

Henry Paulson (2007), Treasury Secretary, in remarks prepared for delivery at Georgetown University's law school. Source.

"It could conceivably make [conditions affecting investor psychology] somewhat adverse because if you believe some form of artificial non-market force is propping up the market you don't believe the market price has exhausted itself."

Alan Greenspan (2007), Former Federal Reserve Chairman, comments on the proposed "Super SIV" - a $75 billion Master Liquidity Enhancement Conduit designed to take on the assets of troubled structured investment vehicles (SIV). Source.