• Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.
  • Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.

Ben Bernanke Has Become The Pied Piper Of Momoism

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Wed, 03/17/2010 - 12:24 | 268368 TumblingDice
TumblingDice's picture

Strong upside volume would be the indication that the cartel has found the greater fools they were looking for. Having said that, it is hard to imagine this happenning any time soon.

Wed, 03/17/2010 - 12:40 | 268390 SheepDog-One
SheepDog-One's picture

The only time any volume shows up is on selling, so their only answer to passing off the pump to retail is desperately search for buyers ever higher? Didnt have any volume buying at DOW 10,000, lets try DOW 11,000, see if any suckers can be found there! GO momo-Ben, GO!

Wed, 03/17/2010 - 23:19 | 268959 Bthewee
Bthewee's picture

So sorry for Jackin the post - my apologies.

However...

 

I/We have not Seen MARLA - post-comment-edit-or do anything in AT least 2 months!!!

WHAT..... ZH has become of Marla?? and the Great job she has done for this site??

Wed, 03/17/2010 - 23:18 | 268958 Bthewee
Bthewee's picture

So sorry for Jackin the post - my apologies.

However...

 

I/We have not Seen MARLA - post-comment-edit-or do anything in AT least 2 months!!!

WHAT..... ZH has become of Marla?? and the Great job she has done for this site??

Wed, 03/17/2010 - 12:24 | 268369 buzzsaw99
buzzsaw99's picture

The pension funds never sell, they only buy, buy, buy. The perfect bagholders.

Wed, 03/17/2010 - 12:44 | 268391 SheepDog-One
SheepDog-One's picture

And we know the endgame of printing and pumping and stuffing the pensions full of things like 'BIDU', one of the biggest collusive scams ever, thats the govt seizing 401K's, pensions, that story ran the other day in the Wall St Urinal.

Fun times indeed!

Wed, 03/17/2010 - 13:55 | 268453 buzzsaw99
buzzsaw99's picture

Better to rip off the sheeple than the chinese, the sheeple don't have nukes.

Wed, 03/17/2010 - 12:29 | 268376 AnonymousMonetarist
AnonymousMonetarist's picture

Mother should I trust the government?
Hush now baby, baby, dont you cry.
Mother's gonna make all your nightmares come true.'
-Pink Floyd

'A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship. The average age of the world’s greatest civilizations from the beginning of history, has been about 200 years.'
-Alexander Tyler

'The nation is of age and it can do what it pleases; it can spurn the traditions of the past; it can repudiate the principles upon which the nation rests; it can employ force instead of reason; it can substitute might for right; it can conquer weaker people; it can exploit their lands, appropriate their property and kill their people; but it cannot repeal the moral law or escape the punishment decreed for the violation of human rights.'
-William Jennings Bryan

'We all want to believe that the key to making an impact on someone lies with the inherent quality of the ideas we present. The size of the crowd in the theater has a big effect on how good the movie seems.'
-Malcolm Gladwell

'Some people without brains do an awful lot of talking.' -The Scarecrow

Imagine Dorothy as the beguiled American public, the scarecrow as representing indebted consumers, the tin man symbolizing industrial workers, the cowardly lion as the Masters of the Universe and the Wizard as the Oracle at Eccles.

And the yellow brick road as the debasement of the sovereign scrip where Dorothy can return home to prosperity by following this path.

A rhyming version of what many folks think was a hidden message within the Wizard of Oz.

Back then, the United States was on the gold standard. When there was malinvestment causing overproduction, prices fell.

William Jennings Bryan, represented by Baum as the cowardly lion, argued for the right to coin money and issue money as a function of government. He contrasted his platform of legislating to make the masses prosperous whereby their prosperity would find its way up and through every class that rested upon them with his opponents' platform that Bryan derisively opined held fast that if you just legislate to make the well-to-do prosperous, their prosperity would leak through on those below. His opponents argued for sound money.

Today's cowardly lions ,or Nancy Capitalists, are the Masters of the Universe that have literally been given the right to coin money (saved by zero, money for nothing) and issue money (FDIC guaranteed debt, the chits are free.)

Today's Wizard of Oz, the Oracle at Eccles, argues for sound money. Hiding behind the 'I Can't Beleive it is not Capitalism' curtain, he too has been shown as a fraud.

Today's malinvestment cannot and will not result in prices falling, says the Wizard.

Pay no attention to the marks behind the curtain. The operating levers secretly lubricated by the debasement of the scrip cannot be disturbed, discussed or disclosed lest the Emerald City be laid to waste.

Bryan said 'You shall not crucify mankind upon a cross of gold.'

Sorry Bill, the cross has been sold, leveraged, rehypothecated, and is being leveraged again. Sound money is now found money. For the masses? The Dark Side of the Rainbow.

Oh, and in L. Frank Baum's original novels, Aunt Em and Uncle Henry find a refuge in Oz when they are unable to pay their mortgage on the new house that was built after the old one was carried away by the tornado.

'Nuff said.

Wed, 03/17/2010 - 12:29 | 268377 Bearish Spirits
Bearish Spirits's picture

The local Fox here in Chicago has a "business segment" every morning.  The anchors were talking with someone from Fox Business about how the volume has been extremely low lately, even mentioning that it was indicative of a lack of confirmation for this melt-up over the past month.  Considering the generally bullish slant of the vast majority of their business segments, I was shocked...so are they trying to pull more money in, or is the lack of volume so obvious it can't be ignored?

All this as school district layoffs are being announced all over the metro area...heck of a recovery.

 

Wed, 03/17/2010 - 12:39 | 268388 Rainman
Rainman's picture

......and in Cali, 23,000 school teachers got a pink slip notice on the March 15 deadline for notification.

Wed, 03/17/2010 - 13:22 | 268428 deadhead
deadhead's picture

for me, one of the critical items that we are crossing the rubicon into a further depression is state and local layoffs, particularly teachers.  this is not something to be taken lightly in terms of the signs of the times.  

Wed, 03/17/2010 - 21:31 | 268882 mtomato2
mtomato2's picture

O.K.  Get this:

Remember how we all figured that "maybe someday, if we needed, we could 'fall back' on teaching"

So I had a roofing company.  And we did pretty well from about '95 through '07.  Then (this is a secret) the bottom dropped out of the building industry!  Don't tell anyone.

So I went back and got certified to teach High School math through Senior Calculus.  I figure: any warm, carbon-based life-form should be able to get a job teaching CALCULUS!

No soap.  They're not even hiring math teachers.  Not even astute middle-aged man ones. 

This MUST be bad.

 

 

Thu, 03/18/2010 - 00:44 | 269021 faustian bargain
faustian bargain's picture

It's the third year in a row the state schools budget has been cut. Local districts are going to be leaning on the taxpayers.

Wed, 03/17/2010 - 13:30 | 268435 1fortheroad
1fortheroad's picture

I was wondering why the market gapped up this morning.

Wed, 03/17/2010 - 16:12 | 268551 Ripped Chunk
Ripped Chunk's picture

Only the beginning.

As states and localities increase taxes on everything that moves, burns is wearable or edible while simultaneously laying off workers, the death spiral becomes unstoppable.

Wed, 03/17/2010 - 13:15 | 268418 CB
CB's picture

and the zombie citizens yet again do not respond because there's still one more beer in the fridge and a twinkie in the pantry.

Wed, 03/17/2010 - 14:21 | 268486 Headbanger
Headbanger's picture

And the most important thing of all: There's still gas in the tank.

Thu, 03/18/2010 - 01:35 | 269045 merehuman
merehuman's picture

and cable.

Thu, 03/18/2010 - 07:34 | 269113 Reflexivity
Reflexivity's picture

 

+1 Agreed.

Wed, 03/17/2010 - 12:35 | 268381 ZakuKommander
ZakuKommander's picture

The raccoon sits poised just outside the trap [don't worry, it's a Hav-a-Heart trap; no raccoons will be killed in the making of this post], eyeing the juicy apple inside.  Waiting, waiting.  It knows it's a trap, but the apple gets riper, the raccoon gets hungrier, and it finally decides . . . "well, the trap hasn't sprung yet, and I am nimble, so let's have a go!"

Those algos are so lulling, so comforting . . . 

 

Wed, 03/17/2010 - 13:41 | 268442 crosey
crosey's picture

Great visual analogy.

Wed, 03/17/2010 - 17:09 | 268636 RockyRacoon
RockyRacoon's picture

I ain't fallin' for no apple!  No way, no how. 

Got gold.

Wed, 03/17/2010 - 21:33 | 268884 mtomato2
mtomato2's picture

I'm glad you said that part about the Hav-a-Hart trap.  The person who was offended by the use of the term "Dead Cat Bounce" might have come for you.

Thu, 03/18/2010 - 00:47 | 269022 faustian bargain
faustian bargain's picture

I tell ya, you can't swing a dead cat without hitting a trap for some unsuspecting raccoon.

Wed, 03/17/2010 - 12:39 | 268389 economessed
economessed's picture

Everyone has their favorite historical analogy to compare this market to, and I continually draw parallels between this stock market and the Beanie Baby craze that played-out during the early days of eBay -- around 1998 give or take a year. 

For some reason, people convinced one another that a mass-produced $3 plush toy was intrinsically valuable, and bid prices north of $400. 

Human behavior is highly maleable, and stupidity is a fuel source that powers the cyclic engine of boom and bust.

Wed, 03/17/2010 - 15:39 | 268556 Ripped Chunk
Ripped Chunk's picture

I remember that fiasco.

Similar situation when I saw the PS III "rights" getting bid up over $2k on ebay.

What the fuck were they thinking?????

 

Wed, 03/17/2010 - 12:45 | 268393 crzyhun
crzyhun's picture

Everyopne is 'in' but like Jason B is looking for three exits at the same time

Second, like a charmed snake this market is rising on illusion. Just who is the charmer. Any guesses? The first two don't count...the administration through its lap dogs is the winner. Whether Ben, GS, FRBKNY et. al.

Wed, 03/17/2010 - 12:46 | 268394 john_connor
john_connor's picture

This is a time to just look out for your family and remove all capital from the system.  The NY banking cartel will destroy themselves eventually.

Wed, 03/17/2010 - 12:58 | 268400 SheepDog-One
SheepDog-One's picture

Agreed, john conner. Im not near nimble enough to out-guess Jason B. on his multiple exit strategies all day long. I'll take 100% safety and just clear the blast zone. Let the zombies eat each others damn brains, Im sick of this.

Wed, 03/17/2010 - 15:19 | 268537 Whizbang
Whizbang's picture

Or you could just purchase options as a hedge. Thats the difference between the average retail investor and the pro. Hedges...

Wed, 03/17/2010 - 16:47 | 268612 Celsius
Celsius's picture

Hedging attempts to hide risky investments. Systemic events can prohibit counter parties from meeting their obligations. AIG CDS's are a perfect example, because without the government bailout the investor hedges would have failed.

Fri, 04/09/2010 - 16:41 | 293606 orangedrinkandchips
orangedrinkandchips's picture

AND HOW brother! just so sick and tired of this crap, enough to make you really sick.

Today I did selling, even the ones I think are solid....hell no. Fuck no they are not.

Who is inflating this market?

 

God, sometimes like lately I think I am so alone, fucked in the head and wrong, wrong, wrong....I cannot shake the shit that T-bone goes over.

I cant change horses in mid-stream. Once I do, it's all over.

Mutual funds? nah...I think this is a good old fashioned short covering...

 

Wed, 03/17/2010 - 12:54 | 268398 SheepDog-One
SheepDog-One's picture

'April 15 may well be the day the Treasury declares the Renmimbi 'manipulated'"

Pretty bold statement coming from the kings of manipulation themselves! Like pirate crews accusing each other of stealing. Arrrrrgh, mateys.

Great article, Tyler.

Wed, 03/17/2010 - 14:07 | 268468 merehuman
merehuman's picture

Pirate economy limping along on a swaying deck in turbulent seas

Wed, 03/17/2010 - 12:59 | 268401 Headbanger
Headbanger's picture

As long as ol Wiley Coyote doesn't look down when he runs off the cliff... That's the market we've got now.

Wed, 03/17/2010 - 13:01 | 268404 Prof Gulliver
Prof Gulliver's picture

The market is also digesting Rosie and spitting him out. He may be a great philosopher, but as a stock analyst and predictor he is awful. This game will go on until eternity. Madoff would still be going strong if only he could print money. Let's face it, folks. All of us expecting a crash based on fundamentals are never going to see it. WE are the sheeple.

Wed, 03/17/2010 - 13:18 | 268423 Missing_Link
Missing_Link's picture

Good point.

Those who believe fundamentals still matter really need to answer the question:

What are the mechanisms that cause the market to correct to the fundamentals?

And why are those mechanisms no longer working as they should?

If we believe the market must eventually revert to the fundamentals, what are the mechanisms that could cause that to happen?

Or is the belief based on "efficient market" theories that may once have been valid but have been invalidated since the 1990s by momentum-driven quantitative algo trading?

Wed, 03/17/2010 - 14:13 | 268479 merehuman
merehuman's picture

Since we are no longer a country of Laws

anything is possible. Most certainly a higher crime rate.

Until Law is restored there is no market, only a sham of collusion.

 

Wed, 03/17/2010 - 16:27 | 268593 GS is short Gold
GS is short Gold's picture

technical analysis no longer works either. The only thing that works is being on the inside of the good ole boys network. 

Thu, 03/18/2010 - 01:39 | 269048 merehuman
merehuman's picture

or on the outside, planting your garden on this sunny day and ignoring the whole show while your PMs are safely stored.

Wed, 03/17/2010 - 23:06 | 268945 Tethys
Tethys's picture

Well, I would say that the primary mechanism for the market to correct on fundamentals would be for more people to become aware of what is going on.

And the primary mechanism for making people aware of what is going on is the mainstream media.

And the mainstream media is controlled by... oh my.

 

Thu, 03/18/2010 - 00:50 | 269024 faustian bargain
faustian bargain's picture

What we need to do is convince N.N. Taleb to be a contestant on Survivor...

Thu, 03/18/2010 - 07:38 | 269116 Reflexivity
Reflexivity's picture

Why?... So, his messages and mutterings get picked up by Joe 6-pack and Jane-the-desparate-housewife who are addicted to prime time TV (since they never end up in the bookstore, let alone the philosophy of finance section)?

 

Wed, 03/17/2010 - 13:41 | 268440 economessed
economessed's picture

This is the theory of univariate valuation -- establishing a value using the object itself as its own measure of intrinsic value.

But I disagree with that assumption -- valuations are set in context of something else.  In the short run, we can ignore external comparators when we decide to buy a stock (it was up today, I think it will go up again tomorrow).  In the longer-term, facts matter.  Dot com, housing, tulip bulbs, whatever. 

The stock market and fundamentals parted ways at some point over the past 14 months, never to have seen one another since.  They'll meet up again soon, and one of them is going to be profoundly mis-aligned with the other.

Wed, 03/17/2010 - 18:39 | 268746 deadhead
deadhead's picture

very well said.

Wed, 03/17/2010 - 14:06 | 268470 crosey
crosey's picture

Never is a very long time, and assumes that control can be maintained.  That's the myth.  Control requires that all global players agree, all the time.  Now that is the only "never" that has ever happened.

But it is very true that the market can remain irrational far longer than we can remain liquid.

Wed, 03/17/2010 - 15:01 | 268515 Prof Gulliver
Prof Gulliver's picture

Never will be interrupted by short-lived episodes such as we had in 2008-early 2009. Then we will resume the rationally irrational flight to eternity. And next time it will be more short-lived. They know how to play the game now.

From "Never Give a Sucker an Even Break":

Card player to WC Fields: "Is this a game of chance?"

Fields: "Not the way I play it, no."

Wed, 03/17/2010 - 15:06 | 268518 masterinchancery
masterinchancery's picture

It can sure go on for a long time with enough help from high places; a great example being John Law and the Mississippi Scheme in the France of 1715 to 1720. Ultimately, however, the result was catastrophic bankruptcy that permanently damaged the French economy, with promoters like John Law fleeing for their lives.

Wed, 03/17/2010 - 13:01 | 268405 1fortheroad
1fortheroad's picture

Exactly and they can keep this trap going for months, maybe years,

its just a constant spin. The trap is called greed.

Thu, 03/18/2010 - 01:43 | 269049 merehuman
merehuman's picture

Its  also been said that the "market" was bigger than the PPT. So now which one is true?

Either they can do this forever or

The "market" is bigger.

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