Bernanke Tells Nation This Sunday: More QE Coming

For those wondering why the market leaked higher in the last hour, it is because someone got an advance copy of the transcript (or advance notice) that in this Sunday's latest attempt at faux transparency on 60 Minutes, the bearded mutant-cum-supreme genocidal overlord says that more QE is coming. From Reuters: "The euro rose to a
session peak against the dollar in late afternoon New York trade on
Friday after a report on the CBS website that Federal Reserve Chairman
Ben Bernanke did not rule out buying more than $600 billion of bonds in
further quantitative easing." It also explains why the euro is back to 1.34, and is right in line with our expectations that the EURUSD is only weak so long as the market realizes that much, much more QE is coming. How much? See the chart below for our ongoing expectation of what the Fed's balance sheet will look like soon. And yes, the $7 dollar jump in gold late in the day may be multiplied 10-20x on Monday after the world realizes that the US economy is as fucked as always.

Perhaps it is time for Goldman to revise its 48-hour old "alles gut" call?

This is what we projected a few months back. Looks like we may accidentally be spot on as usual.

Of course, if that happens, look for every other bank to go apeshit in tandem (and that certainly includes the BoJ and the ECB which will join the fray):

And lastly, here are the Senators who voted Yay or Nay on Bernanke's most recent renomination. Who would have thought only 30 Senators gave a rat's ass about what happens to this country's middle class.

State	Senator	Party	Jan. 28 Ben S. Bernanke Fed Chair 70–30
Hawaii	Akaka, DanielDaniel Akaka	D	Yea
Tennessee	Alexander, LamarLamar Alexander	R	Yea
Wyoming	Barrasso, JohnJohn Barrasso	R	Yea
Montana	Baucus, MaxMax Baucus	D	Yea
Indiana	Bayh, EvanEvan Bayh	D	Yea
Alaska	Begich, MarkMark Begich	D	Nay
Colorado	Bennet, MichaelMichael Bennet	D	Yea
Utah	Bennett, RobertRobert Bennett	R	Yea
New Mexico	Bingaman, JeffJeff Bingaman	D	Yea
Missouri	Bond, KitKit Bond	R	Yea
California	Boxer, BarbaraBarbara Boxer	D	Nay
Ohio	Brown, SherrodSherrod Brown	D	Yea
Kansas	Brownback, SamSam Brownback	R	Nay
Kentucky	Bunning, JimJim Bunning	R	Nay
North Carolina	Burr, RichardRichard Burr	R	Yea
Illinois	Burris, RolandRoland Burris	D	Yea
West Virginia	Byrd, RobertRobert Byrd	D	Yea
Washington	Cantwell, MariaMaria Cantwell	D	Nay
Maryland	Cardin, BenBen Cardin	D	Yea
Delaware	Carper, TomTom Carper	D	Yea
Pennsylvania	Casey, BobBob Casey	D	Yea
Georgia	Chambliss, SaxbySaxby Chambliss	R	Yea
Oklahoma	Coburn, TomTom Coburn	R	Yea
Mississippi	Cochran, ThadThad Cochran	R	Yea
Maine	Collins, SusanSusan Collins	R	Yea
North Dakota	Conrad, KentKent Conrad	D	Yea
Tennessee	Corker, BobBob Corker	R	Yea
Texas	Cornyn, JohnJohn Cornyn	R	Nay
Idaho	Crapo, MikeMike Crapo	R	Nay
South Carolina	DeMint, JimJim DeMint	R	Nay
Connecticut	Dodd, ChrisChris Dodd	D	Yea
North Dakota	Dorgan, ByronByron Dorgan	D	Nay
Illinois	Durbin, DickDick Durbin	D	Yea
Nevada	Ensign, JohnJohn Ensign	R	Nay
Wyoming	Enzi, MikeMike Enzi	R	Yea
Wisconsin	Feingold, RussRuss Feingold	D	Nay
California	Feinstein, DianneDianne Feinstein	D	Yea
Minnesota	Franken, AlAl Franken	D	Nay
New York	Gillibrand, KristenKristen Gillibrand	D	Yea
South Carolina	Graham, LindseyLindsey Graham	R	Yea
Iowa	Grassley, ChuckChuck Grassley	R	Nay
New Hampshire	Gregg, JuddJudd Gregg	R	Yea
North Carolina	Hagan, KayKay Hagan	D	Yea
Iowa	Harkin, TomTom Harkin	D	Nay
Utah	Hatch, OrrinOrrin Hatch	R	Yea
Texas	Hutchison, Kay BaileyKay Bailey Hutchison	R	Nay
Oklahoma	Inhofe, JimJim Inhofe	R	Nay
Hawaii	Inouye, DanielDaniel Inouye	D	Yea
Georgia	Isakson, JohnnyJohnny Isakson	R	Yea
Nebraska	Johanns, MikeMike Johanns	R	Yea
South Dakota	Johnson, TimTim Johnson	D	Yea
Delaware	Kaufman, TedTed Kaufman	D	Nay
Massachusetts	Kerry, JohnJohn Kerry	D	Yea
Massachusetts	Kirk, PaulPaul Kirk	D	Yea
Minnesota	Klobuchar, AmyAmy Klobuchar	D	Yea
Wisconsin	Kohl, HerbHerb Kohl	D	Yea
Arizona	Kyl, JonJon Kyl	R	Yea
Louisiana	Landrieu, MaryMary Landrieu	D	Yea
New Jersey	Lautenberg, FrankFrank Lautenberg	D	Yea
Vermont	Leahy, PatrickPatrick Leahy	D	Yea
Florida	LeMieux, GeorgeGeorge LeMieux	R	Nay
Michigan	Levin, CarlCarl Levin	D	Yea
Connecticut	Lieberman, JoeJoe Lieberman	Ind. D	Yea
Arkansas	Lincoln, BlancheBlanche Lincoln	D	Yea
Indiana	Lugar, RichardRichard Lugar	R	Yea
Arizona	McCain, JohnJohn McCain	R	Nay
Missouri	McCaskill, ClaireClaire McCaskill	D	Yea
Kentucky	McConnell, MitchMitch McConnell	R	Yea
New Jersey	Menendez, BobBob Menendez	D	Yea
Oregon	Merkley, JeffJeff Merkley	D	Nay
Maryland	Mikulski, BarbaraBarbara Mikulski	D	Yea
Alaska	Murkowski, LisaLisa Murkowski	R	Yea
Washington	Murray, PattyPatty Murray	D	Yea
Florida	Nelson, BillBill Nelson	D	Yea
Nebraska	Nelson, BenBen Nelson	D	Yea
Arkansas	Pryor, MarkMark Pryor	D	Yea
Rhode Island	Reed, JackJack Reed	D	Yea
Nevada	Reid, HarryHarry Reid	D	Yea
Idaho	Risch, JimJim Risch	R	Nay
Kansas	Roberts, PatPat Roberts	R	Nay
West Virginia	Rockefeller, JayJay Rockefeller	D	Yea
Vermont	Sanders, BernieBernie Sanders	Ind.	Nay
New York	Schumer, ChuckChuck Schumer	D	Yea
Alabama	Sessions, JeffJeff Sessions	R	Nay
New Hampshire	Shaheen, JeanneJeanne Shaheen	D	Yea
Alabama	Shelby, RichardRichard Shelby	R	Nay
Maine	Snowe, OlympiaOlympia Snowe	R	Yea
Pennsylvania	Specter, ArlenArlen Specter	D	Nay
Michigan	Stabenow, DebbieDebbie Stabenow	D	Yea
Montana	Tester, JonJon Tester	D	Yea
South Dakota	Thune, JohnJohn Thune	R	Nay
Colorado	Udall, MarkMark Udall	D	Yea
New Mexico	Udall, TomTom Udall	D	Yea
Louisiana	Vitter, DavidDavid Vitter	R	Nay
Ohio	Voinovich, GeorgeGeorge Voinovich	R	Yea
Virginia	Warner, MarkMark Warner	D	Yea
Virginia	Webb, JimJim Webb	D	Yea
Rhode Island	Whitehouse, SheldonSheldon Whitehouse	D	Nay
Mississippi	Wicker, RogerRoger Wicker	R	Nay
Oregon	Wyden, RonRon Wyden	D	Yea
	vote by party	D R Ind.	47–11 22–18 1–1

Comments

[Aknownymouse]

Not so fast Benny.  Ben meet Republicans in a few weeks.

[Zon]

...who will do absolutely nothing to stop Ben bernanke(save for one congressman from texas, who will be muzzled by his surperiors)

[flacon]

If the total collapse happens in an instant, BEFORE the Republicans take over.... then they will shunt to the BCP Backup Government that Cheney was talking about. The one that lives in caves and deep underground bunkers. 

[StychoKiller]

You mean the "Orcs?"

[redpill]

Did you forget who appointed him?

[JLee2027]

 We weren't printing money or bailing out foreign banks then.  And who re-appointed him?

[redpill]

He gave his "helicopter" speech in 2002.

[infotechsailor]

Still waiting on the ZH story about the leaks that new speaker BonerZ may try to block Ron Paul from chairing monetary policy subcommittee.

[DoChenRollingBearing]

A friend of mine mentioned that to me at lunch, yet I have not been able to find that anywhere.  Do you have a link?  Anyone?

Boehner does that, and then the Bearing will be proven wrong.  It will then be clear that not even the Rs are listening.  Not even a bit.

Put Ron Paul in charge of scrutinizing the Fed!  He is the right man at the right time.

[Shameful]

The reds are not going to do anything positive.  Again I was a child, but 1994 was not that long ago.  Have they done anything good in your lifetime?  It's just a relay race of destruction.  The two looters pass the baton back and forth.  Hell the system is actually best managed so long as each party acts worse then the last time they were in power. They get loot, and it shocks the people into going to the other party which in turn will be even worse and so on.

Surely you must have heard the talk among the tea party elect about how hard it will be to cut.  I quite frankly will be stunned by any real cuts.  What you can expect is them to advertise cuts, which will be cuts in the rate of increase of spending, but the rate of spending will continue to climb.

[percolator]

DoChen, here's 2 links on Paul getting the shaft by the establishment:

http://www.infowars.com/republicans-move-to-block-ron-paul-from-monetary...

http://market-ticker.org/akcs-www?post=173938

[Spalding_Smailes]

http://www.youtube.com/watch?v=idfdOpL1BQU

[percolator]

thanks for the link!

[Bring the Gold]

LMAO!

Seriously? You guys think the R's are any less in the pockets of the same puppetmasters ad the D's? Were you guys in a collective coma since 2001? TARP, Paulson, Bernanke all in 2008? 4 years of total Republican domination 2002-06 and they not only didn't stop the freight train but added rocket boosters on the side and you guys trust these guys?

Seriously are you fucking kidding me?!?!?! These are the guys who have absolutely shredded our way of life created DHS, TSA, the Patriot Act, Military Commissions, Annihilation of at least half the bill of rights and you think they are on your team?!?!?

Holy fucking partisan brain death batman!

[Paul E. Math]

Nice rant.  Respect.

The real enemy is partisanship itself.

[Aknownymouse]

This was a speech for the square heads like him.  Now that his theory became policy and the tea baggers saw it live - he will have an uphill battle with the new house and with the upcoming elections.  Benny is the new political whipping boy.  He just does not know it yet.

[ZakuKommander]

Who reappointed him?  Dems . . . and Republicans, who could have but didn't join many Dems, and filibuster.  Repubs are, basically and traditionally, all for Wall Street and the rich.  Ron Paul is treated as a pariah.

[Aknownymouse]

different times - different politics.  In addition he just proved that his QE crap DID NOT do anything to help the UE numbers like he claimed.  I truely think that the trend is now against him politically.  Every Tom Dick and Harry will show boat on how Benny helped the Europeans with billions and failed to help americans.  He is very weak and he does not know it yet.  Soon he will be more worried about saving his own ass. That QE will be history.

[tmosley]

Only one Republican matters, and he probably doesn't matter enough, as much as I love the guy.

Ron Paul.

[EvlTheCat]

:) End the Fed!

Damn Libertarians in incognito!!

[DoChenRollingBearing]

I have been stamping "END THE FED" with my new Custom Stamper ($35 at Office Depot) on FRNs.

I hope that doesn't bother anyone.  Be looking for the decorated FRNs soon!

[flacon]

I used to stamp "666" on them. Same diff. 

[RockyRacoon]

vistaprint.com

Quick and cheap!   Got mine.

[Jeff Lebowski]

I would suggest you add another to the list.  Paul Ryan.

[tmosley]

I say Ron Paul because he will be chairing the monetary policy subcommittee.

[DoChenRollingBearing]

I hope you are right tmosley.  Apparently there is a rumor that Boehner may block him, but I have been able to find anything yet on the 'Net.

[percolator]

That might be wishful thinking tmosley:

http://market-ticker.org/akcs-www?post=173938

http://www.infowars.com/republicans-move-to-block-ron-paul-from-monetary...

[tmosley]

Yeah, I saw that too.  If they block him here, the Republican party will be finished.

[TheSettler]

Don't count on it.

http://www.infowars.com/republicans-move-to-block-ron-paul-from-monetary...

[ZakuKommander]

Paul Ryan?  LOL.  Key man in the bank bailout.  

[razorthin]

Sadly, my (avatar) vindication will come with the destruction of the republic.

[Shameful]

Yeah and the Republicans will ask Zimbabwe Ben for more dollars to fuel the global murder machine.  Nothing will change.  Has voting fixed anything for the past few decades?

[patience...]

"The bearded mutant"  Gotta love the one-liners on ZH.

LOL

[Threeggg]

"the bearded mutant-cum-supreme genocidal overlord"

Damn TD !!!!!!!!!

Nice !

[CashCowEquity]

Thankful I own PM's , physically.

[Herd Redirectio...]

"Let's get physical"  is about to make a comeback, in a big way!

Its the only thing you can do to show disapproval of the current crooked system.  Take your assets out of the banking system, and put it into precious metals.  Or select mining stocks.  Physical is insurance in case there is no law and order, but assuming it is just currency crisis that awaits us, mining stocks will do well. 

Of course, everything on Zimbabwe's stock market is up  a few thousand % this year, so that should be kept in mind, as long as Zimbabwe Ben is in charge.

http://psychonews.site90.net

PsychoNews: Exposing the Oligarchy, one Psycho at a time.

[Duuude]

http://www.youtube.com/watch?v=5hgsw5Hg0Ag

Fuckfuckfuck

[Dagny Taggart]

Dude, Il Duce agrees. http://www.youtube.com/watch?v=Q41eoZXDb64

[Kaiser Sousa]

"And yes, the $7 dollar jump in gold late in the day may be multiplied 10-20x on Monday after the world realizes that the US economy is as fucked as always."

Tyler such language...we gone have to wash yo mouth out with soap son...now let me get back to counting this shiny stuff...."1001, 1011....."

[knukles]

"after the world realizes that the US economy is as fucked as always."

A little subdued, perhaps? Art of the understatement?  

[Cojones]

So next week the FED will own 7.5% of the US deficit. That calls for a party.

[RockyRacoon]

Load 'em up to the gills -- and then cut 'em loose.

Fed?  What Fed?  We don't know no "Fed".

They have gold certificates, but the Treasury has the metal.

[trav7777]

naw, the FRBNY has an assload in their basement.

The gold in 33 was surrendered to the Fed, not the treasury

[RockyRacoon]

Last time I checked the Fed didn't have any armed troops to call on.

[cocoablini]

Oh, so QE2 was more than a trillion after all- just marketed in 600 billion dollar parcels that we can gag on but not choke on.
He is going to print, print,print,print. Madness being defined by doing the same useless activity over again expecting a different result.
Except the Fed, as usual, changes is to madness is doing the same thing over and o er again, burning bridges along the way

[FreedomGuy]

Bernanke is trapped by his own theory and arrogance. He will run his liquidity theory to the very end, until it breaks...everything. Fifty years from now another economist will theorize the wrong thing and do something else stupid with currencies. This is the problem when you give a few people huge power and control. They don't just break one company. The break everything and all of us.

[tony bonn]

jim willie predicted qe-n to a t. the fed is in a death dance with qe infinity and MUST MUST MUST remain in it to offload all of the crap it bought when hank paulson - asshole extraordinaire - threatened martial law and nationalization in order to save goddamn sachs (i meant goldman sucks....)....

all of those cds have an incentive to ignite...this is how banksters make their money in a debt larded world...the irs will incinerate the financial world....

my guess is that the fed's balance sheet is worth 30-70% of what it claims to be....if bernankrupt had to liquidate all of that garbage in short order, the value would be closer to the lower end....i also would guess that the fed has a corner on the mortgage fraud securities market...if i were ron paul i would start investigating the quality of the fed's portfolio and prosecute bernankrupt for hate crimes....i know i can't stand him...

[Violetta (not verified)]

Help!  I still don't understand why the stock market goes up when the QE is announced.  As far as I comprehend so far, the Fed credits itself with money, then buys the debt from the government?  But why does that make the stock market go up?

[Ragnarok]

PDs buy debt from gov't, Fed buys debt from PDs, PDs lever up profit and invest in stock market.

[Violetta (not verified)]

oooooohhh. now i get it.  this is why they use the pds, not just buy through treasury direct, like normal people.  if there weren't any pds, the stock market wouldn't go up.

hahahahahahahahahahaha, oh but it really is sad, people really don't understand this.

[SwingForce]

I don't know.

[rubearish10]

Mainly and quite simply "put", it's a re-mark of prices versus an extremely weak US Dollar. More QEII means more ability to take risks with market support through a "perpetual" bid for US risk assets which includes all commodities, all US Bonds and of course the all important S&P 500.

[Herd Redirectio...]

The banks can create money out of nothing.  So the Treasury (gov't) issues new debt (increases the national debt), the banks create new money with which to buy this debt.

Then the Fed creates money out of nothing, and buys the Treasury debt from the banks (primary dealers).  Voila, the banks can 'earn' the spread, which they then lever up and use to make loans, or put into the equities, bond and commodities market.

http://psychonews.site90.net

PsychoNews:  When Psychos call themself sane, the sane must call out the Psychos.

[Cult_of_Reason]

Violetta,

Watch this video (the Fed is buying from PDs -- free money to PDs like GS to manipulate the stock market)

Quantitative Easing Explained
http://www.youtube.com/watch?v=PTUY16CkS-k

[EvlTheCat]

Just buy the fucking dip!!  Don't ask questions to educate yourself.  Just buy the fucking dip, you idiot!

[Violetta (not verified)]

Thanks, guys.  So all the Primary Dealers are banks?  How do they get such vast sums of money to buy all this Treasury debt to begin with?  I thought we just bailed the banks out.  Are they using money they made since the bailouts to buy the Treasury debt and then sellign it to the Fed at a profit?  This is why it's called "frontrunning"?  How is this legal?  Is there a law which says the Fed has to buy the debt from the PDs or would they be able to buy it straight from the Treasury if they wanted to?

Evi, what dip?  I thought stocks just went up, so what dip do you mean?  Is there some other dip?

[EvlTheCat]

I really wasn't trying to confuse you!  Wasn't sure if you were being sincere.

The dip I was referring to:

http://www.zerohedge.com/article/buy-dip

Keep asking questions and finding the answers.  Just make sure you have enough alcohol to deal with the answers.

They just print the money at will.  The money is not backed by liquid assets.  It is just imaginary.  Who will eventually have to back the promises made by the Fed are the American tax payers!  I.E. the middle class.  When will this happen?  When it is cheaper to wipe you bottom with the Federal reserve currency printed then actually going out to buy toilet paper.

Right now it is not just the Fed which is printing money either, the ECB is printing money and who will be responsible for their imaginary money?  The Germans.  But if you pay cloase attention the American public is also paying for the European debt problem.  How you may ask?  Through the Fed lines of credit they have offered it EU banks?  Who is on the hook for paying for these?  The American tax payer.  Double F'ed we are.

Illegal is a relative term.  The Fed's write the laws and the judical enforce the laws.  So don't hold your breath for them to do anything which will aid the American public.

[Violetta (not verified)]

I certainly intend to keep asking questions.  With 1 in 4 kids on food stamps, this kind of BS is just not OK.  I will ask questions until I can make my own graphic design (I'm a designer) to explain to the average person what this QE BS really does, and why we are getting completely screwed over, and I am going to try to get it linked on Huff Post or somewhere. 

The European debt angle sounds very disturbing.  It's going to have to be a monster graphic design, that I can see!

Thanks for the link to the video.  My kids are at home now so I'm not going to watch it but am looking forward to it.

[EvlTheCat]

I admire your tenacity at trying to get the people over at the Huff to understand the reality!  It will be no easy task.  Most people will not be able, or will simply refuse, to grasp the concept of this, and in all honesty it took me a while to admit our American government would do this to its people so willingly.  It tears me up inside some days that I kept my eyes close so long.  It saddens me to say this, but it makes me question whether I should have brought my two beautiful children into this human disgrace..  Anger is all I have for this country.. When my cork finally pops, I hope to be on the side of the righteous, and the wicked will know no pity!  Till then I hug my kids!

[Cult_of_Reason]

Re: So all the Primary Dealers are banks?

Bernanke's criminal enterprise (aka the Fed) is ripping off the American people (YOU and ME) by transferring middle class wealth (everything you own is valued in USD) to the Wall Street banks (aka Primary Dealers).

Primary Dealers List

BNP Paribas Securities Corp.
Barclays Capital Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman, Sachs & Co.
HSBC Securities (USA) Inc.
Jefferies & Company, Inc.
J.P. Morgan Securities LLC
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Mizuho Securities USA Inc.
Morgan Stanley & Co. Incorporated
Nomura Securities International, Inc.
RBC Capital Markets, LLC
RBS Securities Inc.
UBS Securities LLC.
http://www.newyorkfed.org/markets/pridealers_current.html

[merehuman]

Dip,! Dip! hey i am here. somebody call me?

[Arius]

++1...that's it...buy the dip!

[John Law Lives]

Crude oil futures reach 25-month high (Bloomberg).

http://www.bloomberg.com/news/2010-12-03/oil-retreats-after-lower-than-f...

[Bernard Marx]

I think he's playing politics with the incoming Republicans.  

He knows expanding QE will piss them off, but his retort is that without further fiscal stimulus he has no choice.  He is on record saying that more fiscal stimulus is needed as well as monetary stimulus.

The Fed always left the door open for more QE - this really isn't news.  What is news is the new front in the war between the Fed and Congress.

It also signals that the economy is much worse than the pundits have let on.

[Shameful]

Are we talking about the same Republicans? Those chaps running the show most of the last decade? They worship at the debasement alter just as much as the Democrats, don't lie to yourself. Accept the fact that both parties exist only to rob you. They only duel to see who gets the spoils of your labor.

[knukles]

They're all on the same team, just wearing different colored jerseys for the public scrums.

[ZakuKommander]

I would rephrase, suggesting that they are on different "teams" to keep the illusion of a two-party system, while simply switching roles every so often between being the Globetrotters or the Generals.  

[Calvin Jones an...]

How many pundits are actually going to say the economy is still a house of cards?  Not Cramer?  Becky Quick?  Erin Burnett?

[knukles]

Whose listening anymore?

[Worker Bee]

The Bernank is famous,with trillions falling out his anus.

Sound money? Shit dawg that's old-school and heinous.

I rob the people like vandalls ,using they necks like steps and handles.

Climbing to the top,we don't stop,bankers got class,little guy left with ass.

I got Obama round the hips,I put the stitches in his big ass lips!

Now just get on your knees and buy the mo-fo dips!

The Bernank Rap.

[Spalding_Smailes]

We've got a dollar, we've got a dollar, we've got a dollar, hey, hey, hey, hey.

-Buckwheat

"Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell."

- Sir John Templeton

[RobotTrader]

Looks like party time again next week for the bulls.  The dip buying is simply ferocious.  I sold a bunch of stuff this week.  But I'm eyballing the banks for a big move, and I'll be bandwagoning that trade if I see institutions continue selling high flying techs and buying bank stocks.

[Spalding_Smailes]

Lol'

Buy low ...

X

DRYS

BoA

MT

JPM

JKS

[tahoebumsmith]

Robo,

Can I suggest gambler's anonymous? You are SO setting yourself up for the big fall. All I got to say is good luck...Just remember they can't steal what they want unless they pull the addicts in like you to steal from.

[hambone]

Gambling is taking a bet w/ a fairly unknown outcome.  Robo aint betting.  He's shooting fish in a barrel.  I and you may not like (or even acknowledge) this is what our "market" has become but Robo is flexible enough to go both ways (financially...I feel confident of this based on the daily porn).

As long as Fed will buy T's and pump market it will go up...it will destroy the economy and dollar along the way but the market will still likely go up.  Until there is a coup or paradigm shift your choices are go short on the nimblest most amazing counterattacks, go long, or go PM's or other hard stuff.  All other plays will likely lose. 

Not how it should be and not likely any of the winners from this ramp will get to enjoy their winnings as the ultimate collapse will not be far behind the peak...I guess that's why hard stuff makes most sense.  I will acknowledge this is only one idiots pov.

[goldmiddelfinger]

BS ! Anyone can buy extended names and post ramping charts in any market that has ever existed 1930 and 2008 included.

Here's a fish in a barrel for you: NFLX at $208. All specs use options on fat share prices. Don't you wish you picked up the Dec 210 calls when robo posted the chart?

[cosmictrainwreck]

Unfortunately, hambone is right...."it is what it is". Robo & buddies laughing all the way to the bank the last few months. Smart ones will get out at top +/- a few percent, probably. Dammit - wish I'd have played it right(er). Oh well.........

[RoRoTrader]

Tune in to RobotTrader's next low risk trade episode.......out of the money call options on banks?.......out of the money puts on high flying techs?

Thank you many x over Robot for sage insight.

[Black Friday]

Is this what they mean when they say: "Buy the dips"?

[razorthin]

Yup, trade what you fucking see, not what you fucking believe.  The chance of the sudden arrival of the latter is what stops are for.

[EvlTheCat]

You invented the "dip" didn't you?

[SilverIsKing]

BANG DAE-HO BITCHEZ!

(good any time)

[Aknownymouse]

LOL.  Perfect.

[cougar_w]

Instant classic ZH

[Bastiat]

Pure gold!

[SgtShaftoe]

I wish, I wish, I wish I had more capital to throw into gold and silver (bullion and stocks).  I'm tempted to get a home equity loan and buy more mining shares. 

[slvrizgold]

A friend I work with had NO exposure to precious metals last year.  I gave him a hot tip on First Majestic Silver at $2.50 and he bought a couple thousand shares - its over $12.50 now.   He bought some more at $3.50.  He is so pleased.   He's been busy unloading loser stocks like GE and the like from his port.   I threw him a few other juniors in the last few months and some of them have popped 100-200-300% quickly.    And the thing is - these stocks aren't even trading at 2007 early 2008 levels YET!!!   And that was when gold was only in the 900s!

Lots more upside in gold (and ESPECIALLY) silver long term.   And for the mining shares even better - leverage!   I think there is another big upleg coming into spring, then maybe a serious correction over the summer washing out all the latecomers.   Then late 2011-2012 the real parabolic rise commences.

[Spalding_Smailes]

Could you pass along a few names ....

I only have one. VGGCF I'm up 30% but its risk on'

They have a q'report on 15 or 16th of dec. They are in the timmins district.

[Arius]

GE a blue chip stock.  Good luck!  you will need it.

[SgtShaftoe]

Silver Wheaton, Extorre, Exeter Resource, First Majestic, Jaguar, Keegan Resources, Gold Corp, Orko Silver, US Gold, Pan American are a few that I own.

Juniors aren't all a good buy though.  You have alot of geologists that think they're precient engineers.  They have a good resource, but don't know how to put it into production.  Alternatively, you have alot of juniors that get pumped with too much cash from the financiers, diluting their shareholders, and generally doing stupid things.  I recommend listening to Jim Puplava's gold show episodes from last week (www.financialsense.com).  He interviewed a few juniors at the San Francisco Gold Show the weekend before Thanksgiving. 

Happy Prospecting!

[EvlTheCat]

Sure hope your friend doesn't own a gun?

[mule65]

Of course.  Gotta get mortgage rates back down ASAP.

[NotApplicable]

F - U - C

K - E - D

A - G - A - I - N

When I saw gold and silver shoot up on a late friday though, my first thought was that the next phase of war would be kicking off this weekend. Instead, it just Wall Street's favorite mouthpiece yakking on their favorite "news" show.

I think they should have Andy Rooney do all of the interviews. It would certainly raise the entertainment value.

[rubearish10]

I - AM - SOFA - KING - WE - TODD - ID

I - AM - SOFA - KING - WE - TODD - ID

I - AM - SOFA - KING - WE - TODD - ID

I - AM - SOFA - KING - WE - TODD - ID

[cougar_w]

$2T QE or GTFO. Punkz.

[SmalleyD]

Nothing is fucked here.

-El Duderino

[tahoebumsmith]

We are beyond the nail in the coffin stage...Keep on pounding Ben, soon you're going to run out of ways to do it.

 http://www.youtube.com/watch?v=Vth_INW_-Hk

[rubearish10]

Big +10

[Bill Lumbergh]

This is further proof in my mind the economy is in much worse shape than the media would lead us to believe.  With valuations already over extended we are looking at yet another bubble that will blow apart down the road ruining another lot of investors.  Perhaps we should be grateful as this means we will see more Robo charts of no-name companies flying to the moon.

[Spalding_Smailes]

Look at a 2 year chart of crocs it looks like golds 10 year ...Lol'

[Bill Lumbergh]

If you can sleep at night knowing you hold a company whose entire existence is based on selling over-sized rubber flip-flops then that may be a ticket to riches.

[Spalding_Smailes]

I don't own this. A friend of my bought it on a tip at $1.50.

Hes up over $100,000 unreal ... Lol'

[Bill Lumbergh]

Amazing...proving that one can make money in virtually any stock if you get the buy and sell points correct...I would take the profits and put in something a bit more sound but I guess that is why I am not up a $100K in rubber flip-flops.

LOL

[High Plains Drifter]

You noticed how things will go crazy for a while , then all of a sudden things get quiet, then it starts up all over again. Maybe the zerohedge crew will not be getting much sleep this weekend. It looks like it is one of those times.

[trav7777]

euro down = dollar deflation...in EUROLAND.

The bernank GOT the deflation here under control; he's printing the coupon.  But there is so much more dollar debt all the hell where else.  The bernank is havin to send them the dollars to keep them from collapsing.

In fact, sourcing dollar debt is like creating an infection where eventually you guarantee the Bernank will have to print for you as your dollar debt deflates and threatens to crash dollar banks.

Accepting our inflation is the cost of dollar pegging.  The real question is how many euros are we getting out of this?  I want us to own the EU at some point.

[Spalding_Smailes]

Ben "Reverse Repo" Bernack must be sleeping like a baby ...

[packman]

LOL - so the Fed really plans to unload over $1T in MBS by April?  Really curious how they expect that to happen.

[packman]

(Never mind - I just realized that was a ZH projection - not actually from the Fed.  Thanks for the chuckle, tho)

[Tyler Durden]

Actually it is less funny than you think. In the last week $15 billion in MBS was repurchased opening space for $15 billion in UST purchases as per QE lite alone. We have long argued that the longer QE runs, the more MBS will be repurchased due to lower rates, the greater amount of UST monetizations.

Why QE2 + QE Lite Mean The Fed Will Purchase Almost $3 Trillion In Treasurys And Set The Stage For The Monetary Endgame

Furthermore, due to accelerating MBS buybacks, next week's POMO schedule which will be announced 2pm on December 10, the total number of monetizations will likely be about $130-$140 billion.

[goldmiddelfinger]

And Moody's rates the MBS purchased by the Fed at what? AAA? Oh yeah. Guesswork. From QE as a valid stimulus model to the quality of the paper vehicle. Ben cares about the taxpayer. Yeah he does.

[wisefool]

They are implicitly AAA.  Fed prints and "credits" the money that the banks use to buy the MBS back. In addition to the "existence" of the original value of the TBills that were swapped for the MBS in TARP.

If you are not only given a coupon to get a free lunch (MBS), but also given round trip cab fare to pick it up, you will be getting a free lunch. Whether you eat (service) it or not. AAA+

[Kaiser Sousa]

"wow ho ho its magic"...

thats how

[High Plains Drifter]

Don't worry about it pack. The taxpayers have his back. Its all good.

[bob_dabolina]

Is there anyone in Bens sphere of influence that discusses the direction of his moral compass?

Is there not one shred of dignity in the upper echelons of the banking system? Perhaps a green shoot?

[High Plains Drifter]

Who leaked the memo?  wikileaks?

[flaunt]

Yeah really.  Mao Lieberman should be all over this.  Gotta shut down that CBS news site.

[Arius]

Dear Flaunt: i hope you do not mind my suggestion: the word Chairman is usually used when you address Mssr Greenspan and Mao.

+1 loved your note.

[unky]

Reuters^^

[Shameful]

Yeah no surprises here.  Even in the announcement said he would print more if he felt like it.  It's QE to infinity.  he won't stop till the banks balance sheets are pure and strong and every banker has unreal bonuses, dollar value be damned!

[A Man without Q...]

Agreed - nothing new here, but they needed to find a reason for the market end up for the day. It looks like the stock churners are getting very, very worried, as they look around and realize the traditional suckers have left the table and there is nobody left to sell to.

Imagine if the US govt finances had been manipulated more than Greece, that the banking system was worse than Irelands, that the pension funds solvencies were fantasy and that the only thing keeping the system from total and utter collapse was the back door bailouts by the Fed.  Then, if you saw that crude was heading to $100, employment and wages were going nowhere and the mythical US consumer wasn't coming back and the only thing giving the illusion of demand was piling goods onto shelves and the usual accounting tricks.

Stagflation may turn out to be too mild a term for what is heading our way.

[slvrizgold]

Ben Shalom Bernanke comes from South Carolina.  I wonder if his family ran the slave trading business in Charleston way back when.   His father was a pharmacist, presumably poisoning the goys for kicks.

I hate it when people portray him as an academic dunce who "knows not what he does."   That is DEAD WRONG.   That guy had a perfect SAT score.  He knows EXACTLY what he does - and who it benefits - the moneychangers in the Temple lol.

[Mr Lennon Hendrix]

It is easy to stereotype him because the vast majority of "economists" prescribe Neo-Keynesian philosophy, er...I mean economics, and the vast majority had high grades and scores.  I could take an ex football player out to do manual labor with me, doesn't mean he is going to get the job done.

[Arius]

he is a good man handed a bad hand (i wonder if the dealer (you know who) had anything to do w/ it)

[A Man without Q...]

People with perfect SAT scores tend to be verging on socially autistic and lack the street of a hustler.  They understand very well how things work in theory, but get confused when the irrationality of human behavior throws things out of line.

[wisefool]

That covers many of them. But there many who just get used to overcompensating for the hustlers rather than confronting them. You can thank our modern public education system and its emphasis on "team" projects to engender that response.

http://www.southparkstudios.com/clips/222708/paying-for-everyones-debts

[Herd Redirectio...]

The idea that Bernanke is destroying the US dollar in spite of his best efforts is laughable.

His actions benefit an elite few, and that is no accident.  He is basically the opposite of Robin Hood, stealing from the poor (via fiat debasement) to give to the rich (through POMO and debt monetization).

http://psychonews.site90.net

PsychoNews: Exposing the Oligarchy, one Psycho at a time.

[Violetta (not verified)]

you know this kind of anti-Semitism is really sickening.

[Mr Lennon Hendrix]

Like I said before QE 2 had begun, they will revise QE 2 almost monthly, as $600 billion can only levitate the markets for so long. 

First it was $600 billion, it will double, and double and double, until $10 trillion is put into the market in the next year to get 2% "growth".  This before the banks fractionalize the dollars too.  It will be $90 trillion if it isn't stopped.  But, it will probably begin eating itself at some point, or the rest of the world will throw in the towel.  But Blackhawk will stop at nothing to maintain semi-control of the flailing ponzi.  It is his job, and he (and Lloyd) are on a mission from God.

[RoRoTrader]

Did you say cannibals, Dr Hannibal?

[Mr Lennon Hendrix]

"I ate his bonds with some fava beans and a nice chianti.  Ff, ff, ff, ff, ff!"

[RoRoTrader]

Bound to happen sooner or later. The $64mmmm question is, when?

[butthead]

Just get it over with Bennie.  Print a billion trillion and bail us all out.

[flaunt]

This is the domestic equivalent of dropping bombs on foreigners in order to "make them free."

[Hansel]

Bernanke is holding the economy hostage with his attempts to manipulate the dollar.  No one can plan ahead because this asshat has the power to inflate and deflate at his whim.

[merehuman]

if there were honesty and some degree of certainty in monetary value i might reopen my doors. Unable to trust in this uncertain environment caused me to hunker down. Minimize .

[boeing747]

Uncle Ben, can I borrow some money from you? My Citi card charged me 18.99%. I will soon default, causing great uncertainty to the already weak economy. I only need 1/10...........................0 of money you gave to banks.

WASHINGTON (AP) -- The Federal Reserve revealed details Wednesday of trillions in emergency aid it gave to U.S. and foreign banks and to nonbank companies ranging from General Electric to Harley-Davidson during the financial crisis.

New documents show that the most loan and other aid for U.S. institutions over time went to Citigroup ($2.2 trillion), followed by Merrill Lynch ($2.1 trillion), Morgan Stanley ($2 trillion), Bear Stearns ($960 billion), Bank of America ($887 billion), Goldman Sachs ($615 billion), JPMorgan Chase ($178 billion) and Wells Fargo ($154 billion).

[goldmiddelfinger]

The bearded clam speaks?

[RobotTrader]

Hecla is outperforming.  It is doing even better than KKD, CROX, etc.

LOL...

[yabyum]

Robo, HL Has been a monster of late, waiting for a dip to take another plunge, have not seen one for a while. lots of the small miners have been on fire.

[Bring the Gold]

LMAO,

Just piecing together that miners are a good place to be? I've already had multiple 3 and 5 baggers this year like Arian silver getting in at $0.12 now $0.52, Rye Patch Gold getting in at $0.09 now it's at $0.30 GPXM getting in at $0.5 now $0.16+, Great Panther silver getting in at $0.75 now $2.25. And of course there are the REE's where I've really made money since August. Wake up and smell the roses. You can gamble on banks or you can invest in hard asset stocks and physical PM's. One is backstopped by actual assets (the hard kind). The other is investing in more oligarchacal madness. I guess if you don't care about that sort of thing you can continue to invest in evil. Enjoy the harvest of evil RT!

P.S. more attractive no names if you must post that stuff, less Lohan...yuck.

[hambone]

QE"x" is needed to save us so they can slowly drain us of all assets and options.  The only cure to this will be more QE to save us so...

[Muckdog]

Thanks for the heads up.  I was reading on another site that the reason the market closed up was because the jobs numbers released were wrong and would be revised upwards.

I like to think it was just Ben promising to write a check.

[Gimp]

This QE to the nth is getting F**kin' ridiculous.

When gas is $5 a gallon,milk  $6 a gallon, a loaf of  bread $10, will it stop???

BTW - I would like to bang Lindsay Lohan all night, nice ta tas.

[goldmiddelfinger]

Those prices you quote need to be squared in the mathematical sense.

[knukles]

Reminds me of the famous Jimmy Carter in his Mr. Rogers sweater Inflation Speech were he said;

"My fellow Americans.  I'm here tonight with some good news.  Here to remind you, that inflation is your friend. 
Why, ever'body always wanted a $1,000 dollar tie, a $450 shirt and a $!7,000 suit, and prest-o change-o ya'll got it now's just wathchya'll wanted. 
Just remember.  Inflation, is your friend."
(fade out with TV screen full of teeth)

Went over big.

[Arius]

this is not fun anymore - everybody agrees...@#$$ this...we want Nadler, Gartman et al back...

[svendthrift]

During the German inflation the term "Jew Confetti" was widely used to describe the currency. The more things change...

[trav7777]

next thing you know, you'll be sayin Hitler had his "reasons"

[merehuman]

i am a white man, a minority.

Do i get the armband now or later?

i know this sounds morbid but dont you think they have to kill us because we KNOW?

[IrrationalMan]

tyler - i dont understand the references to the middle class.  really it is the entire non-banking elite class that will get completed screwed over on this.  the upper class except for the very top part will get crushed even worse as they actually have money to get inflated away. 

Great work by the way.  I have people actually asking me how the fed works and people starting to care.  It doesn't take everyone to make change in this system, especially because of how highly leveraged it is.