Charles Biderman On How The Fed Continues To Rig The Market And Why There Will Be A QE 3...And 4

The last time Charles Biderman appeared on CNBC, he was carted onstage (and promptly off) in the late hours before Christmas Eve, when it was virtually assured nobody would hear the self-evident truths out of his mouth such as this one: "individuals have been selling, companies are net selling, insider
selling and new offerings are swamping any buyback and any cash M&A
activity since QE 2 was announced. Pension funds and hedge funds don't
really have that much cash to invest. So what nobody's asking is what
happens when QE 2 stops: if the only buyer is the Fed, and the Fed stops buying, I don't know what is going to happen...When
I was on your show a year ago I was saying the same thing: we can't
figure out who is doing the buying it has to be the government, and
people said I was nuts. Now the government is admitting it is rigging the market." Now that the great muni scare forced retail to take proceeds from muni liquidations and invest in stocks just as the market topped out, CNBC brought Biderman on again, hoping to get something, anything, bullish out of the flow of funds expert. Wrong. "In December of 2009 received a lot of ridicule for saying that the Fed is rigging the market which as everybody is well aware." As for the "sustainable economic recovery" i.e., what happens to Quantitative Easing: "They probably will end for a while, we think there is going to be a QE3 and 4, or until the market says: "No Mas - we are not going to believe this game the Fed is playing... The Fed is printing over $100 billion a month to buy other assets and pay bills, and economic growth is picking up at a $200 billion annual rate. This is very inefficient method of boosting the economy, and then how do we repay these trillions that have been created out of thing air in the future." At which point the producer "screams get him off my show."

Oddly enough, this form of market manipulation by the Fed is precisely what Zero Hedge has been claiming since day one, prompting our legacy media followers to brand us on occasion as "conspiratorial." Ironically, it is precisely this kind of "conspiracy theorism" that is ultimately proven to be nothing but fact in this bizarro banana republic, now that the wheels of the Ponzi system are finally coming undone (see the recent deranged ramblings of one Bill Gross for more). Yet it hasn't stopped once upon a time blogger, CNBC regular and now Bloomberg columnist, Paul Kedrosky to declare from atop his status quo-worshipping altar that Zero Hedge is "too conspiratorial and too much of an intellectual monoculture." That's ok Paul, we realize that mainstream bashing of Zero Hedge in public, while fervently copying, pasting and/or paraphrasing from it, is all the rage for our less than sophisticated, but admittedly very, very polycultured, imitators. And yes, just like Biderman, we are happy to be called "conspiratorial" if that is the MSM's codeword for being proven right within 3 to 6 months... and actually having an original thought.

Comments

[Instant Karma]

I joined twitter to follow Charlie Sheen but Zero Hedge is my favorite. Could Tyler use a different avatar on twitter? He has a sweaty shirtless brad pitt sporting a six pack. I am aroused and conflicted at the same time. Very distracting.

[mark mchugh]

"intellectual monoculture"?

I guess that's what Kedrosky calls people who refuse to see the emporer's new clothes. 

God! He's even annoying to read in small doses.  Does anyone read this clown?  Doesn't look like it.  Smoove move, Bloomberg.

[Grand Supercycle]

AUDJPY weekly chart reveals what's been happening since the crash and the ‘recovery’.

The smaller wedge that starts mid 2010 reveals a weakening trend despite the QE intervention.

This chart should not be ignored in my view.

http://stockmarket618.wordpress.com

[trav7777]

monoculture?

sure there are a lot of conspiracy moonbats here, but people come to ZH as much to read the comments as they do the articles and ZH is rivaled by few sites out there.

You want a monoculture, watch fuckin CNBC...sheeit.

[DrStrangelove]

The most interesting chatter I heard pre-market this morning was, the dollar is breaking through critical support and we are headed dramatically lower. The dollar typically rallies in situations like this when there are masses rioting in the streets from Africa to the Middle East, the market has decided financial stability and preservation of capital is no longer as simple as saying "buy Treasuries." Quite a rational assumption if you ask me.

The reserve status has been weakened greatly, but relative to other major currencies, as displayed in the dollar index, it is undervalued. Could it dip all the way to 74, yes, but that looks like rock bottom at the moment. A short term move to the upside is likely. This of course is contrary to much of what I heard this morning. When speaking about a more lengthy timeframe, well, I would have to agree we are headed much lower...

more over @ http://nationaleconomist.blogspot.com/

[theprofromdover]

I want to see Banzai's image of the Bernank as Casey Jones, shovelling on more greenback coal.

[freedmon]

If big companies are doing buybacks, and insiders are selling, I would suggest that people at these companies are using corporate funds to bail themselves out.

[Jirafe]

I saw the write-up by Paul Kedrosky on Time.com.  Wow, really flattering for a top 25 financial blog.  Not.  I guess that is why I read ZH far more often than PK's blog.

[sbenard]

Dear Tyler,

Conspiracy ain't no theory. It's a FACT!

[pyite]

OK, he said that ZH is:

too conspiratorial and too much of an intellectual monoculture

which to a certain extent I agree with.  But he didn't say that the accusations were wrong.