- advertisements -
Of course, if Gross is right, he would be buying stocks on margin, not MBS. So take notice.
I've been saying this for a few weeks now. Everyone is expecting a stock sell off on QE2 when just the opposite will happen. Dollar will drop and equities will rally hard. Can't see why most haven't figured this out yet.
Guess we're just not as smart as you, Harry.
You are confused. People expect QE2 to bring more money into the system so the expectation is for the dollar to fall and stocks to rise. This is the consensus: QE2=more money=higher stocks. The opposite is stocks dropping due to disappointment in the size and clarity of the program.
Harry please tell us what will happen if QE 2 is less than expected...right...so much for your theory.
And on what planet is that a "Good thing"
CO2 is rising because they cut down the trees. Which is the one do you need to live and breathe.
Excuse me, but Bill Gross is buying MBS, not stocks on margin. So take notice.
What if a falling dollar no longer guarantees a rise in stocks? That correlation has to break down sometime.
Thats the question of the year.
Cotton is on a tear, and even natural gas gave a good pop over the latest dollar weakness. Equities are not acting so energetic.
I wonder if Wanger will go the way of Bravo, if his theory of ends up getting smashed?
zimbabwe has the highest stock market in the world, thats why.
Except that it didn't keep up with the inflation rate. As such, someone with insider information would not invest in it.
No one said you should invest in it. Hard assests BIOTCH.
I'm pretty sure Harry did. Good to see you still have use of your brain, unlike some people.
Well thats his funeral
Can't see any scenario where that would happen unless some major global disaster were to occur.
LOL the disaster ALREADY happened - the pin has already been pulled on the derivative grenade, just because it hasn't blown up yet doesn't mean everything is OK.
"What if a falling dollar no longer guarantees a rise in stocks? That correlation has to break down sometime."
That's impossible. Weaker dollar equals inflation. And inflation equals higher nominal values. The Argentinian stock market has performed 'very well' during the hyperinflation.
oil 100 $
Yay to interest rate rises...yay to AUD increase...yay to increased mortgage stress and destruction of indebted families...yay to the destruction of Australian exports (except for digging holes in the ground)...yay to social turmoil and the end of the weak Labor government. I see bad things for Australia here.
I've just entered gold bullion orders in $. Those a valuable for 7 days.
If the dollar drops 20%, I'll pay the bill and make a easy 20%.
Otherwise, I just let it expire :)
And what company would allow you to lock in prices for 7 days without completing the terms of the purchase agreement?
The USA is not listed in the countries they make good delivery to. Oh well.
Yeah that sounds fishy to me. The dealer I use charges a fee + the potential loss if you don't pay up.
He's in Belgium, he gets deal there on the cheap,prices on coins we only dream about.
Anyone thought of taking a flight overseas and buying gold at the better rates?.
If you buy 40-50+ozs, it may be worth the trip, ideas?.
At what price do they charge you when they sell you gold? Just at the price Comex shows? Or they add a margin?
to sell your gold or silver you use Ebay.
You need to be nuts to sell your gold or silver back to those kind of brokers.
anyone notice how the last two days, gold and silver open up and climbs only to be cut in half or less than half for the days gain, makes me wonder how much effort is out there to push down, in anticipation of tomorrow.
Just keep damn good records, cause the IRS is.
speaking of keeping good records, I heard some noise the other day about somewhere in that insane Health Care Bill that passed there is a provision in there that states, a Federal IRS form is filled out or recorded for every transaction you make (starting next year) that is greater than $600.00.
Anyone else hear or see this? So if Bennie kills the buck, and bread costs 600 a pop, we'll be spending all our free time in the bread lines filling out forms....
It's more than a rumor, it's a fact. Embedded in the Ob@m@care legislation is the proviso that ANY business which purchases ANY goods worth more than $600 in a year, cumulative, is required to generate a Form 1099 Misc for that transaction. This begins in January 2012.
Thanks for the reply,
is it only business or personal as well?
Business; but if you sell anything TO a business, they will generate a 1099 which will have your name and SSN/TIN as the seller.
Agreed. Suckers buy on ebay and who better to sell to than suckers.
This thing is wound up tighter than Ray Charles circa 1964.
Is QE 2 a threat? If so to what? Not to equities. They "never get any money" as is so well stated here. It's the fixed income that "gets all the free money." Needless to say "the junk" is in surprisingly short supply. Eeeeks. If that doesn't scream "hyperinflation" i don't know what does. Welcome to the "Roman Wilderness of Pain."
I guess you never heard of POMO, despite it being covered in detail here damn near every day.
If the FED is buying long term treasuries with QE2 then the FED is betting deflation will win out and they will make a killing on those treasuries.
When yields go down, bonds prices go up.
Well guess what, they are talking abiut buying something besides Bonds and Euities with this batch.......no law saying they have to buy Bonds.
Besides makes no sense, and does not help the regular folks, or the economy.
Wrong wrong wrong wrong wrong.
The Fed isn't "betting" on anything. They are trying to manipulate the market to produce growth. BIG difference. They don't have a rational self interest save to keep the politicians happy. They don't get to keep the profits they might make, but rather have to turn them over to the Treasury. That, plus they aren't playing with real money.
That, plus they aren't playing with real money.
That, plus they aren't playing with real money.
Understatement of the day.
The Fed can run but it can't hide and it damn sure can't indefinitely prevent a Minsky moment from occuring.
I've been saying this for weeks...nay, months...oil market is calling the shots. A 70% consumer driven economy is what's working against Benny and the Jets.
The reality of it is that Benny can't reverse engineer valuable commerce by debasing the real currency. But he sure can wreck the whole gig by driving the PERCEPTION of a weak currency which will be self defeating as the laws of gravity (commerce inputs aka oil) take place again. It's like Peter walking on water. It was all good til he looked down...
WTF are gold and silver doing? Everything else is roaring but gold and silver barely budge.
Some heavy bank shorts playing. The nuisance capacity of banks like JPM will stay intact on the PM markets until they go bankrupt or have no cash flow.
The PMs hardly budging today smells damn fishy for the short term.
Considering that the Dollar jus took it up the butt its the perfect cover to make a run the shorts but nothing happened.
Damn weird that there's no spike.
how much crack would a crackhead get, if a crackhead wanted more crack?
woulda crackhead starve him/her self to get more crack,
if a crackhead thought s/he could (get more crack that is)? stfu um!
are you on crack right now or are you sticking to glue?
Picked a bad time to stop sniffing glue!
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.