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The Greatest Central Banker of All Time
It is irrefutable.
The Bernanke Fed will go down in history as the most wildly successful
ever. Nobody in financial history has
been able to re-sky stocks in one year after the two largest banks in the
country were within a hairsbreadth of imploding. No doubt, he will be trumpeted and hailed as
a national hero, for orchestrating the fastest run in retail stocks in world
history.
And on top of taking actions necessary to fire the starter
pistol on the greatest consumer stock rally in history, he also did so while
accomplishing numerous other Herculean feats, such as:
- Exploding the Fed balance sheet and U.S. deficits
by untold trillions, yet….
- The U.S. Fiatsco remains the pre-eminent currency of choice.
- U.S.
interest rates are still waffling around at 40-year lows.
- Commodity prices have been crushed, contributing to the
first negative CPI in 25 years.
- Staggering deficit spending, yet the world still clamors for
U.S. Treasuries and U.S.
stocks.
Basically, all of the above has been accomplished with the
deft use of over a quadrillion in OTC derivatives, which can be used manipulate
the price of virtually anything.
And over the last two months, these programs have been able
to short – circuit the “EUR/USD lockstep” and stocks have made new highs while
the Euro remains crashed out at the lows.
The runups seen in various consumer stocks and REITs have
been eye-popping.
And during the last 12 months, we have been battered with:
“This is it!, and it is now!!”
“This can’t go on!”
“Wave 3 down is about to commence!”
Just check out these shocking moves:
Note how the commodity sector was pretty much flat on its back all day.
Nobody dares to go long an oil stock the day before the "Oil Glut" report comes out.
After today's move, it appears that many Asian indexes which have been hovering around "double tops" are finally going to break out.
And of course, the "Animal Spirits" will be in full swing, like those which incited enterprising speculators to start gunning the venerable Los Angeles office building magnate: Maguire Properties, with a 35% move today:
What happens if the Euro gets some kind of a bounce going?
What happens if some of the big oils start moving, or IBM?
Dow 11,000?
I suppose that Michelle C-Squared will come into Power Lunch wearing this:
And maybe Erin "B-Cups" Burnett will show up on Morning Call wearing something like this?
Who knows???? I guarantee that you will be seeing the skankiest, seedy, worst stocks start pulling up their britches and scoring some huge moves...
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UFB. UFB. UFB.
robo are you like Tiger? you only do white chicks?
O/T but what a hoot this nostalgia old school blogspot of ZH.
kept me pretty busy this afternoon, hell it has been snowing cats & dogs out.
http://zerohedge.blogspot.com/
top commenters tuesday, july 28, 2009
Gordon_Gekko 402 · 765 posts
IMA5U 61 · 436 posts RobotTrader 134 · 428 posts
lizzy36 275 · 419 posts ghostfaceinvestah 134 · 337 postsGiggity!
Thanks Ben, just like Greenspan you will go down in history as, what did they call him Oh yea a market wizard and genius. Then at the end of your career you can say my ideas were all wrong.
CAT and DE had a nice day. dewd dewd dewd i want some DELL
http://www.youtube.com/watch?v=Spa_l_12cIw
So THAT'S what's been supporting the bounces...yeow!
Ben will keep wearing that big smile for as long as he can.
Nice.
Now what were you saying, RT?
Euro hugging 1.35 looking to break down lower...VIX getting below 17...within spitting distance of the majic 1178 on S&P...i know they don't ring a bell at the top but garsh darnit there are a lot of indicators popping up at once saying next move is down
Steak,
Down? We don't need no stinking down, its the new normal.
I've seen that video of that girl pulling on her jeans before - I could watch it all day!
just going through spg 09 10-k, consolidated regional malls same store sales down over 13% during 2009 from 2007 levels, so it makes sense to me that xrt is now just 8% below its 2007 high.
The Economy of Jiggles. Nice eye candy, I was just about to get up from my computer for an afternoon "snack". Empty economy, empty calories, empty panties...there is a trend here!
And it's so easy to find the support levels under those assests....
I could just stare at that chart all.day.long.
Michelle C-Squared, wow!
DOW 11k is baked in the cake.
only 112 pts to go...
Housing disaster, DOW up 103
Exploding Volcano kills all Icelanders, DOW to infinity and beyond
We are definitely showing Tulip bulb mania who is boss...
Yes, the goldbugs are showing tulip bulb mania who is boss.
Just as people paid 2 dollars for one tulip bulb in Holland, people will now pay 1100 an ounce for gold that is worth 600.
MB, do let us know when you finally break down and buy Au, for then we will know the end is near!
Real or enhancements that is the question. Oh yeah, and the market was up AGAIN!
Real. Definitely real. A lot realer than this equity market.
Oh, puh-LEEEEZE, Mr. Balding Pudgy Investor, just let me hold your nest eggs....it's safe, and I'm a virgin, and these are real....I promise (bats lashes).....
NO THANKEE GS SKANKEE
Robo,
I implore you to lay off Bubble Ben. The man is just a patsy for the vested interests. His job functiions are clear: REFLATE, REFLATE, REFLATE!
On a more important topic, these solars were flying today:
It's a jungle out there...LOLLLL!
I remember moves like this.... in 2000.
Leo, wtf is wrong with you? I still had a partial from watching that shay laren gif loop about 60 times and then scroll down to see a baby in sunglasses. You're sick.
Bernanke should get Nobel Prize.
Henry Paulson too.
AMAZING JOB.
the post is a joke.
that's why Buffett and others are full of money
keep shorting the market one day you will get it right.
right and broke.
The market is climbing the wall of worry
I don't understand why this site is so bearish. c'mon guys.
It's not only the stock market.
Anyway it's worthless trying to bring arguments.
Good Trading.
So, you want us to stop providing analysis and truth and just join in. IOW, buy the broker line and buy some stocks.
NO WAY.
I would like to see posted also the good news.
It is a very good site
DMA
If you shorted the SPY in 1998 you would be about flat right now ( less the ass whooping by inflation), the market is "climbing" over the same pile of crap over and over again.
I don't play index or ETF's
Look at the stocks.
You said "the market" is climbing and it clearly is not.
Somebody delete Leo please.
IMO, if you want to take away how the US was built, its reputation and its potential and its hardworking citizens, and then you say, “I would rather have a big stock market, and I would rather have money for my friends in the banking business, so I will trade you America’s future and potential and reputation, if you will just give me that.”
And the Devil said, “Okay, but not for very long but you can have it for the moment. If you will give me America.”
Many thanks Robo! Alwaly look forward to your comments on these scant volume days
Look at this pos, trying to stage a comeback:
Residential mortgage insurance, that's the ticket to prosperity! NOT!
Death twitch, those names will be the first to sell off when the market rolls, just like last fall.
So, Leo, clearly your advice to buy the dips and ride the manipulated meltup has been great for the last year. However, you seem to admit the rally has nothing to do with fundamentals, even in your beloved solars. Assuming this is just a manipulated no volume meltup driven by robots, how do you plan to get out when the bottom drops out? Or will the bottom never drop out? Buying the dips works great until you buy a 10% correction shortly before there is 10% more to the downside, where you buy the dip again, only to ride through another 10% down, etc. Do you have magic tradar that tells you when a dip is just a dip and not the end of the meltup?
Captain,
My advice remains to keep buying the dips, but I favor certain sectors more than others: tech (software, networking, storage, semis), energy (especially alternative energy like solars), medical device companies, and a few infrastrcture plays. I remain neutral on banks but they will make money as M&A picks up. Fundamentals are strong in these sectors, but add a pile of liquidity and you'll see major run-ups (exponential phase). I do not see any major catalyst for a downturn any time soon. The name of the Fed's game is reflation, and so far, they're succeeding.
Agreed. As in, the spendthrift, no-money-down crowd didn't seem to give two shits about the rolled-in cost anyway.
I've defaulted bigtime and just got a credit card offer. LOL.
The weird thing is the epic disconnect between equities valuation and the reality out here on main st. USA.It is so obvious we are all breathless...waiting for the market to tank.Ultimately, I guess that is silly...since everything else is.Unemployment, home loss,choosing between groceries and heating the house, etc.
Like a mannequin in a store window, the market looks good from a distance, but once you get close you find the vision of beauty reduced to a fake piece of crap.Meanwhile, rome burns....
This article hits the nail on the head. The "market" is trying to tell us how much better things are getting and that the "experts" know good times are just around the corner. On the one hand, I imagine Wall Street is living in a bubble, assuming earnings growth that is a function of government stimulus and cost cutting tells you all you need to know. On the other hand, maybe they know that they must do anything and everything to prevent a deflationary collapse destroying their loan portfolios. From the sounds of things, main strett just isn't buying it.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aTp.Sf7cvYvU&pos=3
"Commodity prices have been crushed, contributing to the first negative CPI in 25 years."
???
CPI was negative thanks to "owner's equivalent rent", whatever that is.
What the survey sample estimates they could rent out their home for - doesn't sound very scientific, but makes up 24% of the index.
"I wouldn't get much for my place as they could always live in one of the six empty houses in this block..."
I think that'swhen 3 generations move into your duplex. Make sure you fill out that census form...but dont leave your fingerprints anywhere on it.
RT, if I didn't say it before, your presentations, no matter the accord, are awesome.
Isn't the market pricing in strong inflation at this point? The sort of inflation that will destroy the value of debt on balance sheets, but also prop up the income statement? That's my take on it. Which also matches that of gold.
Meanwhile, official CPI will remain low indefinitely because of falling house prices, and hence, falling owners equivilant rent.
Look for increased yield curve steepening in the next few years. Short-end of the curve down at 0%. Long end of the curve at 6-8% or higher. This sort of steepening, alone, will, of course, bankrupt holders of long-duration bonds. Rising long-term interest rates will, of course, destroy most pension plans, especially those who either bought real estate, or took the advice of the bankers a few years ago to duration-match their assets to their liabilities.
Yes, the gold market has inflation already priced into it. And more...
'At this point' being the key phrase...inflation is the drug of choice for the 'ponzi' addicts.
Here we go again...
New highs list is expanding every day.
"Captain Smith what about the icebergs ahead?"
"The Titanic is unsinkable, full steam ahead!"
Hold on tight, it's going to be an interesting ride.
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StocksGenworth Financial, Inc. GNW.N $16.54 +0.30+1.85% 3:01pm EDT Office Depot, Inc. ODP.N $8.18 +0.08+0.99% 3:05pm EDT Fifth Third Bancorp FITB.O $13.46 +0.03+0.22% 3:00pm EDT var sTicker = 'GNW.N,ODP.N,FITB.O,GCI.N,WYN.N,PCS.N,GME.N,DF.N,PBCT.O,APOL.O,HIG.N,LNC.N,CBG.N,NDAQ.O,AON.N,NTRS.O,KEY.N,JBL.N,JDSU.O,SNDK.O,AMD.N,MU.O,WFR.N,ERTS.O,SAI.N,LLTC.O,YHOO.O'; //var sTicker = 'GNW.N,ODP.N,FITB.O'; var baseChartUrl = 'http://proxycache.reuters.com/wsod/enhancements/chartapi/chart_api.asp?'; var baseChartFormatting = '&width=300&height=162&headerType=none&display=mountain&theme=blue&preset=stockQuote'; var stockSectionUrl = '/finance/stocks/overview?symbol=';
March 9 (Reuters) - A year ago on Tuesday the S&P 500.SPX stock index hit a 12-year market low during the
financial crisis before embarking on a run-up of nearly 70
percent. The rally was fueled in large part by strong gains in
financials and technology stocks, with the S&P Financial index
.GSPF up almost 145 percent and the S&P Information
Technology index .GSPT up nearly 84 percent. Following is a list of the top and bottom five performers
on the S&P 500, along with the top and bottom five performers
among financial and tech stocks. For a factbox on key U.S. markets and indicators see
[ID:nN09234832]. For the latest Wall Street report see [.N].
STOCK 1-YR PCT CHANGE
S&P 500
BEST PERFORMERS
Genworth Financial Inc (GNW.N) 1687.9
Office Depot Inc (ODP.N) 1206.8
Fifth Third Bancorp (FITB.O) 807.2
Gannett Co Inc (GCI.N) 728.7
Wyndham Worldwide Corp (WYN.N) 672.3
WORST PERFORMERS
MetroPCS Communications Inc (PCS.N) -55.0
GameStop Corp (GME.N) -19.4
Dean Foods Co (DF.N) -15.8
Peoples United Financial Inc (PBCT.O) -9.4
Apollo Group Inc (APOL.O) -6.2
FINANCIALS
BEST PERFORMERS
Genworth Financial Inc (GNW.N) 1687.9
Fifth Third Bancorp (FITB.O) 807.2
Hartford Financial (HIG.N) 556.8
Lincoln National Corp (LNC.N) 437.7
CB Richard Ellis Group (CBG.N) 421.0
WORST PERFORMERS
Peoples United Financial Inc (PBCT.O) -9.4
Nasdaq OMX Group (NDAQ.O) +1.5
Aon Corp (AON.N) 7.0
Northern Trust Corp (NTRS.O) 14.7
KeyCorp (KEY.N) 20.0
TECHNOLOGY
BEST PERFORMERS
Jabil Circuit Inc (JBL.N) 436.4
JDS Uniphase Corp (JDSU.O) 413.1
SanDisk Corp (SNDK.O) 336.7
Advanced Micro Devices Inc (AMD.N) 303.7
Micron Technology Inc (MU.O) 271.7
WORST PERFORMERS
MEMC Electronic Materials (WFR.N) -2.6
Electronic Arts Inc (ERTS.O) +10.1
SAIC Inc (SAI.N) 13.7
Linear technology Inc (LLTC.O) 29.9
Yahoo Inc (YHOO.O) 30.5
Sources: Thomson Reuters data
(Editing by James Dalgleish)
Yay! I made money picking two of those stocks at the bottom... (HIG) and (AMD). My old boss still owns his HIG.
I didn't hold all the way to the top, I sold a while ago.
Also, I used to trade GME for a long time too. It was a good moneymaker, as it traded between a range of 20-30 like clockwork. Then it fell apart and I stopped trading it.
Lou Ferrigno 'The Hulk' would blush at the amount of juice used to pump up this market
well im short.
and heaven help me...
Don't know how apropos your short vid is to the market, though I would never complain. That poor woman is obviously in the fight of her young life against the ravages of gravity, a battle that will only get more futile with time and age (though I suspect she has had her share of volunteers to give her a helping hand).
The market, on the other hand (if we'd have a hand left), challenges Newtonian physics each and every day. If such a force of nature could be packaged into a garment produced by Victoria's Secret, well....the thanks of a grateful nation and all that.