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IceCap Asset Management On The Money Printers

Tyler Durden's picture





 

From Keith Dicker, CIO of IceCap Asset Management

With the QE2 announcement now out of the way, Mr. Bernanke’s game plan is as follows:

  1. Lower interest rates for “everybody“ and “everything”
  2. Stocks & Bonds will then increase in value making “everybody” and “everything” feel wealthier
  3. “Everybody” will then start to buy “everything”
  4. Pray that the price of “everything” doesn’t increase too much and therefore cause “everybody” not to buy “everything”
  5. If steps 1 to 4 are successful, businesses will begin to create jobs for “everybody” because they will once again be buying “everything”
  6. Ignore the housing market problem
  7. Ignore the debt problem
  8. Ignore the effect of numbers 6 & 7 on the banks

Pray that foreigners continue to buy newly issued American debt Simple enough. But wait, this is where it becomes interesting.

November 2010: The Money Printers (pdf)

 

IceCap-Asset-Management-Limited-Global-Markets-November-2010 -

 


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Fri, 11/12/2010 - 15:38 | Link to Comment Dick Darlington
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Best opening i've ever seen in any research piece. Totally cracked on the band introduction. JCT in keyboards, Looool!

Fri, 11/12/2010 - 18:39 | Link to Comment ATG
ATG's picture
  1. “Everybody” will then start to buy “everything”
  2. Pray that the price of “everything” doesn’t increase too much and therefore cause “everybody” not to buy “everything”

1 Began last summer

2 May be Now

Wonderful how price works to decrease demand, increase supply and reduce price, somehting central planners rue everywhere

Debt default deflation batches

Fri, 11/12/2010 - 19:19 | Link to Comment bank guy in Brussels
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Re « Best opening i've ever seen in any research piece. ... »

Many ZH readers probably don't know the really classic comedy piece from decades ago, "The Intro and the Outro" from 1967 and the Bonzo Dog (Doo-Dah) band.

Musicians joining a piece ... and then keep on joining and joining ... including various historical and famous figures ... French President De Gaulle on accordion ... 'Adolf Hitler on vibes. Nice!'

3 minutes on YouTube, unforgettable:

http://www.youtube.com/watch?v=8DUEAG5eO6c

Fri, 11/12/2010 - 15:40 | Link to Comment Gloomy
Gloomy's picture

Fabulous graphic on "The New Economic Cycle". I'm laughing and crying:

 

http://www.ritholtz.com/blog/2010/11/the-new-economic-cycle/

Sat, 11/13/2010 - 15:33 | Link to Comment Dismal Scientist
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Its by Gordon T. Long. Was posted here on ZH a while ago. See his website 'Tipping Points' for more.

Fri, 11/12/2010 - 15:43 | Link to Comment goldmiddelfinger
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"...we will not be decreasing our stock positions...."

 

Another wildebeest bleats from within the homogeneous herd

Sat, 11/13/2010 - 04:15 | Link to Comment Pondmaster
Pondmaster's picture

.. positions in Ag commodities and precious metals . How else are you going to break even with inflation ... oh yeah all in in TIPS ? Not!! Food inflation , fuel and everything else inflation is here to stay . But .. shhhh ... we really don't have any inflation ... mums the word .. shhh.

 

Fri, 11/12/2010 - 15:45 | Link to Comment slaughterer
slaughterer's picture

But Ben should be singing:

"Buh, buh, buh ... Bennie and the Inkjets..."

Fri, 11/12/2010 - 17:01 | Link to Comment Problem Is
Problem Is's picture

"Ben's got electric boots, a mohair suit..."

Fri, 11/12/2010 - 16:02 | Link to Comment HarryWanger
HarryWanger's picture

If we move back above 1200 in the next couple of minutes, it could rally hard to close.

Fri, 11/12/2010 - 16:06 | Link to Comment chet
chet's picture

We'll see.  It will have to be a heck of a stick save.  Unlike those who hound you here, I actually went with the Wanger Trade upon the announcement of QE2. 

I now hold you personally responsible for my financial well being (just kidding.)

Fri, 11/12/2010 - 16:16 | Link to Comment SheepDog-One
SheepDog-One's picture

Step 1- Collect underpants.

Step 2-  ?

Step 3-  PROFIT!

Underpants Gnomes business plan and Bernanke seem to have a lot in common!

Fri, 11/12/2010 - 16:29 | Link to Comment GoinFawr
GoinFawr's picture

With sheepdog: hahahahaha!

@ Harry: if the DOW does manage to pare its losses moments before the close, won't the PM's recover to an equivalent degree?

Also, wouldn't that shove the DXY right back down to tracing out yet another small portion of a H&S topping pattern within the giant H&S fractal expression that makes up that index?

Have a great weekend all.

Regards

Fri, 11/12/2010 - 16:43 | Link to Comment HarryWanger
HarryWanger's picture

Or not, I suppose.

Fri, 11/12/2010 - 18:41 | Link to Comment ATG
ATG's picture

If we move back above 1200 in the next couple of minutes, it could rally hard to close

Not today

The hook may be set

Fri, 11/12/2010 - 16:06 | Link to Comment max2205
max2205's picture

The biggest laugh will be spx down 15% by Dec. And everyone screaming about why the PD's could push stocks up. Paul holds hearings asking what trades took place. But we all found out (like TARP) that it's sitting on PD balance sheets. Like before they were unwilling to lend tarp but now they are unwilling to buy alpha.

WE've been fooled AGAINNNN, NO NO!

Fri, 11/12/2010 - 16:11 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

Alternatively we learn they are loading up on shorts since everyone that wants to be long is already long...there is no such thing as a free lunch even if Bernanke promises one.

Fri, 11/12/2010 - 18:43 | Link to Comment ATG
ATG's picture

Bingo, Bill

Fri, 11/12/2010 - 16:06 | Link to Comment H. Perowne
H. Perowne's picture

Step 9 . . . Profit

Fri, 11/12/2010 - 16:15 | Link to Comment SheepDog-One
SheepDog-One's picture

So as long as everyone can just imagine theyre wealthy, although dirt poor, homeless, and hungry, it should all work marvelously without a problem!

Fri, 11/12/2010 - 16:19 | Link to Comment redpill
redpill's picture

Can anyone tell me how, practically speaking, the Fed Board of Governors is any different than the Chinese Communist Party Central Committee?

Fri, 11/12/2010 - 16:21 | Link to Comment There is No Spoon
There is No Spoon's picture

the fed is worse

Sat, 11/13/2010 - 05:58 | Link to Comment The Real Fake E...
The Real Fake Economy's picture

PhD's in Economics vs PhD's in Engineering

Fri, 11/12/2010 - 16:39 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

They're back...

 

Video: Quantitative Easing Explained - http://www.creditwritedowns.com/2010/11/video-quantitative-easing-explained.html

Fri, 11/12/2010 - 17:42 | Link to Comment GoinFawr
GoinFawr's picture

Effing funny vid. Thanks for that.

Fri, 11/12/2010 - 20:08 | Link to Comment JW n FL
JW n FL's picture

http://www.creditwritedowns.com/2010/11/video-quantitative-easing-explained.html

 

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Thanks! Great Video... send it to everyone... everyone!

Fri, 11/12/2010 - 21:08 | Link to Comment i-dog
i-dog's picture

"Quantitative Easing Explained - http://www.creditwritedowns.com/2010/11/video-quantitative-easing-explained.html"

Toooooooo funny!!! A real screen washer (coffee everywhere!).

Her: "I want to bang my head against the wall"

Him: "You should not do that"

Her: "Why not?"

Him: "Because the healthcare is too expensive"

Fri, 11/12/2010 - 17:33 | Link to Comment EvlTheCat
EvlTheCat's picture

“Everybody” will then start to buy “everything”.

I felt so good today, soooooo... warm and fuzzy about the economy, I marched right down to the bank pulled out a third of my savings and bought something alright.  I don't know which I feel better about, pulling my money out of the bank, or what I bought.  I am sure time will tell me both were satisfactory choices.

I can tell you several things that gave me instant satisfaction though.  Seeing the tellers face when I wrote in the amount on the withdrawl slip.  Then the managers face when she had to come over and approve the withdrawl.  Then both their faces when they had to call and get it aproved by the "powers that be", and I would not answer their intrusive questions about the company was I was making the check out to.  "But it's for your protection???", they promptly spouted.  I told them just loud enough for everyone in line to hear, "but that is what I am doing, protecting myself".  After that the rest of the process was expedited.

For some reason "Money" from Pink Floyd was stuck in my head though.  I just couldn't get the hang of that "do wa diddy" song.

Fri, 11/12/2010 - 18:49 | Link to Comment Ratscam
Ratscam's picture

have not laughed as much for a long time - simply great article!

Long live Norway and Switzerland which will get slaughtered as well!

Fri, 11/12/2010 - 19:18 | Link to Comment mcarthur
mcarthur's picture

Ben needs to understand the difference between cost push and demand pull inflation.  Ben is stoking the first in hopes of getting the second but this is a pipe dream.  His comments that commodity price increases will not flow through to final consumer pricing is laughable.  If he actually believes this he is stating that his policies will kill corporate profits as expenses rise and revenue doesn't.

Fri, 11/12/2010 - 23:10 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

If the wages of most American workers remain stagnant and jobs continue to disappear, how are 'the people' going to feel 'wealthy enough' to go out and buy stuff?

I suppose Ben is only concerned that 3% of the population feel 'wealthier' so that they will spend 3% of their new found wealth? Trickle down?

I will go ahead with plans to purchase a push cart banana stand. I have some innovative ideas in this area. A banana in hot dog roll with mustard, onions and smothered in chilli sauce made from cat food and all for a 90% silver dime.

 

 

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