Michael Pento Says Fed Will Buy Stocks And Real Estate In Its Next Attempt To Create Inflation

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Tue, 08/31/2010 - 19:09 | 556487 CashCowEquity
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Gold to a million per oz.

Tue, 08/31/2010 - 20:11 | 556590 tmosley
tmosley's picture

Gold to no offer.

Tue, 08/31/2010 - 21:02 | 556660 JimDesu
JimDesu's picture

Gaah!  That's the most disturbing thing I've read today.

Wed, 09/01/2010 - 07:44 | 557179 Thomas
Thomas's picture

The Fed will probably buy GM stock.

Tue, 09/07/2010 - 14:10 | 567603 Geoff-UK
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And sell it at a loss to GM union workers, under the "Cash for Clunker-manufacturers" program. 

Tue, 08/31/2010 - 23:48 | 556896 Mad Max
Mad Max's picture

But I am bidding zim$ 1 trillion!  How can there be no offer at 1 trillion zim$????

Tue, 08/31/2010 - 20:59 | 556652 tictawk
tictawk's picture

Is the Fed not already buying bonds and stocks via primary dealers by providing them with unlimited credit?  How is it different if the Fed buys directly?  Also the bond market is many times larger than the equity market and it seems probable to me that at some point Japan and China will dump US debt in a race to the exit. 

Nobody is bigger than the market and any attempt by the Fed prop up the market will destroy any credibility that the Fed currently has.   This kind of intervention will blow up their faces and perhaps rightly so.

Tue, 08/31/2010 - 21:22 | 556688 UncleFester
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The Fed currently has credibility...who knew?

Tue, 08/31/2010 - 22:19 | 556754 QuantumCat
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Exactly... their balance sheet, even if doubled from the current $2 trillion would be pissing in the wind of a $500 trillion plus deflation black hole that is gathering steam with each passing day and every default.

Wed, 09/01/2010 - 07:19 | 557155 hedgeless_horseman
hedgeless_horseman's picture
Today's WSJ advert for bigger fools:
Capital Freeze Thaws for Real-Estate Funds

Real-estate funds saddled with tens of billions of dollars of boom-time properties are beginning to get some relief from Wall Street firms and other investors (The Fed) hoping to capitalize on their need for cash.


Opportunistic investors (The Fed) are buying stakes in troubled funds at steep discounts or lending the funds money in deals that give them a steady return and potentially a share in the profit if real-estate markets rebound. At the same time, some funds are succeeding in persuading existing investors to cough up more capital, although this typically is an uphill struggle...

Tue, 08/31/2010 - 22:40 | 556802 Getagrip
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uhh. I think that's why gold is at 1248.00. I could be wrong... 

Tue, 08/31/2010 - 23:03 | 556835 themosmitsos
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Michael Pento and EuroPac FTMFW baby [as always]

For the Mother Fucking WIN

Wed, 09/01/2010 - 08:08 | 557208 James Altucher
James Altucher's picture

What the govt should do: 

- allow under water homeowners with FNM loans to refinance at current mortgage rates (currently impossible). 

    Benefits: A) less defaults, B) the govt makes money (lend at 4.5%, borrow at 3%)

- buy S&P futures at the open market between 9:15-9:30

- force the states to sell off all universities and hospitals to raise money to fund their debt (why should the state run a college anyway?)

- give a 20% refund back to everyone who paid taxes in 2009. 

Wed, 09/01/2010 - 08:40 | 557255 DarkAgeAhead
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Good ideas, all...except selling colleges/universities.  While I'm against most things bureaucratic and governmental, the state colleges are one of the few remaining places a middle-class kid can go for a good education that doesn't put him/her/their family underwater for decades.

Eliminate that and you're left to the liberal greed and incompetence that permeates and exemplifies most private colleges today. 

Wed, 09/01/2010 - 11:26 | 557642 bada boom
bada boom's picture

Some states have a lot of land to sell.

Wed, 09/01/2010 - 12:54 | 557863 DarkAgeAhead
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Same with the federal government.  Like 90% of Nevada.

Tue, 08/31/2010 - 19:12 | 556491 LostWages
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Buyer Benny--Bitchez

Tue, 08/31/2010 - 21:39 | 556704 Shiznit Diggity
Shiznit Diggity's picture

+1 for alliteration

Tue, 08/31/2010 - 21:52 | 556720 midtowng
midtowng's picture

Fed Policy: When in doubt, double-down

Tue, 08/31/2010 - 19:13 | 556495 Tarheel
Tarheel's picture

Well we all know the FED has to buy CRE some time in the next 12 months to prevent a repeat of 2008 (or worse?)

Tue, 08/31/2010 - 19:21 | 556509 Rainman
Rainman's picture

....2008 was batting practice. We're now in the first inning of a long game. In 9/08 the CRE value turndown wasn't even on anyone's radar. It sure is now.

Tue, 08/31/2010 - 20:54 | 556640 largowinch
largowinch's picture

Actually Rainman, some people did short CRE in 2008: :)


June 16, 2008: SAAR @ $15,631 


May 19, 2009: SAAR $8,022


See iTulip.com "Time at last to short the commercial real estate?":





PS: The graphs won't embed and/or display. Oh well. :(

Tue, 08/31/2010 - 20:44 | 556621 BlackChicken
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Could not get picture to load...   Any pointers how to do this?

Tue, 08/31/2010 - 22:32 | 556784 THE 4th Quadrant
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You must be a member of the inner circle to get access to the features.

Wed, 09/01/2010 - 00:54 | 556988 defender
defender's picture

What he means is that only people who contribute articles can do that

Tue, 08/31/2010 - 19:14 | 556496 NoVolumeMeltup
NoVolumeMeltup's picture

Hell, the Fed has said as much.

But Pento is certainly worth listening to, IMO.

Tue, 08/31/2010 - 19:14 | 556497 CashCowEquity
CashCowEquity's picture

doesnt matter, there is NO DEMAND for either !!!

Sellers cant sell it, banks cant sell it. You cant fake demand, its either there or its not. Lmfao !!!

Federal Retards.

Tue, 08/31/2010 - 19:16 | 556499 Yikes
Yikes's picture

Damn, this can't be true.

Tue, 08/31/2010 - 21:57 | 556722 midtowng
midtowng's picture

It's only speculation...so far.

Tue, 08/31/2010 - 19:17 | 556504 CashCowEquity
CashCowEquity's picture

People dont need houses or stocks to survive. This only works with food stuffs (see greedy hedge funds)

This is an epic fail...

Tue, 08/31/2010 - 19:19 | 556506 Careless Whisper
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Bernanke will soon make stock purchases an outright policy of the Federal Reserve

he already has.

Tue, 08/31/2010 - 20:54 | 556644 Boilermaker
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Yea, no shit.  If it's direct or by proxy or the buying of futures (indisputable, in my opinion) or directly buying the actual stock or options...this has already been in full force for well over a year.

The only twisty thing (if I'm correct) is that they have to actually declare if they are holding equities or want to buy equities.  Maybe someone else can confirm that.

Tue, 08/31/2010 - 21:19 | 556680 optimator
optimator's picture

Will the FED have to make Cramer's disclaimer, "May have been diseminated prior to their buying" or something like that.  Imagine all the tips they'll be giving their Bankster Buddies.  It'll be a market I'll continue to stay out of.

Tue, 08/31/2010 - 21:26 | 556695 Boilermaker
Boilermaker's picture

Well, they are basically making a $100M per day, every day, even with massive upward and downward swings...so, I think they are already 'tipped off' rather well.  That isn't to say they won't swing it plus or minus 500 points now to raped it even worse...but, they are in firm and powerful control already.

Wed, 09/01/2010 - 05:39 | 557118 Shylockracy
Shylockracy's picture

This has always been the true meaning of the expression "primary dealer".

Tue, 08/31/2010 - 19:22 | 556512 Gubbmint Cheese
Gubbmint Cheese's picture

This would explain the 'dumb money' being in bonds. Ugh.. If the fed goes through with this... They are going to hurt a lot (more) people who are just trying to protect themselves...

Disclaimer: I'm long bonds..

Tue, 08/31/2010 - 19:23 | 556516 digalert
digalert's picture

I was with you until you wrote:

"And the only safe vehicle, once the market then begins to price in Fed driven asset-price hyperinflation, will be gold."

Gold is rigged, at least for awhile.


Tue, 08/31/2010 - 19:34 | 556535 faustian bargain
faustian bargain's picture

So is everything else.

Wed, 09/01/2010 - 08:43 | 557262 DarkAgeAhead
DarkAgeAhead's picture

Yes, true.  Including agricultural and water production.

Nevermind the economic bubble.  If and when the ecological one bursts, that's when true pain will be felt.

Tue, 08/31/2010 - 19:40 | 556547 lemonobrien
lemonobrien's picture

I agree; and no one hear is saying that. They're going to take massive profit on gold.

Tue, 08/31/2010 - 20:02 | 556573 Temporalist
Temporalist's picture

They have tried that and have been rebuked time and again.  Their attempted manipulations are having reduced impacts.

And what do they get in return for selling their gold?  The same worthless fiat they are printing anyway.  They might as well not sell the gold then right?

Tue, 08/31/2010 - 20:15 | 556595 LePetomane
LePetomane's picture

Well, not the physical.  But by all means sell (loan) ETF paper doo doo that stands 99.99% pure chance of being confiscate at the first sign of trouble

Tue, 08/31/2010 - 21:09 | 556667 nmewn
nmewn's picture

Well stated Temp.

Tue, 08/31/2010 - 21:11 | 556669 UncleFester
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Maybe that was the plan all along.  The curtain pulled back, the Wizard revealed, and all the yellow bricks have disappeared.  In the end they will have the bricks and we will hold but paper.

Tue, 08/31/2010 - 20:13 | 556593 tmosley
tmosley's picture

Can't rig physical without puking it all over the place.  And once it's gone, you lose your power.

Tue, 08/31/2010 - 22:00 | 556727 apberusdisvet
apberusdisvet's picture

The Chinese are "un" rigging it.  The time to talk seriously about gold is after the Chinese New Year (February)

Tue, 08/31/2010 - 22:46 | 556811 Getagrip
Getagrip's picture

It's not rigged on Ebay...

Tue, 08/31/2010 - 19:25 | 556517 RobotTrader
RobotTrader's picture

Looks like the PigMen are already front-running....

New Zealand up tonight...


Note how the banks failed to make new lows during the afternoon smackdown:

I'm watching Comerica, which seems to be holding the best:

And FCX and the emerging markets seem to be outperforming lately.

There is a limit as to how high bonds can go with all the levered trades.

There is a limit as to how low the EUR/CHF can go.

There is a limit as to how bad the sentiment can get, with AAII bulls now at the same levels as March 2009.

We are due for some type of rally.

Just sayin.....

And don't call me "psycho"..



Tue, 08/31/2010 - 19:34 | 556536 Rainman
Rainman's picture

I'll take the gold crown and leave the fish eyes.

Here's a limit for ya' Robo.......10y UST yield at .90....let's go all in like the land of the rising sun. 

Tue, 08/31/2010 - 19:35 | 556538 Spalding_Smailes
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Hope your right.

Bought Research In Motion


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