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Paul Farrell On The One Thing Buffett, Gross, Grantham, Faber, And Stiglitz All Agree On: "Bernanke Plan A Disaster"

Tyler Durden's picture





 

By now it is more than obvious except to a few economists (yes, we realize this is a NC-17 term) that QE2 will be an absolute and unmitigated disaster, which will likely kill the dollar, send risk assets vertical (at least as a knee jerk reaction), and result in a surge in inflation even as deflation on leveraged purchases continues to ravage Bernanke's feudal fiefdom. So all the rational, and very much powerless, observers can do is sit back and be amused as the kleptogarchy with each passing day brings this country to final economic and social ruin. Oddly enough, as Paul Farrell highlights, the list of objectors has grown from just fringe blogs (which have been on Bernanke's case for almost two years), to such names as Buffett, Gross, Grantham, Faber and Stiglitz. And that the opinion of all these respected (for the most part) investors is broadly ignored demonstrates just how unwavering is the iron grip on America's by its economist overlords. Which brings us back to the amusement part. Here are Farrell's always witty views on the object which very soon 99% of American society will demand be put into exile: the genocidal Ph.D. holders of the Marriner Eccles building.

From Paul Farrell's latest: Sell bonds now, Fed's QE2 is doomed to fail.

Warning, Fed Chairman Ben Bernanke’s foolish gamble to stimulate the economy will backfire, triggering a new double-dip recession. Bernanke is “medding” too much in the economy, say Marc Faber, Bill Gross, Jeremy Grantham, Joseph Stiglitz and others.

The Fed is making the same kind of mistakes Japan made that resulted in its 20-year recession. The Washington Post says Larry Mayer, a former Fed governor, estimates that to work it would take QE2 bond purchases of “more than $5 trillion …10 times what analysts are expecting.”

Bernanke’s plan is designed to fail. And, unfortunately, that will make life far more dangerous for American investors, consumers, taxpayers and voters.

“I’m ultrabearish on everything, but I believe you’ll be better off owning shares than government bonds,” said Hong Kong economist Marc Faber at a recent forum in Seoul. He sees a repeat of dot-com-bubble insanity today. Faber publishes the Gloom, Boom & Doom Report.

And Warren Buffett agrees, warning that anyone buying bonds now is “making a mistake.” Don’t buy. Sell.

Here’s how Bloomberg News reported Faber’s warning: “Global markets are heading for an ‘important turning point’ with interest rates beginning to rise within about three months and the U.S. dollar gaining strength … Instead of interest rates going down, they could start to go up. Instead of the dollar being weak, it could strengthen.”

Is Faber reliable? You bet: One week before Black Monday 1987 Faber warned investors to dump stocks. Then in early 2006 he warned of a “correction coming.” Again in mid-2007 Faber said U.S. stocks were “entering a bear market.” After that, Wall Street lost over half of America’s retirement money in its subprime disaster …and Wall Street’s about to do it again. So when Faber says sell bonds, buy stocks, please listen.

Just who is this Ben Shalom Bernanke?

Lately Bernanke’s acting like an egomaniacal politician, a savior trying to manipulate the economy in the wake of the failures of Congress, Obama and the GOP Tea Party of No-No to get results. That’s not the Fed’s job, and still Bernanke’s pulling out all the stops, repurchasing government bonds, printing too much money, flooding the currency markets. Fed zombies hungry for quantitative easing.

The egomaniacal politician is trying and succeeding in creating the greatest asset bubble ever, dwarfing anything created by his even more demented predecessor.

All so predictable: This has been building since said he wanted to buy back more bonds. The Wall Street Journal’s Jason Zweig warned earlier this month of a “Bond Bubble,” noting that while many are blaming “small investors for taking big bets,” the truths is, “it isn’t Joe Schmoe, it’s Uncle Sam.”

Nobel economist Stiglitz predicts it will fail: “Easy money won’t work … the Fed risks fueling a destructive bubble.”

It’s an old game: Since the 2008 meltdown the Fed has been Wall Street’s secret conspirator, stealing from Main Street (by keeping money market interest rates low) and giving that cheap money to a failing Wall Street (so their quant-speculators can keep gambling on derivatives, to justify paying themselves mega-bonuses).

Warning, this is all part of the Fed’s ongoing Ponzi scheme to bail Wall Street out of the destructive subprime decisions that sank the economy in 2008. Bernanke’s latest Ponzi scheme will soon backfire, this time bringing down the economy again, further reducing the retirement savings of America’s 95 million investors.

How Bernanke hypnotized the president:

When Obama reappointed Bernanke, “Black Swan” author Nassim Nicholas Taleb was “stunned” by Obama’s failure to “change” the direction of America’s misguided monetary policies. I called Bernanke’s reappointment “Obama’s biggest domestic policy blunder … Obama’s black swan.”

Unfortunately Bernanke is just one of Obama’s many capitulations to the failed Reaganomics of the past generation.

So here we are on Election Day stuck with the failures of the Bush-Paulson team, aggravated by the failing of their replacements, Obama, Summers, Geithner and Bernanke. Two failed teams that set the stage for the GOP’s lethal return and the creation of the Tea Party, a new team high on hollow rhetoric with no interest in compromising.

Warning, “gridlock” is the sole policy-making rule in Washington for the next two years.

The bigger problem will arrieve in 2012, when Obama is most certainly replaced with someone who actually respects Bernanke.

And beyond: Because odds are Obama will be replaced by an ultra-conservative president whose brain will be driven by the discredited ideologies of Milton Friedman, Ayn Rand and Reaganomics … a political scenario guaranteed to trigger another, bigger economic meltdown that will push America into a long Japan-style recession.

Gross and Grantham's take on the biggest ponzi scheme ever created.

Today we have two of America’s most respected investment managers angry and worried about Bernanke’s irrational behavior: One of them is Bill Gross, founder and director at bond powerhouse Pimco, managers of $1.2 trillion of assets. His warnings about Bernanke’s dangerous meddling were shared by Jeremy Grantham GMO chief investment strategist, managers of $95 billion in retirement assets.

The Fed’s plan to “buy government bonds, intending to lower interest rates and stimulate demand won’t work, Gross and Grantham say in letters to investors: They actually make things worse.”

Gross says Bernanke’s plan is a “brazen Ponzi scheme.” Instead of a rational plan to pay for “maturing debt with receipts from financial sector creditors, the Fed” is acting as a speculator, a high-risk gambler.“The government will be its own investor, feeding its own Ponzi machine.” Bernanke’s extreme “meddling” is a disaster waiting to happen. QE2 a Ponzi scheme, says Pimco's Gross.

Grantham’s hostility toward Bernanke is oozing from in his Halloween letter to investors. In “Night of the Living Fed,” he warns that Bernanke’s plan is just a short-lived “adrenaline injection” that will backfire: “If I were a benevolent dictator, I would strip the Fed of its obligation to worry about the economy and ask it to limit its meddling to attempting to manage inflation … force it to swear off manipulating asset prices through artificially low rates and asymmetric promises of help in tough times. ... It would be a better, simpler, and less dangerous world.” Send in the vampires!

Who's to blame for having a madman in charge? Why, you are, America...

Gross’s outrage also oozed like the bloody bite of a vampire: “I call it a Sammy scheme, in honor of Uncle Sam and the politicians (as well as its citizens) who have brought us to this critical moment in time … It is not a Bernanke scheme … It is a Sammy scheme. You and I and the politicians that we elect every two years ... deserve all the blame.”

Yes, you and I are to blame, not “them” … we voted for Reagan, Clinton, Bush, then Obama … we let them pick the Paulsons, Cheneys, Geithners and Summers, addicts who believe in living high on borrowed money … we created China to replace us as the world’s next superpower … we created the Tea Party ... we are to blame for appointing a Supreme Court that’s unleashed billions destroying democracy, from within … we are to blame for an insatiable Wall Street that stole trillions from the Treasury in 2008 and keeps stealing in Wall Street’s derivatives casino ... and in these midterm elections, we’ll vote to make things even worse … then we’ll do it again in 2012.

Yes, we will … you and me … we will keep doing it … setting up the mother-of-all-meltdowns. And like all addicts, we just don’t get it, can’t stop our self-destructive behavior

Gross is right, don’t blame “them.” We’re to blame for what’s happening … we are responsible … you and me, we’re doing this to ourselves … we are killing the golden goose.

Yet the good old partisan bickering will never end: so predictable is human stupidity and the attraction of the "us against them" model. Which is why the only good trade these days is going long unrestricted one way tickets to a place warm and sunny (preferably in the one carrier that doesn't have more than 5x adjusted debt/EBITDAR). As for America, the vampires have, unfortunately, taken over.

 

 


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Tue, 11/02/2010 - 12:43 | Link to Comment Cortez
Cortez's picture

My local Burger King franchise went out of business as of yesterday.  A sign of the "recovery"?  Of course, QE2 will save America.

Tue, 11/02/2010 - 12:56 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

More likely a sign of falling cardiac arrest deaths in your town. Which came first, the Whopper or the angioplasty?

Tue, 11/02/2010 - 13:12 | Link to Comment Cortez
Cortez's picture

1. Whopper consumption

2. unemployment

3. improvement in health from Whopper affordability issues and starting a vegetable garden.

4. Angio not needed.

Tue, 11/02/2010 - 15:59 | Link to Comment Temporalist
Temporalist's picture

Just wait until they tax your garden or forbid you to grow one without a license and arrest you if you don't have one. 

I'm waiting for them to prohibit herb gardens on windowsills.

Legislating morality is a huge problem.  Who cares if someone wants to be obese and kill themselves with food?  Making bad choices about your health should not be illegal any more than choosing to eat fugu or take prescription meds or not.  I know way more people on "legal" meds that use their "problem" as a way out; a pity party poor me cop-out.  Some people prefer to jog, some sit. 

What if you are a horizontal person in a vertical world?   Is that so wrong?

Don't tell me what to eat and I won't tell you to mind your own business.  I don't suck off the system and I take responsibility for myself so why should anyone give a shit about what I do.  I want to enjoy my short life and I don't need advice about how to spend my time...it is my time afterall.

Tue, 11/02/2010 - 19:22 | Link to Comment Minion
Minion's picture

Tell me about it.  I've been thinking of starting up a company that shows farmers how to grow and process their own Biodiesel.  I can only imagine the Gman's response to giving the little guy a way to bypass his fuel racket......  but if they're serious about carbon credits, that could balance it out. 

Wed, 11/03/2010 - 12:51 | Link to Comment Temporalist
Temporalist's picture

At least one person I've heard about was contacted by the IRS for tax evasion for not declaring his use of biodiesel (svo).  Imagine the govt. actually allowing innovation, new technology, even welcoming something like alternative fuel (which they essentially spent billions on for the DoE) and yet they threaten citizens with jail for using their own alternative fuel source.

It goes against corporate interest just like electrical cars have, and competing currency, and cross state insurance, and freedom.

Tue, 11/02/2010 - 13:23 | Link to Comment xenophobe51
xenophobe51's picture

Dude. It's desperate out there.

Tue, 11/02/2010 - 13:40 | Link to Comment whatsinaname
whatsinaname's picture

dailyjobcuts.com shows plenty of folks shutting down

Tue, 11/02/2010 - 13:52 | Link to Comment hambone
hambone's picture

Anybody know what the math looks like for this new QE2?

At present we have POMO's about 10 trading days a month for $25b ($2.5B each roughly 10x month). 

QE2 is proposing $100B'ish a month (20x's a month @ $5B each)

Total to maintain Fed balance sheet and put QE2 in effect $125B month? or $6.125B daily?

Bueller?

Tue, 11/02/2010 - 15:13 | Link to Comment Janice
Janice's picture

QE2.....proof that size does matter....but velocity can be stimulating.

Tue, 11/02/2010 - 12:43 | Link to Comment NOTW777
NOTW777's picture

I am not to blame.  I can tell the difference between right and wrong.

to continue to argue that all politics and politians are the same is worse than what bernanke is doing

Tue, 11/02/2010 - 13:03 | Link to Comment Rasna
Rasna's picture

to continue to argue that all politics and politians are the same is worse than what bernanke is doing

OK, a small concession... MOST politics and MOST politicians are the same... The ones who get it can be counted on 2 hands.

Tue, 11/02/2010 - 13:07 | Link to Comment NOTW777
NOTW777's picture

i agree that many are corrupt and many on both sides are terrible but I'm not so lazy and depairing to, in sloppy fashion argue they are all identical and there is no difference.

Tue, 11/02/2010 - 13:14 | Link to Comment Sean7k
Sean7k's picture

What a piece of flaming crapola. However, I digress. Let's look at what is being said in this delightful piece of propaganda:

1. Bernanke doesn't know what he's doing. This is Japan all over again. How about, Bernanke knows exactly what he's doing. Have you looked at what is happening to the middle class of Japan? Lower and lower wages. Wealth transfer. Wealth accumulation within the upper 1%. Politicians taking the blame while central bankers continue to gut the economy for their own benefit. The FED wants to gut America.

2. It isn't the FED, it's the politicians  fault because they won't reign in the bankers. How do you reign in someone who owns you lock, stock and barrel and who has paid you to be their fall guys? The politicians do not run the FED, it is the other way around. Who owns the gold in Ft Knox? The NYFRB. How is that audit coming or the request for information to Bloomberg? Who else can increase your taxes to the degree it is impossible to ever pay them without being subject to a vote by the people?

3. This is the kicker. It's our fault, because we did not pay attention and require good government. We voted them in, so it's our fault. In light that both parties are run by the same corporations and that party machinery dictates who gets to be a candidate- perhaps it is fair to say we were voting for tweedledumb and tweetlespree. Constantly gamed by propaganda, false flag operations, media mind games developed at the Aspen Institute and Rand. The average American cannot be expected to recognize this level of mind control- heck most experts are incapable. 

The people who manage our population are brilliant. They have resources beyond our understanding. They rarely make mistakes. They are so cavalier as to brag about it(see David Rockefeller, Henry Kissinger or Zbignew Bresinski's comments). They control every major corporation, government and media outlet in the world. 

We have only one thing in our favor: numbers. As it has always been, the eternal battle between ability to control versus numbers. 

Paul Farrel is a sycophant, Warren Buffet is a toady, Bill Gross is an actor. They all have a part to play in the desemination of propaganda. It is up to us to educate.

 

Tue, 11/02/2010 - 13:20 | Link to Comment NOTW777
NOTW777's picture

dont you just love "experts" and gurus who expose their own faulty thinking and then conclude, collectively that is OUR fault

Tue, 11/02/2010 - 13:28 | Link to Comment Sean7k
Sean7k's picture

+++++ it's a living I guess...

Tue, 11/02/2010 - 13:35 | Link to Comment SheepDog-One
SheepDog-One's picture

Dyin' aint much of a livin, son.

Tue, 11/02/2010 - 16:14 | Link to Comment RockyRacoon
RockyRacoon's picture

If Bill Gross says this is MY fault then it's a given that it's NOT my fault.   He is a very nice contrary indicator.  Makes things much simpler.

Tue, 11/02/2010 - 14:38 | Link to Comment macholatte
macholatte's picture

 

What a piece of flaming crapola. However, I digress. Let's look at what is being said in this delightful piece of propaganda:

 Thanks. I could agree more, but I won't. You were bordering on eloquent.

 

Democracy passes into despotism.
Plato

Tue, 11/02/2010 - 14:36 | Link to Comment DaveyJones
DaveyJones's picture

"It's our fault, because we did not pay attention and require good government. We voted them in, so it's our fault."

I know, I feel the same way about my date rapist. I mean, I'm the one who let him in the door.

Tue, 11/02/2010 - 16:33 | Link to Comment Walter_Sobchak
Walter_Sobchak's picture

Exactly, trust no one.

Tue, 11/02/2010 - 15:01 | Link to Comment Ferrari
Ferrari's picture

I completely agree with you. What are our options? Going anti-corporate, I voted for Nader in 2000. Do I feeel proud about that? Not really. If Obama proves one thing, it's that the whole system is bought. If anyone thinks that any other candidate in '08 would have given us Glass-Steagal, they're delusional.

Tue, 11/02/2010 - 16:29 | Link to Comment Sean7k
Sean7k's picture

What are our options? This is the difficult question. It is easy to say revolution, unless you have a family to care for or live in an area that would be difficult to survive in(urban). This is not a question to be cavalier about. 

Still, to do nothing is not much of an option either. 

Since I do not claim to have this answer- I will suggest what I am doing.

I have taken myself out of the debt system. I own assets. I keep as little money in FRN's as possible. This includes PM's, foreign currency and foreign investments (yes, I recognize central banks are international in their organization, but I am subject to the rule of the dollar) I have a farm and the ability to grow my own food, supply my own water and stocks of materials. I have a library of volumes on every necessary subject I can think of- and I have read most of them. I have real skills. I know my neighbors and work to create a support community. I try to educate and expose the lies we are told. Like many on this site do tirelessly- Thank you Tyler and the many Contributors here. I am ready to defend America from her enemies, tragically, they are our rulers.

This will not work for everyone. I recognize my quality of life will be based on a new set of standards and those standards will not appeal to everyone. 

I would love my government, but all governments seek to subjugate their people. The problem is government at all. I do love the American people ( and foreign ones I have met in distant lands as well) and that will have to do. 

I think you have to find something that allows you to be at peace with yourself and your surroundings, recognizing that your surroundings may not always be at peace with you. While I am sure many here can tear my answer apart, so far, it is what has worked for me. I wish you all the best.

Tue, 11/02/2010 - 15:05 | Link to Comment Apocalypse Now
Apocalypse Now's picture

Nice articulation of the big picture.

I find it sad when people of inferior IQ go on about how so and so in banking, the fed, or big corporations is so stupid.  The fact that they have established monopolies and funded/bribed politicians to benefit those monopolies would indicate that those individuals are bright, not dumb individually.

Where we collectively fall down is when it becomes everyone for themselves to the point that jobs are exported or replaced with computers so that we gut the buying power of the consumer (70% of the economy).  Short term gains that benefit the corporations and executive bonuses, but over the long term this happens > higher unemployment > less credit and disposable income > less purchases & lower prices > more layoffs and job losses with less purchases and lower prices > and the cycle continues in a self-reinforcing loop.  This is called a death spiral and the question remains what can break us out of that loop?  Small businesses are where jobs have been added, but the system doesn't work for small business because they are not big enough to give campaign donations to fund politicians - so politicians don't work for them.  Nobody of significant power in government has been able to change tax and tariff strategies to stimulate the economy.  The CFR represents big corporations and it is too powerful, there is no balance because of corrupt megalomaniacs. 

All the fed money just goes into the big banks (their owners) and sits there, but we must consider intent and if this is intentional.  Most of the gains on the P&L's have been from reduced interest payments as corporations have 50/50 short term to long term debt typically and job cuts.  By stimulating inflation, input costs will go up but with no final demand increases (jobs, jobs, jobs, jobs, jobs, jobs, jobs) that will just cut margins.  What is even worse is that with zero interest, savers (CONSUMERS) have no yield with which to use to purchase or consume.  To make matters even worse, the free money at low interest is being used for M&A - that is a net loser for jobs, we could eventually have one diversified corporation in the end with 5 million workers and 300 million unemployed workers - ruthlessly efficient but not very stable structurally.

It's a takeover, how hard is it to understand that their interest(s) are not our interests.

Our problem is a crisis of confidence due to corruption.  Politicians will be squeezed between corporate interests (bribes and future campaigns) versus the majority of constituents ($$'s versus #'s).  I wonder what JFK meant by covet means?

Tue, 11/02/2010 - 15:49 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

The sad thing is that the politicians are cheaper than a Thai hooker, relatively speaking of course.

Tue, 11/02/2010 - 15:50 | Link to Comment hambone
hambone's picture

+ dirtier!

What does that say 'bout those who elect, re-elect these folks?

Tue, 11/02/2010 - 15:58 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

No disrespect intended for Thai hookers.

Tue, 11/02/2010 - 19:27 | Link to Comment DosZap
DosZap's picture

Flashback,to our beginnings.

Do we get it WHY the Founders wanted NO FRIGGING Central BANK?,

But,we are so much more intelligent than they.

Tue, 11/02/2010 - 14:41 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Not sure why you were junked. It's TROLL CITY here now though.

Many politicians do not have the background to understand what Bernanke is doing. But they have no problem acting as though they do. ALL politicians are sociopathic narcisists.  Ask any shrink and they will confirm.

 

Tue, 11/02/2010 - 19:29 | Link to Comment DosZap
DosZap's picture

 ALL politicians are sociopathic narcisists

 

And what are the Banksters then?.

Tue, 11/02/2010 - 12:43 | Link to Comment redpill
redpill's picture

The sad irony is that people think the elections today are going to change any of this.

Tue, 11/02/2010 - 12:46 | Link to Comment Azannoth
Azannoth's picture

There are certain 'economic' indicators that no fool can ignore like i.e. an empty stomach

Tue, 11/02/2010 - 15:43 | Link to Comment matt5hansen
matt5hansen's picture

Einstein said, "An empty stomach is not a good political advisor".  If this is true, millions of Americans will make more poor decisions when they go to the polls.

Tue, 11/02/2010 - 13:00 | Link to Comment chet
chet's picture

I've just got a feeling the market ends up negative tomorrow.  Election and QE priced in.  Can't see what the big upside surprise would be.

Tue, 11/02/2010 - 13:37 | Link to Comment SheepDog-One
SheepDog-One's picture

There sure has been a ton baked into this smelly cake based upon nothin!

Tue, 11/02/2010 - 13:04 | Link to Comment NOTW777
NOTW777's picture

well farrel believes obama is the same as reagan

and he "respects" gross and buffet

I dont need to listen such advice

Tue, 11/02/2010 - 14:36 | Link to Comment Uncle Remus
Uncle Remus's picture

ballots->barricades->bullets

It's a process.

Tue, 11/02/2010 - 12:44 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Banana Ben is just plain insane. He's a psychopath. Like Al Maestro Greenspan, Volcker, etc. These men should be put on trial for crimes against humanity.

Tue, 11/02/2010 - 13:02 | Link to Comment janchup
janchup's picture

Volker is by no means a psychopath; he saved the damn country 30 years ago.

Tue, 11/02/2010 - 13:13 | Link to Comment zaknick
zaknick's picture

No, he just plays ball with the criminals. He saved the country? For what? Bankster heaven? He saved their system not the American people's economy.

Tue, 11/02/2010 - 14:45 | Link to Comment Ripped Chunk
Ripped Chunk's picture

The Volker period was just another installment in the great experiment the puppet masters like to run on us inferior beings. Still confusing as to why they have allowed such a liberal level of sales of firearms for the past 20 years. I guess they think they have a handle on the situation.......................

Tue, 11/02/2010 - 15:13 | Link to Comment Cortez
Cortez's picture

Can't buy a machinegun at Gander Mtn. but the gov't has them.

Tue, 11/02/2010 - 15:16 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Re: « why they have allowed such a liberal level of sales of firearms for the past 20 years »

Interesting bit of political psychology by the US rulers, that I observed there back in the 90s & early 00 decade. Seems to me they figured out two things:

(a) Tens of millions of working-class US white males, robbed of careers and livelihoods and assets and families, totally impoverished, would still imagine they were 'free' and support the bankster system, if they still had some guns and ammo; and

(b) Most people can be intimidated psychologically by the media, the legal system and cop swat-team 'shows of force', even if they personally own guns.

So the US rulers realised they could confiscate guns as the near-last thing they do, instead of the first ... they will probably confiscate the guns same time as the US dictators go around confiscating the gold again, as they wrap things up.

Tue, 11/02/2010 - 19:32 | Link to Comment Minion
Minion's picture

I might be naive, but I'm sure they have weapons we don't even know about that make the gun ownership issue a non issue.  Active Denial, for example:

http://en.wikipedia.org/wiki/Active_Denial_System

From someone who has spent a couple years at a "defense" contractor, I wouldn't rule out the possibility of other directed energy weapons we don't know about, already in existence.  You'd be amazed to see some of the experiments with EM radiation on the brain they did in the 50s.  Hearing voices is only the beginning..........

Tue, 11/02/2010 - 12:45 | Link to Comment NOTW777
NOTW777's picture

is farrel at the polls today voting for every left wing politican and cause and then writing stuff like this when he gets back?

no different than gross or buffet - complain about whats wrong and then do the exact opposite

Tue, 11/02/2010 - 12:46 | Link to Comment Bearster
Bearster's picture

More angry left.  Bernanke is trying to fix the problems cause by the Tea Party??

Regardless of what you think of the Tea Party (I think they are a tiny, small, almost insignificant change in the right direction) there is one thing we all ought to be able to agree on:

  The Tea Party Is Not In Power Today

I asked on another thread, is this what passes for critical thinking on the angry left??

Tue, 11/02/2010 - 12:50 | Link to Comment Tyler Durden
Tyler Durden's picture

"Yet the good old partisan bickering will never end: so predictable is
human stupidity and the attraction of the "us against them" model.
"

Thanks for proving the point

Tue, 11/02/2010 - 12:57 | Link to Comment ZakuKommander
ZakuKommander's picture

Unbridled partisanship -- particularly on lightweight issues -- just plays into the hands of TPTB.  Divide and conquer/placate/distract the populace, and things remain the same at the top of the heap.

Tue, 11/02/2010 - 13:13 | Link to Comment NOTW777
NOTW777's picture

tyler, what are you proving???? you are fervently partisan (IMO - in a good way.) is that bad?

the lazy argument that all politicans are the same is no different than arguing you and krugman are the same.  you believe in your position and expose financial corruption. the mere fact that there are those who are the polar opposite of you does not make them right.  could someone could review your debate and argue - they are all the same?

people complain about "partisan" politics but offer no real world alternative.

Tue, 11/02/2010 - 13:16 | Link to Comment zaknick
zaknick's picture

Dude, you're another one of them deep into the left-right bankster imposed koolaid. Get a grip!

Tue, 11/02/2010 - 13:22 | Link to Comment NOTW777
NOTW777's picture

get discernment

Tue, 11/02/2010 - 13:28 | Link to Comment zaknick
zaknick's picture

Here's the koolaid piss.

 

http://www.zerohedge.com/users/notw777/track

 

I think the one who needs to discern whose ideas are manipulating their thinking is you.

 

the end

Tue, 11/02/2010 - 13:32 | Link to Comment NOTW777
NOTW777's picture

do you need a life vest?

Tue, 11/02/2010 - 13:39 | Link to Comment SheepDog-One
SheepDog-One's picture

Theres a BIG difference between being 'partisan' and being FUKTARDED!!

Tue, 11/02/2010 - 13:15 | Link to Comment zaknick
zaknick's picture

A Durden uppercut to the jaw and he's out!

Tue, 11/02/2010 - 13:21 | Link to Comment Bearster
Bearster's picture

Tyler, with all due respect the only point I made was that you cannot say that Bernanke is trying to fix the problems of "...the failures of Congress, Obama and the GOP Tea Party..."

The Tea Party is not in charge or even in government yet, and therefore our problems cannot be laid at their feet.

My comment is not "partisan bickering" but a point of fact.

Tue, 11/02/2010 - 13:42 | Link to Comment SheepDog-One
SheepDog-One's picture

'Tea Party'? WTF are you talking about? 'Tea Party' has never been in charge of ANYTHING!

Tue, 11/02/2010 - 14:45 | Link to Comment DaveyJones
DaveyJones's picture

We already have a two headed monster, why would we want a three? - J Ventura.    

Tue, 11/02/2010 - 19:37 | Link to Comment DosZap
DosZap's picture

We already have a two headed monster, why would we want a three? - J Ventura

 

To keep the other two honest.Or ,at least knowing they are not the only game in town,the GOP is (they do not know it yet),being co-opted by the TP.

The RINOS, and Moderates in there are not going to tell the TP winners what,when or how to do a damn thing.

There is a new Sherriff coming to town, and IF we have time, some things are going to get righted.

 

Tue, 11/02/2010 - 13:29 | Link to Comment samsara
samsara's picture

TD,  Yes the point is proven every single day.  (GREAT job here btw.  It's THE site)

A small quote by someone who knew.

-----------------

Carroll Quiqley on the Two Party System   "The argument that the two parties should represent opposed ideals and policies, one perhaps of the Right, and the other of the Left, is a foolish idea acceptable only to doctrinaire and academic thinkers. Instead, the two parties should be almost identical, so that the American people can 'throw the rascals out' at any election without leading to any profound or extensive shifts in policy... But either party in office becomes in time corrupt, tired, unenterprising, and vigorless. Then it should be possible to replace it, every four years if necessary, by the other party, which will be none of these things but will still pursue, with new vigor, approximately the same policies". -- Carroll Quigley, "Tragedy and Hope", 1966, p. 1247-48
Tue, 11/02/2010 - 14:52 | Link to Comment Ripped Chunk
Ripped Chunk's picture

Fascinating the number of seemingly intelligent people that still believe we have a 2 party system and a choice. Mind boggling really.

Carlin:

\http://www.youtube.com/watch?v=hYIC0eZYEtI&feature=related

http://www.youtube.com/watch?v=hWiBt-pqp0E&feature=related

Tue, 11/02/2010 - 18:00 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

Carlin is a fucking prophet.

Tue, 11/02/2010 - 14:54 | Link to Comment Miss Expectations
Miss Expectations's picture

Brad Pitt & Robert Duvall...the Hatfields v. McCoys

"It involved accusations, fisticuffs, mass murdering and ‘Romeo & Juliet’ style affairs between the bickering families. And apparently it all started over a disagreement over the ownership of a pig!"

http://www.obsessedwithfilm.com/movie-news/brad-pitt-robert-duvall-eyein...

Tue, 11/02/2010 - 12:51 | Link to Comment SpeakerFTD
SpeakerFTD's picture

So when Faber says sell bonds, buy stocks, please listen.

Hmm, that's not how I read his comments.  I read them as get out of everything.  Just because stocks are less of a disaster than bonds, doesn't make them a buy.

 

Tue, 11/02/2010 - 12:54 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

Faber talks about stocks in a swing trading way, not a 'stock-picking' long-term way. The only thing which matters in trading is nominal value.

Tue, 11/02/2010 - 13:22 | Link to Comment SpeakerFTD
SpeakerFTD's picture

Agreed.  But he seems to like the dollar too.

Tue, 11/02/2010 - 12:55 | Link to Comment 99er
99er's picture

So War It Is

QE2 risks currency wars and the end of dollar hegemony

http://www.telegraph.co.uk/finance/currency/8103462/QE2-risks-currency-w...

Tue, 11/02/2010 - 12:55 | Link to Comment buzzsaw99
buzzsaw99's picture

Bernanke is Gross & Buffett's bitch. The only reason Buffett wants us to sell our bonds is so we can buy pos stocks. They got theirs, screw everyone else. May they all rot in Hell.

Tue, 11/02/2010 - 14:44 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Good point.  They are all self-serving.

Tue, 11/02/2010 - 15:33 | Link to Comment buzzsaw99
buzzsaw99's picture

It's funny how few people see it. Those two clowns (buffett & gross) "criticize" bernanke, then turn around and suggest that we (sheeple) do exactly what bernanke wants, i.e., that we buy stocks. They are all jawboning in the same direction, screw that.

Tue, 11/02/2010 - 15:37 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

I've got a new financial mantra: "Puts For The Long Run"

Tue, 11/02/2010 - 16:27 | Link to Comment Non Passaran
Non Passaran's picture

So are you gonna buy bonds, then?

Tue, 11/02/2010 - 16:50 | Link to Comment buzzsaw99
buzzsaw99's picture

Yes, I will continue to buy bonds until the 10y is below 2% then I will go to cash. I can't go long the market and can't short it without getting killed so I really have no choice.

Tue, 11/02/2010 - 12:56 | Link to Comment jus_lite_reading
jus_lite_reading's picture

All political parties are to blame. That being said, Bernanke's plan seems that he is bent on destruction of the global system.

Tue, 11/02/2010 - 12:57 | Link to Comment wiskeyrunner
wiskeyrunner's picture

This is no surprise for heavens sake this man Bernanke said he would drop dollars from the sky before all this stuff happened.

Tue, 11/02/2010 - 12:59 | Link to Comment knukles
knukles's picture

Opppps! Major typo in tag-line.

Title reads:   "Bernanke Plan A Disaster"
Correction:    "Bernanke Plain Disiaster" 

Tue, 11/02/2010 - 13:49 | Link to Comment prophet
prophet's picture

To be followed by:

"Bernanke Plan B Disaster"

Tue, 11/02/2010 - 22:38 | Link to Comment IMACOINNUT
IMACOINNUT's picture

"Bernanke Planned Disaster"

Tue, 11/02/2010 - 13:00 | Link to Comment janchup
janchup's picture

Can't Buffet just call up Mr. O and tell him Bernanke is a disaster or does Geithner have all the incoming calls screened and blocked as necessary?

Tue, 11/02/2010 - 15:25 | Link to Comment Assetman
Assetman's picture

Everything goes to Dudley at the NY Fed before it hits Ben.  Geither left there two years ago.

Keep up, dude. :0

Tue, 11/02/2010 - 13:02 | Link to Comment chet
chet's picture

Seems like increasingly vocal opposition to QE in media and within the Fed.  Any chance Bernanke listens, or gets religion during deliberations today/tomorrow?

Tue, 11/02/2010 - 13:11 | Link to Comment centerline
centerline's picture

does he have a choice?  is he really the madman?  hard to tell anymore what is sane, who is pulling the levers, etc.  I think the only constant here is that absent some sort of rogue input, the current course is on autopilot and aimed directly at the center of the sun.

Tue, 11/02/2010 - 13:11 | Link to Comment buzzsaw99
buzzsaw99's picture

Everything Gross and Buffett say in the press is for public consumption. They are all on the same page in private. The only thing they want is your money.

Tue, 11/02/2010 - 13:03 | Link to Comment Jay the savage
Jay the savage's picture

Do you ever feel like rats on a sinking ship who are disscusing the price of grain?

Tue, 11/02/2010 - 13:25 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

That's a bingo!

Tue, 11/02/2010 - 13:44 | Link to Comment SheepDog-One
SheepDog-One's picture

Yep!

Tue, 11/02/2010 - 13:07 | Link to Comment TradingJoe
TradingJoe's picture

SPY Puts and Buckle Up! You will not believe what's going to happen tomorrow!

Tue, 11/02/2010 - 13:18 | Link to Comment Chicago bear
Chicago bear's picture

Dec SPY puts - check

PMs- Check

Option on agr land 120 acres - check

Add to grocery inventories - check

Secure perimeter - check

Now where are all those like-minded people?

Tue, 11/02/2010 - 15:26 | Link to Comment Assetman
Assetman's picture

What's going to happen tomorrow... all knowing one?

Tue, 11/02/2010 - 16:24 | Link to Comment RockyRacoon
RockyRacoon's picture

SPY Puts and Buckle Up! You will not believe what's going to happen tomorrow!

Thanks for nothing.  How can you have bragging rights when you didn't really brag about anything?

Tue, 11/02/2010 - 13:06 | Link to Comment Rasna
Rasna's picture

When Obama reappointed Bernanke, “Black Swan” author Nassim Nicholas Taleb was “stunned” by Obama’s failure to “change” the direction of America’s misguided monetary policies. I called Bernanke’s reappointment “Obama’s biggest domestic policy blunder … Obama’s black swan.”

Unfortunately Bernanke is just one of Obama’s many capitulations to the failed Reaganomics of the past generation.

Obama did what he was told to do... He is a sock puppet.

Tue, 11/02/2010 - 13:28 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

At least they were nice enough to give us an imported dress sock this time instead of the same ol' dirty athletic sock puppets we normally get.

Tue, 11/02/2010 - 13:31 | Link to Comment Sean7k
Sean7k's picture

LOL love it. Works on multiple levels.

Tue, 11/02/2010 - 21:06 | Link to Comment samsara
samsara's picture

He was picked;

"Senator Obama had a desire to do some meetings, others had a desire to meet with him tonight in a private way and that is what we are doing."  

Read the link and findout who he was meeting with. 

http://www.globalresearch.ca/index.php?context=viewArticle&code=20080609&articleId=9270

Oh, they talked with Mccain also...

http://www.guardian.co.uk/world/2008/apr/29/johnmccain.uselections2008

Tue, 11/02/2010 - 14:45 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

+++

Tue, 11/02/2010 - 13:09 | Link to Comment Cleanclog
Cleanclog's picture

As David Stockton said today, "Totally distorted market.  The $9 Trillion of Federal debt floats around the world in an entirely manipulated medicated market driven by Fed and other central banks."  And later, "We're flooding the market with US$s that no one wants.  Meant to be domestic stimulation but leaking out."  Brazil is pissed, Taiwan intervened last night, and we complain about China's manipulations and peg to our currency while we trash that same currency.  Sigh!

He concludes with "We're at a level of debt that we'll never get back to budget surplus. Ever"

Tue, 11/02/2010 - 13:10 | Link to Comment Aunty Christ
Aunty Christ's picture

QE2 is code language for TARP2. This is all about (re-)bailing out the insolvent US bank system; this won't do squat for capital investment/ employment.

Tue, 11/02/2010 - 13:12 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Ya know what, I'm changing my position on Bernanke's plan - just because all these jerks are against it.

How's that for contrarian?

Did they do anything to prevent the problems? No.

So let the monetization begin!

Tue, 11/02/2010 - 13:14 | Link to Comment Cortez
Cortez's picture

I heard that if you vote today you get a sticker!!!  Whoo Hooo!!!!!!!!!  What do you have to be under 9 to vote?

Tue, 11/02/2010 - 16:27 | Link to Comment RockyRacoon
RockyRacoon's picture

Yeah.  We've always gotten an "I voted" sticker with a U. S. flag motif.  I think it should read "Kick Me" and get it slapped on our back.

Tue, 11/02/2010 - 13:15 | Link to Comment Careless Whisper
Careless Whisper's picture

planned demolition.

globalists want a world currency. it's out in the open:

http://www.csmonitor.com/Business/The-Daily-Reckoning/2010/1028/Is-hard-...

 

Tue, 11/02/2010 - 13:46 | Link to Comment SheepDog-One
SheepDog-One's picture

Exactly, anyone analyzing all this with a bent on 'fixing the economy' misses the overall plan which is destruction of it all and Peonix up into 1 world govt, 1 world currency.

Tue, 11/02/2010 - 14:24 | Link to Comment MachoMan
MachoMan's picture

Can't get there without a neo fiat.  Carbon credits are dead.  Without some backing, neo fiat is dead.  Although that is their plan, it will not work and they'll be stuck with directly controlling us via the spoils from the wealth gap.  Not a bad plan B mind you...  just not as neat as world control.

Tue, 11/02/2010 - 13:19 | Link to Comment bgilliam83
bgilliam83's picture

No, the banks are to blame.  We don't have much of a choice when they own the media, own the democrats, own the republicans...yada yada.  Someone got paid to write this garbage? 

Tue, 11/02/2010 - 13:19 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

actually, if we do live in a kleptocracy, crony capitalistic or fascist state, and if our votes don't really count because the two parties are the same then the american public cannot be held resonsible for ben shalom.

it wasn't the public that outsourced the jobs and turned the usa into a service economy. nor did the public do lbo deals and fire the workers to pay for the deal. or allow millions of illegal aliens into the country, pushing onto the dole millions of americans etc etc ... btw, don't bore me with the meme that americans won't do the work that the aliens will: see states with low alien populations and look at the make up of the workforce.

also, most of outsourcing, deregulating, lbo'ing and illegal alien pushing (remember the proposed bartley amendment: there shall be open borders) came directly from the editorial pages of the wall street journal.

actually, most of the discussion is old hat. back in the day we used to debate in the bullpen staring at our green and black screen quotrons how long it would be before these policies would backfire.

the fed will be dissolved when there is concensus among the top 2-3% of the beautiful people that their ills are the direct result of the fed.

Tue, 11/02/2010 - 13:23 | Link to Comment bgilliam83
bgilliam83's picture

sounds about right.  Charlie Sheen 2012!!

Tue, 11/02/2010 - 14:15 | Link to Comment AnAnonymous
AnAnonymous's picture

it wasn't the public that outsourced the jobs and turned the usa into a service economy.

 

Well, well, that was the public that built up the framework and increased the pressures leading to outsourcing.

WS very likely pushed in the same direction and gave guidance.

But the general momentum was given by the public.

The whole US territory is shaped by the forces that led to outsourcing. And the public was actively engaged in concretizing them.

Dont buy the story that slavery was only the matter of few guys at the top. The majority of the US people supported the movement and got involved to maintain it.

Same with outsourcing. It is the result of US People's actions and support.

 

Tue, 11/02/2010 - 14:44 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

thanks for the clarification and analysis.

i now understand my wayward thinking. it was the manufacturing and assembly line workers these past 25 years that actually pushed to have their high wage jobs exported to china, for example, so they could pursue their dreams of adding value at mcdonalds. to give momentum to the offshoring movement they probably ran the lbo numbers after their shift and concluded that everybody would be a winner if the factory moved to china, chinese ag workers got the factory jobs at slave wages, the usa workers beat a hasty retreat to minimum wage service land and the moguls got a nice payday.

brilliant analysis. keep up the good work. i can learn a lot from deep thinkers like you.

Tue, 11/02/2010 - 14:59 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

I have been frantically looking for ANY Federal politician to pull the plug on the H1-B scam.  Ditto for anti-WTO candidates.  The animal doesn't exist (in my State) even though an easy majority would agree with me.  These are two items that all of the political patrons will not allowed touched.  Instead, they keep us bickering about abortion, gay rights, and other shit that the elites could really care less about.  Get a grip!

Tue, 11/02/2010 - 15:10 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

lucius, don't you understand? according to the anonymous poster on this mini-thread the public is 100% in favor of the H1-B scam and wto, which is why both still exist. the public has read the law(s), weighed the cost benefit analysis and conlcuded, all things being equal, that immigration scams benefit the average american and best be allowed to stand.

don't take my word for it though. ask the anonymous poster who pulled his information right out of his notes from his sociology 101 class that he/she took at the local community college.

Tue, 11/02/2010 - 15:18 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Oh, you're right.  If he said it, it must be true.  My bad.

Tue, 11/02/2010 - 13:20 | Link to Comment Babalooee
Babalooee's picture

shouldn't it be Obama's white swan?

Tue, 11/02/2010 - 13:21 | Link to Comment Flounder
Flounder's picture

So this means if UUP goes to $0, then a SPY position would be worth infinite dollars?

Tue, 11/02/2010 - 13:26 | Link to Comment SgtShaftoe
SgtShaftoe's picture

I stopped reading Paul Farrel in 2008 when he missed the point / boat then.  Looks like he still can't seem to wrap his mind around the actual reality of what's going on... Too little too late Paul. 

Instead of blaming the Monetarists, who, if you actually read their work, are pretty close to the mark, perhaps we should be focusing the discredit where it is highly overdue: the Neo-Keynesians.  Reganomics was misguided, but for different reasons than Farrel seems to think.  Keynes himself is probably rolling in his grave for what is being done in his name.  It's sick, but I digress.  Paul would do well to really listen to what Faber is saying rather than taking his choice of quotes to fit his oversimplified worldview. 

 

Paul, you're about 2 years behind... better light a fire under your ass and catch up.  Now wipe the drool off your lip and REALLY READ the following, not just looking at the pretty pictures.

Fooled by Randomness - Taleb

The Black Swan - Taleb

Road to serfdom - Hayek

Anything written by Karl Popper

Money Mischief - Milton Friedman

When money dies - Ferguson

Dying of money - Parsson

This time is different - Reinhart and Rogoff

The new paradigm for financial markets - Soros

Everything else by Hayek

 

That ought to get you started. 

Tue, 11/02/2010 - 13:23 | Link to Comment Paul Bogdanich
Paul Bogdanich's picture

Oh this is going to be sooooo ugly.  Can't say why my spirits are so high today.  Maybe it's because I think the complete repudiation of the very idea of a ruling elite is a positive first step.  True replacing them with generally and sometimes abdjectly stupid people who can't even do arithmetic is a bad idea but at least it's a start.

Tue, 11/02/2010 - 14:57 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

rofl

Tue, 11/02/2010 - 13:34 | Link to Comment RatherBFlying
RatherBFlying's picture

Another rube self-identifies.

The nurses need to take the keyboard away from Farrell... he is way past writing anything effective.

Tue, 11/02/2010 - 13:36 | Link to Comment Crab Cake
Crab Cake's picture

It's been said before, but this is what insanity looks like. Humanity's societies and nations, ours in the US in particular, are sick and delusional, and our so called leaders are insane meglomaniacs.

I just want, I just need, a small honest life. Sometimes I feel I made a left turn at Albequrqe to end up in this reality. It's like there is a hole in many a man's heart that cannot be filled. More power, more money, more recognirion, more, more, more. I truly don't understand. People talk like oil running out is the end of the world? What's wrong with a slower world and horses? What's wrong with just being alive, with just being? Easy come, easy go.

People talk like the end of the world is coming, and that suits me fine; because this world we are living in sucks anyway.

Tue, 11/02/2010 - 14:48 | Link to Comment Things that go bump
Things that go bump's picture

The problem with that slower world and horses is what happens en route.  That world can't support our current population so somewhere between here and that slower world is a great die-off. 

Tue, 11/02/2010 - 15:06 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Buffet is into cho-chos now

Tue, 11/02/2010 - 16:52 | Link to Comment Non Passaran
Non Passaran's picture

Where does it say that the current population can't be supported?

Tue, 11/02/2010 - 18:35 | Link to Comment goldsaver
goldsaver's picture

The reality is that without a working monetary system (ours is totally disfunctional, but still a semblance of a working one), the cost of energy and imported goods would make it improbable to continue mass production. We import 60% of our energy. Activities like mass farming require petroleum products to run machinery. Medicine production and health care in general is highly dependent on imported goods. Our society in general survives on a "just in time" goods delivery system. What would happen if diesel went to $20 a gallon? $50? $100? Or if supermarkets were unable to stock the shelves? Or if unemployment hit 20-30%. True poverty is not a government unemployment check for 99 weeks. Poverty is dirt biscuits and shoe sole soup.  Look at a city like Las Vegas. Everything is imported. Even water. How long do you think that LV would last without support systems? Think Argentina best case, Haiti worst case.

Add to that the rioting and high crime rates that will come from hunger, malice and anger. The loss of the thin societal veil that depends on the voluntary participation of most members (Yes, violence is needed to rein in those few that do not comply, but the amount is relatively minor). Think Srebenika, Gorazde or Somalia.

Our current socio economic system can not support the number of people in it without inexpensive energy and food. By default, a die off of the weak and unskilled would occur. True skills do not come from a liberal arts degree in women's studies or public relations. They come from years at a farm or dairy. From building trades and specialized critical skills (doctors, nurses, welders, mechanics,etc). Yes, local soup kitchens and government assistance will help. Until they don't.

 

Tue, 11/02/2010 - 15:13 | Link to Comment JohnG
JohnG's picture

Well stated, sir.

Tue, 11/02/2010 - 16:45 | Link to Comment Walter_Sobchak
Walter_Sobchak's picture

DITTO

Tue, 11/02/2010 - 13:34 | Link to Comment gwar5
gwar5's picture

Question: How is the dollar expected to go up long term with more monetization?

Tue, 11/02/2010 - 14:09 | Link to Comment barkingbill
barkingbill's picture

if risk assets go down instead of up as reaction to the FED actions. faber said something like that. that there is a possibility of a kind of panic/correction that could do the opposite of what most are expecting. im however skeptical. seems like the inflationary route is the one we are on almost without interruption. who knows. 

Tue, 11/02/2010 - 13:52 | Link to Comment Dagny Taggart
Dagny Taggart's picture

Or maybe... Bernanke is just focused on his resume. Maybe he's "banking" on a seat on the board for the new BIS fiat currency. All he needs to do is crash the US dollar before Obama is voted out or impeached, and he's a shoo-in. 

Tue, 11/02/2010 - 14:00 | Link to Comment usexpat
usexpat's picture

I love this website and think you all do a great job but I gotta tell you: I sure am a lot worse off financially for reading it...The market is up nearly another 100 points today..While we have been worrying and fretting all of these months, a lot of people have gotten rich. And I am certainly not one of them...

Tue, 11/02/2010 - 14:04 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

If you worried, you should have bought the market. Bad economy = QE / low rates = high indices.

ZH has never recommended to short stocks. But it has recommended to buy PMs, and this is not so bad so far, is it?

Tue, 11/02/2010 - 14:12 | Link to Comment usexpat
usexpat's picture

Cut me a break Ponzi. With all of this doom and gloom here - which I think is justified and warranted - you can not seriously represent that we are all buying stocks..and thanks for the little lesson...Very convenient hindsight.

Tue, 11/02/2010 - 14:36 | Link to Comment Hubbs
Hubbs's picture

This is one day I would discount anything the market does, especially an upaward move on election day as a last and best opportunity to soothe the anxiety/anger of the retail investors.

Tue, 11/02/2010 - 14:36 | Link to Comment Hubbs
Hubbs's picture

This is one day I would discount anything the market does, especially an upaward move on election day as a last and best opportunity to soothe the anxiety/anger of the retail investors.

Tue, 11/02/2010 - 14:07 | Link to Comment FreedomGuy
FreedomGuy's picture

Did I miss something...like a solution in this article? The article trashes pretty much all political and economic theory. It's gloomy but I do believe there is a solution...not that it will get done.

In general, I err on the side of freedom. I also don't blame "the people" directly. Most people just want to go to work and do the best they can for themselves. They cannot be and are not news-economic-financial junkies like most of us here. If there is one huge mistake "we the people" made... it was giving unlimited power to our government, even a democratically elected one. Actually, we didn't give it as much as we blindly allowed "them" to give it to themselves through almost a hundred years  or more of increasing authority and beaurocracies (and now "Czars") to run more of everything, particularly the economy.

So we have an Imperial Congress that can make laws on anything and everything and violate contracts. This is allowed by a Supreme Court that says the U.S. Constitution now says that the government can do most anything it wants, primarily through the interstate commerce clause. To the average schmuck it may look like the Constitution limits government and guarantees liberty/individual rights, but to the well trained eye of at least 5 of the Supremes it does not.

I think Jefferson said the natural flow of history is for governments to gain power and liberty to yield. He was a prophet. Our economy is a product of a small oligarchy of self interested geniuses who assert they can manage an economy for the good of all. Do you laugh or barf?

Tue, 11/02/2010 - 14:15 | Link to Comment barkingbill
barkingbill's picture

but bear in mind that although the "government" is doing many horrible things today, and are "imperial" as you say. their empire is one wholeheartedly supported by big money corporations who make money out of the whole thing. so the usual left right squable about is big business good and government bad, or vice versa, is really not useful today. big business and government are both working together, and the results are horrible and ant-democratic. (against the republic as well. lol)

Tue, 11/02/2010 - 15:05 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.
-Benito Mussolini

Tue, 11/02/2010 - 15:41 | Link to Comment kayl
kayl's picture

@FreedomGuy

The sad truth is that we are living in a feudalistic society today, currently, and as we speak. The Federal Reserve, the IRS, banks, and governmental agencies all the way down to the city level are part of this power.

Claim your duties and responsibilities Nunc Pro Tunc from the date of your birth. And rebut the assumption in writing that someone else has a legal title to your accounts and your estate. Look up the words apply, register, application, fiduciary in Black's Law Dictionary. They all imply we don't own ourselves and everything we worked for.

The Real Estate Fiasco

The words "fee simple" are related to the word fief. It is a gift of land from a potentate to a Lord in exchange for rents and services rendered. The Trustee of the potentate governs the property. The same customs of law are inherent in the real estate contract today.

Voting

The Voter's Registration is a filing of giving up your duties to make decisions within the body politic.

For the longest time I couldn't understand this cryptic message "as above so below." It just means the feudalistic system is coming into view for all people.

Tue, 11/02/2010 - 14:14 | Link to Comment Quinvarius
Quinvarius's picture

No QE, no banks.  These guys know that.  They are just worried that some of the printing press money might hit the public.  They want to the Fed to continue its free money backdoor bailouts of the banking system while impoverishing the public.  They feel that is the best way for them to stay rich.

Tue, 11/02/2010 - 15:22 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

Know QE, know banks

Tue, 11/02/2010 - 14:21 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Bernankie is manical.  With great intelligence comes madness.

Just the thought that rising Food and Energy prices will help a recovery is madness.  How will people be able to increase any of their purchasing power with huge increases in Food and Energy.  Not to mention less spending power of their Dollar and higher Taxes to pay for all of this printing.  How will it help Businesses with higher input costs?  The only people it helps are the Wall Street Bankers who will pay record bonuses.

Bernankie has become a reverse Robin Hood.  Steal from the Poor and give to the Rich.

Tue, 11/02/2010 - 14:24 | Link to Comment Tic tock
Tic tock's picture

I doubt the stock markjet is about QE2 anymore, I think it's all about assets held by the banks' - they are overextended - QE2 might provide ammunition to play with but there still isn't a chance they, or government finances, are going to come out of this intact...at the moment, the only card they have on the table is commodities and equity derivitives trading, other trades are a circle jerk, one way or another.

Congress is going to..cut treasury issuance.. dollars are going to be needed to buy foreign bonds, banks are going to have to sell assets - to who? The dynamic is: $100bn a month in Tier 1 capital, props up derivitive trading, keeps asset prices up, v. take Tier 1 reserves out of dollar and into rising currency SovX.

The focus shouldn't be about liquidity in the markets, or foreign GvB denominated in dollars, it should be about tax revenue and the interest rate and the resultant liquidity trap. Which is going to push aggregate demand nowhere. By pushing the interest rates down, the liquidity trap gets worse, this is the reserve currency, so it is exports inflation to places where there simply isn't the infrastructure to cope with it, or to come out of it. We're using a hammer to take out a screw. 

We have to let the banks fail, to take their losses with them. The resulting vacuum will push SovX bonds through the roof, looking for buyers. Pensions, with leverage of whatever they have left are natural buyers. Quiet, calm, perfect reset.

Tue, 11/02/2010 - 14:26 | Link to Comment Everybodys All ...
Everybodys All American's picture

Tyler I see the Tea Party directly as a result of Bernanke and Fed Policy. Heck Rick Santelli coined the term based on the foolish policy at the federal reserve. There would not be a Tea Party if it was not recognized that the GOP had made several poor decisions. Chief of which was appointing this ass Bernanke. If you will recall though his major opposition came from republicans. In specific I recall Sen. Jim Bunning saying at his reappointment that he never liked him as the choice and Bernanke had done nothing to change his mind.

Tue, 11/02/2010 - 15:20 | Link to Comment Lucius Corneliu...
Lucius Cornelius Sulla's picture

FNM and FRE bailouts (est.) 1Trillion.

Number of Americans: 300M

Number of Americans who pay income taxes: 150M

Average USA household size: 2.5 (approx.)

1T/150M = $6,666

$6,666 * 2.5 = $16,666

So, if you pay taxes, then your household will be paying about $16,666 to bailout banks who made a lot of money making loans to people they shouldn't have...plus interest (paid to the Chinese and Federal Reserve of course)!  And that is just FNM and FRE!

 

I'm not angry...I'm not angry...I'm not angry...ARGHHHHHHHH!!!!!!!!

I need a 12 step program or something...

 

Tue, 11/02/2010 - 16:33 | Link to Comment RockyRacoon
RockyRacoon's picture

Hi.  My name is Rocky, and I'm a blogaholic.

Tue, 11/02/2010 - 14:32 | Link to Comment notadouche
notadouche's picture

Boxer, Waters, Bush, Pelosi, Dodd, Frank, Obama, Bernanke, Paulson, Reid, Geithner, Clinton.   The American Hall of Shame.  I'm not sharing the blame on any of this.  I pay my mortgage on time, take care of my kids, teach them about the difference between right and wrong.  I'm the ball of yarn being batted around by these ubercats.  I do what I gotta do.  Screw this we're all to blame nonsense.  I didn't make the laws that protect the ruling class and political machines that run this country.  Those that want to have everyone share in the blame should look in the mirror and take their burden and not put it on "all of us to blame" bull shit.

Tue, 11/02/2010 - 15:54 | Link to Comment samsara
samsara's picture

Boxer, Waters, Bush, Pelosi, Dodd, Frank, Obama, Bernanke, Paulson, Reid, Geithner, Clinton......I'm the ball of yarn being batted around by these ubercats

Bush lying to go to war? 

Forget that one....

If we don't stop with the right vs left,  Rep vs Dem thingys,   we are never going to see that those arguments too were "Given" to us.

Those are false dichotomies.

It is, was, and will be a upper vs lower thing

respectfully jus sayin

Tue, 11/02/2010 - 14:33 | Link to Comment akat
akat's picture

 I don't think he is planning a disaster, although surely one could occur.  I think he is trying to engineer the same inflationary dollar value bleed that has been going on throughout his term and the term of Greenspam.  Surely, is hoping for and accelleration of this trend, but I think his plan is to accellerate the decline, but keep it largely invisible to those who are working for a living.  He knows the plane has no landing gear and is heading for the ground at a very rapid speed, but he is hoping he can belly that big airliner in for a 'soft crash landing'.

Tue, 11/02/2010 - 14:33 | Link to Comment Dismal Scientist
Dismal Scientist's picture

When Bernanke ultimately destroys the $ and then tries to cash in his 'entry ticket' to the secret underground lair of TPTB ... he will find that the door in front of him says 'Secret Liar', not 'Secret Lair'. Hard luck, Ben. Now go get your shine box.

Tue, 11/02/2010 - 14:41 | Link to Comment Uncle Remus
Uncle Remus's picture

The relevancy of the "Dark Side of the Moon" seems to have come full circle.

Tue, 11/02/2010 - 14:41 | Link to Comment 3ringmike
3ringmike's picture

i agree with you crab cakes. when i lost my job, i had the one years worth of expenses saved in the bank. no problem i thought. a year goes by and still can't get hired. now i have a problem. lose everything eventually and move into an old van and head down to the beach. work here and there to get by. i work one night a week without pay so i can stay behind the gas station i work at. then i realize that i'm surfing everyday. i eat fine. i get free coffee and wifi from the gas station. got no bills and the chicks dig guys who can afford to hang out at the beach all day! i wish i'd gone broke years ago! alive and well on the coast. gotta run, surfs up!

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