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Rosenberg Goes On Offensive, Mocks Birinyi, Tells Koolaid Guzzlers To "Put It In Their Pipe And Smoke It"

Tyler Durden's picture




 

David Rosenberg, who has very patiently taken the peanut gallery's swipes at him for the past month during the latest bear market rally bout (of which Japan had roughly 25 as the broader secular one took its market about 75% lower over two decades), finally lashes out at all those who still fail to see that there is nothing organic about the US economic recovery, and the only reason the numbers are "better" is due to the $4+ trillion in fiscal and monetary stimuli: "What we have on our hands has been an economic revival and market bounce back premised on unprecedented monetary and fiscal stimulus. How the Fed and the federal government in the future manage to redress their pregnant balance sheets without creating a major disturbance for the overall economy is a legitimate question and, sorry, does not deserve a double-digit market multiple, in our view." That is about all that needs to be said on the matter of the economic recovery. But we will immediately grant that there is an organic economic boom if the Fed removes QE right now, and the economic data points over the next quarter continue trending higher. Somehow we don't think this will (ever) happen...

From Gluskin-Sheff

Barrons.com ran an article yesterday quoting some obscure analyst criticizing our macro economic and bond yield call for 2010, basically ridiculing us, calling for a contraction in either Q3 or Q4 and for the yield on the U.S. 10-year note to get as low as 2% or below. Here is the reality. The U.S. economy was clearly sputtering by the spring and summer and we were calling for that early on as the consensus was gazing at 5%+ fourth quarter growth in Q4 of 2009 and 3%+ in the first quarter of 2010. Only when the long arm of the law — another round of monetary and fiscal stimulus — was extended to give Mr. Market a nice lift did the clouds part. That shows how fragile this recovery has been and remains — just read the FOMC minutes to get a glimpse of the array of downside risks cited (more on this below). While the 10-year yield did not finish the year at 2%, it almost got there in the fall and nobody, except us, was calling for that a year ago. So put that in your pipe and smoke it.

There is no doubt that we have had an incredible bear market rally on our hands. But that is exactly what it is. As we noted yesterday, as per Bob Farrell, even these spasms can go further than anyone thinks. But after a monstrous 80%-plus rally from the March 2009 lows (over such a short time frame, and the most pronounced bounce since 1955) this market has become seriously overextended in our view. Meanwhile, we have practically every market pundit extrapolating the recent trend into the future because that is the easy thing to do. But the Farrell’s and Walter Murphy’s of this world have become very cautious and frankly, that is good enough for us. The fact that Laszlo Birinyi published a report yesterday concluding that the S&P 500 will rally to 2,854 (what … no decimal place?) by September 4, 2013 (oh, only another 125% from here) is perfect. Absolutely perfect.

Meanwhile, the masses only see the returns, they do not see the risks that are nearly invisible to the naked eye. But we see the risks. We assess them; we measure them, and we benchmark the returns against them. I recall all too well that 2003-07 bear market rally — yes, that is what it was. It was no 1949-1966 or 1982-2000 secular bull run. It was a classic bear market rally, and did last five years. I was forever skeptical because what drove that bear market rally was phony wealth generated by a non-productive asset called housing alongside wide spread financial engineering, which triggered a wave of artificial paper profits. I knew it would end in tears … sadly, I didn’t know exactly when. I was constantly defensive in my investment recommendations at the time and there was a huge price to be paid for being bearish when there is a bull on your business card, trust me on that one.

We have been patient and will remain so, with an eye towards maximizing risk-adjusted returns, not merely gross nominal returns, which are the only ones that get reported. Remember those returns only count if they aren’t ultimately reversed by excessive greed. At the current time, we believe our clients are well served by our equity strategies (minimal cyclical exposure and a focus on an income equity-hard asset barbell); our long-short strategies (vital in controlling risk in the portfolio and underscore our focus on capital preservation thematic) and our fixed-income products (outside of commodities, deflation in the developed world remains the primary trend and is in such a backdrop that “yield” makes perfect sense).

As investors discovered that the world wasn’t flat after all from late 2007 through to early 2009 as the roof caved in for most, who remembered that I was just plain wrong in 2003 when the S&P 500 surged 26% or even in 2006 when it rallied 13%. It is quite amazing that as the market rolled over, nobody remembered how “wrongly bearish” I was during those years in the wilderness when everyone believed in the wonders of financial market innovation and the democratization of the housing market. I recall a senior portfolio manager in Texas scolding me in 2005 about how his nanny just got a subprime mortgage to buy her first home … let’s hope he didn’t co-sign).

It is an amazing commentary on human behaviour that I was forgiven for having been more focused on bonds and gold during those go-go leveraged years of 2003-2007, and then treated like a hero after the financial system collapsed under its own weight of dramatic excess. It goes to show that in the final analysis, as much as it hurts, not to be involved in a speculative rally that sees the market surge more than 80%, it is much much tougher to actually experience a correction in the other direction. For the time being, it takes extreme courage and resolve to not jump on the bandwagon (“don’t fight the Fed”) and buy “the market” at current expensive pricing points.

As far as equities are concerned, make no mistake, we are in the throes of an intense bear market rally, which is likely at the very late stage. Nobody will know to get out at the peak and as we saw in late 2007 and into 2008, many of the “longs” will be trapped. Bear market rallies are not the same as secular bull markets — the former are to be rented, the latter are to be owned. Those claiming to be adept market timers today that have been and are staying long will be repeating the same mistake they made three-years ago.

This is not the 1949-66 secular bull market that was underpinned by troops coming home and spurring on a baby-boom that would unleash years of tremendously strong domestic demand growth. The demographics in the U.S.A. are now downright poor — just look at the ratio of the working age population to the total population. Nor is this the 1982-2000 secular bull market that saw the central bank usher in years of disinflation (the current one is trying desperately to create inflation!) and a wave of innovation that saw the mainframe, the personal computer, the Internet, and then the smartphone, a boom in the capital stock that enhanced structural productivity growth and led to sustained gains in private sector economic activity, which by the end of that secular bull run, allowed the government to actually start to record budgetary surpluses. What is the major innovation today? The iPod? The iPad? Facebook? These may be fun, but they don’t do much to promote the growth rate in the nation’s capital stock or productivity.

What we have on our hands has been an economic revival and market bounce back premised on unprecedented monetary and fiscal stimulus. How the Fed and the federal government in the future manage to redress their pregnant balance sheets without creating a major disturbance for the overall economy is a legitimate question and, sorry, does not deserve a double-digit market multiple, in our view.

Maybe last quarter’s and next quarter’s GDP growth is relatively certain, but last we saw, the stock market is a long-duration asset. If 2011 was a building block for 2012, much like 1982 was for 1983, we would be impressed. But the growth we will likely see in 2011 will be bought by the government and the Fed at the expense of 2012 where there is likely going to be a huge air pocket, and the presidential election of that year in the U.S. will likely be fought and won on which party can successfully convince the voting public that the recession was not its fault.
Just as the 2003-07 bear market rally was built on a shaky foundation of unsustainable credit and house price appreciation, the current bear market rally has been built on even shakier ground of surreal public sector intervention. This may well have “saved the system” or “prevented a depression” back in the opening months of 2009, as many like to believe; however, the reality (and even former communist regimes figured this out a few decades ago) is that there is no such thing as a free lunch.

The best buying opportunities for investors that actually do have a horizon that lasts more than five months or even 15 months for that matter; investors that are more focused on building wealth for the long-term as opposed to trying to make recurring short-term trading profits, will happen when we see the payback period. And this could happen sooner than you think. Don’t assume for a second that Ben Bernanke has any more rabbits in his hat or that the new Congress is going to fill anyone’s stockings with more fiscal goodies towards the end of the year.
At least the editorial board at the Wall Street Journal get it. See page A14 of today’s paper — The GOP Opportunity. To wit:

“John Boehner takes the Speakers gavel from Nancy Pelosi today, and the transfer represents much more than a change in partisan control. It marks perhaps the sharpest ideological shift in the House in 80 years, and it could set the stage for a meaningful two-year debate over the role of the government and the real sources of economic prosperity.”

As the chart below illustrates, growth in the U.S. private sector capital stock has actually turned negative for the first time since the post WWII era. This does not bode well for future productivity gains, the U.S. economy’s non-inflationary growth potential or consensus views that somehow a market multiple between 14x and 16x (depending on how it’s measured) is close to anything resembling “fair-value”

While today’s ADP number for December was surprisingly strong, the reality is that U.S. labour market remains in a state of disarray. The labour force gaps are huge if not unprecedented. Fully 6.3 million Americans have been actively looking for a job with no success for at least six months — a record, both in absolute and relative terms, to the size of the workforce. One cannot help but contemplate the looming social issues that will be involved if youth unemployment rates at 25% and adult male jobless rates at 10% are sustained. Even the Fed did not offer much hope in yesterday’s minutes that the dramatic excess capacity in the jobs market will be resolved in the coming year, even with the last gasp attempt to stimulate the economy with monetary and fiscal steroids. Again, this is a source of uncertainty that would ordinarily require a lower fair-value P/E multiple than a higher one.

 

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Wed, 01/05/2011 - 12:23 | 849398 Hephasteus
Hephasteus's picture

Rosie the bear swipes his paw. Oh my.

Wed, 01/05/2011 - 12:55 | 849509 unwashedmass
unwashedmass's picture

He's right, tho. We should have a contest here...how corrupt are our markets?

Everyone nominates their favorite scam o' the day.

Mine right now is BAC -- totally negative volume, and its rising......levitating on HFT alone.

Wed, 01/05/2011 - 14:31 | 849885 pslater
pslater's picture

My favorite scam of the day - the Fed!

Wed, 01/05/2011 - 15:53 | 850108 billhilly
billhilly's picture

My favorite scam of EVERY day - the Fed!

Wed, 01/05/2011 - 13:05 | 849561 Prof Gulliver
Prof Gulliver's picture

A broken clock is right twice a day, but this fat doofus is only right once a decade. How Gluskin Sheff allows this idiot to appear in public is beyond me. It's not as if Ben was doing this in secret. He openly bragged about what he was going to do. And now Rosie complains he would've been right except for the Fed.

Wed, 01/05/2011 - 13:08 | 849569 HarryWanger
HarryWanger's picture

I've been saying this about Rosie too for some time. He just needs to go away. At this point with job creation and manufacturing rising strongly, it's time for the big bear to capitulate and admit we're in a very strong economy now.

Wed, 01/05/2011 - 13:14 | 849590 thepigman
thepigman's picture

No, Wanger, you need to go away for

being stupid.

Wed, 01/05/2011 - 14:25 | 849864 Max Hunter
Max Hunter's picture

Anyone that says manufacturing is in a STRONG recovery isn't worth listening to.  Hey Harry... Some of us are directly linked to manufacturing and know that your comments are pure bullshit..  You should stop fucking lying..  There are other flavors of kool aid that are actually presentable.. Manufacturing in a strong recovery isn't even lied about on MSM.  Get a clue..

Wed, 01/05/2011 - 13:16 | 849595 tmosley
tmosley's picture

No, actually, YOU need to go away.

We are in a very strong BUBBLE right now.  The fact that you can't tell the difference between real growth fueled by capital investment from savings, and capital destructive "growth" from money printing labels you as a bag holder.  

Wed, 01/05/2011 - 13:20 | 849603 SheepDog-One
SheepDog-One's picture

'Very strong economy' HarryWanker? Just remove the QE monetizing and zero interest rate printing POMO garbage...and lets just SEE how strong it all is!

Wed, 01/05/2011 - 13:33 | 849657 homersimpson
homersimpson's picture

No one can be this stupid or ignorant. I congratulate you for the great acting job as a troll you have performed admirably the past year.

Then again, if history is any indication.. you aren't acting..

Wed, 01/05/2011 - 14:45 | 849917 Oso
Oso's picture

wow, it is just painful to read both this and the preceeding comment.  why dont you take a look around the world and then see what happens if the monetization spigot turns off. 

Wed, 01/05/2011 - 13:17 | 849597 Slim
Slim's picture

They've only been open about asset price support recently.  It didn't shock anyone much as if you've spent any time at all looking at markets, you could see it happening back in early 2009 when it was still very hush hush.

Wed, 01/05/2011 - 12:25 | 849401 TruthInSunshine
TruthInSunshine's picture

Organic economic growth is a dead concept, like Latin. Unemployment lines are long. Keynes is the new god. Austrian Economics has been outlawed by the state. Adam Smith references are being removed from public school textbooks. Money printers have negotiated higher compensation, yet more are demanding to be paid in PMs.

Wed, 01/05/2011 - 12:40 | 849457 Bearster
Bearster's picture

Just like they can remove gold from the official vocabulary, but not its monetary role, they can refuse to utter the truth but that doesn't change a damned thing.

Right now, I think Austrian school economics is on the rise.  Exhibit A: a recent issue of The Economist (a bastion of Keynesian/Friedmanite thinking if ever there was one) had a section on the Austrian school.

Wed, 01/05/2011 - 12:51 | 849501 Bearster
Bearster's picture

Just like they can remove gold from the official vocabulary, but not its monetary role, they can refuse to utter the truth but that doesn't change a damned thing.

Right now, I think Austrian school economics is on the rise.  Exhibit A: a recent issue of The Economist (a bastion of Keynesian/Friedmanite thinking if ever there was one) had a section on the Austrian school.

Wed, 01/05/2011 - 13:49 | 849728 Oh regional Indian
Oh regional Indian's picture

Organic growth is dead indeed. Virulent, debt fueled growth was the norm, virulent debt fueled bust is upon us, as soon as someone will be allowed to speak the truth to the masses.

I really like this line:

"I was forever skeptical because what drove that bear market rally was phony wealth generated by a non-productive asset called housing alongside wide spread financial engineering, which triggered a wave of artificial paper profits."

Rock on Rosenberg.

ORI

http://aadivaahan.wordpress.com

Wed, 01/05/2011 - 12:24 | 849403 goldmiddelfinger
goldmiddelfinger's picture

"As far as equities are concerned, make no mistake, we are in the throes of an intense bear market rally, which is likely at the very late stage. "

 

He's pissed.

Wed, 01/05/2011 - 13:19 | 849601 SheepDog-One
SheepDog-One's picture

Not as pissed as the sunshine and lollipops brigades will soon be when an HFT removes 25% of your 'profits' one morning soon.

Wed, 01/05/2011 - 13:34 | 849650 Saxxon
Saxxon's picture

He got left out.  I can't hold my nose and buy AAPL, either.  The dumb money made the most money in 2009 and 2010.

Wed, 01/05/2011 - 14:20 | 849853 traderjoe
traderjoe's picture

Don't forget about gold and silver in 2010. 

Wed, 01/05/2011 - 12:23 | 849404 Gene Parmesan
Gene Parmesan's picture

It amazes me that this needs to be explained to anybody, particularly to people who work in the industry.

Wed, 01/05/2011 - 12:47 | 849485 thepigman
thepigman's picture

People who work in the industry lie

as a matter of course because they're only interested in

extracting a fee or commission from

you.

 

Wed, 01/05/2011 - 13:30 | 849642 rosiescenario
rosiescenario's picture

....you mean the sell side....the used car sales folks? They are not compensated for being honest...their bread is buttered on a different side from investors'.

Wed, 01/05/2011 - 12:23 | 849407 Trimmed Hedge
Trimmed Hedge's picture

It's okay to cry....

Wed, 01/05/2011 - 12:23 | 849408 LongSoupLine
LongSoupLine's picture

I'm sure Birinyi will respond as soon as he remeasures with his ruler and changes his Depends undergarment.

Wed, 01/05/2011 - 12:27 | 849417 TonyV
TonyV's picture

Rossie, go to Walgreens and buy some KY Jelly. You will need it.

Wed, 01/05/2011 - 13:12 | 849584 HarryWanger
HarryWanger's picture

He needed it a long time ago. That 80+% rise had to be painful for him.

Wed, 01/05/2011 - 13:17 | 849592 SheepDog-One
SheepDog-One's picture

You Kool Aid guzzlers will be the ones needing the KY when one evening soon Bernanke decides he cant control it anymore and decides to pull the plug on futures for the ride back down due to Bernankes 15 minute 'liquidity removal button'. Got to be faster than an HFT, do ya feel lucky? Well do ya, punk?

Wed, 01/05/2011 - 13:24 | 849619 buzzsaw99
buzzsaw99's picture

Bernanke is a sociopathic douche. He will keep flooding wall street with money as long as there is breath in his stubby little body.

Wed, 01/05/2011 - 13:45 | 849703 SilverIsKing
SilverIsKing's picture

I'm just hypothesizing here but what would happen, if after the Fed owns all of the Treasury debt, the US Government defaults?  The Fed is owed trillions of money that it itself created out of thin air and then that debt just disappears.  Just curious as to how the dominoes would fall in such an instance.

Wed, 01/05/2011 - 15:14 | 850008 hedgeless_horseman
hedgeless_horseman's picture

In my opinion, this scenario does not get enough attention.  I have dark fears of post hoc and/or ad hoc collateral claims.

Wed, 01/05/2011 - 17:29 | 850395 cougar_w
cougar_w's picture

ad hoc collateral claims

There is a name for that: extortion

But will it be the Chinese or the British? Or just maybe the IMF, wouldn't that be just too delicious.

Wed, 01/05/2011 - 21:40 | 851248 mamba-mamba
mamba-mamba's picture

Maybe this is the plan. Sort of like a company buying back all its stock and then going private.

Wed, 01/05/2011 - 12:29 | 849425 topcallingtroll
topcallingtroll's picture

I hate to be such a troll but I dont care what the reason is when my investments go up. Money is money and I am going to get my share. However my finger is always poised an inch above the sell button. Going long does not have to be going stupid.

Wed, 01/05/2011 - 12:50 | 849499 Rogerwilco
Rogerwilco's picture

@topcall

This reminds me of the scene in the movie "The Pianist". A little Jewish boy is walking around selling candy to detainees awaiting their train ride to the death camp, and he's gouging the hell out of them, not budging on the price. Finally the old man gets pissed at the kid and asks him "What are you going to do with the money?"

What good is a paper "profit" when the whole economy collapses? In a renormalization, we're looking at a 25%-40% deflationary collapse.

Wed, 01/05/2011 - 12:51 | 849502 Internet Tough Guy
Internet Tough Guy's picture

Some Madoff investors knew it had to be a ponzi but they thought they could get out in time. Are you faster than an HFT?

Wed, 01/05/2011 - 13:06 | 849559 jeff montanye
jeff montanye's picture

you have to ask yourself if you feel lucky.  well do you ...?

Wed, 01/05/2011 - 13:05 | 849555 Alex Zhyk
Alex Zhyk's picture

That's OK. As long as one knows that his currency denominated investments outgrow that currency inflation.

Wed, 01/05/2011 - 13:07 | 849563 jeff montanye
jeff montanye's picture

see above re: luck

Wed, 01/05/2011 - 14:12 | 849819 Alex Zhyk
Alex Zhyk's picture

I prefer not to try my luck in gambling.

Wed, 01/05/2011 - 13:35 | 849656 rosiescenario
rosiescenario's picture

"...my finger is always poised an inch above the sell button..."

...uh, you might want to get a bit closer...those computers running the HFT's are quite fast as you might recall from last year's action.

Wed, 01/05/2011 - 13:37 | 849669 homersimpson
homersimpson's picture

It's people like you that give Banana Ben and Obama inspiration to manipulate the economy at taxpayer expense. Give the populace "free" or "cheap" bread from the grain stores before the upcoming drought and famine..

Wed, 01/05/2011 - 17:33 | 850404 cougar_w
cougar_w's picture

I dont care ... however my finger is always poised an inch above the sell button.

Then actually you care a great deal.

You are a gambler, not an investor. That's fine. But the gutters are paved with the corpses of gamblers.

Wed, 01/05/2011 - 12:32 | 849432 Ferg .
Ferg .'s picture

He's right with regard to equities . Pull up some weekly charts . Overall structure is still bearish .

Wed, 01/05/2011 - 12:32 | 849433 LoneStarHog
LoneStarHog's picture

What defines a Bull Market:  1) Inflating indices ... 2) Appreciating indices ... DUH!

Wed, 01/05/2011 - 12:34 | 849439 wiskeyrunner
wiskeyrunner's picture

Wow the stock market keeps rising day after day, seems they don't read zero hedge. Seems there is zero risk in buying stock index futures.

Wed, 01/05/2011 - 13:25 | 849495 SheepDog-One
SheepDog-One's picture

'They' dont read Zerohedge? Im not sure if HFT robots can actually read.
Yep, I hope they all keep believing 'this time, its different...there is no risk'. Those people will find themselves starving in the streets soon, stabbed in the eye over a can of tuna.

Wed, 01/05/2011 - 13:42 | 849687 Saxxon
Saxxon's picture

The broad market is Euphoric.  We have seen this before.  The sugar high seems to be kicking into a higher gear since real trading resumed on January 3.  Look at those tails on the daily charts.  Every dip bought with gusto.  Unstoppable.

I am glad I'm not short again watching this mad cow.  It's going straight up.  I thought 01/03 was the blowoff top but maybe not.

Were it not for precious metals I would have lost money last year because I "believed none of it" and still do not.

Wed, 01/05/2011 - 20:18 | 851038 Lord Koos
Lord Koos's picture

Last week I rolled over my meager IRAs out of equities and into hard assets, industrial & precious metals ETFs.  In a few months when I'm able to cash out the IRAs without penalty, it will all go into physical.  I maybe will miss the very top of this bull(shit) run but I'd rather risk that than lose 25% or more if there is a correction before spring.  

Wed, 01/05/2011 - 17:35 | 850420 cougar_w
cougar_w's picture

Past performance is no guarantee of future returns.

I think is how they say it.

Wed, 01/05/2011 - 12:36 | 849441 pat53
pat53's picture

I can't believe this idiot still has a job, he should be cleaning toilets somewhere, cause his analysis is "crap" to put it mildly ! he convieniently leaves out all the good economic data from the last several months and continues to make excuses as to why he has been WRONG.... about everything. Who in their right mind would keep a fool like this employed, it has to be incredibly embarrassing to Gluskin?  LOL

Wed, 01/05/2011 - 12:41 | 849465 mrgneiss
mrgneiss's picture

I think it must be more embarrassing to be you..........I guess those charts are just figments of our imagination and/or aren't relevant......

Wed, 01/05/2011 - 13:26 | 849623 Rogerwilco
Rogerwilco's picture

.

Wed, 01/05/2011 - 12:38 | 849444 RobotTrader
RobotTrader's picture

After today's move.....

Nobody is really going to pay much attention to Rosie or all the others.

Really, the only thing to pay attention to is the tape.

Banks have been super resilient.

 

Even the lowly gold stocks are attempting a bottom here.

Gold $1,650 = Dow 13,000?

Wed, 01/05/2011 - 12:43 | 849474 SheepDog-One
SheepDog-One's picture

Pretty easy to be super resilient when your vaults are being packed with free zero interest dollars from the FED.

Wed, 01/05/2011 - 12:58 | 849528 HelluvaEngineer
HelluvaEngineer's picture

You forgot the stack of "Get out of Jail Free" cards.

Wed, 01/05/2011 - 13:07 | 849562 SheepDog-One
SheepDog-One's picture

Oh yea, and total 'above the law' status too...man if I had even a bit of that Id walk around super resilient myself! As much free money as you can carry, and total immunity from any law...wow what a country!

Wed, 01/05/2011 - 13:18 | 849591 Hephasteus
Hephasteus's picture

Ya but even they have limitations. They can't steal from gold and silver holders. So fuck 'em.

Oh ya I forgot about the banks psychic. He said they would buy something that would make them a lot of money. I guess that's a vault full of hundreds for printing and shipping cost. LOL

http://wallstcheatsheet.com/breaking-news/economy/jim-cramer-and-thestre...

Wed, 01/05/2011 - 15:26 | 850021 hedgeless_horseman
hedgeless_horseman's picture

      Banks can buy bank stocks

 +   Banks have access to virtually free and unlimited capital

_____________________________________________

       Banks stock prices have been super resilient

 

The math works, just don't look at the fundamentals.

Wed, 01/05/2011 - 17:38 | 850436 cougar_w
cougar_w's picture

But notice, they can do that for a very long time. They can do that forever. They can do that even when nobody remembers any more that anyone ever did that nor why. Playing a game among themselves.

At some point its just another religion. You need to have a lot of unswerving faith but that's all you need.

Wed, 01/05/2011 - 12:47 | 849481 BlackSea
BlackSea's picture

<sarcasm>

And thinking linearly:

Gold $4,950= Dow 39,000

Gold $50,000 = Dow 394,000

Mission Accomplished! Congrats all around

</sarcasm>

Wed, 01/05/2011 - 12:49 | 849489 thepigman
thepigman's picture

Robo needs suckers to buy this

worthless shit.

Wed, 01/05/2011 - 13:26 | 849624 Pez
Pez's picture

Cartoon should should be revised Captain Broccoli now says, Buy..you dips!

Wed, 01/05/2011 - 13:38 | 849677 rosiescenario
rosiescenario's picture

"Nobody is really going to pay much attention to Rosie or all the others."

 

...and that is what always happens before a crash....the market euphoria is tangible....everyone has forgotten about the potential at any moment for another flash crash which virtually assures that it will happen shortly.

Wed, 01/05/2011 - 12:37 | 849447 TruthInSunshine
TruthInSunshine's picture

Wow, at this rate, stocks will be where they were 10 years ago, not counting those that went to $0 or near so, as they were delisted, and all it took was the bankruptcy of nations via fiat.

Wed, 01/05/2011 - 17:43 | 850456 cougar_w
cougar_w's picture

A small price to pay really.

The bankruptcy of the sovereigns is not a small matter. The sovereigns are actually protecting the playerz. Literally, keeping them alive. The playerz are pretending they can bk the sovereigns and trot off with all the money ... but how will they do that and not be eaten?

I'm coming to appreciate that money actually makes some people stupid.

Wed, 01/05/2011 - 21:45 | 851259 StychoKiller
StychoKiller's picture

FRN's != Neurons

And here someone told me it was the flouride in the water! :>D

Wed, 01/05/2011 - 12:40 | 849461 Divided States ...
Divided States of America's picture

You the friggin idiot...he's been bullish on gold and metals so he hasnt been wrong on everything.

Anyhow, I notice many metallic bear traps set out around Brookfield Place (GS's office is there) and I am sure they are all for him. Hopefully he wont step on one of them.

 

Wed, 01/05/2011 - 12:41 | 849462 Cdad
Cdad's picture

Why wouldn't they mock Rosenberg?  He speaks of truth...things happening...but who cares when you can press a button and ramp oil $1.75 per barrel in 30 minutes worth of oil futures manipulation paid for by Ben Bernanke? [look at that stupid oil chart!]

Seriously, when will Bernanke be dragged out of his station and fired?  Seriously?  Ben Bernanke will become known as the biggest criminal in United States history.  Unless and until then, L. Blankfein's wildest dreams about oil prices will simply continue to come true. 

We are ruled by criminal syndicate Wall Street bankers that are simply looting this nation via one pathway or another.

Oh look...the Roach Motel RSI is over 80 again....sweet! 

REAL CAPITAL WILL NOT FORM IN FINANCIAL INSTITUTIONS POLLUTED WITH IMMORAL CRIMINALS AS IS THE CASE WITH OUR FINANCIAL SYSTEM!

And another day comes and goes, market credibility face down dead in the street at the corner of Wall Street and Broad. 

Good grief [and by that I mean fuck Ben Bernanke...because this is all simply out of control...and he owns it]

 

Attention CNBC:  this stuff cannot be fixed with a fuzzy image advertising campaign about capitalism...you dumb fucks!  Try doing your jobs.

 

Wed, 01/05/2011 - 13:00 | 849536 SheepDog-One
SheepDog-One's picture

Cdad I saw a great example of what passes today for 'economic activity', as an old sign in front of an abandonded strip mall was torn down and a new fancy one put up, 'construction activity' you see, and no doubt some sort of Obama economic program...yes typical 3rd world BS like how China builds office buildings, then tears them down a week later and rebuilds them again.

Wed, 01/05/2011 - 13:06 | 849558 Cdad
Cdad's picture

Dog,

We have our version of that here...road construction projects in all the wrong places that no one asked for, including building additional bridges that are redundant and no one can afford to maintain....and the signs mark the truth of it.

But Ben Bernanke is 100% sure, remember? 

Oh man...time for lunch...martini style...as I am pissed at all of it today.  Blood alcohol content to rise more sharply then L. Blankfein's wildest oil futures dream chart!  Talk about another fucker that needs to be dragged out into the street and flogged.

Wed, 01/05/2011 - 13:11 | 849575 SheepDog-One
SheepDog-One's picture

Bridges to nowhere, roads into wastelands or swamps or a mountainside...lots of busywork typical of a collapsed nation. Lots of that back in Germany where crews would dig a ditch...100 yards behind them another crew was filling in the ditch. Then they all found work in WW2.
I feel ya too, I dream of dragging these pieces of crap out into the streets and kicking the puddin out of them all!

Wed, 01/05/2011 - 13:54 | 849748 TruthInSunshine
TruthInSunshine's picture

Japan has poured more concrete and completed more 'public works' projects, in real dollar terms, than any other nation on earth, for the last 20 years.

And their economy is still sucking wind, and they have possibly the largest deficit spending in the world, also (possibly larger than the U.S.).

Wed, 01/05/2011 - 15:28 | 850042 Cyrano de Bivouac
Cyrano de Bivouac's picture

TIS-Agree.Japan's economic policy for the last 20 years has been state sponsored vandalisim.

Wed, 01/05/2011 - 16:43 | 850238 Clockwork Orange
Clockwork Orange's picture

Math is a science.  It does not lie.

Just as price pays on today's (and every day's lately) tape, it will carry asset values upwards to the benefit of only those who own assets.  The rest will be slaughtered by rising prices.  

If the tape succeeds in bailing the pensioners out, their withdrawals will purchase little.

By then, when everyone else figures out what a ponzi it was, we and those who we reach will have Banana Ben and his minions properly and widely designated as the rightful villains. 

Math is a science.  This will be fun for trading for all of us, long and short, on different days, but in the end math will have the final say and Ben will be the loser.

Wed, 01/05/2011 - 16:46 | 850247 LFMayor
LFMayor's picture

+ 7.62x25.   You know what Obama the Road-Builder did around these parts?  Fixed the shoulder.  Yes, that fucking part of the road that you're not supposed to drive on.  It got re-surfaced, for miles. 
Thieving bastards... it will keep.

Daddy'll be here soon Matty, Daddy's gonna be here soon.

Wed, 01/05/2011 - 13:29 | 849632 What a mess_man
What a mess_man's picture

+ 1.7T

Wed, 01/05/2011 - 12:43 | 849467 SheepDog-One
SheepDog-One's picture

'Kool Aid Guzzlers'...hey Harry youre finally in the headline of a Zerohedge article!!

Wed, 01/05/2011 - 12:43 | 849471 Ferg .
Ferg .'s picture

His argument is that this " good economic data " derives entirely from monetary and fiscal stimuli . It's not organic , and if it were removed it would not be sustainable . Once the Fed stopped their first quantitative easing program before June 2010 the data started to deteriorate quite rapidly . That was back when the Fed was starting to form an exit strategy from their loose monetary policy , such was their optimism that the corner had been turned  .

Wed, 01/05/2011 - 12:48 | 849486 SheepDog-One
SheepDog-One's picture

All I ask Bernanke and the Kool Aid guzzlers is just remove the zero interest rate printing QE monetizing and raise the crook window rate to 2% for a while...lets just SEE what happens!

Wed, 01/05/2011 - 12:56 | 849522 Cdad
Cdad's picture

remove the zero interest rate printing QE monetizing and raise the crook window rate to 2%

Exactly.  Who could not see that as the correct thing to do?  Answer: the dumbest and most intellectually corrupt Federal Reserve Chariman in our country's history...Ben Bernanke.

Sheesh...I think I need MORE SHOPPING STORIES so that I can calm down.  Someone tell me about how great the white Iphone 4 is going to be....

Wed, 01/05/2011 - 15:29 | 850041 ghostfaceinvestah
ghostfaceinvestah's picture

Yup, remember all that talk about "reverse repos"?  You hear about those now?  At best the Fed will pause after QE2, and the equity markets will start to crumble almost immediately.  Then we will see if they continue with QE - my guess is a lot depends on the price of gas at the pump - at $4, the masses will be screaming for Bernanke's head, especially as U3 continues to print in the high 9s.

Wed, 01/05/2011 - 12:44 | 849472 Moric
Moric's picture

holy shit I don't think I have ever seen this many useless comments on zerohedge ever...

Wed, 01/05/2011 - 12:46 | 849479 SheepDog-One
SheepDog-One's picture

Your comment is awesome though.

Wed, 01/05/2011 - 12:50 | 849490 Moric
Moric's picture

What can I say, I try and be insightful.

Wed, 01/05/2011 - 12:54 | 849514 bigdumbnugly
bigdumbnugly's picture

your comments certainly do seem deep, M.

Wed, 01/05/2011 - 18:16 | 850606 Clockwork Orange
Clockwork Orange's picture

Try "to"

Wed, 01/05/2011 - 12:51 | 849493 New Revolution
New Revolution's picture

1935 through 1937 saw a similar bull move built upon government deficit spending that created, in the end, not a single new job nor prosperity in America.   Then in 1937 after doubling reserve requirements on your neighborhood bank in 1936, the FED raised reserve requirements 25% on 'reserve city banks' and the market dropped.   The FED dropped the discount rate to counter the downward move and the markets rallied, but then in July they started the big header down and it stayed that way until America went to war against every country that was practicing bi-lateral trade and essentially squeezing America out of their markets as America had been doing to them increasingly since the advent of American Imperialism in 1898.   

I would say the lesson to be learned is that eventually the FED will have to tighten and the cause of that will be when the inflation threshold (real or imagined by the Bureau of Lies and Statistics) is crossed.   The benchmark I am watching is $4 gasoline and your guess might be as good or bad as mine.   The point is that it will come but I don't think now is the time.   But rest assured it will come.

Wed, 01/05/2011 - 13:53 | 849743 Saxxon
Saxxon's picture

$4 gasoline in California is what I am watching for.

It's hard to get a feel for how bad things are out there without 1930s breadlines as a reference.  But I'm thinking, surprisingly bad.

Wed, 01/05/2011 - 14:19 | 849849 ATG
Wed, 01/05/2011 - 12:52 | 849504 topcallingtroll
topcallingtroll's picture

Why do people look for jobs? Why not create your own job? Go around to all the thrift shops antique stores and pawn shops and make a deal with them to put all their stuff on ebay for a share of the profits. There are hundreds of little opportunities such as this. Only losers look for a job. Read rich dad poor dad someday.

Wed, 01/05/2011 - 13:38 | 849679 Dr. Richard Head
Dr. Richard Head's picture

Uncle Sam is comingfor those people too - http://www.forbes.com/2009/03/17/irs-ebay-audits-personal-finance-taxes-internet-sellers.html

At least this piece of information was helpful my wife to encourage her get all of her fucking inventory out of our home.  God I hate seeing consumer goods in excess in my house.

Wed, 01/05/2011 - 12:54 | 849505 steve from virginia
steve from virginia's picture

Capital stock turns negative because it cannot provide a return unless fuel costs -$30 a barrel. Ours is capital malinvestment and waste ... and has been since 1955.

Now, we pay. Perhaps not in finance right this minute. Finance's turn will come. Modernity has stripmined all the places to hide in its frantic and senseless search for 'growth'. Even gold will not save the financiers.

At some point the various countries will deindustrialize. Go ahead and laugh. Japan is at that point of diminishing returns on 'economies of scale' and 'throughput'. What is Japan's capital stock worth?

Deindustrialization takes place when inputs such as fuel cost more than any returns gained from using the inputs. We have been at this point since 2004, when fuel prices tripled from 1998's ultra- low of $12 per barrel. Tomorrow?

How is YOUR business going to survive $95 oil?

Wed, 01/05/2011 - 12:53 | 849510 thepigman
thepigman's picture

I'm actually surprised the kool aid

guzzlers like Robo are worked up about a

notoriously inaccurate ADP number.

Market sells for a 24 GAAP P/E....only

douchebags would buy it at this level

particularly with housing and CRE dead.

Wed, 01/05/2011 - 12:57 | 849523 thepigman
thepigman's picture

It's now second only to the dotcom

bubble ripoff. That ended well.

Wed, 01/05/2011 - 13:27 | 849625 ghostfaceinvestah
ghostfaceinvestah's picture

as i said below, if/when qe ever ends it will be the greatest shorting opportunity in history.  look at what happened in April when the mbs qe ended - the market started tanking, and only stablized when the fed announced it would reinvest principal, and only started rising when rumors of qe2 started after Bernanke's speech.

if you want to make a fortune shorting, just be patient, and be glad the market keeps grinding higher, it makes the entry point that much more attractive.

i have a feeling there will be at least a pause after qe2 - i am seeing more and more stories on the local tv about the price of gas, and anyone with a brain knows why gas prices are going up, and it ain't demand.

Wed, 01/05/2011 - 14:51 | 849902 ATG
ATG's picture

Talking about Yale Shiller's 10 year average earnings?

http://www.multpl.com/

Market may be looking at 15.92 Q3 PE with 2010 earnings up 47% so far

Not to forget 6.3% earning yields versus 4.5% long bond yield

When the train's a coming (Northbound March 2009 and Southbound Jan 2011),

why not get off the track and get on board?

Rosie called bonds and gold right and wasn't bearish for two decades like some

http://www.bloomberg.com/apps/news?pid=21070001&sid=a8KK_pGpxqL4

Fact is, we had a real secular bear market since 2000, with Dow going from 44 ounces of gold to 8 ounces for a -82% real decline so far

http://home.earthlink.net/~intelligentbear/com-dow-au.htm

 

Wed, 01/05/2011 - 12:56 | 849515 johnnymustardseed
johnnymustardseed's picture

With zero interest free money from the FED. How can anyone  think that Capitalism has not failed? Time to move on to the next phase which will no doubt be chaos

Wed, 01/05/2011 - 12:55 | 849518 johnnymustardseed
johnnymustardseed's picture

With zero interest free money from the FED. How can anyone  think that Capitalism has not failed? Time to move on to the next phase which will no doubt be chaos

Wed, 01/05/2011 - 12:57 | 849527 TruthInSunshine
TruthInSunshine's picture

Does anyone know if there's any anaysis that was done to show what proportion of any increase in spending and/or GDP YoY was attributable to higher prices paid?

I'm not referring to the bullshit CPI index either; I'm speaking of a model that incorporates prices paid at the wholesale/retail/consumer levels for commodities and finished goods, including energy and food.

Wed, 01/05/2011 - 13:41 | 849689 Dr. Richard Head
Dr. Richard Head's picture

That would be a great piece to look over indeed. 

Wed, 01/05/2011 - 13:09 | 849576 RobotTrader
RobotTrader's picture

New highs....

 

As I mentioned last week, I went long some deep water drillers:  DO, RIG, NE, all are having a good day today.  If they close well today, I'll probably add more tomorrow.

Now if only my beleagured gold stocks would get up and start moving....

LOL....

Wed, 01/05/2011 - 13:17 | 849600 thepigman
thepigman's picture

I think you should add as many

parabolas as possible given your

10 years of trading experience.

Wed, 01/05/2011 - 13:22 | 849615 SheepDog-One
SheepDog-One's picture

And his 'IBD Super Genius' membership card.

Wed, 01/05/2011 - 15:36 | 850067 Bill Lumbergh
Bill Lumbergh's picture

And his "Tickerville/Minyanville" premium access card.

Wed, 01/05/2011 - 13:20 | 849606 BlackSea
BlackSea's picture

Jan S&P to 1291. Max 1304. Correction after.

Wed, 01/05/2011 - 13:10 | 849581 bull-market_3.0
bull-market_3.0's picture

Is a bear market good or bad for gold & silver?

Wed, 01/05/2011 - 13:49 | 849721 homersimpson
homersimpson's picture

In the short term, bad, since fund managers around the world will have to liquidate their gold first (read: their more valuable assets) in order to pay for margin calls, losing propositions, etc. In the long term, gold does great in bad economies. This is because gold will always be seen as a currency where as fiat currencies (like the dollar bill) are simply IOUs by their respective governments. After all - if you break down what a stock of a company is, it's just a piece of paper or a document (electronic or paper) that states you own part of a company - which originated by a piece of paper held by some government entity.

Now, with that said, who wants US-quality Zimbabwe-style dollars in 10 years, raise your hand? (trimmedhedge, topcallingtroll, and HarryWanger raise their hand sheepishly in the back of the room)

Wed, 01/05/2011 - 13:22 | 849610 RSDallas
RSDallas's picture

I have always felt that Rosenberg's arguments and beliefs are correct from an intellectual perspective.  With that said I think all of us are (or should be) realizing that the Fed does in fact have the power to push the market.  Rosenberg pontificates on the effects of the Fed reversing its policies, but what if what we are seeing is "The New Normal".  The question I have is what could cause the Fed to pull back?  I don't think there is anything.  How much interest has been paid by the Japanese government since they first went into their recession?  I would love to know this because some banker, somewhere has made billions if not trillions.  The Fed is an independent entity that strives to make a profit by lending money.  Enough said.  The Fed will NEVER quit.  That's the only thing I wonder if David understands or not?

Wed, 01/05/2011 - 13:47 | 849719 rosiescenario
rosiescenario's picture

"The question I have is what could cause the Fed to pull back?"

 

....maybe gasoline at $10 / gallon? ....but not before then....

Wed, 01/05/2011 - 14:17 | 849834 Don Birnam
Don Birnam's picture

Not likely.

At $10 per gallon, both full- and self-serve gas stations will have Helicopter Ben's representatives from the requisite Federal Reserve District handing out a complimentary air freshener and five twenties with every fill-up.

"Keep your engine running clean -- a stack of Jacksons with every tankful !"

Wed, 01/05/2011 - 13:22 | 849612 ghostfaceinvestah
ghostfaceinvestah's picture

when/if qe ever ends it will be the greatest shorting opportunity in history, better even than March 2000 or November 2007

Wed, 01/05/2011 - 13:26 | 849627 apberusdisvet
apberusdisvet's picture

 

whether it's a bull or bear market is immaterial for PMs.  The real indicator is the world's totally overleveraged economy, with no easy ways out.  That's a bull for PMs.

Wed, 01/05/2011 - 13:29 | 849638 buzzsaw99
buzzsaw99's picture

All those logical arguments and fundamentally sound analyses are laughable in today's environment.

Wed, 01/05/2011 - 13:29 | 849641 tahoebumsmith
tahoebumsmith's picture

tick,tock,tick,tock,tick,tock the hands of the clock are moving so fast they are going to spin themselves off sooner then later. Prepare yourselves for the worst, things are just getting too warm and fuzzy for me. We have a recovery that isn't and we have worldwide civil unrest. I'm still trying to figure out where the optimism is coming from? Last time I checked the true economic indicators of a sustainable recovery, meaning employment, housing, disposable income, and industrial growth were all at all time lows. Isn't this what is needed in an economy that relies 70% on the consumer? The only question people can't answer is what will happen when the FED decides to turn off the presses? The current depression we are in will shine through the thick layer of smoke the overheated presses have created. Lets get real folks, 13.5 trillion and 0% interest rates and this is the best we can do? What most people are calling a recovery is actually the last nail in America's coffin because when the ponzi comes unraveled and all the CRONIES that robbed us blind disappear into the sunset we are going to be in worse shape economically then this country has ever seen. It's someting a 5th grade math student can figure out if you just look at the numbers. The government knows their days are numbered in keeping a lid on this and they are preparing for the consequences. I suggest you prepare as well and not be one of the naysayers that get blindsided by the tsunami that is picking up speed and is soon to reach the shore.

Wed, 01/05/2011 - 13:33 | 849655 RobotTrader
RobotTrader's picture

Possible nipple bottom.

Turned around right at the 50-day.

The place to buy is right here.  Not at the highs when Eric King and crew were screaming "buy, buy, buy".....

Wed, 01/05/2011 - 13:51 | 849731 Chupacabra
Chupacabra's picture

Wyndy, you're supposed to irritate the thin-skinned posters by donging AAPL and BAC, and waxing poetic about the futility of shorting anything, not talking up gold stocks.  You'll only confuse people.  lol

Wed, 01/05/2011 - 14:15 | 849825 tmosley
tmosley's picture

Uhh, no, the place to buy was back in early december and earlier, when they were also screaming "buy".

Christ, you are so fucking worthless.  One tiny dip and you claim that you know better than the guys who have been right all along.  You're the one who missed all the action, numbnuts.

Wed, 01/05/2011 - 19:02 | 850795 SamuelMaverick
SamuelMaverick's picture

Eric King has been advising everyone to buy gold and silver for years and years you freakin moron.  One down day (which is expected ) and you are glowing like a fat girl who got a date for her prom. PM's are volatile, even in a secular bull market. 

Wed, 01/05/2011 - 13:35 | 849659 economessed
economessed's picture

Mr. Rosenberg, if you're cruising through the comments here, I just wanted to say "thanks for the pragmatism."  Americans seem to be averse to introspection of their own situation and then acting in a sustainable way to correct it.  It is so much easier to just nurture an entitlement philosophy and leave fate to guide your strategy.

I really enjoyed reading this article.

Wed, 01/05/2011 - 13:37 | 849675 Groty
Groty's picture

Only Rosie can claim that an increase in U.S. equity market values of $9 trillion in less than 2 years is a bear market.

Wed, 01/05/2011 - 13:46 | 849711 Chupacabra
Chupacabra's picture

You're right.  Thank G-d for the Ben Bernanke and QE!  I see the light now.

Wed, 01/05/2011 - 13:48 | 849716 Pez
Pez's picture

Now that's some "extra strength" Kool-Aid!

Wed, 01/05/2011 - 13:49 | 849725 Overpowered By Funk
Overpowered By Funk's picture

Read his article again.

Wed, 01/05/2011 - 13:50 | 849727 TruthInSunshine
TruthInSunshine's picture

Yes, indeed, because everyone knows how we all benefitted from the rising value of dot.com stocks up until 2000, and the rising value of real estate up until 2007.

Alas, the economy is vibrant and strong, not hollowed out and on artificial means of life support, as the Bernank prays for another bubble to develop so he can kick the can further down the street.

Wed, 01/05/2011 - 13:40 | 849688 Thunder Dome
Thunder Dome's picture

Harry Wanger is by far the best troll on Zerohedge!  Many have come and gone that caused a lot of agitation.  None have stood the test of time though, like Wanger.  Thanks for the comedy.

Wed, 01/05/2011 - 19:07 | 850820 SamuelMaverick
SamuelMaverick's picture

+1. Reading Harry's postings is like reading Marketwatch, Yahoo finance, and MS money all at once. 

Wed, 01/05/2011 - 13:48 | 849714 Dr. Gonzo
Dr. Gonzo's picture

"We were staring into the abyss."

Angela Merkle circa 2009

So "too big to fail" bank bailouts and moneyprinting saved us from the abyss and halted and then goosed the stock market freefall. What the hell is going to save us from the consequences of this last resort bubble of extend and pretend policy? A Totalitarian State? I guess go long on iron ore for all the prison bars we're going to need.

Wed, 01/05/2011 - 15:17 | 849747 Pez
Pez's picture

TBTF was a misnomer. They were really; "Too Far To Fall" TFTF.  I have yet to hear of a skydiver in free-fall with no parachute being rescued by a helicopter. Please direct me to You-Tube if there is a case. Please no posting of the Benank talking about QE II.

Wed, 01/05/2011 - 14:14 | 849823 PigsOnTheWing
Wed, 01/05/2011 - 14:19 | 849847 the not so migh...
the not so mighty maximiza's picture

BOOBIES!!!

Wed, 01/05/2011 - 14:21 | 849851 Don Birnam
Don Birnam's picture


Heilige Scheiße !

Those will make even the St. Pauli Girl blush with envy.

Wed, 01/05/2011 - 13:55 | 849757 Wheatman
Wheatman's picture

Rosenberg the treasury bull just lost another shitload on bonds today by going long in that worthless piece of crap market. The Treasury market is dead David.

Wed, 01/05/2011 - 14:02 | 849785 ghostfaceinvestah
ghostfaceinvestah's picture

The treasury market will have the rally of a lifetime if/when Bernanke stops printing money.

Stay long PMs and hard commodities until QE ends, then short equities and go long bonds.  There is no organic growth in the US economy, this is pure Zimbabwe until the printing press stops.

As it has been since March 09, except for a brief pause in April '10 when the MBS buys stopped (and look what happened then).

Wed, 01/05/2011 - 14:56 | 849946 Clapham Junction
Clapham Junction's picture

Agreed-but it won't be for at least a year, maybe longer.

Wed, 01/05/2011 - 15:31 | 850049 ghostfaceinvestah
ghostfaceinvestah's picture

The timing is in question, but at least it will be fairly obvious.

I think the Fed will get more and more pressure are oil grinds higher and higher.

Wed, 01/05/2011 - 14:12 | 849781 PigsOnTheWing
PigsOnTheWing's picture

Rosie is pissed. I'd be pissed too if I were positioned based on ideological economic dogma in this environment.

Don't fight the tape - just be hardnosed on those stops, and remain flexible in view of the eventual cabin depressurization. It ain't rocket science.

Wed, 01/05/2011 - 14:06 | 849796 Salinger
Salinger's picture

from an earlier thread

 

Rosie turns Bulllish (on Canada) LOL

 

The usually bearish David Rosenberg is unusually bullish — this time about Canada.

In his Tuesday note to clients, the chief economist at Gluskin Sheff + Associates said the Canadian dollar’s recent surge beyond parity with its U.S. peer, and “unprecedented” discounts on Canadian government debt compared to U.S. Treasuries, is a clear sign investors believe Canada is a safer place to park their cash.

Even though there are legitimate concerns about the overstretched balance sheets Canadian households are carrying,  he said consumer debt levels are “completely serviceable” at the present time.

 

http://bit.ly/h89WuO

Wed, 01/05/2011 - 14:10 | 849802 TruthInSunshine
TruthInSunshine's picture

Bernanke, Geithner, Lloyd and Jamie, all trading the same piece of shit stocks to each other, over and over.

Sounds like a plan with a real good chance at creating jobs and fixing the underlying holes in the economic structure!

Good luck to the Remoras that are swimming with the shark when the hammer comes down.

Wed, 01/05/2011 - 14:28 | 849868 CWulf
CWulf's picture

The depression is a figment of your e-magination: think of all those imaginary dollars monetizing our debts, those market evaluations of a stock prices based on e-maginary dollars.  Just calm down and take your meds: hyperinflation presents itself in mysterious ways. $50B is far too little for Facebook.

Don't forget it isn't the "too big to fails" that matter, it's the "too big to jails" heading for their escape hatches.  The just need to emancipate a couple trillion more to cushion their landing.

Happy New Year!

Sat, 01/08/2011 - 18:30 | 849937 Clapham Junction
Clapham Junction's picture

(d)

Wed, 01/05/2011 - 14:57 | 849954 Sherman McCoy
Sherman McCoy's picture

This guy is the herd. He can't even get a job at a decent company in the U.S. I feel sorry for all you people who didn't recognize the bottom on March '09. I'm sitting on massive profits while you're sucking sour grapes. Put a little more polish over there, and a lttle spit while you're shining my shoes. There's an extra dollar in it if you get it right.

Wed, 01/05/2011 - 15:06 | 849981 tmosley
tmosley's picture

EXACTLY how "massive"?  I presume you are talking about stock profits.  If so, you don't have shit on my 223% profits since that time.  That just happens to line up nicely with my dollar cost average from the last three years.  All this from just BUYING PHYSICAL SILVER.

So so easy.

Sat, 01/08/2011 - 18:29 | 850046 Clapham Junction
Clapham Junction's picture

(d)

 

Sat, 01/08/2011 - 18:28 | 850052 Clapham Junction
Clapham Junction's picture

(d)

Wed, 01/05/2011 - 15:00 | 849961 Sherman McCoy
Sherman McCoy's picture

This guy is the herd. He can't even get a job at a decent company in the U.S. I feel sorry for all you people who didn't recognize the bottom on March '09. I'm sitting on massive profits while you're sucking sour grapes. Put a little more polish over there, and a lttle spit while you're shining my shoes. There's an extra dollar in it if you get it right.

Wed, 01/05/2011 - 15:02 | 849973 maddy10
maddy10's picture

50 billion farts on farmville- that's what facebook's worth!

Maybe they can make some money by selling personal details of people to you know who's!

Wed, 01/05/2011 - 15:06 | 849989 FoieGras
FoieGras's picture

David Rosenberg is a great read and a sharp analyst but he wouldn't last 5 minutes in the trading pit.

Do NOT follow this link or you will be banned from the site!