This page has been archived and commenting is disabled.

Rosenberg On Why "Things Are Getting Interesting" And What Is Ailing The Market

Tyler Durden's picture




 

David Rosenberg provides the key bulletized market observations that have marked the broad capital markets over the past few months.

  • $950 billion of paper equity wealth has been wiped off the map in the past six weeks.
  • The Dow is below 12,000 for the first time since March 18th.
  • The Transports are down more than 8% from the nearby highs and are down for the year as well
  • The Transports/Utilities ratio has broken down to its lowest level since November 9th of last year.
  • The Nasdaq is now down for the year (-0.3%)
  • The Russell 2000 index is also down for the year (-0.5%).
  • The S&P 500 is just 1.1% away from seeing the same fate.
  • The S&P 500 has declined in each of the past six weeks, the longest losing streak since June-July 2008.
  • The S&P 500 has fallen below its 150-day moving average after breaking below the 50-day and 100-day trendlines earlier in this corrective phase; the 200-day is the next level of support.
  • For the Dow, this is the longest string of weekly declines since the Fall of 2002.
  • The total six-week decline in the broad market is nearly 7% ... a slow bleed.
  • Junk bond spreads widened 25 basis points last week, more evidence of risk re-rating.
  • Investment-grade bond spreads widened out 14bps and new issue activity ($0.63 billion) was the lowest of the year.
  • Bank of America is back to being a $10 stock after a two week 8% slide — how do the bulls dismiss this out of hand? It's the biggest consumer bank in the country.
  • In the past six weeks, Energy, Industrials, Materials, Financials and Consumer Discretionary have all rolled over significantly. The defensives have outperformed dramatically — Healthcare, Utilities, Telecom, and Consumer Staples.

The last bullet point is precisely in line with our May 16 proposed QE Unwind compression trade.

And here is what Rosie believes is ailing the market. Nothing really new here:

  • The economy is cooling off and there is no policy stimulus in the pipeline. Ben Bernanke did give a sombre assessment of the economy last August in Jackson Hole but at the same time threw Mr. Market a bone by hinting at a new round of liquidity expansion. Last week, the Fed Chairman delivered an even more sobering outlook and did not offer any olive branch this time around.
  • So here we have it economic deceleration but with no policy response. NY Fed President Bill Dudley also gave a speech that was very similar in tone to Bernanke — maybe even more cautious, and while repeating the refrain about second-half recovery prospects he listed an array of downside risks to that forecast. He, Bernanke and Yellen ('The Big Three') would love to do another round of QE (Yellen also gave a speech on Friday on housing) but the bottom line is that they are gun-shy after receiving so many complaints from foreign governments, Congress, Wall Street and Fed Bank Presidents that they just do not have the political capital to engage in more stimulus (though it will come at some point but maybe at a similar strike price as last August; dare we say, 1,040 on the S&P 500).
  • While the economists have cut their numbers, the equity analysts have yet to do that with their earnings numbers. That comes next.
  • Leading indicators are suggesting that we are in more than just a "soft patch" — the jargon of Wall Street economists. The ECRI leading economic index has fallen now for four weeks in a row!
  • Global cooling. The Chinese economy is also slowing down with auto sales declining now for two months in a row and the PM! perilously close to the 50 level. Retail sales in Brazil fell 0.2% in April, the first decline in a year and the news came on top of a sudden sharp slowing in industrial output. U.K. factory output fell 1.7% in April as well and France posted a surprising 0.3% drop in industrial production.
  • Tightening monetary policies to combat rising inflation pressure across the emerging market world.
  • The situation in Europe is untenable — Germany's finance minister is drawing a line in the sand and calling for some sort of Greek restructuring in which bond holders will also have to take a haircut. This has caused the ECB's Trichet to almost go apoplectic. Of course, the ECB is holding onto hundreds of billions of dollars of P.I.G.S. debt on its balance sheet so any haircut would render the central bank insolvent in its own right.
  • Threatening not to repo restructured debt is like saying to the Greek banking industry to kiss itself goodbye (a likely prelude to Greece exiting the eurozone, by the way). But Trichet is not elected, the likes of Angela Merkel and Wolfgang Schauble (the finance minister in question here who came right out and said a Greek restructuring is "inevitable") just happen to be, and it looks like the German taxpayer-funded bailouts are coming to an end. See Rift Over Greece Deepens in Europe on page B1 of the weekend WSJ. Some markets are starting to price in the inevitability of sovereign debt defaults in Europe, with 5-year credit default swaps soaring to record highs in Greece, Ireland and Portugal.
  • One can't help but think that the ECB rate hike (and the threat to do more!) will go down as a colossal mistake the same central bank made in the summer of 2008. Considering that most of Spain's mortgage market is variable-term and the housing market is beset with tremendous excess supply and downward price potential, the ECB rate hike is like a stake in the heart — to combat perceived inflationary pressures in Germany.
  • The slide in U.S. bond yields is telling you that an economic slowdown is here and here to stay beyond Q2, despite consensus views to the contrary. The fact that copper was down in the same week that oil was up says two things here — the former reflects the falloff in Chinese imports; the latter tells you a thing or two about just how thinly balanced the global demand-supply for crude is given that the move back to $120/bbl was all due to discord within OPEC in terms of whether or not to bump production up (looks like the Saudis will be going it alone).
  • Actually, it is all about discord here — within OPEC, Congress and the White House (see the editorial piece The Economy and Washington on page 8 of the Sunday NYT 'Week in Review' section), the confines of the Fed, the ECB and Germany, etc. Discord, instead of decision-making, in the current environment is not a good thing— leaving the financial markets in a heightened state of uncertainty.

Source: Gluskin-Sheff

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 06/13/2011 - 13:14 | 1365174 doomandbloom
doomandbloom's picture

buy the dip?

Mon, 06/13/2011 - 13:23 | 1365196 Hugh G Rection
Hugh G Rection's picture

crash to 10k, initiate QE3

Mon, 06/13/2011 - 13:25 | 1365203 SheepDog-One
SheepDog-One's picture

Yes and 'initiate QE3' this time much to everyones surprise will be the Treasury seizing all 401K's and pensions due to 'unforeseen extreme national emergency'...and what will anyone do about it? Nothin.

Mon, 06/13/2011 - 15:25 | 1365571 ElvisDog
ElvisDog's picture

Don't be ridiculous. That would ensure Obama's defeat in 2012. No way he gets past that. So, therefore, it won't happen.

Mon, 06/13/2011 - 17:15 | 1365666 ping
ping's picture

"...and we've just got this breaking news in the studio... President Obama has single handedly foiled a hijacking attempt on Airforce One, whilst it was carrying 100 orphans to Disneyland..."

"Well Bob, this can only increase his numbers before next month's vote - and especially after his bold decision to tackle teaching union terrorism, and once and for all stop them from mailing anthrax to bunnies, baby seals, and wherever your elderly mom lives."

"Sanda, I'd blow him myself, but the guy's just too darn classy." [Various hoots, cheers and 'woot-woots!' off camera.]  

"Coming up after the commercial: one plucky Detroit mom has come up with a smart way to make her Soylent Green ration go that little bit further!"

Mon, 06/13/2011 - 22:00 | 1366599 ImNotARobot
ImNotARobot's picture

I totally agree.  As far as I'm concerned, everything will remain "ok" until at least after the general election in 2012.

Mon, 06/13/2011 - 13:39 | 1365240 Cassandra Syndrome
Cassandra Syndrome's picture

Nail on the head. Where's them Dow 10,000 Baseball hats?

Mon, 06/13/2011 - 14:28 | 1365378 10kby2k
10kby2k's picture

This screen name was the first one i used on AOL (remember them?) in the 1990's. People laughed at me...10,000 by the year 2000? March 29, 1999 print close was 10,007. 10kby2k11.58 (July 31)? I can't predict the date, but we will see 10K again printed (in real dollar terms we already are below 10K)

Mon, 06/13/2011 - 13:54 | 1365286 Greater Fool
Greater Fool's picture

Would hold my chips here if market timing is important to you. If on the other hand you're looking for the longer haul then buying on the way down is always a tasty proposition.

Mon, 06/13/2011 - 13:15 | 1365176 Hugh G Rection
Hugh G Rection's picture

EE PM raid in progress!

Mon, 06/13/2011 - 13:28 | 1365199 ZeroPower
ZeroPower's picture

Um, no.

Not that EE raids exist in the first place anyway. Unless of course youre ready to admit there were EE raids which pushed it up to $50 in a heartbeat.

Mon, 06/13/2011 - 13:36 | 1365239 tmosley
tmosley's picture

Yes, actually.  Or rather, the opposite.  The EE disappeared, allowing the price to rise to $50, then slamming it to attempt to form a generational double top.

Look for increasing volatility with a downward trend, and increasing decoupling of the price of physical from the paper price.  Odds still looking good for a COMEX implosion by the end of July.

Mon, 06/13/2011 - 13:41 | 1365258 DoChenRollingBearing
DoChenRollingBearing's picture

Pretty good slamming of the PMs indeed!

One thing I like about your comments tmosley, is that you are better connected with the short term than the lonely Bearing who has no buddies around interested in PMs, etc.

OK, you walked the plank and made a prediction!  We'll all be watching, ESPECIALLY the decoupling of paper vs. physical.

The next couple of months may be a the last good opportunity to buy up the PMs, especially if YOU DO NOT OWN THEM NOW.

All aboard!

Mon, 06/13/2011 - 14:10 | 1365338 Hook Line and S...
Hook Line and Sphincter's picture

I think most of us are now resolute with the knowledge that the PM's can and will be steamrolled at will. Buy physical only now, and with money that is in excess of your core needs. Partake of Jamie's/Blythe's sourcream party dip with only un-leveraged fiat. QE3 will be used for jackhammering the PM complex . Expect robust physical shortages, obese premiums, and disinterested physical sellers. JP's shorts increasing again, and they've got the nuts of those on who rely on the compliance of those on the foodstamp program. All hail the Morgue until the maelstrom arrives.

Mon, 06/13/2011 - 14:09 | 1365350 ZeroPower
ZeroPower's picture

Agree to an extend regarding QE3 and PMs, but FYI, JPM actually benefited quite heavily from the move higher in commodities; silver included.

Mon, 06/13/2011 - 14:26 | 1365411 Hook Line and S...
Hook Line and Sphincter's picture

No doubt! On the way up and down. Volatility/Margin shaking out many small and mid-sized players. 

Mon, 06/13/2011 - 14:40 | 1365451 DoChenRollingBearing
DoChenRollingBearing's picture

An easy way to see some premiums (but the widget is quite imperfect) is at 24hgold.com at the very bottom of their home page.  (Note the "h" in there at 24hgold.com)

Their widget is a JV with eBay and shows current paper gold price vs. eBay asking price for both gold and silver coins.

Gold Eagles typically have been running 6% - 11% over spot.  Silver Eagles 15% - 25%.  The premiums seem to vary without rhyme or reason, but it is EASY to check, and if/when the physical starts getting scarce, you can follow premiums there.

Mon, 06/13/2011 - 18:51 | 1366112 trav7777
trav7777's picture

eff that...just go to golddealer.com

There is no disconnect between paper and physical, despite mosely-claven's losing 1/2 of his entire life's savings in the silver bubble

Mon, 06/13/2011 - 14:11 | 1365334 ZeroPower
ZeroPower's picture

??

I was looking for your [sarc] comment but after re-reading your post a few times i haven't found it. You seriously believe the EE would have simply allowed the escalator up to $50, no big deal, and only THEN wake up, some 100% higher on the year, saying enough is enough at that point?

By that train of thought, why not drop it to $10/oz since the silver futures market is indeed very illiquid and not much money (as we've seen) can move it quite heavily.

Some big players did indeed allow (read: moved) the silver price to reach the near $50 highs. This is clearly evidenced not only by this occuring in too quick of a move (not a solid step higher/correction/step higher etc., as we'd like to see in a bull market) but also due to it being during a very, to say the least, awkward moment in the markets as it was Easter weekend, so even lower market depth than usual. Im afraid this isn't simply an observation on my behalf but true facts. I can also confirm the most heavily involved commodity desk (not hard to guess who) was also partially responsible and reaped large profits in this move.

We're in agreement on your penultimate point. Vol has just started to increase, and the trend is indeed down. Ive been looking at a 200DMA test as my own 'prediction' though prediciting is a fool's game, so ill still be happy with a retest around the $32s area.

I dont believe the COMEX will ever implode as that would signify the end game for the massive amount of commissions and fees available to the PBs and all major banks involved with a commodity desk. Simply no other exchange as liquid as the COMEX, so TPBT won't let this happen. On that thought, perhaps its wiser to say TPTB are heavily involved in the commodity markets. But an EE reminds me too much of fiction, such as Star Wars.

Holding SLV puts here for full disclosure, as i have ever since the $40s (that hurt, at first) and then $45s.

Mon, 06/13/2011 - 14:30 | 1365394 tmosley
tmosley's picture

The lower it goes, the more physical they have to deliver.  This is a classic rock and a hard place dilemma for them.

The point of all this is to try to shake out the open interest.  Don't pay so much attention to the price.  That is not important at this point.  All that matters is the OI, and the inventory.  Panicking into or out of the silver market based on price fluctuations is only going to bankrupt you.  Just watch the inventories and the OI.

And yes, the COMEX will implode, just like Lehman Bros did.  They will be bailed out, and paper will be allowed to be delivered en masse.  But that is still a default.  No amount of "earned" "money" can stop that.  Those who seek actual physical silver at known prices, and those who have actual, physical silver to hedge will simply be forced to move elsewhere.  The HKMEx is likely to start trading silver soon enough, and the higher price and physical availability will drive the hedgers and the users there, respectively.  We should see some real fireworks then, as the speculators are FORCED to follow (as they will have no-one to sell their contracts to at the end of the front month).  Already we are seeing arb opportunities on the gold contract that aren't being closed.  There is a reason for this.

SLV puts are good, because SLV is a fraud vehicle, and your puts will not be harmed by their bankruptcy, where COMEX put options would be destroyed by a COMEX bust, though there is still risk.  Short SLV, long physical metal is good as well.

Mon, 06/13/2011 - 15:37 | 1365602 ZeroPower
ZeroPower's picture

Used to watch OI a lot more 'religiously', moreso when wanting to hold size, but realized after a bit its very cyclical as well. 

As for COMEX implosion (haven't seen you pin a date, i suppose July is your closest approximation), ever since i started following the whole farcical "it will implode!!!1" comments ive seen people change the month of implosion from, oh, say, Jan 2010 and every month following. If the theory read online is correct regarding amount delivarable, OI, and how cash settlement is affected in between, then perhaps, in theory, it might default. But as i explained above, TPTB have too much at stake to allow this, so perhaps my pessimist towards this whole idea of a default.

Short SLV (for a little while longer IMO) and then always long physical-->you bet. Not against any proven facts such as dollar printing and consequent devaluation. But by that same token, prefer gold tons more.

Mon, 06/13/2011 - 15:54 | 1365643 tmosley
tmosley's picture

I have no doubt that OI is cyclical.  But inventories aren't.  You need both to tell the full story.

The COMEX almost collapsed in 2008.  The recent scare started in December, when the COMEX did, in fact, default, as contracts began being served as shares of SLV or cash rather than delivery of physical silver.  We have had defaults of this type on every delivery month since.  It can't last.  

This is NOT normal, and anyone who tells you it is is incompetent, a liar, or both.

Mon, 06/13/2011 - 18:50 | 1366118 trav7777
trav7777's picture

so, IOW, they are indistinguishable from you.

Your shameless pumping cost gullible rubes thousands, man.  How can you live with yourself?

Mon, 06/13/2011 - 19:33 | 1366226 jackinrichmond
jackinrichmond's picture

the lbma had a 'failure to deliver' with nickel back in the 90's.   it's worth googling that story if you want to get an idea what happens when commodity exchanges default.  

the story indicated that there were unusually wild price swings and interventions prior to the collapse.   the story reads a bit like the current silver story.

if it happened at the lbma, it could happen at the comex.

Mon, 06/13/2011 - 19:53 | 1366264 Hugh G Rection
Hugh G Rection's picture

Comex Implosion: September 11 2011

Mon, 06/13/2011 - 15:41 | 1365608 ZeroPower
ZeroPower's picture

dp

Mon, 06/13/2011 - 18:46 | 1366105 trav7777
trav7777's picture

ROTFL...it's only "manipulation" when it's going down.  You dumbass

Mon, 06/13/2011 - 13:24 | 1365200 ZeroPower
ZeroPower's picture

dp

Mon, 06/13/2011 - 13:39 | 1365253 slow_roast
slow_roast's picture

You "Turdites" are looking more and more foolish by the day; following a guy named Turd was dumb enough in the first place, following him like he actually has a clue could be fatal.

Mon, 06/13/2011 - 14:25 | 1365408 tmosley
tmosley's picture

You do realize that silver is up almost double from when he started that blog, right?  And that is just spot.  Physical premiums are quite a bit higher as well.

Mon, 06/13/2011 - 18:51 | 1366120 trav7777
trav7777's picture

no, they aren't.  Physical premiums are not markedly different than before the bubbly runup that you conned everybody to buy into "with both hands."

49 by the end of last month and 60 by next week?

Mon, 06/13/2011 - 17:54 | 1365956 long-shorty
long-shorty's picture

I will join them. Long some SLV puts.

Mon, 06/13/2011 - 13:20 | 1365179 SheepDog-One
SheepDog-One's picture

And on top of all that, world war nuclear exchanges are about to commence! 

Mon, 06/13/2011 - 13:19 | 1365184 Hugh G Rection
Hugh G Rection's picture

Thats good news, radiation is bullish

Mon, 06/13/2011 - 14:15 | 1365359 Hook Line and S...
Hook Line and Sphincter's picture

My newly establish business should do just fine. I've recently opened up a cockroach breeding/protein bar manufacturing center.

Mon, 06/13/2011 - 16:04 | 1365661 jerry_theking_lawler
jerry_theking_lawler's picture

bullish, as long as the government keeps doubling the legal limit every few days....

Mon, 06/13/2011 - 13:19 | 1365186 anony
anony's picture

I think it's awesome, remarkable, and halleluia happy that a trillion dollars leaked out of the market the last 6 weeks and yet my life hasn't changed one iota. Nor has anyone's I know.

Maybe all these trillions aren't so important after all.

 

Mon, 06/13/2011 - 13:21 | 1365191 SheepDog-One
SheepDog-One's picture

Yea, where did that trillion go? Not to me or anyone I know, thats for damn sure.

Mon, 06/13/2011 - 14:18 | 1365372 Hook Line and S...
Hook Line and Sphincter's picture

Sheeps, are you an ingrate!?

Part of it went to keeping the illusion alive for my buddies, another portion went to suppression of Au so I could purchase it while it still is avail (thanks TPTF), and a small amount went to my cousins in Europe who got to take their 6 week vacation.

Mon, 06/13/2011 - 14:25 | 1365392 Mad Cow
Mad Cow's picture

Deflation for Wall Street? ;)

Mon, 06/13/2011 - 13:37 | 1365232 Greeny
Greeny's picture

" halleluia happy" - enjoy tanking Silver and Gold

as well.. What are you happy about? This correction

will end up soon. Keep hiding under the rock.

 

Mon, 06/13/2011 - 13:23 | 1365188 SheepDog-One
SheepDog-One's picture

Consumer retail stawks rolling over? No that cant be! Just last week RoboTrader was hella pumping and bragging about them!

When markets continue down and at some point have a big dump along the way, the answer will be seizing 401K's and pensions. Mom and pops comfy retirement at The Villages is cancelled.

Mon, 06/13/2011 - 13:26 | 1365208 Cdad
Cdad's picture

Consumer retail stawks rolling over

http://www.youtube.com/watch?v=__VQX2Xn7tI

Mon, 06/13/2011 - 13:44 | 1365256 Cognitive Dissonance
Cognitive Dissonance's picture

Brother Cdad has officially outed himself as an old fart.

Welcome to the club. Please stop by the front office to sign in and pick up your secret decoder ring. This week's password is "fiat".

Mon, 06/13/2011 - 13:46 | 1365273 DoChenRollingBearing
DoChenRollingBearing's picture

Does that include those of us old guys in the Tinfoil Hat Brigade (Lunatic Fringe Battalion as chosen by the readers at my blog)?

I heard from a Superior today.  She told me to use the Force.  OK...

Mon, 06/13/2011 - 14:02 | 1365304 Cognitive Dissonance
Cognitive Dissonance's picture

The only requirement for "old fart" membership is a degraded mental capacity, a propensity to fondly remember songs from the 1970's or earlier and plenty of natural gas. Tin foil is optional, but most definitely not discouraged. :>)

No open flames please. Only you can prevent natural gas explosions.

Mon, 06/13/2011 - 14:07 | 1365344 Rusty Shorts
Rusty Shorts's picture

Montrose - "Paper Money"  http://www.youtube.com/watch?v=580GyjDTlc8

 

I play the game of a rich boy,
I buy everything I can.
My bankroll is a foot thick,
I'm a wealthy man.
A million dollar reserve note is right there in my hand
And I can't stand to think...it's all that I've got.
Take away all my silver
Take away all my gold
And hand me a stack of paper
Paper money don't hold. Paper money don't hold.
Well, you act as though you don't remember
The way it all used to be.
Now one man, he locks up the money
Another man holds the key.
My car cost me fifteen grand,
Some say I got a deal.
Melt it down, I've got a thousand pounds of junk
And ten dollars worth of steel.

 

 - Did I win?

Mon, 06/13/2011 - 14:50 | 1365479 DoChenRollingBearing
DoChenRollingBearing's picture

A guy I knew in HS actually tried that, lighting one up.  Yes, they are flammable, he singed himself pretty well...

Mon, 06/13/2011 - 15:20 | 1365566 Cognitive Dissonance
Cognitive Dissonance's picture

Thank God the vast majority of us survive(d) our teen years more or less intact.

Mon, 06/13/2011 - 14:01 | 1365307 Cdad
Cdad's picture

My enlarged prostate gland is offended by this insinuation, brother Cog.

 

Mon, 06/13/2011 - 14:01 | 1365318 Cognitive Dissonance
Cognitive Dissonance's picture

'Prostate" is next week's password. Don't get ahead of yourself Cdad.

Mon, 06/13/2011 - 14:13 | 1365366 Cdad
Cdad's picture

Blast!  By next week, my prostrate gland will have swallowed my colon entirely.

And which one of you bastages stole my Geritol bottle?

Mon, 06/13/2011 - 14:20 | 1365380 Hook Line and S...
Hook Line and Sphincter's picture

Prostate massage does wonders. If you fondle several coins of gold concurrently there is a legend that magical things can occur...

Mon, 06/13/2011 - 14:44 | 1365469 DoChenRollingBearing
DoChenRollingBearing's picture

Hmm.  I'll have to give that one a try!

Mon, 06/13/2011 - 13:44 | 1365257 plocequ1
plocequ1's picture

SHLD is looking good today. Must be that Kenmore oven i bought last weekend. They make a fine product.

Mon, 06/13/2011 - 13:52 | 1365277 Greeny
Greeny's picture

f* doomsters you've been wrong 2 last years,

going to be no difference this time either.

This is nothing buy typical summer correction,

check back previous 2. You, bums, missed 100% run

in Equity, now trying to grab something on cheap.

we'll see. I say we'll be pushing new highs on DOW by

December.. Keep shorting.

Mon, 06/13/2011 - 13:57 | 1365305 fuu
fuu's picture

<points and laughs>

Mon, 06/13/2011 - 13:22 | 1365193 Boston
Boston's picture

Soft patch

Mon, 06/13/2011 - 13:26 | 1365206 Caveman93
Caveman93's picture

Green shits...doh I mean Shoots! Shutes?

Mon, 06/13/2011 - 13:26 | 1365210 SheepDog-One
SheepDog-One's picture

Chutes!

Mon, 06/13/2011 - 13:35 | 1365223 Caveman93
Caveman93's picture

Shit thanks! Time to cut back on the 8am Jack n Cokes!

Mon, 06/13/2011 - 13:49 | 1365280 DoChenRollingBearing
DoChenRollingBearing's picture

Yeah, 8:00 AM is a little early.

You should at least wait until 10:30 AM or so, after the market has been open an hour, you know, when you will REALLY NEED those J n Cs!

Mon, 06/13/2011 - 13:32 | 1365209 baby_BLYTHE
baby_BLYTHE's picture

Americans are flat broke!

How can the market go up much further after QE ends?

Even Bill Gross this morning on CNBC has no clue who will buy T-Bills come the end of QE2.

Gross also used the REAL government debt figure when talking about current and future obligations- 100 trillion+

Interesting times...

Mon, 06/13/2011 - 13:29 | 1365220 SheepDog-One
SheepDog-One's picture

Mom and pops is about to bail out the banksters again they just dont know it yet, in the form of their pensions and 401K's getting seized. The free money pump and dump is complete, now its time to pull the ETF pool rug out.

Mon, 06/13/2011 - 13:36 | 1365238 Mr Kurtz
Mr Kurtz's picture

Bill Goss interview on CNBC.

http://www.cnbc.com/id/43378973

Mon, 06/13/2011 - 13:40 | 1365255 baby_BLYTHE
baby_BLYTHE's picture

Not a huge fan of Gross, but this morning he redemmed himself IMO by using the real government debt numbers

Much of the public focus is on the nation's public debt, which is $14.3 trillion. But that doesn't include money guaranteed for Medicare, Medicaid and Social Security, which comes to close to $50 trillion, according to government figures.

The government also is on the hook for other debts such as the programs related to the bailout of the financial system following the crisis of 2008 and 2009, government figures show.

Taken together, Gross puts the total at "nearly $100 trillion," that while perhaps a bit on the high side, places the country in a highly unenviable fiscal position that he said won't find a solution overnight.

 

Mon, 06/13/2011 - 13:52 | 1365290 Cognitive Dissonance
Cognitive Dissonance's picture

Thanks. I had missed this. Here is the link for those who wish to hear it from the horse.

The discussion regarding the 'real' national debt starts around 4 minutes in.

http://video.cnbc.com/gallery/?video=3000027178

Mon, 06/13/2011 - 13:57 | 1365294 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Bill Gross will always talk his book.  But, anyone who speaks some truths is doing good.

I do not see how we get out of this without a lot of pain, even though I have been gloomy since Jimmy Carter.  Kicking the can has worked very well for decades now...  But, what do I know?  Remember, bearings have a hole in the middle, where a brain ought to be.

Mon, 06/13/2011 - 14:08 | 1365325 Cognitive Dissonance
Cognitive Dissonance's picture

You're thinking of a penis ring. Not that I would know................

Wait a minute, now I understand why you're in the bearing business. You sly dog. :>)

Mon, 06/13/2011 - 14:52 | 1365485 DoChenRollingBearing
DoChenRollingBearing's picture

You do learn to take your measurements VERY CAREFULLY...

Tue, 06/14/2011 - 05:45 | 1367149 Dejean Splicer
Dejean Splicer's picture

A couple of homos talking about cockrings. What an interesting blog this is.

Mon, 06/13/2011 - 13:27 | 1365211 Mr Kurtz
Mr Kurtz's picture

Might as well smoke some more dope...nothing else seems to be working!

Mon, 06/13/2011 - 13:40 | 1365224 SheepDog-One
SheepDog-One's picture

The Villages...americas FRIENDLIEST home town...The VILL A GES!!

YouTube - The Villages

Ah man this is gonna be sad.

And heres Americas Vice President doing The Villages drunken dance. Very sad times comin.

YouTube - The Drunk: Joe Biden drunk singing gaffe Obama vice president

Mon, 06/13/2011 - 14:58 | 1365494 SeanJKerrigan
SeanJKerrigan's picture

The Villages is one of Mitt Romney's top supporters... something like number 10 or so, right after about 7 or 8 banks.

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=n00000286

Mon, 06/13/2011 - 13:36 | 1365225 mendigo
mendigo's picture

obviously the markets were going to sink with the conclusion of QE2

the only question would be: is it a buying opportunity? the problem seems to be that there is a lot of money with no rational place to go.

Mon, 06/13/2011 - 13:40 | 1365243 SheepDog-One
SheepDog-One's picture

Just buy a membership at The Villages and live like a millionaire. Fuck it.

YouTube - The Drunk: Joe Biden drunk singing gaffe Obama vice president

Mon, 06/13/2011 - 13:56 | 1365303 DoChenRollingBearing
DoChenRollingBearing's picture

LOVL!

Mon, 06/13/2011 - 13:35 | 1365228 Ray1968
Ray1968's picture

Doesn't that mean that in six weeks, $950 Billion in "paper wealth" was created. 

And since I took such a beating with some "paper" silver and gold... the only words of wisdom I have are "HA HA - Screw you all! I'm going home" (in my best Cartman voice)

Mon, 06/13/2011 - 13:37 | 1365231 sbenard
sbenard's picture

Excellent summary and assessment of where we're at. Thanks ZH and David Rosenberg!

Mon, 06/13/2011 - 13:38 | 1365235 monopoly
monopoly's picture

Nice recap of what we know. Miner correction continues. Just being careful here on miners. RIMM at 3 year low on its way to 10?? Just the beginning me thinks.

Mon, 06/13/2011 - 13:58 | 1365300 Greeny
Greeny's picture

"RIMM at 3 year low on its way to 10??" It's going

to be buyout long before that probably at around $50/share+

Not own it, but it's plain stupid to say that RIMM going to

$10. If RIMM going to $10, then Silver going to $1.

Mon, 06/13/2011 - 13:59 | 1365308 fuu
fuu's picture

<points and laughs harder>

Mon, 06/13/2011 - 14:09 | 1365335 SheepDog-One
SheepDog-One's picture

RIMM has been totaly out dated technology for 2 years. Its crap.

Mon, 06/13/2011 - 14:35 | 1365437 SheepDog-One
SheepDog-One's picture

Silver cant go to $1, it costs $5 to dig it outta the ground after all.

Mon, 06/13/2011 - 14:51 | 1365489 DoChenRollingBearing
DoChenRollingBearing's picture

+ $5

Where is that guy MathMan now that he is in a position to gloat?

Mon, 06/13/2011 - 13:36 | 1365241 the grateful un...
the grateful unemployed's picture

WallSt is quietly cheering the bad economic news, (they realize that truth follows fiction, and they want to petition for QE3, which is more real than economic truth) So expect them to put the bad news out there this quarter. This is the prelude to election 2012, a story which begins with doubt, skepticism, and ends with blue skies, economic recovery, and the incumbent taking the oath.  There is twofold reason for this, one if the incumbent  can shape the election debate around the economy, and not a whole lot of other things, and he can turn the economy around six months before the election, his opponents criticism of him, and the publics doubt, are vanquished. the economy is an election year briar patch.

fortunately Ron Paul knows better, he is going after Obama on the War Powers Act. (which is shorthand for Presidential hubris.) If Obama turns the economy around the gloating will fall right into the wheelhouse of his attacks on the Obama Presidency, since most voters realize the economic numbers represent a shell game.

and should the market crash, when all the bloggers say it was, you can be sure we are in for a world of hurt. meanwhile this faux crash should set the stage, unless it gets out of hand.

Mon, 06/13/2011 - 13:45 | 1365259 SheepDog-One
SheepDog-One's picture

Yep all blue skies and sunshine for sheeple america. Sure the rest of the world is completely imploded and in hot shooting war, all will be pleasant and nice here though with BBQ's and golf courses and frosty beverages by the pool, thats just how it is here in america nothing ever goes wrong. And if something bad does happen, its resolved within hours and back to unicorns and rainbows.

Wow the people have no clue what awaits just around the next corner.

Mon, 06/13/2011 - 14:22 | 1365393 Hook Line and S...
Hook Line and Sphincter's picture

I do...

  • our children sizzling on the BBQ
  • golf course killing fields (then later replanted with edibles after been nourished by blood)
  • thirst for uncontaminated water by empty or algae covered pools (depends on part of country)
  • unicorns made into glue
  • radioactive rainbows

(OK, maybe not that bad)

 

Mon, 06/13/2011 - 13:36 | 1365242 williambanzai7
williambanzai7's picture

What, no Hindenberg omen?

Mon, 06/13/2011 - 13:41 | 1365244 Ray1968
Ray1968's picture

Yeah, that was quite the flop. Wasn't it?

Mon, 06/13/2011 - 14:38 | 1365443 Mad Cow
Mad Cow's picture

Fukushima? Plenty of hydrogen explosions there.

Mon, 06/13/2011 - 13:39 | 1365251 monopoly
monopoly's picture

It is not that easy is it? We have some chance of getting rid of Obams, don't we? The thought of turbo timmy around any longer makes me want to puke

Mon, 06/13/2011 - 16:03 | 1365656 Diogenes
Diogenes's picture

Tell all the people who voted for Obama to prove they are not racist, this time they have to vote for somebody else to prove they're not idiots.

Mon, 06/13/2011 - 13:42 | 1365262 PaperBear
PaperBear's picture

Mr Bernanke, please say the economy needs more QE.

You know you will have to say so sooner or later.

Mon, 06/13/2011 - 13:55 | 1365289 SheepDog-One
SheepDog-One's picture

Yes please say that Mr Bernanke! Id love seeing the ensuing total collapse of the dollar and bonds. Go for it Bernank, say it, I dare ya.

Mon, 06/13/2011 - 13:46 | 1365264 Growyourownfood
Growyourownfood's picture

How long before the market reacts to all this? Will the S+P drop 5% this week? Another 5% next week? Any thoughts?

Mon, 06/13/2011 - 13:47 | 1365266 PaperBear
PaperBear's picture

Paper silver low today of $34.49.

I trust that the COMEX is fast being emptied of registered silver.

Mon, 06/13/2011 - 13:52 | 1365267 zaknick
zaknick's picture

by SoNH80 
on Mon, 06/13/2011 - 11:47
#1364890

True, but it isn't enough to balance the insane costs of the ME-NA wars, occupations, kinetic non-war military actions, etc. etc.  The Saudis fear their own people, they fear Iran, that's why they are so cooperative with the U.S. government, their ultimate insurance policy.  Back in '73-'74, before the Iranian Revolution, the Saudis were kicking the U.S. in the butt over the Yom Kippur War.  Now, times have changed.  It's a Faustian bargain for both sides IMHO.

reply flag as junk (0) 

Wars are winding down? I only see escalation. Where do you see all the wars winding down?

reply flag as junk (0) 
 
by SoNH80 
on Mon, 06/13/2011 - 12:15
#1364958

Africa and Latin America.  Remember the Angola war?  The Guatemala/El Salvador/Nicaragua war?  The Congo war?  The East Timor war? They've all ended.  Even the Sudanese war has ended.  Things are heating up in the Middle East, but in many ultra-poor nations, things have gotten a bit more peaceful.  People are slowly rebuilding their lives.  The world is bigger than the U.S., Europe, and the ME-NA trainwreck.

 
by SoNH80 
on Mon, 06/13/2011 - 11:53
#1364924

Or, does the U.S. taxpayer serve as Santa Claus for the world?  Worth a thought...

reply **JUNK** (3)

Well, let's see here. Most of the wars you mention were AmeriKKKan bankster induced, especially the ones in the Americas. The 1973 oil embargo was a coordinated effort by the banksters and their puppets to save the recently dirty floated dollar after France and others demanded gold and the US defaulted. The highest ranking CIA officer to renounce their ways and publicly denounce them, John Stockwell (YouTube), was the guy heading the troublemaking for CIA banksters in Angola. All those piss poor countries you mention are really full of wealth to be raped except it's now called mining and free trade.

The Saudi's ultimate insurance policy against Iran is ISI and/or Chinese nukes. The Chinese already sold them the long range, nuke capable missiles.

The US taxpayer as Santa Claus? I really hope you stick to AMazon, Apple, LinkedIn, The Facebook & Netflix cause you know jack shit about the real world, the dollar or much of anything else.

Bit of advice: when attempting to formulate a cogent view of any real world situation, don't just stick to Murdoch's WSJ.

I bet you're one of those morons on tv asking Obamao,Palin etc for an autograph!

Matrix zombie opines arse with such gravitas and expounds at length on his own stupidity!

Mon, 06/13/2011 - 14:46 | 1365457 SoNH80
SoNH80's picture

The banksters have us by the balls.  We are in deep trouble.  The stock market is a joke.  But you are a paranoid schizophrenic.  The reality is bad enough without having you add your little bus station waiting room rants about ray gunz and lazerz and hidden planetz and jooz.  I've forgotten more about history, investing, and economics than you'll ever know, and believe me, the middle class American taxpayer is being raped, and will be raped, for a very long time, largely for the various Elite world domination projects.  BTW FU.

Mon, 06/13/2011 - 14:58 | 1365499 SoNH80
SoNH80's picture

And, please don't shoot off with a 60,000 word response.  You win, you win, I am a NWO-Rothschild-Matrix guy with a trench coat and everything, you did a good job of sniffing me out.  I give up, oh tribune of truth, justice, and the nazi way.  Keep those 95 comments an hour coming, Zaknick and Sheepdog!

Mon, 06/13/2011 - 13:50 | 1365274 SheepDog-One
SheepDog-One's picture

Im involved in that thread. There are no wars winding down we are in fact on the eve of WW3. Whether or not people want to wake up and realize it is not my problem. 

Mon, 06/13/2011 - 13:58 | 1365299 zaknick
zaknick's picture

Guy's a moron. Faux News/ Wsj bankster Matrix baby.

Mon, 06/13/2011 - 14:03 | 1365314 SheepDog-One
SheepDog-One's picture

Most people are today, even otherwise intelligent ZH posters get swept up in the matrix that all is well, we'll just do more QE nevermind TARP TALF QE1 QE2 QE3 have all failed totaly and Europe is re-imploding, and the economy here is sinking like a boat anchor. More imaginary money ought to do the trick. Seriously want to grab people by the neck and strangle some sense into them.

Mon, 06/13/2011 - 16:50 | 1365402 The Profit Prophet
The Profit Prophet's picture

True dat SheepDog.......sometimes it's better just to play along with the halluncination...

http://www.youtube.com/watch?v=A7F2X3rSSCU

T.E.I.N. everyone!

Mon, 06/13/2011 - 15:00 | 1365502 SoNH80
SoNH80's picture

Yes, WW3, next week, brought to you by Xerox and Alcoa.  I can't wait, I have my popcorn and escape pod ready.

Mon, 06/13/2011 - 13:55 | 1365301 zaknick
zaknick's picture

Guy's a moron. Faux News/ Wsj/banksterMatrix baby.

Mon, 06/13/2011 - 14:45 | 1365476 SoNH80
SoNH80's picture

The 4th time's the charm?  You are a less polished version of Hamy Wanger, why don't you try to say something coherent and non-schizophrenic for once?  Since when is a pro-liberty, pro-PM, pro-Constitution commenter (me) a "Matrix" type?  Or is the Constitution also a big trick, a conspiracy?  I guess you have a beef with anyone who hasn't forgotten to take his little special pill.

Mon, 06/13/2011 - 13:48 | 1365278 drswhaley
drswhaley's picture

"Bank of America is back to being a $10 stock after a two week 8% slide — how do the bulls dismiss this out of hand? It's the biggest consumer bank in the country."

They bury their heads in the sand.  They call it a buying opportunity. 

Even after it was clear that the Mavs were going to win last night, I'm sure the Heat cheerleaders were cheering.

Ok, maybe not.

Mon, 06/13/2011 - 13:50 | 1365284 SheepDog-One
SheepDog-One's picture

He sees the wars in Africa winding down? Looks to me like Libya is pretty hot, thats spreading to Syria any day now where Iran will get involved, therefore Russia and China also get involved. Hey if people want to say 'all is well' I say good luck to em, theyll need it big time.

Mon, 06/13/2011 - 16:04 | 1365660 SoNH80
SoNH80's picture

I was referring to the Congolese and Sudanese wars, which have wound down.  Why do you act like a 6-yr old kid waiting for the Saturday Morning cartoons to come on in waiting for the end of the world?  Hasn't it occured to you that the decline of the U.S. economy has been a long process, and though I expect it to accelerate, it won't necessarily follow your expectations for timing?  You may want to have sex at some point, it seems like you spend an awful lot of time here.

Mon, 06/13/2011 - 13:57 | 1365293 Fortunes Favor
Fortunes Favor's picture

lets not forget the carry trade and its predictive powers. The markets vs the AUD/JPY seems ovder sold. The carry still in uptrend holding above key 84 support ares. 

Read more @ http://rosenthalcapital.com/blog/2011/06/credit-carrytrade-preciousmetals/

Mon, 06/13/2011 - 13:58 | 1365295 kito
kito's picture

on another note, bernankes wet dream is happening now in the midst of reality. stocks up and commodities, including safe haven gold, are getting obliterated. if this keeps up, tyler's qe3 prophet may never come.  

Mon, 06/13/2011 - 13:56 | 1365302 SheepDog-One
SheepDog-One's picture

DOW up +18? Wow youre really a great troll Robo, you dont disguise yourself very well though.

Mon, 06/13/2011 - 14:04 | 1365331 kito
kito's picture

yes, youve outted me sheepdog. what do i do now that ive been discovered a as a mole for the nefarious rothschilds family?

Mon, 06/13/2011 - 14:07 | 1365339 SheepDog-One
SheepDog-One's picture

I doubt youre a Rothschild family member, if you were you'd be too busy molesting children to post here.

Mon, 06/13/2011 - 14:54 | 1365495 DoChenRollingBearing
DoChenRollingBearing's picture

Touché!

Mon, 06/13/2011 - 14:13 | 1365351 kito
kito's picture

oh and dow is up 40 dawg, while everything that hurts the bernankster is plummeting. as i said no qe3 this year.....

Mon, 06/13/2011 - 14:11 | 1365355 SheepDog-One
SheepDog-One's picture

OMG! DOW up 40? Well then all is truely well....

Mon, 06/13/2011 - 14:28 | 1365406 kito
kito's picture

im sorry dawg, but the perceived liquidity crunch thats imminent and will wipe out the equity markets (despite the fact that corporations are cash rich and reporting decent profits), and usher in qe3, is not happening today. that is my point. my point is not that all is well.

Mon, 06/13/2011 - 14:33 | 1365429 SheepDog-One
SheepDog-One's picture

No, QE3 is not happening today, or any other day for that matter. At least not in the form everyone expects. Next 'QE' will be in the form of mom and pops 401K and pension being seized. Anyone who thinks they printed up all these trillions to ensure their cozy retirements at The Villages is smokin too much crack.

Tue, 06/14/2011 - 01:16 | 1366959 Fiat2Zero
Fiat2Zero's picture

This makes no sense. Inflating your way out of the problem exists so that you don't have to piss your constituency (or anyone) off in such a direct manner.

Seizing 401Ks will create a lot of turmoil, politically and in the market itself.

I'm not saying this will never come to pass, but things will have to get a lot worse before this is tried.

A 20% drop in 401K values, and people will beg for the money pumps. Turning them on robs everyone, but only a little bit at a time. So why not print?

Mon, 06/13/2011 - 14:33 | 1365430 fuu
fuu's picture

DOW only needs +148 points to get back to Friday's open! Bernanke saving the day again!

Mon, 06/13/2011 - 22:20 | 1366657 knowless
knowless's picture

+.01% is so totally a gain. jeez everyone, why so pessimistic?

Mon, 06/13/2011 - 14:05 | 1365311 sbenard
sbenard's picture

Finally we get the daily Pollyanna Party. What took them so long? But it's looking a bit too parabolic, unless some news event has shocked the market and everything is now all good again. I have my doubts!

Mon, 06/13/2011 - 14:04 | 1365317 FOREX loop.
FOREX loop.'s picture

And of course, silver is going apeshit...down. I'm planning to sell some of what I have, and pick it back up further on the downslope. I do believe its got long-term potential, but its down below !$35/oz major drop. I agree with this guy, except I don't think things are going to be as rosey and he paints them.

http://collegemessiah.blogspot.com/2011/06/remember-that-pistol-i-was-go...

I think teotwawki is closer than we think.

 

 

Mon, 06/13/2011 - 14:38 | 1365436 fuu
fuu's picture

How low will have to go to make taking the cap gains hit and transaction fees associated with the sale profitable?Do you think it will go that low?

Mon, 06/13/2011 - 14:57 | 1365506 DoChenRollingBearing
DoChenRollingBearing's picture

Da Monkey With Da Gun is right.  Don't sell your silver.  

Want to speculate?  Jump in the pool with the sharks and buy or short SLV.

Mon, 06/13/2011 - 14:01 | 1365322 Greeny
Greeny's picture

+33 now.. This Market so far nothing but Daytraders.

I'm loading on PM stocks slowly, will make nice buck

by the End of the Year, while you doomsters keep hiding

under the rock and pray for collapse.. "Anyone who bets

against America will lose" - W. Buffet..

Mon, 06/13/2011 - 14:03 | 1365324 SheepDog-One
SheepDog-One's picture

LOL fuck W Buffet that old insider fart.

Mon, 06/13/2011 - 14:14 | 1365370 buzzsaw99
buzzsaw99's picture

Buffett bets against the usa every day.

Mon, 06/13/2011 - 14:05 | 1365323 King Durian
King Durian's picture

Long Bitcoins, bitchez!! 950 B of equity was wiped out, time to get into a deflationary currency!

It's quite prudent to put in 5% of your net worth into Bitcoins, and to build your position from there. When

you make a gain, pour the gains into the Bitcoin economy and buy something nice for yourself.

 

Oh yeah, and long gold bitchez. But remember about what happened when the goose put all of her eggs in one basket. Don't get monkeyhammered.

Mon, 06/13/2011 - 14:07 | 1365329 SheepDog-One
SheepDog-One's picture

'Bitcoins' just lost 65% of value overnite.

Mon, 06/13/2011 - 14:07 | 1365342 King Durian
King Durian's picture

And then bounced right back to a support level of 20. A young currency like this is going to have some volatility, I say ride the volatility and enjoy! Long term, the currency is architecturally deflationary in nature. So the overnight loss of value is transitory.

Mon, 06/13/2011 - 15:54 | 1365646 tmosley
tmosley's picture

Incorrect.  Any currency that is created out of thin air is supported by nothing but the faith of those who hold it.  All it takes for said currency to collapse is for people to lose interest.  "Deflation" only happens if interest/participation (as a % of the population) is constant (or growing), and the total economy grows.

Mon, 06/13/2011 - 22:32 | 1366689 knowless
knowless's picture

bitcoins are an attempt to make the immaterial material, through code and encryption, while i feel that this would be awesome, i also feel that some kid might crack the structure, and release a torrent of cancerous counterfeits.

my belief in physical reality being the sole determiner of worth disallows me from jumping on the digital bandwagon just yet, i'll probably cry over my loss in some years, but i doubt i'll be alone.

Mon, 06/13/2011 - 23:16 | 1366777 fuu
fuu's picture

Introducing a currency that you can not hold in your pocket and depends on electricity and an internet to exist.

 

It's not a currency you short, it's a currency you short circuit.

Tue, 06/14/2011 - 01:30 | 1366975 Fiat2Zero
Fiat2Zero's picture

Bitcoin - the new Flooz

Mon, 06/13/2011 - 14:08 | 1365345 web bot
web bot's picture

Not a lot of comments lately on Silver... nothing's changed... praying for $20 Silver, I may even take it at $25.

Nothing's changed... still on the slow motion train wreck.

Tue, 06/14/2011 - 01:17 | 1366964 Fiat2Zero
Fiat2Zero's picture

Well, a good buying opportunity is coming up.

Silver, in addition to being real money, currently has that speculative aspect that makes it very fun when it's zooming up, and not so fun when it's going down.

Commodities need to get smacked down for QE3 to start. Silver, being more speculative than gold, is going to get smacked worse.

The EE _is_ involved in pushing the price down, but I'd imagine they don't have to do as much with the risk OFF going on right now.

Deflation first, then Hyperinflation.

That said, I can't see silver going below $32. $20 silver is a total wet dream. If silver is at $20, we accidentally got in the hot tub timemachine and went back 2 years.

Mon, 06/13/2011 - 14:17 | 1365384 12ToothAssassin
12ToothAssassin's picture

w00t just placed my first order for silver eagles! Better late than never...

Mon, 06/13/2011 - 15:03 | 1365522 DoChenRollingBearing
DoChenRollingBearing's picture

Very good, congratulations.  Buy silver and gold as your income permits.

Tue, 06/14/2011 - 01:32 | 1366978 Fiat2Zero
Fiat2Zero's picture

I gave a couple of my friends a single 1 ounce round. I told them to carry it around in their pocket for a few weeks.

After you feel a 1 ounce round for awhile, you start to realize "hey, this is what money feels like."

That's the idea.

Mon, 06/13/2011 - 14:23 | 1365401 NOTaREALmerican
NOTaREALmerican's picture

Scotty,  we need more optimism!

Captain,  I'm given `er all the optimism we've got.

We need more, Scotty.

 

 

Mon, 06/13/2011 - 15:04 | 1365508 Northeaster
Northeaster's picture

This Scotty?

    "Thank you for contacting me with your concerns about the Fiscal Year (FY) 2011 Continuing Resolution (CR) and its impact on the Consumer Financial Protection Bureau (CFPB).  I value your input and appreciate hearing from you.

     The Dodd-Frank Wall Street Reform and Consumer Protection Act [P.L. 111-203] was signed into law by President Obama in July 2010.  Among other provisions, this legislation established the CFPB as an independent bureau within the Federal Reserve.  The CFPB regulates consumer financial products and services in compliance with federal law.  I support the mission of the CFPB and hope that its authority will be used to effectively protect consumers.

      As you may know, the CFPB is not subject to the appropriations process, but instead, it is funded principally by transfers or fees generated by the Board of Governors of the Federal Reserve System.  Specifically, the Dodd-Frank Act places a cap on this primary source of funding for the CFPB by limiting transfers at pre-set percentages of the Federal Reserve’s operating expenses.  For example, in FY 2011 the limit is 10 percent (approximately $404 million) whereas in FY 2012 the limit increases to 11 percent ($445 million).

     You may also be interested to know that during Senate consideration of the Dodd-Frank Act, Senator Jack Reed (D-RI) and I worked together on a bipartisan amendment to establish the Office of Service Members Affairs at the CFPB.  This office will serve as a dedicated liaison office for military families within the CFPB so that members of our armed forces and their families can fight back when they are targeted by unscrupulous lenders or sold fraudulent financial products.

      Again, thank you for sharing your views with me.  As the budget and appropriations process moves forward, I will certainly keep your concerns in mind.  Should you have any additional questions or comments, please feel free to contact me or visit my website at www.scottbrown.senate.gov."

 

                                                                                                                         Sincerely,
                                                                                                                         Scott P. Brown
                                                                                                                         United States Senator

 


Mon, 06/13/2011 - 16:01 | 1365653 tmosley
Mon, 06/13/2011 - 15:09 | 1365528 spanish inquisition
spanish inquisition's picture

"The last bullet point is precisely in line with our May 16 proposed QE Unwind compression trade."

Risk on/Risk off works with QE on. The market is trying to figure out QE on/QE off trade right now. So the closer the S&P gets to 1000, the more excited the market gets with the thought of more QE? Kind of a weird inverse less is more logic being set up now..

Mon, 06/13/2011 - 15:14 | 1365551 Greeny
Greeny's picture

Amazing, dollar going down alone with Silver.

Everything upside down.

Mon, 06/13/2011 - 15:48 | 1365632 mfoste1
mfoste1's picture

gold and silver will sell-off just like everything else in a total collapse similar to 08. why dont people understand that? higher demand for  fiat USD(yes still the world reserve currency) causes all that is priced in USD to fall because it is exchanged for USD. These include, but are not limited to oil, gold, silver, copper etc. This is basic economics, and still people blinded by bullshit "analysis" do not understand it. Do some research of your own and you will figure a lot out.

Mon, 06/13/2011 - 16:01 | 1365663 tmosley
tmosley's picture

Those who look for carbon copy repeats of past events generally don't do well.

"It can't happen here."

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