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Thursday - Living in Ben's Stock and Bond Fantasy
Thursday - Living in Ben's Stock and Bond Fantasy
Ben's at it again, it's inflation times ten
It's the only thing that gets him by
His balance sheet grows, the economy slows
While the middle class is starting to die
Oh, but now we all are seeing
That everything he says is a lie
Don't want to spend our lives, living in Ben's stock and bond fantasy
Don't want to spend our lives, living on the edge of reality
Don't want to waste our cash, following sheep to the slaughter
Don't want to spend our lives, living in Ben's stock and bond fantasy
All kidding aside, what does it mean when our leaders lie to us? Is it because we are children, who simply can't handle the truth or is it because, if we were to know the truth, then perhaps we would begin to see the flaws in their leadership? Fortunately for us, Tom Cruise isn't the only person who's able to dig out the truth - let men of power get comfortable and keep talking long enough and you can get to the truth on your own.
Sadly, it is not 60 Minutes who is able to call the our Fed Chief out on his BS blathering on Sunday - it's Jon Stewart, who has to have his staff go through 60 Minutes' archives in order to uncover the very obvious double-talk coming from the guy who tells us how great things are going:
The Daily Show With Jon Stewart
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| The Big Bank Theory | ||||
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Aren't leaders supposed to inspire confidence in their people or is that just some old-fashioned thing I learned in grade-school? When you are running the World's largest fiat currency system, trust is pretty much all you do have going for you - unless you plan to resort to force, of course. Meanwhile, our friends at Zero Hedge are pointing out that Fed Doublespeak isn't just centered on printing money - just 30 days apart, we have The Bernank saying the following:
Rates began rising a few weeks ago as data began to suggest a somewhat stronger recovery than previously anticipated (stronger, not strong — we’re still looking at years of very high unemployment).They rose again in the past couple of days on the belief that the stimulus part of the tax deal would actually lift the economy to some extent.
For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance. Lower corporate bond rates will encourage investment. And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending.Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion.
As Zero Hedge says: "There you have it: lower rates are good for the economy and stocks, and higher rates are, wait for it, even gooder for the economy and stocks." It would have been "even gooder" if Jon Stewart had asked (I won't even pretend to expect 60 Minutes would ask a tough question) the Chairman: "Is it normal for the Treasury to print a fresh batch of 1Bn $100 bills?" I guess that's a question we can ask Timmy Geithner over at his blog.
Is it any wonder then, that money is POURING out of the markets at a terrifying pace, even as the PRICE (not value) of stocks continues to increase. At the moment, that money is not flowing back into bonds - it's flowing back into CASH, the cash I've been calling for for the past month and that's $85Bn out of the market so I don't think it's just PSW Members that are cashing in their chips here.
Be careful, Be Careful, BE CAREFUL is all I am saying. If you can find 3 crises in history where the people holding cash were sorry then please go ahead and keep buying but, if not, then really consider the advantages of getting back to cash and having a nice, relaxing holiday. Last week I put up 2 trade ideas that you can do with a very small cash commitment (using instead the spare margin of your sidelined cash) that can return up to 3,233% by April expirations if the market stays strong. If you can be mainly in cash and make a few small bets like that - you're not going to miss much on a rally, are you?
I realize that EVERYONE is telling you that now is the time to jump on the bandwagon and we are in a MSM spin cycle that is set to 11 on the positive scale but think about where we are in the year. Yes we expect a "Santa Clause Rally" - it will be tragic if we don't get one but we have options expiration next Friday (17th) and the following Friday is Christmas Eve (markets closed) and the next Friday is New Year's Eve, which will be dog slow so we're looking at a volatile week followed by 2 consecutive low volume weeks punctuated by long weekends - this is going to be very dangerous to trade under the best conditions and these are NOT the best conditions.
I listed some general concerns in yesterday's post and this morning I reviewed our "$10,000 to $50,000 Portfolio" for Members in an early Alert and I was LOOKING - REALLY HARD - for reasons to be bullish and I'm just not finding them yet. Are we heading up because of the extension of the tax cuts? We weren't heading down before they were extended and nobody is getting more money - just the same no money they couldn't live on before. How is that going to cause a mad rush by consumers to the silver, gold and oil store?
Extending unemployment insurance for 2M jobless people may delay the bankruptcy for a few more months but that too is not really a reason for our unemployed friends to rush out to Tiffany's, is it? Today we got in-line Unemployment Claims with "only" 421,000 jobs lost last week, which means we're still flat-lining on job growth. Zillow tells us that US homes have lost $1.7Tn in value this year but, as with the market, I will point out that value should not be confused with price as no one is buying these 37% discounted homes - even at these "values."
My Alert to Members already went out at 7:26 this morning so we're short and staying short regardless of this morning's pop. We should get another chance to short the oil futures off the $89 line and those QIDs should make for a nice double down in out $10K Portfolio into the weekend - it's going to be a wild week ahead - watch yourself!
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Holy shitballs, Batman!
Ron Paul has been named to head the domestic monetary policy subcommittee!
Not that I have my hopes set "too" high, but I'm having a beer right now to celebrate!
Huzzah! Huzzah! Huzzah!
http://www.bloomberg.com/news/2010-12-09/ron-paul-author-of-end-the-fed-...
To find out more about the Imminent Collapse of the U.S. Economy, watch this video "Politicians Spending Like Drunken Sailors, American Dream Dead, Collapse Imminent" at (http://www.youtube.com/watch?v=DpAbDtl_t1Y).
by Anonymous
you'd be smiling to if you got the bonus package these banksters got. what a bunch of useless criminal sacks of crap these individuals are. Unfortunately, they are in control now. But the ability of the American sheeple to put up with this crap? is well documented. We are absolutely screwed, blued , and tattoed. The only thing we can do, is obtain gold and silver to protect our assets. Then, sit back and watch everything collapse. And is IS going to collapse.
This will be reality soon.
http://www.youtube.com/watch?v=OTSQozWP-rM&feature=player_embedded
Phil is pretty smart but I'm not going to fight every central banker in the world. The market is rigged and a total sham but who wants to get crushed by the crowd. As more and more people realize this we'll have a crack up rally with air pockets of no sellers. 1000 point up days. The only sellers will be profit takers and the open interest in the futures with collase as no one will want to take the short side of the trade.
"Recently," said Bernanke, "the banks have been more aggressive in cleaning up their loan books by restructuring their acronyms. The American taxpayer should understand that the vagueness of derivative contracts is not a problem to be eliminated, but rather a source of institutional richness."
think about shorting this market...you are betting against someone who has unlimited funds to bet against you. they will allow these little spurts of selling to keep shorts believing it will actually go down, but at any second they just make more money available. and they can do it in so many ways that we can't even see. there may have been a free market when things did make sense, no more.
can't chase at these insane levels?...keep your powder dry and wait for the big bang when even ben's presses are overwhelmed and they all head for the exits together
when this market crashes, it'll start overnight, come morning, the phone lines and internet will be jammed or crashed. you won't be able to get out! there will be no warning!!
1. Will the Bernanke change his mind on the technicals? Impossible- He has a PhD.
2. Will the Bernake be stopped or removed? Maybe. Crack withdrawls will be mild in comparison.
3. If not stopped, will the Bernanke/Banksters continue to raise the stakes. Oh hell yes. There is still a ton of bonus money in an inflative environment. Inflation also has geopolitical benefits unless world war (x) starts.
major risk/reward for picking the right door. As it should be.
They will use force. They will kill millions if they have to. And to all you stupid suvivalists out there, I was in Iraq and you can't defend yourself from the govmint with a handgun or rifle. Our goverment will have it's way. I've got gold, silver, plane tickets and two passports, (I'm a dual national) just in case. No guns though. By the time the banksters are through there won't be much left to fight over.
Your survivalist / gun owner ad hom is bunk. The gun isn't to fight governments, its to shear the desperate sheep... and not depend on the po-po's to save me.
It will be scary the day even the average sheep investor stops believing in Helicopter Ben. The game of musical chairs will suddenly end. I would make a guess by around next fall.
for some strange reason, the suckers keep coming. know the truth and capitolize! :D
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