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Unmasking The Unintended Consequences Of US Central Planning

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Mon, 12/20/2010 - 15:53 | 819252 RobotTrader
RobotTrader's picture

I warned you guys who are shorting....

To watch the CRB Index.

New highs...

Mon, 12/20/2010 - 15:57 | 819264 Calvin Jones an...
Calvin Jones and the 13th Apostle's picture

Who would short right now considering what The Ben Bernank is doing?

Mon, 12/20/2010 - 17:23 | 819446 malek
malek's picture

You would only hold something like triple-short ETFs (because of limited downside risk) in a Nassim Taleb way: you loose a little money every day, but might make a lot of money some day.

Mon, 12/20/2010 - 21:50 | 819963 New_Meat
New_Meat's picture

"You would only hold something like triple-short ETFs ..."

because you can't do the fricken math!

Hold?

- Ned

Mon, 12/20/2010 - 16:27 | 819315 Ratscam
Ratscam's picture

sorry to interrupt but this is entertaining as hell, with the same message.

WORLD RAP NEWS NR. 6 - MUST SEE!

http://www.youtube.com/watch?v=hl4NlA97GeQ&feature=player_embedded

Mon, 12/20/2010 - 16:20 | 819319 InconvenientCou...
InconvenientCounterParty's picture

jeez. I think the name of the site is satirical, not literal. How can you be in this market and not be hedged? Shorting is one way to to that, no?

Mon, 12/20/2010 - 16:48 | 819379 bbtrader
bbtrader's picture

I'll take the short side on the ES, sometime B4 tomorrow morning.  Easy to manage with a tight stop.

Didn't you say to go long FXI?  Well, DID YA???

Mon, 12/20/2010 - 16:52 | 819384 Azannoth
Azannoth's picture

You where definitely right , but the Market is getting to hot to hold now

Mon, 12/20/2010 - 17:44 | 819493 SheepDog-One
SheepDog-One's picture

RainbowTrader is obsessed by a delusion that everyone except him must be 'shorting'. 

Mon, 12/20/2010 - 18:27 | 819575 the mad hatter
the mad hatter's picture

watch the insiders, don't watch the low volume melt-up. business leaders know that things are terrible out there. our craigslist job posting recently maxed out our HR inbox size.

i'm shorting EURUSD and ES.

http://unconstitutional.blogspot.com

Mon, 12/20/2010 - 19:57 | 819780 NotApplicable
NotApplicable's picture

Wow, now that's an economic indicator. I haven't checked our applications lately, but the last time I did, we were getting over 200 apps for our low-paying entry-level jobs.

Mon, 12/20/2010 - 15:55 | 819258 doomandbloom
doomandbloom's picture

' Trust Me..I know what i am doing'

Mon, 12/20/2010 - 16:49 | 819380 VegasBD
VegasBD's picture

Sledge Hammer

Anyone else remember that show?

Mon, 12/20/2010 - 15:59 | 819274 Miramanee
Miramanee's picture

Central planning, per se, always always fails:

http://www.youtube.com/watch?v=1Nm0p4vdpDs

Mon, 12/20/2010 - 16:02 | 819283 Arius
Arius's picture

BUT, this time is different...

Mon, 12/20/2010 - 16:01 | 819280 haskelslocal
haskelslocal's picture

Okay. Things suck. So what's your solution? Idiotic and madening rubbish.

Mon, 12/20/2010 - 16:04 | 819289 Arius
Arius's picture

no - just go along with the show...no solution, just explaining what the show is about (in case you missed it), and how it ends (if you want to get up and leave)...

Mon, 12/20/2010 - 16:20 | 819317 boooyaaaah
boooyaaaah's picture

who is this TPC guy? anyway

 

http://pragcap.com/

Mon, 12/20/2010 - 16:21 | 819320 boooyaaaah
boooyaaaah's picture

Home » Headline, Most Recent Stories

THE COMING MUNICIPAL BOND CRISIS 20 December 2010 by TPC 40 Comments

The following segment on 60 Minutes this evening is a must see. The segment covered the state and local funding crisis in the USA. Meredith Whitney was a special guest and predicted that the crisis would unfold in the “next 12 months”. Whitney says the states are susceptible to hundreds of billions in losses and local insolvencies could be widespread.

This is a particularly interesting development if it were to materialize.  Of course, municipal bonds have been very jumpy in recent weeks and as revenue constrained entities (unlike the federal government) the states have been hit particularly hard by the crisis.  The states are exactly like the nations of Europe so solvency is a very real concern here.  Their bloated budgets and out of control spending has created severe balance sheets concerns.  With a government that is leaning more and more towards small government it will be interesting to see if austerity impacts the US economy through the state funding channels.

We appear to have dodged a bullet in the form of maintaining a $1.3T deficit during this balance sheet recession (and through the coming calendar year), however, the risks at the state level remain largely unknown and difficult to quantify.  If the shortfalls are as large as Whitney believes it’s likely that we won’t have the political will for more bailouts.  Whitney believes the issues are potentially more frightening than the banking crisis:

 

Mon, 12/20/2010 - 19:24 | 819702 CrashisOptimistic
CrashisOptimistic's picture

This is not a crisis.  If this will result in a substantial increase in unemployment, then it is within the purview of Bernanke's second mandate.

He will buy munis.  That takes care of that.

The ramifications and horrors of that can be whatever you want.  It doesn't matter.  He will act to do what the mandate says is his job.  The only thing that can stop him are the new Fed board members about to take their seats.

Mon, 12/20/2010 - 16:12 | 819285 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

There are no unintended consequences with what this bunch of murderous criminals are doing. This has been planned in fine detail for decades, if not centuries and it's playing out with perfection, i bet they can't believe how well it's going. The planned World Government is literally a few more steps away.

Anything that appears to be an 'unintended consequence' is merely a consequences they don't care enough about to control via manipulation. Precious metals to the moon is an 'unintended consequence' of printing unbelievable amounts of money?  The elites, Rockerfellas, Rothchilds, Vatican et al behind this evil, are some of the biggest holders of precious metals. Hardly a bad consequence for them! Heads they win, tails you lose.

Bottom line, you're gonna pay with your wealth, liberty and life for their maniacal agenda.

Mon, 12/20/2010 - 16:24 | 819325 ghostfaceinvestah
ghostfaceinvestah's picture

Agreed.  What is hard to figure out is how much longer they will print money before the pull the rug out on the market again (after being positioned for it, of course).

Could be as short as a few months, as long as a couple years, really hard to tell.

Mon, 12/20/2010 - 16:26 | 819332 Sean7k
Sean7k's picture

I find it maddening, that we all feel like we have to soft pedal what is being done. "Unintended"? Without absolute proof of an action, we have to apologize for our analysis?

This is the problem with so much in America. We require ironclad proof before we allow action, rather than acting on probable cause when the problem is smaller and containable.

We can always go back and restart, but we can never undue the effects of bad policy. They remain with us forever. American leadership are dangerous to the world AND to ourselves.

I firmly believe that if we were to kill ever banker and politician tomorrow, the future would be infinitely better. Not perfect, but better than this cesspool of a country.

Mon, 12/20/2010 - 17:45 | 819496 merehuman
merehuman's picture

Agreed. Now we need to get of our ass and do it.

Mon, 12/20/2010 - 19:24 | 819705 Hugh_Jorgan
Hugh_Jorgan's picture

Human nature, my friend. History shows us, ad nauseum, that we always wait for the "train wreck" before we bother to do anything.

We are all born with a chronic case of cranial rectosis. The natural state for our head is parked firmly where we are unable to see or hear a storm gathering...

Mon, 12/20/2010 - 16:10 | 819290 TruthInSunshine
TruthInSunshine's picture

18 billion in daily POMOized tax dollars given to PDs with a mandate to 'wealth effect' America used to get stocks much higher.

Green Shoots, recovery summer/winter/fall, and Abby Joseph Cohen to all, and to all a Good Night!

http://dailybail.com/storage/goldman%20sachs%20treasury.JPG?__SQUARESPAC...

Mon, 12/20/2010 - 16:07 | 819292 RobotTrader
RobotTrader's picture

Tough to be short this market.

Especially when the Nasdaq and Russell 2000 are leading.

And market leaders are making fresh, new, world record highs.

Mon, 12/20/2010 - 21:53 | 819969 New_Meat
New_Meat's picture

you and Hickey

Mon, 12/20/2010 - 16:16 | 819307 gloomboomdoom
gloomboomdoom's picture

I am LONG AND HARD now.

not going to miss any more opportunities to make money.

I was buried alive shorting the financial last year. Thankfully I saved my ass and my family by buying gold.

I ignored the doomers since Sept and my account has been thanking me ever since!

sorry, I just don't have millions of dollars to speculate like some other more fortunate people. (You deserve it! I am not a leftist-Socialist-Marxist)

Mon, 12/20/2010 - 16:20 | 819316 TruthInSunshine
TruthInSunshine's picture

Good luck to you, and keep your stops short.

Try to at least believe you're fellow shark, if only for a while, and not chummy bait.

Captain Bernanke has never been wrong, and I'm 100% confident you will only be subject to harm for no more than 15 minutes, ever.

You will know the true meaning of long and hard soon enough, friend.

 

 

Mon, 12/20/2010 - 16:24 | 819328 gloomboomdoom
gloomboomdoom's picture

why would Warren Buffet and hundreds of other billionaries go on record saying "We were saved".

Bernanke already said "No Double-Dip" in 2009 and also that he wasn't printing money.

He was correct!

People upset that the COLLAPSE didn't happen now chose to ignore 2009 and just pay attention to "selections" that suit their doomer thesis

Mon, 12/20/2010 - 17:55 | 819512 SheepDog-One
SheepDog-One's picture

Buffet and Bernank say 'we are saved'? Yea pretty easy to say, when you can print billions at no expense and give it to yourself and Buffet. Jesus Christ, are you REALLY this nieve and gulliable?? If so, you have NO business around THIS market and are a clear and present hazard to yourself and all around you.

Mon, 12/20/2010 - 19:00 | 819639 delacroix
delacroix's picture

they meant they are saved, not you and me.

Tue, 12/21/2010 - 10:10 | 820620 RKDS
RKDS's picture

Well the question I want to ask you is why the market is supposedly going up but my stocks, outside of Ford, have been more or less stuck for about a year now.  And I don't mean stupid penny stocks or commodity speculation, I mean companies that do stuff - Philips, US Steel, AT&T, etc.

Tue, 12/21/2010 - 02:55 | 820409 I Am The Unknow...
I Am The Unknown Comic's picture

....ummm just to be fair to any newbies reading this and not yet into the fight part of the fight club....keep a close, constant watch and don't set your stops at 20% discount like I used to because you will get robbed in a flash crash like me.  I no longer place stops.  Rather, I close out most postions daily and am constatnly watching the market like a hawk, while reading ZH and others.  Lunch is at my desk.  Yours should be too, especially these days.  If you must place a stop, it damned well better be a limit order and not a market order.     

Mon, 12/20/2010 - 16:25 | 819331 tmosley
tmosley's picture

You get long and hard from taking it up the ass, eh?

Nice.

If you sold your gold and bought stocks, you've been losing, not winning.

Mon, 12/20/2010 - 16:33 | 819348 jus_lite_reading
jus_lite_reading's picture

As with an impotent body builder, without his daily Viagra, he won't stay hard and long for long.

I'm glad you are long and hard... 1/1/11 is gonna be delicious!

Mon, 12/20/2010 - 20:53 | 819875 1100-TACTICAL-12
1100-TACTICAL-12's picture

agreed no need to sit around crying. Tight stops , take profits regular, let the chips fall...

Mon, 12/20/2010 - 20:55 | 819878 1100-TACTICAL-12
1100-TACTICAL-12's picture

agreed no need to sit around crying. Tight stops , take profits regular, let the chips fall...

Mon, 12/20/2010 - 16:25 | 819330 RobotTrader
RobotTrader's picture

Homebuilders are the strongest sector today.

KB Home just broke out of a huge base.

Mon, 12/20/2010 - 16:32 | 819346 gloomboomdoom
gloomboomdoom's picture

Thank you Robo. You are appreciated around here <3. Certainly our doomers friends appreciate a pair tits (there is a reason chicks don't like you, doomies!)

 

Mon, 12/20/2010 - 16:33 | 819353 tmosley
tmosley's picture

Someone must have heard that I was paying a contractor to do some work on my garage.

http://www.youtube.com/watch?v=pnULS_KfCWE&feature=related Skip to 2:50 for the illustration.

Mon, 12/20/2010 - 16:42 | 819361 dryam
dryam's picture

That rise is only because of the rumors that the Fed is going to burn down 10% of all existing homes in order to help the supply & demand equation.  That Bernank is always playing 5 moves ahead of everyone else.

Mon, 12/20/2010 - 16:48 | 819377 Spalding_Smailes
Spalding_Smailes's picture

RAS' - April's high soon..?

Mon, 12/20/2010 - 19:02 | 819644 SwingForce
SwingForce's picture

Pablo honey, please come to Florida. Please?

http://www.youtube.com/watch?v=kus_2Al4Aw0

Mon, 12/20/2010 - 16:28 | 819336 haskelslocal
haskelslocal's picture

If I hear another POMO hawk say "with your tax dollars" I'm going to scream in vain "LIMBAUGH!" 

Seriously. It's not tax dollars owned by The FED in a fractional reserve system nor is in anything less than dilution. And it ain't my tax dollars, nor yours, nor your child or grandchild's. How well did you know your great, great, great, great great grandpa anyway?   

Mon, 12/20/2010 - 17:56 | 819515 SheepDog-One
SheepDog-One's picture

Yea? So your assertion is the FED banksters will eat the losses? Youre delusional.

Mon, 12/20/2010 - 19:53 | 819770 NotApplicable
NotApplicable's picture

While I can't speak for others, I believe the point was that the issue isn't repayment in taxed wealth (because there can be no real repayment), but theft from all present and future dollar holders due the dilution of purchasing power caused by monetary inflation.

In other words, it's a much larger problem than stated, but that term is used anyway because it is politically volatile.

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