Economic Re-Recession Short Candidate Search , Or The Search For Bernanke Policy Victims

Reggie Middleton's picture

I warned that Bernanke et. al., in thier non-stop disinformation parade will ultimately cause significantly more damage to this country's economic status for the benefit of the .01% before things get better. This brief article is representative of my attempts to take a position to monetize such a viewpoint should it come true.

 bernanke on unemploymentbernanke on unemployment

A few months ago I went I Went To The NY Fed To Illustrate The Lies Perpetrated By The Fed Chairman Himself. These lies centered around his purported aid to the general economy and in particular the labor market by pledging to buy $1B USD of mortgage back securities per month.

Now, I’m not going to get into how enriching MBS traders and banks holding fraudulent loans get’s Joe Sixpack a job in this diatribe, but those who are interested can join the conversation via the following:

What I do aim to accomplish in this piece is to illustrate the problems of such potential malfeasance in not only the consumer discretionary sectors (see Reggie Middleton's REALity TV #2 - Bernanke's Bank Bailouts Blow Up Consumer Discretionary) but a side variety of other investment sectors. You see, pretending you create jobs while waiting for an economic recovery that is still many cycle units away is a far cry from actually having real jobs that pay real people real money to buy real, tangible, useful things that help the real economy. Don’t hate on me, I’m just keeping it real!

The BoomBustBlog research team has performed another fundamental/forensic scan to uncover near to medium term Bernanke victims. We identified several main sectors and their primary segments. From that we drilled down into:
• Sub-sectors/segments
• Negative factors and their potential impact: factors driving negative outlooks
• Illustrative companies in each subsector (not the shortlisted ones): These are example Companies, with actual shortlisted companies being released to subscribers later this week via detailed exercise
• News articles/key comments from the sell side and independent analysts - includes supporting articles and key comments

The actual document is available to all paying subscribers here File Icon Economic Recession Short Candidate (Global Macro, Trades & Strategy). As promised, specific shortlisted candidates will be upcoming this week and throughout next week, but be forewarned that we are tweaking and improving the list even as I type this. For those that don't subscribe, here's an excerpt...

re-recession short candidate researchre-recession short candidate research

The illustrative companies above are pretty much common sense. Ethan Allen, who can't sell much upper middle class furniture in a recession and a faux housing recovery. Fossil, with trinkets and wares whose demand is generated almost solely by trendy name branding. Fedex, UPS and Ryder - all companies which are literally barometers of global economic commerce and health since they represent commercial purchasing and shipping. Below are some less obvious candidates, though...

transport short candidatestransport short candidates

 

Again, these are simply illustrative companies. Over the next week or so I will review those companies from this exhaustive list who have made it to the initial short list of Bernanke victims that:

  1. have underlying options trading,
  2. are liquid enough to short and
  3. still have enough meat on the bones to feast,

Subscribers can download the initial list in full, now - File Icon Economic Recession Short Candidate. Casual readers may click here to subscribe

Much more to follow... Don't forget Ruminations on the Fed, the Dollar, ZIRP, QE and Math vs Magic - Hey, Even Harry Potter Has Problems...