This page has been archived and commenting is disabled.
Can Bernanke Keep the Rally Going?
The markets are rallying today because Bernanke and the Fed meet on Wednesday and will announce their new policies (if any).
Someone might want to explain to them that the Nikkei just collapsed in spite of Central Bank policy. The bank of Japan announced it would buy $1.4 trillion worth of assets (roughly 25% of Japan’s GDP) in early April. The Nikkei has already wiped out almost all of the gains since that time.
Still, US bulls continue to hope that Bernanke will engage in even more QE, despite the fact the Fed has an $85 billion per month QE policy in place already, which comes to over $1 trillion in QE per year.
Given that the Fed’s balance sheet is already over $3 trillion and will be over $4 trillion within 12 months, one has to wonder just what Bernanke can do. His best bet is to retire in January and let someone else try and manage the mess he created.
So let’s see what happens on Wednesday. The markets will likely rally until then on hopes of more juice from Bernanke. But if he should disappoint at all (read: not announce something more or at least strongly hint at doing so) then buckle up.
For more market insights and commentary, visit us at:
Best Regards
Graham Summers
- advertisements -
wtf dude? You post six sentences mostly just to blast "Phoenix Capital." Ya so why did you not connect the dots of Japan saying they may not go forward with that shit, thus having that effect. Early Aprils almost 3 months ago but I see its still April 1st at Phoenix Capital. Words matter is the jist. Can't beat the wave, ride it.
www.thetalkativeone.com
Lets look it it objectively
The economic outlook is dismal
Inflation is way above the growth rate
Bond yields are tired at lows and looking to increase upwards
The BDI at 925 with oil prices at over 6 month highs
Chinese banks having over $2 trillion of bad loans and Chinese auctions having a bad day.
75% of the QE is going back to the Fed and the balance being used by the banks for speculation and not for the economy.
Greece in bad trouble, Cannot even afford to keep the National TV Channel open.
The talk of Bail ins and the paperwork done and being done is now on record.
Hardly any bank is lending to another bank.
No prosecution of any TBTF at all. Even with all the NSA spying and details. The Admin is in cahoots with the manipulation and the frauds
Nothing to back the dollar other than Ben's farts.
The situation in Syria now very serious. From trying to destabilze Syria, now provoking a Sunni- Shia war - the second Karbala.
No country trusts the US anymore after knowing that the NSA is tapping everything including Summit meetings
Detroit has filed the first default on $2.5 billion. Within the next 6 months the Munis are likely to be fully junk and possibly in the Fed's vaults if they choose to buy it also.
The talk of removal of all safe havens which are used by the hedge funds to avoid tax.
I guess this will do for the time being
better question, why would Bernanke want to keep the rally going? He just loaded up on gold after they depressed the price, [sproing]
It's amazing how many cannot see through to the Obowel Movement's endgame for the markets.
This bubble was designed to pop, the question is when......prior to the 2014 elections and blame it on the Republicans, or Obama pops it just in time to legitimize his third term after stealing the mid term election? Who's going to stop him?
Never let a crisis go to waste, and if there is no crisis manufacture one.......
btw, anyone know who mints the 2013 Indian head/ Buffalo 1 0Z silver rounds? I see them on sale for 23$
It is not a matter of Obama" blaming" the pop on the Republicans (although he will do so anyway), but a matter of a crash so scary that the sheeple will run crying to big mommy government on their hands and knees begging Obama to keep them alive with food stamps and rent assistance after the bottom drops out.
Golden state mint. Generic silver, as good as any other generic ounce.
In nominal terms the Bernank can do whatever he wants or "they" want done..... you on the other hand will be wiped out either way.. inflation or deflation. You will have lots orf "money" or no "money".. and won't be able to afford ramen noodles. http://tinyurl.com/mem7o7x
Exactly what value did this post provide? Asbolutely nothing. Graham - you really need to go back to the drawing board. For some time, your posts have been utterly devoid of merit.
Careful, Graham may pull a Doug Kass and leave his sheep cause he can't stand the negative comments.
agreed. 11 sandy vaginas red-arrowed you but the majority of VOTES on the article rates it nowhere above 2.5
Bernanke is weak and afraid to unwind his policy. The only thing he knows is to print to infinity. Thus he will retire from his position and leave the consequences of his actions to someone else.
I am sure that when he retires from his position he will sell everything in his personal portfolio.
The way doves sell their easing package is letting market scream first in order for the hawks to back off and DC to start to call in for more printing. I think we will see that card again here.
Exactly right. Ben will tighten, the economy will crash, the wealthy will make a massive grab of cheap assets. Then he'll print (or his successor will - the body in the chair is irrelevant) in response to "public demand" leading to serious inflation that's just short of hyperinflation. The wealthy will be insulated from all of it by their appreciating real assets, everyone else will be wiped out.
In the good old days, this kind of thing used to lead to revolt by the impoverished, but technology now spins off JUST ENOUGH cheap crap food and cheap crap TV to retard, literally, that ancient, noble response by the dispossessed.
On the other hand, sometimes, surprising things happen.
Surprising things do happen. If the crash starts in China, that will take down Europe, and the flight capital from Europe and China could be such a storm that ALL US markets soar incredibly higher. Remember, the world economy is a system of flows. The money has to go somewhere. Money only disappears when it is collected in taxes by its issuer or when it is Corzined in a bankrupt financial institution.
Yes and no. Money always needs to go somewhere but so much of what you see isn't money but crdit leverage...and some small losses means "money" is gone and then some...which is why in highly leveraged times as these, the capital doesn't exactly fly but sell to save the seed corn to leverage another day.
Your dead on, dead on. I couldn't have said it any better.
Head fake and then push the Easy Button.