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“To some this downturn may seem like a destructive event, the economic crisis is actually a constructive event that paves the way for the future … The stability of several major European banks has been seriously threatened and government leaders are in constant teleconferences to discuss how to halt the crisis. The US, on its part, has lost its status as AAA and 7 trillion dollars of stock value has gone up in smoke … Yet, a downgrading of the US creditworthiness and the loss of 7 trillion dollars of stock value really does not mean anything except that the numbers associated with certain papers have been depreciated. It is thus essentially correct when commentators say that so far the crisis has not had any effect on the ¨real economy.¨ The recent fall in the markets simply shocked the mental duality between abstract values and real values. There is however no reason to expect that it will be possible to limit the crisis to the ¨unreal economy¨. Thus, I expect that now also the real economy will be hit. How quickly this will actually manifest is hard to tell but I expect that events will lay the foundation for massive unemployment in many major Western countries (It is of course high already, but for many it has still been possible to keep on with the previous lifestyle). I also expect that there will be a large runaway from the stock markets and the stability of currencies will be negatively affected to a point where new radical solutions need to be considered … I think it is realistic that there will be some kind of political reaction to the developing chaos” - Carl Calleman
god bless graham......however, qe3 (4) is coming...
And WHY? See 0:52 for the reason!
Seriously, the "Easy Money" users will NOT be denied!
I firmly believe QE2 never ended. Treasury doesn't pay market interest rates on its debt or would you lend money at zero to a debtor with such a balance sheet. The whole thing is rigged.
Even the Chinese take note and are net sellers now. The freemarket for treasury debt is dead and will remain so.
In Sept. they are going to announce some new plans. Probably Q3, and nothing really much.
We keep pumping money but nothing is happening. We need some real fixes
Fuck this pathetic sales pitch, telling folk they are going to lose "EVERYTHING" then asking them to subscribe for a solution, fearmongering peice of shit...why dont you actually say something before you ask people to subscribe to your nonsense? which, by the way, i have done, and its a lot of bollocks. I unsubscribed immediately, you're just another punk trying to tease money from people. Fuck you and the donkey you rode in on.
ZH has bills to pay too, lighten up Bro! while you're at it click on Cramer
I walked through "crop Dusting"
Donkey?, I traded my donkey in on a Volt! Serial # 0000000004 btw.
I personally picked it from the "GM Field of Dreams"! A field of Volts stretching as far as the eye can see.
Epic rant, thanks for saving me the time. I don't know why ZH posts PCR's crap.
The same reason they publish ads with the image of Glenn Beck, for whom it is too kind to tar and feather.
Glenn Beck makes me think I picked a bad time to become a pacifist.
Don't worry about it. This is merika we do big things for those who do bad things. Rewarding failure is our specialty
Many years ago I worked for a large computer manufacturer whose CEO was an ex Treasury Secretary.
He messed up the company totally and was rewarded 20 millions dollars which in those days was a lot of money.
So this has been going on for a long time. Sheeple as usually are only concerned about who the next american idol is.
Decisions decisions...let me see, either choose between Grahams 27 day how to lose all your money, or read a quick guide on how to take a nice juicy dump that won't leave any stains on my arse? ..I think I will go with the dump manual!
I had been doing some bottom picking lately. In looking at the action in the long bond, I took that as the signal to stand aside.
It sounds like a train coming. I'm getting off the tracks.
Got a little short today....
So I guess Bernank has put himself in the pickle jar:
How does "I can raise rates in 15 minutes" coincide with "we are keeping rates at zero for 2 years" exactly?
Anybody in Congress with a brain (I know that is asking alot) should simply ask that question.
Quiver lip...you haven't seen anything yet.
And since I am "Rant On" mode right now how about Obama telling Perry to be careful about "threatening" the President of the Federal Reserve...Holy Shit we are fucked!
LOL nice point! 'Bernankes policy is both 'Extended ZIRP far as the eye can see extended period' coupled with 'I can raise rates in 15 minutes'
No you cant have it both ways.
Or maybe Ben is a Zen Kung Fu naster and using 'The policy of no policy' technique.
What a clownshow.
In two years, it will take him approximately 15 minutes to raise interest rates from the moment he makes the decision to do so.
this will solve everything:
Yeah, but at the exchange rate of 50,000 Quatloos/coin, who's gonna have enough Quatloos?
Your keyboard to god's ears, Phoenix. But....
What's the big mystery of what to do since the stock markets are going to crash?
Buy triple short ETFs with both fists, borrow all you can to get as much leverage as you can, and sit back with a mint julep in one hand somewhere in the Caribbean, and enjoy the carnage.
This is the time for all pessimists (being optimistic about a crash and cashing in on it, is hardly pessimistic) to shine on.
All nattering nabobs should relish the eventuality of what we have been predicting for 3 years.
But this report is free, immediate, and requires you to sign up for nothing.
We will however, for a small donation, send you a T-shirt that reads:
" Short people are dudes !"
signed by Jeff Bridges, hissownself, his photo on the back. Guaranteed to get you more babes.....
But wait......god wouldn't allow that to occur because it would make me way too happy.
The assumption seems to be that Jackson Hole 2011 will do what Jackson Hole 2010 did. My gut says no.
He won't dare announce anything big at Jackson Hole this year.
Everyone is saying that QE3 isn't going to happen; and yet the last FOMC minutes stated that the Fed will keep interest rates at near-zero levels until mid-2013..
How, pray tell, can the Fed keep rates that low without continuing to buy bonds with newly invented currency units...?
ZIRP is a form of easing whereby the Fed buys short term bonds to keep the rate within their target range of 0-.25%, but QE that the Fed has and would implement would entail moving farther out in the yield curve to supress rates. it's not clear to me how many short term bonds--if any--the Fed needs to buy to keep that rate between 0-.25%. i would be interested in seeing data on this actually because it doesn't appear to me that the Fed's balance sheet is expanding now that QE2 is done.
The Fed's balance sheet might not be expanding but what about other entities that are more or less off the radar that have been used in the past, like the FHLB? Or using the ESF as a direct conduit? I would keep and eye too on the inflows of Caribbean funds in the next couple of TIC reports. Laundered backdoor QE3.
Reply to RR, The Fed will keep the lending rates to banks low.
The bond yields are different, they could go up and yet the
lending rate would remain the same. But regardless, if the bond
yields went up too high the Fed would have to intervene to prevent
the debt from becoming unmanageable.
"On Monday, Superior Court Judge Mary C. Jacobson ruled that four of those lenders -- Bank of America, Citibank, JPMorgan Chase and Wells Fargo -- can resume filing foreclosures, after showing that they had put procedures in place to follow the legal rules in foreclosures. Two of the lenders, GMAC and OneWest, are still being reviewed by the courts."
Pray for the best.....prepare for the worst.
Four times worse? Not 4.35? Or 3.78?
Everything' ?! Lol
I disagree with the idea the the Fed is helpless to do anything to prevent a super crisis.
There may be many headwinds against another Fed rescue, but when TSHTF they will
quickly disappear. Since the Fed is basically unlimited in the amount of money it can
create out of thin air, it will do everything to avoid a super meltdown of the economy
and the ensuing chaos that would follow. If it comes to a choice between massive Fed
intervention and riots and cities being set on fire, people losing their life savings giving
way to utter chaos, I think the Fed would intervene with little resistance.
They can avoid short term small riots, but then they put into motion the large scale hyperinflationary future riots. I would rather take the pain now. The only hope for the FED is for someone to invent a free (or nearly free) energy source very soon, or for some quantum leap in robotic efficiency. More and more the world is looking like it does in the Sci-Fi novella Manna by Marshall Brain. http://www.marshallbrain.com/manna1.htm
They can, and have printed and printed, and handed it out to the investor class in glass towers on Wall Street, that is why import prices are up 14% Y/Y and export prices are up 10%Y/Y, and why I can't afford coffee and cigarettes anymore. This top down bailout nation is an unmitigated disaster both for main street and Wall Street which has not made any real returns in light of the piles of M3 being poured into the TBTF's.
They will print, and I expect they do the same thing they have been doing, and we will find a trip to the store to be painful at best and futile within 6 mos to a year, till we are all on food stamps and subject to government control for our very calories. One thing I do not expect is the reelection of any incumbent should they even deign to hold elections next year. And when too many are homeless they will be offered a free roof in one of the lovely homeland security camps. The new gulags of the class war.
Yeah,yeah.Oncle Graham knows it all..
that's what happens when fraud and corruption on a massive scale is left to 'self correct'
Have to agree. QE I & II were methadone for the junkie. Nothing has been done to adress all the bad assets, over leverage both private and public and the derivatives issues.
Wake up screaming again.
Thanks for highly intelligent comments today.
How many, many times have I attempted to explain this most important reality to too many who believe everything they hear on Foxtard, NPR, CNN, CBS, ABC.
It's really oh soooo simple --- debt deflation for the next 20 years --- OMG to the max!
Derivatives? Pshaw, what's a quadrillion among friendly nations?
But look down the road, LOOK BOSS, DA BUS, DA OBAMA RECOVERY BUS, WE ARE SAVED
Was there **ANYTHING** substantive in this post? Graham Summers is a lightweight.
Tyler this guy is a waste of bandwidth.
Spiritually as well as monetarily. It's a MIRACLE!
If you think the fed is really gonna stop printing, then you truly are delusional. They'll just keep it a secret. How can they stop? Is the budget balanced, or is the deficit just as bad as ever? Plus all of Europe needs a bailout (and will get it, mark my words).
Yeah, yeah -- a few fed mouth pieces have sounded off. Sure. Let's all believe TPTB press releases. Good one.
I guess phoenix capital can get really shrill and hope it helps their shorts.
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