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What Will Ben Leave Us?
Courtesy of Lee Adler of the Wall Street Examiner
What Will Ben Leave Us?
As long as Ben doesn’t drop a turd in the punchbowl, the bias should be sideways to up for at least another week.
There’s no sign of an imminent selloff in the screens or positions of market indicators. If Ben disappoints and the market does sell off Wednesday afternoon, the setup in the market indicators suggests that it will not be sustained for long. On the other hand, many sector charts are on the razor’s edge, so it wouldn’t take much to push them over. A decline that persists through Thursday should do it.
If Bernanke surprises the market with an increase in direct purchases of securities from Primary Dealers, it could set off a scalded dog rally. My take on that would be that he doesn’t and it won’t, simply because they fear, probably correctly, that the commodities would rally first and most, and I suspect that that is something that Ben would like to avoid even more than he’d like stocks to rally.
As often occurs at FOMC days, the market has worked itself to an inflection point. The first move is often a fakeout. I’m looking for a more reliable signal on Thursday.
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Ilene: Lee, so was a turd dropped in the punchbowl?
Lee: The market seems to think so. Operation Twist was so well telegraphed recently that when it was announced, it made a soft plopping sound and the players held their noses and ran for the exits.
Ilene: What are you looking for next/tomorrow?
Lee: The plop heard 'round the world. Normally the first reaction is the fakeout, but a decline of this magnitude has to do some damage. There’s a support line convergence at SPX 1148. Let’s see. It should bounce from around that area either overnight in the futures, or tomorrow in the cash. A weak bounce could be the kiss of death. A strong rebound would suggest more of these wild gyrations probably into mid-late October.
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Pic credit: The Daily Bail
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Fur shure, Ben is not going to leave us laughing.
two weeks ago Ben was wearing a gold tie. ;)
Go LOOOONG Feral Gooberment and Feral Gooberment spawn, Ben is bailing out the USA this time. If it is held that the traditional banks make money on the spread and not Safe Deposit Box rentals they are fooked too.
Ben is a hedging, if he can keep the ride cobbled together long enough for jesus to come back he gets his wings.
And the bearded arch angel of Princeton will return with a shout, "gold is a novelty" and riding on a winged helicorn shitting rainbows of skittles, cutting assunder with his mighty butter knife all the gentiles who scoffed at his written word.... thus sayeth the Ben, Chapter 666 verse 69 "Print like an ass afire and when thine is done print more, and when he was done he made a burnt offering of MBS and a fatted banker .............."Bitches" was deleted by the ancient scribes.
Disappointing Ilene.
How did you not repeat the line of William McChesney Martin (Fed chairman from 1951 to 1970) that the job of the Fed chairman is to take the punch bowl away just when the party's getting started?
I just wanted to leave something for you to add.
Dear Ilene,
I know you know janus has a lil somethin to add:
http://www.youtube.com/watch?v=uNsmF9JTpuI
and everytime i touch you/
you just tremble inside/
and i know how much you want me/
that...you can't hide/
can i just have one more moondance with you/
my love,
janus
Underfunded Pension Plans or Massive Defaulting Student Loans?
"Laurence Fink, chief executive of money manager BlackRock, called the pension situation and similar underfunding of individual retirement accounts "probably the largest crisis that the U.S. is going to face." Speaking at a conference in New York on September 12, Fink said low rates were having a "dramatic impact" in harming pension funds."
http://news.yahoo.com/analysis-feds-twist-moves-hurts-company-pension-pl...
The Bernank needs to print over $2 trillion just to stay even....swapping $400 Billion of this for $400 Billion of that is simply not enough.
Here's the deal Bozo: at the end of the day you're nothing but a whining bitch. "Crying about too low interest rates"??? BOOO--PHUCKING---HOOO. I mean sure you've done nothing but phuck up the entire planet's portfolio by doing...whatever it is you do exactly...and i'm still unclear what that is even at this late date i might add...but having said that what the President has done and is continuing to do in the Middle East will such a more profound (positive in my view) impact on the American people's lives for the long run that it really is ridiculous to complain about "a Fed Chairman who just doesn't take the need for a proper upward sloping yield curve seriously." SAY WHAT? Anywho...RELAX, TAKE A LUDE, THROW IN A SPLASH OF MAKERS MARK. Trust me...you'll feel...like all the rest of us humans. (And believe me i should be the last person giving this advice.) I say "market holds it own as Europe and Japan collapse simultaneously." Thought it was possible to have the former while having the latter happen?...Hell you still can't imagine the latter yet--and yet "HA HA! Here comes the market collapse i've been predicting ALL ALONG!" Which makes me say I'll be right and you'll be wrong--not because i have any clue what the market will do but because you base your analysis on a patently absurd..."lack of facts." Obviously IT'S A LOT HARDER TO ARGUE THE MARKET WILL RALLY WITH THE SIMULTANEOUS COLLAPSE OF EUROPE AND JAPAN. Eh, phuck it. "BECAUSE I SAID SO, THAT'S WHY!" http://www.youtube.com/watch?v=v325wdgoFH4&feature=player_detailpage
Thank you for the title! I got a real LOL out of it.
Plop. That's just what it was... and - oh - the visuals...
THX !
How about this one - "Siemens Deposited In ECB after Pulling Out of France’s Banks" - I was told a lot people missed that little title gem.
Regarding the Federal Reserve's balance sheet, wasn't there something earlier this year (or was it 2010?) that made the Fed's balance sheet the responsibility of the Treasury? I know there was a proposal, but not sure if it made it through.
Dog, meet tail.. and prepare to be wagged.
The market took a dump today, it's getting harder and harder to keep the game going.
Our real economy needs money as a medium of exchange & store of value. Can you believe we've given the right to create paper money to an obnoxious, pompous asshole like B. Bernanke. Actually this right belongs to the "free market" (more or less "free") which does a great job of producing everything else we need.
see you at spx 1120 in 3 days
dead man slithering
Sometimes when trying fake-out an opponent, one blows out his own knee. Denninger has suggested that operation twist would harm bank earnings. I know, I know, much of bank earnings are illusory as they haven't recognized their losses, but Operation Twist will reduce their revenues directly - and that cannot be gamed away. In effect, Bernanke has dropped that turd in his benefactor's punchbowl and I don't think we're looking at a market head-fake at all - more like a faint.
Down we go!
Ben's whole tenure as fed chairman can be summed up as a turd in a punch bowl if ask anyone that understands the policy effects he has had on the economy. The stench he will leave behind will in my view lead to indictments.
Stop it. I like sloppy turds!
Question for the class:
What will the Fed's balance sheet look like when Ben can't print and/or buy MBS, treausires, etc????? It's already 3 large. He will only be stopped by impeachment, if even that can be done. Hope you are enjoying being the guinea pigs in this little financial experiment.
same as it does right now dip-shit.
How does that old saying go...?
"Buy the Operation Twist rumor, sell the Operation Twist news, bitchez...."
start the rumor, buy the lie
Better the devil that you know huh?
When Alan Greenspan left, I was irrationally exuberant. I know the error of my ways, now. I should have known that his successor would be twofold more the child of Hell, than himself. Live and learn. Ben Bernanke may leave us with a bank holiday and ATMs that don't work. Perhaps we can work out a barter system with our local supermarkets, if there is anything left on the shelves.
http://georgesblogforum.wordpress.com/2011/07/19/unnatural-law-fiat-currency-vs-real-money/
So nobody has the money on it's balance sheets to buy treasuries or bonds. Not to worry, we have an organization that can produce money out of thin air regardless of their balance sheet.
What a joke of a financial system these clowns have produced. I can't see this ending well. FUBAR comes to mind.
Well Ben and ilene both have something in common, all they drop are turds. Just like this post, ilene dropped us another turd this week.
When will he be stripped of his flesh one inch at a time? When will he watch his family raped? When will he pay for the starvation he designed for so many others? When will the devil of our lifetime actually bleed?
Maybe like his master, "i didn't see it because I am stupid" Greenspan, he can make excusses: one excuse is worth one bullet - fair trade! Hang them both by their sack in a public square and then look for the 'liberal' - they will be throwing stones, not knives!
All talk, no action....
Soft plopping sound in the punch bowl? More like an explosive Chipotle Upper Decker IMO.
I think all the FOMC did was confuse the market. Nobody got a signal, so down was the default. That will change a bit, but down is now in the cards.
And then QE3 before December. Hot December and January (except for the Arctic fail blizzards in the Nor'east, like GW went anywhere during all this). And then the long, screaming, lethal slide into suckness the rest of 2012.
I'm still calling the open of 2013 as the end of the entire fucking world. Get long shovels and gardens, bitches. Or else learn how to die like men.
Armageddon is a notorious no-show when scheduled. I think it shows up unexpectedly. In hindsight it will have been perfectly obvious.
No-show? It's already here. This policy noise is just cover for all the terrified screaming. Titanic, meet ice berg.
They can pump water for another year, if. We'll look back then and know that we were in the clutches of Leviathan all along.
i believe the technical term is "stanley steamer"
I think a better title would be "WHEN will Ben Leave Us."
There's a song from Camelot that answers your question.
So he dropped a floater is the punchbowl?
Cut to the chase, Ben is the turd in the Punchbowl
No, I am.
Just don't jump out of the cake, okay? I don't think my ailing old heart would hold up.
IF?
a mess, and a worse fed chief
http://covert3.wordpress.com
Plop. Plop.
Fizz.Fizz.
More like SPA-LOOOSH !!!!!!
And a cold splash jet right up the ol' bung hole.
"A bunghole is an access point that can be resealed to gain entry into a vessel. Historically, it refers to a hole bored in a liquid-tight barrel to remove contents. The hole is capped with a large cork-like object called a bung."
Bungs by Jumbotron
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on other topics
Didn't you find the Bernanke hyperbole a little weak?
Has everyone shot his wad? Is there a bug going around Tribeca?
What's the best way to have a military take over?
Do the Joint Chiefs have a suggestion box? Petraeus 2012
If there's an election in November 2012, we are fucked beyond belief. The scum of the earth will take the oath of office.
Somebody earlier mentioned 'Ludes. You got extras?
Short long-in-the-tooth