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Kaminsky On The Election: "The Easy Money Days Are Gone"

Tyler Durden's picture


While many are blaming today's weakness on DuPont and a final awakening that earnings might not hockey-stick as consensus believes, CNBC's Gary Kaminsky has an interesting angle that is gaining ground among desks. We can argue all day long that central bank actions have driven a 'wedge' between fundamentals and market prices (as we did here) and as Gary himself notes "printing money around the world does not help corporate profits" but Kaminsky's view of today's weakness is more nuanced to the outcomes of the election. Critically, he makes the case that the market is starting to realize that whoever wins in two weeks, there is a more negative bias post-election. From Obama's higher taxes and more-of-the-same sluggish economy to Romney's potential China-Trade-war, an implied strong-USD-policy, and potentially the end of the 'Bernanke-Put'; Kaminsky says "the easy money days are gone" and warns of a 1000 point correction being possible.


Starting at around 4:15 in this clip - starting with some technicals, Kaminsky then goes on to discuss (at 5:10) the election outcomes and market scenarios:




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Tue, 10/23/2012 - 12:31 | 2913035 Gene Parmesan
Gene Parmesan's picture

OMG! A thousand point correction!?



Tue, 10/23/2012 - 12:36 | 2913049 the not so migh...
the not so mighty maximiza's picture

i hear that, -2000 or -5000 day would work for me.

Tue, 10/23/2012 - 12:42 | 2913069 Careless Whisper
Careless Whisper's picture

The Careless Whisper BREAKING NEWS UPDATE & Threadjacking

John Paulson Donates $100 Million To "Charity"; Millions To Keep The Lawn Cut And Tulips Trimmed In NYC's Central Park For Fifth Avenue Residents

Tue, 10/23/2012 - 12:44 | 2913077 Dalago
Dalago's picture

Not if the central banks has to do with any with this!

Tue, 10/23/2012 - 13:03 | 2913131 MillionDollarBogus_
MillionDollarBogus_'s picture

The use of this 'hockey-stick' term is interesting. 

Related to the fact that the NHL is broken, again, and may miss another season due to players & owners squabbling over money..??

Tue, 10/23/2012 - 13:09 | 2913143 gmrpeabody
gmrpeabody's picture

Now that the bond auction is complete..., they will let the hopium resume!

Tue, 10/23/2012 - 13:16 | 2913157 Parabolic
Parabolic's picture

Hockey Sticks can be turned upside down you know:


                     ------------------- \     \

                                                            \     \


Tue, 10/23/2012 - 16:13 | 2913827 NooooB
NooooB's picture

Oh, so NOW CNBC is right?... Good lord....

Tue, 10/23/2012 - 13:17 | 2913134 knukles
knukles's picture

All I can say is what with stocks having been up 15+% as of a few days ago, his timing is better than mine because I didn't own any.
Oh, pshaw.

Happy happy joy joy

Stocks been elevating on "hot air", unicorn farts and whatever else don't make sense.

You (PTB) can keep your hot air.
I'll keep everything else you all slighted me about (gold, pogo sticks, Bibles if that's what rocks your socks, no white wine, faux racism which I am not and take great exception to your accusations, Mr Matthews and I'm really tired of being lectured to about what you all bastards think how I must live my Life, etc.)

Tue, 10/23/2012 - 13:23 | 2913190 Stock Tips Inve...
Stock Tips Investment's picture

Although it seems pointless, markets may suffer a correction of more than 1,000 points. The huge amounts of money that the Fed and the ECB have injected into the economy, have led to financial markets and to "plug holes" of expenditures "made ??earlier". Consequently, corporate profits have not been benefited by these measures. And the "real" economy has not had a very big boost. Considering that Spain went into recession in the next three months and probably the rest of Europe will do next. It is very difficult to foresee that markets may suffer a significant adjustment.

Tue, 10/23/2012 - 13:01 | 2913124 Duke of Con Dao
Duke of Con Dao's picture

fits perfectly with the re-armament plans of the Central Park Conservancy.

Tue, 10/23/2012 - 13:08 | 2913135 aint no fortuna...
aint no fortunate son's picture

cue major intraday short squeeze minutes after kaminski "news" is distributed

Tue, 10/23/2012 - 12:43 | 2913073 JPM Hater001
JPM Hater001's picture

I not settling for anything short of the crash but between here and there 4000 would help my shorts...and get the wife off my back about making money...oh Ill make money baby.

Tue, 10/23/2012 - 13:26 | 2913198 Stock Tips Inve...
Stock Tips Investment's picture

Indeed, it will be a time to take advantage of short positions. What many people need to understand that you can benefit from these policy mistakes. The worst thing is to do nothing and wait for the "things change." In between, his money can disappear.

Tue, 10/23/2012 - 12:52 | 2913081 Downtoolong
Downtoolong's picture

Me too. I'm in cash, and thinking -1000 wouldn't be nearly enough to get me buying in.

Let's talk percentages, since nominal amounts mean nothing anymore.  Like -50%.

I always liked the 50% correction rule as a guide, up or down. It seemed to work for Facebook in no time at all.


Tue, 10/23/2012 - 13:40 | 2913241 LMAOLORI
LMAOLORI's picture



Same here and going off the Fiscal Cliff will make the dollar stronger not weaker in 2008 people ran to the dollar not away from it.

If US Goes Over ‘Fiscal Cliff,’ Dollar Could Fly

Published: Tuesday, 23 Oct 2012 |


In times of trouble, investors tend to flee to the comfort of the U.S. dollar — even when the trouble is emanating from the U.S

If Congress fails to reach a deficit reduction deal by the end of the year, it will automatically trigger big spending cuts and tax increases in 2013. This so-called "fiscal cliff"would hit the still-recovering U.S. economy hard.

 But rather than bring the dollar down with it, the automatic spending cuts could be viewed as a sign of fiscal discipline that would benefit the currency.

 Even if a protracted period of negotiations injects a heavy level of uncertainty into the markets, that could benefit safe-haven assets like U.S. Treasurys, and therefore the dollar.

Tue, 10/23/2012 - 13:11 | 2913148 dracos_ghost
dracos_ghost's picture

Wealthy being advised to sell into 2013 tax uncertainty. Never underestimate the herd mentality of the "wealthy intellectual elite". Could be a catalyst.


Tue, 10/23/2012 - 19:34 | 2914429 Buck Johnson
Buck Johnson's picture

I totally agree wtih the 2,000 to 5,000 correction, the 1,000 correction isn't nothing.

Tue, 10/23/2012 - 12:36 | 2913051 j0nx
j0nx's picture

Exactly. A mere burp in the scheme of things. Easily made up over a week or two.

Tue, 10/23/2012 - 13:07 | 2913117 Zero Govt
Zero Govt's picture

"...and warns of a 1000 point correction being possible..."

So fucking ready for a crash, bring it on, pleeeease

like watching F1 or Daytona 500 you just want a crash. We're all turning into sick fucks, terrible!

oh well, pass the 'BBQ'd at the Stake Wall Street Banker' flavoured popcorn, very moor'ish taste, yum yum

Tue, 10/23/2012 - 13:44 | 2913258 Water Is Wet
Water Is Wet's picture

The best crashes happen at Talledega.  Here's the one from this year.

Tue, 10/23/2012 - 14:01 | 2913292 Zero Govt
Zero Govt's picture

now THAT is a crash, thanks :)

Tue, 10/23/2012 - 13:23 | 2913192 The trend is yo...
The trend is your friend's picture

I don't care what you say Gene, a 1000 point SPX correction is significant / Sarc

Tue, 10/23/2012 - 12:32 | 2913036 blabam
blabam's picture

Didn't he get the QEternity memo? 

Tue, 10/23/2012 - 13:07 | 2913136 Zero Govt
Zero Govt's picture

if CNBC are calling it, it's a head feint bear trap

Tue, 10/23/2012 - 13:15 | 2913164 BigJim
BigJim's picture

Exactly... and as for Romney ending the Bernanke put... Romney wants to increase spending on the military, increase US intervention around the world... and is somehow going to reduce the deficit? What about the actual debt? How is rolling that over going to be feasible without more 'easy money'?

Tue, 10/23/2012 - 13:55 | 2913283 Zero Govt
Zero Govt's picture

you mean a politician has spent his ever-expansive budget even before doing the maths?

that's a shocker

is that why Timyah is in such a pickle and can't balalnce a budget?

the politicians failed to sort it out, 600 eminent Committees in DC can't resolve it, Congress couldn't work it out, the Senate were just as clueless, and Super Committee failed, despite the hyperbolic billing, even more miserably

..and these clowns are supposed to Govern us???

Tue, 10/23/2012 - 12:31 | 2913037 RationalPrepper
RationalPrepper's picture

1,000 point he talking DOW or S&P?

Tue, 10/23/2012 - 12:37 | 2913058 Gene Parmesan
Gene Parmesan's picture


Tue, 10/23/2012 - 13:19 | 2913179 Gene Parmesan
Gene Parmesan's picture

Somebody didn't actually watch the video.

Tue, 10/23/2012 - 16:03 | 2913791 nofluer
nofluer's picture

Don't NEED no steenking video... or the Flash it rides in on.

Tue, 10/23/2012 - 12:33 | 2913039 malikai
malikai's picture

Believeing that Rombot is going to start a trade war is pretty hilarious.

I think Robney's history as a champion of LBO and outsourcing indicate he will behave otherwise.

Tue, 10/23/2012 - 12:57 | 2913115 machineh
machineh's picture

Why start a crappy trade war, when you can unilaterally start a REAL one and then pimp-walk onto a carrier and declare 'mission accomplished'?

Tue, 10/23/2012 - 13:54 | 2913278 malikai
malikai's picture

Now that's the kind of ambition it takes to be president. Have you thought about a rewarding life in public service?

Tue, 10/23/2012 - 12:36 | 2913046 DormRoom
DormRoom's picture

Peak credit ended in 2007.

Tue, 10/23/2012 - 12:35 | 2913048 Lost Wages
Lost Wages's picture

Just kick back and wait for the Euro to go back up. 

Tue, 10/23/2012 - 12:38 | 2913059 q99x2
q99x2's picture

DuPont. Haven't heard that name since one of the owners was out shooting the neighbor kids in his lawn.

Tue, 10/23/2012 - 12:55 | 2913060 Quinvarius
Quinvarius's picture

The move over 15k is going to be epic with all these beartards running around.  That is Goldman standing behind you telling you it is raining.  I don't even like the economy, but I know what is coming.

They don't print for the economy.  They print for the banks.  That is how I knew QE3 was coming and how I know QE4 is just around the corner.  QE3 was an annuity, the bankers need JG Wentworth.  The printing will continue because without it we don't have banks.  The Fed exists to protect banks with its magic printing press. 

All this bear nonsense is like watching a re-run of a bad movie.  I have seen it all before.  My thesis is bullish.  Markets move on easy money and easy credit.

Tue, 10/23/2012 - 13:01 | 2913118 tickhound
tickhound's picture

"That is how I knew QE3 was coming and how I know QE4 is just around the corner."

Dude, Ray Charles saw it coming.

Tue, 10/23/2012 - 13:10 | 2913139 rqb1
rqb1's picture

Quin, i agree with you and gary k, where that leads me, i dont know.  one thing i might add is that mitt will allow this house of cards to fall initially, only to rebuild it upon reelection time.

Tue, 10/23/2012 - 15:12 | 2913586 ZackLo
Tue, 10/23/2012 - 12:37 | 2913061 WALLST8MY8BALL
WALLST8MY8BALL's picture

However, The Regular Guy Look is making a comeback!

Tue, 10/23/2012 - 12:37 | 2913062 Dr. Engali
Dr. Engali's picture

How can that anaylist  say wallstreet didn't expect to hear what the heard. We all knew earnings were headed south. Kaminski has it right, printing solves nothing.

Tue, 10/23/2012 - 12:39 | 2913065 fonzannoon
fonzannoon's picture

Romney wants a stronger dollar and will appoint a strong dollar fed chief. I better head to the cash for gold store quickly.

Tue, 10/23/2012 - 12:42 | 2913071 fuu
fuu's picture

wtf you too?

Where are you all getting this delusion that Romney will appoint a new Fed Chair that is not like the last few?

It's coming from the tv isn't it?

Tue, 10/23/2012 - 12:48 | 2913076 fonzannoon
fonzannoon's picture

me too?

I watched the video. That's what Gary Kaminsky told me. So it must be true. Sorry I need to get off this thing before the cash for gold place gets packed.

 edit- I really need a sarc there? Wake the f up. Kaminsky is either stupid or evil to imply that any fed head can possibly turn this ship around. If they renounced QE the dow would be cut in half. What are they going to do, raise rates? Watch what happens. Again, he is either incredibly stupid, or evil.

Tue, 10/23/2012 - 12:55 | 2913112 fuu
fuu's picture

Ok it does come from the tv then. Carry on.

Tue, 10/23/2012 - 13:01 | 2913127 fonzannoon
fonzannoon's picture

sounds good

Tue, 10/23/2012 - 14:03 | 2913298 Snoopy the Economist
Snoopy the Economist's picture

Fonz: How in hell can a strong dollar occur with over $16T debt - with ZIRP they pay 3% interest which is ~ $480B a yr. If interest rates increase USA is BK.

Tue, 10/23/2012 - 16:26 | 2913884 LMAOLORI
LMAOLORI's picture



Markets worried about Bernanke 


It is fair to say that Tuesday’s stock market selloff is probably due to disappointing earnings, with concerns about Spain’s ability to meet its deficit target acting as a side-issue. But it is interesting that the decline also comes as observers speculate about Ben Bernanke’s future.

Mr. Bernanke ends his current term as chairman of the Federal Reserve in January 2014, and there is some talk that he either won’t seek a third term or won’t be asked to return, especially if Mitt Romney wins November’s presidential election. Mr. Romney has made clear his dislike of Fed stimulus policies.

Tue, 10/23/2012 - 12:40 | 2913067 fuu
fuu's picture

I'm thinking -200 is a stretch now.

Tue, 10/23/2012 - 18:49 | 2914322 fuu
fuu's picture

Yeah that was wrong moran.

Tue, 10/23/2012 - 12:42 | 2913074 TideFighter
TideFighter's picture

Trade paper for dirt and water. Long mudd.

Tue, 10/23/2012 - 12:42 | 2913075 Peter Pan
Peter Pan's picture

Society is in need of a great many corrections of which the stock market is but one. Most peope would not know where to start and the next problem is discipline which unfortunately is in short supply .

Tue, 10/23/2012 - 14:20 | 2913377 Clashfan
Clashfan's picture

A lot of people I've met probably should start right here:

Tue, 10/23/2012 - 12:52 | 2913090 emersonreturn
emersonreturn's picture

sorry, by the time i'd posted the question had been answered.

Tue, 10/23/2012 - 12:49 | 2913092 fonzannoon
fonzannoon's picture

So the nasdaq goes green by 3pm. Bartiroma yells euphorically we are coming off the lows. Different day same shit.

Tue, 10/23/2012 - 12:49 | 2913094 AcidRastaHead
AcidRastaHead's picture

What everyone wants to know is who does Kaminsky want to punch in the face this time?

Tue, 10/23/2012 - 12:51 | 2913099 fonzannoon
fonzannoon's picture

hopefully himself, and then simon....and then...

Tue, 10/23/2012 - 13:02 | 2913132 thomasincincy
thomasincincy's picture

lol... it's genuine

Tue, 10/23/2012 - 12:57 | 2913107 Duke of Con Dao
Tue, 10/23/2012 - 12:57 | 2913114 yogibear
yogibear's picture

Obama can hire more government voters after he wins in November.

More foodstamp members.

Like in France where you need 5 people to screw in a lightbulb

Tue, 10/23/2012 - 16:16 | 2913848 nofluer
nofluer's picture

Like in France where you need 5 people to screw in a lightbulb

Actually in France that would be 15. One manager to determine that the bulb needed replaced, two stock utilization clerks to ensure that the proper bulb was being used, (nomenclature "bulb, low intensity, low energy fluorescent pig tail") (Check and double check), the proper number of bulbs was being used in the proper number of sockets, 5 workers per shift for two shifts plus a technical supervisor to direct their efforts and make sure they were screwing the bulb PROPERLY.

I mean REALLY! You did say FRANCE! N'est-ce pas?


Tue, 10/23/2012 - 13:01 | 2913120 virgilcaine
virgilcaine's picture

Short covering ahead of  2 day Pig meeting..sell ES after 2 pm tomorrow..

Tue, 10/23/2012 - 13:00 | 2913123 ItsDanger
ItsDanger's picture

A good trader can make money in any kind of environment.  The market changes yet is always the same.  Obviously the more money you manage, the more difficult it becomes.  His comments hold true for business as a whole I believe.

Tue, 10/23/2012 - 13:02 | 2913128 walküre
walküre's picture

For 99% of Americans there never were "easy money days".

99% never found money in the streets. They never scammed others out of their money. 99% didn't have access to ZIRP to buy them new Prada shoes every week and a new Bentley every month. 99% were sucked in, sucked dry and tossed to the curb by a completely irresponsible, self-serving, self-grandizing, self-idolizing, cheating, lying and manipulating class of highly qualified cocksuckers.

Fuck the liars and their propaganda. Trying to convince the sheep that they were complicit in the crime. The guilt for the crimes of Wall Street and Washington rest solely on those directly responsible and with access to the levers of control. NOBODY ELSE.

The 1% had easy money days since Christ was an infant and they will continue to have easy money days when this country gets torn to pieces by either revolution or civil war.

For the sake of any further arguments, it needs to be established as fact who exactly this group is and why their names and faces should be commemorated on decks of cards to be handed out to the kids in the streets of Troy, Pontiac, Englewood, West Garfield, Inglewood, South Central and East Harlem.

The kids there were robbed of their American Dream. There are no opportunities for these kids or for their parents. Neither of the two "Presidential" candidates give a rats ass about 99% of America unless they can find ways to increase debt servitude or abuse them any other way.

There is no leadership in America other than a greedy corrupt group of bastards who got filthy rich at the expense of the vast majority of citizens. Some parasites were leeching along the way and riding the whale to the top. They will be tossed to the curb in due time as well.

The country needs new leadership that is disconnected from the old boys club and the established axis of money and power. That leadership needs the conviction to take back what the 1% have stolen from the working stiff. What they have squandered away in advantage and innovation and given to the lowest bidders in China. The race to the bottom will stop at the bottom. Many Americans are there now. When they're against a wall with nothing left, they will listen and follow the lead to take the country back. Voluntary redistribution is the only civil solution. The establishment knows this and is willing to give back for fear they could face the fate of the French aristocracy in the late 18 hundreds.


FUCK YOU for such an INSULT

Tue, 10/23/2012 - 13:09 | 2913137 MillionDollarBogus_
MillionDollarBogus_'s picture


There have been a number of so-called economic resets through history.

This race-to-the-bottom will probably result in another reset.

 Will be interesting to see what the wealthy trade for their $$ before currencies lose their value.

May explain why quality farm land keeps going up in price.

Tue, 10/23/2012 - 13:12 | 2913153 walküre
walküre's picture

Farmland is going up because global population is projected to increase to 9 billion by 2030, possibly double by the end of this century.

Can the world feed twice the population were are feeding today? Nevermind transportation or housing.

Farming is where my heart is.

Tue, 10/23/2012 - 13:32 | 2913218 LMAOLORI
LMAOLORI's picture



Everyone who can should try to own some farmland even if it's just enough to feed themself's and their extended family imo Jim Rogers has a lot of it and has been saying for a while that's a great investment.

Across Corn Belt, Farmland Prices Keep Soaring

Why Jim Rogers is Investing in Farmland


Tue, 10/23/2012 - 14:06 | 2913310 walküre
walküre's picture

I would love to see Ben Bernanke use a pitchfork and muck out my barn. Maybe that would give him a sense of reality. Unfortunately, he will not want to touch the pitchfork so I may have to come and muck out his stall instead. I'm feeding him anyway.

Tue, 10/23/2012 - 13:37 | 2913226 blu
blu's picture

The world population will never see 9 billion. I know that has been the trend to now, but the last 6 billion came into the world on the tide of cheap oil.

We will get to 7.5 billion with what is left of the cheap energy and we will reach 8 billion on simple momentum, but the human race will already be howling in collective horror. Then round-trip back to 7.5 billion a few years after that. 6 billion a few years further on.

By 2025 the die off fires will seem quenched. We might remain at 5-6 billions for a long time, maybe trending downwards slowly back to our sustainable pre-fossil-fuels numbers of 2 billion. But by 2025 the world will have already become a much quieter place.

Tue, 10/23/2012 - 13:58 | 2913288 walküre
walküre's picture

At the beginning of last century the population was 1 billion and 100 years later we're at 7 billion. Despite massive wars, famine and poverty. Population increase seems to be greater in those areas where dependency on oil or cheap oil is not at all relevant. Consider that demographics are affecting the 1st world more negatively and that is where the innovations and the conveniences related to cheap oil played a factor.

Let's turn your argument around and assume that the impoverishment of former 1st world countries like the US and parts of Europe will actually drive population growth upwards. Where does that take us?

I just don't think that the argument around cheap oil is solely responsible for this explosion of a global population from 1 to 7 billion or 700%!!!! Medical innovation, discoveries, treatments and so on and so forth contributed as well. Yes, access to cheap oil benefited this as well. Farming machines could cultivate, seed and harvest areas like we could never before. Would the same machines not have come into operation had oil been more scarce and the price of fuel been higher?

The discovery of oil and the applications of oil in general played a big role for sure. Not so sure if it's due to cheap oil that the population increased by that much. Therefore assuming this increase will slow down, stop and even reverse is maybe wishful thinking. Life expectancies are rising. Poverty is increasing globally due to a clogged credit system.

Unless parts of the health care system or food chain shut down completely as a result, my projection has global population pushing 20 billion by the year 2100.

Tue, 10/23/2012 - 15:37 | 2913661 SmoothCoolSmoke
SmoothCoolSmoke's picture

Super Bird flu or SARS, or ???, right time right place............500 million dead.

Tue, 10/23/2012 - 16:25 | 2913877 blu
blu's picture

"my projection has global population pushing 20 billion by the year 2100."


Is that so! You are seriously wedded to BAU then.

We are allowed to disagree on the matter as it has no possible importance to anything or anyone, nor in any decision made by institutions, nor the quality of life of any human on earth. Nothing now can possibly change in any fashion no matter how trivial -- until for lack of inputs it all collapses utterly and ends in steaming ashes exactly where it started. And after that we'll see who exactly it is can hold body and soul together.

Tue, 10/23/2012 - 16:38 | 2913922 walküre
walküre's picture

Agree to disagree. May we live to see the day and find out who's got it right.

Tue, 10/23/2012 - 16:32 | 2913900 nofluer
nofluer's picture

With accomodative housing, the world could support a lot more than 9 billion - but they have to have something to do besides stand on the corner and bitch that they don't get enough food stamps.

Tue, 10/23/2012 - 16:28 | 2913886 nofluer
nofluer's picture

Beware of Jevon's Paradox!

Food and the developing world:

As production of food increased in the developed world, more food could be sent to the third world - where the increase in nutritional levels caused an exploding level of infant survivability. So the more food we grew, the more people could eat, and the more people were produced TO eat more food.

The simple fact is that if technology reaches an equilibrium, the use of resources also reaches an optimal level for that level of technology. Increase the level of technology, and you disturb the equilibrium - causing imbalance between supply and demand - which (because people seem to tend to live "better"  - or consume MORE if they can) causes increased consumption.

Tue, 10/23/2012 - 13:14 | 2913161 centerline
centerline's picture

Logged in just to give this an up arrow.

Tue, 10/23/2012 - 13:20 | 2913180 blu
blu's picture

Logged in just to say how right on you are, and +1 for mentioning the French aristocracy.

Tue, 10/23/2012 - 15:53 | 2913746 klockwerks
klockwerks's picture

Sorry but this whole comment sounds like some whiner that can't make it on their own so it's everyone elses fault. All those rich people and I hate them because I never made anything of myself so I guess I'll sit around and cry in my beer. What a loser. YOU are responsible for who you are, your own fate and where you want to go. Sure, all those evils are present but sitting back and complaining about it doesn't help you out at all. It's not about what someone else is or has or how they got it. Grow up and go make your own. I was raised a poor farm boy, no college education but long ago was told to get out of this small town and go make something of myself. Grandma assured me that I could do it so I did. Never had to take anything from anyone else, no one gave me squat and I just worked hard, fell on my butt more than once but was determined, regardless of anyone else or what they had to make my own way. I made a lot of mistakes, took my lumps and kept going. No, I'm not rich but whatever I have, I earned. My sucess in life as I look back is measured in, not financial but 31 foster kids, 2 daughters, 7 grandkids , a great grandson and same wife for 49 years. I really don't care about all the corruption from the elitist. I have what they don't have. Peace

Tue, 10/23/2012 - 16:53 | 2913978 walküre
walküre's picture

Respect. You've been married 49 years, you're an old geezer. I get that. But I'm only 44 and the way things are going, will probably never experience what you have described. You were a child of the greatest growth and credit expansion. My generation is at the tail end and saddled with the debt that your generation piled up. Not you personally.

You cannot deny the absolute denegration and impoverishment of American society over the last decades on the one hand and the massive buildup of wealth in ever fewer hands on the other hand. The country is saddled with massive amounts of debt and one tiny elite who was nearly wiped out in 2008 is now richer than ever. From their balance sheet to the public balance sheet. Their debt became ours. The cherry on top is that our debt is paying them to afford their lavish lifestyles.

How can you not address the corruption and manipulation? Oh, I forget. That same corruption and manipulation happened during this boom cycle which allowed you to grow. Unfortunately there's no room left for us to grow. This is it. We're at peak AMERICA. You may not receive all the entitlements that you thought you had paid into. Maybe you don't have any. Maybe you're self sufficient.

Funny how you're almost proud that you fell on your butt and raised yourself up again. I respect that. But funny still that you want to accept that there are golden parachutes for the elite when they fall on their butts. Talk to your kids. I'm sure they'd have to disagree because their kids (your grandkids) will have less and less of what you put initially into it.

Race to the bottom is on because your generation wasn't careful and considerate about certain policies which sold out America. Your generation was interested in the short term fix, the short term gain in a financial world which drew equity out of many hands to put it into few. No checks, no balances. No transparency, no accountability. Lies, propaganda and corruption. That IS your generation's ACCOMPLISHMENT. Thank you, Sir.

Sure, call me or my generation cry babies. Whatever. I'm calling you complicit. How do you like that?

Tue, 10/23/2012 - 13:10 | 2913138 ghostfaceinvestah
ghostfaceinvestah's picture

Bernanke is printing $40B a month indefinitely, and may ramp it up further.  Plenty of easy money days ahead, just watch this market ramp off the lows today as the Fed buy programs kick in.

Keep your gold.

Tue, 10/23/2012 - 13:10 | 2913141 ian807
ian807's picture

If the stock market were still controlled by humans, rather than thousands of battling computer algorithms, he might be right. He's apparently still living in the past.

Tue, 10/23/2012 - 13:12 | 2913149 Quinvarius
Quinvarius's picture

Kaminsky is a fine actor.  I doubt he believes anything he just said.  Romney the hedgefund guy will attack Wall St?  Obama the money printing Socialist who has been sucking Jamie Dimon off daily is going to attack Wall Street?  The government will stop selling debt to the Fed?  The banks won't get the trillions in bailout money they need and will all be allowed to collapse?  ZIRP and QEX are over?

Give me a break dude.  Inflation is and always has been the only meal on the menu.

Tue, 10/23/2012 - 13:37 | 2913195 blu
blu's picture

And the inflation they are drumming up will just barely unwind the deflation that is eating us alive.

It was QE from the start, it will be QE for the duration, and QE will accompany us all the way down the rabbit hole.

Whatever awaits us there we will get. None will escape the monsters at the end of this ride.

Tue, 10/23/2012 - 15:54 | 2913752 nofluer
nofluer's picture

DEflation? WHAT deflation? I don see  no steenking deflation. The prices of porky beans and wienies are going UP - not down. (And UP and UP and UP!

Let's alllll get on the Weimar train. Whoooo wooooo! All aboard!

Tue, 10/23/2012 - 16:42 | 2913931 blu
blu's picture

Alice and the Red Queen are sharing a snack under a tree when the Red Queen suddenly jumps to her feet, grabs Alice by the wrist, and heads off saying, "Hurry! We must go quickly!" Alice does her best to keep up but shortly they are flying with their feet hardly touching the ground and the Red Queen is shouting "Faster faster!" After a moment Alice breathless asks "When will we arrive?" and the Red Queen replies "Arrive? Why we've already passed it! Run faster!" After a while just when Alice is nearly about to collapse the Red Queen stops them and they fall to the ground, exhausted. Alice looks around and they are still under the same tree they had been under before they took off. She catches her breath and then says to the Red Queen, "Why I do believe we're exactly where we started. In my country if you ran very fast for a long time as we just did you would get somewhere else." The Red Queen sniffs in disdain and retorts, "Then it's a slow sort of country, that. In this country it takes all the running you can do just to stay in one place. To actually get anywhere you need to run twice as fast as that."

QE3 is just the start. QE3+ will be stunning large, and all the running we can do. But even that will be just enought to keep us in the same place.

Notice, there is no actual twice as much.

Down down down the rabbit hole.

Tue, 10/23/2012 - 13:33 | 2913221 Pareto
Pareto's picture

I might only add that I think Romney's "tough talk" on China is w.r.t currency manipulation - implying that Romney wants a weak US dollar and not a strong dollar as Kaminsky appears to suggest.  Romney is not and has never been a strong dollar proponent.  He wants exports, but, China's "currency manipulation" interferes with Romney's ethnocentric vision of America first.  So, I'm not sure where Kaminsky arrivesd at Romney being king dollar.  I think he is wrong on this, IMO.

Tue, 10/23/2012 - 13:14 | 2913159 Smiddywesson
Smiddywesson's picture
This is not a joke.  It is an actual poll on the Yahoo Finance website, posted today with the market tanking.   POLL

Markets are sliding at the open. What do you do on a day like today?

Buy on the dip (11601)   25%  (LOL)

Sell ! Sell! Sell! (4318)      9%

Be glad I’m in for the long haul (19717)  43%   
Be glad I’m not in the market (10557)   23%

Thank you for voting!

(Hilarious, you can't make this stuff up)

Tue, 10/23/2012 - 13:17 | 2913170 walküre
walküre's picture


Der Kampf ums deutsche Gold

The fight over German Gold - FRONT CENTER HEADLINE

Is Germany at war with the US over gold?


Tue, 10/23/2012 - 13:28 | 2913202 toomanyfakecons...
toomanyfakeconservatives's picture

If so, Germany had better get in line. Many nations are at war with the FED and BIS over their stolen gold "deposits". Multi-trillion dollar liens are pending against, the FED, BIS, and other central banks...

Tue, 10/23/2012 - 13:25 | 2913196 Smiddywesson
Smiddywesson's picture

Kaminsky says "the easy money days are gone" and warns of a 1000 point correction being possible.

If you come to accept, as I do, that the majority of the corporations inflate their numbers during a bull run, then you come to appreciate the predicament we've created.  Companies need crashes to bring their numbers back to reality, otherwise those numbers would reach infinity and fail to be believed, even by a gulible public.

The Fed has put the brakes on the business cycle, thereby robbing corporate America of the ability to adjust their numbers back to reality.  However, that reality isn't going away, and it's becomming increasingly more difficult to disguise, thereby making the inevitable crash all the more cataclysmic.

Tue, 10/23/2012 - 13:46 | 2913244 SheepDog-One
SheepDog-One's picture

'A 1,000 point correction'? On the S&P, or DOW? -1,000 on the DOW is no big deal we were just there before the last full-retard euphoria pump.

Tue, 10/23/2012 - 14:02 | 2913296 Seasmoke
Seasmoke's picture

Bernanke ain't dead yet ............

Tue, 10/23/2012 - 14:04 | 2913303 Vince Clortho
Vince Clortho's picture

This bozo is calling a thousand points off the Dow a correction?  Did he say that with a straight face?

 We are still near the peak of a 2500 point ramp job that started in Nov of 2011 and he is "warning" somebody about a thousand point correction?  

If the Dow drops 25% from its current inflated level, the term "correction" might begin to be appropriate.

I have to believe his remarks were earmarked for 10 minute a day CNBC watching crowd.

Tue, 10/23/2012 - 14:29 | 2913423 pitterrier
pitterrier's picture

Gary is wrong about Romney wanting a stronger dollar against the Chinese.  THe problem is a current stong dollar/Yuan is the cause of the massive trade imbalance. 

Tue, 10/23/2012 - 15:19 | 2913607 Shizzmoney
Shizzmoney's picture

Sell after the election?  Sell now, motherfucker!  GTFO!  Leave as fast as you can!

Tue, 10/23/2012 - 15:25 | 2913624 nofluer
nofluer's picture

1000 point? Big whoop. We're over 13 now. 1K would only take it to 12K - still waaaay too high... unless you factor in inflation for the last two years. Then it should be around 17.

HA! You equities people forgot to figure real-world inflation into your values, didn't you. We've been running around 20% a year for at least two years... closer to three. 12K x 1.6 and anything less than 19 is low.

Tue, 10/23/2012 - 16:38 | 2913927 ImnotPOTUS
ImnotPOTUS's picture

AP: Romney to appoint Romain Grosjean as the next FED Chairman

Tue, 10/23/2012 - 16:57 | 2913991 blu
blu's picture

Yes. And normally I would have opined "And the Chairsatan on hearing this turned the QE amplifier to 11" as that would ensure an Obama victory and thus his job at the head of the world's most influencial central bank.

However as the Chairsatan has recently suggested he might not want the job actually, it is possible he will not care at this point if Obama wins or loses.

And Obama surely knows this.

So now Obama needs to come up with another way to juice the economy or at least lend the perception that he is doing so.

So now, things really do become interesting.

Tue, 10/23/2012 - 18:10 | 2914188 polo007
polo007's picture

What is central banking good for?

What, so we must ask, is central banking good for when it is not even able to guarantee a stable price level?

Why keep a quasi-dictatorial creature within the government body that operates largely outside of public control? Why hold on to an institution that more often than not has failed to provide full employment and price level stability? By these criteria the Fed has indeed been a failure. What then, we must ask is the true mission of central banking as one cannot calibrate accurately the effects of monetary policy on the real economy and price level? The answer is provided by the historical origin of central banking. As Rothbard and other authors such as more recently Lawrence White have shown, central banking grew out from the cooperation between the state and the big players of the banking sector. The deal that was struck said that the big banks will finance government and that the government won’t let the big banks go bankrupt. For that purpose a lender of the last resort was installed in the form of a central bank which would obtain the privilege by the government to produce unlimited amounts of fiduciary money.

Historically the scope of discretion was restricted by the gold standard at first, yet over time the various constraints have been removed step by step beginning with World War I. With the so-called Smithsonian agreement of 1971 the last anchor for the US dollar fell. At the day when President Nixon fully abandoned what was still left of the gold standard, the starting gun was fired for the escalation of the financial sector to grow into its current gargantuan proportions. In tandem with the expansion of the financial sector, government grew its public debt into its current colossal dimensions.

While central banks are effective as lender of the last resort and thereby to safeguard the big players of the financial system from going bankrupt, they are not only incapable of promoting economic growth, employment and price level stability, they are in fact the major perpetrators of the business cycle. Always under pressure to set the interest rate as low as possible, central banks provoke artificial booms which inevitably must result in a bust. The big players in the financial market can profit on the way up without fear about the downturn as they can rely on the central bank to bail them out.

In an academic paper Bernanke (2001) and his co-author argued explicitly that central bankers should not try to prick asset bubbles but stand ready to bail out banks and financial institutions when the bubble bursts. In his speech as a Governor of the US central bank on “Monetary Policy and the Stock Market”, Bernanke declared in 2003: “The ultimate objective of monetary policymakers is to promote the health of the U.S. economy by pursuing our mandated goals of price stability and maximum sustainable output and employment. However … monetary policy actions have their most direct and immediate effects on the broader financial markets, including the stock market, government and corporate bond markets, mortgage markets, markets for consumer credit, foreign exchange markets, and many others.” The message was well understood. The big players in the financial market could rest assured that their central bank would bail them out when a new episode of the lending spree began - the housing bubble. Operating as bailout machinery for the financial system, the US central bank has thoroughly infected the monetary system with moral hazard.

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