Biderman On The Market's 'A-Ha' Moment And Obama's (Apparent) Omnipotence

Tyler Durden's picture

TrimTabs' CEO Charles Biderman finds it hard to hide his disdain for the omnipotent reality that President Obama espoused of a non-deficit increasing State of the Union solution to all our ills (from climate, income inequality, opportunity, and health) as he notes the politicians "do not seem to understand is that big government is, in fact, the problem, not the solution."

The problem is it is hard to find one service the government provides that is effective, other then writing checks. We have not won the federal wars on poverty, or drugs, nor overseas wars in Iraq, and Afghanistan - so although governments have rarely successfully provided services, we have a government committed to doing just that.

This faith in government omnipotence is now bleeding over into stocks, as Biderman notes "since January 1, investors are pouring billions into the markets in the mistaken belief that the “fake” money created by central banks is just as good as previously existing money, and the markets will keep soaring. But for how long?"

He is clear on the implication of this "magical thinking" At some point "the markets will have an “aha” moment and stop allowing central banks to use newly created money with which to pay government bills. When that happens the markets will crash."


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malikai's picture

I love these Biderman stories.

Here's one of my favorites from back in the day when he had words with Schiff:

mikla's picture

Agreed.  Government is merely market distortions, ensuring capital mis-allocation.

Thus, people are "worse-off".  Unfortunately, most people don't understand "opportunity cost", so it is easy for them to mis-understand *why* they have "less-of-everything" and "increasing-social-suffering".

People *assume* "economies of scale" with government.  They misunderstand the possibility of "dis-economies of scale".

Last, government is "overhead".  That can be of value, if we had "Police" and "Fire" and "Regulated Markets".  However, corruption has ensured we do not get the benefits of regulation, but we get all the penalties of organized crime with which every citizen is forced to interact.

Randall Cabot's picture

Can vacuum tubes say Aha?

Mr Lennon Hendrix's picture

Biderman's back?  The dude that went long Facebook and then lied about his positions?  He is being posted here again?  Really? 



malikai's picture

For a second I thought you reposted my link. Then I checked. It turns out I posted the wrong one. I meant to post the one you did, but posted the FMJ video instead. Meh.

I guess what I posted was close enough to what really happened in the Biderman vs. Schiff video anyway.

The They's picture

It's the thought that counts ;)

Svendblaaskaeg's picture

"Then I checked. It turns out I posted the wrong one"

never mind my down arrow then

Its Only Rock N Roll's picture

Never get enough of that was so cute when the "journalists" bantered about the $9T debt ceiling before the interview....those were good times indeed.

Deacon Frost's picture

Perhaps Biderman had received an epiphany since those days back in 2006?

DoChenRollingBearing's picture

@ Mr L H

Good on you dude, + 1.  Junks for truthiness?

French Frog's picture

Is 'truthiness' related to 'truthishly'?

And yes DCRB, there is a self-appointed - and dare I say completely missing the point - ZH police that will junk anyone daring to question any 'official' thread in here.

French Frog's picture

He is being posted here again? Really?

Did you not know that ZH was a plant by GS to make people constantly go short the market when the right strategy has been to BTFD since 2009?


Spigot's picture

Once the bond boys figure out that Japan is committed to hyperinflation, and that means everyone else will also have to commit to hyperinflation in order to keep some kind of parity, and that means that fixed interest rate, fixed currency bonds are soon to become worth only pennies on the dollar, and then begin to sell the shit out of any and all bonds, and interest rates zoom through the roof as all the vacuum tubes and relays hit the SELL switch and drive it through the control panel, and deriviatives nukes start popping in the underpants of every bank, insurance company, etc CFO/COO/CEO's on the planet leaving behind a combined crater the size of Jupiter, with nothing but stunned looks and every "leader" in the world wimpering like little teenage girls who realize THEY will not have a fucking Mall to go to, let alone BUY ANYTHING from (while their populous is burning them at the stake) ... then, my friend, and only then, will you recognize the utter destruction these disgusting fools have wrot.

Chuck Walla's picture

He misses the point. Obama only claims he can solve problems.  Obama wants power, he doesn't care about problems.



Hohum's picture

He seems quite vague.  What exactly is the mechanism for the "aha" moment?  Plunging corporate profits?  Oil price increases?  A reverse in animal spirits?  Bad weather?

nmewn's picture

"What exactly is the mechanism for the "aha" moment?"

Kate Upton.

krispkritter's picture

That's an 'Oh-ho-so-that's-how-big-it-gets' moment...

Mr Lennon Hendrix's picture

He doesn't fucking know.  He just rambles bullshit and hopes people will keep paying him to lose money.

Goldman Sachs owned Trimtabs by the way.  Oh, and GS had a private stake in Facebook.  Oh, and Trimtabs went long Facebook at the IPO.

Biderman is a joke.

Cabreado's picture

I didn't hear any jokes there... could you point one out?

Perhaps you will rue the day when you ridiculed the purveyors of simple truth.


Mr Lennon Hendrix's picture

Biderman.  Runs.  An investment group.  That was owned by Goldman Sachs.  When it had a buy rating on facebook.  Goldman Sachs.  Owned.  Facebook.

Did I really need to spell it out?

Or is it....

Do as he says, not as he does?

Go get fleeced by GS anyway you like, I'm not having it.

Cabreado's picture

We're all getting fleeced by GS.

Regardless the baggage -- yours included -- when you hear truth, don't shove a rag in it.

Tapeworm's picture

At Lennon Hendrix, if this is what you wanted:

edit: I stripped the h-tt-p so that the link would show the reference to FB

tenpanhandle's picture

Are "aha" moments and "oh shit" moments the same thing?

El Oregonian's picture

No, "Aha" moments are when others srew up, "Oh Shit" moments are when you screw up...

Bunga Bunga's picture

Politicians "do not seem to understand is that big government is, in fact, the problem, not the solution."

That's a banality. If politicians understood, they would not exist.

StychoKiller's picture

They're paid (bribed) to NOT understand that.

NoDebt's picture

Nah, nah, nah.  They are sure as hell SOMEBODY'S solution, or they wouldn't exist, let alone grow exponentially like a virus.  You just aren't that somebody.

lunaticfringe's picture

Everything is a lie. The market is a lie. Obama is a lie. He will never be held accountable. 

Get ok with this. If I never pimp another blog.

Rainman's picture

Cheers to the brotherhood of partisan atheists...!!

The Alarmist's picture

You heard it here first ... The markets will never, ever crash again.  Our PTB will see to it even if it means killing the markets to save the markets.

The Alarmist's picture

Aha moment, or Ahi moment?  Don't look now, but you are surrounded by the Seventh Fleet ... Ok, would you believe you are surrounded by an angry school of tuna?

Being Free's picture

+1 for the Max Smart memory.  Which reminds me, Agent 99 ... Aha

francis_sawyer's picture

How about a couple of minnows & an anchovy...

Everybodys All American's picture

Biderman needs to back that camera away a bit. I always find myself agreeing the markets can't go any higher after they go up yet another 1000 Dow points. I'm concluding the market is so broken that it may never go down again.

FreeMktFisherMN's picture

the market isn't going up. The fiat in which it is priced is plentiful. In the 19th century there was gasp deflation, and incredible productivity gains as people reaped the benefits of their gains in productivity with lower prices due to sound money. 

are we there yet's picture

At least no one will be protesting publicly. H.R. 347 was passed last year that makes it a federal crime to protest or disrupt even acidentally anywhere in the country whenever a secret service protected individual is nearby, even if unknown to the individual that is so charged. Forget that pesky first ammendment. The first ammendment is rude in how it throws off the teleprompter. 'Respect my authoritii' quote Cartman.

Atomizer's picture

Charles.. Your one of my daily reads. Keep up your great work. This corrupt government is on a slippery slope. Funny how some step forward, yet others think they can avoid procesution. 

Mr Lennon Hendrix's picture

SO while reading him ramble about the corrupt governemnt did you take his advice and buy facebook at the IPO?

Mae Kadoodie's picture

The Feds peed in the pool.  i'm not going swimming.

davidsmith's picture

At some point "the markets will have an “aha” moment and stop allowing central banks to use newly created money with which to pay government bills. When that happens the markets will crash."


Dream on!! This will NEVER happen.   There is no market: how could it crash??

andrewp111's picture

Geopolitical oil shock. $20 gas will crash everything.

q99x2's picture

Replace the Federal Government with open source software.

km4's picture


Incomes Flat in Recovery, but Not for the 1%

The disparity between top earners and everybody else can be attributed, in part, to differences in how the two groups make their money. The wealthy have benefited from a four-year boom in the stock market, while high rates of unemployment have continued to hold down the income of wage earners.

“We have in the middle basically three decades of problems compounded by high unemployment,” said Lawrence Mishel of the Economic Policy Institute, a left-of-center research group in Washington. “That high unemployment we know depresses wage growth throughout the wage scale, but more so for the bottom than the middle and the middle than the top.”

In his analysis, Mr. Saez said he saw no reason that the trend would reverse for 2012, which has not yet been analyzed. For that year, the “top 1 percent income will likely surge, due to booming stock prices, as well as retiming of income to avoid the higher 2013 top tax rates,” Mr. Saez wrote, referring to income tax increases for the wealthy that were passed by Congress in January. The incomes of the other “99 percent will likely grow much more modestly,” he said.


Mr Lennon Hendrix's picture

Yeah, the insiders all sell their shares at the tops, then the Fed does QE at the low of the cycle, and stocks go back up....

....where the insiders sell their shares....

andrewp111's picture

Keep in mind the insiders get their shares for free. The selling price is 100% profit.

treasurefish's picture

Will High Frequency Trading Robots ever become intelligent?