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Is Greenspan Sealing the Market’s Fate?

Tyler Durden's picture




 

Submitted by Pater Tenebrarum of Acting Man blog,

The Third-Biggest Living Contrary Indicator of All Time Speaks Up

There once was a time when it was fair to say that Alan Greenspan was the biggest living contrary indicator of all time. Long before he became known to a wider audience, in early January of 1973, he famously pronounced (paraphrasing) that 'there is no reason to be anything but bullish now'. The stock market topped out two days later and subsequently suffered what was then its biggest collapse since the 1929-1932 bear market. That was a first hint that stock market traders should pay heed to the mutterings of the later Fed chairman when they concerned market forecasts: whatever he says, make sure you do the exact opposite.

More proof was delivered in 1996, when Greenspan bemoaned the 'irrational exuberance' in the stock market, just as it embarked on one of its biggest rallies ever. Then in 2000, Geenspan finally agreed that a 'new era' had indeed arrived; that investors according billions in market capitalization to companies that would never make a dime were acting perfectly rationally, and that there was surely no end in sight to the productivity miracle. It was the biggest sell signal he had yet produced.

The reason why we feel he must be relegated to third place is that since then, arguably two even bigger living contrary indicators have entered the scene: Ben 'the sub-prime crisis is well contained' Bernanke, and Olli 'the euro crisis is over' Rehn. Admittedly it is not yet certain who will be judged the most reliable of them by history, but in any case, when Greenspan speaks, we should definitely still pay heed.

As CNBC reports:

“Although blue-chip stocks are hitting all-time high after all-time high, former Fed Chairman Alan Greenspan told CNBC Friday that "irrational exuberance" is the last term he'd use to describe today's market. Greenspan said in a "Squawk Box" interview that stocks by historical standards are "significantly undervalued" even considering the recent moves higher. He added that the payroll tax increase didn't dent spending because of rising asset prices.”

Oh Boy! Is a crash imminent? After all, the 'Dow 36.000' guys are back as well, believe it or not. Here is James Glassman, shamelessly piping up again after leading countless investors down the garden path with his 1999 book:

“The Dow Jones Industrial Average set a record this week, but it’s still far from the mark that economist Kevin Hassett and I forecast in our 1999 book, “Dow 36,000.”

We wrote in the introduction that “it is impossible to predict how long it will take” to get to 36,000. Then, in the same paragraph, we rashly made a guess anyway: “between three and five years.”

 

Today, the far edge of that time frame is clearly in reach. From its low of 6,547 on March 9, 2009, the Dow has risen 117 percent. Another 117 percent in four years would put it at 31,022, just 16 percentage points shy of the magic number.”

(emphasis added)

The argument he forwards is just as specious today as it was then. It is of course no great feat to 'forecast' that the DJIA will 'reach 36,000 points in an unpredictable period of time'. Monetary inflation practically ensures that it will one day get there. Since the Fed's founding, the purchasing power of the currency it issues has plunged by 97%. That plunge is likely to accelerate in coming years, given the massive increase in the money supply since 2000 (US broad money TMS-2 has increased by 214% since then, i.e., there is today more than three times more money in the economy than 13 years ago).

Recognizing that making such a prediction, but not pinning a specific time frame to the magic number would make the whole exercise useless, Glassman and Hassett decided to throw their 'three to five years' target out there, just in time to mark the beginning of the worst secular bear market in a century.

Glassman offers a raft of excuses for why the forecast didn't pan out, but that is just telling us that he was never qualified to write this book. Anyone who didn't understand the dynamics of the credit and asset bubble that led to the historic market peak should have refrained from getting his unqualified opinions in print, if only for the sake of saving gullible investors from making the costly mistake of believing in this overly rosy outlook.

Incidentally, Glassman is correct when he says that it would be a good idea to enact economic policies conducive to economic growth, but he seems not to realize that this means that his renewed optimistic forecast is plainly contradicted by the economic policies that are actually pursued at present.

Dow-36000

The 'rock-solid' investment advice of yesteryear, to be 'placed on an altar next to the works of Benjamin Graham and Peter Lynch'  – it's back!

 

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Sat, 03/16/2013 - 20:48 | 3336739 buzzsaw99
buzzsaw99's picture

ole greedscam can sniff out a bubble from a mile away

Sat, 03/16/2013 - 20:50 | 3336742 cifo
cifo's picture

Why would the market crash with $85 billion injected every month?

Sat, 03/16/2013 - 20:53 | 3336754 MiguelitoRaton
MiguelitoRaton's picture

Greenspan is quite the bubble blower

Sat, 03/16/2013 - 20:57 | 3336770 american eyedol
american eyedol's picture

bill gross said the other day

"money is running out of time"

Sat, 03/16/2013 - 21:17 | 3336815 Bear
Bear's picture

Unfortunately "Our Time is running out of money"

Sat, 03/16/2013 - 21:26 | 3336842 Thomas
Thomas's picture

This is the guy who, the other day, was on tube describing the "earnings-price ratio". Maria tried to hold it together, and then he finally corrected himself. I don't think he is valid contrary indicator. I think he is brain dead--Karen Anne Quinlan of central bankers.

Sat, 03/16/2013 - 22:11 | 3336974 James_Cole
James_Cole's picture

No one comes close to Greenspan, his stupidity is legendary. The ultimate Ayn Rand disciple. 

Sat, 03/16/2013 - 22:23 | 3337013 rajat_bhatia
rajat_bhatia's picture

More money!

Sun, 03/17/2013 - 00:06 | 3337223 sun tzu
sun tzu's picture

I didn't know Rand wanted a centrally planned economy. I thought she advocated free markets. You are right up there with Greenspan and Krugman

Sun, 03/17/2013 - 00:34 | 3337253 James_Cole
James_Cole's picture

I wasn't stating opinion, it's a fact. Greenspan was literally Ayn Rand's disciple, protege might be even more appropriate. 

Here they are together at the white house, such great times:

http://1.bp.blogspot.com/-HGm2yiSd8D0/Td7VYaNv_dI/AAAAAAAAA-4/L6X_sM2gLm...

Here's Greenspan talking about how she influenced him:

http://www.noblesoul.com/orc/bio/turbulence.html

Rand's Collective became my first social circle outside the university and the economics profession. I engaged in the all-night debates and wrote spirited commentary for her newsletter with the fervor of a young acolyte drawn to a whole new set of ideas. Like any new convert, I tended to frame the concepts in their starkest, simplest terms. 

Ayn Rand and I remained close until she died in 1982, and I'm grateful for the influence she had on my life. I was intellectually limited until I met her. All of my work had been empirical and numbers-based, never values-oriented. I was a talented technician, but that was all. My logical positivism had discounted history and literature -- if you'd asked me whether Chaucer was worth reading, I'd have said, "Don't bother." Rand persuaded me to look at human beings, their values, how they work, what they do and why they do it, and how they think and why they think. This broadened my horizons far beyond the models of economics I'd learned. I began to study how societies form and how cultures behave, and to realize that economics and forecasting depend on such knowledge -- different cultures grow and create material wealth in profoundly different ways. All of this started for me with Ayn Rand. She introduced me to a vast realm from which I'd shut myself off.

Sun, 03/17/2013 - 03:17 | 3337375 toys for tits
toys for tits's picture

 

Judas Iscariot was a disciple of Christ but he isn't known now as a loyal follower.

The following is from the Ayn Rand Center:

Alan Greenspan claims that the free market failed to prevent the financial crisis, and that he is “shocked” that his professed “free-market ideology” turned out to contain a “flaw.”

But why should we take him seriously? Greenspan, while once associated with laissez-faire philosopher Ayn Rand, hasn’t advocated genuinely free markets for decades. Remember, this is a man who for two decades reveled in being, as the New York Times put it, “the infallible maestro of the financial system.”

Free markets don’t have “infallible maestros”; they liberate us from such “maestros”--the central planners who have time and again falsely claimed the ability and the right to orchestrate millions of economic lives. Free markets enable each of us to be our own maestro, conducting our own affairs, producing and trading as we judge best, and taking responsibility for the consequences when we fail.

http://www.aynrand.org/site/News2?page=NewsArticle&id=21857&news_iv_ctrl...

Sun, 03/17/2013 - 05:43 | 3337416 James_Cole
James_Cole's picture

 

But why should we take him seriously? Greenspan, while once associated with laissez-faire philosopher Ayn Rand, hasn’t advocated genuinely free markets for decades. Remember, this is a man who for two decades reveled in being, as the New York Times put it, “the infallible maestro of the financial system.”

The author of this is a high school student or what? Where's the citations? What is "for decades"? Is that twenty years? Thirty years? At what point is it consequential? 

In an article published in 1963 as part of Ayn Rand's book Capitalism: The Unknown Ideal, Greenspan declared that protection of the consumer against "dishonest and unscrupulous business was the cardinal ingredient of welfare statism."

"Regulation which is based on force and fear undermines the moral base of business dealings," he wrote. "Protection of the consumer by regulation ... is illusory."

Fast forward to 2008:

"You found that your view of the world, your ideology was not right, it was not working?" said Rep. Henry A. Waxman (D-Calif.), the committee chairman.

"Absolutely, precisely," Greenspan said. "You know, that's precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well."

Keep in mind Greenspan worked in successive Republican governments as different forms of economic advisor since Nixon, maintaining his close ties to Rand until her death.

His influence grew considerably at the end of the 80s & with his encouragement, banks ballooned in size, various forms of exotic derivatives were allowed to run wild without oversight & long-held banking regulations were tossed out the window all to predictably disastrous result.

http://www.businessinsider.com/the-warning-brooksley-borns-battle-with-a...

“You failed to prevent many of our banks from consolidating and growing to size that are now too big or too interconnected to fail,” Born added. She added that Greenspan’s views on deregulation, which he took as an article of faith, contributed to the Federal Reserve’s failure in delivering on its mandate.

Looking as angry as he could at his advanced age, Greenspan replied, “The flaw in the system I acknowledged was an ability to fully understand the state of potential risks that were fully untested… That means we were under-capitalizing the banking system for 40 or 50 years.

It's interesting you bring up Judas though, Greenspan did become something of a Judas to her (to be fair he really was her only disciple of note so he was also John, Paul etc.) by implementing her ideas on regulation directly in the financial markets on a grand scale he proved how foolish they were and thus crucified her relevance...At least in the minds of anyone with intelligence - zealots excepted. 

 

The last great note on Greenspan is how he was appointed by Reagan to 'reform' social security at which point they jacked payroll taxes and used social security 'surplus' as a semi-secret way to fund government largesse, bankrupting the program (which neither believed in to begin with) in the process.

 

 

Sun, 03/17/2013 - 18:36 | 3340047 Raymond K Hessel
Raymond K Hessel's picture

What did the protagonists working with John Galt conspire to do?

I think Greenspan is working to take down the economy, Galt style.

Sun, 03/17/2013 - 03:34 | 3337383 lewy14
lewy14's picture

He makes her sound like a hippy guru, lol.

I actually like this passage because it humanizes both of them.

Who wouldn't want, or need, an encounter which would introduce you to a vast realm from which you'd shut yourself off?

Sun, 03/17/2013 - 09:13 | 3337634 NotApplicable
NotApplicable's picture

You need to separate Rand the author from Rand the ideologue. Her books were her ticket to power. We all know what that does. She was very proud of Greenspan's entrance into DC.

Sun, 03/17/2013 - 14:07 | 3338901 kchrisc
kchrisc's picture

I normally don't comment on ignorance, it comments on itself, but I'll make the exception here.

The worse thing about Greenspan is that after several years around Rand he DOES know better but deliberately sold-out to do the opposite of what he knows is right. Now that is pathological and criminal.

Same goes for Keynes, as he was a free-market and gold-standard adherent, but then he sold-out.

There are special guillotines--dull blades--and places in hell for these people.     hujel

 

 

Sat, 03/16/2013 - 20:57 | 3336772 Divided States ...
Divided States of America's picture

What is in common between Greenspan and Glassman? Both lying Jbags.

Sat, 03/16/2013 - 21:02 | 3336787 AlaricBalth
AlaricBalth's picture

From 2008
ALAN GREENSPAN: ...And what I'm saying to you is, yes, I found a flaw. I don't know how significant or permanent it is, but I've been very distressed by that fact.

REP. HENRY WAXMAN: You found a flaw in the reality...

ALAN GREENSPAN: Flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.

Why does Greenspan even still get airtime?

Sat, 03/16/2013 - 21:26 | 3336841 Crisismode
Crisismode's picture

Because he spins the Bullshit better than most.

 

Sat, 03/16/2013 - 22:53 | 3337082 LeisureSmith
LeisureSmith's picture

He has special glands for that. But it has been many winters since his bullshit web was strong enough to capture prey. Look at the guy, he's clearly malnourished.

Sun, 03/17/2013 - 20:57 | 3340487 Theosebes Goodfellow
Theosebes Goodfellow's picture

Ah, fer' Pete's sake, have some mercy, will ya'? The poor sod still has to climb between Andrea Mitchell's legs, (when he can). That sort of thing is bound to affect his ability to reason. If it was you, yer' sanity be'd tested too!

Sat, 03/16/2013 - 22:50 | 3337072 traderjoe
traderjoe's picture

He is a paid shill for his banker masters.

Sun, 03/17/2013 - 17:09 | 3339722 sgt_doom
sgt_doom's picture

And I believe he is seriously channeling Andrew Mellon now....

Sun, 03/17/2013 - 10:00 | 3337827 Arthur Two Shed...
Arthur Two Sheds Jackson's picture

Fart jokes?

C'mon!

 

(lol)

Sat, 03/16/2013 - 20:51 | 3336744 EscapeKey
EscapeKey's picture

on a long enough inflationary timeline, every notional figure eventually goes to 36,000

Sat, 03/16/2013 - 20:52 | 3336747 eigenvalue
eigenvalue's picture

I'm waiting for shills like Jim Sinclair and Eric Sprott to offer excuses for why $5000 gold and $100 silver haven't panned out.

Precious metals are going to crash on Monday. Target price-> ZERO!

Sat, 03/16/2013 - 20:56 | 3336762 ihedgemyhedges
ihedgemyhedges's picture

Yeah, Cypriots will pull their cash from banks, open a margin account and short the GLD. You fukin' idiot........

Sat, 03/16/2013 - 21:34 | 3336864 eigenvalue
eigenvalue's picture

Do you think TPTB will refrain from pommelling precious metals when contagion spreads from Cyprus? Before the Swiss central bank pegged CHF to EUR in 2011, they created a flash crash in the gold market.

Sat, 03/16/2013 - 21:47 | 3336910 WmMcK
WmMcK's picture

Do you think TPTB will refrain from pommelling precious metals when contagion spreads from Cyprus?

I only hope they do not refrain.  More for us with strong hands to buy.

My LCS only has Au teeth right now, though.  And that Ag is so bulky.

Oh, well,  time to donate some more things to make room (or go boating again).

Sun, 03/17/2013 - 09:28 | 3337692 SilverDOG
SilverDOG's picture

eigenvalue,

 

 

That is called a SALE.

For TPTB and anyone utilizing 20/20 hindsight as a reference, while considering probabilities beyond quarterly reports.

Got PM's

Sat, 03/16/2013 - 21:34 | 3336866 disabledvet
disabledvet's picture

if you lose your 12% return on cash in the bank don't be surprised if something needs to be sold to compensate. obviously the term "zero" seems a little extreme though. "free" does not however. http://www.youtube.com/watch?v=rN_pBqg9VY4

Sat, 03/16/2013 - 20:58 | 3336775 EscapeKey
EscapeKey's picture

oh eigen, hi, could you make sure to press the world's central bankers for replies as to why the "recovery" hasn't yet set in anywhere, despite repeated reassurance of "it being just around the corner"... that would be greeaattt.

Sat, 03/16/2013 - 21:32 | 3336860 Thomas
Thomas's picture

That must be sarcasm, right? Please tell me it is.

Sat, 03/16/2013 - 21:37 | 3336875 disabledvet
disabledvet's picture

it's music man..."you just gotta feel it." it's all good.

Sat, 03/16/2013 - 21:11 | 3336801 Silveramada
Silveramada's picture

Gold and silver worth zero? the Dow and the S & P, the US$ and Treasury Bonds, these are the candidates in the run to the bottom boo boo... 

Sat, 03/16/2013 - 21:24 | 3336833 andrewp111
andrewp111's picture

If you hold 1 oz US Gold Eagles, their value will never go below $50 :)

Sat, 03/16/2013 - 21:17 | 3336814 Money Squid
Money Squid's picture

If your gonna rail on stock market predictions why not include PM price predications also. Hitler kitty has a point.

Sat, 03/16/2013 - 23:05 | 3337109 Silveramada
Silveramada's picture

yeah, has more than a stupid point: PM's due to intrisic value can't go to zero, never have ( unlike paper assets, remember Weimar Republic, you little german pussy cat?). And to say or predict : " On monday PMs goin to crush, price target ZERO" is totally turd-bs talking

Sat, 03/16/2013 - 21:17 | 3336818 GrinandBearit
GrinandBearit's picture

What a desperate, pathetic troll you are.

Sat, 03/16/2013 - 21:45 | 3336902 Croesus
Croesus's picture

@Eigenvalue:

I hope they do! I'll be sure to get my money out of my bank in Cyprus, and wire it to my sweep account at JPM, so I can buy some more!

Sat, 03/16/2013 - 22:11 | 3336973 DosZap
DosZap's picture

I'm waiting for shills like Jim Sinclair and Eric Sprott to offer excuses for why $5000 gold and $100 silver haven't panned out.

Ever heard of MANIPULATION?.There's your answer.

Sun, 03/17/2013 - 09:55 | 3337805 nodhannum
nodhannum's picture

Oh, I hope you are correct ev! I have been looking for another entry point. I lost my previous stash while fishing and need to get some additional sinkers for my hooks.

Sat, 03/16/2013 - 20:52 | 3336749 Gromit
Gromit's picture

Yes probably.

VIX 11.20 is my number. Gotta buy some SPY puts if we hit it.

 

Sat, 03/16/2013 - 21:32 | 3336752 Yen Cross
Yen Cross's picture

 Greenspan knows he's going to straight to (Dantes') ninth circle.

Sat, 03/16/2013 - 21:32 | 3336859 prains
prains's picture

that's where his favorite virgins reside, puppies

Sat, 03/16/2013 - 21:39 | 3336885 Yen Cross
Yen Cross's picture

  Thanks for the upvote. You have some pretty good ideas yourself. ;-)

Sun, 03/17/2013 - 03:10 | 3337374 Daily Bail
Daily Bail's picture

And he'll be singing his theme song every step of the way:

The Bubble Man - Greenspan Song

 

Sat, 03/16/2013 - 20:55 | 3336760 JustObserving
JustObserving's picture

Greenspan sealed America's fate as easily the largest debtor nation in the world.  And he gets credit for creating the financial crisis of 2008.  For that he deserves the title "maestro."  The irony may be lost on CNBS though.

Sat, 03/16/2013 - 21:01 | 3336784 NoDebt
NoDebt's picture

Oh, we'll get there all right.  If only by (hyper) inflation.

Sat, 03/16/2013 - 21:04 | 3336791 BlueStreet
BlueStreet's picture

With the exception of maybe The Bachelor finale, a Greenspan interview is about the most cringe worthy experience one can witness.  Andrea really should strap him down to the rocking chair and not let him leave the house.  

Sun, 03/17/2013 - 07:04 | 3337474 machineh
machineh's picture

Better yet, send him to the knackers and try to extract any residual mineral value.

Sat, 03/16/2013 - 21:15 | 3336803 Money Squid
Money Squid's picture

36,000? Yes. But, the question is 36,000 what? The Dow is 30 companies whose stock is manipulated in the interest of national security. Who cares if the Dow is 36,000,000 it has no relation to reality.

 

Anyone seen Mega Hedge fund Trader?

And what became of Money McBags?

Sun, 03/17/2013 - 00:20 | 3337248 delacroix
delacroix's picture

mcbags got a job. mad hedge fund trader was eaten by his own ego.

Sat, 03/16/2013 - 21:18 | 3336819 rzero
rzero's picture

My cycles work is forecasting a stagflationary shock beginning in the next two years, as began in 1973. This time it will be much worse.

Greenspan apparently concurs.

Sat, 03/16/2013 - 21:30 | 3336850 Crisismode
Crisismode's picture

"beginning in the next two years"

 

That's sufficiently vague for me. Sounds like excellent timing advice.

 

/sarc

Sat, 03/16/2013 - 21:39 | 3336886 rzero
rzero's picture

When you're looking at multi-century charts, two years ain't shit. And it is good timing advice if you know what to do with it.

Sat, 03/16/2013 - 22:30 | 3337025 Stud Duck
Stud Duck's picture

Exactly, then Obummer will appoint another Volker, interest to the moon, and vazoom, slow spin into a collaspe, of all the big urban area. Probably a 2 year drought thrown into to send food, fuel, electricity to 6-7 times what it is now.

 

Sun, 03/17/2013 - 09:51 | 3337788 SilverDOG
SilverDOG's picture

rzero,

 

Inflation, stagflation, defaltion and hyperinflation are occurring. Depends upon where you stand financially, and geologically, and what you are pursuing. Dollar collapse will level the field with hyperinflation; field of paper holding 'tards.

In the next two years, you will see ALL balloon effects beyond your lenient imaginative prediction.

Got PM's?

Sat, 03/16/2013 - 21:21 | 3336825 A Lunatic
A Lunatic's picture

My don'tgiveashitometer is already reading 36,000.......and rising.............

Sat, 03/16/2013 - 21:23 | 3336834 lotusblue
lotusblue's picture

Watched Greenspan friday,thought the same-SHORT everthing.

Cyprus may be catalyst for the %10 market pull-back.

The dow 36,000,WTF.insanity.

We're moving toward worldwide ression as far as I can tell or can kicking till system meltsdown entirely.

Sat, 03/16/2013 - 21:29 | 3336848 gwar5
gwar5's picture

The Green Reaper speaks. 

 

Didn't he do a Mea Culpa in front of Congress after he took rates to record lows and caused the subprime bubble? Now rates are even lower and he's not claiming it's just more irrational exuberance?  I scratch my head.

 

 

Sat, 03/16/2013 - 21:44 | 3336896 disabledvet
disabledvet's picture

indeed. "what are you pandering to this time" comes to mind. "something from outer space" comes to mind again as well. http://www.youtube.com/watch?v=4B5zmDz4vR4 i think he'd look good dressed like that actually. you know "actually i have a song i'd like to sing you Maria if you don't mind."

Sat, 03/16/2013 - 21:35 | 3336869 KashNCarry
KashNCarry's picture
Black Swan event=Alan “I have found a flaw...” Greenspan piping up during these hysterical (oops historical) market highs. Hmm, 'stocks significantly' undervalued huh?
Sat, 03/16/2013 - 21:43 | 3336900 Lucius Corneliu...
Lucius Cornelius Sulla's picture

The very fact that a central banker says something to instill confidence is proof positive that they are trying to prop something up.  Its the same all over the world.  I remember when Spain's Finance Minister went on record a few years back stating how sound their banking system was.  You have to ask yourself, "If its so sound then why do you have to say anything?"

Sat, 03/16/2013 - 22:37 | 3336906 Editor X
Editor X's picture

All Hail King Greenspan, the Maestro of FED Sewage

There he sits in his soiled diaper. Proclaiming this and that, awaiting the media and the markets trembling from the fruits of his economic "wisdom".

Andrea Mitchell married him. Perhaps as she feeds him extra strength metamucil from his gilded cup, at some point will come an awakening. As his bowels rumble and he begs for the A and D ointment to be applied to his excoriated buttocks may he experience the fruits of the irrational exuberance of the elites who promoted him to King Shit of Turd Mountain.

makethemfearyou.com

Sat, 03/16/2013 - 21:56 | 3336930 SillySalesmanQu...
SillySalesmanQuestion's picture

Greenspin, the ayatollah of moolah moolah. Old pruneface needs to take some more medication and motorscooter off into the sunset.

Sat, 03/16/2013 - 22:09 | 3336967 Manipuflation
Manipuflation's picture

Well, this is some sort of economic indicator I think.  I have basic cable service.  The other day, I felt like turning on CNBS and running it mute on the plasma.  Their graphics and scroll are usually good if nothing else.  Click, click, click.  Huh?  No CNBS?

So I contacted the oligarch cable service provider and asked why my channels are disappearing as CNBS was not the only channel to disappear.  Well, wouldn't you know that CNBS is now considered a "premium" channel and I would have to upgrade service plans to get it back.  Are you fucking kidding me???  I declined.

Sun, 03/17/2013 - 06:05 | 3337449 Tango in the Blight
Tango in the Blight's picture

You should be paid to watch that shit.

Sun, 03/17/2013 - 07:10 | 3337476 machineh
machineh's picture

It hurts when they clamp your eyelids open. 

Five hours into it I was screaming, 'Make it stop, make it stop!'

Now the docs say I'm on Cypruxa for life.

Sun, 03/17/2013 - 09:58 | 3337821 SilverDOG
SilverDOG's picture

Oh,... but YOU pay.

Pay and Pay and Pay.

 

No no NOO

                 O

                   O

                     O

                       O

                         O

                           !

Sat, 03/16/2013 - 22:50 | 3337071 earleflorida
earleflorida's picture

enjoyable read with much emphasis on LMAO... thanks

couldn't be more correct :-))

Sat, 03/16/2013 - 23:20 | 3337145 the grateful un...
the grateful unemployed's picture

Greensqueak is right, the DOW adjusted for inflation is a series of lower lows and lower highs, vastly underperforming. the real solution if we ask the maestro, is that the market should be buying businesses with pricing power [utilities and anything which functions as a utility] and products which have value added [anything which requires very little material, but lots of labor and handling costs - to that end forget iphones, or any other cheap labor process - and think oil drilling, mining, etc. in other words oil may fall to $50 a bbl BUT the cost of getting that oil to market will triple because not just any yahoo {computer programmer} can be a wildcat.]

technology is a seductive princess, but it doesn't solve everything, and the techology development curve is topping. latest productivity numbers down well maestro, answer that...

Sun, 03/17/2013 - 00:17 | 3337241 q99x2
q99x2's picture

Premature enlightenment.

Our fathers were models for God. If our fathers failed what does that tell us about God?

Sun, 03/17/2013 - 00:29 | 3337255 delacroix
delacroix's picture

he can't be modeled?

Sun, 03/17/2013 - 00:50 | 3337280 TrulyStupid
TrulyStupid's picture

I knew a model once.. gave a godly BJ for money. Does this count ?

Sun, 03/17/2013 - 03:50 | 3337391 bunnyswanson
bunnyswanson's picture

We are taken back to the 10th century to learn about the origins of money, along with the gold standard and its abandonment, characterized by Hartman as “thievery” and the beginning of the worst excess of all: ”how to turn worthless paper into gold.”

So far simplistic, but still rather innocuous. Then it begins. A sign, “House of Rothschild” is shown in front of a Frankenstein-like castle where bankers, whose faces are red shields, give birth to a tentacled monster with the same shielded face.

”Thus was invented the ultimate machine to steal real money and enslave all the nations on earth,” intones Hartman. In fact, the Protocols centers on an almost identical notion of nation-state servitude: ”Whether a State exhausts itself in its own convulsions, whether its internal discord brings it under the power of external foes–in any case it can be accounted irretrievably lost: it is in our power.”

Mark Twain:

“The trouble with the world is not that people know too little, but that they know so many things that ain’t so.”

Arnold Ahlert is a contributing columnist to the conservative website JewishWorldReview.com.

http://frontpagemag.com/2011/arnold-ahlert/reviving-the-protocols-of-the-elders-of-zion/

Reviving the Protocols of the Elders of Zion

It's time we all get on the same page and say it out loud:  The banks are trying to rule the world.  I think that if this is allowed to continue, we will see a future of nothing but despair and regret.  People need to start talking to each other because it will be extremely difficult to reverse this if it reaches a stage of NATO presence.  Seriously, this is very troubling to not only use but mankind for the rest of time.  Who are these people?  What are their intentions?  Why are they hiding?  Why is everyone lying?  We have a right to know this.  This is not a game.  This is not a small group of people who have a dysfunctional relationship.  This is the entire world and there will be no escape from it.  Nowhere to run.  Love will be smothered by loss of privacy.  Just keep talking.  Don't stop. 

Sun, 03/17/2013 - 06:48 | 3337464 negative rates
negative rates's picture

Any ending is better than a mending, when it comes to the feds wife.

Sun, 03/17/2013 - 07:37 | 3337501 Sandmann
Sandmann's picture

I admire the Americans. They had a Protestant Settlement in New England but soon it was flooded with Italian and Irish Catholics and the Boston Brahmins disappeared. Then they had a Russian Jewish influx and the East Coast elites changed again. They had a New Frontier in the West and Southwest but that became Hispanic. So now the USA is reduced to appointing Snake Oil Salesmen to the Federal Reserve who sell them ARMs against their Income, their Children's incomes, their Grandchildren's Incomes and their entire real-estate and tell them that the nice Chinese laundryman has no interest other than ensure their welfare as God's Annointed.

This is the most bizarre destruction of a nation since Jacob and Esau

Sun, 03/17/2013 - 08:48 | 3337585 falak pema
falak pema's picture

Before the protestant settlement they had the american indian tribes; who all dispappeared.

So "the most bizarre destruction of a nation" began a little earlier than your time line.

Our vision of history can sometimes be very selective. 

And... those snake oil salesmen that you talk about are part of a power elite running one of the most ominous empires that the world has known.

So if nemesis comes home to bite them...its a bit like Rome of old, n'est ce pas?

Sun, 03/17/2013 - 10:08 | 3337861 Sandmann
Sandmann's picture

Falak, you are off the wall ! The American Indian tribes were nomads and they had no "nation" in terms of the Treaty of Westphalia. Your silly trivial politicall-correct point is shallow and trite. It is irrelevant to a modern nation state. By the same token the Mughals and Ottomans should be written out of history. You are simply irrelevant to serious discussion

Sun, 03/17/2013 - 10:19 | 3337907 SilverDOG
SilverDOG's picture

Sandmann,

 

You are surrounded BY walls.

Grasping what you are told is a choice.

Believing is trained.

 

 

 

Sun, 03/17/2013 - 11:34 | 3337988 falak pema
falak pema's picture

By the same token Julius Caesar did not ethnically cleanse Gaul; nor Jersualem etc. etc. Leading to Rome's inevitable downfall 5 centuries later. Cause and effect! It fashioned the mind set of our continent for 2000 years.

Hey if nation states are when history begins and genocides never existed before them, then the obliteration of Occitan nation in southern France never occurred, and anyways is irrelevant to European history. It stamped the Papal church with the mark of Infamy; never forgotten by the people of France. History lives on in popular sentiment/mind set for centuries. I'm reading you better now Sandmann.

The Papal bull that carved up the world in 1492, <Tordesillas treaty, has no relevance to world history!  It only created Brasil and Cortes Mexico! Nor the Concordat that François I signed with Pope in 1516 which freed France from Papal control, nor the Emergence of protestant England in 1530 under Tudorian breakaway; nor the burning of Rome by Charles V that destroyed Rome's preeminence, nor the battle of Lepanto that signalled the end of Renaissance and the end of Italy as global player.

The Ottomans you want to write off from history are now saying hello to you once again...by the looks of it. 

Serious discussion is a prepackaged dish that comes out of Wal Mart according to you.

All human history is of relevance; Confucius he would agree.

 

Sun, 03/17/2013 - 12:09 | 3338400 ATG
ATG's picture

Ignorance is no excuse for irrelevance Dept:

The longstanding Native American Confederacy was admired by Benjamin Franklin, William Penn and George Washington and contributed to the making of the US Constitution, Democracy and Republic, according to the US Senate: 

http://www.senate.gov/reference/resources/pdf/hconres331.pdf

"The United States ultimately negotiated, signed and ratified almost 390 treaties with American Indian tribes. Most of these treaties are still valid today.":

http://www.flashpointmag.com/amindus.htm

http://en.wikipedia.org/wiki/Tribal_sovereignty_in_the_United_States

http://www.indiangaming.com/istore/Dec09_Stevens.pdf

http://ualr.edu/sequoyah/uploads/2012/03/The%20Treaty%20of%20the%20Lenni...

 

 

Sun, 03/17/2013 - 10:14 | 3337884 SilverDOG
SilverDOG's picture

falak pema

 

I agree.

Especially so considering China distributed virus death to Native Americans 50 yrs before Crookumbus landed in 1492.

90% of the population was eliminated, enabling another disease floating, oligarchy pawn to survive.

Rockefeller printed all the school history books and funded "restructuring" of history in the early 1900's.

Now, nobody looks to see the difference between their ass and  their elbow.

 

 

Sun, 03/17/2013 - 12:37 | 3338484 ATG
ATG's picture

Always wondered where First Baron Field Marshall Lord Jeffrey Amherst and Commander Pitt got the biowarfare idea for trading small pox blankets to the Indians to beat the French and Indian part of the Seven Years' War Churchill called the first World War:

http://en.wikipedia.org/wiki/Jeffery_Amherst,_1st_Baron_Amherst

His masonic lodge connections with the founding fathers led him twice to refuse King George's commission to prosecute the Revolutionary War, or we would be bowing and curtseying to Queen Elizabeth today, instead of putting our arms on her, giving her an iPod and returning the Churchill bust:

http://watch.pair.com/mason.html

http://bit.ly/ZKAHib

 

Sun, 03/17/2013 - 13:21 | 3338725 Diogenes
Diogenes's picture

Europe gave the americas alcohol and smallpox, america gave europe tobacco and syphillis.

Sun, 03/17/2013 - 11:14 | 3338150 MGA_1
MGA_1's picture

Probably good reason to bag on greenspan, but surprisingly enough, it looks like he kept the dollar on a pseudo gold standard in the 90's - now, the 2000's is another story....

Sun, 03/17/2013 - 11:23 | 3338182 Crassus
Crassus's picture

Greenspan was and is nothing more than a red team political operative. He convinced Clinton everything would be fine if he payed down the debt (which would derail any blue team social programs). Clinton fell for it.  When G. W. Bush got into office and assembled his war Cabinet, Greenspan did a 180 and said debt doesn't matter, spend away.

Sun, 03/17/2013 - 12:48 | 3338189 ATG
ATG's picture

No more Blue and Red or Gold and Silver Teams, eh?

We're all Americans now...

Sun, 03/17/2013 - 11:26 | 3338186 ATG
ATG's picture

Hank the Hammer Paulson's 'No risk in Subprimes' surely deserves a top three spot in the pantheon of headline official pronouncements to fade trade:

http://richcash8tradeblog.blogspot.com/

Sun, 03/17/2013 - 12:19 | 3338439 moneybots
moneybots's picture

"Alan Greenspan claims that the free market failed to prevent the financial crisis, and that he is “shocked” that his professed “free-market ideology” turned out to contain a “flaw.”"

 

When is Greenspan lying?  His lips are moving.

 

Greenspan wrote back in the 1960's that 1920's FED policy lead into the Great Depression.  He DOUBLED DOWN  on that policy when he was in charge of FED policy.  Greenspan was not at all shocked that his ideology turned out to have a flaw.  He wrote about well in advance.  Think Greenspan couldn't see a bubble while it was forming?  There is a bridge in Brooklyn for sale real cheap.

Sun, 03/17/2013 - 12:46 | 3338535 ATG
ATG's picture

AG wrote Gold and Economic Freedom for Capitalism, the Unknown Ideal in 1966 for his muse Ayn Rand, switched from sax to clarinet, then pumped and dumped the dollar like all Fed chairs:

http://constitution.org/mon/greenspan_gold.htm

Sun, 03/17/2013 - 13:28 | 3338694 ATG
ATG's picture

From Greenspan's 1966 essay on Gold and Economic Freedom in Ayn Rand's Capitalism, the Unknown Ideal:

...The "Fed" [by 1929] succeeded; it stopped the gold loss, but it nearly destroyed the economies of the world, in the process.

The excess credit which the Fed pumped into the economy spilled over into the stock market, triggering a fantastic speculative boom.

Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom.

But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence.

As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures.

The world economies plunged into the Great Depression of the 1930's.

With a logic reminiscent of a generation earlier, statists argued that the gold standard was largely to blame for the credit debacle which led to the Great Depression.

If the gold standard had not existed, they argued, Britain's abandonment of gold payments in 1931 would not have caused the failure of banks all over the world.

(The irony was that since 1913, we had been, not on a gold standard, but on what may be termed "a mixed gold standard"; yet it is gold that took the blame.)

But the opposition to the gold standard in any form — from a growing number of welfare-state advocates — was prompted by a much subtler insight: the realization that the gold standard is incompatible with chronic deficit spending (the hallmark of the welfare state).

Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes.

A substantial part of the confiscation is effected by taxation.

But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale.

Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset.

But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets.

A large volume of new government bonds can be sold to the public only at progressively higher interest rates.

Thus, government deficit spending under a gold standard is severely limited.

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit.

They have created paper reserves in the form of government bonds which — through a complex series of steps — the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold.

The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset.

But the fact is that there are now more claims outstanding than real assets.

The law of supply and demand is not to be conned.

As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise.

Thus the earnings saved by the productive members of the society lose value in terms of goods.

When the economy's books are finally balanced, one finds that this loss in value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.

There is no safe store of value.

If there were, the government would have to make its holding illegal, as was done in the case of gold.

If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods.

The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold.

Deficit spending is simply a scheme for the confiscation of wealth.

Gold stands in the way of this insidious process.

It stands as a protector of property rights.

If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard.

http://constitution.org/mon/greenspan_gold.htm

 

Sun, 03/17/2013 - 15:04 | 3339178 AlltheWine
AlltheWine's picture

Hmmm...idea for this post borrowed from this post earlier this week??

http://www.onlypricesmatter.com/2013/03/13/is-james-glassman-really-that...

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