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Central Banks Join The Herd, Openly Buying Stocks In Record Amounts
When tin-foil-hat wearing digital dickweed blogs first suggested that Central Banks were actively buying stocks, the mainstream media scoffed at the idiocy and un-independence of such an idea. However, it is clear the central banks themselves are now not only actively buying stocks but are activley encouraging it and propagandizing their efforts to lever this last policy tool left in the toolbox.
As Bloomberg reports, 23% of central bankers surveyed said the bank owns shares and plans to buy more. From the Bank of Japan to the Bank of Israel and with the SNB and the Czech National Bank now at over 10% allocation of reserves to stocks, is it any wonder there is an inexorable bid under the 'free' markets. Rick Santelli is rightly concerned that, "there is a danger that everyone is loaded in the same direction," asking what happens if all the Central Bank pump-priming does not work, given these equity valuations, "who gets caught holding the bag? What chairs are left when the music stops?"
Central banks, guardians of the world’s $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.
...
In a survey of 60 central bankers this month by Central Banking Publications and Royal Bank of Scotland Group Plc, 23 percent said they own shares or plan to buy them. The Bank of Japan, holder of the second-biggest reserves, said April 4 it will more than double investments in equity exchange-traded funds to 3.5 trillion yen ($35.2 billion) by 2014. The Bank of Israel bought stocks for the first time last year while the Swiss National Bank and the Czech National Bank have boosted their holdings to at least 10 percent of reserves.
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“If reserves are growing, so are diversification pressures. Equities are not for every bank tomorrow, but more are continuing down this path.”
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The survey of 60 central bankers, overseeing a combined $6.7 trillion, found that low bond returns had prompted almost half to take on more risk. Fourteen said they had already invested in equities or would do so within five years.
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Even so, 70 percent of the central bankers in the survey indicated that equities are “beyond the pale.”
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Some central banks, including the Fed in Washington and the Bank of England in London, have no mandate to buy stocks directly.
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the SNB has allocated about 12 percent of assets to passive funds tracking equity indexes.
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“Central banks are looking at assets that I wouldn’t have necessarily expected in times gone by,”
Finally, when all the central banks have bid up all stocks to just shy of infinity using electronic monetary equivalent 1s and 0s (which can be created to precisely infinity if and when needed), will the BOJ, Fed and ECB be forced to start shopping in the JCPenney 90%-off closeout rack next?
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We all know the rest of the story here. Once central banks start buying things they can't stop.
Sorta like eating Chinese food
This is no surprise! The attempt to juice equity share prices has now gone nuclear! They have jumped the shark in their crusade to drive up stock markets world wide. I only ask this question, "Who is this meant to help?"
It can only help those who are long stocks. Who are they? Every insider that knew central banks would step in and activly by stocks!
I am sick of even posting about this corruption of the so called market. This ain't a market. Who can claim it is? It is a giant wealth transfer machine to get all the printed money into the hands of a connected insider elite. A few 401K's and retain investors may make some money, but when the game fails, they will be destroyed.
I seriously never thought I would live long enough to see the fiscal gymnastics that the powers that be in Banking would go to to get wealth out of the real economy. It is no wonder the EU and the USA and Japan are falling into a black hole as regards jobs, wages and the mainstreet economy. Bloodsucking bankers can only leech so much blood before the host dies. I work in the real economy, and it is on death fucking row!
well we all need to buy in soon so they have someone to offload them on.
"I am sick of even posting about this corruption of the so called market."
You are doing just fine so keep on.
Simple. Yield is drying up. In fact, organic yield dried up some time ago and synthetic yield (shadow banking) was turned loose (aka deregulation) to get more out of the system (e.g. wealth transfer on steroids). We are now squarely in economic cannabalism territory where the prudent are being eaten alive to supply the system with more yield. And, there is no way out of this mode until real growth can start again. Unlikely with an aging population, many cities and countries reaching maximum social complexity, energy/resource constraints becoming dominant issues, etc.
"centerline" I agree completely. Much of these fiscal manipulations and money printing is designed to not only do a massive transfer of the money printers product into the hands of banks and big trading houses, but also to hide the collapse in hopes that the unlimited money printing can somehow spur a real return to economic growth. This seems dubious at best. The systemic core economic problems are varied and many, it all came to a head in 2008 after the Fed had dodged much since the tech bubble bursting.
The hopes of getting a bubble to grow seems aimed at the stock market, this bubble is their last hope, though housing is still being manipulated upwards as best they can.
Even if they get a temporary bubble in wealth effect stocks, it has no real economy backing. At the basic level, this is simple money printing in the attempt to make green paper into economic growth, inovation and productivity. This is a fucking joke. The way the real economy works, savers work and save excess earned capital and this then provided investment capital to spur more economic growth. But the Fed has declared savers to be "enemies of the people", "agents of the enemy" "traitors against banking". How does the main street economy begin a solid and real growth pattern when the Fed is running a deliberate attempt to crush savers, econ 101 points out the need for workers to work, be productive and SAVE a portion of their earnings for later use. This capital store of real value os what real business would tap into to invest in new ideas, new plant, new equipment and a motivated work force to carry through with free market competition between other businesses. IN past history, the evidence proves that this form of economic growth is what really produces economic growth of the real "wealth effect" kind.
With the Fed and the Governemnt determined to print money and juice all forms of equities for the benefit of those long stocks, and to crush the wages of workers, to crush their savings, we have a system primed to die. All the Fed cares about is making the winners into giant winners, the rest of America is expendable. And it is going under.
Obama, Bush, Republican congressmen democratic congressmen, thay are all bribed and threatened into forcing this system upon America. Mr. Obama is there to suck in the so called liberals to support the Neo-Liberal globalization of the economy. Much as Clinton got this Neo-Liberal ball rolling, Obama has followed the same course. He was allowed to be president because he was known to be trustworthy and a person who would follow the Clinton agenda. Bush too was a solid Neo-Liberal globalizer. While people get worked up over social issues, both parties are strickt followers of the Neo-Liberal economic system that has moved in since Reagan's days.
Banks and their puppet the FED, are all powerful at this point. Inbetween being a war monger and drone warrior, Mr. Obama follows the bankers orders and sets his main aim as feeding them the newly printed billions and sending the middle class into debt servitude to the bankers.
I have given up on the Red versus Blue scam. Really, partisan politics fires people up. Obama is called a socialist, but how does this socialist preside over unheard of record corporate profits in the midst of a long and terrible recession? How does this peace nick president feed weapons into Al-Qaeda in Syria, Libya and other nations. Staying up nights, the liberal peaceful Obama spends his time approving the CIA's kill lists and then turning in for a nights sleep while the drones fly his missions to kill. Facts coming out show most drone deaths are civilians, kids and the mothers. To get one suspect, Mr. Obama is prepared to fly over another nations sovereign terrirtory and kill everyone inside the killing range of the hell fire missiles. WIthout even solid evidence that those beig killed have threatened the USA.
Obama is a killer and a bankers puppet. Yet liberals love him. That means liberals are stupid. I fear the Republicans are no bettr, the Bush record shows his puppet status to the bankers.
Pretty sad story all around, no?
There's a certain irresistible beauty in the increasingly obvious, and desparate moves being made by TPTB.
"When tin-foil-hat wearing digital dickweed blogs first suggested that Central Banks were actively buying stocks, the mainstream media scoffed at the idiocy and un-independence of such an idea."
Priceless.
"Priceless" indeed! How many trolls have slammed people who claimed central banks would step up and buy stocks? I have seen people ripped up for claiming this would happen. Now where are those troll fucks?
Over on the gold threads is where you can find them. Or on MarketWatch.
I'm one of the folks who said it would happen....
And I'm still here...
And they will start targeting Nominal GDP in order to make the numbers just plain look bigger and better ...
Meaning somewhere, they'll let gold run, again.
And they'll have no choice in any of this until U<6.5%.
That's all that matters.... The Brenak told Congress so, and Congress loves low interest rates and low unemployment... and can't stop waltzing all over its own dick, in cleats.
And has legislative powers over the Central Bank...
Mexican Standoff...
whistling aimless tunes....
They'll pretend like it was obvious that the CB has ALWAYS been buying stocks, exactly as they should to promote a strong economy.
It's all about aligning oneself with the current direction of the wind.
Who is the Key Puppetmaster on all of this, exactly? de Rothchilde? It ain't the Bernank - he's just a puppet, too, methinks - although a highly connected one. Who's the MF'er? The end-timer?
Illusion of Democracy today.
People sponsored by the rich, make false promises to the masses to get elected. Distribute national wealth amongst themselves and their sponsors (Industrialists) and when that is not enough borrow money from rest of the world and continue the distribution process. The borrowed money has to be paid back by taxing the masses keeping in mind that tax rules are made such that the politicians and their sponsors pay minimum or no taxes.
End of political tenure, rinse and repeat till the whole system breaks down and the world wealth is cornered by a miniscule of the population.
http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in
This is not shocking. Greenspan used to talk about buying up companies with the "surpluses" of the 90s. With infinite printing, and the world accepting this bullshit why not prop up the markets and buy companies up with infinite debt? The largest leveraged buy out in the history of the world.
"We are very constructive on the market at these levels and continue to find compelling values"---Wall St Pundit..?? NO, Central Banker...!!
....
In this order
1) Build good credit.
2) Build massive amount of credit availability.
3) Buy gold and other life resources with the credit.
4) "Die".
"who gets caught holding the bag? What chairs are left when the music stops?"
Why should we think this will happen anytime soon? The global race to debase has only just got going. Asset inflation has a long way to go yet.
Instead of "monetizing debt", central banks are beginning to "monetize equities". That'll distort and skew real economies terribly.
Other than possibly eliminating their inefficient middlemen, there is nothing new about any of this.
Doesn't seem a bit like Socialism or Communism. Printing money to buy up the productive capacity of a nation? This can only result in more economic freedom.
If I had a printing press and no laws applied to me, I'd buy up everything and take over the planet too.
Which is why my jaw drops when anyone speaks seriously of the Fed unwinding their balance sheet. One does not buy the world (with promises backed by others) in order to sell it back to them. Like a dog with a steak, once they've got a hold of it, they aren't letting go. You'll end up with the same result too. A pile of shit in your yard.
This is the temptation... it's why moral hazard is a staple of every system of government... it's simply too tempting for us to avoid.
My issue is that I cannot fathom how central bank owned stocks (companies/corporations) actually fits into our economic system and the narrative we all attempt to bend to describe it. If the government owns 20% of GM, then does GM have sovereign immunity? 20% sovereign immunity? Is there any plan to sell, ever? How do we vote for corporate governance with our public shares? Do we even get to vote? Do we get access to financial records of the corporation that are not otherwise publicly disclosed? Do employee/officer compensation plans get tossed out the window?
There are so many aspects of our society that are basically turned on their heads... and our society (every society) is completely dynamic and too complicated to be completely comprehended... We know that all ramifications were not contemplated before the decisions were made... I've still just never been able to understand how government ownership (including FED ownership given they're joined at the hip) of businesses fits into our notion of what our economy should be... and, frankly, how we do not change our description of the economy to accommodate these structural changes. There are a lot of things that... are now completely inconsistent because of this.
What's the point anymore? Money is essentially worthless. When CBs guarantee about every asset class, the perception is that all of them are worthless. CBs can buy an unlimited supply of bonds and stocks and paper gold but once they start printing endlessly to buy up the supply of physical gold and silver, the gig is up.
The Soviet central planners guaranteed everything and we know what happened next. I don't believe that all CBs are equally stupid.
This story could be THE story to get the suckers back in and it would be the TOP in the market.
Who are you going to sue when the market collapses because the CBs didn't buy everything after all?
Wait until the insiders get told its time to go physical (land, oil, gold, etc).
"Money" will be worth forty-five virgins.
excellent fucking point.
Front run us.
whoops just kidding.
According to Industrial Alliance Securities:
http://www.scribd.com/doc/137944549/As-World-Growth-Dims-Quantitative-Easing-Shines-Industrial-Alliance-Securities
Gold May Find Support from an Old Friend:
“Not so fast with that QE end game”!
As World Growth Dims Quantitative Easing Shines Key Fed Indicator Signals QE May Gain Shelf Life - Lending Some Luster to the Besieged Gold Bull Case?
EVENT
As 2013 unfolded, most investors were confident that the U.S. had sufficient forward economic momentum (“escape velocity”) to cyclically recover from sub-par economic growth. And that after record low interest rates and monetary stimulus. Despite the rally in the DOW & S&P 500 indices, the U.S. and other economic expansions have recently been called into question. Most recently, leading economies China and Germany posted sub-consensus, the latter contracting, PMI. Amidst European recessions, the President of the E.U., Jose Barroso, this week said: "…austerity…has reached its limit."
The worldwide sub-par economic, and related inflationary pressure slowdown, has caused the 5-yr US Treasury Bond to whither to 0.70%. What remains is why we pose the situation – for the last few years the “stimulus of last resort” has been QE (“TWIST”, or some variant thereof).
DETAILS:
Perhaps the Q1 U.S. across the board 2% “Payroll Tax” (FICA) increase combined with worldwide slowing is overwhelming the modest economic momentum that the U.S. had? Tired of failed conventional stimulation, Japan recently began an astounding 50%/year money supply growth target.
In the U.S. we note a key Fed indicator recently flashed caution that the Fed may revisit, rather than reduce, its QE program. While the inevitable QE repercussions are unknowable, the Global Financial Crisis (GFC) QE has been good for both gold and financial asset prices. On January 25, 2013 the U.S. Federal Reserve took the historic step of “explicitly targeting a 2% inflation rate”. We point out a common proxy for the Fed’s interpretation of market expectations of future inflation is the “5-year Treasury/TIPs bond breakeven rate”. Since the GFC, yield contractions in this proxy have often been a precursor to Fed action.
CONCLUSION: For gold bulls, all this is Manna for the case against currency debasement.
Did someone say rebuild Detroit???? To rebuild and maintain a city you need people willing to work. We should have a war with Canada and give them Wayne County. They would probably just give it back. Just sayin,,,,,,
Print money and pay them to rebuild the city.
Once it's rebuilt, assemble teams of window breakers. Pay them to break all the windows.
Then pay someone to rebuild the broken windows.
This is sure recipe to economic prosperity. Just ask Krugman.
According to Credit Suisse:
Money Matters: FOMC Preview - Tapering versus Tightening
- The FOMC next meets on April 30-May 1, and we expect no significant policy changes to be announced at that time. Even if the Committee had been entertaining notions at its March 19-20 meeting of slowing its asset purchases anytime soon, the disappointing economic data released since then probably have shelved such plans for several months.
- In our view, an opportunity to scale back the asset buying may not come until later this year perhaps in September. For now, we expect the size of the Fed's monthly purchases to remain at $85bn ($40bn MBS, $45bn Treasuries).
- Looking forward, we maintain that any future decrease in the size of QE3 purchases would not be a monetary policy tightening, although the markets may initially react as though it were.
- Moreover, even if the Fed were to eventually end QE3 sometime in 2014 and start hiking interest rates in 2015 (or later), we believe monetary policy still will remain very accommodative for many years.
- The risk is that even if business cycle conditions were to allow the Fed eventually to firm up its policy stance, subsequent economic performance (or budgetary strains or financial fragilities) would force renewed easing long before the Fed reached an elusive "longer run" neutral funds rate target.
- Monetary Policy Review/Preview
- Beige Book (released on April 17).
- Fed Balance Sheet Update
- The Fed's MBS portfolio surged $55bn to $1.1tr in the week ended April 17.
- Excess reserves total $1.8tr, $159bn above their previous peak in July 2011.
- Money Supply Update
- M1 posted its largest weekly decline since just after the 2001 terrorist attacks.
- A $63bn pop in savings accounts at commercial banks limited M2's decline.
- Bank Balance Sheet Update
- Adjusted for a 2010 accounting change, commercial bank loans outstanding yesterday (April 23) are still some 5% below the Q4 2008 average.
- Cash assets held by domestically chartered banks have jumped by more so far this year than have cash assets at branches of foreign banks in the US.
5-Year US Treasury/TIPS Bond Breakeven Rate - Federal Reserve
http://www.scribd.com/doc/137956352/5-Year-US-Treasury-TIPS-Bond-Breakeven-Rate-Federal-Reserve
Well, I guess there will never ever be another market crash. Buyers of last resort bitchez!
Hmm, now they just have to buy ALL the shares outstanding in their own countries, consolidate them into one giant, state-controlled monopoly called, oh I don't know, let's pick "the Mississippi Company" and the transformation will be complete! If only we had a historical precedent to show us how successful this endeavour would be, all the better.
At least we know that it will be uncompetitive and you can safely invest in other countries with no threat to their success vs the US.
If only we had a historical precedent to show us how successful this endeavour would be, all the better.
You mean, like USSR?
It is funny to see these dumbasses printing up more money than they know what to do with, but keeping it all for themselves. Reject it. Don't trade them anything for paper they print at will. Take their gold.
Hey people, what have I been telling so far?
Could you provide a synopsis?
There is one entity with different offices:
Western Govs with the following offices:
- Treasury
- Central bank
Central Banks have the following offices:
Primary Dealers
The Govs by use of their suboffices are THE ONLY CENTRAL BUYERS IN the securities markets: BONDS, STOCKS, CRUDE OIL ETC.
The only buyer. I've been saying this for 1 year already.
It was the same thing from 2004 til 2008 until the economy experience and OIL SHOCK, hence oil was setup to fall.
Same right now, we are in an oil shock and we will see crude oil collapse very very soon.
ekm you said the CB's could only buy bonds. I asked you about stocks. You said if they could buy stocks that could extend this thing way out. Unless I heard you wrong.
I corrected that about 2 months ago. CBs can basically buy anything they want, even derivatives....if the govs order them so.
On another blog, a very obvious anonymous insider told me that bank of england thought about buying derivatives after the 2000 dot.com crash.
But they MUST BUY, thus creating money. They can't simply create money out of nothing, they have to buy.
edit: It was about 4 - 5 weeks ago It was explained to me that CBs can buy any security.
so as long as company's keep issuing new shares this can go on forever?
No. It's all about the oil shock.
New money tends to go to bid up oil and other commodities, OIL SHOCK, DO NOT FORGET THIS.
People in finance keep forgetting that neither bonds, nor stocks nor dollars, nor even gold are edible or could fuel a car.
I see oil glued to $100 as far as the eye can see. Unless we go to war in which case it explodes upwards. I don't see a collapse unless the derivative bomb goes off.
It's the opposite. Chances are (with the Syria talk today), Obama is pulling a Reagan.
In 1988 Reagan started buying up crude oil and price increased. Nobody could figure out why.
Then Reagan attacked Ghadafi of Lybia (remember him?). Price spiked in the market but next day Reagan released all the oil he had prepurchased with Saudi cooperation.
Oil collapse back to the initial price within 72 hrs.
Follow international events, that's what crude oil is mostly about.
oil is bid on paper
no demand, just paper machinations
how high before the shock?
I am watching oil every 5 minutes here at work. As soon as WTI goes closer to $100 some fantom seller comes in (the gov/primary dealer).
We are in an oil shock already. Obama either attackes syria or iran and be done with it, or his approval ratings will crater more.
can you collapse oil without collapsing the stock market? Also did u see walk's comment above about the CB's tricking everyone to front run stock purchases that don't happen? Interesting
I don't know the answer to that question. However I do know that this stock market level CAN BE JUSTIFIED AT OIL PRICE $20.
Oil just spiked on Syria news, right now. It's coming, I'm telling you, it's coming.
paper bidding is same as gold paper bidding, HIGHLY LEVERAGED and can be imploded at will
But oil is a commodity. Would it not stay near its current value or even higher when paper assets begin to evaporate?
No, destruction of money reduces the price of everything.
That's the 'bad deflation' as opposed to good deflation when stuff is overproduced like computers.
So will the insolvent PDs and their CBs eventually own 60%, 70%, 80% of the equiy of all the Dow/S&P, then suck the life out of whatever is left of corporate America to bail themselves out? Is that the plan? if it is then "We are fucked" is an understaement....
Answer...YES
Who be da band director? Who? They need to quit playin' this funky shit.
Check the record...it was yesterday or day before....I said,"and the answer is....the FED balance sheet'! There, I tooted my own horn!
http://www.bloomberg.com/news/2013-04-25/fed-debate-moves-from-tapering-to-extending-bond-buying.html
Debate among Federal Reserve policy makers is shifting away from the timing of a reduction in bond buying to the need to extend record stimulus as inflation cools and 11.7 million Americans remain jobless.
“We heard a lot of discussion earlier in the year on the timing of tapering,” Ward McCarthy, chief financial economist at Jefferies Group LLC. in New York and a former Richmond Fed economist, said in a Bloomberg Radio interview yesterday. “Some of the more recent developments -- the slowdown in the economy, the somewhat disquieting inflation data -- has taken that off the table for now.”
With the Fed far from meeting its mandates for stable prices and full employment, policy makers next week will probably affirm a pledge to keep buying bonds until the job market improves “significantly,” said Joseph Gagnon, a senior fellow at the Peterson Institute for International Economics in Washington and a former Fed economist.
‘Full Throttle’
“It’s going to be full throttle until the end of this year,” said Gagnon, referring to the purchases that have pushed the Fed’s balance sheet to a record $3.3 trillion. The FOMC plans to meet April 30-May 1.
It all stops when the CBs etc have all the physical gold and silver in their hands, and then the Fiat explodes in one big swooshing sound.
Bulshit debate. Whatever Benny says, it gets done.
Benny takes orders from Obama and Boehner who do somebody's else bid.
They will soon be buying Bitcoins too, I bet.
No need to work or make stuff. The new reality....just print money and drive up the stocks. Who cares what the companies does...sale up, sales down irrelevant...or that joe average is getting completely screwed....Wall Street just keep getting MOAR!
WOW Just like Real Estate...it can go up FOREVER! See you guys, I am buy stocks buying two hands! No conflict in central banks stock picking...and printing currencies.
I remember when I used to post on DailyFinance and CNBC in 2009 that the Fed and other central banks were buying stocks. I asked, "Do think it is retail buying? Do you think any individual investor has the cash to move the market this much in such a short time? Why is everything correlated almost 100%? A tech company, a food supplier, etc all jump te same percentage regardless of the fundamentals. The only answer is one entity buying the lot."
I was called an idiot, a conspiracy nut, a cluless moron. Do you think I'd get an apology from the real nutjobs that believe daytraders are moving the market?
I follow anything you say very closely.
Your posts are must read.
arbitrage between DIA/YM, SPY/ES, and QQQ/NQ
How much of "earnings" is based on stock performance?
bloomberg reports central banks loaded up on gold more than at any time in 50 years in 2012. world gold council reports. so now they're buying stocks eh?
Oxymoron of the Century.. "Free Markets"
So in the end, the FED will own all stocks along with some favored 1%ers, the GOV default on the debt to whoever they can just say "Fuck Off", confiscate all PM's and Pension Funds, reissue gold backed ELECTRONIC currency paying $1 on $500 to depositors, pensioners and the general public. Tin Foil? I hope so.
New Line.....
"Full faith of the Central Banks and backed by printing"
The true paper chase.
Companies should just print more shares and dilute as well. One big print fest.
Well put, Yogi.
Santelli will blow a gasket with this one...
Half cash and half PM / oil in my gambling account. Changed the password and gave it to my wife to hide.
It is a casino, but a very good one. I don't lament the loss of the market because there is no loss; read
Reminiscences of a Stock Operator carefully then tell me earnestly anything has really changed. The fix has been in since Day One.
What's lost or threatened with extinction is the old-fashioned concept of an investment. So, invest in something else as many here and elsewhere have suggested - learn something new, tend your garden, take up or polish up your poker game.
Market direction - wtf knows. What Kentucky windage can fathom. I would say UP generally because that's what politicians and IRA-holding peoples like. Not saying it's right and good. As I said, I locked up my account for a spell to back off from this circus.
not this is any breaking news to any of us, but i think we can safely say fundementals mean absolutely shit in this economy.
how can someone explain all the horrible data from around the globe, basically all at the same time, and yet the market just continues to march towards new highs.
horrible jobs reports, missed pmis around the globe, horrible philly fed, kansas fed, everything is horrible, and this is the result?
how, how fucking how?
it makes me want to puke when i turn the tv on, or read on the web, saying how earnings are huge for this market, ''important'' economic data can be the days market mover, etc.
none of this shit matters anymore, companies can report horrible earnings, maybe the stock will fall for a day or 2 , but guranteed to be above the price when it reported those terrible earnings within a few days.
todays comical headline on cnbc website was '' markets up on jobcless claims numbers''. are they fucking kidding me?
so why is it that when we had the worst job report in years in march, the market barely fell that day, heck i believe it was flat, but now because we had an improvement of jobcless claims, one which still overall was crappy, they want to make it seem like that is moving the market.
why dont they come out and say every day, this market is up for 1 reason and 1 reason only. the FUCKING PIECE OF SHIT FED, WHO CONTINUES TO STEAL FROM MAIN STREET TO BENEFIT THERE PIECE OF SHIT BANKERS ON WALL ST LIKE BLANKFIEN, DIMON,ETC.
nothing fundemental matters anymore. ibm, cat, mmm, fdx, all fucking have terrible outlooks, all pretty big companies for there sector, yet that means shit to this market, the s&p will be at 1600 by either end of today, or most likely tomm. its bs.
i cant remember the last time i woke up in the morning and saw the futures down modestly red. there can be a report that a giant asteroid is aiming for earth and will knock out all power for months possibly, and this market would still be up triple digits.
its sickening, and i want these assholes prosecuted for these fucking crimes again civilization.
When Glass-Steagall was in effect and the IB's were still partnerships, I remember going into work, watch everyone take their wallets out of their pockets and get down to business.
We knew if we lost money it would come out of them and if we were profitable money would flow into them.
It doesn't matter now. The Fed makes sure the wallets are full and the taxpayers eat the losses.
How Joe Public can play this game, I'll never know.
Don't want to be around when everyone is rushing for chairs when 'Ring Around the Rosie' ends.
Feeling bad and talking bad won't get it!
http://www.marketwatch.com/story/lew-us-must-combat-destabilizing-bank-runs-2013-04-25?link=MW_home_latest_news
April 25, 2013, 2:30 p.m. EDT
Lew: U.S. must combat 'destabilizing' bank runsStories You Might Like
By Ronald D. Orol
WASHINGTON (MarketWatch) - A top priority for Washington in the coming year is to take steps to combat the threat of modern-day bank runs and fire sales, Treasury Secretary Jacob Lew said Thursday to a multi-agency panel of regulators charged with identifying threats to the stability of the economy. "We need to strengthen markets that may be susceptible to destabilizing runs and fire sales," he said. Lew made the comments at the beginning of a meeting to vote on releasing the group's third annual report to Congress. He added that a great deal of work remains to be done to attract private capital to the U.S. housing finance system. U.S. regulators must also work with their foreign counterparts to consider transitions towards alternative benchmarks to the Libor overnight interest rate, which is at the center of a massive-industry-wide international investigation into rate rigging, he said. Regulators need to increase their "vigilance" to operational risks, he added.
From a contrarian perspective - Those that follow the herd will end up slogging knee-deep through their shit.
Governments will own everything, communism will win.
Buying of equities by central banks is a sure sign of a top in equity prices if they are as clueless about equity markets as they have been about gold.
If you are about to print a ton of money, you can not go wrong bying stocks. It's all for free anyway. If I printed my own money, I would also buy stocks.
S&P 500 Index to Volatility Index Ratio:
http://stockcharts.com/h-sc/ui?s=$SPX:$VIX&p=D&st=1990-01-01&en=(today)&id=p34880675782&a=17214144
This is why at least for markets that it is different this time. The banksters have zero accountability and have the counterfeiting computers connected into the exchanges. By taking the markets as high as necessary until the economy recovers is an option because the markets cannot fall as long as central banks are jacked in. They have an infinite amount of fiat. This is a way to distribute wealth down into the hands of the smaller businesses as well as the large and even anyone that wishes to participate. The banksters will allow the markets to come down gradually as the fundamentals take hold.
Only problem is is that it doesn't work. Instead corporations use their excess cash to increase their companies stock prices further so that they may cash out their stock options at the higher value. Another problem is that the central banks will end up holding most all of the stock available for trading.
It is another catastrophe in the process of unfolding.
I hope everyone realizes that there is no stopping the Fed. They could buy 5B worth of stock every single day forever - with no end ever. They could become the single biggest shareholder of every company in the SP500. Since there is nothing preventing them from doing so (politicians will not say or do anything, average person has no clue) they can own 50, 60 even 80% of outstanding shares. The price would never go down becuase they buy all the shares from anyone willing to sell and NEVER sell no matter what. SP500 could be 3k, 4k it does not matter. Volume would disappar but prices would continue higher.
This would be a de-facto govt takeover of the entire financial system. Even in communist countries its not this bad - but it will be here. And yet you will have no media outlets screaming how this is a bad policy, no politicians wanting to hold hearings - nothing.
The fact is the Fed can print up whatever money it needs - it can then just bid. There is no reason the market would every dip more than a few percent no matter what happens. GDP could drop 10% this year, earnings cut by 40% and the market would move higher. If you have unlimited funds then you control the price.
This will actually mean less money for companies and consumers inthe long run. It will means less things to buy, eventough money is being created. IT cannot stand for long. If it did, the soveit union would be around. And north Keoria would be a paradise.
http://www.nytimes.com/2013/04/25/business/janet-l-yellen-possible-fed-successor-has-admirers-and-foes.html?pagewanted=all&_r=0
WASHINGTON — In July 1996, the Federal Reserve broke the metronomic routine of its closed-door policy-making meetings to hold an unusual debate. The Fed’s powerful chairman, Alan Greenspan, saw a chance for the first time in decades to drive annual inflation all the way down to zero, achieving the price stability he had long regarded as the central bank’s primary mission.
But Janet L. Yellen, then a relatively new and little-known Fed governor, talked Mr. Greenspan to a standstill that day, arguing that a little inflation was a good thing. She marshaled academic research that showed it would reduce the depth and frequency of recessions, articulating a view that has prevailed at the Fed. And as the Fed’s vice chairwoman since 2010, Ms. Yellen has played a leading role in cementing the central bank’s commitment to keep prices rising about 2 percent each year.
Ms. Yellen is now widely viewed as a logical candidate to succeed the current Fed chairman, Ben S. Bernanke, when his term ends in January 2014. She has worked closely with him in shaping and building support for the Fed’s campaign to stimulate the economy and bring down unemployment.
But some of Ms. Yellen’s critics remain wary. They worry that she would not be sufficiently concerned about the possibility that inflation will accelerate as the economic recovery gains strength. If nominated, she could face opposition from Senate Republicans who have repeatedly expressed concern that the Fed’s campaign would destabilize financial markets and make controlling the pace of inflation more difficult.
“I think people read Janet Yellen’s speeches as saying that she puts a higher weight on joblessness compared to inflation” than the typical member of the Fed’s policy-making committee, said Vincent Reinhart, formerly the head of the Fed’s monetary policy staff and now the chief United States economist at Morgan Stanley. “And that includes Ben Bernanke.”
He added, however, that her nomination would be unlikely to shake financial markets because she already exercises considerable influence, so any shift in policy would most likely be modest.
Nice way of confiscating everything. Print and buy every single valuable item on the globe. Who would have thought this. In communism we trust.