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When Did Bernanke Lose Control?
The initial knee-jerk reaction to QE3 and the extension into unlimited free money forever last September sent mortgage spreads dramatically lower and sparked a super-excited flood of cash into cheap-to-finance REO-to-rent housing markets. This created the faux-prosperity that even Bernanke is banking on in our housing markets now. However, that mortgage spread (the difference between 30Y mortgage rates and 10Y Treasury yields) compression slid wider from its initial move but had stabilized. Until, that is, Bernanke mentioned the 'Taper' word - at which point the mortgage market moved well beyond its pre-QE3 levels and things began to escalate.
While Bernanke has done his best to convince us that the Fed will be here, the mortgage market seems to be a non-believer and even at $85 billion a month (across MBS and Treasuries) he has lost control of the mortgage market. As Bloomberg notes, the tone of Bernanke’s comments were "very assuring and soothing, but that’s like a mother telling her baby that she will be leaving in a very gentle voice," said one mortgage trader, adding "the baby will still have a fit."
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Bernanke lost control of bonds post Cyprus - a new risk premium was added.
Yesterday he punked the markets to try to look like rising rates are part of the plan.
a visual aid of ben losing control...21 seconds
http://www.youtube.com/watch?v=uXHmi6F_O4I
Here is another video of what's happening... a manmade machine pushed beyond its limits by Mother Nature. This is what's about to happen...
http://youtu.be/-YJuFvjtM0s
did he ever have control?
Look at gold! Down $70/oz!!!
Time to call U-Haul and get my rental truck.
I'm waiting for the TV ad that says, " Call in now and get 2 Morgan silver dollahs for just $19.95 + shipping and handling."
When did Ben lose control? You'd have to ask his mother. These psychopaths start early
Push come to shove, I don't think the Central Planners would dare to remove the government teat from the markets they now control. That is, unless Mommy is yanked away by insurmountable childish forces.
There's more signs then ever along side of the road, "We Want your Gold!".... Soon they will be knocking door-to-door asking to buy your yellow metal before central banks scoop it all up.
LOL! Here's an interesting view of what's happened,....an animated yield curve plotted alongside the S&P going back to 1999. It kind of makes you think that if the 10-year being at 2.3% is scary we must be in a world of shit, because by historical standards it's still very very low.
http://stockcharts.com/freecharts/yieldcurve.php
Too early yet, wait at least a month. The metal bonanza has just begun.
I think gold is down because big banks are worried about not getting free money anymore and are calling their paper contracts. The dirty little secret is it will almost always be about to end but he can't ever end it.
History is cyclical. He is just playing his part in this cycle. That is not control. Not in the slightest.
Yes, anytime now there will be a pyramid building boom, a "300" style battle at Thermopylae, the conquistadors will discover the America's, all that oil will get pumped all over again for freshly reinvented cars History repeats itself after all.
Funny. Is there a two drink minumum for your show? lol.
those are just the minor details.
Big battles will be held.
Resources will be fought for.
Extraction of resources will continue - the level they are at or the specific resource (oil) is unimportant.
And in case you hadn't noticed, American soldiers are the new Conquistadors raging holy war upon Muslims.
Depends on your perspective. The final outcome of the system has been predetermined. Our monetary system is based on money being loaned into existence with interest attached. The system does not contain money to cover both principle and interest so more money must be created/loaned into existence to keep the system afloat. At all times aggregate debt/credit must be expanding. Eventually you run out of suckers to take on the debt (the last sucker is the government... which is us... SUCKERS!).
So yes... he's been in control all along... pushing and pulling whatever levers are available to encourage everything to lever up. But no...there is no controlling the final outcome, the timing, or exactly when or how the whole mess implodes. But it will implode... and it's going to be spectacular and horrifying.
I still wonder about the personal psychology behind this. Is Bernanke (and others like him) evil? How does he really perceive his role in all this?
I don't have any answers, but I'm convinced he's a very different animal from me.
I'm not sure a genus would claim him
It's funny you say that. I can't remember who wrote or said this, but somewhere along the line as I read and listened to concepts about psychopaths, someone made the observation that the theories around how our world is run by "greys"... Aliens I guess... there is a collection of people who believe this... this person suggested that the theory is a reasonable manifestation of our reality. Psychopaths lack the empathy required to be considered human, or so his theory went. In a way they are alien life forms.
Successful sociopaths are generally charming. They are aware of immoral schemes and so work constantly at their public presentation, speaking style, and poses in favor of charity and sharing and all that is lovely, while having no remorse whatsoever, no compassion, and a particular ruthlessness for those who might reveal them. They HATE that.
Campare and contrast bernanke with the anti american president Barack Obama. Which one is charming, and which one is studiously not?
The bernanke might really have hoped to unwind all the mess the imploded in 08 with this extending pretending and papering over until and when the economy naturally(there are people who believe this) rebounds again as it did so many times after recessions and crises post WWII.
Barack Obama is a hard core third worldist lefty with a big big chip on is shoulder toward the west in general and America in particular. He wishes to bring it down, behind the charm offensive.
They Live Bitchez
He is no doubt an exceptionally intelligent person. I wonder the same thing Rex.
Regarding politicians, I have met enough aspiring folks of this nature. Poli Sci types and such. The ones I have bumped into all fit the same mold... massive egotists with delusions of grandeur. Not hard to imagine that on a grand scale (e.g. Washington) that the predominant attitude is that of a God complex, which suggest that we are utterly fucked - as evidenced by the lack of real leadership.
Bernanke, like the TOTUS, is an educated fool.
Well, in my overly simplistic view of the world, which I happen to think is more or less correct, Bernanke is a sociopath. As a sociopath, he doesn't perceive himself as "evil"... and yes... he is a very different animal from you and me (and the other 96-97% of us non-sociopaths). Pick up the book Psychopath Test. It's an entertaining quick read. I think when people get their arms around the concept that the world is basically run by psychopaths, it makes things that would otherwise seem far-fetched make perfect sense. And if you look at the characteristics of a psychopath, of course it makes sense that they have a clear path to the top of most institutions (gov't, military, corporate world, academia, etc).
The last scene in Margin Call does a good job of capturing how sociopaths walk among us, carefully camouflaged. https://www.youtube.com/watch?v=L5gZrgGXOco It's a great scene on a few levels... when we non-sociopaths work in systems designed by sociopaths, what happens to us? You did it right... you got out. I applaud you. "The Kid" is about to get sucked in... he won't even know he's selling his soul. Kevin Spacy always knew it... but pretended not to... now he knows he's a whore... he verbalized it, "I need the money".
perhaps an analogy fits, that humans envision animals and plants as theirs to "use" and profit from.
perhaps those who inhabit the lofty global seats of power-over simply envision the 99.9% of "us" as objects to use and profit from. . .
which of course, fits the "sociopath" & "psychopath" labels well.
it's all about control, and "profit" fits under that category, a bit further down the listing.
Meaning no disrespect, but it is called "sociopathy." Look it up.
Also give Ch. 10, "Why the Worst Get on Top," of Hayek's book, "Road to Serfdom," a read. Very enlightening.
To me the most interesting thing about these people (monsters) is that they could be good business people, as they tend to be "dedicated" and "work" hard. However, all that "dedication" and "work" is focused on living off of other people and destroying everything around them. They are born that way--without compassion, empathy or even a soul.
They only crave power and more power over others. Power is their means to their fulfillment in life. It enables them to steal their sustenance and to fill their empty souls with the misery and oppression of others.
Look at any of them, but especially Pelosi, Gen. Hayden, Gen. Alexander, Cheney, Holder, Bush Jr., Rove, etc.--the lights are on but humanity is not home.
drone nosed spy glass suckers
He makes me feel so special
Hence the growth mantra. Growth is what keeps ponzi schemes going. No growth and the system collapses.
Yeah, it's just confindence. This is where assholes like Krugman exist though. That money is just debt we owe oursevels. Therefore, it is relative on a stock-flow basis. Of course, in a vacuum this is a reasonable statement. Steve Keen has even modeled it (in simplicity). In reality, the world simply does not work that way though. Rather, like all of history before us, wealth and power concentrate. Boom becomes bust. Is human nature. And BB has no control over that. He is just playing his role in this current supercycle.
Even Einstien warned of exponential mathematics. And here we are.
Bacteria in a petri dish.
Scary. The world has really gone from robust to fragile. Would not take much to send us into a shitstorm of epic proportions. If I believed we actually had any sort of leadership (anywhere) that we would maybe be lining up for a more protracted adjustment. Instead, I think we have a regular circus going on with all sorts of clowns running around doing whatever... and the shitstorm is inevitable.
Agreed, but you should have said that our financial system is based on imaginary money and the trust and belief of the people in the validity of said imaginary money.
The mess comes when people begin to realize that a system based on imaginary money in potentially infinite amounts, like we use now, is an eidolon.
Bernanke and the Fed are akin to the South Sea schemer who floated the enterprise "A company for carrying on an undertaking of great advantage, but nobody to know what it is."
kridkrid - "Our monetary system is based on money being loaned into existence with interest attached. The system does not contain money to cover both principle and interest so more money must be created/loaned into existence to keep the system afloat. At all times aggregate debt/credit must be expanding. Eventually you run out of suckers to take on the debt"
Exactly, a system with a built-in fatal flaw. Unless debt is allowed to be wiped out through bankruptcy when it becomes excessive, the exponential curve of accrued debt is never reset to a manageable slope. This reset via bankruptcy is exactly what the Fed has not been allowing over the past 30 years and this is exactly why we are now so very screwed.
A nine-minute video giving the basics on that:
https://www.youtube.com/watch?v=Kwen2OoXLs0
See "Money as Debt" on YouTube for a longer version.
April 2.0 for PM's?
or great buy opp.?
http://zysites.com/silververitas/
I believe Ben is riding this scooter.
https://www.youtube.com/watch?v=OrRziwc2zBw
LIBOR, SHIBOR! See what I did there?
"try to look like rising rates are part of the plan."
Maybe so and is he maybe trying to organize a 'controlled mini collapse' to deflate his bubbles a bit?
OK, interest rate increased a bit not that serious yet, Bernankesan said but how quick will it go further?
We all know that he can't taper without crashing the markets if only hinting at it does what we just witnessed.
To me it's all ver puzzeling also because we can't look inside Bernakesans head to know what he really believes and thinks.
He never really had control. It was the appearance of control to manipulate confidence is a system run amok.
you did not control that...
apering is not happening or the entire world will be a smoking hole in the ground. QE will be expanded you can count on that. http://tinyurl.com/mem7o7x
He didn't. We're closing green today, and that's all that matters.
The world hasn't ended yet so the bottom side of the S&P 50 dma will be tested. All the bulls will be holding their breath when it does. I bet they fail to break through.
The 200 is way down by 1500, just saying.
3 billion POMO soon to kick in. Green cometh.
It seems I was...mistaken. This time was different.
The 10yr is 2.40. It's not running away.
The S&P refuses to touch 1,600.
Sorry, the markets are not ready to blow their brains out, to all of our dismay.
And commodities are fully under control while bubble stocks are just chomping at the bit (as TSLA and AMZN turn green, to choose two). No, Bernanke is still having it his way, sad to say.
it is impossible, literally impossible for the DOW to drop since everybody is leveraged long.
It can only crater and crater it will
Gold and silver already have cratered, and now look at the commercial silver shorts. Lowest since 1997. Gee, you think they know what's coming next?
http://www.gotgoldreport.com/2013/06/special-got-gold-report-large-trader-positioning-in-silver-furtures.html
impossibru!!
The Hopium is strong. When BK wrote about a vortex in the bond market last month I kinda got the idea that we were headed into seesaw territory. No giant sucking sound- more like a chainsaw.
btw do you have a crystal ball?
Vortex in the bond market? Is that something like a disturbance in the Force?
an hour after you wrote that, you were wrong. At this moment you're still wrong, S&P is at 1590. Now what?
SELL SELL SELL
Ben lost control when he was circumcised. It's been hell for all of us since.
circumcision - from Latin circumcidere, meaning "to cut around"
perhaps he should have been more circumspect?
I'll bet he made a quick call to his broker at 1:45 yesterday - "Short everything."
honorary knighthood for next ChairSatan...Sir Cumspecked!!
At Ben's Bris,they threw away the wrong part.
He lost control at ' puzzled'. Never let them know you don't have all the answers.
https://www.youtube.com/watch?v=IV79EIZVuHQ
The commanding officer is a mighty and terrible thing..all powerful..all knowing...
Definite black swan moment. Probably just enough to push the center of mass over the precipice.
FREE MONEEZ for free real estate houses YAYYYY what could possibly go wrong! Good thing America has only a 5 minute attention span or the FED would be fucked!
When he used the word "puzzled".
The people do not like it when the great and powerful Oz is "puzzled."
The entire con depends upon the "illusion " of control.
Perhaps the Fed has looked at the 'assets' in those MBS's they bought.
Did that puzzle them, too?
puzzled - like breaking into a thousand pieces?
Will Silver stay below $20. Will it keep dropping to $ 15.?
Should we buy now or wait a few more days???
Errr....
Buy now. Buy later.
In ten years it won't matter.
It depends on whether you want paper or physical. I'm personally waiting, as these takedowns often span a couple of days, and the manipulators have the argument that the potential ending of QE is responsible for the price declines, which will help mask their activities and give them more breathing room to bang away. So far there aren't any signs of capitulation type volume being turned over.
And the physical market takes some time to reflect the paper market.
Anyway, what is a good investment now, not bonds, not stocks, not currencies..........
I'll sell you Later for your money Now. See you when.
baby is a perfect analogy for our 'markets' and the 'sophisticated' participants therein
How can the US not continue to print? How do they pay their bills?
Doesn't everything collapse the moment they look down? Fly on wings of fiat.
The poor bastard......(spoken with a posh british female accent).
When did the chair of satan lose control?
Rhetorical question here folks, the evil little dwarf fucker never had control, he is TOLD what to do long before you or I have any idea what the poisened short arsed cunt is up to.
We have all been PLAYED, like the preverbial cheap violin they think we are.
Cunts, to the last.
Inthemix I find the word "cunt" disgusting, offensive and generally disturbing. Except when you say it, in which case it's awesome.
Believe it or not Fonz,
I have a Masters in English and abuse it like fuck. Thanks for the vote of confidence mate.
Nothing is more cuntish than bernsplanks, fits beautifully for the mental image I am making of the dwarf bastard.
;-)
http://www.youtube.com/watch?v=EsRoSsauhss
nobody leaves till we finds the koont whut did this!!
He's also obviously using UK "cunt" rather than US "cunt" so it's totally different.
UK "cunt" is much closer to FR "conasse" I do believe.
I think that at some point the market realized none of the money bernanke printed and gave to the banks ever went anywhere but onto deposit at the Fed. So now the banks don't need to bank and the economy has no money. There is just this giant overhang of money sitting there not being used. It is like a staging area for an inflationary attack.
Don't acknowledge the stale smell of that story.
I can see it with my own eyes.
http://research.stlouisfed.org/fredgraph.png?g=jAW
The money "sitting" as the FED is not sitting. This is momentary balence of the whirlwind that supports the rehypothecation strings of shawdow banking. That is where debt is now money akin to matter and anti-matter. Both have mass and annihilate each other when they meet. So the trillions notional in the zero sum game of shadow banking is what must be watched. The tail has become the dog.
What, no pithy commentary on the 'inverse überSURGE' in gold and silver?
I think the initial reaction is overkill. The Fed is not leaving the market anytime soon. Any tapering consistent with deficit financing requirements will revert once the deficit is growing again and as fundamentals remain weak. Even given a taper. the Fed will still be buying likely $60BN per month as opposed to $85BN. And Mark Carney will soon be joining the global liquidity brigade once he takes the chair at the BOE. Fed is caught in a trap. They can't get out. Because they love markets too much, baby! (Sorry Elvis!)
How can anyone here say Bernanke has lost control? Has anyone looked at the price of precious metals? NO...desperate control mesures are in force. Bond yields are giving the impression of failure - But give it two days. Ben will pound the yield back down 25 basis points, stocks will rally and paper gold will continue to be pummeled. Why? Because the last thing Ben wants is money being hidden in any asset that says: FEAR!!!
Yea as much as the wealth effect of equities is nice, govt financing and the RE market are life or death to a central planner. They can't let yields go haywire, and my guess is as long as they have influence this I the last leg they will be standing firm on. If yields spike it will be a world of shit, and I imagine an equity collapse to stampede money into bonds would make sense if it got out of hand. Not as a first choice, but the last choice.
When did he loose control? No all is planned in the fleecying of the world.
he got things so wrong about real estate the last time why would anyone listen to him again ????
Americas 5 minute attention span, just wave a $100 bill in front of their face and they'll forget everything and do anything!
Better make it two $100 bills.
Have you seen the price of ice cream in those shrinking containers?
Ok, what do I have to do for that $100 bill? By the way, what were we talking about?
Just looking for a positive..
Perhaps the Fed gave all mortgagees an opportunity to refinance at much lower spreads and repayments and that window is closing.
Of course, the banks, mortgagors have been denying mortgagees access to refinance. So banks ripping off customers continues apace.
Looks like anyone with half a brain should sue the banks for delays, obfuscations and misinformation relating to any mortgage refinance attempted by the mortgagee during this window of opportunity that is rapidly closing.
bleh.
indeed, responses in 30 days are mandatory to not receive a fine but "losing documents" is untraced therefore removing the legal obligation.
Give it to me baby. http://www.nature.com/news/silver-makes-antibiotics-thousands-of-times-m...
http://www.youtube.com/watch?v=1dNIQVYGXbM
http://i.imgur.com/bImGsR7.jpg
http://www.iamacyborg.com/wp-content/uploads/2011/09/going-in-dry.jpg
:D
i need to change may wallpaper from this http://www.freeimagehosting.net/zcq2d
any idea's ?
I decided to buy now. Locked in at $20.00 with a $3.00 over spot premium. My opinion: If it goes down to $18 or even $15 OZ the premium will raise up to $4.00, $5.00 or $6.00 [if its a quick takedown] so I just pulled the trigger now... Good Luck to all opening another safe deposit box!
"All safe deposit boxes in banks or financial institutions have been sealed... and may only be opened in the presence of an agent of the I.R.S." - President F.D. Roosevelt, 1933
He didn't say where he is holding his boating accessories.
Ben lost control when he made the deal with the devil for personal gain.
Kuroda-san. Take notes!!
...and then let's get to the good stuff:
http://nipponmarketblog.wordpress.com/2013/06/19/the-phoenix-japan-inc-2-0/
Wait whaaaa? Reversion to what is almost a five year trendline is "losing control"???
A bit excitable are we, Tyler?
ZIRP babies never grow up.
Hey guys, how's that gold trade working out for ya???
Lol lol lol lol
BUYING on the dip? Pretty good it seems. More gold less work-hours as fiat to get it.