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Cows Versus Bulls
In yet another example of central planners not comprehending the unintended consequences of their actions, Glenn Stevens - head of the Reserve Bank of Australia - commented last night on the curious lack of animal spirits holding back the global economic recovery. As Bloomberg's Richard Breslow notes though, of course, his argument is disingenuous at best since it is the actions (and consequences) of central banks crowding out other market participants and creating a culture of investors who moo (herd-like along with their yield-chasing, buyback purchasing, capex cutting peers) rather than roar... Central banks have turned investors from bulls to cows...
Glenn Stevens speech last night wasn’t the important monetary policy marker that it had been flagged to be, yet it was still telling in a "thou doth protest too much" fashion, Bloomberg’s Richard Breslow writes.
Stevens commented on what he thinks is a curious lack of animal spirits holding back global economic recovery. He focused on the limits to monetary policy and why the world needs entrepreneurial spirit to take hold.
Of course, Breslow blasts, his argument is disingenuous at best, especially when saying there are limits to monetary policy when rates are at/near zero.
Central Banks remain cautious of the fragile global economy; the monetary policy transmission mechanism isn’t working; and the multiplier is near zero while at the same time there is neither capacity nor will for fiscal action.
The absence of animal spirits isn’t surprising - it is a direct result of activist central bankers and sovereign wealth funds crowding out other market participants and creating a culture of investors who moo rather than roar
He also mentioned how eerily calm markets are in face of all the geo-political uncertainty, but it’s really just the same side of the coin, markets are relying on activist central banks who are in control:
Trouble/Turmoil... Ease... QE... Rinse and Repeat
* * *
And ever it shall be.. .and ever more cow-like investors will become (zombie cows perhaps).
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ready the blade w/intrepitude.
Steak Bernanke without the Yellen reduction sauce please.
for those of you without animal husbandry / animal scientist experience, let me explain, bulls (central bankers and sovereign's) screw cows (retail investors)
Thank God for central planning. This would be a disaster without it. Staving off the inevitable collapse was pretty cool, but now we're hitting new all-time-highs in the market almost daily. Doesn't get any better than this.
I haven't written Ben Bernanke a thank-you note in a while. I think I'll send him another one tomorrow. I'll CC Janet Yellen, too.
That's a good reminder, thanks. It's been a while since I've sent them a note thanking them for saving the world and guaranteeing permanently rising markets.
Bernanke put all prior Fed chairs to shame.
Not moo or roar
Bleat
http://www.youtube.com/watch?v=QcE5aDTszrY
Look, here's all you need to know: As long as the Fed pumps money into the market, stocks will go up. This is why DOW *will* hit 20k, before the collapse. All you have to do is buy, nothing else.
Why in the fuck would anybody risk capital on a new idea that may or may not provide a lucrative return when the fed is practically guaranteeing a double digit return for doing nothing but BTFD?
And WTF is anyone paying to have their money managed? Basically a government fucking guarantee in the markets. Seems crazy to pay for management.
^this.
I guess some saps might think that a fund manager will be able to pull out before he cums.
What ever happened to the Silver Bears with their cute lil' vids.
Hibernation till the sky falls?
Now that silver shit the bed, their hiding their faces in shame. Bitchez.
Not much of a metaphor there with the Bull and the Cow. I'm in the Yearling's pasture now with Holstein hefiers. You ought to see those girls run and kick-up.
The usdx is gaining, and high yielding short term (2 year) bonds are being sold.
I think traders are starting to unwind the carry. The strong usd, should imply much higher levels in usd/jpy.
It looks like(asian) traders are covering their short yen trades, which offsets usd strength. (essentially buying yen to square up)
I'm not calling tops here. Just keep your eyes open or a giant "Tick" might jump on ya... ;-)
Here's the usdx 5 hour chart. http://i.imgur.com/gb8K1ah.png
Listened to a JP Morgan Economist (aka clueless Jamie friend) talk about how rates are set to go up any time soon using the word "obviously" ....
When this SHTF rates on use treasuries could fall to negative in the panic to "safety" - and once again Kyle Bass will make a killing.
Yes - Bass will and watch the Trillions in derivatives explode as mention here on ZH. I was also in meeting all day with a large bank and true to form they did not discuss any potential risks in the market - it was described as 5-6th inning of the game for this market.
Nobody seems to even consider the central banks piling into equity markets - not just bonds. I am long ropes and pitchforks.
Once upon a time, the Humans were predators. Now they're parasites. Hopefully the Spacebrothers will come and purify the planet. Amen.
We would be defenseless against any species that could reach the edge of the spiral arm where we are located. Think about what is involved to travel that distance... Technologies we have only fantasized about in Star Trek.
What will we do? Shoot at them with crude nukes and projectile weapons? Heh heh heh...
The world is one large communist cesspool where we get the benefits but nobody wants to pay the bills.
meh....the 0.1% get the mine-we get the shaft
WTF
hang in there , everybody , just for the hell of it ...
This article was the equivalent of a decent comment. But from there, an article? Not much meat here. Just stating a rather limited and already-known idea?
Dup.
Sheeple!