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"By Printing Money," Marc Faber Warns "The Fed Has Delayed The Inevitable 'Cleaning' Process"
With credit markets beginning to creak, market internals flailing, and numerous sectors and individual stocks in a state of correction or bear market, it appears Marc Faber's calls for a big correction in stocks is more right than wrong but the algo-driven exuberance in indices maintains the illusion a little longer (even as the number of leading stocks drops). However, with redemptions increasing in credit, and costs of funding rising, perhaps Faber's insights in the following interview with a radiant Trish Regan are about to be realized. "By printing money, [The Fed] has delayed the cleaning process," as mal-invested capital (and self-referential buybacks) have sustained (and even encouraged) the worst quality companies. As corporate defaults pick up (and The Fed's free money dries up), perhaps that cleaning process will be allowed into the free-market producing "the big sell-off" Faber sees in the Fall.
Faber warns:
"I think the s&p will close down on the year.
The bull market is more than five years old. By any standard, this is a very old bull market.
It is a weak recovery, a lengthy recovery, and by printing money, they have delayed the cleaning process.
But I believe asset prices are unattractive."
Let's see how 'dirty' everyone gets after this wall of maturing debt is hit...
As Paul Singer previously noted on The Endgame:
[The Fed] has been administering painkillers and artificial respiration instead of telling the President and Congress to take intelligent action to improve economic growth. As we have said over and over: Leadership is wanting; leadership is needed.
If QE loses effectiveness now and the plug is pulled, the economic consequences could be disastrous, because the Fed didn’t force the President and Congress to adopt progrowth policies when it had the chance. At the same time, if the current course is maintained, the ultimate results are likely to be much worse.
...
At some stage, central banks inevitably realize, regardless of whether they admit the catastrophic nature of their own failings, that the cessation of money-printing will cause an instant depression. Even though at that point the cessation of money-printing may be the only action capable of saving society, that becomes a secondary consideration compared to the desire to avoid immediate pain and blame. The world’s central banks are in very deep with QE at present, and the risks continue to build with every new purchase of stocks and bonds with newly-printed money.
* * *
And here is Trish Regan...
You're welcome.
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Hey that's the reporter who called it "Bitcon" on purpose!
In Arkansas, we have a term for folks like Faber - "Well bless his heart".
Yous also say "yous" in Arkansas. And you fry catfish whole with the heads. Not knockin' it because everyone I have met from there has been a okay, but it was a bit of a shock when I met a client there and he offered me an entire fish covered in batter.
haha - I've never actually seen that, and i've lived here for 49 years. However, i did see it in Dothan, AL - when the lady served it, I looked at it funny. She said - oh you must be from the North! I said - oh no, i'm as southern as they come - but we cut their heads off first!. Oh, and we say "Y'all", not "yous"
Texarkana. Arkansas side. Like everywhere else, I'm sure it differs by region. But I had a good time (and did not eat the head).
You ain't missin' much there, but MAN have you ever had their mud-bugs? Crawdads boiled with corn and potatoes, with Cajun spices...now *those* heads are worth eatin'. If only I could get down there soon to relish them one last time before I can't pay no mo, because the dollar is SCREWED.
Actually, one can get a decent cut of meat off the head if the fish is big enough. Biggest flat head we ever got was 49 lbs and had a nice cut of meat on his skull!
That said, s/he was dressed out fully and brined before being battered and fried. :-)
Regards,
Cooter
P.S. My wife is collecting fish heads this season. Gonna make soup or broth or something with them. Curious to see how that turns out.
Eye popping goodness.
Yous is from the south side of Chicago.
What are yous guys doin' over der?
He got a custom Continental. He got an El Dorado too. He got a 500 pound bomb in his pocket full of fun. He got a drone in his shoe.
"Yous" is more New York Bronx. Now..."Ya'll" !....Now you're tawkin;.
Do any of you morons realize that "yous" comes from the cockney British? As in "Yous fucks betta get yo asses down to Brighton!!"
The Irish use it too. BTW, how do you think it got to New York in the first place? Your thinking is as though America were the only place on earth, and not one of you has any notion of English etymology.
dont forget the "t" is silent
the Fed is doing God's work... Printing has SAVED All our Ass's! (or maybe just the 1%)
When CNBS has someone like Faber on, it's a token bear kind of thing so they can chuckle afterward about how "wrong" he is. They did this a lot in 1999, remember?
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... http://goo.gl/bhiamE
Boring
She looks none too happy to have to wear that chest-slash dress in a last ditch effort to boost ratings.
Skeet Smart.
So does Trish make you go long? Tell the truth, how about Farber?, maybe all greased up on his scooter?
I suspected you may reply to my post if I made a skeet reference. In hindsight, I should have refrained.
When you said Skeet smart, I couldn't help it cause I know how smart you are. Skeet is slang for male ejaculation in case you didn't know.
Thus your inevitable reply.
No. I could have said something about you eating the catfish head but I didn't. Where's the Lola I used to know?
Trish makes my tongue 6" long!
More exposure for Trish, please, all in the interests of full disclosure. I like to see what I'm buying.
Could you even afford her?? Hell, the two-dolla ho's down here are chargin' $20 now, and they up the price every time Yellen opens her piehole.
In Arkansas, we have a term for folks like Faber - "Well bless his heart".
Winner...winner...Chicken Mc Nugget dinner.can't afford the real stuff!
Trish has a sexy filtrum.
Marc, I told you BTFD the markets are a FED software program now. You ain't been listening to me. Nobody ever listens to Q99X2.
There's that silly "R" word again.
Recovery?
Thanks Captain Obvious.
It is important to understand debt. A great deal of our economic system is about debt. It is important to remember not all debt is created equal. A mirage is a naturally occurring optical phenomenon in which light rays are bent to produce a displaced image of distant objects. Joining the idea of a mirage and contagion with the reality of collapsing debt forms an interesting subject.
It is important to remember all debts and obligations do not come due at the same time. Also, it must be noted when a bill is not paid or defaults it often starts a long and drawn out legal battle, this collection process that may extend years without harsh consequences. This my friends is the reality of modern life in America and much of the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/debt-mirage-always-moving-into-di...
She is so freaking hot.
Id drink her bath water!
Trish the Dish!
Agreed. Trish exudes the scent of sex thru the computer screen. She broadcasts the potential, if you're lucky, for oh-so-sweet, high class, scintillating sex.
If I were Shakespeare I'd write a sonnet in Trish's honor. Oh what the heck, let me try...
Shall I compare Trish to a summer's day?
She art more lovely and more temperate:
Rough winds do shake her darling buds of May,
And summer's dress hath all too short a hemline.
Sometime the hot TV studio lights shine
And show her golden complexion is divine.
Her eternal summer shall not fade,
Nor lose possession of her beauty sublime.
So long as men can breathe, or eyes can see,
So long she lives, and she gives life to me.
Pooper Popper She is so freaking hot. Id drink her bath water! Trish the Dish!
---
tom a taxpayer Agreed. Trish exudes the scent of sex thru the computer screen. She broadcasts the potential, if you're lucky, for oh-so-sweet, high class, scintillating sex.
----
You guys are so easily bought. Yes, I think she'd be fun to fuck, but that is about it. Anchors are generally "paste ups."
Nothing but attractive faces, but nothing much behind it.
Printing money is not the actual problem
The real problem is:
WHO GOT THAT FRESH MONEY?
Choosing winners and losers if Fed's job.
The insolvent oligarch who gets the money wins.
Insolvent oligarchs who do not get the money get wiped out when margin is called.
Printing money is the problem. That s inflation by definition. Rising prices but also malinvestment occur. Obviously we know the Fed and the banks are one and the same but printing is a disaster no matter where it goes because it distorts economic decision making and numbs people from realities and allows pulling forward future consumption now thus eating seed corn so to speak.
FreeMktFisherMN Printing money is the problem. That s inflation by definition. Rising prices but also malinvestment occur. Obviously we know the Fed and the banks are one and the same but printing is a disaster no matter where it goes because it distorts economic decision making and numbs people from realities and allows pulling forward future consumption now thus eating seed corn so to speak.
---
I agree with you. But you need to add debt creation that isn't supported by valued collatoral. In other words, while printing decreased the value of dollars, debt creation makes dollars more of value. That is the dance the FRB is trying to do. But with all the money printed, if the debt and obligations exceed what is printed, then debt wins and wipes out everyone in a deflationary manner.
We see inflationary prices in necessary products such as food and energy (convienently exluded by th cpi). But as much as has been printed, if it were in the broad economy and in the hands of everyday folk like you and me, we would see massive hyperinflation. But we don't. Instead, most of what is printed is in the hands of Wallstreet.
Yep, Mitt said the same thing a coupla' yearz ago.
Got him where?
- Ned
I would like to give Trish the most disapointing 2 minutes of her life.
>> most disapointing 2 minutes of her life.
Greedy devil. I'd be happy fucking her once.
Faber is hilarious, and often right. But..... old bald guys with pony tails that "prefer asian ladies" isn't exactly who should be speaking for us.
But never has the bull been this deep before, either.
Trish Regan,
You look very great -- do you suppose that will get you past this?
http://patrick.net/forum/?p=1223928
OR that just the suits will endure?
Can someone explain the article, I can't stop looking at Trish...something about a bull market In the fall...
I haven't had a television or cable for 4-5 years.
Disappointed to see the CNBC babes are still wearing clothes.
Try the Naked News Network
http://www.nakednews.com/
I live in Thailand. And Marc often rides motos with Xpats here. He rides like he stole his motorcycle
The reason why "leadership is wanting," is that our fearfully idiotic society will not select, or compel the selection of, any leader who does not already have money, a modicum of power, and dependents. Once the "leader" is compromised for his own interests, he simply cannot lead. What we choose to persist in calling "leadership" is therefore merely a parasitic class of self-interested functionaries. That this happens in just about every country on earth and nowhere do people seem able to figure it out in significant numbers, means an endless cycle of disaster and recovery. Put simply, human beings are inadequate to manage what they conceive.
Thats not a very good picture, they didn't show her brains.
The girl's pretty face.
Always told my children:
Look mom.
It's what you have at your side after twenty years of marriage.
That pretty girl will like her mama.
One of them listened to me ...
Kkkkkkkkkkkkkkkkkkkk
The best Interview so far:
http://goldswitzerland.com/people-causing-crises-stand-to-gain-the-most-...
That billions chart of maturing debt means nothing and is irresponsible without context...like what PERCENT of outstanding debt is maturing when. The bond market is huge.
Try Shannon Bream. She'll make you bleed from the eyes and you won't be thinking about Trish.
The Buffet Value Indicator (as shown on dshort's excellent graphs) seem to support Ol' Gloomy's assertions -
http://www.advisorperspectives.com/dshort/updates/Market-Cap-to-GDP.php
Two SD over the mean - but it hovered there for 6 quarters as Doug notes during the DotCom bubble. No idea how long the helicopter will hover this time. Never say "what" *and* "when" - it is clear that the helicopter will take on some damage at some point (or run out of gas) - but no idea *when*.
Trish is hot.
Much of the economic landscape is beginning to look like something out of "Alice And The Looking Glass" A bizarre and unrecognizable land, a land that is distorted and papered over by ream after ream of paper. This paper has been rolling off the printing presses of central banks all across the world in an attempt to mask reality.
Peter Schiff says, printing money is to the economy what taking drugs is to a drug addict. In the short term it makes the economy feel good, but in the long run it is much worse off. What was once the "long run" or "distant future" may be getting much closer. More on this in the article below.
http://brucewilds.blogspot.com/2013/01/what-happens-after-momentum-ends_...
The chart shows much of the world in "involved" in short term debt leaving it vulnerable to interest rate spikes. The implications are mind-boggling. It might soon become apparent the economic efficiency of credit is beginning to collapse and the additional money poured into the system coupled with lower rates can no longer drive the economy forward.
When this happens we are at the end game. At some point the return on loaning money is simply not worth the risk! Why do you want to loan money if most likely you will never be repaid or repaid with something that is totally worthless? When this happens the only safe place to store wealth will be in "tangible assets" and the only lenders will be those who print the money that nobody wants.
The collapse of credit can pose major problems such as what we saw when many sellers were forced to demand payment up front before shipping goods in 2008. More on this subject below.
http://brucewilds.blogspot.com/2014/06/the-economic-efficiency-of-credit...
All these posts about how Trish looks and perhaps we see why we are in such trouble and the decline of America and society. Trish is a dime a dozen, a paste up as most anchors are.
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