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A Veteran Trader Slams The Fed: "Savers Are The Patsies For Share Buybacks"
Via Bloomberg's Richard Breslow,
As markets coil around themselves waiting for the next installment of Fed communication strategy it is amazing how with all the speeches and promises of clarity, speculation on what they may or may not say, runs the gamut of possibilities. This fact makes it all the more clear that they should not back off at all from being resolute in signaling a sooner rather than later, very gradual rate path lift-off.
There will always be some "crisis" or excuse to do nothing. But the fact remains that the U.S. economy is not at zero interest rate health.
Monetary policy is broken with the status quo. Unlimited and constant central bank participation in the markets is ultimately destructive, encourages dangerous risk taking (just buy every dip, nothing can go wrong,) and has become too much of an aphrodisiac for policy makers.
Savers are being told you are the patsies for share buybacks.
The Fed also needs to stop mentally infantilizing the rest of the world.
Europe’s ECB has the wherewithal to continue QE and to increase it. Fed policies did not cause the recession in Finland nor the Greece debacle. Japan should not be encouraged to repeat past mistakes by being given the chance to taper too early, relying on other central banks to keep buying. China is in the big leagues now and if their equity markets are wobbling, they should handle it. Each one of these central banks views their currencies as reserve worthy. They need to act that way.
As far as emerging markets go, reserves are strong. The warning to not borrow in USDs has been given over and over. The RBI’s Rajan called it playing Russian roulette. It won’t get easier if markets get further proof that they can call the Fed’s bluff. If yield hunters get a bloody nose it will be because they don’t heed the super gradual message and replace stubbornness and greed with panic. Cries of lack of liquidity should be ignored.
Analysts may be right that the precise timing of the tiny rate rise doesn’t matter. That is because they are looking only at the economy and realize 25 bps is not dispositive. What they are missing is that there are much more important systemic imperatives involved.
The argument that a little late is better than a little early rings very hollow to me.
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Is it any surprise that the 0.1% have more wealth now than the bottom 90% in the land of free and fair markets?
The Richest 0.1 Percent Is About to Control More Wealth Than the Bottom 90 Percenthttp://www.motherjones.com/mojo/2014/11/income-inequality-rise-1-percent
One of the biggest robberies in the history of mankind is happening right now.
Strangely, few seem to notice.
Maybe that’s because the perpetrators are wearing suits and ties instead of ski masks. They use complex economic jargon instead of guns. And the media treat them with respect.
None of this changes the nature of their actions. They’re still taking without consent. The result is no different than if a thief picked your pocket.
Here, though, most victims don’t even realize they’re victims. The most prominent victims are retirees.
Retirees depend on the investment income earned from their life savings to pay the bills. The amount of income generated depends on interest rates.
You see, market forces don’t set interest rates. A politburo of central planners—who call themselves central bankers—set them. The Federal Reserve is the US’s central bank.
Central banks make the absurd claim that they operate independent of politics. In reality, they’ve always existed to please politicians. Their actions usually come at the expense of prudent savers.
http://www.internationalman.com/articles/the-fed-steals-from-retirees-an...
The USSR collapsed after oil prices did. This house of cards is stacked on foreign CB ownership of Treasuries. That's just hilarious. Russia was actually more trade worthy.
Now, look at this chart:
http://www.treasury.gov/ticdata/Publish/mfh.txt
Where are those tiny countries, except Belgium, getting those tens of billions of $?
Savers are not "patsies". Savers are being aggressively attacked by the banks because savers are the only threat to the banks.
Patsies can only fight back by saving more... but not necessarily in banks.
The Government is NOT your mother. The FED is NOT your mother either. If after watching Bernanke circa 2009 you haven't figured this out, you really aren't paying attention. When push comes to shove the fucking bankers would rather set the world on fire to preserve their parasitic lives.
~"Patsies can only fight back by saving more... but not necessarily in banks."~
Say it again!!!!
"Patsies" can only fight back by saving more... but not necessarily in banks.
Can I get an amen?
We need a Christian multi nation army to make war with the money changers!
Don't fret you'sef, Omega, your wahr cometh soon enough.
But, They'd lose their 501c3 non profit status!
Which couldn't happen a moment too soon - and I'm not anti-religious... Bottom line: Nothing is $free from the government. You're gonna pay - either with $$$, your soul - or both, and be compromised in the process...
Unlimited and constant central bank participation in the markets is ultimately destructive, encourages dangerous risk taking (just buy every dip, nothing can go wrong,) and has become too much of an aphrodisiac for policy makers.
No shit? Really? How fucking long has this been going on? Decades!
Why is it that the so called experts act as if they have discovered something new. When a whole bunch of "common folk" have been screaming foul for years and years.
So....blow me!
The only action the FED should take is to raise interest rates TODAY.
Would you like to make a bet on that? I am already going to lose a sandwich to Doc over this. Maybe I could hedge my losses by taking an opposite bet with you?
Obama plan for wealth redistribution.
"But the fact remains that the U.S. economy is not at zero interest rate health."
No, it's not. Near as I can tell we're at about -2.5% interest rate health. Zero would be an improvement.
Exactly, this "veteran" trader is retarded.
We should all couch comments about the relative health or sickness of the US economy purely in interest rate terms from now on.
"2nd Quarter GDP came in at a +0.75% implied interest rate health level today, slightly beating expectation of +0.68%. Wall St was broadly mixed on the news with the Dow finishing up 23 points and the S&P....."
Try it once or twice. You'll pick up the cadence of it real fast. Feels natural after just one or two uses.
Lol..... You're a mess.
This is so true it's scary. The raw numbers don't matter at all. Only thing people care about is how the central banks will react to them. Might as well cut out the middle man and just start report things in central banking terms. Might want to add a probability of QE along with the implied interest rate though.
This trader just doesn't get it. He acts as if the goal here is for each country to take care of their own. Clearly he is wrong. All the central banks are acting in unison and the system is so intertwined that if one of them goes down they all go down. No, each central bank will not take care of their country, they will work to protect themselves as we move closer to a global currency.
The FED is a totally corrupt institution >>
https://biblicisminstitute.wordpress.com/2014/08/24/the-corrupt-federal-...
Did anyone else notice what just happend with AU and AG prices? AG spiked up and AU did nothing. AG then spiked down and AU followed. Looks like AG is under real pressure and AU under tight control.
Looks like AG is under real pressure and AU under tight control.
No disrespect meant, but no shit Sherlock.
Folks, the situation we find ourselves in is far worse than most imagine. We are not simply suffering from academic ineptitude occupying the seats of "power" in the central control authorities. These people are all nothing more than paycheck players, compromised puppets, psychopaths and imbiciles. The real power behind this system lurks in the shadows and they exploit and capitalize upon our natural weaknesses. This topic is worthy of an encyclopedia but suffice it to say at this moment that it is through the acceptance and proliferation of HFT that they have perfected their manipulations. If price discovery were restricted to human intelligence many of the issues currently dominating this this forum would disappear. Aritificial intelligence, and in our case its application to market making, is destroying our capital markets. It is killing free enterprise. And it will ultimately result in complete enslavement of everyone. If we could only eliminate HFT a quantum leap back toward sanity and fairness would be achieved in restoring our markets and then we could focus on other areas. But unless our markets are restored there is no hope. I am absolutely incesned that the CFA Institute is not working day and night to delegitimize HFT as it is rendering their charter meaningless.
Savers?
Activists in Detroit are calling for income based water bills.
Nobody asks why the activists aren’t working instead of protesting so they can pay the frick’in water bills of the dead-beats.
The activist’s first thought is to off-load the charges to the producers.
Same with the sumbags at GM. We saved our money boycotting those dead-beets out of business. Then the bleeding heart Bush approves bailouts for all of them.
He had a bleeding heart for the banksters, that's all(via Hank 'gun to Congress' head' Paulson). The TARP bailout was so important to the oligarchs that they sacrificed John McCains' Prez run for it. Remember back then the American people were over 90% against any baiouts and John M refused to seize the popular stance, thus dooming his run.
Grab what you can. There are no rules, just don't get caught. ;)
A member of the Keating 5 knows who butters his bread, and what keeps him out of prison.
http://en.wikipedia.org/wiki/Keating_Five
Just keep on squeezing. We havent had enough yet.
There are only a few people who rally see the big picture. Most posts like this are just grasping for straws...nice to read but ultimately useless.
Correct. There will always be a reason NOT to raise rates. They will do nothing to upset the "recovery"..
therefore there will never be a rate hike.
Yield chasers are lending money to corporations to buy back their stock, kick in the stock options and cash out.
Hand wringing over a 1/4 pt raise for years now...really?
Rates were 5% in 2007 and the Dow was headed for a record.
If a 1/4 pt kills the market it is hanging by a thread.
No interest and promoting inflation...for 7 yeas now is no different than the Cyprus haricut on savers.
"Hand wringing over a 1/4 pt raise for years now...really?"
It's a stalling tactic. Waiting for the next market crash to justify QE4. Not if, just when.
The good news is that multiple generations have woken up and will never trust a bank or government ever again.
"Just Us" may have won a few battles and murdered many who oppose them, however, no matter what henious crimes and false flags they commit now, they have lost the war.
The Feds true mission was always to swipe the smart money. The record speaks for itself for the last 100 years.
This is where they want the economy to be. They are in harvest mode now. Asset stripping the planet.
Fiat magic. While most are chasing after fiats they are sucking up real assets at record pace. Going barter as much as possible is the best way to protect wealth.
A barter a day is a great plan. Try it. You will find it works for you and the person you trade with and thats all. Trading labor and skills for things of real value cuts out the middlemen and thats a very good thing. For you. That stack of shinny stuff is king of all barter. Treat it as such.
Just my humble opinion.
But wait! I was told, just this past weekend by a relative, that you can't eat gold. I asked how many FRN's he was eating. No answer. They're gonna repeat the MSM mantra until 'Greece' comes here.
How does one contrast a .25% hike with being positive for savers...? 'Positive' doesn't even get off the ground until 6%, and how long does the author think it will take for that to happen? Acutally though, come to think of it, 6% or drastically higher could happen rather quickly given the right geopolitical circumstances with China, so I guess that fantasy shouldn't be ruled out.
For all you gold bugs. Its a barter system you want right? After all gold is barter. Start acting like it. Gold for real things with real value only.
Chew it over a bit. It will catch on.
The whole economy is one big dollar joke. The biggest joke is gold. Those with the ability to buy lots of it (China) know the dirty secret...they CAN'T...THE MARKET IS TOO SMALL (to quote Yi Gang ) This reveals that gold is going down in dollar price as it becomes harder to get.
Follow the big gold holders...they certainly won't sell into falling prices and as less becomes available...watch the fireworks. Gold could be the thing that kills the dollar....even before markets crash in a deflationary spiral.