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Total credit continues to contract, savings going up and yet talking heads are still contemplating whether or not a recession is coming? More like talking asses.
In a sane society, 'credit' contracting and savings going up would be GOOD news....alas, we're far from sane though.
WTF is going on today? Bunds down, Treasuries down, Equities down, commodities down!!! I guess cash up
.308 ammo price holding steady, I just checked.
We'll see how much longer that will hold....
So is the lb. of turkey.
Isnt that the real insane part as we see 'prices' of major commodities swing up and down 2-3% daily, depending on whatever rumor is floating around...insanity.
Bernanke's pants are down.
Yep. The banks need to deleverage their paper investments vs their paper assets. And paper assets needs to deleverage vs gold. The hilarity of watching the gold bull get sniped at by talking heads while it unfolds never fails to entertain. They just want the debt bubble to continue forever with no foundation.
"Savings" at a stable rate are good in general because they end up becoming investments which generally leads to increased productivity and more wealth to go around. A change in the rate of savings can be bad short term unless it's accompanied by appropriate monetary policy otherwise it can lead to inflation/deflation. Essentially savings represents a demand for currency and when demand changes things will be out of whack until they stabilize at the new equilibrium point.
This is just the bullish news the market needed for a pre-turkey green day!
yeah...but saving what? If real earnings are down 1.7% from a year ago....
Can't be good for AAPL or NFLX....
The more that The Bernank pushes on a string (QE, ZIRP4EVER), the more people white knuckle their fiat. Oh, the irony.
It's all the snake eating its own tail.
The Bernank is DESTROYING the desire to consume, as he's freaking the world of savers and the presently liquid out with his absolute abomination of policies, while the non-savers and the majority who have difficulty getting credit have difficulty spending, also (given the banking sectors precarious-dead state of health).
Here is but one of many examples I can cite: Mr. Smith, who is 78 years old, worked hard his whole life and retired with enough savings that would have, in an ordinary interest rate environment, have produced an income stream from interest on his savings, that would have prompted him to spend far more freely (he may even have already have replaced his 2001 Mercury Grand Marquis by now if not for the fact he is anxious due to his meager/non-existent interest ZIRP income).
So, Mr. Smith buys no new car, hires no one to put a sunroom on his (now radically depreciated home), and gets all of his grandchildren a lump of coal for Christmas this year.
All thanks to The Bernank.
I for one am GLAD Bernank and the other Keynesian lunatics are destroying 'the desire to 'consume'...maybe people will snap out of being such mindless cud-chewing cattle and we could actually save the nation!
Its a remote chance, but possible.
No fucking way.
Give most Amerikkans the choice between the shiniest, newest iThingy or world peace, and I think you know what most people would pick.
No chance. Not possible.
You know its funny, I know a couple 'newest gizmo' freaks at work who have told me they guess their old stuff is fine for now, and theyre not doing anything for Christmas except buying 'common sense' things for their kids. Uh oh, JM Keynes spinning in his grave.
They aren't buying the iPhone 4s2.0, dog?
The forthcoming capital controls and supply chain disruptions will take care of the consumption model regardless of the Fed moves. To push on a string and insure the exponential mis-allocation of capital when there are so many very REAL problems with supply chains is beyond dangerous. Well, at least the chaos theory folks will have lots of data to mull over in the nbear future.
But, even worse, is Mr Smith still needs to eat, clothe himself, and heat/cool his home. To do that he must spend some of his capital and that makes his problem a continuing problem that will last long past Bernanke. The damage Bernanke has caused will live long after he is gone. And, all that damage has produced no positive result unless you consider more pay off to the banks a positive result. The Fed, owned by bankers, favors banks. Who could have anticipated that.
+2 (extra 1 due to inflation - I had to go to the grocery store yesterday. WTF price of produce)
At least they got coal for Christmas...will come in handy come February.
"and gets all of his grandchildren a lump of coal for Christmas this year."
Ahhh, such a wonderful man! I think that it is great that he has thought about his grandchildrens future by teaching them to invest in good, solid commodities such as coal!
I agree, and if he has enough grandchildren, they can keep the house warm and cook some soup.
Did 78 year old Mr. Smith vote for the muslim in 2008?
Oh my God! Could it be? My Christmas stocking is stuffed with QE3!
Have yourself a merry Bernank Christmas Let your fizz pile growFrom now onPrecious will be out of sight
Have yourself a merry Precious ChristmasMake the banksters payFrom now onreal GDP growth will be years away
Here we are as in golden dayshappy silver days of yore Faithful friends who are dear to usgather near to us once more
Through the years we grow stronger togetherNon-dilutive fizz know the Fates allowHang a .999 silver star upon the highest bough And have yourself a Precious Merry Bernank Christmas - now
Its just insane, these people are Hopiuming that people go out and load up on cheap Chinese junk on credit?
How long before The Ben Bernank announces ZIRP with no exipiration date...
How long before Congress extends unemployment benefits...
How long before another Keynesian fool claims a natural disaster is good for GDP...
And just think, 3 straight years of all that to the max has gotten us right back here to the basement.
"3 straight years of all that to the max has gotten us right back here to the basement"
You mean you can't "borrow yourself rich" and then spend your way into prosperity? Someone needs to re-write the economic rules here.
If I was in the financial biz I would have already created an AK47 index and ETN around it. This market is ripe for an Eric Sprott of guns, ammo and canned beans.
That was supposed to be in response to the .308 comment...
"response to the .308 comment"
AK-47's don't chamber .308 (7.62X51), they use a medium powered round instead - 7.62X39. And, the bullet diameter is .311 - important to know if you are reloading some (not that much of 7.62X39 is sold brass cased).
I'm going with .223 and 9mil
"I'm going with .223 and 9mil"
Those are both good choices, as they are what you are likely to find in your local National Guard Armory (along with 7.62 NATO).
That's why the futures are off the low. Silly me, I thought this might be bad news. What the hell was I thinking.
That not-seasonally adjusted initial unemployment claims number is quite important, I think. It shows the true weakness that permeates in the labor force.
I suspect we will see more of these 400k-plus numbers as we end 2011 and begin 2012. You've seen the reports of all of the mass layoffs announced over the past few months.
As I mentioned on another thread yesterday, there will be several hundred more job cuts coming from BNYMellon alone between now and the first of the New Year. I likely will be among these "displaced" workers. The depression will finally hit me, after four years.
Yes, "Recovery Winter" is nigh. If you're sick of popcorn, might I suggest Cheez-Its?
There was a man from Winsocket
who liked to trade the eco. docket
he said with a grin as he sold the yen
I'll just keep the dollar in my pocket
Thanks to JPM I will run to sell of my physical gold! Hurry up!
Well hopefully we will be seeing some CNBC folks on the Unemployment line real soon:
This market is levitated on the HOPE of QE3. PERIOD.
When this doens't manifest or by the time it does the market will have taken an epic dump. Guess this is bullish and we should all jump in like the rest of the mindless bulls for the FAUX Santa clause rally.
DOW 11300 and people got a rally pre-priced in? I wouldnt touch any of it with a 100 ft pole even if futures were up 1,000 points this morning.
I wouldn't touch it with Abby Joseph Cohen's penis, but then again, she sees "a lot more upside" than I do.
The portfilio of the hour is gold+silver+cash. The last one is just a put on gold and silver.
bad news, bears!
Bob Dylan - Percy's song - YouTube
Cash is up. TMS2 running at 14.9% annualized. What is a brotha to do in this environment?
Lots of money being printed. Poor business environment. Debt defaults. You need cashier cash.
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