Biderman And Bianco Berate Bernanke, Buy Bullion, And Batter Bullishness

Tyler Durden's picture


Critical of the market's reaction to the 'no new QE' news, Biderman and Bianco wholeheartedly believe yesterday's plunge was entirely due to the fact that the 'Bernanke Put' - that we have become so conditioned to expect - did not appear at the levels many expected. Despite a federal deficit of $100 billion per month, it seems the Fed is now in agreement with Biancerman that US growth is limping along at best but notably Jim Bianco believes the fiscal cliff will end up more of a bump in the road as he sees politicians being forced to agree to extend or roll-back (maybe at the very last minute) offsetting the abyss. However, with the debt ceiling looking like it will be hit before the election, it will be interesting to see what political parlance is used if-and-or-when Geithner borrows from the trust funds to keep the government going this time (or not). Positive on Gold longer-term, Bianco sees it like other markets: "Gold is a junky that has not got its money fix" and the only reason to believe Gold is a sell is if you think CBs are done - they are not! Finally the two discuss the fact that 'nobody wants to be bearish anymore' when looking at sentiment surveys - setting up a 'trap-door' for the market.


The discussion of sentiment and the fascinating psychological shift to an aversion to bearishness starts at 4:20:

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Fri, 06/22/2012 - 12:06 | 2551391 slaughterer
slaughterer's picture

Spiderman, Spiderman

Goes wherever a Euro €€€ can ...



Fri, 06/22/2012 - 13:34 | 2551732 DonGenaro
DonGenaro's picture

He's got radioactive blood :-)

Fri, 06/22/2012 - 14:47 | 2551986 AldousHuxley
AldousHuxley's picture

some bernanke bashing is coming from speculators who bet on QE3.

Fri, 06/22/2012 - 12:08 | 2551397 Spastica Rex
Spastica Rex's picture


Fri, 06/22/2012 - 12:26 | 2551457 Death and Gravity
Death and Gravity's picture

I lost my lunch, and it was a damn good lunch. Damn you, Tylers. :((

Fri, 06/22/2012 - 12:08 | 2551398 LoneStarHog
LoneStarHog's picture

Thanks for that Bernanke image...I will NEVER touch another FRN...EVER!

Fri, 06/22/2012 - 12:24 | 2551451 Marginal Call
Marginal Call's picture

Pass the mind bleach

Fri, 06/22/2012 - 14:30 | 2551917 economics9698
economics9698's picture


Fri, 06/22/2012 - 12:15 | 2551419 malikai
malikai's picture

Made me lol hard!

Fri, 06/22/2012 - 12:18 | 2551430 Animal Cracker
Animal Cracker's picture

Made me lol hard!

...not exactly sure how you meant this.

Fri, 06/22/2012 - 12:21 | 2551439 malikai
malikai's picture

If you have to ask, you probably shouldn't. :)

Fri, 06/22/2012 - 12:45 | 2551568 old naughty
old naughty's picture

What, the 8 B's in the title?

It beats triple A's, right?

Fri, 06/22/2012 - 12:22 | 2551445 AL_SWEARENGEN

It should be a spider man towel around his back.

Fri, 06/22/2012 - 12:29 | 2551472 Miss Expectations
Miss Expectations's picture

I'm afraid that when the kids ask, "Where do dollars come from?" that you will have no choice butt to show them this picture.

Fri, 06/22/2012 - 12:55 | 2551611 malikai
malikai's picture

Raise the kids hard, huh? I'm a believer, but you're calling for borderline abuse by any standard.

Fri, 06/22/2012 - 12:10 | 2551400 lolmao500
lolmao500's picture

The Keynesian bullshit... it never stops...

Top Eurozone Leaders Vow Billions For Growth

The leaders of the eurozone's four top economies have agreed the European Union should boost growth by adopting a series of measures worth about 130bn euro.

Italian Prime Minister Mario Monti, German Chancellor Angela Merkel, French President Francois Hollande and Spanish Prime Minister Mariano Rajoy held talks in Rome.

Fri, 06/22/2012 - 12:17 | 2551424 MeanReversion
MeanReversion's picture

Which is what, a 1 year boost of 1% of EU GDP?  And that assumes the full amount gets into the system immediately and none of it is wasted, neither of which will happen.

These people are delusional.  This will do nothing.

Fri, 06/22/2012 - 12:43 | 2551552 Rip van Wrinkle
Rip van Wrinkle's picture

Exactly. Why the f*ck do you think Merkel agreed? But that's all these chumps can do. Do nothing. But give bullshine.

Fri, 06/22/2012 - 12:26 | 2551460 TaxSlave
TaxSlave's picture

Remain calm.  It's only about a Quadrillion in derivatives losses they have to paper over to keep the banks afloat, then everything will return to normal.  It's only numbers.

Fri, 06/22/2012 - 12:11 | 2551406 NotApplicable
NotApplicable's picture

And I was just getting ready to head to lunch... BLEH!

Fri, 06/22/2012 - 12:18 | 2551427 Judge Arrow
Judge Arrow's picture

Ben Stein: The real news is that Goldman Sachs, a huge investment bank, says it’s time to short the S & P. But, wait… a couple of weeks ago they said a strong recovery was in the offing. And their chief investment guru, Abby Joseph Cohen, recently said stocks were the only thing to own. So, what made GS change their minds? The Eurozone crisis is not new. Fragility in the whole western world is not new. The looming slowdown in China is not new. What’s new? Someone at a trading post at GS said they could make a lot of money if the firm issued a pessimistic warning and in the meantime Goldman had gone short in a big way." 

Fri, 06/22/2012 - 12:37 | 2551520 XitSam
XitSam's picture

Ben Stein? This Ben Stein?

Fri, 06/22/2012 - 13:34 | 2551735 Vincent Vega
Vincent Vega's picture

Nice find. It's interesting to watch these old clips and see who knew what they were talking about.

Fri, 06/22/2012 - 12:18 | 2551428 buzzsaw99
buzzsaw99's picture

"Gold is a junky that has not got its money fix" and the only reason to believe Gold is a sell is if you think CBs are done - they are not!

Flawed logic. The money only goes to the bankstas and billionaires. If they decide to buy it will go up. Everyone else is in debt up to their eyeballs.

Fri, 06/22/2012 - 12:32 | 2551490 I think I need ...
I think I need to buy a gun's picture

its the last thing to do in the end game, revalue their gold and watch the people "rebuild" the country for the next 30 years. there is no more algae to be sucked up by the whales, its all been eaten

Fri, 06/22/2012 - 12:59 | 2551630 Quinvarius
Quinvarius's picture

It is dangerous logic.  Gold isn't what needed the money fix.  It is the place money goes when the things that need a money fix don't get a money fix.  Currently, it is the bond bubble that needs a money fix.

Fri, 06/22/2012 - 15:09 | 2552068 Levadiakos
Levadiakos's picture

Sounds like your salt bath dealer is well paid

Fri, 06/22/2012 - 14:16 | 2551851 shuckster
shuckster's picture

Not just that - if you are in debt, you can't get out of it. If you are rich, you can. There are a million legal loopholes out there for getting out of debt, but poor people don't have access to the lawyers they need to get out of debt. My advice: if you have a lot of debt, save up about $5000 and get a good lawyer, don't pay your credit card bills with money, pay the retainer. One phone call from the right guy and that debt is abolished. Immoral? Absolutely not. Slavery is immoral

Fri, 06/22/2012 - 12:19 | 2551431 BandGap
BandGap's picture

Biderman, Biderman

Does whatever a Bider-can

Rants away, he's ignored

Action is his reward

Hey there, there goes the Biderman

Fri, 06/22/2012 - 12:20 | 2551433 Venerability
Venerability's picture

The latest BOO'ing of Silver is a literal disgrace.

And NOT good for those doing the BOO'ing.

Everyone remembers that the last time we had this sort of Kill Silver! propaganda, it was an immediate precursor of the failure of MF Global.

So everyone sees this latest spate of Short-side propaganda and immediately thinks: Is another entity in the JPM Nexus about to go belly up?

The rumors WILL start, DOGs.

Everyone considers the nervous bashing of commodities, commodity currencies, and the Monetary Metals a last-ditch stand, anyway.

The World needs to prevent a deflationary spiral, not promote one.

The forces for Growth will accelerate now, not the opposite. And with them, the commodity complex, commodity currencies, and Monetary Metals will start moving up sharply again.




Fri, 06/22/2012 - 12:21 | 2551438 Poetic injustice
Poetic injustice's picture

Ah, time of Friday pictures I guess :D

Fri, 06/22/2012 - 12:23 | 2551443 Dr. Engali
Dr. Engali's picture

Killing there bears is going to prove to be problematic for Ben later on down the road. He just eliminated  a whole lot of future buyers.

Fri, 06/22/2012 - 12:22 | 2551446 Mugatu
Mugatu's picture

There may be a Bernanke Put, but that also means there is a Bernanke Premium.  In stocks, all premiums must eventually be worked off.  The Bernanke Premium means that stocks are at least 15-20% over-valued.

Fri, 06/22/2012 - 12:29 | 2551455 q99x2
q99x2's picture

Japan went through this for over 20 years. Then they had a massive nuclear disaster and are still going. Here we are at 4 years. That leaves maybe 16 more years to go.

Wonder if I'll be alive when the collapse takes place.

On a side note, the fat man just stood in a puddle of cold water.

Fri, 06/22/2012 - 12:30 | 2551480 eddiebe
eddiebe's picture

Apples and oranges: Yen is not the reserve currency and the Japanese GDP was/is being bled dry to support the US.

Fri, 06/22/2012 - 12:46 | 2551578 Rip van Wrinkle
Rip van Wrinkle's picture

Japan went through this...and the Nikkei fell 80%.


Can you see The Bernank and his successor letting the Dow drop 80% without printing more....and more.....and more....and more?

Fri, 06/22/2012 - 12:28 | 2551464 Abner Doon
Abner Doon's picture

FINRA, SEC, DOL, CFPB, FTC, FRB, and PCAOB Wells Fargo Whistleblower Complaint

Fri, 06/22/2012 - 12:32 | 2551485 El
El's picture

Errr.. never mind.

Fri, 06/22/2012 - 12:35 | 2551513 JackT
JackT's picture

Is Bianco saying he would sell gold after CB's stop their Large scale asset purchases?

Fri, 06/22/2012 - 12:38 | 2551529 FranSix
FranSix's picture

I wonder how gold bullion prices ever became dependant on the Federal Reserve doling out money?  Gold prices advanced for years under intense bearish raids by the bullion banks and still managed to keep a steady yearly advance.  TrimTabs are gold bears and skeptical of the bull market.  

Bernanke announced that they would keep  long term interest rates low, which by now have fallen so far behind inflation, the only place you can put money with a reasonable safety guarantee is into bullion, as it stores value under the circumstances.

Gold prices corrected during London trading hours,  in typical fashion.  This was a central bank price intervention which has more to do with the UK and its problems than bullion banks painting the tape.  A $40 correction into a rising price trend does not a bear market make, or a sign of speculative frenzy.  

If anything bullion banks selling gold leases into the market are becoming a strategy which necessarily needs a taxpayer funded prop(UK) in order to occur at all.  With time, these corrections have become less and less significant.

Fri, 06/22/2012 - 12:44 | 2551563 JackT
JackT's picture

I would assume the dependence occurred as soon as paper metal was created. I also assume that the price of physical is completely dependent And separated from paper by an amount equal to the buyer's sentiment for the future.

Fri, 06/22/2012 - 12:45 | 2551574 Quinvarius
Quinvarius's picture

It is a bell curve.  The same thing that is making people sell gold short term now, will make them load the boat on the other end of the curve.  Nothing is linear.  It is about global money flows.  Selling the USA includes gold and means buying somewhere else, once the check clears.  In this environment, I expect gold to do just fine.

Fri, 06/22/2012 - 12:42 | 2551550 Quinvarius
Quinvarius's picture

Money is flowing out of the USA wholesale that includes gold short term.  Paper gold sold in the USA will be bought in other countries 24 hours later.  They just don't want it here.  And if they buy physical instead of paper at the end, prepare for the tidal wave.

Fri, 06/22/2012 - 13:39 | 2551745 Bansters-in-my-...
Bansters-in-my- feces's picture

Little weasel timmy should stop using the ESF to manipulate gold prices and use it for the good of the country,like paying down debt or something silly like that.

Ps....Fuck you little weasel timmy g.


Fri, 06/22/2012 - 13:40 | 2551747 YesWeKahn
YesWeKahn's picture

I didn't know that Bernak was a bodybuilder. I thought that he has a crippy body.

Fri, 06/22/2012 - 13:41 | 2551752 Bansters-in-my-...
Bansters-in-my- feces's picture

Scotia Bank Visa ad says I am ritcher than I think I am.

They must know I have gold.?

Fri, 06/22/2012 - 15:58 | 2552258 veyron
veyron's picture

Biderman how's your FB call doing?

Fri, 06/22/2012 - 16:15 | 2552333 boiltherich
boiltherich's picture

The photo on the front page Tyler?  B.B. naked wrapped in a flag....


Must wash eyes with bleach. 

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