Biderman On Europe And The Rally: "It's All Bullshit"

Tyler Durden's picture




 

The sensible Sausalitan is back and this time he is taking on the "baffle 'em with bullshit" conclusion of last week's "non-game-changer" EU Summit. After some self-congratulatory chatter on his timely call for markets to ebb from April, Charles Biderman (CEO of TrimTabs) chokes back the spittal as he reflects on what came out of the mouths of European leaders last week: "I cannot see anything new from last week's summit" as he summarizes the findings clearly "The ECB possibly will print more money and save some Spanish and Italian banks". We can't help but agree with Charles when he adds: "Where have I heard that before? Printing Money To Save Banks - wow, how original?". Biderman still believes the Fed will engage in more money-printing but the stock market's current rally is temporary and will falter once again until Bernanke pre-announces his next print-fest. "Money-printing is the only solution left for Central Banks and in reality without fundamental changes in the way Europe and the US is run, the best money-printing can do is keep the dieing alive a bit longer"


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Tue, 07/03/2012 - 11:27 | 2583962 world_debt_slave
world_debt_slave's picture

Tell us something we already don't know.

Tue, 07/03/2012 - 11:30 | 2583987 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Biderman went long the FB IPO.

Tue, 07/03/2012 - 11:38 | 2584029 Conman
Conman's picture

If you watched the video he says he is up 5% on his facebook trades.

Tue, 07/03/2012 - 11:43 | 2584059 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He is up on FB!  But deflation is coming!  King dollar!  Loud noises!!

Tue, 07/03/2012 - 11:44 | 2584068 Xibalba
Xibalba's picture

Am I the only one selling this fake rally? 

Tue, 07/03/2012 - 11:48 | 2584086 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You are one of a few humans trading.  It's just you and skynet now.

Tue, 07/03/2012 - 12:10 | 2584183 Xibalba
Xibalba's picture

I guess I'm betting that it will become self aware and go Cylon.

Tue, 07/03/2012 - 12:19 | 2584216 Stock Tips Inve...
Stock Tips Investment's picture

An expansionary monetary policy usually does not work by itself. Governments need to do their part (to reduce the deficit, reduce (or eliminate) the regulations and promote growth). If you think that injecting liquidity into the market are solved huge problems that exist, then we should prepare for the worst.

Tue, 07/03/2012 - 19:02 | 2585506 The Monkey
The Monkey's picture

Prepare for the worst AFTER investors have fully purchased any news out of the EU. Even though nothing has changed with respect to Europe's deepening recession, do not underestimate how much further north prices can move before the market turns down again.

Start dollar cost averaging @ 1400, and expect it to ultimately retrace all the way to 1415 -1420. Save dry powder for the unexpected upward stab.

Tue, 07/03/2012 - 11:33 | 2584006 The Monkey
The Monkey's picture

Biderman is right, monetary stimulus doesn't do a lot. But, it can temporarily move prices big time. Be very patient.

Tue, 07/03/2012 - 11:47 | 2584081 Hippocratic Oaf
Hippocratic Oaf's picture

May we have a constitution left when we visit this site again a year from now.

 

Happy July 4th all you bloggin' mother fuckers!!!

Tue, 07/03/2012 - 13:28 | 2584458 TBT or not TBT
TBT or not TBT's picture

We still have a constitution, but it now says Congress can fine an individual for not doing something they want you to force you to do, and call that fine a tax by virtue of the IRS  (the guilty-till-proven innocent branch of the formerly federal government) collecting the fine.   The fine can be big, apparently, and still be a tax and not a punishment.    It can ass-rape the spirit of the commerce clause and the federal structure set up by the founders, and do so in the public square, with full support of law enforcement, the courts, and the looter class.

Tue, 07/03/2012 - 15:12 | 2584883 vast-dom
vast-dom's picture

why would he dabble in fuckbook?

Tue, 07/03/2012 - 19:28 | 2585543 stocktivity
stocktivity's picture

Biderman stole my line!!!!

Tue, 07/03/2012 - 11:27 | 2583966 firstdivision
firstdivision's picture

Why the f is the EUR rallying today?

Tue, 07/03/2012 - 11:40 | 2584044 bdc63
bdc63's picture

there's a rumor that there might be a rumor coming out later today ....

Tue, 07/03/2012 - 11:43 | 2584058 The Monkey
The Monkey's picture

Positioning ahead of the ECB.

Tue, 07/03/2012 - 11:45 | 2584070 ebworthen
ebworthen's picture

Lagarde was on CNBC with Maria "G6" Bartiromo saying that all is fine with Euro and European Banks and that deposits are safe.

*cough*

Tue, 07/03/2012 - 16:22 | 2585103 natty light
natty light's picture

:Kevin Bacon voice:

"Remain calm! All is well!"

Tue, 07/03/2012 - 11:27 | 2583967 VonManstein
VonManstein's picture

fuck Birdman he's proably losing some money on something.

It is all bullshit of course but anything is better than USD or EUR so real assets (including stocks) are inevitably going to go higher

Tue, 07/03/2012 - 16:37 | 2585150 Randall Cabot
Randall Cabot's picture

The last time biderman ranted like this back in December the market rallied for four months!!!

Tue, 07/03/2012 - 11:28 | 2583973 veyron
veyron's picture

How's your FB call biderman?

Tue, 07/03/2012 - 11:29 | 2583976 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's all bullshit!  Buy facebook!  Deflation is coming!  King Dollar!

Tue, 07/03/2012 - 11:33 | 2584003 tocointhephrase
tocointhephrase's picture

Your (so called) King is on the verge of being dethroned and it will be in my lifetime!

Tue, 07/03/2012 - 11:35 | 2584013 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Please allow me to introduce myself....

Buy silver

Tue, 07/03/2012 - 11:40 | 2584021 tocointhephrase
tocointhephrase's picture

EDIT: Nice to make your aquaintance: If I may add, load up the truck while your at it!

Tue, 07/03/2012 - 11:42 | 2584056 ebworthen
Tue, 07/03/2012 - 11:51 | 2584103 tocointhephrase
tocointhephrase's picture

Dont be a mug, BUY SILVER!

Tue, 07/03/2012 - 12:18 | 2584215 FEDbuster
FEDbuster's picture

Buy a couple years worth of food first.  Food is always in short supply during economic collapses (read your history).  Silver and gold are nice, but what you need first is rice.

Tue, 07/03/2012 - 12:45 | 2584311 francis_sawyer
francis_sawyer's picture

buy booze next... (or learn how to grow potatoes & build a fire)...

Tue, 07/03/2012 - 12:54 | 2584332 FEDbuster
FEDbuster's picture

Learn how to grow potatoes and make your own booze?   Don't forget a good supply of "special seeds" for appetite enhancement (long term storage food can get boring to eat).

Tue, 07/03/2012 - 13:30 | 2584471 TBT or not TBT
TBT or not TBT's picture

That 5hr energy stuff will carry us all through.

Tue, 07/03/2012 - 12:42 | 2584041 peekcrackers
peekcrackers's picture

Plus 1 Mr Lennon .

Tue, 07/03/2012 - 11:29 | 2583977 Fidel Sarcastro
Fidel Sarcastro's picture

It's bullshit alright, but what do u expect with CENTRAL PLANNING from Comrades Bernanke & Co?

Tue, 07/03/2012 - 11:30 | 2583983 blueskies123
blueskies123's picture

A big thanks as always to a voice of truth. Only wish I had heard of Mr. Biderman and his excellent video outlook years ago but of course financial media such as CNBC, Yahoo Finance and MarketWatch routinely ignore his advice.  Happy 4th to all despite all the horrible acts of torture, deceit, broken promises that the US gov continues to engage in.

Tue, 07/03/2012 - 11:43 | 2583991 midgetrannyporn
midgetrannyporn's picture

He likes the 5 horse in the 5th race. lulz

Tue, 07/03/2012 - 11:31 | 2583995 Peter Pan
Peter Pan's picture

Everyone talks about central banks printing money, but in actual fact they are printing debt.

There is something awfully sick in a system when banks cannot save themselves despite having at their disposal the use of fractional reserve banking, questionable valuations and low interest money from government.

 

Tue, 07/03/2012 - 11:34 | 2584009 tocointhephrase
tocointhephrase's picture

+1

Tue, 07/03/2012 - 11:50 | 2584093 Dr. No
Dr. No's picture

Im not sure I follow.  The CBs do print money.  That is their killer app.  For whatever reason, they choose to buy debt of their friends because their friends have nothing else to sell.  But be clear, they print money. 

BTW, the FED is tightening.  If you dont believe me, just look at the adjusted monetary base published by the FED.  In the end they will print, but the current tightening does not bode well for equities.

Tue, 07/03/2012 - 12:02 | 2584123 Peter Pan
Peter Pan's picture

The money they print enters the system as debt and debt requires interest payments which in effect add to the debt. Hence in reality they are printing debt and not just debt but debt that continues to grow until it consumes all productive efforts and output.

The monetary base is in fact growing but the debt is growing at a faster pace due to interest. Furthermore many of the "assets" bought with this monetary base turn to crap either because they are holidays, granite bench tops or bad investments. The debt however remains.

This is the crossroads we find ourselves at. This debt must largely be written off in order to recognise that there is no longer a corresponding asset or at least an ability to service the debt without stifling economic activity.

Tue, 07/03/2012 - 12:44 | 2584308 Dr. No
Dr. No's picture

They purchase debt only because that is what their pals are selling.  However, (as Helicopter Ben stated do well), there is nothing preventing them from opening the window and tossing out money to the people on the streets.

With interest on mony at 1.6 for the 10 year, it doesnt take much ROI to make payments.

Tue, 07/03/2012 - 16:09 | 2585056 TWSceptic
TWSceptic's picture

The reality is, these banks should not exist today. Like any bad company, they should have been declared bankrupt. Unfortunately some idiot in the white house thought otherwise.

Tue, 07/03/2012 - 11:32 | 2583997 kindape
kindape's picture

"Its all bullshit"....translation =someone who has lost alot of money being wrong on short side...

Tue, 07/03/2012 - 12:11 | 2584188 gjp
gjp's picture

Maybe so, but it doesn't make it any less bullshit.  Congrats to all 'savvy' longs playing along side the kleptocrat money destroyers.  You're part of a long history of just going with the flow in tyrannical regimes.

Tue, 07/03/2012 - 11:33 | 2584004 Cdad
Cdad's picture

All one needs to do to confirm "it's all bullshit" is to watch just how desperate and sloppy buyers are today...especially in individual energy equities.  Just pathetic...the worst of the worst panic buying.

Indeed, it is all bullshit.  And based on volume during this latest miracle rally...everyone seems to understand that it is "bullshit" except all the boy wonders on Wall Street...who still think they are simply trading towards a new bonus pool in a bull market, talking about how "historically cheap" stocks are, and pimping their "channel checks" and their "forward projections."  This...this as we have now confirmed via Bod Diamond that the entire banking system, including the central banks, are a complete fraud.  Good grief.

More banker pink slips, please.

Tue, 07/03/2012 - 12:12 | 2584198 gjp
gjp's picture

More banker fitted nooses please.

Tue, 07/03/2012 - 12:20 | 2584220 centerline
centerline's picture

The big goal seems to be apathy.  Enough continuous information/disinformation, turmoil and emotion... pretty soon everyone is numb and reactions to real events are muted or confused.

Tue, 07/03/2012 - 12:29 | 2584251 Shizzmoney
Shizzmoney's picture

Well, here's the thing.  The suckers are still at the table betting away, it's just the sharks with staying power (and intelligence) that are backing out. 

So the only players left in the game are the Big Whales (Pensions, Buffett types) and the Big Sharks (Banks, Goldman types); but in order for any game to survive, you need new blood.  But that's hard as a) the market is obviously rigged to the intelligent person and b) even ifthe intelligent person wanted to get into the market, the majority of us don't have any capital, or don't have access to unlimited credit to capital (unlike the Big Banks who can just Call-n-CRTL-P to the Fed for easy cash).

What happens when the suckers FINALLY go bust (Baby Boomers and pensions, mostly)?  The game dies.   

Tue, 07/03/2012 - 11:39 | 2584034 BigMike
BigMike's picture

I'd love to see all the Biderman haters on this thread record a youtube video 4-5 times a week with their market views -- probably end up worse than Cramer. Bitches

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