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Did Today's Stock Plunge Give The QEeen Light?
From mid-November last year, S&P 500 futures fell from a high of 1259 to a low of 1136 in around 9 days - 123 points (or 9.7%). This was enough, it seemed, for the Central Banks of the world to get on the phone and press the big green 'print' button in a coordinated response to markets waking up to the dismal reality hidden under the covers. From May 1st highs at 1412 to today's 1300.5 lows is a 112point drop in around 13 days (or a drop of around 7.8%). While the most recent move is slower and smaller so far - today's action in stocks (and even more so in Gold) perhaps reflects the reality that QE3 is inevitable (gold) but not until stocks have fallen enough to warrant 'extraordinary actions' by the Fed. Do we have another 2-3% drop before the Fed picks up the phone?
and as we noted earlier, perhaps it is worth considering how the 'USD-fiat-based unit of account that the S&P 500 is priced in' is now dramatically different from the 'non-fiat-currency unit of 'risk' that credit is priced in'. Critically, credit markets remain a far more effective indication of the business cycle or credit demand/supply to put it another way, than the USD-devalued unreality of US equities...
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Crimedog,
Your question is fair and reasonable. Here is my personal perspective: the USD has lost more than 98% of its purchasing power since the Fed was formed in 1913. Gold has retained its purchasing power against all paper money. You could buy a decent toga in ancient times for the same gold price as you could now buy a tailored suit or dress, but such things would cost much more in debased paper money.
Once upon a time, physical gold was the 10% foundation to an investment pyramid, according to earlier, and I would say wiser, 20th century investment advice pre- 1971.
That 10% foundation can save you when the rest of the investment pyramid crumbles. This is the proven wisdom of time, not the machinations of here today and gone tomorrow politicians and the folly of modern central banks.
"Simple" being the operative.
He needs people to be desparate for QE first, otherwise he will be targeted by the GOP for fixing the election. I don't know what pain threshold that is on the S&P, but it's clearly well below where we are at.
Meantime, he's limited to injecting liquidity through more covert means, like thw swap lines. And of course using dovish tones and leaks to the media.
The last 3 periods before QE was implemented and made a difference lasted about 1 month below the 100 Moving Average. It has been about 6 trading days so far.
Annular solar ecplipse on Sunday from China to US. Allignment with Pleiades. Mayas new this date. Nostradamos said it will be the end of the world.
All the Bernank's QEing won't put Humpty together again
Can anyone name even one market participant that would be surprised by a QE announcement at this current time? Nope didn't think so.
QE doesn't do jack shit. I know it. Shalom knows it. The only way he gets "something" out of it is if he surprises the market with it.
There is no Cocainated Easing until after elections in Nov.
Nobody wants American Spring prior to elections.
ekm
Central banks don't care whether Obama or Romney 'win'. They just need someone to schmooze the masses. The JP Morgue loss plus mounting rebellion in Europe is probably enough to force the central banksters' hands...and they will use it as a warning to any incoming President, ie do as we say or suffer the fate of ruined European politicians.
Modern politicians are the showmen and theatre; bought and sold according to their usefulness to the Trilateral Commission agenda, the New World Order. This is fact, not conspiracy theory. The Trilateral Commission has published its aims, fair and square.
Pity its sympathisers own most mainstream media, so the Trilateral Commission agenda is unknown, even among most politicians...until they become usefully powerful.
Have not heard much of Jim Rickards lately.
For sure QE3 is on its way; but what if the bernanke grew a brain overnight and instead of using the proceeds to p/u more ponzi treasuries, he decides to buy several tons of gold and silver...we, here @ ZH all know that the price is right....replenish Fort Knox, settle JPM's silver deficit, back the fiat dollar with hard currency....oh oh, of course not: 'cause then it would need to change its name to the Federal Preserve!
Sorry guys, just an 'out of the box' thinking...been too long w/o my facebook acct.
I posted this on a thread about the latest Moody's cuts of four Spanish banks. I'm going to re-post it here to reach a bigger audience:
In related moves, Moody's also cut the 4-H Club, 141 Native American tribal councils, every country on the Pacific Rim, every country not on the Pacific Rim, pandas, and broccoli, which it doesn't like.
Can everyone who actually has a brain simply compare what the three major Ratings Agencies DID NOT DO in 2007-2008 and what they HAVE DONE in 2011-2012?
Doesn't it resemble one great big metronome - or scythe - going out to the ultimate limit on one side of the arc, then out to the ultimate limit on the other?
And doesn't it show in very stark fashion how crazy this world - or perhaps just its Self-Anointed Ones - have become?
Buzz Bernanke...QE to infinity and beyond. There is no alternative for the latest failed fiat experiment; it's only a question of when and by which name it calls itself...all for the profit of the biggest banks and Big Brother government; all a violation of the U.S. Constitution and Declaration of Independence.
Earlier, someone mentioned that the Chinese were given right to buy U.S. banks this week, and this may be the latest intrigue.
Personally, I admire Chinese civilisation and most of the Chinese people I have met are very likeable. But this is not about the ordinary Chinese person or the ordinary American person.
This is about the globalist central bank cartel and Big Brother government doing deals to profit and protect their interests whilst throwing ordinary people on the scrap heap of low wage jobs or unemployment...and stealing from ordinary mere millionaires who pose a problem by their questions and actions, defying the corporatists, the oligarchs, the New Feudalists, the New Fascists, and their billionaire crony capitalist fixers, and their overpaid career politician lap dogs.
IE The Trilateral Commission, led by the oldest banking families Rothschild, Rockefeller et al, are luring the powerbrokers in the rest of the world into their fiat ponzi scheme dystopia, their plot for a new world order, led by central banks employing technocratic governments and tame 'intelligentsia' to ruthlessly exploit the majority.
That is the globalist agenda.
Power and profit for them and their political pets, the 0.01%; poverty for the majority.
some of Kudlow's guests tonight were talking about how the fed might have to do another round o QE if the ECB cannot provide enough liquidity
ej,
The Fed's dollar swaps gave a version of QE to the ECB which is stone cold broke unless it can force Germany into euro bonds.
It is also unconstitutional for the U.S. Fed to bail out foreign banks with U.S. taxpayer backed measures.
This week, the G8 meet at Camp David, followed by a NATO summit in Chicago this weekend+Monday. All the world's leading central banks and government heads convene...conveniently whilst Europe burns, and they can agree how to manage the crash for their benefit whilst the ordinary person and trader is robbed blind in broad daylight.
oh for f*cks sake...
Reuters-Poll shows Greece electing pro-bailout government
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One poll isn't conclusive with a month to go before the election
However, it suggests caution on big EUR/USD shorts into weekend
No one wants to get caught short with a relief rally
Bernake was talking about this yesterday. I'm wouldn't be surprised to see some action over the weekend.
When Cosimo de' Medici was disgraced and forced to leave Florence he knew they would need his money before long. Taking the lesson of his father he waited to be summoned.
When the opportunity was there for the taking, and people wanted him to return, no. He waited to be summoned - that changes everything.
the Chairsatan will wait to be summoned.
Ciao
peAce
Old money trumps parvenus every time. Personally, I would rather live and die with the Republic, regardless of its faults. Anglo-Irish writer Oscar Wilde said that a cynic knows the price of everything, and the value of nothing.
QE to infinity - that is the way of the statist money grubbing New Feudalists, New Fascists, and their pretty political pets.
How about a failed Facebook IPO Friday as the catalyst to a flash crash and subsequent Fed weekend circle jerk into QE3?
Fraudbook will make money for its makers, and retail will get ripped off as per usual.
Print or die, bitchez.....print or die.....the only thing you don't know is "when", not the "if".