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Endspiel: Fidelity Says "It Is Clear Now That The Fed Cannot Bail Equity Markets Out Any More"
Uh... did a member of the status quo just tell the truth? Cue panic?
From Dominic Rossi, Global CIO, Equities, Fidelity Worldwide Investment via The Telegraph
At times like these, it can be difficult for investors to know what to do.
We should expect news over the next few weeks to deteriorate further. As we go into the earnings season shortly, there will be more missed forecasts and guidance from companies will be uncertain and gloomy. For investors, valuations will come in to play at some stage. Yields will be well covered because balance sheets are strong.
It is clear now that the Fed cannot bail equity markets out any more and any interest rate cuts by the ECB may not have much of an impact on markets. The solution on the fiscal front will be either Greek default or Germany accepting that it has to fund debt restructuring and so reduce the quantity of debt in Greece. This will be a prototype for other European countries.
At times like these, investors should remember the strong get stronger. We will see M&A pick up in Europe. There is little capital around and so the threat for companies from new competition is disappearing.
Markets will have to consolidate so that oligopolies or duopolies are created and the remaining companies have strong cash flow and don’t have to rely on the debt markets. This is a carbon copy of what happened in emerging markets 15 years ago. Equity will shrink as well-financed companies grow by acquiring others and buy back their own equity. In time, this will stabilise equities.
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silver and gold down dramatically, paulson fund will be down big again this month
GAME OVER!
BlackRock ""fear will be giving over to greed before too long"
Terrence Keeley of BlackRock at the G20 on Bloomberg TV an hour ago discusses how BlackRock is in the middle of every important conversation and how Lagarde will be brought to heel:
http://www.bloomberg.com/video/75984954/
that's the same Blackrock that likes China because its Totalitarian State control 'helps' smooth the path for capitalism (at least Blackrocks shoddy authoritrian non-free market version of capitalism - fascism anyone?)
meanwhile yesterday 1,000's of the Chinese public attacked Govt buildings (great target selection by the public... for once!). The local and State Govts (public emplyees) in cahoots with Blackrock-stylee private companies are trying to steal peoples private land for their own purposes (charming!)
The Shanwei government accused villagers of having “ulterior motives” and of “inciting” villagers to attack the Communist (fascist? ..they're all the same parasites whatever label used) Party HQ and police station by 'spreading rumours about police officers beating a child to death'.
It's not like Govt ever spreads rumours (WMD, 9/11 terrorism caused by Saudis used to invade iraq etc) to incite violence is it?
Maybe Blackrock have lost the fascists plot on the Euro ..and China
Same goes for a lot of ZHer.
I just don't think everybody is as much on physical as their comments make it look like
Why because gold is still up for the year and if anyone, ZHer or not, bought physical gold in the last 52 weeks or more they have gained value?
Why do you visit ZH and learn nothing?
@kalasend
I'm 95% physical, 5% mining stocks. The key is to buy regularly, buy the dips, and to have been in the game since at least 2006.
virtually everything in my portfolio still has a lot of squeeze room before i'm in the red on ANY trade. gold could drop to $700/oz and I'd still be in the black, because although I've been buying at $1200, and even some at $1700, the majority was accumulated much lower.
OK, you're a genius. Quit bragging. Or at least give me your projection for Tower Hill Mining.
To be honest I'd say I was quite mediocre among ZH readers in both absolute P/L and % terms, but I don't know for sure. I mean everyone has outperformed John Paulson this year...
And Tower Hill... It's 6 times the price it was in Jan 09. Personally I would wait 'til the next QE spike and sell... that's what I'm doing with my gold mining stocks. When the big crash hits (possibly one more QE cycle away — although not necessarily) gold stocks are going into the ground short-to-medium term...
Yeah right, swear the same allocation for other ZHer's. Who's talking about u?
Fair enough, but if you held physical pm`s at a cost average 20% + below current market prices would you be rushing to sell? what would you do with the fiat you sold for? Most Pm holders are simply trying to avoid counterparty risk. I think most gold and silver bugs have been accumulating for a long time and their coat averages are still very comfortable.
+++++++++++++
Yep, bought gold between $740 & $904 and silver up to just under $18.
Not trying to buy my way through the crisis, but rather trying to transfer wealth through it. Won't be opening the vault until we're on the other side.
GSR is currently 51:1 which means trade gold for silver and when the GSR reverts, and it will, swap silver for gold and stack the difference. Meantime--exchange fiat for silver at a much better exchange rate!! kalasend what do you know about how much physical anyone has? You know nothing.
As for PMs, physical delivery has risks. You have the risk of theft, costs of storage, etc.....and high taxes upon redemption. Pms are insurance. Period. Even if they exploded, most folks get paid in dollars, have 401k that aren't even allowed to invest in gold, and on and on and on. PM-ers are buying gold/silver only to keep a semblance of purchasing power. As I heard a wise man once say, "you may get rich if gold goes to 5k, but you won't want to look out your front window".
any ECB rate cuts will KILL the EUR and send equities into a massive freefall.
Gold is going to benefit greatly from the secret loans the Fed is making right now. Just like 2008, but this time they don't even need to ask permission.
its about time! what took so long?
http://covert3.wordpress.com
Is anybody squealing yet? They're pinching pretty hard.
Think your money is safe in your bank?
Safer in well secured stores of vodka, whiskey, toilet paper, trash bags, footwear, clothing, ammo, etc....
Yes, and food.
A five gallon bucket holds ~35 pounds of rice or beans.
True that. Many more things to stock up on that will retain their value. Just off the top of my head: Cartons of cigarettes (I've personally seen cigs selling NOW for $1 A PIECE at local inner city bodega's), hammers, nails, door hinges, rainwater, non-hybrid garden seeds, canning jars, reading glasses, over the counter medicines, vitamins, portable solar panels....
Propane, antibiotics, sewing needles, wool socks...
Excellent thoughts but cigarettes quickly get stale - grow your own terbacky.
Holy Fucking Shit...
I hope Fideltiy will stop sending me emails to contrubute more to my 401k then.
Years of casual contagion talk. Shall we soon see how contagious panic is?
LOL i disagree.
Benny will try IOER, try another huge tidal wave of QE, try Op Twist 2, and ultimately probably try printing money and directly monetising gov't debt (an idea so hyperinflationary even Krugman scorns it)
Will any of these save the global financial system?
Nope. It's dead in the water.
Will the endgame be fun to watch (and profitable if you're long gold)?
You betcha.
http://azizonomics.com/2011/09/22/bernanke-didnt-pump-equities-get-dumped/
Printed 1's and 0's no longer accepted as money.
So...stock up on nickels, quarters, and five dollar bills?
Zerohedge......is the only change you should believe in
everything else is just obummer.
Interesting..he didn´t really say what to do with your money did he???
its implied babes, bullion, bullets, beans, beer, and bunkers
Is today Black Friday or is that next week?
His ass will be fired for TELLING THE TRUTH....
poor bastard.
No shit. His chances of guesting on Quack on the Street just went to the same level as Mike Pento.
it's time for us strong hands in physical Ag to don our elvin silver chain mail like Frodo to withstand the onslaught and live to fight again another day =)
Poor KITCO live silver page is broken doesn't even send a chart anymore, their servers must be broken with people hitting "refresh" on their browsers every second. Not really worried, not "all in" had some speculative positions in ETFs that are getting wiped, c'est la vie, I did well now I give some back. If it's *risk capital* it's not a huge problem now is it? People betting with their retirement money, kids' college funds, food money, are fucked.
The real drop is about to come. Moves like this have got to crush a lot of hedge funds. Everyone bet on Gold and its done for now, LT holders may be in the clear by later this year but can the levered funds using OPM withstand the pain? AAPL is the last standing safe haven for now
Psssttt. I got a secret. Apple sells luxury goods. All but a few are getting wiped out right now. When it comes down to a choice between the iPhone 5 and or keeping yourself warm, who do you think is going to win.
But you can burn an iphone to keep warm. While you tuck in to your oh-so-nourishing ipad.
iPhone 5 and then riot against the evil government for not keeping us warm.
Two thirds of those in the poverty index pay for cable telivision. Obviously the iphone will win.
T
The world is not ending you idiots! It is just changing.
Like it did for the Mayans
Our turn next year.
I think the great monster Bernankenstein killed the Mayans and is back for the second coming to destroy what is left.
The Mayans weren't destroyed. They just said fuck it.
I agree. But my opinion would likely be different if I lived in an inner city.
You're right. Remember how the gasbags on CNBC were calling the dotcoms the "new economy" before the bubble burst? They were wrong. You, Bindar, correctly if not succinctly state we are transitioning to the real "new economy" that will unfortunately be ushered in by fiat currency collapse.
Throughout history the world did not end. But many people's world ended many times
Welcome new guy (bindar dumdat)
1) Most here recognize new shills when they arrive
2) Just because people on this board acquire and store "non-debt based" capital does not mean we think the world will end
3) To your point...because the "world is changing" we change with it by preserving wealth via PMs
4) I do not believe you to be an idiot just because you post like one
That is all...you may go now...
100 million Chinese are waiting to buy all the gold and silver that weak Western hands want to sell, one or two grams at a time. It will add up quickly, and then the Chinese state will move in and forcibly exchange all those little gold and silver grams for paper. They saw what FDR did and they think it was a brilliant move.
If you sell your PMs because they've dropped a little we all lose long term, big time. What goes to China will stay in China virtually forever, and when the world finally does go to a gold standard guess whose currency will be the world's reserve paper money?
Check and mate.
Maybe add the Russians in as well, and the Indians, you know, all the patient people.
I am learning Mandarin and I'm looking for a Chinese girlfriend.
Why are people freaking out about gold? It's up for the year and up over 30% from a year ago. Only traders that are playing in the rigged markets against CBs and hedgies care about the micro changes.
and don't forget some of the 1 billion Indians as well
I am with you 100%....they are buying the real hard metal as we speak....their algos are working overtime also...tons and tons of it...their long term goal is to be the reserve currency...done deal....
Dont entirely agree. China government owns very little gold. If they try to enter the market in any meaningful way, the sprice will spike upwards. They are in a tough spot.
You think peasants making $2 a day are going to be buying a lot of gold?
Here is the problem, GOLD and Silver dropping ahead of Markets
I know that Average price of our Physical holding are lower, but
it doesn't change the fact, while Market dropping alone with
the Metals, our Net Worth slowly wiping out as well. So?
Not sure what you cheering about? Silver down another 8-10%
that dropping 4x S&P speed. Maybe switching a tone to more neutral
would help metals and markets recover more quickly? :)))
Fuck the markets.
Well ya, you've just lost 20% on the Silver in couple of days alone, so far, keep fUcking.
You say "lost 20% on the Silver" I hear "Silver 20% off!"
I checked my stash versus your call that I've lost 20%.
Not to my surprise, but you were wrong--they still have the same mass and weight.
Those laws of the physical universe sure are a bitch for morons -- Matter cannot be created or destroyed.
Those who are cheering do so for two reasons:
1. They have cash flow and/or dry powder reserves, and are happy because they are able to buy at prices they never thought they would see again.
2. They understand the difference between paper and physical, and recognize that falling paper prices hasten the end of the paper market. If the COMEX busts, then they are going to be on the receiving end of a gigantic wave of cash from industrial users who will pay nearly any price to get the silver they need to stop from going out of business.
Long term both Gold and Silver (physical) are solid investments. This system is crashing. They can put the price of either metal wherever they want. Big events about to transpire.
What exactly is your problem fdisk? You seem to be happy about papergold and -silver plunging. Can't you just masturabte your way out of happiness silently without taunting others?
me, happy? You kidding? I'm loaded on both PM stocks and metal
paper/physical and I'm not happy that Market is dropping, cause
I know Metals will recover quickly ones Market pops at least.
But who the heck knows what Europeans will cook over the weekend?
Greek default? Good luck.
fdisk,
Just be patient. Gold and silver have acted like a cork being held underwater. They can be suppressed, but they will pop back up when manipulators can no longer sustain the attack. Look at dips as buying opportunities if you still have cash. Euro crisis is causing panic buying of the FRN$. Nothing has changed fundamentally, inflation is here and when the sheeple realize it the stampede out of US treasuries will be historic. You will want to have a position in PMs before this happens because you probably won't be able to get your hands on them when this occurs. I am comfortable riding out the volatility because I cannot see any other scenario where gold and silver do not go much higher.
silver and gold are victems of temproary dollar strength. that's it. remember when everone said "gold isn't going up, the dollar is going down." it's the same thing now in reverse. don't panic and dont sell. your gold and silver is fine.
So, the dollar went up 10% or 20% without any of the indicators (except inverse one of the pm's?) showing it? Kinda doubt that the dollar has gained ANY purchasing power in the last two days, and surely not that much. See your grocer for details.
And have a nice day. :)
Move from the weak hands to the strong. The harder we crash the faster the transition
Yes, Dominic, but do you see ANY chance of there being a National Basketball Assocation season this year?
Priorities, bitchez!
Is the NBA gonna be bailed out by the Fed?
Ben is going to take this article as an outright challenge. Expect an onslaught of shor squeezes today by day end. Ben will say....See, I can still do what I want.
someone needs to silence the mouth.
These corrections are useful ! When the Feds come to audit your PMs, tell them you were wiped out in the Obama correction of 9-11-2011 ? You learned your lesson and converted to Fiat ! You're workin' at McDonalds and makin' ends meet with Food Stamps ! Sue me ! Monedas 2011 Madalyn Murray O'Hair had a stash of Gold ! I'll bet Michael Moore is a stacker !
Did they ever pull their money market funds out of eurobanks or is it just their short bus guy who had an epiphany?
If you bought gold to protect yourself in case of currency default, stock market collapse, massive amount of US$ being given to banks ... you made the wrong bet. You should have bought ... well, I don't know otherwise I wouldn't be here.
It looks like the vampires will leave no stone unturned in their insatiable need for ALL wealth the planet can provide.
However, this is just another battle in a war that is still working itself out. After the dust has settled a little further down the road we may finally figure out that, like most wars, the emotional stress, monetary expense, and body count really wasn't worth it in the first place.
Looks like the Fedsters haven't completely given up the way they keep pumping overnight and pre-market futures!
It is in times like these that ballsy traders are setting up for a killing later on, in ANY asset class! Buy Physical PMs NOW, wait to go long in a few weeks, at the most!
Funny how people are taking markets down to only get gripped by fear(and panic) themselves! This is the time to GO IN BIG, be patient and keep pouder dry for a fea more days, maybe even a week or two but the BIG INTERVENTION will come, sure, maybe one more last time before the real big unwind, this is just "repositioning"!
I would like to see REAL TRADERS in action not HFTs and button pushers!
FEAR IS GOOD!!!
Lets keep it simple guys. Do you really believe this administration is on the right track and you want to own dollars long term. Greece first, and then we move on. Not going to tell you that my boards do not look ugly, they sure do. But I am selling none, will continue to add a little more on each dump and will buy more physical.
I have 0 margin, 0 stocks outside of miners, confetti, physical and that is what I do. Wrong, maybe, but I think not. But I am down 15% from all time highs in our accounts. I too feel the pain. But am not changing.
"I want you to levitate the futures HAL."
"I'm sorry , I can not do that Ben"
"Lift the fuckin futures HAL"
...
"God damn it we are gonna need rule 48, and get the PPT on the phone."
The Future can't be bailed out.
The only safe haven is...the yen?
I greened you for the implied 'WTF?' latent in your comment.
Well, believe it or not, the JP Morgue is starting to see further deterioration in Europe, that the Monetary policy has reached it's capacity to be effective and that when treasuries blow they will do it big-time. I met with the first serious economist that I've seen in ages recently.
I have been lingering around ZH for the last year just soaking up information, and since that time have accumulated a nice pile of physical PMs. I figured this would be just as good a time as any to have my first post. It would have been nice to have had a crystal ball and kept a bit more fiat powder dry for days like today, but I am not accumulating PMs based on speculation or a quick buck. As a percentage it may appear I have a substantial loss, but the great thing about physical is I still have the same amount I had last week, and all of it us unencumbered. Selfishly, I kind of hope that this all was planned by the FED and other CBs. In the short term if this is manipulation it should keep the dollars I earn a living in buoyed for a while longer all while giving me more time to accumulate more barbaric relics. However, I realize that it is just going to make problems for the WEST much worse in the long run.
yea i'm with you.
the rational man protects himself all the while understanding that the systemic crime commited by the banks that forces him to protect himself is in turn forcing him to doing somethign which will only foster a catastrophic end of the banks which in turn is not THE solution, but only a seeming precursor to the solution.
clearly, the natural order is that the bad banks, the broke banks should be destroyed or left to die. the longer they are on life support the worse it is for the possibilty of finding a solution to honest, well capitalized, non-predatory banking because they cannot allow that to happen while they are on life support as it will ensure they are at some point left to die.
the 'good bank/bad bank' model to the solution is seemingly sensible. and follows the above pattern except for the glaring truth that it is the very banks on life support proferring this 'solution' which means it is no solution at all if it in any way could help mitigate damage to themselves. it is a zero sum game. and any 'good bank bank bank' solution that comes from the horses mouth is guilty as charged. so what is the reasonable man to do?
hoarding any commodities to protect to yourselves from the banks ONLY will be helpful if you find a way of fostering honesty in the system. destroying , or helping the self destruction, of the corrupt bad banks could be considered a start. but it will inevitably resemble a feudal or traditional historical regime and itself will be subject to corruption eventually. that is regression. and ultimately, hoarding will only be useful if it is done towards a progressive end----the end of creating GOOD banks.
perhaps hoarding ccan do this by giving those hoarded commodities away to the people that need them without the use of banks (not theoretical banks but the banks that are connected to the systemic problems of the banking system which means more or less ALL banks , but prioritized in order of danger from biggest to smallest, from fed, to local lending credit union) . ----the point is that essentially making yourself into a 'good bank', is the solution. being a rock of support for helping people build, work, and trade to get their daily honest living done. more realsitically , one can attempt to do this on ones one while at the same time doing one's best to support the 'least corrupt' local credit unions, and other money insittutions that are the most local and independent in nature for the systemic criminal beast known as the fed and primary banks.
the solution is not destroy everything and be done with it. that will lead to more of the same corruption in one form or another. consider the corrupt former soviet union as a warning of destroying an old system without plans to replace it with something better. yes, things CAN get much worse in terms of corruption.
the solution is find a new, honest way , of banking to replace the old way.
now for a couple of my half baked solutions.
some of the obvious steps would be---------
banning the use of financial instruments based on over 10 years of duration. [eliminating the existance of the 30 year mortgage].
nationalizing the entire insurance industry---and banning the use or possession of any credit product that is not held and use , by and for, the insured interest for his insured interest. -----[ eliminating all cds and recharacterizing them as they ALWAYS SHOULD HAVE BEEN CHARACTERIZED as bond insurance ]
-----all banks must be capitalized at 20%. or more. the more they are capitalized, the less they get regulated. banks at 100% capitalization do NOT get regulated. ( does organized crime get regulated? ) this would FORCE criminal banking to be 100% capitalized thereby reducing the pool of available criminal banks that would be willing to launder drug money-----
----- ALL bank or financial contracts of any sort must be registered with a centralized registration entitity for legal confirmation purposes. any non-registered contract cannot be sued upon.
-----
you can take it from there.
but this is a start toward rebuilding the honesty which any advanced system of human social behavior requires.....because 'banking' is just a word. and money is just a word.
but the idea of decision making, and facilitating decision making is GOOD. people can and should make decisions, and bringing honesty to the process is at the heart of advancement, not simply destroying the corruption.
And the new world order is that there shall not be any competition because the strong get stronger?
Horse manure.
This is the desired resolution to the economic crisis by TPTB.
The strong shot their wad and lost. Now they want time to reload and shoot again?
The sorting out of who owes who what needs to be done in open court room
All PM holders... do not panic! If you hold your gold, it will eventually be worth something to someone. You can trade it for the food and other daily commodities you need.
If you have AuAg, the maybe you will get to put off the need to go down to the clinic to get your ObamaCare chip, which will allow you to participate in the mainstream economy.
If you're holding gold as some sort of means to preserve wealth, then you should panic, because the only way to preserve and/or grow your wealth is to join the ranks of the elite. Everyone else is going to get burned. Gentle hint: If you're a commenter here, you are not part of the elite. "They" log on , but only to observe. If I were you, I'd start kocking on their door. ...but you'll still have to have a healthcare ID chip.
"They" log on to observe? How did you come to possess this knowledge? Did "They" give it to you?
sussinct is the word that comes to mind, TD; even though i believe i've misspelled it.
Rome Burns, and the FED and Obummer do the TWIST....
everyone ready for 2012 when agencies, sec, cftc, depts of ED, Energy, epa, czars, ducks, geese, anything in $ 1 Trillion cut
and a flat tax of 15% enacted no tax on dividends, or cap gains, Singapore Model initiated?
get ready...the losses in bonds will be huge.
He's absolutely wrong. They can and will bail it out, Ben just has to be a little more careful when he does it. Maybe when Boehner, or at least the Senate is begging him for QEIII. It'll come.
Gotta love this line...... Germany accepting that it has to fund debt restructuring and so( reduce the quantity of debt in Greece). Yea tell all them silly Germans to pull the gold out of their saving boxes to keep Greece from habving to work longer, or harder , btw that sounds like the US of A
Do you mean a 'member of the establishment'? The status quo doesn't have any members.
Why panic, better to have physical gold and silver then paper.