The Fed's Manipulation Of The Market Is Driving TrimTabs' Charles Biderman "Even More Nuts Than He Already Is"

Tyler Durden's picture

Back in 2009 and 2010, TrimTabs Charles Biderman made waves for being the first person on prime time financial TV to tell it how it is, namely that the Fed is indirectly and directly affecting asset prices. Then he was ostracized. Now, it is not only a given that the Fed does everything in its power to hike stock prices, but is in fact welcome. Indeed, none other than Bob Pisani made point of highlighting that between central bank intervention and kicking the can down the road, the status quo has managed to restore credibility in the system. Of course, nothing could be further from the truth, as we have demonstrated with the now terminal evacuation of faith by the retail investor in the gross manipulated stock "market" which is nothing but a nominal policy vehicle for politicians and bankers. Unfortunately, the endless lies and propaganda are starting to push rational people who refuse to take the blue pill, and who are fully aware there is no wizard, over the edge. In his latest videoblog, Biderman is back, taking his Lewis Black impersonation to the next level, with the following rant: "Individuals are net sellers of US equities and have been for years, probably because they need to pay bills and stuff. So how are they able to do that and get decent prices without the stock market cracking. Well simple the Federal Reserve has been printing huge amounts of money and that ultimately has been boosting the value of US equities, and therefore the sellers can sell. All of this is driving me even more nuts than I already am."

Alas, judging by how seemingly normal people act and behave recently, those to whom every fraudulent action of the Fed is clear as daylight, Biderman's reaction is not unique, and more and more people have been brought to the edge of a full mental collapse as the lies upon lies upon propaganda merely pile up, with nothing ever being fixed (listen to the second part of Biderman's rant for more on that), and with virtually limitless risk now swept under the rug, and onboarded by the world's central banks, in a sequence that can only have one outcome: an end of the monetary system as we know it, at the point where no more risk transfer can take place.

Luckily, since we are now in the exponential phase of consolidated central bank balance sheet expansion, the wait will not be very long 

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slewie the pi-rat's picture

the sausalitoWaterCo was est. in 1963 by theGratefulDead...

I think I need to buy a gun's picture

i'm right with this guy im going nuts

tickhound's picture

lotta poor man got the Cumberland blues,

he can't win for losin'


TruthInSunshine's picture

Any sane person who has even a basic understanding or economics and market forces has come to accept that there is a fundamental truth that's merely been overlooked due to to all of the machinations, schemes, obfuscations, interference, and artifices set up by central banks in pursuit of their latest can-kicking and risk-shifting plans:

Deleveraging has only really taken form in terms of write-downs and write-offs of bad debt, which large parts were paid for by taxpayers (via TARP, TALF, QE & Twist); We're already well into another massive reflation of another credit bubble (2 years now, and yes, even with housing and auto sales well below their 2006 peaks - there's just not as much demand, although the credit risk is as great as it was back in 2006), and few media sources are ackowledging this, let alone talking about it.

True market forces will reassert themselves, ultimately, and we will see this expressed in everything from treasury yields to rates of returns in broad risks of asset classes reflect levels after massive distortion has been pumped into the system by central planning meddling, but not before the central bankers literally run out of the cushion they now have to keep printing.

I read a fantastic article on the alleged deleveraging that the media is claiming is taking place. As the author states, it's really not taking place. There's been a write-down of bad debt, and minor levels of deleveraging by consumers, but only at the margins.

What's really happening is that another credit bubble is already begun to reflate, whereby Bernanke and his central banking brethren around the globe are printing and distributing fiat to recapitalize banks, so that those banks can begin dealing easy credit on autos and cars and via credit cards again, to many of the very same people who just defaulted on many of their prior debt obligations.

This is only possible through the printing of massive amounts of fiat, distributed to the banks (especially the TBTF institutions, which tender much of the mortgage, auto and credit card unsecuritized credit).

So, we'll simply have another period soon, whereby all the consumers now borrowing money to buy homes, autos and everything elese again, but whose incomes aren't sufficient to service this debt over any significant period of time, begin to default en masse, yet again, at which time...yep, the central banks will try to bail out the lenders again, which will debase the currency at even a faster pace, try to socialize the losses, and try to puts 'risk on' assets back into play for those entitled to receive near-cost free loans from central banks, or that are able to exchange low quality collateral in exchange for such loans (or sell the assets outright for well over market value to central banks).

Sustainable future demand will be robbed to pay for present reflation and EZ credit, and to lube the printing, and bankers will get their fill, gorging yet again at the expense of the organic market, taxpayers and consumers (as the inflation tax takes a bite out of their ass).

Except the consequences when the now already under way credit bubble bursts will be a watershed moment, and that's when the central bank 'put' expires worthless:

Here's the article (as posted right here on Zero Hedge):

Guest Post: Cause, Effects & The Fallacy Of A Return To Normalcy


tickhound's picture

And that about covers it!  As if we could ever have any kind of "return to normalcy" with marking to market destroyed.  That's a gorilla, should it ever return.

ps good edit *socialized

TruthInSunshine's picture

I should have added that Biderman is spot on in claiming that publicly traded companies have been buying back massive allotments of their own shares of stock, which has only been possible because they are able to issue record low-yield debt in the form of corporate bonds, thanks to suppression of yields of one of corporate bond's main competitor - treasuries.

So, yes, this is yet just one more factor of artificiality that has allowed a unique phenomenon whereby share prices rose all throughout a period whereby not only retail investors, but corporate insiders, were net sellers of equities by a wide margin.

As David Stockman would no doubt argue (and volume and trading action is beginning to bear this out), jumping into equity markets at this point is the act of either the clinically insane or those using OPM (sans conscience).

DoChenRollingBearing's picture

+ 1  Excellent analysis TruthIS!


I would add here:

GOLD, Bitchez!

CrashisOptimistic's picture

Gold is irrelevant in society.

When we face the ongoing charade and see numbers quoted and celebrated and we know full well the bad paper is still not marked to market on the balance sheets of the financials, there is a way to defend your sanity.

Just carefully look at the numbers that are unprecedented.  

The 10 year government paper is 2%, in an economy that posted 3% GDP for Q4 as well as CPI north of 2%.  You do realize this is not possible?  

Oil is $125/barrel.  Oil spiked in summer 2008 before Quantitative Easing even existed in the lexicon, let alone could get underway.  Oil has been north of $100/barrel in 2012, 2011, 2010, 2008, i.e., 4 of the last 5 years.  That has never happened before.

China is buying cars in numbers well north of 10 million every year and every one of those is oil consumption that has never existed before.

China's per capita oil consumption is 1/10th that of the US.  They have a long long way to go burning oil to come even close to US levels, which equates to lifestyle.  Make no mistake about it; they ARE going to seek that lifestyle and burn oil to get there.  This has never existed before.

$16 Trillion is coming, and the maximum spending cut we've seen after the Tea Party completely reversed an overwhelming Democrat House advantage and turned it into a GOP House . . .  is $4 Billion this fiscal year.  A veritable political earthquake, and all we've seen from it is $4 Billion.  To go with that $4 billion we decided to extend unemployment benefits and do the medicare doc fix, both items of which ate far more than the $4 Billion.   The most powerful political upheaval imaginable took place, AND THEY DID NOT CUT SPENDING.  I can't say this has never existed before.  It has always existed.  What didn't exist before is we didn't have total proof that they won't cut spending until now.  Even the GOP won't cut.

So that's how you keep your sanity.  It's not real.  Ignore equities.  Once you know you're not going to play, then you need not even see them.  Watch some other asset class.


The Big Ching-aso's picture



This guy's obviously going publicly nuts.  He needs a job with ZH and just become anonymously nuts.

The Grip's picture

+1 as usual. Withold the oxygen.

lasvegaspersona's picture


"Gold is irrelevant in society."

in which society?

maybe yours but it is being purchased widely in India, China, Thailand and even Europe.

It may be nothing now but when the Weimar trillion dollar hamburger special is at every Mickey Ds I suspect it's relevance will be apparent.

banksterhater's picture

and now my Dad is getting REIT packages as non-traded REITs rush to go public, after many are up 400% in 4 yrs while issuing record debt to sustain dividends!

JohnKozac's picture

Truth, good report. I am waiting to buy Treasuries until they yield in the Greek range of 800%. Then, I may add a few to my IRA. In the meantime, thier negaitve 4% yield is not too appealing (using John Williams 6%-10% Real Infaltion Rate and the 'official' GDP of only 2%).

CrashisOptimistic's picture

Buy them now.  Rates are going negative.  People will be terrified of coming upheaval and will pay to park their money.  If you're in now, there will be capital gains from that event.

lasvegaspersona's picture

ah, it becomes more clear...

Why in the world would one park ones money in an asset that behaves bizzarely. I get your point but for how long can negative yeilds persist?

The Alarmist's picture

Yeah, we'll, I'm investing my IRA in Ireland, where the capital is Dublin every day ....

Mark123's picture

Great of the best I have read on ZH (which can be very good).

I agree that the current strength of the consumer is probably due to a new consumer credit bubble (car loans, student loans, credit cards etc).  This is a very efficient way to goose the economy (short term) since if you expand consumer credit to people with poor credit then it is certain to get spent immediately (unlike lowering taxes which will be saved by the richer folks).

Surely there is some data to support this expansion of EZ credit?  Also, it would be great to get someone to do a candid camera video of someone applying for a car loan who is without a job, illegal immigrant etc etc - then post on the internet.  There is a lot of power in such video in a society that no longer reads!!!

traderjoe's picture

Why? Because a ruling elite created and manage a system for their sole benefit? Been happening for centuries, and will continue in one form or another. The Fed, the wars, 9/11, and on and on. Evil and selfishness knows no bounds with the TPTB.

Leave the system as much as you want, orient your life as you choose, and free your mind from the indoctrination. Not to sound too Zen, but inner peace lies within.

Oh, and the TPTB have given us a 'gift' - of time to prepare for the inevitable. Use it wisely..

AnAnonymous's picture

If you say the ruling class, it will be accurate.

The ruling class in US citizenism is the middle class and they have created a system for their entire benefit.

Trouble: resources are lacking to sustain that system.

TheFourthStooge-ing's picture

So what happens when the middle class of US citizenism shrinks as they lose employment and descend to the lower class? Since they are no longer middle class, then the system is no longer for their benefit.

I agree that the current system is encountering the restraint of declining resources and is unsustainable.


JohnnyBriefcase's picture

Please explain how the fuck this system benefits the middle class.

lasvegaspersona's picture

gave up on AA a while ago. In fact just commenting here makes me less of a citizenism....

Better_late_than_never's picture

I think they BELIEVE they have created a system for their entire benefit, but everyone is getting duped in the process. If an arsonist sets a fire in a theatre and then the fire alarm goes off, but all the people in the theatre just contiune watching the movie because they really like the movie and don't smell any smoke...

I'm the type to person to leave a building as soon as an alarm goes off. I also happen to stack ag and lurk these forums. The ruling elite have all the money and power. They aren't going to share it. Just like I'm not going to share my silver with the poor bastards who get wrecked in the big crisis. The middle class chooses to flunk history class and spend all their fiat going deeper and deeper into debt, becuase there is the illusion of a giant safety net under us all. These fuckers all over the upper business world aren't stupid, they know its bad and its going to get worse, but they can't sell ad space or get reellected being legit. They are also looking to profit from it. Its a giant world of "fuck you, got mine." out there. This is just natural selection working its way forward in time. The winners will be the ones who actually read the manual. Kyle Bass et al.   

pavman's picture

Any student of history knows the government will come for your gold, silver, et al.  That's the rub.  Eventually, they'll come for you and your store of wealth.  Its the nature of the beast. In fact, they've already changed the laws so any transaction of gold over 10k is reported (guess what... 10k is a hair over 5oz).  What do you think those records will be used for?

Maybe Kyle should sell spots @ his compound for the survivalists.  I know I'd consider buying an emergency rinky dink place there in case the SHTF.  Safer to be with the prepared (even if you are prepared yourself) than to be on your own.  Unless they pull a WACO on Kyle's ass.  Then you're frucked either way.

AllWorkedUp's picture

Yeah, me too. I wonder if I can get a room next to Bidermen at the Funny Farm. The market goes up seemingly every day, gold and silver don't go up nearly as much as they should considering the amount of liquidity being pumped from the world's QE firehose. PM stocks are the only stocks that don't follow the underlying commodity or the SM higher. It's insanity.

derek_vineyard's picture

The fed is accomplishing its goal:

so far wages flat for 5 years

home prices flat since 2003---- 9 years

total net wealth flat for about 7 years

and 7 years inflation at about 5% = 35% LOSS in purchasing power without loss of wealth

Inflating standard of living away------rather than deflation.  Actually fairly simple undo the bubbles and start equalizing USA  standard of living with that of Chinese over a 20 year time period

traderjoe's picture

Those are not the Fed's goals, though they may be the consequences of. The Fed is the front for the fraud of fractional reserve banking, where commercial banks create money from thin air and then lend it out against the collateral of productive assets. It allows the TPTB to steal much of the productive assets over time. It's simply the scam of the century.

All of those other things you discuss are the logical outcome of a gigantic leech siphoning from the system.

AbelCatalyst's picture

Here's some troubling evidence that inflation is already out of control!!

I was making Mac and Cheese for the kids and noticed the expiration date had gone past. I grabbed another box and noticed the price tags. I was shocked by the difference. I have two boxes of the same exact product. One box had an expiration date of 05 Dec 2011 and the other one was 01 Sept 2012 - essentially one year apart. The cost of the first was $.82 and the cost of the second was $1.75. Both were purchased at the same store and it was the price as marked (not discounted because this store does discounts at the register when they scan your card).

A 113% increase in one year on a staple product is certainly representative of food products in general. Have we already entered a hyper-inflationary environment? This is a massive increase in price! I've already seen product size shrinking and I doubt the government is taking these subtle pricing techniques into account in their calculations.

My guess is the inflation ship has already sailed and we are now just waiting for a general realization that inflation is out of control.

I've got the pics to prove it and am happy to share!!

I am Jobe's picture

Inflation is transitory- Ask Janet Yellen

Yes We Can. But Lets Not.'s picture

Hmm. Was the brand of rapidly inflating mac & cheese by chance Uncle Ben's?

Yes We Can. But Lets Not.'s picture

I just checked at store, and an 8 ounce box, versus standard 5.5 ounce box you are talking about, can still be had for $1.00. I am convinced that grocers are raising prices because shoppers are OK with paying more, case in point being you having overpaid by like 150%. People complain about price increases, but they don't try for a better deal by trying harder and shopping around including at places like Aldi and dollar stores.

juslen's picture

That is how prices work. Prices are whatever people are willing to pay. Since there are more dollars chasing fewer goods, prices rise, that is in reaction to inflation or an increase in the money supply. The fact is, those bargain stores have always existed, people have always been shopping at Wal Mart instead of going to a discount store. If more people went to discount stores prices there would rise as well. To some people, Wal Mart is the discount option, prices are rising in the smaller grocery chains so they go to Wal Mart, people see prices rise at Wal Mart and they go to Aldi's or the Dollar Store. And who's to say that prices at the dollar stores have not been rising as well? Sure, they might be cheaper than Wal Mart, but they have always been cheaper than Wal Mart. Many of the bargain stores also sell in bulk, they have fewer selections for food so they can afford to charge lower prices because they get more volume in sales. If Wal Mart slashed their prices to match the bargain stores, the food would go flying off the shelf, there would be shortages, prices would  have to rise to meet demand. But Wal Mart has to make a profit so they can satisfy their shareholders and maintain current wages and benefits for employees. 

Victorio's picture

what the hell's the matter with you feeding your kids that shit. least you could have done is use an organic brand you cheap bastard. stop poisoining your kids...

AbelCatalyst's picture

Point taken... I should be ashamed, but much better than the spaghetti and meatballs out of the can that I was fed!!!

Goldilocks's picture

Robbie Robertson - Somewhere Down The Crazy River (4:52)

francis_sawyer's picture

Don't apologize to some loser telling you you need to buy 'organic'... Pffft! WTF is that?... Radiation from Fukushima is washing up on the shores of California & some idiots are running around trying to sell you "organic" shit from there because it was grown in a fucking commune...

All it takes to make pasta dough is an egg and 100 grams of flour...

BTW ~ I'm not arguing that food prices aren't inflating, but thus far, if you're industrious enough you can still mostly avoid the effects...

I can remember the prices for 'staple' items (like pasta), going back years... I know this, because the last time I 'stocked up' on dry pasta (spaghetti's, farfalle, etc.) was when I was buying them in 2008 at big box retailers (like BJ's)... As recently as last month, I was still eating boxes of spaghetti that I'd bought in 2008...

Anyway, I frequent the markets a lot looking for items on sale... I remember LAST year that the same Barilla pasta boxes were $1.67 (at a different supermarket), and so I said "wow"... Anyway, just last week I noticed the same pasta for .99 cents a box (which was the 2008 price)... Needless to say (& now with the experience of knowing that it preserves very well), I bought another 4 years worth...

I have NO EXPLANATION as to why the price was low again. My 'logic' tells me that:

1. They were overstocked and trying to clear inventory

2. That people on SNAP cards are your basic "mac & cheese" buyers (not you ~ but in general)... & since you can get food at fast food restaurants w/SNAP cards, people may be doing that... I'm not sure how many SNAP users have memberships at BJ's or Costco (& frankly, I don't know if you can use SNAP cards there, I've heard you can use them at Wal Mart)... Anyway, my guess is that you can get cheap bulk food if you know what you're looking for because of this phenomenon...

Also, a supermarket 'insider' told me that the best time to come in is on Wednesdays (which is when many of the bulk clearance specials happen ad hoc)... I've gotten incredibly cheap meats, hams, & vegetable oils on those occasions... Go right after Easter Sunday & Memorial Day weekend, 4th of July as well... Most end up with inventory they want to clear... It's like "after Christmas sales" (the supermarket version)...

Conrad Murray's picture

SNAP cards can be used at some of the bulk stores. I hear there are people who buy their friends' SNAP credits for 50-60 cents on the dollar and use them all to purchase bulk rice, flour, canned goods, etc...

Errol's picture

FWIW, I've learned that kids actually LIKE sliced raw little carrots in their mac n cheese; the flavor is about the same and they like the crunch...

Gully Foyle's picture


"least you could have done is use an organic brand you cheap bastard"

Organic food is just another way to part hipster suckers from their money. Penn and Teller's BULLSHIT had a great episode on it.

Taste test

And this from Wikipedia

Nutritional value and taste

According to the UK's Food Standards Agency, "Consumers may choose to buy organic fruit, vegetables and meat because they believe them to be more nutritious than other food. However, the balance of current scientific evidence does not support this view."[33] A 12-month systematic review commissioned by the FSA in 2009 and conducted at the London School of Hygiene & Tropical Medicine based on 50 years' worth of collected evidence concluded that "there is no good evidence that consumption of organic food is beneficial to health in relation to nutrient content."[34] Other studies have found no proof that organic food offers greater nutritional values, more consumer safety or any distinguishable difference in taste.[3][6][35][36] A review of nutrition claims showed that organic food proponents are unreliable information sources which harm consumers, and that consumers are wasting their money if they buy organic food believing that it contains better nutrients.[37]

Although it is commonly claimed that organically grown food tastes better than conventionally grown food, reviews of the literature that looked at the sensory qualities of the two have not found convincing evidence that there are any significant differences.[4][3]

Victorio's picture

vast difference in taste, quality, nutrient value, genetic value, and toxin levels of organic vs nonorganic produce and grains. this is a fact. wether or not it is true on the megacorporate food producer level is disputable depending on the product in question. but to make the assertions you did and apply them to all "organic" products is plain ignorance.   

if its not organic then more than likely it contains gmo material and is therefore likely toxic. 


Gully Foyle's picture


Obviously it is not " a fact".

It is a bias to make you feel better allowing someone to con you into paying twice the price for a substandard product.

You remind me of the Banana woman in the Penn and Teller video, who blames Bananas for her failing to discern the organic from the normal.

Read it and weep

Organic vegetables 'no healthier than conventional food' Organic vegetables are no healthier than food grown conventionally despite their premium price, according to a university study.

The study by environmental scientists at the University of Copenhagen was published by the Journal of Agricultural and Food Chemistry.

Crops were grown at different times of year and in different parts of the country to get a balanced return.

This is because the kind of soil, the difference in climate and attacks by pests are major factors in the amount of polyphenols produced by plants.

Organic crops are more expensive and because of this have attracted an image of being a middle class purchase.

They are often perceived as being healthier, though consumers also cite environmental concerns, taste and texture and animal welfare as other reasons for spending more.

The researchers reported: "The demand for organic food products is steadily increasing partly due to the expected health benefits of organic food consumption.

"On the basis of the study carried out under well-controlled conditions, it cannot be concluded that organically grown onions, carrots, and potatoes generally have higher contents of health-promoting secondary metabolites (polyphenols) in comparison with the conventionally cultivated ones."

Victorio's picture

actually it is a fact.

take any non-gmo variety raised organically, in organic soil, with organic fertilizers, without pesticides and you will have a vastly different product than its conventionally raised, genetically modified, chemically fertilized, poison sprayed counterpart.  to dispute this fact means you have no real world experience in the matter and instead rely on some hack comedians, and corproment entities to form your opinion for you. alot of their bs shows were bs, like the one on chiropractic for example. i suspect they are corporate shills.

Augustus's picture

You can list all of the buzz words used to sell the "organic" propaganda.  It would be much more productive for you to actually look at the nutritional data.  Relying upon hack scaremongers and propaganda merchants to establish your misguided beliefs will cost you in cash at the market and a great deal of self esteem when you recognize eventually that you've been suckered.