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Forget Operation Twist: Rosenberg Says Bernanke Will Shock Everyone With What Is About To Come
As we have been pointing out since the beginning of the week, the one defining feature of the past 5 days has been a relentless short covering rally. And while the mechanics were obvious, one thing was missing: the reason. Well, courtesy of David Rosenberg's latest, we may now know what it is. Bottom line: for all who think that Bernanke is about to serve just Operation Twist next week... you ain't seen nothing yet. "The consensus view that the Fed is going to stop at 'Operation Twist' may be in for a surprise. It may end up doing much, much more." Rosie continues: "Look, we are talking about the same man who, on October 2, 2003, delivered a speech titled Monetary Policy and the Stock Market: Some Empirical Results. I kid you not. This is someone who clearly sees the stock market as a transmission mechanism from Fed policy to the rest of the economy. In other words, if Bernanke wants to juice the stock market, then he must do something to surprise the market. 'Operation Twist' is already baked in, which means he has to do that and a lot more to generate the positive surprise he clearly desires (this is exactly what he did on August 9th with the mid-2013 on- hold commitment). It seems that Bernanke, if he wants the market to rally, is going to have to come out with a surprise next Wednesday." In other words, stocks are now pricing in not just OT 2, and a reduction in the IOER, but also an LSAP of a few hundred billion. There is, however, naturally a flipside, to Bernanke's priced in announcement: "If he doesn't, then expect a big selloff." In everything, mind you, stocks, bonds, and certainly precious metals. And, of course, vice versa.
Full note from Today's Breakfast with Dave:
The consensus view that the Fed is going to stop at 'Operation Twist' may be in for a surprise. It may end up doing much, much more. And this may be one of the reasons why the stock market is starting to rally (a classic 50%+ retracement, which always occur after the first 20% down-leg in a cyclical bear market would imply a test of 1,250 on the S&P 500 at the very least). Hedge funds do not want to be short ahead of next week's FOMC meeting, and who can blame them?
Here are 10 reasons why:
- Just go back to August 9th. The Fed was supposed to make a more emphatic comment in the press statement about "extended period" as it pertained to the length of time the Fed would stay ultra-accommodative on the rates front. Bernanke went much further than anyone thought with his pledge to keep the funds rate at the floor at least to mid-2013.
- Ben Bernanke has shown repeatedly that he is willing to take risks and be very aggressive.
- Everyone knows that the Dow finished the August 9th session with a huge 430 point gain after the FOMC press statement was fully digested. Not only that, but when Bernanke held his two-day meeting in mid-December of 2008 and unveiled QE1, the Dow soared 360 points. And last November, the day after that two-day meeting when Bernanke made it clear in his Washington Post op-ed article how key it was to ignite the stock market, the Dow jumped 220 points. It may all be just for a near-term trade, but in an industry where every basis point counts, who wants to be short knowing all that?
- At that August meeting, we know both from the statement and minutes that additional rounds of unconventional easing were discussed. And Mr. Bernanke made it very clear at Jackson Hole that they would be on the table again at the coming meeting
- The Fed would like to be out of the picture during the election campaign (especially if Richard Perry ends up winning the GOP nomination).
- The Fed has cut its GDP forecasts at each of the past three meetings.
- The stock market is actually little changed from where it was at the last meeting and we know based on that Washington Post op-ed, that it is equity valuation (specifically the Russell 2000) that Ben wants to see rally. Sanctioning lower bond yields is just a means to that end.
- There is no fiscal stimulus to bolster the economy, with the odds very high that the Obama jobs plan — some in his own party object to the package as per yesterday's New York Times — will be dead-on-arrival on the House floor. The Fed is the only game in town.
- Financial conditions have tightened nearly 100 basis points since the spring and deserve a policy response.
- Bernanke announced at Jackson Hole that this coming meeting was going to be a two-day affair, not one day. The last time he did this was back in December 2008 and that was when he invoked QE1. There has to be a reason why it is two days, and it must be because he wants to build the case for three dissenters. The Board is being sequestered for a reason!
Look, we are talking about the same man who, on October 2, 2003, delivered a speech titled Monetary Policy and the Stock Market: Some Empirical Results. I kid you not. This is someone who clearly sees the stock market as a transmission mechanism from Fed policy to the rest of the economy. Here is a key excerpt from that sermon:
Normally, the FOMC, the monetary policymaking arm of the Federal Reserve, announces its interest rate decisions at around 2:15 p.m. following each of its eight regularly scheduled meetings each year. An air of expectation reigns in financial markets in the few minutes before to the announcement. If you happen to have access to a monitor that tracks key market indexes, at 2:15 p.m. on an announcement day you can watch those indexes quiver as if trying to digest the information in the rate decision and the FOMC's accompanying statement of explanation. Then the black line representing each market index moves quickly up or down, and the markets have priced the FOMC action into the aggregate values of U.S. equities, bonds, and other assets.
Even the casual observer can have no doubt, then, that FOMC decisions move asset prices, including equity prices. Estimating the size and duration of these effects, however, is not so straightforward. Because traders in equity markets, as in most other financial markets, are generally highly informed and sophisticated. any policy decision that is largely anticipated will already be factored into stock prices and will elicit little reaction when announced. To measure the effects of monetary policy changes on the stock market, then, we need to have a measure of the portion of a given change in monetary policy that the market had not already anticipated before the FOMC's formal announcement [emphasis added].
In other words, if Bernanke wants to juice the stock market, then he must do something to surprise the market. 'Operation Twist' is already baked in, which means he has to do that and a lot more to generate the positive surprise he clearly desires (this is exactly what he did on August 9th with the mid-2013 on- hold commitment). It seems that Bernanke, if he wants the market to rally, is going to have to come out with a surprise next Wednesday. If he doesn't, then expect a big selloff.
What he is likely to do is another story, but here are some options:
- Expand the balance sheet further and simply buy more bonds (at the longer end of the curve).
- Eliminate the interest paid to commercial banks on excess reserves (to try to spur lending).
- Announce an explicit ceiling on the 10-year note yield (say 1.5%), which the Fed has done in the distant past. Based on Bernanke's prior rhetoric, this would seem to be a preferred strategy (though the Fed relinquishes control of the balance sheet).
- Buy foreign securities (bail out Europe and weaken the U.S. dollar — talk about killing two birds with one policy stone).
- Announce an explicit higher inflation target or perhaps a lower unemployment rate target (i.e. reinforce the DUAL mandate).
- As Mr. Bernanke stated for the record in November 2002, the Fed does have broad powers to lend to the private sector indirectly via banks, through the discount window. It could offer fixed-term loans to banks at low or zero interest, with a wide range of private assets (including, among others, corporate bonds, commercial paper, bank loans, and mortgages) deemed eligible as collateral. For example, the Fed might make 90-day or 180-day zero-interest loans to banks, taking corporate commercial paper of the same maturity as collateral. Such a program could significantly reduce liquidity and term premiums on the assets used as collateral. Reductions in these premiums would lower the cost of capital both to banks and the nonbank private sector.
Note that this is all for a trade. As we saw back on August 9th, we had a huge rally but the market is no higher today than it was then. All we have seen since is a huge amount of volatility.
Source: Gluskin Sheff
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Oh, cities WILL burn in america soon, the govt damn sure knows it, and has planned for it!
No ones ever too lazy or poor to riot and loot! Inner cities WILL burn when the switch is flipped make no mistake about it....and as for the 'beat down sheeple'? Pretty good roasted over an open spit!
As someone said : The current central bank pump is like a bottle of oxygen being handed to a deep sea diver stuck under water and chained to the floor under a heavy iron bar. He has just been handed enough oxygen to last another round but no key or axe to unchain him from deep down.
Is Ben now going to bring the NAutilus to save him? Operation Poseidon?
Look to the FT article earlier this week with BOE Posen calling for direct government lending via a unencumbered bank and some form of securitization vehicle (aka GSE) to avoid liquidity trap
He has to print otherwise US goverment collapses now which is not good, later is better. QEIII 500 trillion at least. Don't forget, we gotta bail out Europe now.
The Fed could collapse first, after all the bankers are relying on taxpayer largesse, aren't they?
'Later is better' why? Everyone is already in the stew pot, you think Obama wants to run on $5 gas which would happen overnite, and have to explain why all we do now is print more debt in AA+ America? Somethings not adding up here, big time.
I don't think they have a choice, Obama will sold down the river when it suits them.
can't wait till they start handing out edible i-pads.
remember all the hand wringing etc when gold was pushing through $1000. seems like it never happened. given the macro picture then - as now - it seems kinda silly to worry about the drama queens like ben bernanke. $5 trillion in gaap deficit etc etc ... i'll stick with physical gold and silver.
No, no, no. The most important reason to print money and juice the markets is so that GSAM can fee bill off of really high 9/30 market values.
The entire financial system is teetering which means less transparency, more fraudulent accounting procedures and more money printing all at the expense of the middle classes.
Let us write down all the facts about the greatest swindle in human history and call them "The Truth books" so that future generations are not duped again by pyschopathic egomaniacs and blantantly false and manipulative teachings on economics, history and government.
All I'm saying is that I trade what I see on the tape, not what my beliefs or opinions are.
I hate EBAY with a passion since I hate their website, but I love the stock.
I like many gold companies because they are undervalued but I hate the stocks and won't buy them until they prove themselves with large institutional buying.
It is the only way of true survival for those who trade for a living.
I must admit that you are fairly brilliant at knowing exactly what stocks moved big yesterday.
today you're a trader. last week you were a buy and holder: xom, t, vz, mo hd. then you were a pumper of tzoo and lulu. then you said you would never trade them because they're too risky. in the past you've gone on and on about owning an ira full of gold stocks. now you won't buy them until they prove themselves. then you mocked gold holders as doomers. then you admitted to owning a monster box of silver eagles and gold coins. fast forward you were a trader, again. later you were a 1099 processor for a bank. now you're a trader again.
robottrader: for comic relief in a tough world.
gotta love 'im
Sigh.. without 2-3 trillion QE, I will be sorely disapointed. I am hoping the market will be as well.
lets get hyperinflaiton on, I am tired of waiting
Waffen,
The way I see it, is WHEN you have Nothing to lose, you pull the pin, and chunk it.
And see what happens.
Our chief weapon is surprise...surprise and fear...fear and surprise.... Our two weapons are fear and surprise...and ruthless efficiency.... Our *three* weapons are fear, surprise, and ruthless efficiency...and an almost fanatical devotion to the Pope.... Our *four*...no... *Amongst* our weapons.... Amongst our weaponry...are such elements as fear, surprise.... I'll come in again.
http://www.youtube.com/watch?v=vt0Y39eMvpI
Re-cap for Retards (Fed staffers)
Reduce Un-Employment (FAIL)
Stimulate the Economy (FAIL)
Juice the (non) Recovery (FAIL)
Get Bank Credit (Debt) & Lending Going Again (FAIL)
Hold Up Retail & Commercial Property Prices (FAIL)
Here's the Programs Used:
QE1 (FAILURE)
QE Lite (FAILURE)
QE2 (FAILURE)
So Benny, not much of a record. Pitiful would be kind. Pitiful hardly describes the biggest expansion in a Central Banks balance sheet in history with absolutely fuck all to show for it. You make a great double-team with Barry. Two historically massive sad bloody failures carrying more broken promises than a convoy of snakeoil salesman leaving Town fast
You simply haven't got a fuking clue what you're doing have you? You simply have no clue how to effect or change anything. Like politicians you suck at everything you touch. If you were private sector you'd be out on your worthless fat arse by now. But you're public sector, so you just sit on your worthless fat arse day after day and keep failing (miserably).
So what's your next Masterplan Ben?
'Juice the Stockmarkets'
Hahahahahaha ;))) .....like Washington DC you're flayling around for anything to 'stimulate' like a drowning man grasping at straws having drowned at every goalpost you yourself clearly defined. Your un-remitting ineptness with 5 sunken-without-trace attempts at goal is shifted (shifty aren't you?) to a new goalpost to grasp at
Here's a sane suggestion Ben the Bankrupt (seen your shitbag filled balance sheet lately?): RESIGN ...and stop perverting the economy with your moronic incompetence, size 19 clown boots and big red elongating Pinocchio nose
We are all doomed!
Afterhours markets moving higher, I sold SPY at 121.53
that's where it closed and now it's showing 121.76-77,
something is cooking.
Strategy: weaken the dollar versus all other currencies.
Method to Accomplish: Print
However, I'll say now that my prediction is that nothing comes out of the meeting this coming week - DOW is already on a tear, S&P comfortably back in in the 1200s, Euro-crap is solved (for now) and there is no driver for this. Not now - soon the printers will be on overdrive, but the collapse has been put off for another interval, and Bennie would be wasting his ammo. They're probably surprised how well the phony Euro-fix That Is Not A Fix Worked.
Any questions?
A attack on PM's.... how convinient as October is another buying month for me :)
BRING THEM DOWN FOR A MONTH BERNIE!! YEAH!!!
ODUMBO is having a nervous breakdown, and so is kRUGMAN LICKING
BERFLUNKE, give em both a Las Vegas Vacation..... roof food,
bev at the Stardust. or something.....
even Carville is screaming 2012? FUGGEDDABOUTIT
We all know LSAP is coming but Bernanke does not have the politics lined up behind him to do it when the Dow is over 11,500 and they are reporting and forecasting GDP growth. There is plenty of evidence that Bernanke has wet dreams about never ending LSAPs, but he won't torpedo his career for a good orgasm. Not yet.
In any event, gold is the safest way to play this. I own more gold than stocks which is bizarre, but that's simply where the value is in the world we live in. Agricultural commodities are also a safe place to be and would benefit from an unexpected LSAP.
Wait for Europe to blow itself up befoe betting too heavy on stocks.
If more QE is coming, someone forgot to tell commodities, which show just the opposite.
If a spectacular QE were in the pipeline, oil would already know it, and is showing the opposite. Across the commodities spectrum.
Yes Rosie is right, its all screwed and the equities have never been more top heavy, and the FED hands are also completely tied.
Flowery worded speech about nothing now being prepped for Ben.
The one card he has left is zero percent interest for everybody. Regulate the banks and the maximum interest rate they can charge. Start off with a two percent maximum interest rate. That will get the economy going.
I know! BB is bringing back the Danesgold. It's brilliant. Poor Canada, sucks to be us. The rest of you will pay more too. You too Denmark. Maybe BB will acccept good looking women as partial payment.
Defining operation twist
while being pleased by her ..you suddenly turn her around and put it in her butt....when she asks "what are you doing"...you smile and say
"operation twist"
:)
no there won't be anything major cept for the op twist full plan revealed, the unsual money pump increase etc. The market has already priced it in, hence the rallies for the last five days.
there will be extended rallies into late sept, then the EZ will haunt markets (final) + China inflation/meltdown/the end = major sell off.
The only hope for Europe is massive FED intervention. How to accomplish that in stealth mode in an election year?
Mush words from Bernanke, more of the same with deviousness x10 to twist and turn, but wriggling will only tighten the noose.
There was TARP and stimulus and QE and QE and QE and now Jobs bill and the Fed bailed out $16 Trillion not including all the Euro bailouts and Japanese, Chinese printing....AND THINGS ARE STILL FUCKED UP? The answer cannot be more money can it? Is there a black hole of fiat out there...maybe it is near Bermuda?
Remeber Dubai...that seems a long time ago. I guess that's all fixed too?
"Nakheel PJSC, Dubai’s biggest developer, told creditors it wrote down 78.6 billion dirhams ($21.4 billion) from the value of its real estate as property prices in the emirate crashed."
The Dubai government-owned company wrote off 301.4 million dirhams in the first half of last year, 73.8 billion dirhams in 2009 and a further 4.44 billion dirhams in 2008, according to its Islamic bond prospectus issued last month and obtained by Bloomberg News. After the write-offs, the company’s share capital dropped to 10.6 billion dirhams in June 2010 from 87.1 billion dirhams in 2008. Nakheel declined to comment."
http://www.bloomberg.com/news/2011-09-12/nakheel-wrote-off-21-4-billion-...
I like Rosie but I'm not sure about this. The headline promises much but the bulleted list just re-hashes what we already know. With the SnP in the 1200s we're hardly at crisis point, Europe seems to have bailed out Greece for another quarter, so that seems to be have been contained, where is the raison d'etre for uber-ammunition? We need to be in a far bigger bind than this for a major policy surprise or else Ben might find he doesn't have much left when the going really gets tough. Rosie's lists here aren't that insightful to be honest.
I don't comprehend the undeserved attention on this man's words. His track record at forecasting stock market performance appears to be brilliantly pathetic. Why should he be so heavily followed?
I can't wait to see what is in " Helicopter Bens' " [ W.M.D.] war chest... sarc/ON
There goes the VIX back into the stratosphere! Shock and awe<
Fellow ZHers, please do not use titties or other portions of the female anatomy for your picture. I ask this not because I am a prude, but because I am a pig, and the sight of big titties distracts me from any intelligent message you may be trying to impart. Sure, you grab my attention, at least initially, but that's as far as it goes. You hear what I'm saying?
How do you survive on the internet? It's all breasts all the time...
...As it should be. God bless the interwebs and its series of tubes!
These are the only titties I get to see lately. Quit trying to rain on my parade.
fishing chimps: you've been around almost 2 years on zH
1 page of blogs
nothing in almost 2 months, and now this...
GO AWAY AND DON'T COME BACK, you fuking shithead
Bullish for Silver and Gold bitchez :)
They are about to introduce the "super dollar" a greenback that is backed by gold....the old usd will still be used but trade in ratio will be 1000 to 1
Sounds pretty crazy huh? But you know what? I wouldn't put it past them....just lookup super congress
"The secret plan is that we're going to keep doing exactly what we've been doing, for as long as we can."
- Daniel Quinn, in, "What a Way To Go"
Absolutely.
Keep the kettle boiling.
Sure it's hard for those who are out of workt. But don't we have to maintain normalcy for as many citizens as we can? Slowly, that number will erode, but there is no other course of action.
You can talk about armed insurrection all you want, but when the planes fly overhead spraying a nerve gas that hasn't even been used on our enemies, events are spinning out of control, and "for as long as we can" is officially over.
i could see that happening.
So people believe Ben is going to fire his very last bullets just to push the S&P back to 1350? Liquidity is not a problem - so the only reason would be to devalue dollar, and it seems prudent to wait to see what happens to the euro first before spiking already high commodity prices. The idea that the fed has a cure all is delusional.
I would be surprised if Ben does anything other than twist...and if he does, that it would have any other effect than a short term bounce.
While he's done it before, I just can't believe Bernanke would trash the dollar. Not now. Rocketing commodity prices heading into the Winter season could be the death knell for his term and any hope Obama and the Democrats have left.
That is, I think more and more people are clued in and may actually care this time around.
Of course, if Bernanke doesn't care, he'll just do whatever he pleases and follow his theory to it's ultimate conclusion.
In Ron Pauls' defense who has not heard the main stream media call him nuts and unelectable. Mostly because of his end the fed commentary. However, he said he would get on Bernanke and company and I have yet to see it. What is he waiting for?
Let me see if I've got this straight. If the Bernank executes "Operation Twist", I should be long equities. Gotcha. However, if next week he doesn't execute "Operation Twist", I should be short the market. Splendid. I will act accordingly.
I am not sure what the FED will do. Last time I was pretty sure that they wouldn't announce QE3 and they didn't. Eventually they will do it but I am not sure when and in what form. If they don't announce it, I doubt PM's are going to sell off big time. Well, I am not selling. That is for sure.
Since I didn't see it mentioned in the article, here's the date and time The Bernank will announce whatever policy they decide upon in their two-day meeting:
2:15 PM ET, Wednesday, 21 Sept.
...myslec co zrobia Fedzie.
Benny is busy saving the (financial) world. Thank You for the swaps covering our sore asse(t)s - we really love you back here for this despite all the snoty comments :). We were seriously afraid that the recently established temporary "hands off" policy shall result in "heads off" here and there. Fortunately you were kind enough to allow for a not so small dent in your program.
As to the incoming hopes for the week one could guess that taking care of the people who start their day from having a slice of fresh gold and a glass of hot silver is not his main concern.
In the words of Jim Rogers:
“It is absolutely the wrong thing to do, but that’s all Bernanke knows,” he said. “He has spent his whole intellectual career studying the printing of money and now America has now given him the printing presses. You just wait until we have real problems. He’s going to run (the presses) just as fast as he can.”
Get ready!
Dudley wanted peope to eat I-pads because their prices were going down.
Now the Great Ben wants people to eat "the stock market" by making sure it goes up.
In the meantime, in the real world ... poverty is increasing and more and more people are relying on food stamps!
Oh, SNAP! I forgot about those.
The absolute only thing he could do to surprise, is to disavow his Keynesian ways and go Austrian. But we all know that will never happen.
Rosie is Canadian, right?
Well if things are so "Rosie" .. pun intended.. why did all Canadian banks sell off today?
The TSX is off considerably when DJI and S&P had their orgasmic Friday afternoon HFT driven rally.
Americans are supposed to go shopping this weekend!
Come next week however, all bets are off. This is going to get ugly and it will be uglier when nobody expects it. When even Rosie is turning bullish on the market, then the propaganda effort has accomplished the goal.
Monday will be a rude awakening.
Tyler, I fully expect to see the "Deer in Headlights" pic, as large as possible.
The thing that would catch most by surprise would be if Bernanke decides to stay put. I'm not yet in this camp but I do tend to think Bernanke remains in a box. CPI and PPI even as convoluted as they have become for inflation indicators are bright red hot. All other inflationary signs are there as well. Oil and all other commodities will go hyper speed with too much free QE. I think he will talk Operation Twist and suggest the comittee is open to "other ideas".
Ron Paul will do dick! If tries to audit the Federal reserve the Rothschild & Company will have him taken out of circulation. Federal Reserve is the "gateway to hell"!
Bernanke is probably desperate to save his reputation, he's looking at his historical legacy at this point, will he be thought of as the chump that blew it, or the savior of the USA? So the news that he's looking to try a bigger move isn't a surprise.
The Bernanke and Beavis Geitner should hold hands and splash each other with this overpriced gasoline and burn in front of the Fed Reserve Bldg. on Wednesday. Hopefully all members of Congress and the Senate, excluding the Pauls of course, would jump in. Who else?
Operation Twist, Bitches!!!
Learn to live it! Learn to love it!
http://geraldcelente.proboards.com
Public refusal to pay all taxes and fees occuring now in Greece and in Spain will soon or eventually shock Bernanke and everyone of his cohort with the financial anarchy that is about to come:
http://globaleconomicanalysis.blogspot.com/2011/09/navarra-region-of-spain-bankrupt-by-end.html
On the ground report from Greece by Manos
September 11, 2011
Today, after two years of screwing and pressing us, most households and businesses have stopped paying. Stopped paying taxes, utility bills, toll fees, or anything else related to the government. Two hours ago, this same government announced a new property tax (added to the 2 previous ones). This one will be calculated on every and each household, business, cottage, or even a barn for animals. It will be 4 euros per square meter calculated immediately, to be paid by this December the latest (and the sq. meter tax will also not be paid):
http://www.shtfplan.com/headline-news/warning-for-americans-be-safe-and-stay-alert-its-coming_09132011
Jeeze, how dim are all you guys?
Don't you get it?
Operation Twist is taken from the classic by Charles Dickens.
You must remember when little Oliver is at the orphanage and he delivers his most memorable line:
PLEASE, SIR, I WANT SOME MORE.
Didn't you learn anything in high school?
The market expectation of Wall Street is incremental increases over a long time period in aid by the Fed leading to an infinite printing cycle while being fully backed by the FED. It is full on extend and pretend until jobs start come around. Which won't happen until you clear the bad debt. Unless you use debt to create jobs, maybe something green and renewable, like in energy, a solar panel shop maybe....
hmmmmmmmmmmmmmm.
i'm already nervous about my shorts. this is gonna require some thinkin and some readin.
this is what i was figurin at first, right after the august meeting. but then i thought, no, if he's got to convince the hawks, he ain't done yet. unless he's in the process of layin out the dirty laundy before them...givin them a lil of the ole shock and awe about the state of global financial markets.
maybe it'll go down something like this:
http://www.youtube.com/watch?v=BqEcLlp_Big
yup, janus started as a salesman, too. janus is a lot like this little man -- except that janus is kinda tall, and except that janus is good lookin; and except that janus has a boomin voice == which makes me the greatest of all time; now i'm sellin something else -- and the price is yer soul.
here are some scenes from the life of janus
http://www.youtube.com/watch?v=amznbi0lFaU
http://www.youtube.com/watch?v=S3LXBaO0nh8&feature=related
http://www.youtube.com/watch?v=e8FaDaTD_hA&feature=related
i believe you may be right, mr. beale.
america, you have broken janus's heart; now he will break yours.
it's a mighty hard climb/
but i'm on my way/
glory hallelujah/
i'm on my way!
...when i became a man; i put away childish things -- Saint Paul, I Corinthians, Ch. 13:11.
so long
try and fuckin stop me, america!
double-dog dare,
janus
It's really time to stop trying to figure out "why" the market went up. No one really fucking knows except maybe the rocket scientists at rentech. Everyone else trying to play mr. educated is just a lucky fool until they get burned like that UBS guy. Cut your losers and let your winners run that's the only way to play this game.
those words are soundin wise, seventh.
but what's a gun slinger to do?
it's hard to sit back and just watch.
I think gold is a good investment. But it will be a shame to see the $ lose value.
If Mr. Bernanke does as is predicted in this post, the $ would be irreparably damaged or further damaged.
He would be single handed responsible for DOW 20000. But he will also be sole one to be blamed for a plunge like devaluation of the $.
While it is easy to buy some SPY or GLD to make a small profit. We will lose on the big side when we lose the value of the $.
i suspect roseberg is selling on the fact, see doomsday traders (like my self) want rallies so we can short the top ranges
Here's my guess as to the Bernanke move ... Bernanke will announce the Euro and the dollar will merge into the EuroDollar. If you want a surprise that would be it. The terms would be that all the PIIGS would be bailed out and currency controls would be instituted. Great Britain would merge the pound into the dollar. Switzerland would go its merry way.
Nothing would surprise me.
HeliBen is running the Fed like an 80 year old air show pilot.
To really surprise the market the announcement would not come at a regulary scheduled meeting.
its friday night. time for some butthole surfers.......
.http://www.youtube.com/watch?v=g4WUlNSx_Wk&feature=list_related&playnext=1&list=AVGxdCwVVULXcHpUW1gvJBjeEX5XfWOMz9
Oh hellz yeah....now git some Scratch Acid in there for that Austin noise hoedown
WHERE IS MARLA?????
Damn.
So sad to see Erik Estrada out of work.
Ben is like the life of the party who's standing on the edge of the hotel roof in Vegas, wowing the crowd with his jello shot technique.
Except he's got the global economy in his other hand.
No QE at this meeting kids.
That'll be saved for a special occasion.
The FED is already adding all the liquidity its going to. QE announcement is NOT going to happen.
Thats why they're backdooring the bailout of Europe and supporting the Euro so it doesnt crash and they have to react by slamming the USD down.
let me guess:
Ben opens up the vault of Fort Knox and
the Gold has mysteriously disappeared ?
I too am expecting some really off-the-wall action by the Fed and very closely connected to the end of September/early October. I'm nowhere near confident as to what they might be. One reason for that is that this will all be happening overtly and in concert with other major central banks including Britain, Switzerland... and probably every major player.
If I had to sum this moment up, I'd say that all the central bankers have just decided that the growth game is over. It's time to restructure so that everybody gets a piece of the pie on the way down so we don't kill ourselves... Sick, isn't it? -- Michael C. Ruppert
http://www.collapsenet.com/154.html
We may have hit bottom in US stocks a few months ago...
That doesn't mean Benny the Bouncer isn't going to load up the chopper. He has to try to get some growth. Why not prop up the equity market even more?
By the way, dumbo Bloomberg is predicting riots in NYC without Barry's jerbs plan. Any takers on that prediction?
Probability of US Riots - zero -
People in NYC are too well fed to start any Riots.
You need to be lean, mean and hungry (like Europeans) to start Riots -
we have not seen any lean, mean or hungry Americans for years.
(except for Timmy Geitner, but extra-terrestial aliens don't count)
Credit Crisis: The Result of Greatest Financial Crime in World History. Where are the Convictions?
Interview
by Prof. William K Black and James J Puplava
.
So control fraud is when the person who controls a seemingly legitimate entity, uses it as a weapon to fraud. In the financial sphere, the weapon of choice is accounting. So here are the four ingredients of the recipe that produce a sure thing of record accounting income.
Grow like crazy
Make preposterously bad loans but at a premium yield.
Have extreme leverage. That means you have a ton on debt.
Put aside only ridiculously low allowances for future loan losses.
You do those four things, you are mathematically guaranteed to report record, albeit fictional, profits in the short term. You are also guaranteed with modern executive compensation, to make the Senior Executives wealthy, and you are guaranteed, because after all, if you think about those four ingredients, they are the perfect recipe as well for maximizing real losses. And that’s why the title of Akerlof and Romer’s article says it all, “Looting: The Economic Underworld of Bankruptcy for Profit.” The firm fails but the executives walk away rich. This is the same concept with my book “The Best Way to Rob a Bank Is to Own One.” It is these internal people who control the seemingly legitimate entity that can get away with financial murder. And here is the really bad news. I mean that is bad news right there, but the really bad news, is that this tends to happen as the FBI warned, and again in 2004, seven years ago. So the next time you hear some moron tell you that no one could have predicted this, it was predicted by the Premiere Law Enforcement entity in the world dealing with white-collar crime.
..
http://www.globalresearch.ca/index.php?context=va&aid=26602
http://www.youtube.com/watch?v=q5REO7MKGhs&feature=related
We'll be back at the yearly highs soon enough. Thats the plan. New highs possible. Shitty stocks like Amazon breaking out agin Baidu soon to follow and AAPl everyones big boy diaper on board too, Don't fight the fucks. Cover your shorts and go long. True youll keep feeding it by covering but why suffer? This week was all about taking out stops there was record short interest so they had to send a message. maybe a pullback next week but elliott wave newsletter will once again be choking on their call. Prechter must have really pissed off the PTB. Bill Gross will have to wait on his bond call too. We are under complete control. The age of buy and hold is here. Its a new bull market.
Ive called shit before too look it up. Look at NDX. We either have the mother of wave twos or bernanke is gonna burn the fuckin shorts again.
A minor pullback to straighten out the moving averages and then poof- we are going higher. Im a bear like most here but come on. we had over a month of bottoming and we are rocketing up now. Don't underestimate funny money.
Hello Wall Street - We Are Anonymous Sept 17 .http://www.youtube.com/watch?v=T-eFxCDx7Yw
And Anonymous brings.... nothing to the table.... again.
Nice videos, though.
Seriously- I tried watching the huge death-defying protest on their streaming cam, and was treated to the sight of, sigh, pedestrians milling about, saying little or nothing.
Well, Anonymous- thank you, sincerely, for caring- but if this is all you've got, stay home and prep.
Will the Bernank take action before the election next year ? Any successes will be attributable to the current administration and it's likely that the the FED (not a political org. (lol!)) would prefer to have a republican no doubt. The Bernank doesn't have to do much at this point to push yields higher to get the markets moving again. He can start dumping his long bonds at 140 (see long bond futures), to get rates moving higher and convince the sheeple that things are OK again....my thoughts.
I've got the utmost respect for Rosies calls on fundamentals, but as a trader.....hmmmmmm. He was bearish from 666 to 1370 ; Missed that move. He's now turning bullish not on market fundamentals, but on Fed intervention.....hmmmmm. Rosies turning bullish - then I'm short !!
would you mind screaming that around here, at the top of your lungs, please, so that someone might hear you? rosie is not the second coming....gads.....some of these rosie worshipers are too much...
this statement explains everything that is wrong with the man
"This is someone who clearly sees the stock market as a transmission mechanism from Fed policy to the rest of the economy. "
the big problem pot on the stove for the Fed and Gov is
credibility..not the economy, or debt..the EU just laughed at Timmy and showed him the door (a 30 minute meeting was all they gave him)
folks the loss of confidence in the gov and fed's abilities to get this sagging world economy moving is at an all time low..
add charges of corruption and we may see finger pointing and worse which will further destroy the ability of the FED or Gov in USA to be effective..
gotta wonder how they can earn back the trust of the American people or the worlds with the ruination they are seen as responsible for??
Ben best have a closed meeting with no press release..as there is no answer under the current system of central banks and the fed
The NWO ideas have been shown to not work and to not work in very
profound ways as the living standards of the western world free fall.
I actually met one of Benjamin’s instructors at a symposium, I believe it was on increasing interment fees based on the cost of living, and he recounted the first time Ben spoke up in class.
The instructor had just chalked up Doolittle’s push-me pull-you paradox and was toweling his hands clean when he noticed Ben with his hand raised. And up out of that slouching, nattily dressed, unkempt haired, and dirty sandal footed group rose Benji B to add the most elegant but frightening white on black solution that instructor had seen. I remember him saying at the time, “That boy was the only student who ever scared me. I dreaded teaching that class and made damn sure I’d never have a class with him in it after that day.”
I smell a Rat.
Wow, a lot of comments.
This is all going to end in tears.
Destroy the savers to bail out the big bad bank loans.
Start world revolution to deflate debts by printing money.
I think Bernanke would look kind of cute hanging upside down with his whore du jour like Mussolini.
yea, what the heck re you doing Dr. Paul? you really should be using subpoena's to haul in a few crooked asses into house hearings. This kind of activity demonstrates leadership and would also help your campaign for another big leadership role. get into the game before it ends.
doh
I'm not an advocate of the Penus Project. In fact, I applaud their efforts in exposing the criminality of our system. It is now our job to fix the system to create prosperity within the United States of America. I have posted on two separate occasions, when the death spiral begins. Recently, a posting of the World Bank liquidity crisis was presented to you. Many loans reached there paid status at the end of July 2011. Without new loans, contraction occurs. Someone high on the food chain must muster up another massive disaster or war to keep the wheel greased.
Take seven minutes to visualize the next chain of events.
http://www.youtube.com/watch?v=uKgPlorGMh8&feature=related
Lastly, the Venus Project is a complete joke. Until all forms of labor are replaced by computers & robots, this utopian dream will never materialize. Furthermore, the population needs to return to a controlled level of 500,000,000 peeps in order to sustain continuity within the framework of this farce vision.
Carry on progs.. Have a good weekend.
How I love the great free market system of the USA!!
http://www.youtube.com/watch?v=Gp2BACDX6mk
i have always thought that the situation in chechnya was interesting as an example of what happens when a people want to be free and independent....the state tells you sure, go and be free, but they lie and then they go back on their word.....is there a moral to the story in there for us as amerikans to see? i think so... the goal is liberty and she is a precious commodity, but she must be bought and the price is very high....
Xray of Market Internals
Certainly supports theory of a big market move down
Here is the first market internal X-ray, taken with less than 1 mSievert exposure, and 5 seconds to digest.
Clearly, volatility has formed a bull flag, that means volatility likely to continue going up. However, I wouldn't be the farm on this Xray alone.
At the bottom is Hawaii Trading's custom Vix, we call it VOS (Volatility on Steroids). It is a volatility ratio, which we think is harder to "game", in other words, more likely to nail the truth.
http://oahutrading.blogspot.com/2011/09/xray-of-market-internals.html