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Jim Grant: "The Fed Owns The Stock Market"
The dulcet tones of Jim Grant provided much food for thought on Tom Keene's Bloomberg Radio show this morning. While the interest rate observer did not change his tack on the extreme experimentation of world's central banks, he did have some new perspective on the incredible moral hazard (or unintended consequence) that is being created. One of his main criticisms is the incredible arrogance and conceit of a central banking system that believes it can see the future and thwart things before they come to pass, as he notes "I blame the central bankers for confusing the black art of central planning with the traditional art of central banking". He fully expects more easing by the Fed and its friends as he awaits their response to this latest stumble in the markets but what is most evident to him is that "The Fed owns the stock market" since they have financially repressed all investors into risky assets they now have been forced to have a moral responsibility to keep us safe in those assets - incredibly! The Fed is more likely than not to intervene with still more money-printing in any effort to keep this bubble afloat. What Jim focuses on is the morality in economics and the current immoral policies that have very bad consequences.
Jim's discussion of the Fed begins around 6:05 and he dives into financial repression at the 9:44 mark
Keene And Grant by user5452365
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Bloody hell, is that guy trying to get censored from CNBS?
Luckily for the sheeple, it's just Bloomberg radio. Last I checked, Stern was still on, so Grant's secret is safe.
... ? ... Bloomberg has a radio show? ...
for those who don't know yet....
GOVERNMENT OWNS EVERYTHING
Well if they own my home, at least they could fix my leaky shower ... Drip,drip,drip
The subtext on this Jim Grant interview is that the Fed in now locked into some kind of moral responsibility.
Well, maybe that’s their thought, but if it is, then we are down to a good vs. evil proposition.
So, if you are for Fed policy then you are for financial repression and taking the people’s money and future productivity to reward failure and forcing people into the assets that suit your interests under a guise that this is in their interests. You are also for not allowing the market to determine price and to clear.
Therefore you are for financial slavery which is evil.
There can be no debate about this.
Your thoughts are the only thing that the government doesn't own .............. yet
A century of government schooling says you're wrong, statistically speaking.
Maybe they own yours ... but I can assure you ... they don't own mine
Check out fMRI and visual images. They can do a half ass job of knowing what you are looking at and what words you're thinking of.
CNBC let ECRI on.
They even let ECRI's Acuthan repeat his recession call (when they let him get a word in):
http://www.planbeconomics.com/2012/05/09/ecri%e2%80%99s-acuthan-are-we-heading-for-a-recession/
I had the drip once. Turns out the government can't fix it. Penicilin did.
Yes, but the Jews own the govt.
uh, right?
No the jews own gold and garments.
And I'll bet ol' Charlie Munger wishes he owned large ovens...
www.youtube.com/watch?v=XCXcQ1oBoo4
Yeah. Old farts get cold in August.
renters IMO
And despite all that Aldous, some people still blame our current predicament on "free market capitalism!"
Didn't free market capitalism generate the industrialists and other private sector so-and-sos who chartered the federal reserve. I mean-- people always say, "A central bank is a central plank of the communist manifesto... so the Federal Reserve is a communist socialist leftist liberal pinko commie institution..." and all this razzmatazz... But is was founded by big money. Who knows who was really there on Jekyll is. Rockefeller, JP Morgan, Jacob Schiff, Rothschild(s), Paul Warburg. These men were no bearded radicals and political strong men... They were businessmen who formed a cartel, not a central bank. Or at very least a hybrid of the two. And we know that the crash of 1907 was orchestrated or at least in part caused by Morgan flogging stories of bankruptcies-- this leads me to believe that private banks (today's BOA citi, JPM, and Goldman) are working with the FED. These banks I listed rose to the top because of free market capitalism. I'm not saying the government is any good, because it isn't and offers no solutions and wastes massive amounts of money (this is why I'm pretty convinced we are totally boned no matter what [and I support Ron Paul and his ideas, but am under no illusion-- he WILL NOT BE ELECTED]), but let's not act like the private sector gives us any freedom at all... It might have in the past, in 1776, before corporations took over and bought out the gov't... But now our planet is guided by a college of corporations. VP Cheney... VP Rockefeller... Obama's entire cabinet... does this not tell you al you need to know? Private and public have merged into one inseperable beast.
Most big business men are not free market capitalist. They may have been at some point, but after they get real big they would prefer not having to compete. They have the shear size that is required to deal with a monsterous government. This is why big government discourages small businesses; they can't hire specialist to lobby the government and battalions of lawyers, accountants and negotiators to deal with the gorilla's twitches.
It does seem like a moat:)
I don't think big government discourages small business-- I think small businesses can't compete with big businesses because they don't have the money to influence policy. If government discourages small business it is because of the corps that influence them and the businessmen-become-politicians who are IN the positions of power.
I don't think we are disagreeing. I mean that big government by it's very nature discourages small businesses. I've been on both sides; I've worked for the government and with it. A minor government functionary who acts in error is all it takes to put a small business in the hurt locker sometimes beyond recovery. I do know that defense contractors devote a sizable portion of their staff to negotiating with the gorilla. It's like the issue with all the 49 employee French companies; they are just unable to justify hiring 10 more people to hire the 50th one.
FWIW: my father ran a small business in the DC area and just flat out refused to do business with them. He had prior experience working for a large company that did work for the government.
Recession, depression, repression, repossession and so on until the funeral procession.
http://www.bloomberg.com/radio/
TV is online too - same people but different programming at different time of day.
http://www.bloomberg.com/tv/
Their radio feed is mildly amusing; if the market is in the red at all that day, they magically have a special guest on to talk about anything but the equity market for 2 hrs.
I used to watch some of their early-morning Aisan market coverage. Except for Monday mornings, that is. It wasn't quite as important as "Book Talk" (or whatever they called it). Nope, Asia could be in full meltdown mode, yet they're running the most boring hour on TV.
Perhaps Bloomie isn't allowed to compete against "60 Minutes?"
Up Arrow +1000.
Ha.
Yes he best be careful. The managers of the "Temple" don't like carpenters to come in and disrupt their money magic process.
That will get you nailed to a cross.
government owns the land the temple sits on, the education received by the carpenter, the road carpenter traveled to get to the temple, the house carpenter lives in, the schools carpenter's kids are in,.......even the forest where the cross material came from, government controls it.
That's why the richest of the rich when they made enough billions, they all try to get to the next best thing.....government power.
@ AlsousHuxley, "That's why the richest of the rich when they made enough billions, they all try to get to the next best thing.....government power."
Actually it's Total Complete Full Spectrum World Domination/Control NWO. Coporpate Control + Government Power = Fascism.
Those consequences are far from unintended.
Grant's right. But anyone who knows anything is well aware of this fact and is clearly more than happy to play along.
so btfd then?
"I blame the central bankers for confusing the black art of central planning with the traditional art of central banking".
That should all be in bolded red. That just nails it.
He acknowledges that there's an important role for a central bank...but also shows how they've just been swept away by hubris this time around and painted themselves -and us all- into a corner.
I disagree.
Central banking IS, by definition, "central planning".
There is NO moral, economic, or most of all monetary need for central banking!
Anyone buying into the banksters' self-serving lies and propaganda is just another victim of Stockholm Syndrome.
Centralized power is ALWAYS evil!
If it is centralized, can we bury them in concrete like Chernobyl?
You could try, but being the ultimate maggots, they can chew their way through almost every physical (and non-physical) impediment to their insatiable appetites.
To the guy with a hammer everything looks like a nail. And it's hard to keep driving the nail in when it's already flush with the board.
"The banksters own the stock market." There, I fixed it for him.
Yet some believe they cannot further expand their balance sheets to absorb even more tangible wealth secured by paper. To that I say: LOL, WUT?
Then I quote El-Erian: "Welcome to the new normal."
It breaks sooner or later, but trying to time it is more than I am worth.
@ Silver Dreamer,
The City of London where the Banksters reside own everything. Wall Street is just an extension of the City of London.
The TSX has been getting thrashed, but bounced back nicely today. Is the scared money starting to get the picture that Canada is the western worlds Great White Hope, or am I still too early on this one...
Peer
I would agree with you but I fear that the bank owned consortium who want to buy the TMX (TSX/TSXV) is A WRONG MOVE THEY ARE GOING TO DESTROY THE CANADIAN MARKETS DO NOT LET THE BANKS BUY THE FUCKIN STOCK EXCHANGE
Fuk it, let em buy. There is very little competition in Canadian industries so it won't be too hard to figure out where the money will go. The more they buy the more I make, with a few early bets that is.
PeeramidIdeologies
Bro, Canada has its own set of MAJOR leauge issues about to hit, their screwed too, but just behind the curve.
Ahhh but they are the best amoung the worst, and have everything the world needs. Fresh water, food, oil, metals, wood, cheap land with lots of development potential. Pretty decent infrastucture as well... The only downside is the neighbors and their cheap money. And winter. Attractive after a global shakedown? I think so...
Duh, do you think???
Stock and bond markets now fully MONETIZED, owned outright by the global central banksters. What comes next is not nice, I guarantee that.
"Hot rice," you say? Lucky me, my bowl's about empty.
Keep your stops in bubba.
I have a man crush on Jim Grant.
Well, they sure don't own much. Notice the volume is still in the toilet and getting worse.
Right! But see the thing with monetization is the PRICE doesnt matter, just OWNERSHIP!
Oh, now I understand, like all the people here that own gold paper.
There are no central bankers here, monetizing the deed to the nation for free....no idea how you figure 'paper gold' equals anything. If you cant figure out what has been going on is printing free money to buy all the stocks and bonds for themselves, and that the ownership is all that counts then I dont know what to tell you.
sorry, I forgot the "/sarc"
You don't say.... Cupie Doll for the dweeb in specs and bowtie!
As least Senor Dweeb gets this, as he simply cannot wrap his egg-shaped head around gold suppression.... even now.
Silly twat.
Just another day at the Fed. Control-P enter.
"The Fed owns the stock market" since they have financially repressed all investors into risky assets they now have been forced to have a moral responsibility to keep us safe in those assets - incredibly! The Fed is more likely than not to intervene with still more money-printing in any effort to keep this bubble afloat."
Yea, that worked out real fucking well for the fed created housing bubble didn't it.
Worked out pretty damn well for the bank executives.
Didn't it?
Actually, their attempts to drive all investors back into the markets have been a huge failure. The individual investor is still sitting on the sidelines, scarred to death to get back in. I know I am. I believe the average small investor has zero faith in this market. there may be a Benake put, but who knows when it will be pulled....or blow up. Even stops are not safe in a mass exodus, and algos pick off all the tight stops anyway. The message from the choir is a loud collective "screw it".
What makes you think that they want people in the market. They'd love to have you invest in treasuries.
Booboo yea its ridiculous, people still believe the Fed's purpose is to make sure their stock portfolios remain pumped up. Man a lot of people are going to get eviscerated real soon they dont see shit coming at all.
It sure did, that fed-created housing bubble saved us from the burst fed-created tech bubble which saved us from...
Oh, wait.
Maybe it's time to move. Many people in Europe saw the Jews go and never come back but did nothing. All the people who know the Fed is destroying the global economy ought to act. If you have access to the media, say it loud and clear and support Ron Paul. End the Fed.
As long as the free gold for dollars give away is being sponsored by the clowns in the US government and banking system, I will stay and load up. After they wise up, I will leave. I don't think anyone is going to want to be here when the Gov is forced to back all the dollars in circulation with the 3 ounces of gold they still have in Ft Knox.
I can see an unfortunate and abrupt accident in his future along with the kiddie porn they find on his computer.
Sad. Really.
I wouldn't bet that anyone in government or the Federal Reserve shares Jim's view on their "moral responsibility." As we said about Hurricane Katrina, if you are waiting for the government to save you, you're already dead.
No shit. And look around, EVERYONE expects the 'govt' to save them in one way or another whether its food stamps, unemployment check, or bailout, everyone sits assured they will surely be saved.
don't forget those college kiddies that are drowning in debt.
CB
and also disability....heck...who's working?
Remember when those of us that said for years that all markets (esp. the stock) were rigged by the fed and their primary dealers? We were called "tin-hat-wearing-conspiracy nuts".....good to see even the MSM hinting at the truth now, albeit ever so rarely.
Are tin foil hats any good against drones?
no doubt this is no longer a market...heck....APPL is green today....lets see...PM's or APPL....think I will stack some more.
The Fed only cares about stocks if banks own them. If banks did not own stocks, the Fed would pull the rug out faster than you can clap your hands twice to turn out your lights.
That was a clapper reference BTW.
How about the " ... moral responsibility to keep us safe in those assets" ...
Huh?
Choked just a bit on that one.
These are not the Central Planners I am familiar with.
Agree. Market is totally captured by The Fed.
PLEASE WATCH! SOMETHING EVERY TAX PAYING US CITIZEN SHOULD KNOW. THIS WILL BLOW YOUR MIND!
http://www.wthr.com/video?clipId=7054149&autostart=true
You need look no further than AIG and Maiden Lane sales that were dying when word hit the street that if you would take the pig, you'd get a shot at Facebook early so that you could have something to sell to the suckers,... ah hem, public at its inflated value and make back your losses on AIG and Maiden Lane. That is how the FED & their 2B2Fail Banksta owners package that, and that is a fact based upon 1st hand knowledge from the players. So you damn skippy the FED owns and operates equities, and damn near everything else. Time for la revolucion', yes? See www.nar2012.com Serfs Up America!!!
So you are saying that if Facebook IPO gets delayed or cancelled, Wall Street will implode? I think that kid running Facebook should take them all for a long ride.
You forgot that JEWISH kid taking them for a ride.
"moral responsibility" ha ha ha good laugh there.
And banks own the FED.
Or the banks IS the Fed....however you want to look at it still the same mess.
Bernankes very own reverse massage, double touch (penis and anus) to equity markets.
he had a classic quote
Treasuries "return free risk"
The "Great Repression".
Sounds familiar some how.
It should sound familiar. http://www.imf.org/external/np/seminars/eng/2011/res2/pdf/crbs.pdf
Hard times- all the acknowledgments now.
Fake markets
Fake statistics
Elections?
PPT
Currencies printed
States/munis/TBTFs
Time to buy-off the entire crowd.
"Immorality" of the Fed (e.g. Granny's cat food). You don't hear that often enough. If only our patriot congressmen (RP and a few others) would wave that banner high, maybe the zombie sheep would listen. Hell, maybe even Granny would listen. Poor thing probably doesn't even realize why she's suffering.
If anyone knows Jim Grant's private office number you better give him a heads up to start burning his paper and computer files. It looks like 3 swat teams just converged on his building. Two on the ground floor checking their gear and another is just setting down on the roof.
HURRY!!!!!!!!!
Grant's been at it for quite a while: here's to his continued good health!
Mr. Market Miscalculates: The Bubble Years and Beyond [Hardcover]James Grant
(Editor)
http://www.amazon.com/Mr-Market-Miscalculates-Bubble-Beyond/dp/1604190086/ref=sr_1_1?ie=UTF8&qid=1336586023&sr=8-1
Europe is closed and like clockwork, US equities turn green. Congratulations Ben, you saved us again. They will open tomorrow so have CTRL+P on standby.
dup
Thanks Jim, but at least tell us something WE DID NOT know.
jim grant is but a modern, mythological Cheshire cat preaching from a Cassandra's limb -- showering the non-sequitur below, teetering, and confused on a circled chessboard with reason for doubt -- unfortunately, the audience is deaf, dumb, and with blinder's on inhaling the euphoric caterpillar fumes - protecting their myopic eyesight from the blinding, and so illuminating,'cassandra's feline smile' -- whence, the path they chose was coarse`d with shards of fool's gold. http://www.youtube.com/watch?v=WANNqr-vcx0
Is pesudo that new common currency of Spain and Portugal?
They have the most beautifultheory because it's flawed enough that they can always say we didn't print enough
OT, but here is who owns the Occupy movements............and why their being pushed.Anyone with half a brain should figure that out.
http://washingtonexaminer.com/local/dc-news/2012/05/union-obama-ties-rents-offices-occupy-dc/588636
the fed owns all the usa.
http://expose2.wordpress.com