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ROCKTOBERFEST here we come, B!tchez!
Dow rape to continue? I hope MS & BAC finally wave good-bye as it is long overdue.
be careful what you wish for. Paulson Fund owns a lot of bank stock.. If the banking sector cave, he'll be force to liquidate GLD to cover, and bring down other hedge funds with him.
gld down b buying opp
DJIA is now a Govt controlled number. Think BLS or CPI
keep cleaning out the excessive optimisim.
CNBC searching for that Canadian she-porter for a little spin on this...
CNBCialis as Peter Tchir so succinctly put it.
The Canuck Breck Girl while lovely, would explain this by saying investors are nervous because they dont think equities are backed by anything? Then she'd go to her second gig, modeling shoes.
Tyler,,,,Will OIL Fall hard....as it broke 80 today on nice volume........charts (to me) look like a retest of 60?
Deflationary spiral, Bitchez!
Not so fast.... To make a long story short about treasuires, gold, the Dollar and the Euro, visit my blog.
I think theyd love nothing more than to see commodities shoot higher, but no one can pay for higher prices, so inflation remains basically impossible.
"no one can pay for higher prices, so inflation remains basically impossible."
"no one can pay for higher prices, so inflation remains basically impossible."
Interesting quote. I agree with the part here that I quoted. Though in fact producers and manufacturers are paying higher prices, partially offset by lower labor costs (smaller workforces) and international money exchange. Producers are afraid to raise prices in this economy. Even if commodity prices are up because of cheap money given to speculative institutions, the producers are eating those input costs. If deflation comes, some producers will become predatory.
It is a little baffling that despite all the overpriting and overspending we are still at risk of deflation. I have held that the US has been able to run these deficits and print excess monies in large part because the rest of the world is growing too. Dollars are being stashed all over the world and now with the Euro in flux the appetite for dollars may be larger than many thought. The inflation people feared hasn't really materialized. The markets are up from 2008, but not much else is.
Of course, the problem is money velocity.
At risk of lots of red arrows, I will say all this: I suggest PMs as well as other commodities could ease dramatically in the coming months. Those long gold have been well rewarded, and may be well rewarded in the future. But between the past and that future may lay another buying opportunity - at least until QE3. And if there is QE3 it likely has to be so massive as to force those holding dollars to start spending and lending them. Possibly as large as $3 trillion, or even higher. To politically justify that kind of stimulus, markets have to plummet. If the FED had any brains, they would try to work it through congress in the form of "home loan adjustments" e.g. create a way for homeowners current on their mortgages to easily refinance in the low 4% range. At 2x the 30 year Treasury rate, 4% offers more than enough incentive considering that most of those who can't pay have already defaulted. This kind if stimulus will put money into the pockets of the people you are talking about. A $300,000 mortgagee will see his payments drop $250 a month or more (from 5% to 4$), while a $1 million note (think, California, New York homeowners) will drop around $1300 a month going from 6% to 4%. That's serious money to each respective cohort and everyone in between.
I know many here will lambaste this comment as just repeating the same madness, not fixing the real problem, etc etc. That may well be true. However, the system is the system is the system. It won't change itself. This is about as creative as it can get in the circumstance. We can fix the root of the problems later. Deflation will be an experience few living people have ever experienced and it will be very hard to get out of. Trickle down wont work. Massive injection of money at the bottom is what it will take, assuming we are going to experience deflation, which I would give odds on.
The second half of your post will never happen. The government doesn't give a crap about people not worth millions/billions. I know Obama has suggested similiar plans in the past, but the Republicans will never let legislation like this pass. Banks would get screwed on perfectly good loans, while middle class homeowners would receive a bailout.
If you are purposing that the government make up for the lack of mortgage interest, the banks will be missing out on, the debt ceiling would have to be raised again and we all know how that went last time. It's not time for the US government to take on more debt.
If you have money deflation is not that bad. You pay less and if you don't save your entire discretionary income you would purchase more products for less money. I'm already spending whatever money I no longer have to put into my gas tank as gas declines in price. Also I suggest buying food cheap that will stay good for years so when hyperinflation eventually hits, you'll have your food before TSHTF.
Yeah, inflation will remain elusive for years to come, given the weak labor market and declining wages. The public has finally in the last two years started scrambling to pay off debt and to save, all in anticipation of falling prices.
Right, I thought these EOM windows weren't properly dressed.
What now? Stampede into USD, crash equities and force the Bernank QE-inf.. hand?
Had my bin's out and let...me...tell...YOU--those window dressers were hiding some SERIOUSLY cheap furniture. I don't know about you but I was SHOCKED!
The drapes do not match the astroturf.
how much for the troll in the window?
If you have to ask...
US remains the best performer, Yes We Can. Hopium is still in effect. Once Occupy Wall St hits the rest of the country I'm pretty sure we'll manage to catch back down to the rest of the world
Volume was pathetic today. When are the going to sell this thing in earnest!
I dont know, but has to be sometime soon. Im not worried so much about an exact date, just getting the remote mountain cabin stocked as theres no doubt it IS coming.
The fun begins on Monday as Q4 begins. If they hope to let off some steam and then ramp things into the election, it has to be right friggin now.
This market will get sold when the institutionals throw in the towel on QE3. The pension funds are celebrating a recovery summer....just before the 3rd quarter train hits them. Amusing.
Agreed. Bernanke continues to speak to that effect as well.
check out these gold derivatives by jp morgue
'The leviathan JPM, uber bank of Rockefeller and Morgan, holds 80% of the gold derivatives in the world, with HSBC having the rest. HSBC was founded in the British colony of Hong Kong and is now headquartered at Canary Wharf London'
Great find, Jesse's been on the mark big time.
Buffett's gobbliing up stocks like he was in the fall of '08, too. It's not 2008' it's exactly like 2008. Expect another 30% decline from here unless the Inkjets makes those HP printers start singing soon.
if big ben doesnt start printing you are going to see oil at 30.
And gas will be...well right about where it is right now. Screw the consumer
You want gas? I got gas! ;-)
Five Alarm chili farts anyone? :-0
30? Never again. You can make margerin out of it.
Theres always the specter of this escalating war in the mid east with Iran next on deck to be 'liberated'...and all it would take is 1 carrier sunk in the Hormuz Straits to send oil right back to $140 overnite.
Israeli's goin all in on South Jeruselum while the US Ambassador is attacked in Syria doing anything but Ambassador work. Let's here it for war people!
this (today) is just end-of-the-month window dressing.
wait till October
I wonder how much of the last couple weeks' worth of action was Hedge Fund vs Hedge Fund. Think of it this way. You as d-bag successful HF is doing ok while cock-sucker is having double digit losses. You d-bag know that cock-sucker has to ramp at end of quarter if you want to live another day. D-bag does this, buys equities cock sucker owns back about two weeks ago. Ride it to the top as CS tries to survive. D-bag sells off (then shorts) over the last few days with profits and CS is now further underwater. Cock sucker has to liquidate in October. D-bag picks up the equities at bargain basement prices.
Gee I wonder why TSY's did so good...OH thats right, the FED is now buying them up by the boatload, betting that soon the New World Order plan will be a total success and free slave american labor will make their bonds good.
Its a bet I wouldnt take myself, but FED is 'all-in'.
Just one thing to say here.
THANK YOU Zero Hedge!
so then you are saying we should be buying emerging markets bitchez? [/straw snark]
Cool. I've set some limits that look insanely optimistic at the moment, wonder if any will get tripped.
The 1930s put everything into perspective mind you.
TZA @ 100?
Or are you buying?
Put yer crash helmets on.. Solid close below the 200dma.
For once on a Friday afternoon, I have to agree.
This ship is sunk.
The S&P will be lucky to stay above the 900s next week.
Remember the PPT was refunded in the debt cop-out. We bounce around 1100 for a while.
Huh? It's been that way for over a month.
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