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Steinhardt On The Fed's Failure And The End Of Wall Street As We Know It

Tyler Durden's picture


The low interest rate 'logic' is not working and "the economy can't gain any zest, can't gain any vigor" is how Michael Steinhardt describes the crushing of 'widows and orphans' that the Fed has embarked upon. In a Bloomberg TV interview, the WisdomTree chairman notes the broad 'pall' over the equity markets (conjuring images of a funereal procession down Trinity Street) pointing out that there is no reason to be wildly bullish here. Citing Wall Street's lack of 'spirit', he questions the entire raison d'etre of efficient capital transfer as becoming secondary as he rather poignantly asks who has benefited from Fed's policies "Certainly the banks. But ordinarily you'd say, well, low interest rates benefit housing. It certainly hasn't benefited housing." Reflecting on his performance as a hedge fund manager he concludes that extraordinary performance is sadly not necessary anymore as the money flowing into hedge funds means people do exceptionally well for themselves despite diminished performance. While finding equities broadly unappealing, and suggesting talk of QE3 should cease, he notes there are pockets he would invest in but ends by noting that "Bonds are no place to be".


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Fri, 04/13/2012 - 10:29 | 2341502 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The Fed is doomed between a rock and a hard place, bitchez!

They have to wait for stocks to fall, to create a panic so that the Muppets think they need QE to liquidate finance, yet if stocks fall, it shows that the intervention really only has a half life and recovery is not sustainable, because artificial liquidity does not equal growth.

Fri, 04/13/2012 - 10:30 | 2341525 Henry Chinaski
Henry Chinaski's picture

Time to go to Plan B.

Wait, there is no Plan B.

Fri, 04/13/2012 - 10:37 | 2341546 john39
john39's picture

sure there is.  the collapse has been engineered from the beginning.  it is plan A.  they are sitting on the next stage until the time is right...   digital fiat, maybe a regional or world currency, with supranational central banks...  they want to take the ponzi to a level where it can never be stopped.

Fri, 04/13/2012 - 11:03 | 2341657 trembo slice
trembo slice's picture

So there's still no plan B...

Fri, 04/13/2012 - 11:27 | 2341757 john39
john39's picture

technically, no...  they are sticking with plan A...  there is no turning back.

Fri, 04/13/2012 - 12:02 | 2341886 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I like that you are thinking like the enemy, problem is, the enemy are a bunch of idiots.  No one wants fiat anyore; it has no intrinsic value - money is suppossed to be an asset, but fiat loses value steadily over time due to inflation, making it a liability.  No one wants fiat and fiat has no value; these two facts combine to mean that fiat stands no chance at holding the system together.  The Fiat Ponzi will fail, and the freams of the NWO with it.

Fri, 04/13/2012 - 17:34 | 2342793 e2thex
e2thex's picture

All that's missing is his declaration: "I'm a 'umble man, I am."

Turning the clock back two decdaes, his trading desk eat "orphans and widows" alive.

Fri, 04/13/2012 - 18:16 | 2342861 TruthInSunshine
TruthInSunshine's picture

The successor to the Non-Federal Reserve-less Non-Bank has already been crafted, and has been kept in the wings, ready to be wheeled out when the time is right (i.e. soon).

It will have a very patriotic sounding name, like The American National Monetary & Financial Policy Oversight Board, or something similar, and it will be marketed as an entity whose mission is to ensure zee price stability, prevent taxpayer losses & pursue the best interests of the American Citizenry as a whole, while doing the exact same things for the exact same global bosses that control things now.

Fri, 04/13/2012 - 18:25 | 2342881 Widowmaker
Widowmaker's picture

Don't forget a triple-mandate of some sort that is dripping with conflicts of interest or false dichotomy.

These fucks have to be able to "not see it coming" whenever they want as a requirement.

Fri, 04/13/2012 - 20:27 | 2343060 AldousHuxley
AldousHuxley's picture

At least Bernanke is not a crazy Mofo like Steinhardt.


Take Back Zionism (WTF?) Launch Party

Michael Steinhardt Co-founder, Taglit-Birthright Israel and Chair to Birthright Israel Alumni Community speaks to Birthright Israel alumni at Take Back Zionism Launch Party.

During his speech he offers a free honeymoon to anyone who meets at the event and plans to marry within the year. Catch is you must be Jewish to go on that trip and to be qualified.


Sounds more like racial supremacist cult leader attempting a mass wedding.

Gives Mormon, INC. Romney a run for his cult offering.

Fri, 04/13/2012 - 23:02 | 2343192 Element
Element's picture



"It is unacceptable to hold the aspirations of an entire people hostage to the greed and paranoia of bankrupt regimes."


- President Obama, in India, Nov 8 2010.


Before you get too perplexed, he wasn't referring to Israel or USSA, but to Burma.

Fri, 04/13/2012 - 22:58 | 2343194 markmotive
Fri, 04/13/2012 - 21:58 | 2343148 boogerbently
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Increase rates, anyone buying a house because of "rates" has done so. Advanced notice of rate change will inspire a round of home buying.

Increased rates will help "savers". Most savers afraid of stock market anyway, higher rates better for banks.....we'll need to give/print them less.

Fri, 04/13/2012 - 22:17 | 2343163 AldousHuxley
AldousHuxley's picture

too bad bad borrowers and bad lenders just got another bailout as part of foreclosure settlement....


Bank of america home owners will get an average of $100,000k tax free debt reduction!!!


Fri, 04/13/2012 - 23:20 | 2343205 ChrisFromMorningside
ChrisFromMorningside's picture

IMF SDR's for sovereigns / public financing.

Digital fiat for the serfs. No more paper, just plastic cards.

Tobin Tax paid to IMF/World Bank.

Global "carbon taxes" paid to Rothschilds/Al Gore/JP Morgan, etc on a per capita basis.

Bombs and CIA dungeons for those rebels who keep physical gold/silver or for those countries who resist the new globalist hegemony (i.e. Russia, "rogue states" like DPRK, states that accept gold like Iran/Libya, etc).

^That is their Plan A. 

Plan B? World War III stretching from central Africa through northern Africa into the Mideast and up through Iran into Central Asia. Proxy forces funded by U.S./U.K./Israel on one side versus Russia, Iran, aforementioned states that resists hegemony and MAYBE China (depending on how the political situation their develops).

Plan C? Detonate nukes in false flag terror attacks in the U.S. and Europe. Globalists retreat into bunkers while the rest of the world chokes to death on fallout. 

Pick your poison.


Fri, 04/13/2012 - 17:46 | 2342808 AldousHuxley
AldousHuxley's picture

Typical American Jewish Zionist hack...made money ole Jewish way of donating $100+M to ONLY Jews.

Widows needing to earn money on dividens is bullshit. Odlies at least have pensions.  

He hates American youth because they are not Jewish enough or not Jewish at all.

He wants young American families unemployed so that his can make more money shifting money around.


Michael Steinhardt Co-founder, Taglit-Birthright Israel and Chair to Birthright Israel Alumni Community speaks to Birthright Israel alumni at Take Back Zionism Launch Party.




Free trip to Israel if you are a Jew. If you are goyim American, he says fuck you you don't even deserve a job.

Fri, 04/13/2012 - 18:05 | 2342841 Capitalist87
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Mad anti-semetic goyim on the loose!!

Fri, 04/13/2012 - 18:40 | 2342914 AldousHuxley
AldousHuxley's picture

"Of course, it is impossible to prove that you are not an anti-semite"


"So many people are suffering, and you want me to get excited about some idiot painting a swastika somewhere?" - professor whose parents died in holocaust


Zionist Jews living in America = hypocrites who love MONEY over Israel and America


Go see this BANNED movie:


Chessmaster Bobby Fisher (Jewish himself) on Zionazis:


Sucks for good innocent Jews for bankster shylock types have built up huge backlash in the minds of the world.

Admit the error of Zionist ways.



Fri, 04/13/2012 - 19:05 | 2342956 whstlblwr
whstlblwr's picture

You must be a zionist because this kind of racist discrimination is exactly why zionists justify their nationalism.

Fri, 04/13/2012 - 19:20 | 2342978 AldousHuxley
AldousHuxley's picture

what are you talking about?

Judaism is a religion, but there are black jews too. Zionists love claiming anyone powerful successful as "Jewish".

TRUE zionists are living in Israel. The real nationalists don't live in a foreign country like US.


As the zionist grandma says, "what are the american zionists doing in America? waiting for Hitler to kill them?"


Zionazi = American Jewish Zionists who falsely accuse anti-semitism on those who real the truth about their dirty secrets.





Fri, 04/13/2012 - 23:48 | 2343233 ChrisFromMorningside
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The Jewish people are being used by the financiers of the West. Look at the Israeli populace. Last September there were 400,000+ person protests in Israel demanding social justice and, essentially, inflation control (in the protestors own words, an end to increasingly high prices, especially for housing). This despite the fact that the U.S. pours BILLIONS of dollars into the Israeli economy on an annual basis (keep in mind that Israel is a country of less than 8 million)

Western financiers built the first parasitical city-states in medieval coastal Italy. Then they moved on and created the parasitical city-state-within-a-state of the City of London. They used the City to transform Britain from the home of the Magna Carta, personal liberty and the scientific Enlightenment into a global parasitical empire that amassed enormous wealth by becoming a global tax authority, looting the Third World and imposing mercantilist limits on free overseas trade. Then they built Wall Street and transformed the U.S. in the same fashion. The U.S. was once one of the most "minarchist" nations on the planet, with strong protections for free enterprise and personal liberty, and a violent hatred of aristocracy and bureaucracy. In Wall Street's America, the rights of the domestic population are secondary (if not tertiary or worse). Domestic law in general is an afterthought. The federal government is now a shell corporation being used by a rotating cast of financiers to plunder the rest of the world. 

Israel is a 20th century project in the same fashion. It was built by the same financier elites and their sponsors, the aristocratic families of Europe. Israel was built to be a giant military base (think Airstrip One). It exists so they can stake their claim to the petro-resources of the Mideast/Western Asia/Central Asia. It is a Forward Operating Base for Wall Street/the City of London. Once again, the interests of the domestic populace are an afterthought. Israel's ability to secure Wall St/CoL access to the region's resources is the primary purpose, which is why most of the billions in "aid" go into the military-industrial complex while the domestic Jewish population suffers.

Fri, 04/13/2012 - 19:14 | 2342971 LasVegasDave
LasVegasDave's picture

Steinhardt is 100X the man that you are, loser.

All you got is Jew hatred.

What a pathetic piece of shit.



Fri, 04/13/2012 - 19:26 | 2342986 AldousHuxley
AldousHuxley's picture

why not hate the zionazis like Steinhardt who ONLY support zionists and is spending millions on brainwashing Jewish kids to become the next Hitler youth.


calling me a loser make you insecure and immature.


All you got is "anti-semitism", "Jew hate".....


Do you know why bankster wannbe elite Jews practice apartheid and brainwash other Jews into false zionism?

because they are so jealous of Arab's lucky oil wealth that's worth more than all of Bernanke paper bucks combined....



Fri, 04/13/2012 - 19:49 | 2343016 LasVegasDave
LasVegasDave's picture

why not respect a fellow human being for making a lawful success out of himself?

oh yeah, because he's a Jew.

All you got is hate and jealousy


Fri, 04/13/2012 - 19:59 | 2343023 AldousHuxley
AldousHuxley's picture

Your fellow human being Hitler was wildly successful in Germany.

Can Jews respect that?


That's where Jews don't understand. Money alone won't get you respect. but time and time again, Jews only go for money, then use money for power, they abuse it, then act like victims when masses uprise. When masses uprise, then people like you and I get the suffering because elites run away to another country.


All jews got is money and everyone learns sooner or later, you don't become super rich without skirting the law.


Fri, 04/13/2012 - 20:13 | 2343040 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What's with them Jews Lehman and Bear getting thrown under the bus?

Fri, 04/13/2012 - 20:23 | 2343055 AldousHuxley
AldousHuxley's picture

Harvard MBA JD Jews don't like the lower status NYU or Duke Jews....

Fri, 04/13/2012 - 20:33 | 2343065 nmewn
nmewn's picture

So they have no allegiance to lower class Jooos? Man you've really thought this one 

Fri, 04/13/2012 - 21:01 | 2343101 AldousHuxley
AldousHuxley's picture

do you think top 0.1% zionazis give a shit about 99% of jews?

You mean Rothschilds who sent their kids abroad to expand their banking empire cares about other Jews' kids? These are sickos who lie, cheat, sell out their own kind for one thing They are USING zionism as a racist cause.


sounds like you haven't thought much at all.


Young Jews are waking up: Occupy Birthright Israel....Jewish 99% themselves are calling these programs racist after their experience. They are brainwashed into thinking how everyone else hates Jews so it is ok to hate, cheat, kill non-Jews.


but of course, zionazis can't use "anti-semitism" against their own young Jews, so they came up with "self-hating Jews" who are opposed to zionism.

But what about Israel herself? you can't call anti-zionist on Jews who are actually living in Israel....well 300,000 Israelis realized what zionism, banksterism, nationalism, and all that is about..... it is about making top 0.1% richer on the suffering of everyone else.



Fri, 04/13/2012 - 21:11 | 2343110 nmewn
nmewn's picture



What its like to go completely insane.

Fri, 04/13/2012 - 21:44 | 2343138 AldousHuxley
AldousHuxley's picture



do you think Dr. Norman Finkelstein sanity amongst the brainwashed masses?


as the son of Holocaust survivors, felt about Israel’s operation in Gaza, Finkelstein stated:

I think Israel, as a number of commentators pointed out, is becoming an insane state. And we have to be honest about that. While the rest of the world wants peace, Europe wants peace, the US wants peace, but this state wants war, war and war. In the first week of the massacres, there were reports in the Israeli press that Israel did not want to put all its ground forces in Gaza because it was preparing attacks on Iran. Then there were reports it was planning attacks on Lebanon. It is a lunatic state.

Fri, 04/13/2012 - 22:01 | 2343152 nmewn
nmewn's picture

"...there were reports in the Israeli press that Israel did not want to put all its ground forces in Gaza because it was preparing attacks on Iran."

lol...(because I have nothing better to do) whats your estimate of the "march of their ground forces" to get to Iran? You thinkin (like Finklestein apparently) Jordan or Syria or Iraq or Turkey or Saudi Arabia would just let them cruise right on through?

Way to divert the thread though.


Fri, 04/13/2012 - 19:06 | 2342959 FreeSlave
FreeSlave's picture


Michael Steinhardt is ZIONIST Jew

Here is a link for those NON believers:

Michael H. Steinhardt (born December 7, 1940) is an American investor and philanthropist active in Jewish causes.

At the end of the page he is listed as Zionist. He was, and is part of our problems.

Fri, 04/13/2012 - 20:16 | 2343044 Sam Clemons
Sam Clemons's picture

Yes, I see George Soros, one of the big advocators of worldwide governance and fiat is starting to ridicule those that point out its errs.  These morons are losing on their life long goal.  Must suck to have all the fiat in the world and still fail at what they wanted to do more than anything.

Fri, 04/13/2012 - 20:24 | 2343057 AldousHuxley
AldousHuxley's picture

Soros isn't trying to force American Jews to marry each other after brainwashing in Israel like this cult leader.


Take Back Zionism (WTF?) Launch Party

Michael Steinhardt Co-founder, Taglit-Birthright Israel and Chair to Birthright Israel Alumni Community speaks to Birthright Israel alumni at Take Back Zionism Launch Party.

During his speech he offers a free honeymoon to anyone who meets at the event and plans to marry within the year. Catch is you must be Jewish to go on that trip and to be qualified.


Sounds more like racial supremacist cult leader attempting a mass wedding.


But the WASP version of this is Mormon, Inc.

Fri, 04/13/2012 - 17:56 | 2342822 tmosley
tmosley's picture

Plan B is is Plan A, except that this time will B different.

Fri, 04/13/2012 - 19:41 | 2343008 max2205
max2205's picture

Funny. 3 weeks ago it was all go go go

Now it's bail bail bail


Fri, 04/13/2012 - 21:58 | 2343147 AldousHuxley
AldousHuxley's picture

$26,000,000,000 forclosure settlement (aka. another bankster bailout) got the green light this week.


Fri, 04/13/2012 - 11:04 | 2341662 Pladizow
Pladizow's picture

Thanks for nothing Grandpa!

Fri, 04/13/2012 - 20:20 | 2343052 TWSceptic
TWSceptic's picture

Yes and according to Barroso anyone who dares to talk about plan B wants plan A to fail. 

Fri, 04/13/2012 - 22:01 | 2343153 Incubus
Incubus's picture

us americans don't do plan B.



Fri, 04/13/2012 - 22:54 | 2343190 FreeSlave
FreeSlave's picture

How do you like a 1% TAX on every banking transaction (Check or Direct Deposit) starting January 1, 2013…?

H.R. 4646



1% chg. on SS checks starting Jan 1, 2013 (see HR4646)


I am sending this to all my contacts that I am pretty sure are drawing a  government retirement, or social security retirement…

please read and inform your congressman you  DO NOT want  this to pass…


For those receiving Social Security benefits or soon will be:






Subject: HR 4646

Be sure to read entire explanation

Watch for this AFTER November elections; remember this BEFORE you VOTE, in case you think Obama is looking out for your best interest.

A 1% tax on all bank transactions is what HR 4646 calls for.

Do you receive a paycheck, or a retirement check from Social Security or a pension fund and have it direct deposit??

Well guess what ... It  looks as if government wants to tax it 1% !!!

This bill was put forth by Rep. Chaka Fattah (D-PA).

YES, that is 1% tax on all bank transactions - HR 4646, every time it goes in and every time money goes out.

Ask your congressperson to vote NO.



1% tax on all bank transactions ~ HR 4646 - ANOTHER NEW OBAMA TAX SLIPPED IN WHILE WE WERE ASLEEP. Checked this on snopes, it's true! Check it out yourself ~ HR 4646.

President Obama's finance team is recommending a one percent (1%) transaction fee (TAX). Obama's plan is to sneak it in after the November elections to keep it under the radar.

This is a 1% tax on all transactions at any financial institution - banks, credit unions, savings and loans, etc. Any deposit you make, or even a transfer within your own bank from one account to another, will have a 1% tax  charged.

If your paycheck or your Social Security or whatever is direct deposit, it will get a 1% tax charged for the transaction.

If your paycheck is $1000, then you will pay Obama $10 just for the privilege of depositing your paycheck in your bank. Even if you hand carry your paycheck or any check in to your bank for a deposit, 1% tax will be charged.

You receive a $5,000 stock dividend from your broker, Obama takes $50 just to allow you to deposit that check in the bank.

If you take $1,000 cash to deposit at your bank, 1% tax will be charged.

Mind you, this is from the man who promised that, if you make under $250,000 per year, you will not see one penny of new tax.

Keep your eyes and ears open, you will be amazed at what you learn about this guy's under-the-table moves to increase the number of ways you are taxed.

Oh, and by  the way, if you receive a refund from the IRS next year and you have it direct deposited or you walk in to deposit that check, you guessed it. You will pay a 1% charge of that money just for putting it in your bank.

Remember, any money, cash, check or whatever, no matter where it came from, you will pay a 1% fee if you put it in the bank.

Some will say, oh well, it's just 1%. Are you kidding me? It's a 1% tax increase across the board. Remember, once the tax is there, they can also raise it at will. And if anyone protests, they will just say, "Oh, that's not really a tax, it's a user fee"!

Think this is no big deal? Go back and look at the transactions you made from last year's banking statements. Then add the total of all those transactions and deduct 1%. Still think it's no big deal?

Fri, 04/13/2012 - 10:31 | 2341528 Silver Dreamer
Silver Dreamer's picture

Although I agree that it is, what will replace it will be far worse.  The cartel of bankers isn't going anyway.  It may change its appearance, but the control it wields will continue to grow.

Fri, 04/13/2012 - 18:33 | 2342899 Ima anal sphincter
Ima anal sphincter's picture

Au contraire, "if" the people finally have the gonads to stop this, the nightmare will end. The groundswell of folks finally understanding the BIG picture is growing. If these fucks keep pushing....the spring-back will be hell.

Fri, 04/13/2012 - 23:36 | 2343220 cranky-old-geezer
cranky-old-geezer's picture



If these fucks keep pushing....the spring-back will be hell.

Nope, don't think so.

Those "fucks" have been looting the American people for 100 years now, no one has done anything to stop it, and there's no evidence anyone will do anything to stop it.

Most Americans feel powerless to change what the federal government is doing, and they're right. 

The ONLY thing that would change the federal govt now is a military coup.  Military seizing control of the govt, putting all the top people in military prison, dissolving the federal govt (to terminate all the treaties, laws, and contracts), then starting a new govt. 

There's NO WAY the civilian population can do that.

Fri, 04/13/2012 - 10:42 | 2341549 Dr. Engali
Dr. Engali's picture

The fed is doomed. question is they make it to their charter ends? It's funny that their charter ends about the same time the dollar has been devalued 100%.

Fri, 04/13/2012 - 10:55 | 2341587 TruthInSunshine
TruthInSunshine's picture

There is no 'charter end.'

The Federal Reserve Act of 1913 was amended to state that the Federal Reserve will be dissolved only by an affirmative act of Congress. All references to a time-limited lifespan were repealed.


To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.


12 USC 341 - Sec. 341. General enumeration of powers - U.S. Code - Title 12: Banks and Banking
Fri, 04/13/2012 - 11:03 | 2341658 Dr. Engali
Dr. Engali's picture

Good to know. Thanks

Fri, 04/13/2012 - 11:14 | 2341703 Kali
Kali's picture

forfeiture of franchise for violation of law

Thou shalt not debase the currency under penalty of death.  Hasn't the Fed already broke laws, numerous times?

Fri, 04/13/2012 - 12:44 | 2342038 Troll Magnet
Troll Magnet's picture

no, because laws are for poor saps like you and me.  the fed and their buddies are all above the law.  they're doing god's work, you know...

Fri, 04/13/2012 - 13:12 | 2342128 The Gooch
The Gooch's picture

It even says so on their green asswipe!

Fri, 04/13/2012 - 17:35 | 2342792 Escrava Isaura
Escrava Isaura's picture

Troll, that was great [and very funny].

Fri, 04/13/2012 - 22:07 | 2343158 boogerbently
boogerbently's picture

....and if you see the courts decisions regarding these "white collar" criminals, what they did wasn't technically illegal (like giving bailout $$$ as bonuses), because the bank's employees (congress) write the laws that way. We COULD do what they do, we just aren't in a position to do it.

After it became public knowledge of congress
 on insider information, they made a BIG spectacle of drafting and passing the STOCK ACT. This was suppsed to end this practice. It wa swritten in such a way that NOTHING changes......but we KNOW they passed the STOCK ACT, and ASSUME it ended the practice.


Don't vote for even one incumbent.

Fri, 04/13/2012 - 18:28 | 2342888 Widowmaker
Widowmaker's picture

Laws are for people, not corporations.

Law is the least of the Fed's problems.

Fri, 04/13/2012 - 22:10 | 2343160 boogerbently
boogerbently's picture

That's redundant....or oxymoronic ?!?!?

Corporations ARE people.....Supreme Court decided.

Fri, 04/13/2012 - 23:07 | 2343197 Milestones
Milestones's picture

I did not know of this. M.F. idiots--as bad as the congress and WILSON SIGNING THIS PIECE OF ILLEGAL LEGISLATION. There is no alternative to armed reaction. What a country of intellectual cowards.                Milestones

Fri, 04/13/2012 - 10:51 | 2341599 francis_sawyer
francis_sawyer's picture

 "Michael Steinhardt describes the crushing of 'widows and orphans' that the Fed has embarked upon.."


Arguably ~ It's the "orphans & widows" (or otherwise, elderly age population demographics) that have the best chances for disposable income... If one believes in that notion, & if one further believes that the politicians would like to 'SAVE' the economy through consumerism... Then the Fed has it ass backwards by making the most free spending part of the economy fearful & wanting to put the clasp on their purses...


Fri, 04/13/2012 - 11:12 | 2341698 crawldaddy
crawldaddy's picture

its also about the fact that there is no place to get a safe conservative return anymore. It's gamble in the congame which is the stock market or the 0% of the mattress, Thats our two choices.  Problem is the FED can NEVER allow yields to rise back to the historical norms as the debt load would simply crush govts.

So we are in this slow death spiral with no safe place to put money. Granted PPMs might be a hedge against armegedon, but its not the easiest investment choice for a fixed income elderly couple, they are worried about getting a decent return next month.

Fri, 04/13/2012 - 11:57 | 2341868 francis_sawyer
francis_sawyer's picture

Past 20 years = return ON capital

Now + near future = return OF capital (assuming it's not already in food, guns, ammo, land, PM's & tools)

Fri, 04/13/2012 - 14:06 | 2342338 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Q: Why did they name it "Wall Street"?

A: Because "Fuck You" was already taken

Fri, 04/13/2012 - 17:04 | 2342750 NotApplicable
NotApplicable's picture

I'm stealing that line!

Fri, 04/13/2012 - 20:06 | 2343029 AldousHuxley
AldousHuxley's picture

A: So that they can screw over "Main Street"


Fri, 04/13/2012 - 20:22 | 2343054 TWSceptic
TWSceptic's picture

You shouldn't point your anger to Wall Street. You should point it to 1600 Pennsylvania Avenue.

Fri, 04/13/2012 - 12:09 | 2341919 Oracle of Kypseli
Oracle of Kypseli's picture

His reference to "widows and orphans" expression must be used as often as possible to embarass Bernanke.

But it appears that he neither has feelings nor he cares. The media should adopt that powerful expression.


Fri, 04/13/2012 - 20:19 | 2343043 AldousHuxley
AldousHuxley's picture

he only cares about Jewish widows and orphans becuase he is a Jewish supremacist aka zionist.


If he so cares, why doesn't he donate some of his own money to help out widows and orphans?


He  founded Taglit-Birthright Israel, which has to date sent over 220,000 young Jews aged 18–26 on a 10-day trip to Israel, absolutely free.


In his autobiography, he identifies himself as an atheist who nonetheless strongly supports cultural Jewish identity.


So doesnt' care about judaism, but cares about brainwashing kids of certain background to only marry within certain race?


Do you want this guy's "culture" imposed on your family?


Steinhardt wrote a letter to President Clinton advocating the pardon of Marc Rich, calling him "my friend...who has been punished enough" (on January 20, 2001, Clinton's last day in office, Rich was in fact pardoned.


Steinhardt was an early promoter of the possible presidential candidacy of Michael Bloomberg in 2008.


Take Back Zionism (WTF?) Launch Party

Michael Steinhardt Co-founder, Taglit-Birthright Israel and Chair to Birthright Israel Alumni Community speaks to Birthright Israel alumni at Take Back Zionism Launch Party.

During his speech he offers a free honeymoon to anyone who meets at the event and plans to marry within the year. Catch is you must be Jewish to go on that trip and to be qualified.


Sounds more like racial supremacist cult leader attempting a mass wedding.

Fri, 04/13/2012 - 20:39 | 2343072 smb12321
smb12321's picture

But why such a morbid, intense obsession with a group that has little chance of expanding and make up such a tiny fraction of humanity?   Even if a group of Jews claimed superiority (like the Han, Germans, Brahmans or Japanese) and wanted a homeland, what possible revelance is it to you?  It's like the riots in Malaysia or Nigeria over the state of Israel - as if its existence made one iota of difference in the lives of the crazies rioting.

Fri, 04/13/2012 - 22:21 | 2343151 slewie the pi-rat
slewie the pi-rat's picture

he's not a zionist is why

and, he doesn't like zionism as pushed by this guy

people who stand against zionism aren't necessarily morbid, intensely obsessed or crazies, but the zionists will go for the ad hominems and dismiss anyone's right to question:  what possible revelance is it to you

this is zH;  we know the difference between shit and shinola;  at least now and then... 

that said, your irony is totally noted, ok?  just in case you prefer acting nuts to BEing nuts

Fri, 04/13/2012 - 21:48 | 2343141 slewie the pi-rat
slewie the pi-rat's picture

@ Oracle_0f_K:

in "investor slang" widows and orphans meant:  safety/no risk/gilt-edged;  if one's parents died and left something, it was to be invested for orphans and protected, not used to "take a flyer"

now:  widows & orphans can't get any safe return past 2+% going out a decade;  plus, the "market" could go down, impairing their principal

i think the actual phrase is from theBible:  the clans, the tribes, the society was morally responsible not to "afflict" these people who could not care for themselves

so yeah, you got it!

Fri, 04/13/2012 - 12:15 | 2341947 rayduh4life
rayduh4life's picture

What's growth?   

Fri, 04/13/2012 - 14:54 | 2342467 rbg81
rbg81's picture

I don't believe for a second that this guy is stupid.  So, therefore, he must be lying through his teeth when he says that he doesn't understand why the Fed is doing what its doing wrt: ZIRP.  Clearly, the Fed is acting to keep the Federal deficit under control--period.  It will throw any number of "windows and orphans" under the bus to keep the lid on Government interest payments.  That is ithe #1 priority of the "independent" Federal Reserve.  That, and getting Obama re-elected.

Fri, 04/13/2012 - 19:26 | 2342987 RichyRoo
RichyRoo's picture

Just occured to me, but if Mittens gets the nomination, do the FED/Elite care about the election anymore? Either way we get BamBam (stooge) or Mittens (stooge), so wheres the problem? Maybe the real moment the FED can begin easing again is once Mittens nomination is secure and that pesky Ron Paul cant rock the boat anymore?

Fri, 04/13/2012 - 20:20 | 2343051 Sam Clemons
Sam Clemons's picture

How do you know they want Obama re-elected?

Fri, 04/13/2012 - 22:00 | 2343154 rbg81
rbg81's picture

Well, they're sure acting like they do.  If the FED can keep the stock market up (through Nov 4th), then I think the election is Obama's to lose.  If they wanted Obama to lose, then they will let the DJIA fall.  If it goes below 10K, then Obama is toast.  Regardless of what people say, they vote their 401Ks.

Fri, 04/13/2012 - 20:18 | 2343049 rotagen
rotagen's picture

Goes to show that even complete morons (or lying dweebs) can run a hedge fund and do well.  Yeah, low rates aren't doing anything so let's raise rates?!!  Did this guy ever go to college?  Or grade school for that matter.  Nonsense.

Fri, 04/13/2012 - 20:36 | 2343068 Lord Welligton
Lord Welligton's picture

It's worse than that.

After the election of November 2012 the FED will begin to raise interest rates.


They need a two-term President.

Put your money on Romney.

Fri, 04/13/2012 - 10:28 | 2341507 peekcrackers
peekcrackers's picture

Got PMs ?

Fri, 04/13/2012 - 10:28 | 2341512 Slope of Hope
Slope of Hope's picture

Not sure what to think - I might agree with him, but didn't he teach Cramer all he knows?

Sat, 04/14/2012 - 00:26 | 2343284 alexwest
alexwest's picture

no... he didnt... it was cramer's wife who worked for Steinhardt...

mr. Steinhardt is way way way overrated... he aint no soros/julian robertson/etc

basically he made money on semi legal activities.. its called stocks parking..
big guys needed buy/sell huge chunk of stocks during 80x,, they didnt want to alert public/exchanges, so they went to him and ask him buy/sell/park stocks..

so heres how he made money ..


Fri, 04/13/2012 - 10:33 | 2341531 ss123
ss123's picture

"Bonds are no place to be"

And neither is AAPL this morning. All hands on deck!

Fri, 04/13/2012 - 10:53 | 2341610 CrashisOptimistic
CrashisOptimistic's picture


You do realize that the day the US lost its AAA rating the 10 year was at 2.58%?

That fall in yield since is outright profit to bond holders.

Fri, 04/13/2012 - 10:58 | 2341636 DeadFred
DeadFred's picture

How far does it have to go before they halt it, or more realistically until the PPT steps in? Current trends put it below 500 by EOD so that will have to change.

Fri, 04/13/2012 - 10:34 | 2341538 GeneMarchbanks
GeneMarchbanks's picture

Wilford Brimley is right, let's help the savers. Right savers? *crickets*

Fri, 04/13/2012 - 10:35 | 2341540 Peter Pan
Peter Pan's picture

When the FED runs out of bullets it will be the army's turn to use the bullets it has being buying to convince everyone to fall into line. That's when the founding fathers in every American will either rise up or else.

Fri, 04/13/2012 - 10:52 | 2341608 hondaicivic
hondaicivic's picture

I have friends in the military. They'll shoot the politicians and bankers before they shoot their own friends and families. I guarantee you that...

Fri, 04/13/2012 - 11:04 | 2341660 Peter Pan
Peter Pan's picture

I hope so, for America's sake. Then again, the change needed can be achieved without any more shots being fired either in the USA or elsewhere.

Fri, 04/13/2012 - 20:21 | 2343053 Sam Clemons
Sam Clemons's picture

Just like Occupy Wall Street and the Tea Party were resounding successes at making changes?

Fri, 04/13/2012 - 11:14 | 2341707 oddjob
oddjob's picture

“He robbed me of my life savings," Gary Liebschner of Carroll, Ohio told ABC News. Sgt. Bales still owes Mr. Liebschner about $1.3-million in damages, plus interest, for defrauding him. An arbitrator concluded he “engaged in fraud, breach of fiduciary duty, churning, unauthorized trading and unsuitable investments.”

By the time of the ruling, Sgt. Bales had disappeared into the military

Then its off to kill innocents in another country. what a patriot.

Fri, 04/13/2012 - 14:44 | 2342435 Lednbrass
Lednbrass's picture

I most cases I think it will be as you say but the 20th century showed pretty clearly that there is a segment of any society that will do whatever they are told.

Another thing to consider is where the actual trigger pullers come from, our military is most certainly not homogenous. The areas of the country most inclined to and supportive of central government produce a percentage of recruits very far below their share of the population and they tend to sneer at fighting troops- they join for technical training and college assistance which is fine but gives them weapon skills far below that of the average citizen redneck. Will the very disproportionately white fighting troops overwhelmingly from the small town and rural South, Midwest, and non coastal West hassle small town dwellers and farmers? Hell no. Would they care about cutting loose in major cities? Tough to say.

Fri, 04/13/2012 - 20:11 | 2343035 nmewn
nmewn's picture

I have it on good authority (grass roots) they won't.

Purely anectodal in this one instance but...I know a guy who has a son-in-law who is active, a Southerner in every sense of the word. One of the son-in-laws best friends is from Wisconsin, he talks kinda funny ;-)

They met in Afghansitan and they talk about "things".

I believe civilians have far more to fear from the acronyms (FBI, DHS, CIA etc.) than military who are essentially us at the end of it. Point being...the young in the military are smarter & more responsible than older civilians give them credit for.

And just to stir things up...Katie Pavlich says Big Sis may have lied to Congress...

"In her explosive new book Fast and Furious, Katie Pavlich makes the case that Homeland Security Secretary Janet Napolitano not only failed to stop an operation that led to the death of one of her own, Border Agent Brian A. Terry, but she may have also lied to Congress in sworn testimony at a hearing held to find out what really happened."

Oh my...

Fri, 04/13/2012 - 21:12 | 2343113 Race Car Driver
Race Car Driver's picture

Thirty or forty years ago, it might have been an 'Oh my' moment... but not today.

Thirty or forty years ago, we didn't have a DHS - Americans wouldn't have tolerated a domestic KGB while we were fighting the Cold War with the USSR. They had to wait until the Evil Empire fell and was buried back in the corner of our collective memory and even then needed the nationalism of 911 to bring it about uncontested.

But now? No way in hell is anyone gonna bring the director of the American Stasi to task for something as simple and basic as fibbing. Tomorrow it will be a non-event. By next week it will be forgotten.

Fri, 04/13/2012 - 21:36 | 2343133 nmewn
nmewn's picture

There is no doubt the propaganda arm of government (the MSM) tries to keep everyone distracted.

With countries who can't even feed themselves shooting over-rated fireworks into the ocean, "free" birth control for little rich kids in law school, one black kid getting killed in Sanford vs the hundreds in Chicago, Buffet Rules and secretaries, brain dead OWS and the like.

But its the cummulative total, the meaningless bullshit looking back, this will be their undoing.

Look around, the trust is dead...they have nothing left but naked force.

Sat, 04/14/2012 - 00:22 | 2343277 Lednbrass
Lednbrass's picture

I suspect you are probably correct for most of them based on similar grass roots anecdotal evidence. Personally I have little worry about the domestic DHS/Stasi types, there arent enough of them and suspect they would get their asses handed to them if things got truly ugly.

Sat, 04/14/2012 - 07:23 | 2345114 nmewn
nmewn's picture

I think so too.

The line officers take their oath to uphold the Constitution pretty seriously...the brass (admittedly I don't know any) not so much...but again I don't know any. Over the course of years of spoken with colonels on down and they're pretty much like us...with varying degrees of patriotism...but all of them fixated on pols as idiot panderers.

The militarization of law enforcement is the problem...IMHO.

Fri, 04/13/2012 - 17:07 | 2342756 Zero Debt
Zero Debt's picture

Time for a repeat of the history of Rome?

We run into the same problem that the sources rarely give much away. That said, we could summarise the various motives found in Roman mutinies.

There comes a point where individuals cannot tolerate their current situation any more. In normal circumstances this results in desertion from the legion, but not everyone would consider that course as viable. There is, after all, safety in numbers, and instead of deserting alone and vulnerable, why not do so en masse? That of course requires co-operation from other members of the legion, and so this is characterised by a period of persuasion and debate. Roman troops do appear to be easily led, and none too bright.

A primary cause of problems with soldiers is inactivity. The Romans knew this. Men were co-opted onto civil engineering projects for just this reason, to keep them busy and thus out of mischief. Without good order the legions may well disintergrate into armed bands as the more vocal personalities begin to dominate. Should any of these individuals have more ambition, then it's likely they will quickly recruit followers to their cause and thus give them purpose.

Time and again a legions sided with ambitious generals and threatened Rome. It's sometimes hard to tell whether the general was persuaded by his men to mount a coup or the general took advantage of his mens loyalty to him. There were also occaisions, such as the civil war between Caesar and Antony, where troops changed loyalties from side to the other where they felt they would benefit.

By far and away the most common motive for mutiny is the question of personal reward. The majority of soldiers signed up to earn a living, with the possibility of getting windfalls from victories or other means, and bear in mind their daily life is often boring, harsh, and tiring.. Prolongued periods of low pay, or indeed a failure to receive any expected gratuities, will quickly anger Roman troops. It must also be said that promises of gratuities may well persuade a mutiny to begin.

Fri, 04/13/2012 - 19:35 | 2342995 RichyRoo
RichyRoo's picture

Interesting post, seems those factors are all at play in the modern human psyche (soldier or civilian) same as they ever were.

Also I consider the 'Globalist/Elite' ideology to be completely at odds with the 'down home' ideology of many recruits. How will a soldier reconcile his/her Christian or at least pro-American (life liberty pursuit of iPads) upbringing and social reality (both civilian and within his immediate peer group) with the orders to kill citizens? And what if those citizens are simply hungry? Or angry about being locked in a FEMA camp? Many soldiers (and civilians) will simply 'go along to get along' and to avoid punishment (there is never a shortage of brown shirts unfortunately) and some (the anti-social personalities) will seek advancement (paging Himmler) but there will be others...

Fri, 04/13/2012 - 17:09 | 2342760 NotApplicable
NotApplicable's picture

NATO says BFD. All of your friends will be overseas shooting brown people. Meanwhile, brown NATO troops will return the favor here.

Any US militarization within in the US will be a policing action, where they focus on "criminals." As you should know, that's all the level of dehumanization needed to spur them to action.

Fri, 04/13/2012 - 19:36 | 2343001 RichyRoo
RichyRoo's picture

We are still a long way from armed foreign troops in USA. How will those soldiers rotated away from OS react? And even the stupidest grunt will eventually realise he is shooting old ladies out after FEMA curfew and will begin to question.

Fri, 04/13/2012 - 18:27 | 2342886 smiler03
smiler03's picture

"They'll shoot the politicians and bankers before they shoot their own friends and families."


"Stating the Bleeding Obvious" Statement of The Week.

Fri, 04/13/2012 - 19:08 | 2342962 CH1
CH1's picture

I have friends in the military. They'll shoot the politicians and bankers before they shoot their own friends and families. I guarantee you that...

Sure hope you're right.

Fri, 04/13/2012 - 19:38 | 2343002 Problem Is
Problem Is's picture

"I have friends in the military. They'll shoot the politicians and bankers before they shoot their own friends and families."

Yeah the enlisted guys...

Who Gives the Orders?
Many of the officers are Freemason douche bags with allegiance to the City of London and other Bankster power bases...

33rd Degree Ass Hole Masons vs. Porch Masons
The 33rds know what it's about... The Porch Masons.... Are tools whether they know it or not...

Fri, 04/13/2012 - 22:11 | 2343161 boogerbently
boogerbently's picture


Don't look under the bed.........DON'T DO IT!!!!

Fri, 04/13/2012 - 10:36 | 2341543 oddjob
oddjob's picture

A withered paperbug crying after decades of creaming, just fuck off and die already.

Fri, 04/13/2012 - 10:43 | 2341569 GeneMarchbanks
GeneMarchbanks's picture

Wow. Harsh, dude. +1

Fri, 04/13/2012 - 11:00 | 2341645 Kali
Kali's picture

LOL.  Looks like he is just a better dressed "30 epic fat guys on the internet"  in bigdumbnugly's post in the gold thread.  That post killed my appetite for breakfast. 

Fri, 04/13/2012 - 12:38 | 2342025 ElvisDog
ElvisDog's picture

I'm not quite as critical as you, but I always find it annoying when people crow about making money during the Internet boom, probably the easiest time to make 20% a year in history.

Fri, 04/13/2012 - 20:33 | 2343066 Sam Clemons
Sam Clemons's picture

Hey man!  That paperbug helped efficiently allocate capital to AOL and ALU during the tech boom to help America win.

Fri, 04/13/2012 - 10:37 | 2341545 Quinvarius
Quinvarius's picture

Bonds are like banking stocks.  You can't rationalize owning them in a free market.  But you can't short them because they are entirely being propped up by Fed free money.  All you can do is take delivery of gold and silver.  Because anyone can store real money indefinately at no cost, no one can control the price using paper for any amount of time.  Enjoy the subsidized dips.

Fri, 04/13/2012 - 10:58 | 2341637 CrashisOptimistic
CrashisOptimistic's picture

10 yr yield the day the US lost AAA -- 2.58%.

There is nowhere else to hide that is large enough to absorb the trillions of dollars of scared money around the world, and with 16 Trillion in debt there is no way the Fed will let the rate rise.

It IS a sanctuary for months, if not years.  Bernanke would not let it be otherwise.  

In an oil scarcity world of no growth, ever again, and with 16T and rising debt, I can see this rate falling from its present 1.98% to 1%, and then 0.5%, and then, yes, -1%.  People are that scared that they would pay to hide.

And thus, if you are a bondholder now, you'll profit all the way down in yield from the capital gains that result.

Fri, 04/13/2012 - 10:44 | 2341571 Judge Arrow
Judge Arrow's picture

Bottom line: there is no bottom line.

Fri, 04/13/2012 - 10:44 | 2341575 holdbuysell
holdbuysell's picture

To paraphrase: "We used to think we added value to America by shifting capital to its most effective uses. Wall Street isn't that anymore."

Indeed. Wall Street is a horrid failure.

Fri, 04/13/2012 - 10:51 | 2341597 insanelysane
insanelysane's picture

Exactly, wall street was about getting money into industries that produced something which grew the economy.  Now wall street is the economy but it doesn't produce anything which is why QE is needed because QE is the "production" and it makes it look like the economy is growing. 

Fri, 04/13/2012 - 20:04 | 2343028 Golden Showers
Golden Showers's picture

Wall St. is the pass-through-entity through which "funds" are channeled to finance both sides of major wars, for example. "Improving" the "economy" in the process, as a side-effect. Wall St. has never been "the economy", it is a barometer of money changing hands. That is all it is. There is NO economy. There is NO money. There is only a metric. That is all Wall St. is and "does". Furthermore, the "economy" neither grows nor shrinks. Do not mistake a thermometer from the temperature outside or a barometer reading from the air pressure. There is either lots of liquidity or not a lots of liquidity. These are relative terms.

The point is that money changes hands to kill people. A bit boiled down, maybe. Or, money changes hands to make a killing off of people. You know, for kids.

Why don't you people get a grip on reality? Where do you get that just because a number pops up on a screen that that makes it legit? Ever hear of the London Gold Fix?

Forget about indices. Ask yourself if you are happy and have gratitude for what you have. Tomorrow's numbers are yesterday's thought experiments.

Stop looking at Wall St. and open a window if you want to know what the weather is. Simplify, or jump.

Define: Money, Wall Street, industries, economy, and talking out of your ass after a three foot bong rip, please. You know, for the kids.

Fri, 04/13/2012 - 20:42 | 2343075 VisualCSharp
VisualCSharp's picture

Excellent post. While I find many folks complaining that everything is fixed, TPTB have complete control, etc. etc., they still come back for more in this "market." How about investing in meaningful skills. How about actually producing something of value. If you're a trader in this "market" you are simply another money-changer. You can rationalize all you want, but the "market" actually being an efficient way of allocating capital died long ago.

Fri, 04/13/2012 - 21:26 | 2343127 Cathartes Aura
Cathartes Aura's picture

damn, I just popped in for a quick perusal of threads, easy skimming - and then THIS.

what a brilliant, refreshing perspective of a post, including this,

The point is that money changes hands to kill people. A bit boiled down, maybe. Or, money changes hands to make a killing off of people. You know, for kids.

is almost poetry, or what would pass for poetry here, anyhow.

thanks, I can log out knowing I've gleaned my piece of ZH truth for the day.


"Simplify, or jump."                  *nods*

Fri, 04/13/2012 - 19:41 | 2343005 RichyRoo
RichyRoo's picture

Mistaking financial growth for economic growth was the error.

Fri, 04/13/2012 - 10:51 | 2341581 I should be working
I should be working's picture

So bonds aren't the place to be, nor stocks nor cash?!!?

So your advice is what exactly?  BTW, did we just get another AAPL flash crash?  The matrix is sputtering again today.  Time to sell everything we were so excited about yesterday....

Fri, 04/13/2012 - 11:19 | 2341729 crawldaddy
crawldaddy's picture

So bonds aren't the place to be, nor stocks nor cash?!!?


there is the 16 trillion dollar question.

Fri, 04/13/2012 - 20:43 | 2343077 VisualCSharp
VisualCSharp's picture

The advice is to invest in yourself. Learn skills that are useful. Participate in your local community. You're thinking inside the box that TPTB have formed to trap folks.

Fri, 04/13/2012 - 20:48 | 2343083 CrashisOptimistic
CrashisOptimistic's picture

That's your advice to 80 year olds whose pensions are about to be destroyed?

Fri, 04/13/2012 - 10:49 | 2341590 HellFish
HellFish's picture

Now I'm no Wall St. genius but does this guy understand that if interest rates increase the Federal Gov't can't afford carrying existing debt?  Does he also not understand without the Fed buying US debt the interset rates will also rise?  Both ending the current US economy/government?  Or am I getting it wrong?

Fri, 04/13/2012 - 10:52 | 2341606 insanelysane
insanelysane's picture

You're wrong of course.  The Government and FED can simply decouple the interest rates on US debt from the interest rates on private debt.

Fri, 04/13/2012 - 11:20 | 2341735 crawldaddy
crawldaddy's picture

simply?  nothing simple about that at all.

Fri, 04/13/2012 - 11:25 | 2341749 LawsofPhysics
LawsofPhysics's picture

Maybe, but then commodities would also "decouple".  Go ahead Fed, do it, I fucking dare you...

Fri, 04/13/2012 - 11:32 | 2341776 GoldenTool
GoldenTool's picture

Yep as soon as this happens it is game on!

Fri, 04/13/2012 - 19:44 | 2343011 RichyRoo
RichyRoo's picture

Im not sure about the way interest rates work, but here in AUS we already have retail banks moving rates independently of our RBA (Aussie FED). Its causing some consternation as mortgage rates go up while official rates are steady.

Sat, 04/14/2012 - 23:31 | 2346061 Amagnonx
Amagnonx's picture

The RBA sets the official cash rate (OCR) - basically all interbank transactions have to be settled daily, and the RBA sets the rate.  It creates or destroys money to adjust the rate by managing bonds - basically the same as the US Fed, but the scale is smaller as its a national currency, not an internatilnal reserve.

So - it sets the lower limit on the cost of money - banks can charge higher than that, but they won't go much higher due for competitive reasons.  Ultimately, the RBA sets Australia's interest rates - it is a foreign owned corporation - the same as the US Fed, and money lent to the AUstralian treasury attracts interest - so in that way it is worse that the US Fed which rycles interest payments through the treasury, rather than capturing them (ie the RBA charges everyone interest on every dollar lent).


It is a vile institution created in 1959 - every bit as evil as the US Fed, and owned and operated by the same people.

Fri, 04/13/2012 - 11:10 | 2341682 Amagnonx
Amagnonx's picture

Raising interest rates and causing defaults, especially forcing the US Govt to restructure and devalue the currency would be a very healthy thing - debt needs to be liquidated to recover, and there needs to be some pressure to force capital out of the hands of pure speculators, and back into the real economy.


Let the market set interest rates, the Fed and other central banks should get out of the way and let the defaults happen.

Fri, 04/13/2012 - 10:49 | 2341592 Printfaster
Printfaster's picture

This clown thinks that the Fed has any choice other than low interest rates.  A total fool.

Raise interest rates for Ts and this happens:

o   Federal and state budgets to the moon.

o   Mortgage rates to the moon.

o   Business finance to the moon.

o   All government shuts down

o   All banks fail since the housing market goes to zero

Print we must.  We must print faster and faster.  The weight of debt exceeds all money and credit available.

Fri, 04/13/2012 - 10:59 | 2341643 CrashisOptimistic
CrashisOptimistic's picture

Behold the consequences of oil scarcity.

Fri, 04/13/2012 - 15:00 | 2342480 rbg81
rbg81's picture

Yup, he was obviously lying through his teeth about "not understanding" the Fed's ZIRP policy.  No doubt the Thought Police were holding his family hostage until the interview was concluded.

Fri, 04/13/2012 - 21:24 | 2343125 Cabreado
Cabreado's picture

And, the most fun part is where... regardless of interest rates...

o   Federal and state budgets to the moon.
They are already on another planet, broken, regardless

o   Mortgage rates to the moon.
The housing market is, and will be, in a state of f'd-upness, regardless

o   Business finance to the moon.
"Growth" is over, regardless

o   All government shuts down
Government is broken, regardless

o   All banks fail since the housing market goes to zero
The banks have already failed... regardless

But it is the weekend after all, so let's party on, regardless.
The stench of brokenness... as you may have noticed, becomes more tolerable.
'til we all fall down.

Fri, 04/13/2012 - 10:50 | 2341595 Snakeeyes
Snakeeyes's picture

And now Lagarde is trying an Escargot Endrun to pressure DeMarco into doing principal reductions. This is CORRUPT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Fri, 04/13/2012 - 10:53 | 2341615 PaperBear
PaperBear's picture

We don't need liquidity, we need to liquidate the zombie banks.

Fri, 04/13/2012 - 10:53 | 2341619 Neo1
Neo1's picture

A Banksters defeatism nightmare, Being forced to Return to Real Money=United States Note=Lawful Money. The real reason you pay an income tax, is for the privilege of using a private currency. Also known As A:  Federal Reserve Note, Demand from your bank or brokerage, lawful money and the tax goes away, with a tax exemption on lawful money, all of your money is yours.

Tax Exemption:

Web search these four different phrases: Redeemed in Lawful Money  or  United States Note  or Redeemed in Lawful Money Pursuant to Title 12 USC §411  or deposited for credit on account or exchanged for non-negotiable federal reserve notes of face value  

Fri, 04/13/2012 - 10:57 | 2341635 Chippewa Partners
Chippewa Partners's picture

The Master at paying for first calls and IPO's with big commish was one thing.  It worked for Cramer too.  There wasn't an office on Wall Street that was showered with more "gifts" from brokers.

Fri, 04/13/2012 - 11:01 | 2341649 Sleepless Knight
Sleepless Knight's picture

"Shift capital to where the USA needs it" That would be a pleasant change today. Money goes where it can make the fastest buck for the smallest percentage. If capital were to flow to do the most good for the USA, where WOULD it go? Things are so screwed up, I cant answer that directly! My fist guess would be to small business to help them hire more local people, but that will never happen.

Fri, 04/13/2012 - 11:03 | 2341654 hettygreen
hettygreen's picture

Her words not his I know but stocks were cheap last fall? And this from a guy who has actually lived through sub 8 PEs? C'mon, lower in price but cheap? Not when the gains since can be vaporized in weeks. And I can just imagine the young guys on Wall Street laughing all the way to the bank about that so called 'pall.' What exactly is Brimley's performance by the way? Might it be attributed to something other than him not burying himself in research and living at a trading station? I would have asked him that but of course I'm not young, blonde and buff and in thrall of my corporate overlords.

Fri, 04/13/2012 - 11:09 | 2341671 ArrestBobRubin
ArrestBobRubin's picture

Wow. Are any of you familiar with Mr. Steinhardt's background or his impact on the "Democratic party" or our country via the crazily outsized and unhealthy Zionist influnce operating at the heart of the DNC?

He may or may not have valid points here but it's important to know who's speaking to you. This is NOT a good person.

PSA now complete :-)

Fri, 04/13/2012 - 11:09 | 2341683 banksterhater
banksterhater's picture

Why doesn't he flatout say how many millions of seniors WENT INTO POVERTY in the last 5 yrs, how many DIED not buying their meds? I'ts at least a million collectively.

Fri, 04/13/2012 - 11:20 | 2341710 Dingleberry
Dingleberry's picture

Make money cheap...and you get cheap money. 

There is no recovering from bubbles...only sweeping up the carnage.

Even if economic damage can be healed....psychological damage remains indefinitely (ask Japan or the Nasdaq)


The Fed needs to learn these lessons. Among others.



Fri, 04/13/2012 - 11:16 | 2341714 Shizzmoney
Shizzmoney's picture

LOL at "Are we accomplishing anything?".  The guy means well, but the only thing Wall Street accomplishes is fail for the masses.

My cousin got 10 year Treasury Bonds as a kid.

My cousin later on, also sold cocaine.

You can guess which "investment" he had a higher ROI on.

Fri, 04/13/2012 - 11:16 | 2341716 Centurion9.41
Centurion9.41's picture

Opened 1st firm in 1967.

Almost 3 decades of +20% returns to investors.

What they don't say:

- What happened in the markets from 1965 - 1983? [take a look at the market over that period, how did she move?]

- What was the AUM during the 3 decades? [less than 300 million?, it matters, a lot]

- They don't ask him why, after stating he didn't want to get back in the hedge-fund game, he decided to get into the creation of ETF game?    But what does he pimp, high-yielding equities....

- Steinhardt played the game when the club was MUCH smaller & the bid/ask was so wide that a lot of money could be made by ONLY playing the spread.

- Plays the "widows & orphans" card.  Really?  Orphans?  Utter BS.  To use orphans by implying orphans are suffering that gives clear insight to this guy's soul.  First, try and go find all those orphans out there; hint the welfare system makes keeping kids a much more lucrative proposition.

- As for his "widows" play.   Really?  If those widows had not VOTED in all the ENTITLEMENTS and NOT PAY FOR THEM, then the widow wouldn't be having Uncle Benny taking it back via the backdoor of her bonds.  So in effect, though wrong, Uncle Benny is jacking up the bonds to force these old bastards, who didnt pay the bills on what they voted for, have to sell their bonds to survive.  Isnt that the way it's supposed to work, widow who's wealthy bought the Wall Street advisor's "enough bonds to retire off the interest"? 

- The spirit is gone, the "elan", what an arrogant F.  The spirit is there, it's just a cabal spirit.  But during his years, no, he never did such things.  Right, that's why he paid over $75 million, in 1994, to make his "elan" go away;

Steinhard's a smart guy.  But he's old school cabal who is only out for one thing, himself.  

There's zero difference between Steinhard & the banksters like Dimond et. al.


Fri, 04/13/2012 - 11:36 | 2341787 Larry Dallas
Larry Dallas's picture

This is wonderfully written. Reminds me of a lot of the guys I knew who owned seats on the NYSE. Once digitization happened, these guys either resisted hard and lost or just sold out.

Old school cabal is correct. Why he's still in this biz is beyond me. Perhaps he just doesn't want to have to sit at home with his wife all day.

Fri, 04/13/2012 - 20:38 | 2343071 lotsoffun
lotsoffun's picture

hey, let's get some PC here.  would you want to sit home with HIM allday?


Fri, 04/13/2012 - 20:55 | 2343099 Larry Dallas
Larry Dallas's picture


These guys haven't spoken to their wifes in 20 years. They don't know each other.

He's probably been able to have his indescretions and she looks the other way because she's been given an extraordinary quality of life.

In the words of a comedian who's name I can't remember; each one is refusing to die because they don't want to give the other one the satisfaction.


Fri, 04/13/2012 - 21:09 | 2343108 lotsoffun
lotsoffun's picture

larry.  agreed.  and i'd really rather just be me with me and mine and ok financially.

Fri, 04/13/2012 - 11:46 | 2341824 banksterhater
banksterhater's picture

you nailed it, bigtime.

Fri, 04/13/2012 - 11:25 | 2341751 crawldaddy
crawldaddy's picture

my take on what will happen.  Governments will continue to clamp down on it citizens, you already see this. No feathers will be allowed to be ruffled. Quasi police state in check, they will either start ww3, and/or inflate the debt away, and we like good little citizens will sit there and take it.  Look at Greece, good dog, sit, now roll over.

Fri, 04/13/2012 - 11:31 | 2341767 newworldorder
newworldorder's picture

The FED is delivering on its mandate.

1. It is providing unlimited low cost or ZIRP loans on demand to the US FEDERAL GOVERNMENT.

2.  The debt based banking and shadow banking systems are its vehicles, thereby providing an almost unlimited income stream to the International Banking Cartel.

These FED actions are not going to stop in the forceable future. Congress, regardless of party still needs to borrow 50% of the operating income of the US Government for many years to come. Do you think they want to kill the goose that is giving them all those freshly minted FRN's ??????

Fri, 04/13/2012 - 11:39 | 2341798 Dre4dwolf
Dre4dwolf's picture

"The spirit of Wall - Street is gone", that should say a lot to a lot of people.


The spirit is gone, because zombie banks have no soul. . .  wall street is a re-animated corpse being manipulated by puppet strings, the thieves are holding up the corpse as a front so that you cant see them behind pulling thte strings.


A wolf in sheeps clothing as it were.


Do yourself a favor , go drink your last dollar away at the bar instead of giving it to the crooks on wallstreet.

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