As most of you know, I do a live morning video show every trading day. What it lacks is the polished presentation of costly live cable TV or taped market-oriented shows like on Yahoo Finance. It is unscripted, has no guests and requires you turn turn the volume down as I am routinely loud in my daily presentations. But in spite of the lack of a “polished presentation’, viewers insist the show is worth it. You get a non-bullshit analysis of where the market’s are, how we got there, what it means for today and a look at stocks that viewers are interested in along with actionable market timing. In addition, I often rant on economics, fundamentals, technicals or any pertinent market-oriented topic, though most recommended stocks and important buy/sell/stop levels are saved for full CreateCapital members. You’ll seldom hear about the non-market stories of the day because I just don’t care about them, unless the market does. Personally, I think the show pisses on anything else out there, but I’m biased.
The Scott Bleier Show was initially free to all IBC visitors, then I took it private late last year. But Dr. Le Fly recently mentioned to me that he missed the show in the morning. So I will soon be broadcasting the show free, for a very limited time, in the near future. Stay tuned for details.
During one of my more sticky morning show rants, I had been talking about how Dr. Bernanke was actually marching the economy towards a significant economic slowdown. In his effort to liquefy banks and prop-up asset prices and the stock market, he was assuring that an economic disaster would bring the QE experiment to an end. The rise in commodity prices that the good Doctor takes zero responsibility for, is creating true demand destruction. Maybe the distortion and levitation of asset prices is more important than anything else. Perhaps “trickle-down” economics is the cure to our issues, but I sincerely doubt it.
As often happens, the powers that be are fighting the last economic crisis, not the current one. Continuing to pour free money into the closed-loop of the banks and markets has created unprecedented distortions in those markets and has choked the rest of the economy. Only now are we beginning to see respected economists and pundits “that matter” seize upon this concept. These are the same prognosticators who beg for and depend on monetary stimulus.
The equity market has now recovered virtually all of what was lost since the Credit Crash. Some indices are at all time highs. There is a significant “inflation” in equities and the Fed can claim “Mission Accomplished” as the market participants (lemmings) are doing exactly what Dr. Bernanke dictates. But major warning signs are everywhere. Precious metals are parabolic. The Dollar is testing all time lows. Oil prices are prohibitive. Speculative excesses have reached every corner of the “free market”. Deeply cyclical stocks that usually lag the overall market and historically trade at a significant discount, are leading the market higher. All this is happening as asset prices are in the demand destruction zone and that a major portion of the artificial stimulus of QE is ending.
After more than two years, the trend of a constant market bid and the dependability of the Bernanke Put are stretched to the breaking point. The last two weeks of trading has seen another big one-way up spike in the market. It seems to be expected and no big deal. Imagine what will be said when a downtrend is established? You’ll hear all about how awful the economy and everything else is. Then I guess we’ll get more market stimulus, again, until the rubber-band between the financial complex and everything else finally snaps. Then what?
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glad its coming back, i remember the first time it automatically came on and the speakers were on high. i thought i was gonna have a heart attack. hey ,,dont give up the real q/a stream while the show is running,that part is important for all, i believe.
Scott, you know I never argued with you about the keynesian caper Bernanke and co. is trying to pull off…
I’ve been trying to play the game until it’s over.. Don’t fight the US Gubmint
My question to you is: Will the downfall of keynesianism be at the end of this cycle? When the real pitfalls of the economy emerge again, post keynesian spending? Or do you think there will be enough political push for more rounds before everyone realizes what happens and says they’ve had enough?
Would really like to see you back Scotty. Unfortunately I am a student and can not pay for subscriptions at this time.