iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
20,053 Blog Posts

Who Cares?

I bet you thought the market was gonna get its false teeth knocked out today, huh? After all, we are “enjoying” hyper inflation in food, at a time when the economy is contracting. However, the conundrum the bears’ find themselves in is rooted in the “forecasting” camp.

Everyone is “forecasting” a robust second half of the year. Therefore, any news that comes out now is ignored and spit at, by the buyers. These are very intelligent people, after all. Nothing matters, with the marked exception of price.

This whole rally has been wonderfully orchestrated, with fine precision. Shortly, we will hear of a deal to support the AAAA rated [[ABK]]. Then, out of the blue, there will be another deal for AAAAA rated [[MBI]]. After that, Bernanke will shave rates another 50bps and send the bears packing.

Get ready.

Developing…

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22 comments

  1. PDP

    Subprime mess explained using stick figures
    its hilarious
    http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

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  2. calvino

    The IBM buyback is a lie, and so is the guidance. I have crossed their doorstep a few times – this company is a Republican milk cow. When the inflation numbers came in Paulson called Japan and told them get Mitsubishi bank to pile into the dollar. Then he called Palmisano and said the market is ready to drop 500 points, I need you to do something. There is no corporate CFO who will ok any buyback of anything this year, this is fantasy land.

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  3. Dinosaur Trader

    The market, is free.

    -DT

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  4. Helicopter Ben

    That whole market being irrational me being insolvent thing is working out pretty well.

    Amazing.

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  5. CAP

    All this reminds me of market action from mid to late December. We made higher lows and rose over 400 points in 3 trading sessions before it all fell apart.

    I would not be surprised if we got a strong reversal today and closed near the lows.

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  6. MasterDebater

    While it’s true that the Bears’ mustaches are flying across the room like a wooly caterpillar with wings, I remind all lazy, chart-reading charlatans of this incontrovertible truth:

    “straight up” often leads to “straight down”

    With the Dow up 135, look for the market to close gimpy today, following a mid-day attack of “the bloody flux”.

    That is all.

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  7. ottnott

    Fly, you got it all right except the part about the 50bps rate cuts.

    That doesn’t fit into the rest of your scenario.

    Instead, what happens is that the Fed raises rates 50bps and the Dow goes up 240 points on the news that the Fed is confident about the economy going forward and is back on inflation-control patrol.

    A few days later, speculation about a further 75bps increase send the Dow up another 350 points.

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  8. Dogwood

    Oil hit a new high at $101.11. Nice.

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  9. Steve

    That is hilarious, PDP.

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  10. JakeGint

    Hilarious, but posted here three times already.

    The last two slides are classic, and true.

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  11. JakeGint

    Master Dee —

    Re: “the bloody flux.”

    A great ailment to bring back from medieval times, and highly relevant I might add.

    The yen rises, the patient must be “bled.”

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  12. JakeGint

    Hope you bought some silver with your gold bullion, Fly.

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  13. larry

    alias:BPOE

    The next bullshit is going to be that we trade in this range and crash after the election. I don’t think Bush is smart enought to pull it off.
    But mother market might just fuck us anyway!

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  14. gappingandyapping

    I guess oil is going to 1000. Fuck

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  15. JakeGint

    Inflation helped the market in 1972 as well… to a point.

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  16. jeff

    Time to get short boys.

    You know who you are.

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  17. The Birdman

    PDP – well done.

    DECK’s down 6+ percent and I’m still losing in the fucking Final Four. The battle of who can lose less.

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  18. PleaseKillMe

    When it rains, it pours.

    *Financial stocks are shooting to the moon.

    *My credit card company just called me. They have raised my line and told me to spend like a PMSing Paris Hilton. I told them, in my cracking voice, that I might want to save a bit more now. Well, they said all credit issues are resolved because it’s all insured now and if I save more than I spend, the US gov will think I’m a terrorist.

    *Then walking to get my coffee, I saw a guy take down a “For Sale” sign on this new development that’s been on the market for 22 months. “Hey you sold it, awesome”. “Yeah”, he said. “Some guy took out an ARM”. “Oh shit” as I shook my head. “No. ARMs are back in vogue because they’re now backed by your life insurance policy. They call them ARM Ultra Takedown 2s.” Curious, I asked him to explain. “You only pay the interest, but you pay for the rest of your life. Then when you die, the bank takes ownership of your organs and sells them on the black market in Thailand”. Damn. He goes on “Now even crack addicts can live the American dream.”

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  19. calvino

    Homebuilders having a modest up day.. double digits green across the board. do a line for papa now..

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  20. Low Tick

    Just looking for a reason to go higher…looks like a bottom to me

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  21. Gunners

    can someone tell me what “Alias: BPOE” means?

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  22. JakeGint

    Biggest

    Pig

    On

    Earth

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