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
23,443 Blog Posts

WTF?

Zero percent. I cannot believe we are at zero percent. The market is shooting first, asking questions later.

My knee-jerk reaction was “wow, that’s fucking nuts.”

After thinking about it, I am worried. Not worried from a short position point of view, mind you. I am worried for the stability of the nation, for my kids.

How will our currency hold, with zero percent Fed funds rates, zero percent t-bills and 11 trillion in debt?

Without a doubt, gold should appreciate here. However, that does not mean it will, at least not right away.

So, lety me get this straight:

President Obama is going to print another trillion dollars for a stimulus program, amidst a zero rate policy? How?

People point to Japan and say “we are going to be like them.” However, the big difference is that they have a savings rate and account surplus, while we are drowning in debt.

Maybe we just reflate like a motherfucker out of here and drive up the prices of everything. Or, this experiment fails and ends with the default of the U.S. Treasury.

UPDATE: Feeling the bullish tone, I bought C, ABX, TNA, UYM and FAS.

UPDATE: I sold out of most of my ERY and FXP, taking losses in the process. My buy list is broad and ranging from banks to gold.

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60 comments

  1. mrkcbill

    Praise The Lord

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  2. wow

    this is scary

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  3. wow

    they just blew their load in a big way

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  4. T MOE

    fuck Cramer

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  5. Donny

    Watch this to understand what the FED just did:

    http://www.youtube.com/watch?v=PQyClNEfncg

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  6. James Cramer

    Mortgage Rates to 1% 30 year fixed.

    I’d change my name to Mr. Mortgage but he is a clown.

    Buy Buy Buy

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  7. Flux Capacitor

    ZIRP won’t help. This will not end well.

    BO = Last President of the First American Republic.

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  8. 4fl3x

    Thanks Fly.

    I’m going to go find a corner and a blanket.

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  9. MarketRaider

    Serious question Fly just to check my sanity. I know the market will do what the market will do but honestly is there any reason that this market is still up? I mean this is scary shit and anyway you dice it, Santa Claus, and all this is not good. What premise would this market rally on?

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  10. CAP

    Trillions of Dollars in debt is not a big deal. We will just continue to devalue the Dollar thus making that debt cheaper and cheaper. Plus its costing the FED nothing to print money. People are willing to get negative rates to buy Treasuries. Its a win win situation for our government.

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  11. Walter Sobchak

    Forget it, Donny, you’re out of your element

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  12. Bravo

    Face it, join the rally or get your ass kicked…Everyone is so glib, Cramer the asshole especially…USA’s debt is disgusting….

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  13. hmmmmmm

    Maybe they’re just throwing all of the circuit breakers in the basement of the fraternity house “TTT” (Bonds, Bills, and Leather-bound Books, BABY!) in hope that the austere men with wandering eyes and holes cut in their pockets take their money to their own masturbatorium and buy stocks.

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  14. DEVILDOG

    I’m sure the rest of the world is fighting to be first in line to buy our T-bills and finance our debt. All is well. Buy stocks and real estate. BTW, new lows this month or the first half of January due to the fed rate bullshit spin. I don’t care when. I’m holding my SHORTS for S&P 5 handle now instead of a 6.

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  15. Frank the Asscrack Plumber
    Frank the Asscrack Plumber

    Next month interest rates are -1%

    Are you still warm Fly?

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  16. chivasontherocks

    Fly,

    you got it excatly right, either reflate or default of treasury. failure is not an option. given the character and nature of our country and people, the correct bet imo, is that we succeed. playing the depression and deflation scenario here and now, is playing the exception to the rule.

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  17. charlie

    I’m sure everyone recalls this gem:

    http://www.youtube.com/watch?v=WfvIstgOugc

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  18. Zimbabwean King

    Welcome to my world.

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  19. Employee8

    debt is about 40% of GNP vs 120% for japan and many other developed nations …. still room for debt to reflate …. higher rates and inflation will be the consequence but not for some time

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  20. Donny

    Shorts … wait until the close.

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  21. BIG MIKE

    BIG MIKE BUYS 5000 of FAS…
    BUYS 4900 of UYM…

    “Ahh cocaine is one hell of a drug…”

    Yo Fly, isnt this worry about our kids future, a motivation to work harder than ever, so they won’t suffer?

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  22. WTF

    selling into the rally…

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  23. 4fl3x

    SRS $8 from all time low. How can you not love these ETF’s.

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  24. Bravo

    SRS…LOL….

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  25. BIG MIKE

    GOLDI-fucking-LOCKS, fuck-faces…

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  26. Dept of Sanitation
    Dept of Sanitation

    “There is a large road-kill over on I-35”
    “I’m not sure, but I think it is a Devildog – somebody clean it up”

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  27. Boss

    Get back to work! Nothing to see here.
    Haven’t you idiots seen a goverment go bankrupt before?

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  28. Small Fry

    That sound you heard was DEVILDOG shooting himself.

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  29. RC Dog

    UYM looks great, breaking out of triangle.

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  30. Aris

    i bought some FAS on the fed stuff. cramer helped me out buy shamelessly pumping the banks a few minutes later. i think heebner even got on there and started a pump.

    probably catch some weird asia action tonight, followed by a gap up tomorrow, at which point i’ll dump half my FAS.

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  31. Is the crisis over?

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  32. ALLPROz

    New highs this month Devil?….I’m just saying…

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  33. This is that speaking
    This is that speaking

    where is that guy with the new lows this month mantra?

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  34. Generational BOTTOM Picker
    Generational BOTTOM Picker

    OK. The pigeons are mostly bullish here.

    DING DING DING!

    Buy SRS and QID real fast, because stocks sometimes rise TOO FAST even after a Generational Bottom

    You are safe for a couple of days by betting against the always-wrong clowns here.

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  35. scum bucket

    Get in the funnel.

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  36. TODD

    uup LOL!

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  37. TraderCaddy

    Could this be THE move out of treasuries into equities longer term?
    Time to buy TBT finally?
    Is the TLT bubble going to (ever) pop?
    Who knows?

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  38. Doggy

    get outta the funnel…

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  39. LORD

    When you look at the reaction of the market to the unremarkable announcement by the FED, you may notice one very disturbing thing….

    Oil is down.

    What does that tell you???

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  40. BOOMER

    Anyone buying BGZ to fade this?

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  41. anjing bau

    XOM is coming into the area from where it broke down back on July the 15 ( H L C 85.67 81.87 82.19 vol 34.4M) on substantial volume 39M & counting. Look for XOM to trade up to the top of that days candle at 85.67…..

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  42. T MOE

    Nice call on ABX by Mr Fly

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  43. kwikgains

    Exactly what I expect and mentioned earlier today a 400 point rally after the fed like old times, only that this is the last rate cut after party!!! TBT getting owned just when u think it cant go lower… DXO GLD going up

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  44. Private Parts

    I reckon SnP ~ 1k, then fade.

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  45. Aris

    hahahahah did john N just say ‘shot their load’???!!

    hahahahahhahahahahhahah

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  46. gappingandyapping

    WooHoo we are off to new highs from here! Up we go and we won’t look back!

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  47. SatanicChihuahua

    ZIRP and $1 trillion fiscal stimulus in the pike early next year and gold is only up 2%? I don’t understand.

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  48. TODD

    XOM boggles my mind.

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  49. Generational Fudge Packer
    Generational Fudge Packer

    Anybody want to buy some chicklets?

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  50. TOLD YOU TO BUY!

    HOW MANY TIMES I TOLD YOU HERE?
    I WILL SELL MY TNA @ 35 TOMORROW

    PS BOUGHT @$25

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  51. Lady Guenevere

    I dont know what to do, I havent had all the experience that Mr. Fly has had…I didnt want to ‘ chase the rally” but it all moved so very fast I couldnt make a decision. I think you needed to be sitting in a stock waiting for the announcement. Afterwards was too late to try and jump in. There’s always tomorrow and perhaps I can figure it out then.

    This fed cut makes me a little nervous, I am not sure why but my ‘ gut’ doesnt feel good about what is happening.

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  52. jig

    fuck the fed

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  53. gappingandyapping

    Fly so your 100% bullish now right?

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  54. blow up

    If the people don’t have jobs a 1% mortage with regulations up the ass won’t work. The government is putting the banks out of business. This is the start of BIG BROTHER. Socialism at its best [this market might see 5000 before it is over or we will be paying WMT workers $80 an hour]. Inflation Nation. Buy work camp stocks at 0% intrest on margin. Fuck this market it is a joke. It turned into a big slot machine. It is still not regulated; WTF 3x ETF’s [Wow give me free drinks to pull the handle].
    To me this is panic mode fuckers.

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  55. Aris

    lady guenevere, stuff moves very very quickly these days. it’s best to not chase anything, if you’re unsure.

    poke around woodshedder’s, danny’s, and RC’s blogs for a little while, because they can teach you how to find good entries. don’t rely exclusively on things like the 5min or oscillators. and never try to game stuff like fed announcements.

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  56. BOOMER

    Shorted BOOM at 17.45

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  57. My God..she’s gonna hold here!

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  58. Lady Guenevere

    Thank you Aris for your advise. Up until ‘ this Fed Move’ I was able to play a stock and get in and out…but this move today was just too fast for me. As soon as I thought to get in…it went down , then it went back up…fastest thing I have EVER SEEN in the market…I havent seen this before. As I said…not in my experience which as only been since March this year. I will read some of the other bloggers here and get some pointers. I didnt get into ABX today becus my indicators showed it was ‘overbought’ but the market clearly is in panic mode for gold to rise this fast. I guess Mr. Fly knew people would panic after the rate cut.

    Well I have seen some fast declines like the one day crashes which happened earlier this year… I just havent seen this kind of move UP. I didnt know what to do then either…when everyone was in panic sell mode.

    Off…to do some studying.

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  59. Moe

    Any of you guys know what the hell happened to Ducati? Is his blog still around? His take here would be nice.

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