The Federal Reserve is a criminal organization and should be treated as such. Their decision to “reinvest” into U.S. Treasury debt is tantamount to conducting a grand ponzi scheme. Nonetheless, investors like these policies, due to their misguided beliefs that free money equals inflation and inflation means higher equity prices.
These people are fucking lying to you.
Higher inflation is NOT good for stocks. As a matter of fact, the type of inflation that many gold bugs are clamoring for will ruin the United States. Now, if you are simply in it for a trade, so be it. However, nothing good can come from policies that extend the nonsensical policies in place, instead of moving forward with something that can actually help my neighbors buy more Coach bags.
NOTE: For the record, I am positioned to buy dips, with a cash position north of 40%. While my personal accounts are entirely bearish, I would like to see this market decline, so that I can put money to work. At the moment, for clients, I have a slight bearish tilt, but nothing too aggressive.
Top picks: GLW, VXX
UPDATE: I swapped out my FAZ position for SCO
AND MORE ONS…
I am long that prognosis.
WHOA!
Looks like another case of fat finger
10,000 more shares of IDG
This is the important statement
“To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.1 The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature. “
QE J?
I thinks so She.
Let me try to explain as it’s a little complex.
The previous build up of the balance sheet was supposed to get smaller by a natural run off as the shit they have in there matures. What they’re doing is in fact replacing any shit that runs off with new paper so their balance sheet will remain the same, so in effect they are QEing again or rather maintaining the balance sheet at these levels when it was supposed to become smaller.
Thanks, that was my read as well. So no QE2, rather QE infinitum.
see below, Shed.
jeezus it’s 4.30 am here. I’m fucked.
Soros Wins Again…TARP for everyone!
And Festivus for the rest of us!
S&P to 1200
That volume totally caught me off guard.
So basically the Fed admits that the economy is shit, but they’re content because they just kicked the shit-can down the road once again.
who trades economy.. I trade stocks
Good to know.
“Buy the rumor sell the news” Market has already priced in QE part deux. Selling AUD/USD.
are you fucking crazy. The Australian CB is not QEing.
…uhhh … For the love of car bombs and arsenic cocktails !
As it were …
.
Ahh, the American way.
Santelli is going to murder someone tomorrow.
Summary: Resume the Kool aid party.
As a matter of fact, the type of inflation that many gold bugs are clamoring for will ruin the United States.
“Clamoring” my tuchus. More like “girding our loins for the shit storm.”
Don’t blame “gold bugs” for taking on insurance against your electoral mistakes, my good man.
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Oh, like it would be diff with McCain? Who are you kidding?
He only kids himself. You have to be delusional if you want to live in a world where gold is selling at $3k.
Jake has been 100% right on gold. Nothing wrong with being in gold, if you think it will trade higher. I just think it is delusional to believe Mccain would have not spent like Obama.
No way the trillion dollar abomination that is “health care” would’ve passed under McCain.
And that is why businesses are not hiring. There could have been no greater concrete block in front of the hiring impetus than these ridiculous new regulations and imposed costs.
And when these morons cry about “shipping jobs overseas” they ought to be stuffed into a Maersk crate and shipped along with them.
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No fucking way Obamacare gets passed or a $900 billion dollar SECOND stimulus gets passed with McCain in the White House.
No chance business is this reluctant to hire w. McCain in the White House and Nan and Harry on their way out.
Like it or not, the crabby old man and the crazy Hooters girl would have been 1000% better than this socialist hootenanny we’ve got goin’ on now, ovah heah.
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I’m in agreement as I own gold. I think I was subconsciously trying to divert my comment away from sparking a useless political debate with Jake.
It is every American’s duty to try to educate any misguided fool with a media outlet at their disposal. Jake is our burden.
Thank the gods we have you to add your 100% zero value added comments, Troll & Circuses.
What better relief in crisis than useless diversion?
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What a humorless dick.
lol
Just because you don’t “get it,” don’t mean you’re not doing your job, hayseed.
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“I just think it is delusional to believe Mccain would have not spent like Obama.”
He would have printed money & spent, for sure. Not sure he would have taken it to the level that Obama has in his first 2 years. Obama makes G. W. look like a miser, and that isn’t easy.
No idea why I’m even responding to this other than it was such an obviously poor move for McCain to put Palin on the ticket. McCain did not lose the election by a very large margin. If it would have been a McCain/Romney ticket, Obama would not be in the White House. We’d still be in a mess, but possibly with a bit more restraint on the egregious deficit spending.
That said, McCain is (and would have been) like the dried up end crust of a loaf of bread left to sit on the counter too long; stiff as a board and essentially worthless.
McCain talked in the campaign about “a 100 year presence in Iraq”. That was sheer stupidity.
The country needs leadership from someone with a backround in business. No one in the Obama administration has business experience
Having experience in politics would also have been helpful.
Mccain might have spent like O (deer in the headlights/chicken little), they are all center left big government clown wheeler dealers!
November can’t get here fast enough.
Term Limits!!
No one wants to “live in that world,” but what I want — or what you want — has got a schit-all to do with it.
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I agree wholeheartedly that both you and I are completely irrelevant. I was referring to the delusional gold bug types who want to see it sky-rocket to $5k.
Those are guys who just want to be right, no matter the cost, and are no different than that other nihilist at the Slope of Dopes.
My view is — it’s only practical to protect yourself from an intentional attack on the sovereign currency…. and if today is not evidence of said attack, then I don’t know what will convince folks…
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Nobody ever mentions it but, as nice and polite as he is, Mike Huckabee split the Republican ticket and ushered in Mao-bama. Had he gotten the fuck out of the way when it was obvious he had no shot at winning (about 2 years before the election) it would have been a much different election. I still hold Hucka-phony accountable for that.
Kinda like a bicyclist holding up traffic on a narrow two lane road with 35 cars behind him at 14mph. Nothing wrong with riding a bike but for crying out loud get the hell off the road for 20 seconds and let the cars pass.
Huckabee didn’t cost McCain the election; not even by a little bit. McCain showed incredibly poor judgment allowing his advisors to bring an absolute unknown on as his running mate. Huckabee appeals to an increasingly small portion of the conservative movement.
All McCain had to do was continue to point out Obama’s obvious lack of experience and youth, and then add a person with business experience on to the ticket and he’d have won. Instead, it was Obama who brought the “experienced” person on his team with Biden. Not that Biden necessarily had business experience, but people took him more seriously than the mayor of a small town in Alaska.
The day McCain announced Palin as his running mate (when everyone wondered who in the world she was or where she came from) he lost the election. It was as if he was throwing in the towel well in advance of the outcome. McCain took a risk that didn’t need to be taken. All he had to do was steer the ship in a forward direction; yet he managed to screw it up.
McCain’s incredibly poor judgment leading up to the election really exposed his weaknesses. Obama talked the better game and got the gig.
You missed my point… Had it not been for Huckabee, Tom McCann (aka John McCain) would have NOT been the Republican candidate – Romney would have been. Surely you would concede that Romney would have been the much better candidate than McCain. Religion would have been a non-issue. Hell, the country elected a man who was raised Muslim and after his supposed conversion attended a radical, racist Black Liberation Church. The country (at the time) wanted someone fresh, young, attractive, good speech reader, not a lifelong Washington guy…. Hence Obama. Romney had McLame beat on all those counts.
Yes, the one thing McCain had going for him was experience – but he pissed that away by picking Palin. I like her alright, just not for President.
If I were to find out for certain one day that the Republicans threw the election I would not be shocked in the least. Like they were thinking “…. let the people have this Marxist for 4 years… they’ll see… we will regain power in 2012 and rule for a millenium after that circus…” Four years is too long though. Nothing he passes could stand up to an up and down vote of the legal voting population.
I say all this with great appreciation of McCain’s service to the country. Most all great Americans and heroes are never elected President. No reason he had to be to secure his place in history.
I agree 100% with Keyser.
I cannot stand to even look at that asshat, Huckabee. That said, I’m not sure Romney would have helped no matter where he was on the ticket. It was a year for vilifying bankers, and Romney was and is first and foremost a Wall Street Baron.
In the end, I think Palin probably added a couple of points to McCain, but he was doomed from the day he got the nomination. Too conflicted with the base, in the end.
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I’m not going to get drawn into a political debate but small town mayor? She was the Governor of Alaska, you Moron.
“She was the Governor of Alaska, you Moron.
The difference being ?
TLT just hit 101……bonds don’t believe the FED bs.
No not true. it means the Fed is also buying bonds too. If they;re replacing the runoff everything should get a bid in the short term. Worry about inflation effects later.
All things being equal… and they’re fucking not… this should put a bid in bank stocks I think as the risk spread influence the Fed had/has will continue as they keep buying that shit in the market whereas that buying had stopped and they were in runoff. It doesn’t mean bank stocks will go up though so be careful, but it places some influence on the risk spread.
I’m now expecting that the ECB and the BOJ will do something too.
Attendez d’Allemagne!
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L’Allemagne.
“L” apostrophe mon ami.
Agreud… I was thinking “du” but that’s wrong… been a long time since high school francais.
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2.75% on the 10 year…comedy,pure comedy
Rather than putting a gargoyle fountain in the yard…
I’m just going to put a Ben Bernanke statue – peeing on the shorts
Bernanke = R. Kelly
Higher inflation is NOT good for stocks. As a matter of fact, the type of inflation that many gold bugs are clamoring for will ruin the United States. Now, if you are simply in it for a trade, so be it. However, nothing good can come from policies that extend the nonsensical policies in place, instead of moving forward with something that can actually help my neighbors buy more Coach bags.
That’s all true. But I agree with Credit Suisse’s paper from a while ago that i sent to you. The shit will hit the fan when the economy takes on a head of steam and Sovereign paper meets private market paper head on looking for money.
That’s when everything fucks up big time.
“What would you do for a Klondike Bar”
The billionaire guy is pretty much an asshole when it comes to education.
Obviously never been in a classroom recently and seen the idiot kids coming from some of these idiot parents.
These ex-hippie parents (if you can find them kid) are still stoned.
Shrt trm view – Fed voting and Hoenig dissenting is bullish – Former says fed will be easy. Latter says there is hope. Intermediate trm view – we are fucked
Heh-heh.
The fuckery / ponzi scheme continues. Why not just do nothing? No, they have to do something to make themselves feel useful.
Bernanke and crew must have bought new crack pipes.
I’m a reluctant long, but must remain long nonetheless.
Onward to the Fall!
This latest example of Ponzi-style paper pushing has pushed my ass right out of the market until either September rolls in or Iran gets provoked.
Higher inflation isn’t bad for all stocks (e.g., debt-free, consumer discretionary companies lose, while companies that levered-up to buy in-demand/exportable staples do very well.)
Inflation, over long periods of time, is, in fact, good for stocks. Simplest possible analogy: flash forward 100 years of deflation where a big mac is $0:25. Whatds mcd trade for?
How about if a big mac is $9.95?
Margins are cyclic but generally cycle around a norm. Inflation, ultimately, is GOOD. We are better off today than in 1955
Additionally, with chaos and for sure lagging somewhat, wages rise with inflation, and this mitigates the pressure of debt. As in a mortgage, which most people have to have to own a house. Etc
Avoiding deflation is good. That is not condoning recent govt and private debt parties ala ours
When you look at the big picture, inflation is like a tax. It’s a form of confiscation, brought on by goverment monetary / fiscal policy. It’s deceptive because it creates the illusion that people are prosperous when, in fact, they are not.
Asset – liabilities = Net Worth. That still has not changed.
and the fairest tax. everyone gets screwed equally.
Bullshit. Inflation hurts the poor far more than the rich, as the rich see asset appreciation on a grander scale than the poor.
I haveread comments like that in the past, and to an extent it is true. It confiscates the value of cash and equivalents. However, it also confiscates the value of debt creating wealth for debtors. The govt wants inflation so as to help itself (debtor), savers be damed. That’s bad. But for everybody on earth I know personally my age who can drop cash for a hosue (2), there are 200 who need a mortgage. And w/mild inflation and 10 years (so wagges eventually rise), that burden of debt falls while the value of hardassets like that tends to rise somewhat.
Hence I cannot see how inflation hurts the middle class. Indeed, we are better off today than in 1955
Further, “debtdeflation” forces are present globally. This probably grants considerableshelter from a huge inflation risk at this time. And for a long time to come.
I have wondered recently if we will have stagflation, but of the deflationary sort, for a few years. Not a crash, not the end of the world, but a multi year sideways slog in markets and economies
We are better off than 1955 because of technological development and value creation, not because of inflation.
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Indeud. Technological advances are always deflationary.
Helped along by the willingness of the world to give Americans, more than any other country, things of value in exchange for pallets full of currency.
Of course, but the anti inflationists lament rising prices of milk or a car without acknowledging the greater rise in wages. I got in this debate recently, hence my 1955 fixation.
It makes no sense why a home should go up in value, just because you live in it. It is a non-productive asset. It is not an “investment”. The materials from which it is made deteriorate and theoretically should LOSE value.
A house is like a car. You use it, and it wears out.
The government and the banks have, over the years, with the help of inflation, duped the consumer into thinking that home ownership is a sure way to be more prosperous. “Real estate prices always go up.” How many times did we hear that pre-2007?
Unfortunately, people had to get schooled, yet again, about how stuff works in the real world.
http://snltranscripts.jt.org/78/78dcarter.phtml
Lol, not bad at all
Get rid of the Federal Reserve and we end up with a larger institution with more power, owned by the same financial oligarchy (who are they? see http://www.save-a-patriot.org/files/view/whofed.html )
The IMF as world treasury is what we will get when the Federal Reserve is slammed in the media and then dismantled and replaced with something worse, as the solution.
The World Bank / IMF is owned and controlled by NM Rothschild and 30 to 40 of the wealthiest people in the world. The same folks who own the Federal Reserve.
Sure, slam the Federal Reserve, but be aware that at the same time your criticism is being leveraged to create something worse.
checklist, you are an idiot
that’s all
I have seen the light. Deflation is the friend of a debt laden society and the middle class! Because they, of course, will never suffer wage decreases as a result.
Quantitative Pleasing