Wanna See/Hear my Morning Rant?

I do a little show each morning for “the folks”. I’m posting today’s show here.

I explain a bit about what the FED is trying do. Sneaky Bastards!

be careful as IT’S LOUD!

CREATECAPITAL MORNING SHOW FOR 9/21/12

 

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Railroads. Radio. Nifty Fifty. Personal Computers. Biotech. Internet

You see that every few decades there are new bubble/booms. And in every new boom there is a bubble in a few of the leading names.

In the most recent Internet boom the stocks everyone had to own were the “Four Horsemen” of Microsoft, Intel, Cisco & Dell. They peaked with a market value of nearly $1.5 trillion. Combined they bottomed just a few years later with a value of of $250 billion, a loss of 80% from peak to trough. They have since doubled off their respective low-water mark to a market value of about half a trillion.

Today that group is comprised simply of Apple, Google & Amazon. Currently they sport a market value of just over $1 trillion. At their low water mark, at their 2008 lows, they traded with a market value of about $170 billion. They are up almost 500%.

In each bubble/boom, the names that “everyone must own” become ridiculous, yet are justified at their time. Today is no different.

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I guess that ZeroHedge has been right for the past four years; QE Infinity was the endgame, and it most certainly is. The only thing next is “how much”. And after the “stimulus” doubles and doubles again, the markets will be so sated that they won’t move higher. Then comes the inevitable collapse.

But until then, financial firms will lever themselves 100:1 with MBS paper and commodities until there is nobody left to buy.

Even though many “stimulus sensitive” stocks are up 10-20% in the week previous to the FED’s announcement, there is nobody, and I mean nobody who suggests to fight the FED even now and in the foreseeable future.

Simple things like “supply & demand” and other quaint economic facts go out the window. Prices rise because of Free Money destined only for “assets”. Fuck everyone else. Don’t worry that the government will run out of money, the FED can print all it needs. I wonder when Congress will figure this out and print for themselves.

It is an historic event in the history of Capitalism and Free Markets because it is the time when it is no longer “officially” Capitalism and Free Markets. Certainly you cannot argue that fact.

In a Twitter stream of consciousness, I posted the following after the FED’s announcement. It’s obvious that I tweet too much…

 

BIG OIL & BANKERS ARE PRIMARY BENEFICIARIES OF OBAMA PRESIDENCY

Money for banks & government only. NO MONEY FOR YOU!

$40 B a month? That’s not even the MONTHLY DEFICIT

THIS DOESN’T HELP THE ECONOMY. IT ONLY HELPS BANKS WITH SHITTY MBS PAPER

will someone send me couple of thousand a month for MY mortgage?

sell stocks/buy the shittiest MBS paper you can find. MAGNATAR where are you?

YOU WONDER IF THIS HELPS BANKS? LOOK AT THEM!

Political FED? Nah….lolz

OPEN-ENDED IS THE ENDGAME

we’re gonna need Volker again when Bernanke gets done…

It’s not WHAT you know, its WHO you know. At the FED

THIS THE MOST IMPORTANT DAY IN THE FOUR YEARS SINCE THE CRASH. THE ENDGAME OF OPEN-ENDED QE. Dow 15k next

THE FED WILL BE ALL THE DEMAND YOU WILL NEED for anything financial. God Bless America

“Brain Dead Long Only” through thick and thin? Bernanke has again made you a genius. Congrats!

I dont know even one person who thinks or would bet that the market could or would go down

And this Gaping Open Ended stimulus is the last bullet. All they can do is print more until they own everything

POMO of $4 billion a day this year and $2 billion a day forevermore. Incredable

Government printing money to by financial assets from investors. This is clearly the greatest scam ever perpetrated anywhere ever

Government in danger of a shutdown. They need to cut trillion dollars from the budget. And the FED just promised unlimited cash to markets

There is something SO WRONG with this picture!

Bernanke has assured that Wall Street will NEVER expect an economic recovery. Free money trumps recovery

If Greenspan knew how easy it would be to juice the market with Free Money we would have certainly peaked at Dow 30k

There is not one person, not one investor, not one publication, not one biz media entity that believes that the market can or will go down

soon, very very soon, the price of commodities will absolutely choke 99% of the economy and its participants

So, Bernanke would clearly rather have higher asset prices vs. a growing economy. In fact he has now “stripped the gears”

Next year the monthly POMO outlay will be doubled. The following year it will double again.

Supply & demand equilibrium will be suspended. Commodity prices will levitate where few will buy, yet prices will continue be “overpriced

It is a scam of the highest order. It will be remembered as the largest looting of wealth in human history. Shame

There will never be a day of reckoning until we are dead and gone.

Free Money Forever is the most important invention since the creation of currency

Let me repeat: Open-Ended is the endgame. Now its just how much till the end…

Banks: “Help us, we lost 4 trillion dollars!”. Bernanke: “OK, here’s the money”

Greenspan is kicking himself that he should have been doing this money printing every month since 1987

Soon you will hear (unchallenged) the ASSHOLES on TV that will tell you that commodity prices r rising because of demand from China & India

So lets roll em up and smoke em. Enjoy!

 

So there! By the time Ma & Pa get around to believing the markets, the Algos will only be too happy to sell. Have a safe and happy weekend!

 

 

 

 

 

 

 

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If there is no QE today, markets will dip quickly but will be bought in anticipation of QE later.

If the FED only institutes “half measures” the markets will dip but will be bought back in anticipation of more stimulus later.

If the FED does QE today the markets will dip on a “sell the news” reaction but will be bought in anticipation of all that free money.

If the FED announces no more stimulus, the market will sell with no dip buying until about Dow 12k.

As you know, Markets, Banks and Governments  REQUIRE endless trillions in stimulus just to pay their bills and to keep the masses placated in The Matrix.

What do YOU think they will do?

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Here we are, facing another dose of “stimulus” with commodities and market prices at multi-year highs. So how can more “borrowing” or “printing” be justified?

The answer is that it doesn’t have to be. Central bankers will lie and tell you that it is designed to stimulate the private sector of the economy. It has not, nor will it do no such thing. It is designed for one purpose: to allow governments to continue their deficit spending in an economy that will not provide enough tax revenue. And it won’t matter who is President. It won’t change a thing.

There, I said it. The governments around the world could not fund their spending if Central Bankers didn’t create capital (no pun intended) that “gives” money to investors so that they can buy government bonds. And the extra money goes into assets so there are profits for the “Vigorish”.

Even the government loving New York Times admits it! 

And don’t even ask about people who need to live off the interest. They are forced to buy yield-oriented stocks, at any price. Or to chase “growth”.

Any student of history knows that this will obviously end it disaster. But before that there will be inflated “false” riches for those who are smart (stupid) enough to pick up nickles in front of the steam roller.

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So, that’s it. Everyone KNOWS that nothing can touch this market. It is bullet-proof, Teflon coated, with Central Banks guaranteeing lower prices will not be tolerated.

You’ve been told that all the bad news has been discounted and the markets are climbing the wall of worry as money managers chase performance. The reality is that the market has rather discounted trillions more in free money and has ignored any and all risk. The free money is what is built-in.

Dare I say that your training is now complete.

I firmly believe that the timing of yesterdays European announcement of unlimited bond buying, the Democratic Convention and a new four year market high is a seminal event. Some say we are in breakout mode yet most breakouts fail. And volume is rising.

It has been folly to bet against the overall market in the current low volume, illiquid environment. But the election silly season is upon us and anything could happen.

True, the FED meets next week and after today’s shitty employment number and the bullshit unemployment rate, everyone is again calling for more QE. And the chase is on with the “big beta” stocks moving sharply higher. If I were a degenerate gambler, I would play these insane stocks “fast & furious style”.

But I wouldn’t let my guard down for a second.

And BTW, if the market stays here, Obama wins.

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