Posted on 01/28/2011 5:18:56 PM PST by Frantzie
Jim Grant, who will never be accused of being a fan of the Criminal Reserve, and whose views on what will happen to asset prices in a printer-happy world are gradually being validated, appeared on Bloomberg TV, telling Margaret Brennan upfront that Bernanke owes the world an apology. Alas, after various revolutions around the world have been catalyzed by Bernanke's policies, we have a feeling that ever more oppressed people will soon see the Printer in Chief as a patron saint of violent revolution, alas against crony regimes fully supported by the US (and hopefully the US will view it the same way when its time comes). That aside, Grant's criticism of the Fed should really start to grate on the Chaircreature: "I think what would be very good for the Fed if there would be a confession, the Fed should confess that it has sinned grievously, and is in violation of every single precept of its founders and every single convention of classical central banking.
(Excerpt) Read more at zerohedge.com ...
Be careful of any shorting but I am not sure they can keep this up. The Ben Bernank will try and the printing presses run all night.
NASDAQ is all prop traders, hedge funds, etc. Some tech companies are showing real earnings and products being bought overseas with currencies that are not totally worthless.
All the big bank earnings coming with “great” earnings are pure accounting fiction. The JP Morgue and Blythe Masters have been manipulating the silver and copper markets.
Since they nuked the markets in 2008 with their moles at Fannie and Freddie pre 2008 Rahm and Gorelnick, the Sandlers at World Savings and others. They set up the nuking of the banks in the CDS market. Since the islamic took power it has been slowly manipulated up. Almost every say is flat or slightly up.
No, Chris Vermeulen, thegoldandoilguy.com ... I’ve been subscribing to his TA for several years. He’s pretty good, IMHO.
I don’t trade the NASDAQ.
I short daily highs of two blue chip stocks which is a way of risk management in what is most likely a market top.
If it were a market bottom, I would be attempting to buy daily lows.
He doesn’t give specifics of how they are doing it. My best assumption would be that since it’s the Fed, they just print (digitally create) as much money as they need to make purchases in the stock market to either drive it up, or keep it from tanking, depending on their purpose in the particular instance. Then I would guess that they would gradually unload the stock once their purpose has been accomplished. Since they are “creating money” out of thin air, it wouldn’t make any difference if they “lost money” or not at the end of any particular scam they ran.
As a trader, I just get out of the way when the Criminal Reserve is pumping the market and get back in the game when things quiet down and we are somewhere closer to a free market.
Yeah, but how does this tie into those bastard Muslims on Faux News coming into our boob tubes in glorious zombified HD?
The thing that I notice is that the DJIA tracks the Euro pretty faithfully. When the DOW dropped ~150 today, the Euro was down about 0.012 against the dollar. To me this indicates some kind of interaction with currency exchange on a technical level, but I don’t pretend to understand it. I think the whole market is very “technical” right now and floats to a certain level based on various programs and parameters. I’d love somebody to explain it to me, but on the Yahoo Finance page, e.g., all we get are inane ad hoc explanations correlating every move with some news item.
You mean Prince Al Waleed’s Fox News? Or his Disney? Or his Time Warner/CNN? or his GE/NBC/MSNBC/CNBC? He has major money in all plus deals with Bloomberg and Viacom/CBS.
Or his Citicorp that was bailed out for $380 BILLION by hussein and YOU?
It’s not too complicated.
The Fed is creating money in computer accounts for select member investment banks such as Goldman Sachs, JP Morgan Chase etc.
The member banks ‘borrow’ this money creation at 0.25% (quarter point) and use it to buy Treasuries at 2.75% (prop up the insolvent federal government and the banking system) and selected Stocks that form part of the major indices. The reason they are doing the latter is to restore and maintain the value of retirement accounts so as to stave off a full-scale revolt by America’s most influential voting bloc, the boomers.
The member banks are NOT making loans (except in rare instances) to businesses or to housing. All the money, the phantom money they get goes to propping up the federal government (monetize the debt) and the stock market (prop up retirement accounts).
The select banks are given a spread of 2.75% - 0.25% = 2.5% of which part pays themselves including their bonuses and part pays for them to play and control the stock markets.
Large banks such as Goldman, they make the markets using their many hedge fund subsidiaries. These hedge funds use high frequency traders to control a program of surges and pullbacks in key influential stocks. There is no market presence that can overcome their programmed trades.
In sum, banks control everything right now and they warn that if anyone attempts to change their staus quo that there will hell to pay.
Thanks for the explanation.
That’s really disgusting but it explains alot.
The banks have no incentive to make any loans right now. They can make all the money they want loaning money from the Fed risk-free. It’s free money!
And they are propping up the stock market way better than the old Plunge Protection Team ever was able to because they have lots more funds available.
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