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Tag Archives: QE

Dow briefly plunges 300 points; biotech pushes Nasdaq 3% lower

We’ll see how the rest of the day pans out. At this moment we’ve got an hour and a quarter to go. But medium term sentiment on Wall Street appears to be be shifting as we see yet another day of broad selling.

It’s been a weird ride since midsummer. Mostly down but with a few big pops up. The Dow is off 2000 points or so from its high. People are starting to look around with a little more adrenaline in thier veins. Is this it? Have we run out of gas? Are the predictions of the Fed critics coming true?

Again, we’ll see.

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Schiff: I’m right about the Fed, I’ll be right about stocks, “Economy rapidly decelerating”

3 bold statements just in the headline, but even CNBC granted that Schiff deserved to take what it called a “victory lap.”

Schiff argues that the Fed does not plan to raise rates at all because it can’t raise rates. 7 years ago with the start of ZIRP and QE Schiff says the Federal Reserve entered a “monetary roach motel.” That the Fed is now stuck. Which is of some concern to say the least.

It should be noted also that there seems to be a lot of talk about less than 0% interest rates as of late (LZIRP). So what does that tell you?

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Goldman Sachs should have died in 2008, Now its CEO, Lloyd Blankfein is a billionaire, Thanks taxpayers…Suckers!!!

There is some debate around here as to the world’s most crony company. There are many candidates but consistently in the top 5 or so is Goldman Sachs, Government Sachs.

Few companies have exploited the taxpayer and political connections to the extent Goldman has. Truly it is a company built fundamentally on cronyism.

In 2008 Goldman Sachs was leveraged more than 100 to 1 on its assets. (That is probably a conservative estimate.) When the economic tide turned it was fully exposed. It should have died the disgraced death it deserved. It should have been crushed under the wheel of the market.

Goldman however had a former CEO at Treasury, Hank Paulson, who bailed out his buddies with money taken from taxpayers.

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The world is defenseless against the next financial crisis, warns ‘central bank of central banks’

The reason we had the Crash in 2008 was because the Fed kept rates too low for too long. In response to the tech implosion and then the 9-11 attacks Allan Greenspan and the FOMC panicked and ended up inflating a worldwide housing boom which morphed into the disaster (to put it mildly) which is the Great Recession. There’s more to it than that but that’s basically what happened.

Consider now that Ben Bernanke (and Janet Yellen) have kept interest rates much lower for even longer than Greenspan did.

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Negative interest rates put world on course for biggest mass default in history

Call it the new abnormal.

Since 2008 the world has been turned upside down. In our collective panic we have disrupted whatever used to pass for economic homeostasis. Now the globe is moving (moved) toward a negative interest rate environment for government bonds.

Please, take my money. I’ll pay you to take my money! Why am I paying a government to hold my money? Well, because the economy is so healthy of course.

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David Stockman: ‘There Are No Markets, Just a Raging Casino’

Oh, it’s a bull market alright. Can nothing stop the QE induced party? The sun has come up and set a few times on this market, yet the DJ is still pumping the music and most importantly the drug dealers are still milling about the crowd.

Ibiza in pinstripes. Or if you prefer Las Vegas in pinstripes.

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Another Oligarch Preaches to the Peasants – Charlie Munger Says “Prepare for Harder World”

I’m not a fan of Charlie Munger, Warren Buffett’s right hand man. I haven’t been a fan for a long time but this statement back in 2012 really annoyed me.

Such arrogance. I’m sorry Mr. Munger but not all of us get to drink from the Fed’s fire hose of easy money. For many of us gold is a last resort. Not an investment per se, but a hedge against guys like you. Of course you know that and that’s why you said what you said.

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