by Larry Levin
This video is quite good - no singing this time - in which James Grant is interviewed by Tom Keene of Bloomberg. James Grant is a very intelligent long term thinker, publisher, and investor. In the video he gets right to the issue of the Fed: he slams it and calls QE money printing, which it is.
http://www.bloomberg.com/video/63591216/
The Fed was also slammed by Bill Gross of Pimco today. In a very direct note to his clients, he calls the Fed's nonsensical meddling what I have been calling it: a Ponzi scheme!
"It seems that the Fed has taken Charles Ponzi one step further. Instead of simply paying for maturing debt with receipts from financial sector creditors – banks, insurance companies, surplus reserve nations and investment managers, to name the most significant – the Fed has joined the party itself. Rather than orchestrating the game from on high, it has jumped into the pond with the other swimmers. One and one-half trillion in checks were written in 2009, and trillions more lie ahead. The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need – as with Charles Ponzi – to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not. This one is so unique that it requires a new name. I call it a Sammy scheme, in honor of Uncle Sam and the politicians (as well as its citizens) who have brought us to this critical moment in time. It is not a Bernanke scheme, because this is his only alternative and he shares no responsibility for its origin. It is a Sammy scheme – you and I, and the politicians that we elect every two years – deserve all the blame..."
Backstop-Ben's big day, the MEGA-Ponzi announcement, is coming soon. He will be putting this nonsense into OVER DRIVE next week. If Helicopter-Ben kills the bond market, as Bill Gross's note goes on to say, he will have killed this country. Like Japan, the USA can NOT afford a sustained increase in interest rates at the long end of the curve.
http://www.bloomberg.com/video/63591216/
The Fed was also slammed by Bill Gross of Pimco today. In a very direct note to his clients, he calls the Fed's nonsensical meddling what I have been calling it: a Ponzi scheme!
"It seems that the Fed has taken Charles Ponzi one step further. Instead of simply paying for maturing debt with receipts from financial sector creditors – banks, insurance companies, surplus reserve nations and investment managers, to name the most significant – the Fed has joined the party itself. Rather than orchestrating the game from on high, it has jumped into the pond with the other swimmers. One and one-half trillion in checks were written in 2009, and trillions more lie ahead. The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need – as with Charles Ponzi – to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not. This one is so unique that it requires a new name. I call it a Sammy scheme, in honor of Uncle Sam and the politicians (as well as its citizens) who have brought us to this critical moment in time. It is not a Bernanke scheme, because this is his only alternative and he shares no responsibility for its origin. It is a Sammy scheme – you and I, and the politicians that we elect every two years – deserve all the blame..."
Backstop-Ben's big day, the MEGA-Ponzi announcement, is coming soon. He will be putting this nonsense into OVER DRIVE next week. If Helicopter-Ben kills the bond market, as Bill Gross's note goes on to say, he will have killed this country. Like Japan, the USA can NOT afford a sustained increase in interest rates at the long end of the curve.
Previous Day's Trading Room Results:
Trade Date: 10/27/10
E-Mini S&P Trades*
(before fees and commissions):
Trade Date: 10/27/10
E-Mini S&P Trades*
(before fees and commissions):
1) OTF buy @ 11:35am at 1170.75 = -1.50 (1)
2) Algorithm positions (8)
3) “Reading the Tape” positions (11) combined Secret’s, Algo, & “Reading the Tape” total… -2.00
Sign up as an AvidTrader Member to receive "The Technician" Value Area's each day. The market then has an 80% chance of filling the Value Area. Many traders familiar with the Value Area and the techniques that go along with it use it to help them decide what trades to do each day. Join and see how this technique can help you trade more successfully!
No comments:
Post a Comment