54 replies to this topic

[zoropb]

if we hit 60.25 now before higher we likely bounce a little and correct to 60-58

[SemiBizz]

Here's another shot, apparently taken today in S.Korea from Huff Post.

If you saw one of these things at night in stealth mode, wouldn't you swear it was a UFO?

[PrintFaster]

The ongoing worship of Ben's Fiat World goes on unabated.

Amazing how the economy is still weak, earnings warnings everywhere, yet stocks are sitting at highs.

At the same time, billions in U.S. Fiat Paper unloaded to hungry investors, each of these issues is always 250% oversubscribed.

NEW YORK (MarketWatch) -- The Treasury Department sold $29 billion in 7-year notes 7_YEAR +1.33% Thursday at a yield of 1.248%, the lowest yield since December's auction. Bidders offered to buy 2.56 times the amount of debt sold, compared to an average of 2.66 times at the last six sales.

Pretty much a "perfect world" for Bernanke. Low rates, no inflation, investors still clamoring for bonds, and stocks sitting at highs with very little retail participation outside of mandatory 401(k) accounts.

[tomterrific14]

The ongoing worship of Ben's Fiat World goes on unabated.

Amazing how the economy is still weak, earnings warnings everywhere, yet stocks are sitting at highs.

At the same time, billions in U.S. Fiat Paper unloaded to hungry investors, each of these issues is always 250% oversubscribed.

NEW YORK (MarketWatch) -- The Treasury Department sold $29 billion in 7-year notes 7_YEAR +1.33% Thursday at a yield of 1.248%, the lowest yield since December's auction. Bidders offered to buy 2.56 times the amount of debt sold, compared to an average of 2.66 times at the last six sales.

Pretty much a "perfect world" for Bernanke. Low rates, no inflation, investors still clamoring for bonds, and stocks sitting at highs with very little retail participation outside of mandatory 401(k) accounts.

http://en.wikipedia.org/wiki/Assignat

[salsabob]

Looks like we will close out the month with he 10-yr. yield below 1.90%

That will be the 11th consecutive monthly close under 2%, which is a new all time record since the 1950's.

And who would have believed that ES would be over 1550 with rates still so low?

And no inflation found anywhere.

With plenty of room to print more money and rack up even bigger deficits.

Truly, we are witnessing an economic miracle in real time.

While there is much to agree with (e.g. low interest rates, lack of inflation, presently buoyant equities, even Big Ben's brilliance), I believe you MAY be missing some nuances that could cost you considerable in the months ahead.

The FED does not "print money;" instead, it keystrokes-in bank reserves which is 'inside score-keeping' among the banks - it never sees the light of day in the real economy. Some folks believe that this may encourage banks to lend money (and that IS how most money is "printed" - the US Treasury does issue paper/coin currency but that is tiny compared to what the banks "print"). Those folks are generally wrong. What the FED does is control interest rates, presently keeping them low so as to entice borrowers to borrow; bank lending remains, as always, driven by finding what they consider willing and credible borrowers (what they consider "credible" varies depending on lots of things but particularly what level of hassle the bank regulators will put them through, e.g. not much prior to 2007 but a whole bunch since then).

The FED's ability to prop up is therefore limited to what low interest rates can do, both in reality (keeping borrowing cost low) and emotionally (from wealth effects to hyperinflation hysteria). Most importantly, the FED cannot add demand for goods and services in the economy, at least not directly (they hope borrowers will do that instead).

Importantly, demand can be added by the private sector primarily by taking out credit one way or another. Exports can add demand as well, but for the US, on net, our trade deficit is a drain on demand in our economy. There is only one sector that, from a nonpolitical perspective, has unlimited ability to add demand without any real borrowing (or for that matter, having to increase revenues) and that is the US Congress.

The FED can facilitate, maybe to the point of blowing asset bubbles again (hopefully not), but there are limits to this and every other economy without real demand growth. Don't loss sight of the basics even when one is hearing pleasant echos of a previous asset bubble that didn't end well.

[SemiBizz]

Jim Rogers: 'Run for the Hills

The EU/IMF precedent of raiding bank accounts in Cyprus to bail out the country's financial system sets a dangerous precedent and investors should "run for the hills" said investor Jim Rogers, chairman of Rogers Holdings, on "Squawk on the Street" Thursday.


Rogers said that with Cyprus, politicians are saying that this is a special case and urging people not to worry, but that is exactly why investors should be concerned.

"What more do you need to know? Please, you better hurry, you better run for the hills. I'm doing it anyway," Rogers said. "I want to make sure that I don't get trapped. Think of all the poor souls that just thought they had a simple bank account. Now they find out that they are making a 'contribution to the stability of Cyprus. The gall of these politicians."


"If you're going to listen to government, you're going to go bankrupt very quickly," he added.


"I, for one, am making sure I don't have too much money in any one specific bank account anywhere in the world, because now there is a precedent," he said. "The IMF has said 'sure, loot the bank accounts' the EU has said 'loot the bank accounts' so you can be sure that other countries when problems come, are going to say, 'well, it's condoned by the EU, it's condoned by the IMF, so let's do it too.'"

[PrintFaster]

Hilarious how certain Fed haters like Marc Faber and Jim Rogers are screaming and yelling telling people to get money out. Yet today investors are voting with their feet and buying more U.S. retail and airline stocks, piling into U.S. Treasuries, and gold is getting dumped. You would think bank stocks would be imploding, gold would be up $75 in two days, and stocks would be slumping as trust erodes. But the sheep are more emboldened than ever, due to the sheer brazen confidence of guys like Bernanke, Draghi, and Uncle Abe.

[SemiBizz]

Sure is a good thing Cyprus is a "one off" eh?


Canada's Bail-In Plan for Systemically Important Banks Is Credit Negative

[zoropb]

This comment has nothing to do with the stock market. I would think after cyprus it is prudent to spread ones accounts all over the place. I am. I do not need to be told twice or find out the hard way like others have.

[pdx5]

Maybe they are buying on the "cannons"

US Sends B2 Bombers To S. Korea...

Yes, very cool pic! That B-52 is so scary looking, must make enemies feel like a mouse on the ground looking at a huge owl diving at him.

Edited by pdx5, 28 March 2013 - 12:36 PM.