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Bernanke's "Wash/Rinse/Repeat" Cycle is Intensifying

Started by PrintFaster , Apr 22 2013 08:49 AM

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#1 PrintFaster

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Posted 22 April 2013 - 08:49 AM

Bernanke has engineered the perfect "Goldilocks" market, whereby.

- Stocks make higher highs and higher lows

- Each equity market selloff results in even more explosive surge in bonds, sending interest rates even lower

- CRB Index gets pummeled, providing much needed "tax relief" for the consumer

- Flight to safety continues into the U.S. Dollar, enabling the Fed to step on the gas harder and print even faster in the future

- Successful "Jawboning" and "Pie-Holing" about rolling back QE sends gasoline prices reeling

- Ongoing crisis somewhere else in the world sends global investors fleeing into U.S. blue chip stocks

- Fears of inflation can be instantaneously evaporated with coordinated gold sales at COMEX


I mean really, can it get any easier than this?

Look at the bonds fly!!!

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Edited by PrintFaster, 22 April 2013 - 08:53 AM.

#2 PrintFaster

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Posted 22 April 2013 - 09:06 AM

Hysterical how the gloomers and doomers and gold bugs are claiming new physical market and huge shortages everywhere yet the biggest and most popular dealer here in Florida has everything in stock at reasonable premiums.

Gainesville Coins

#3 PrintFaster

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Posted 22 April 2013 - 09:23 AM

ES over 1,540 and the 10-yr. at 1.69% and 5-yr. at 0.69% And Dow stocks like JNJ, MRK, PFE, HD, going parabolic while money velocity slows to a crawl. Best of all worlds for a sustained multi-generational bull market.

#4 ogm

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Posted 22 April 2013 - 09:38 AM

So would you be surprized if Bernanke continues printing, and the treasury yields keep falling and commodities continue imploding, .... and the stock market sells off ?

#5 PrintFaster

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Posted 22 April 2013 - 09:59 AM

Eventually low interest rates starts stoking Animal Spirits And low commodity prices spurs an industrial boom as materials prices become very inexpensive Then begins a rotation out of staples and utilities and into materials and cyclicals and the bull market continues with growth and economically sensitive groups leading the charge The last two market tops saw utility stocks falter first while cyclicals were coming off the highs after monsterous runs. Utility stocks are still climbing and cyclical stocks haven't really run hard yet, which means the bull market is still very young.

#6 pdx5

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Posted 22 April 2013 - 10:43 AM

Who will buy the marvelous products made from cheap commodities? Where are the jobs so people with paychecks can buy stuff? Lowest number of people have jobs since 1982. Interest rates have fallen in every depression era, printing or no printing! We are fast becoming another Japan... no jobs, no economy. But Japan has one hammer we don't have...personal savings. Lot of their debt is funded internally. Ours is owned by foreigners 45/100. We dare not raise interest rates since we can't pay all that servicing the debt cost. Just like Japan! Like I said before, enema works only when given from the correct end. Stimulating banks instead of jobs is the wrong end. Jobs are stimulated by stimulating entrepreneurs with low taxes and regulations, not banks. All the QEx's have accomplished so far are massive distortions in the economy. The stock market will be the next domino to fall. Take cover!
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#7 salsabob

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Posted 22 April 2013 - 10:57 AM

I see my wealth accumulation source is rotating to the supply siders. I'm just hoping that there will be some good overlap for a while with the present source that's been coming from the inflationisties. :banana: Interesting times.
John Galt shrugged, outsourced to Red China and opened a hedge fund for unregulated securitized credit derivatives.

If the world didn't suck, wouldn't we all just fly off?

#8 SemiBizz

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Posted 22 April 2013 - 11:04 AM

In the end here... this little discussion about inflation and deflation has replaced what used to be in the 90s, the guys who thought the F'eds would hike 1/4 - 1/2 % and the guys who were looking for rates to hold steady.... The F'eds don't have any flexibility now on rates, so this little game has replaced the old one. So that's it, alternating images of deflation and inflation are flashed and telegraphed by the bankers... Net/Net Zero.
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#9 PrintFaster

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Posted 22 April 2013 - 11:08 AM

Nice u-turn in IEV (Europe) New highs for the move in NQ Nice intraday moves in the high end consumer names (WFM, SBUX, TIF, LULU, etc.) All banks are green now :rolleyes:

Edited by PrintFaster, 22 April 2013 - 11:12 AM.

#10 ogm

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Posted 22 April 2013 - 11:14 AM

I see my wealth accumulation source is rotating to the supply siders.

I'm just hoping that there will be some good overlap for a while with the present source that's been coming from the inflationisties. :banana:

Interesting times.


Deflationary depression.. thats all there is.

Falling rates, falling commodity prices, falling revenues, falling wages, ... will translate into falling corporate profits and falling markets.

Edited by ogm, 22 April 2013 - 11:16 AM.

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