Somewhere I bookmarked the POMO (permanent open market operations, aka FED counterfeiting) schedule for March. In a nutshell- anyone shorting the market this month is crazy. I remember that Mar. 15 is the juiciest day of the month...
With the Fed buying mortgages and treasuries hand over fist- 5 billion on Friday alone- you simply have to stand out of the way. The banks selling the FED these products are going to park that money in the market. The great tulip craze continues.
This is a market that you cannot go long on- you cannot short (right now) however, I am convinced the grand experiment is almost over. Bernanke's going to keep the accelerator mashed on the floorboard right up until his term expires Jan 31, 2014. By that time the full scope of Obamacare will be on display and there is not a doubt in my mind that Bernanke will get the fuck out of Dodge.
I continue to be in awe, daily, at the greatest zombie stock market ever created. With trillions of debt added, reduced corporate earnings which were earned and off shored, reduced wages and shitty jobs, rising inflation and taxes, some expensive Obamacare taxes with horrible coverage on it's way, and a media culture absolutely owned by the state- Ben Bernanke's thesis continues.
How would you like to be the poor sap that follows this shit up? Not me. Forward to smartassery.
Here's the deal. You simply can't ignore the effects of FED intervention. They have taken an absolute dead patient (US economy) and injected epinephrine and defibrillated it with trillions upon trillions of anti-deflation dollars. (stimulus, gawd how I have grown to hate that term) How long can they continue to keep the patient alive?
Who knows? Just because the patient's heart is beating doesn't mean he is going to sit up and run a 5k.
Nobody really likes a smart ass. Especially a smart ass who thinks they are brilliant. They annoy those of us who really are brilliant.
Which brings me to the salient point. I simply can't deny the illusion of a healthy market that the Fed has created. The simpletons would like to forget the inconvenient fact- that this illusory and healthy market was created and manufactured with the aid of trillions of dollars in the form of QE 1,2,3, Operation Twist and Now QEternity at 85 billion a month. Trillions of debt which somebody is going to have to pay.
The smartasses always and very inconveniently forget to mention the brontosaurus in the room. It is simple. You ain't rich if you have two million and owe the IRS 6 million.
It's a funky delusion. The same one that is occurring daily in the U.S. as I write. However, right now the sheep are winning. The delusion is working up until some point at which somebody else will say- "I want my fucking 16.6 trillion or I am gonna double or triple the interest" which some will say is metaphor, others inevitable, as future generations are taught to hate us and rightfully so.
So as you gaze at this piece of smartassery, quite possibly written by the same authors as those who write at naked capitalism, note the absence of that most inconvenient of facts. That Hauser's Law states that you can't tax yourself to prosperity and you certainly can't do it beyond 19.5%-
All debts are paid, either by the lender or by the borrower. That includes that 16.6 trillion with a currently flat lined GDP.
Convince me oh great optimists how we are going to take care of that. How are we gonna pay that debt? If you can do that- I'll renounce my doomer status and extoll your brilliance.
I have 2000 years of recorded human history and tragedy on my side. Right now I am losing and the sheep are winning. But that will change. It always does. I can almost taste that Gyro sandwich now.
Here's the counter view to all that which I hold near and dear. Who says I don't play fair? http://nihoncassandra.blogspot.com/2013/03/take-zero-hedge-test.html