Wednesday, April 3, 2013

The Blow Off Top Is Finally Here

For years, I have predicted the end of equities and a stock market collapse. I have been wrong. I have been wrong because of a number of things- but that's all about to change. Briefly...

Nothing has changed since 2008 in terms of regulating banks, regulating the FED, or even changing the laws regarding how banks are allowed to "over value" assets. The FED has added trillions of dollars of liquidity to our economy which in turn has allowed financial institutions to literally run the price of the market into the heavens. Zero Interest Rate Policy or ZIRP continues unabated while the ministers of propaganda tell us inflation is essentially non existent- which anyone buying a 10 dollar can of coffee that is missing 17 ounces of contents of the lesser expensive "Supremo" bean- will tell you is bullshit.

Job numbers are getting better only because employers are job splitting. They are taking full time jobs and chopping them in half so that they won't have to pay for Obamacare. This creates the illusion of improving jobs numbers. The ministers of propaganda are massaging home numbers too.

The metals markets are getting crushed and forced down by the bankers. This keeps inflation at bay and it also dissuades anyone from investing in something other than the stock market.

Is this a conspiracy? Of course it is. Everyone wants to run the market higher. Obama does, Bernanke does, bankers do, hedge funds do, Americans do. Everyone wants the grand illusion of wealth to continue. And it will- unabated and unstoppable-up until such point that Bernanke turns off QE. Which begs the question.

If this inflation free, job creating and house selling economy is so KICK ASS- why don't they stop QE? Why don't they stop buying 85 billion dollars worth of treasuries and home loans each month and just let this market behave independently and on it's own?

Answer. They can't. The market will collapse. They have created a monster.

This is the great conspiracy that we are all a part of whether you want to be or not. We are powerless to stop it. All we can do is watch as the market grinds higher and higher. Good news, bad news, horrible news. There is no other place to make a return on your investment. The bankers have ruined all of them. The market can only go up until it cannot- which incidentally- will make one of the greatest short selling opportunities of the last 1000 years. 

The blow off top is finally here. All bear markets start with a blow off top- a giant rally where every last  man who has a dollar to invest is invested before it all collapses.

In 10 months, Ben Bernanke will literally run for the exits. He has already said he will. His successor is going to be left with a shit pile so enormous it will make the Panama Canal project look like weeding a flower pot.

What will they do for an encore? I've learned a hard lesson on this blog. You can NEVER predict the levels and lengths that these manipulators are willing to go to- to create an illusion of wealth. I can't even imagine what they will try in early 2014 when Ben disappears. I know this.

The market is up over 100% over the last 4 years. This CAN continue until such point that the FED finally believes its own bullshit. When they trick themselves into believing that our economy is good and that it can stand on it's own without intervention, that's when this will get interesting. They might actually try and stop QE. If they ever announce that QE is ending it will be too late for us. They will have already told their friends- the market will be inexplicably sideways or down even while QE continues- because their banker buddies will be quickly and quietly distributing shares to the suckers. By the time the ending of QE is announced- it will be too late for the small fry investors. Forget those FED meeting minutes. Pure theater and bullshit. The FED Governors know everyone in the free world makes investment decisions based on that tripe. What they really think will never be in those minutes.

If we ever want our Republic and free markets back- we must destroy the FED. Permanently. In the meantime- just sit back and watch this insanity.   


Anonymous said...

It is just a matter of time. You have probably read this article at Zero Hedge on David Stockman's opion. He very much agrees with you.

Anonymous said...

Tell me about it! I don't know why I even try, not only was my stocks down yesterday...I had bought one of those 50 gram Swiss gold chocolate bars(lol) thinking I did so well when gold was $1595...cause I said if it went down below $1600, I'd buy a little more. Of course 5 days later it tanks...FMITE! Nothing makes sense, it's so obvious how corrupt it is.

Anonymous said...

Don't be too sure about the market entering a "blow-off top" phase. If John Williams is right and hyperinflation is lurking around the corner, the equity markets could be at the point where they begin to take off like a rocket. It happened in Zimbabwe as their currency plummeted, it could happen here (perhaps not to the same degree, but in this insane world, who is to say what the future holds?). The future ain't what it used to be.

Brian said...

Excellent point. I stand corrected and while I don't think hyperinflation is here YET, I think its coming. The Zimbabwe market went through the stratosphere but all of your stock certificates weren't worth a ham and cheese omelette.