Seeking Alpha

David Stockman doesn't mince words: "Today the Fed is scared to death that the boys and girls...

David Stockman doesn't mince words: "Today the Fed is scared to death that the boys and girls and robots on Wall Street are going to have a hissy fit. [Its programs are] designed to somehow pacify the stock market, [fooling] the people into thinking they are wealthier... The Fed is injecting high-grade monetary heroin into the financial system of the world, and one of these days it is going to kill the patient."
Comments (33)
  • Econdoc
    , contributor
    Comments (2944) | Send Message
     
    Stockman's book "The Triumph of Politics..." is a good read. Talks about the failure of the Reagan revolution...
    4 Nov 2010, 06:26 PM Reply Like
  • mdmrjsds
    , contributor
    Comments (502) | Send Message
     
    Two monks who have taken a vow of chastity are walking beside a river when they come upon a woman. She says to them, "Please, will you help me cross, I must get a doctor as my mother is very ill." One of the monks picks her up and carries her across the river. And then he and the other monk continue walking along the river. After an hour or so, the other monk turns to him and says, "You touched a woman." The monk who carried the woman says, "I put her down an hour ago. You are still carrying her."
    4 Nov 2010, 06:42 PM Reply Like
  • spald_fr
    , contributor
    Comments (2735) | Send Message
     
    That's insightful, Econdoc, especially since the title of Stockman's book is "The Triumph of Politics: Why the Reagan Revolution Failed"
    www.amazon.com/Triumph...
    4 Nov 2010, 10:57 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    omg...
    4 Nov 2010, 11:10 PM Reply Like
  • bryantjulian
    , contributor
    Comments (104) | Send Message
     
    I blame Millard Fillmore.
    5 Nov 2010, 01:27 AM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    And how many people will be fully invested and get caught again. We need another 60 seat revolution. To bad it has to wait two years.
    4 Nov 2010, 06:27 PM Reply Like
  • Salacious
    , contributor
    Comments (182) | Send Message
     
    Glad to see some realistic commentary.. I just viewed the front page of the WSJ, "Investors cheer the Fed's move". Laugh, those of us in the know realize we are running to what the government can't print, be it gold or company shares.
    4 Nov 2010, 06:30 PM Reply Like
  • Dan Ramsden
    , contributor
    Comments (65) | Send Message
     
    All day long I was thinking I was losing my mind. Maybe I still am, but it's nice to hear someone talking common sense.
    4 Nov 2010, 06:31 PM Reply Like
  • j-dub
    , contributor
    Comments (1234) | Send Message
     
    So CAT might have reached an all-time recovery high today on the backs of the middle class and their children. It's really a greater fool's game right now. Maybe if CAT would bulldoze 20th St. and Constitution Ave., I would even nibble a bit.
    4 Nov 2010, 06:37 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    I'll take the precious metals..not the paper stocks..they can and will issue more...and the government can regulate and tax them....windfall profits comes to mind....this is going to get ugly....food up 30% next year...and the whole world mad at us.....
    4 Nov 2010, 06:43 PM Reply Like
  • Truth-hurts
    , contributor
    Comments (148) | Send Message
     
    Don't forget, starting in 2012 (I hope it isn't 2011), you will be required to report to the IRS any gold purchases you make for the year that total more than $500. But of course, the US government would never make gold ownership illegal...
    4 Nov 2010, 08:02 PM Reply Like
  • Ohrama
    , contributor
    Comments (515) | Send Message
     
    "But of course, the US government would never make gold ownership illegal.."
    I thought they did the same in the 1930's and repealed it only in the 70's!
    4 Nov 2010, 08:15 PM Reply Like
  • Truth-hurts
    , contributor
    Comments (148) | Send Message
     
    I should have added a smilie to my post! :^)
    4 Nov 2010, 08:24 PM Reply Like
  • FourBrane
    , contributor
    Comments (78) | Send Message
     
    Please be responsible and refrain from spreading incorrect information. A report is issued to the IRS only when you SELL a triggering amount of gold (25 ozs if coin, 32+ ozs if bars). The IRS doesn't care whether you own gold, they just want to make sure you pay the tax on your CASH PROFIT.
    4 Nov 2010, 09:26 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    And they think I'm going to stay in the country and/or play nice.

     

    I hope they packed their lunch and ammo clips...
    4 Nov 2010, 11:12 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    Oh...that makes it all better...it's o.k. that I was raped and beaten as long as they didn't get me pregnant (rolls eyes)...I hope you were being sarcastic...
    4 Nov 2010, 11:13 PM Reply Like
  • MikeMalty
    , contributor
    Comments (30) | Send Message
     
    It's good to remember the truth. The truth that this ramp up in the markets is bought by the banks, feds and our own government. But, how far does it go? We can't hide in closets or hold cash. We could very well see a new "all time" high in the Dow before the rug is pulled again. I guess taking profits from time to time is the right thing to do. Short VXX.
    4 Nov 2010, 06:43 PM Reply Like
  • Archman Investor
    , contributor
    Comments (2470) | Send Message
     
    Ahhh the hilarity of it all.

     

    Silver is now 45% higher than it was the last time I made a bullion purchase for myself. Hidden away, in the bowels of the earth it rests as the sheeple wander around from Apple store to Apple store stocking up on the "really important" things in life.

     

    This entire phony stock market and economy need to be put into perspective once and for all. For those in the top 10% of the country that own 90% of it's net worth (thats you and me assuming you are here at SA) this market is driving our wealth to new heights. My portfolio alone which consists of all non US stocks, emerging market bonds, high yield, is now approaching + 40% for the year, 320% for the past decade as the average mom and pop American have earned nothing during that time and far worse if you factor in real inflation costs. But you know according to the gov't and FED there is absolutely no inflation anywhere, so long as you don't drive, use heat, or eat anything other than a diet of pure air.

     

    But look at how sick and outright retarded our citizens are. You would think, seeing as the majority of Americans are completely broke and their standard of living is going straight down they would be out in the streets burning down buildings. LOL. Far from it. Our moronic citizens truly are so dumbed down and outright uneducated, they are in complete denial about everything and are as usual "hoping" that someone else fixes their problems. Worse, aside from those Americans who's wealth was destroyed over the past decade and are screwed beyond belief for the future, there are those Americans who have little money left who are only "now" going to buy stocks after the first 80% run up.

     

    We do not have a money problem in this country.

     

    We had and continue to have a debt problem in this country both on the personal level and public level. That is why this economy cannot get going. We had transformed our country into nothing more than a consumer based economy which for the past 3 years continues to be broke. People in general cannot afford to buy anything. No matter how much money the FED throws out there, this economy will not get going until a few things happen:

     

    Housing reaches a true, natural level of affordability. We also need to bulldoze about a million homes in this country.

     

    US consumers are still over 110% in debt. Until debt levels fall 50% or more from current levels and consumers truly build a real secure nest egg again, this country is going nowhere.

     

    We make jack sh*t in this country and our workers take a year or more to fix a road overpass here while in China they build over 250 miles of new high speed rail line a year. Welcome to the broken and broke USA.

     

    Myself and others like me a laughing all the way to the bank as average US citizens are heading to ruin.

     

    I cannot believe that things have really come to this.
    4 Nov 2010, 07:14 PM Reply Like
  • Tack
    , contributor
    Comments (13579) | Send Message
     
    And, to add insult to injury, Arch, if and when those "people" start burning buildings down because of the "unfairness" of it all, the second thing they're going to do is come looking for your 320% gains.

     

    Count on it.
    4 Nov 2010, 09:22 PM Reply Like
  • dbutlermd
    , contributor
    Comments (2) | Send Message
     
    If you were asked to participate in a known ponzi scheme such as the one devised by Mr. Madoff you would proabably say "no thanks". Buying stocks at this point is like participating in a known ponzi scheme, which would seem a bit crazy, the only difference is that all of us, by virtue of the fact that we are part of the US economy, are already participating in this scheme. The dollars in our pockets are being devalued this very minute as a result of what the Fed had done. Should we participate in this delusion by buying stocks and feel good for the moment, or gripe now and still take it in the shorts later when the whole thing falls apart.
    David F. Butler, MD
    4 Nov 2010, 07:44 PM Reply Like
  • dbutlermd
    , contributor
    Comments (2) | Send Message
     
    I am the Chair of the Department of Dermatology at Scott and White Clinic in Temple, Texas as well as the program director of our dermatology residency training program.
    4 Nov 2010, 07:45 PM Reply Like
  • EMS
    , contributor
    Comments (579) | Send Message
     
    Ride it.
    4 Nov 2010, 08:15 PM Reply Like
  • rooftop
    , contributor
    Comments (140) | Send Message
     
    The "I am the Chair of the ..." comment looked more like a disclaimer/signature to me, not an attempt to puff himself up to any degree. I agree with Truth-hurts - simmer down, he just started posting here.
    4 Nov 2010, 08:18 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Voodoo Economics.
    4 Nov 2010, 08:27 PM Reply Like
  • Machiavelli999
    , contributor
    Comments (829) | Send Message
     
    Another hilarious thread at Seeking Alpha. Just go to your caves already and get offline.

     

    How many of your shorts got killed today guys. LOL!

     

    And no, this is not all inflation. Because inflation is not always good for stocks. 1970s had real consumer price inflation and it was terrible for stocks.
    4 Nov 2010, 08:41 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Holy crap Mach...you tell us to go to our caves, but it seems you are the one living in one if you're this clueless to what's happening out there.

     

    Have you been to a grocery store lately? Listen to McD's say prices are going up due to commodity costs? seen oil? sugar? wheat? gold? silver?

     

    Wake up.
    4 Nov 2010, 10:52 PM Reply Like
  • Machiavelli999
    , contributor
    Comments (829) | Send Message
     
    Umm, that's because of expectations that the economy is going to grow. We can always go back to the time when the dollar was surging and commodities were falling off a cliff. Late 2008. Great time, huh?

     

    I am not living in a cave. I am just following basic textbook Friedman here.

     

    Also, if the commodity rise was simply due to the Fed and the dollar devaluation story, then other countries shouldn't complain. Since, if dollar goes down, their currencies go up and in effect it should have no effect on the prices they pay.

     

    The fact of the matter is that the high price of food and energy in 2008 was not a monetary abberation. It is a REAL demand outstripping supply problem.

     

    You can solve it with actual supply-side policies or you can solve it by keeping the economy depressed.
    5 Nov 2010, 12:15 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9966) | Send Message
     
    Mr. Stockman is of course absolutely correct. But we need Mr. Stockman to do more than just talk about it. Mr. Stockman needs to become the driving force, along with other rational leaders, in forming a third political party and leading the movement to oust both the Republicans and Democrats. There would be many that would would join him like a David Walker or a Simon Johnson or even a Bill Gross or a Jeremy Grantham. And most importantly they would have little trouble in attracing well over 50% of average americans.
    4 Nov 2010, 09:02 PM Reply Like
  • stmcca02
    , contributor
    Comments (195) | Send Message
     
    What a great market this is!

     

    The speculator's best conditions to make money in.

     

    How many that shorted will keep getting burned before they give up
    there required presence and just go long stocks.

     

    (or are these only dreams)

     

    Seriously though Stockman is exactly correct, except that like the song says, he is in the wrong place at the wrong time.

     

    Disclosure:

     

    permabull
    4 Nov 2010, 09:27 PM Reply Like
  • stmcca02
    , contributor
    Comments (195) | Send Message
     
    Stockman's Book "The Triumph of Politics"

     

    might be a good read, but when have politics trumped and anything good has come out of it?!

     

    I mean really... Wait let's think, Clinton... Umm, umm, umm, oh that's it.
    4 Nov 2010, 09:31 PM Reply Like
  • Bill S. Friend
    , contributor
    Comments (711) | Send Message
     
    Bill Gross, and Meredith Whitney recently lamented an end to economics as we know it. All the so-called "perma bears" seem to be getting it right (me included). Its just the timing and public sentiment that cannot be calculated. When the bond vigilantes get motivated it will be simultaneous. You think commodities are high now?
    5 Nov 2010, 12:18 AM Reply Like
  • trader_murf
    , contributor
    Comments (51) | Send Message
     
    Glad to read this comment. Holding my nose and staying invested albeit conservatively dividends and with a good cash cushion on the side cause I just don't get it. Figured maybe loosing my mind, like oh wow, I missed the memo party like it is 1999! Grateful I have the bucks to invest. Hope I know when to jump this ship bound for the iceberg...
    5 Nov 2010, 02:07 AM Reply Like
  • stmcca02
    , contributor
    Comments (195) | Send Message
     
    Permabears and Permabulls

     

    What a Load.
    5 Nov 2010, 05:15 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector