johnbee

Bernanke Likely to Be Ousted by Obama in Favor of Summers

To date Bernanke has single handedly and by a hairs breadth saved the skins of Americans and many other people in the world by his actions. His remedy is still in the balance.
Don't stop him now. Its only the greedy banking community trying to get back in business on their own without Bernanke's controls that are trying to usurp him, and look where that got us. Alzheimers seems to be the order of the day in Wall Street.


On Jun 26 02:42 AM Nathaniel C wrote:

> I like the idea of getting rid of Bernanke who has commited many
> crimes as Fed charimen (illegal government intervention and manipulation
> of the free market). However, I am not thrilled with Summers as a
> viable replacement. I like the idea of bringing back Volcker. He
> was serious about preventing inflation compared to helicopter Ben
> who openly says he wants to debase the US dollar by 3-5% per year.

'Preventing Systemic Collapse': Bernanke's Ace-in-the-Hole

Bernanke is like a General in charge of a great war or a Grand Master of Chess. He must choose who and what he need sacrifice for the overall good and not be interrupted by the little people pawns in the game. Obama is right to let him get on with it and should resist calls by bankers friends to hinder. It is obvious that infaltion will be the main problem at some point but we need get over the deflation threat first.

After the Fed's Inaction

This is wait and see time re deflation/inflation for the Fed while trying to keep everything on an even keel, and that includes the $, interest rates, stocks, gold, and oil. Quite a balancing act but anyone who bets either way against it right now is taking a lot of risk.

Stanford Financial's Ponzi Scheme: New Fraud, Old Lessons

It seems to me that Stanford, if you are correct in the way you describe his activities, is no better or worse than pretty much most of the US investment houses and hedge funds some of whom promise even higher returns and none with any meaningful guarantee of safety. Without US support for the US banks they would all have gone bust, and all depositors' money lost to some degree, so where's the difference? Why leave Stanford out?
There is too much pretence going on and a need to find scapegoats in order to take the spotlight off others just as irresponsible.
Frankly I would jail the lot of them and confiscate their assets but then who would run the banks? It seems the Government believes only crooks know how when actually its about as simple a job going so long as you don't get up to fancy tricks.

Stock Market: Buy, Hold or Sell?

It will be up over 950 on both occasions. Bernanke will see to it.

Obama's Housing Fix Falls Flat

Money lenders have always made good profits out of foreclosures. Its part of their business practice, and what are banks if they are not foremost moneylenders- the Shylocks of this world?

S&P 500: Falling Off a Cliff or the Golden Cross?

Charts are useless other than by consensus to follow them when they can be self fulfilling.
Every day events usually rule the markets short term and weight of money long term. This time its Governments who dictate as they control the money supply and in order not to have deflation they will risk some inflation. To understand this market you need to imagine yourself as Bernanke. Does he want Treauries to fail? Does he want the gold price to effectively devalue the $? Does he want oil to drop too much to create political problems for Arab states? does he want it too high to spoil a comeback or for house prices to remain low for too long? NO he doesn't. Does he want a lower stock market that has ruins savings and pensions. NO. So he will produce more money if needed. He will keep interest rates down. He will try to keep a balance between deflation and inflation.
He will not want commodities to take the place of the $ although this is less in his area of control but he can control many of the speculators by controlling bank lending and so get markets going his way. So where now? Consolidation for the Summer to wait and see how things work out as they seem to be. If needed more $ printing and more Treasury borrowing and so maybe one or two threats to keep a balance between money in Treasuries and stocks. So far so good. Touch wood for if he gets it wrong then we are all in pigshit.

The American Economy Is Spent

huge money has been injected into the system and more can be if it doesn't work out until there is enough to get it all going again just as in every time the banks squander people's money twice a decade except people have short memories. Money doesn't disappear unless you invested with Madoff and his like as it went into their pockets and not yours, but its still around to invest and it keeps coming into pension funds every day for investment from the millions who are still in work and want a home for their savings. Sure the young will need adjust. They will do as they have before in war time or any bad times as there is no alternative.

Barron's Interviews Templeton's Gary Motyl

If you're right then money will be worthless so you may as well bet what you've got left on an upside and not get left out if you're wrong.


On Jun 21 11:14 PM redmuddler wrote:

> All p/e will drop to 4 when the government admists they are not bigger
> than the world economy and they finally stop wasting our tax dollars
> propping up this dead man we call our economy. Sure, these stocks
> may go up for a while but in the end all assets will corollate down.
> This is simply re-arranging the deck chairs on the Titanic..

Here's What World Markets Are Telling Income Investors to Do

Its pointless trying to rationalise the markets other than in political terms since its Government actions that are manipulating them.

The Case for California Defaulting

Because the East, in which US firms have invested heavily, is better off at the expense of the costlier producing West and will continue to be until globabalisation brings equality to the whole world. They should have taught you that at school.


On Jun 17 01:08 PM Thomas J. Gordon wrote:

> I grew up in california. they had university of california, state
> universities, junior colleges with full football stadiums and a chancellors
> house on campus. I remember at the time thinking, "this has to be
> expensive". What changed? Why was all that affordable in 1980 and
> not now?

What’s Bad for Wheat Could Be Good for Agriculture ETFs

Canada is also experiencing wheat growing problems with much of the crop likely to be lost due to poor weather conditions this year.

Don't Fight the Guys Who Have the Power to Print Money

I subscribe to the go where the money is theory. weight of money (buying power) has always been the principal reason any market goes up almost regardless of conditions since it has to go somewhere, and that's what Bernanke has created and is directing.
What he is trying for is a balancing act to keep everyone happy in which he saves the banks on condition they help out such as keeping the oil price at a level which helps the oil countries balance their budgets and so stops revolutions. This makes the banks profits also so neither they or others will want to see new losses now. For the same reason Banks have also been buying equities and helping to finance new issues to put a brave face on the Stock market and at the same time keeping people just scared enough to buy enough Treasuries while keeping gold below $1,000 to make the $ look fairly firm by comparison, while letting a small amount of inflation help house prices along with very low interest rates.
Bernanke has done a good job to date but he must sweat every night that he can keep all the balls in the air at one time. He has obviously been helped by friendly Japan to say they have confidence in the $; and it makes sense for the Chinese and Rusians to say say also, as they have recently done, while slowly divesting into commodities and hard assets and buying IMF bonds in an attempt to find alternatives to the $ in the future. Everyone of them knows it all hangs in the balance. If it all does collapse again then the banks are finished for good. What best therefore for investment? Gazprom is the largest energy company in the world supplying natural gas and oil on long term (up to 50 years)contracts all over Europe with immense reserves. Agriculture plays such as DBA are effectively currency hedges and with the least downside if the markets fall again as people need food first and foremost, and the Canadian wheat and grain fields have all but failed this year. India is not so reliant on exports as China but China has a far better global strategy and huge funds to go with it to buy and stock commodities cheaply for future internal growth, and both are still growth areas and will be for years ahead with low cost labor and huge expanding populations equalling half the world's people; mostly under 35 years old with far more skilled people than Europe to come in future years. In any sensibiity these stocks are riduculously cheap. These countries will not nosedive for long, if at all, as there is too much impetus now and the desire to work to better themselves while the West whinges for its welfare and pension rights
My stocks: Gazprom;Infosys; Morgan Stanley China fund; Chinalco;
China Mobile; DBA. Only buy exporters in US and Europe.

Agro Commodities: A Star Future Performer

well a ten year old could tell you that as wealthier growing populations expand there will be more demand for food in the long term if growing acreage is in short supply. There are a million things you can say that about. Its the short term we all want to know about and all MsBharti says is that prices may go down before they go up!

Un-American Government Intervention

Politicians make the law. they can do what they like until you vote them out and put in the next lot; but isn't that just whats been done?!