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Michael Clark

Michael Clark
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  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    America is more than the sum of its banks. Banks have failed before. America has recovered. No wonder you fight so hard to protect the status quo. You think Wall Street is America. America will be here a lot longer than Wall Street will be here. Wall Street is a manifested illusion. The modern financial system is a temporary illusion, that will vanish in history, just like the moneychangers in the temple vanished. They will come back. Greed is hard to keep down. But they will vanish for a while.
    Aug 12 01:28 AM | 1 Like Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    "There may be a recession in stock prices, but not anything in the nature of a crash."
    - Irving Fisher, leading U.S. economist , New York Times, Sept. 5, 1929
    "Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."
    - Irving Fisher, Ph.D. in economics, Oct. 17, 1929

    I can't believe you got 16 like ratings when you rendered Fisher a bear when he was really a bull.
    Aug 11 02:29 PM | 1 Like Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    That is easy money for banks and removing "toxic" stuff off the banks balance sheets is obviously a stabilizing force in the market.
    Removing toxic stuff off the banks' balance sheets was clearly a stabilizing force for the banks. Buying mortgage bonds to keep inflating housing prices in America from falling was also designed to save the banks.

    Banks can fail without America failing. If banks fail, then we must create better regulations for the next generation of banks so they don't make so many bad mistakes again. Giving them trillions for their crimes, failures, and mistakes teaches them to keep making these mistakes, with the understanding that the government will just give them taxpayers' money to bail them out and avoid all the trouble of defaults.

    That's the moral hazard of protecting borrowers and banks from the mistakes they make. They remain children forever, seeking to take advantage of the system. Why not? Failure pays. And pays VERY WELL INDEED.
    Aug 11 02:23 PM | 1 Like Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    I acknowledged his 2014 link. I'm hardly right-wing. I am the guy who believes we need to be beyond duality, capitalists during day-cycles, and socialists during night-cycles. You like to frame me as a right-winger because it makes your arguments easier for you when you reduce everything to good versus evil, left versus right, science versus mysticism. Be aware, I am a paradox: right wing and left wing fused. I believe in science and in mysticism. I believe the left is half right; so is the right. They are each trapped in their perceptions, seeing their own good side, not seeing their own bad side; seeing their opponents' bad side only; and not seeing their opponents' good side.

    Macro, I don't expect to reach you, because you are defending territory, not seeking knowledge. You're not ready to see something new. And that's fair. You are trapped in duality, as are most people.

    I voted for Obama. I like Obama still, in many ways, except in his catering to the banks through the FED. Obama's legacy will not be good, because he refused to tell the truth, that Wall Street caused the Financial Crisis and that the FED was separating the rich and poor in America in a way that would have been unconscionable to REAL democrats of the Twentieth Century. He has funnneled trillions to the rich, through his FED -- and he has led America closer to civil war in the process.

    Had Obama dumped Bernanke, blamed Wall Street for the crash, and refused to bail out the rich through QE and ZIRP, we would be much closer to recovery than we are today. And Obama's reputation as a GOOD DEMOCRAT would be intact. Instead he'll be remembered as the guy who gave America away to the rich. And who gave American money (through the FED) in the billions to foreign banks, bankers and rich corporations.
    Aug 11 02:10 PM | 3 Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    I stand corrected. Tarp apparently is making a profit.

    Of course, the markets have been fixed in the LONG-ONLY position since TARP was conceived. This explains one of the reasons TARP was effective.

    There was a LOT of political pressure to make sure TARP did not lose money. Fixing markets and fixing interest rates pretty much fixed the success of TARP.
    Aug 11 11:42 AM | 1 Like Like |Link to Comment
  • European Markets Look Downright Scary [View article]
    I read where Greenspan started 'plunge protection' in 1987, after the market meltdown then in November. They've been doing all in their power every since to 'put a big smile' on the market.
    Aug 11 11:23 AM | Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    Funny, we have yet to see a real remedy to the boom-bust cycle.

    Your analogy suggests a global economic collapse is akin to a cold. Take a few aspirins and go home and rest.

    Science is wonderful at creating machines. That's what it does best. Not much chance they are going to create a machine that fixes the Great Depression.

    Science will not cure death. Science might be able to prolong life. But it will not be able to defeat death.
    Aug 11 11:19 AM | 2 Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    hobart: It is putting profits into the Treasury because it is protecting its investment by putting a floor under markets. It is spending trillions to make sure the markets don't fall, and wipe out their own investments. But when it stops doing this, the FED balance sheet could be wiped out. The story isn't over on the FED's watershed investments until the FED gets out of the way and sees if the turkey can fly. So far it hasn't showed much airborne time, without continual FED intervention.

    I did not mention. But TARP did not turn a profit. Tarp lost money.

    Contrary to the Obama administration's claims, the bailouts of the financial and auto industries have not turned a profit for the U.S. government and may never turn a profit, according to a grim new assessment by the bailout's watchdog.

    Even by non-financial standards the bailout has been less than a roaring success and may be helping to lay the groundwork for future financial disasters and bailouts, writes Christy Romero, the Special Inspector General for the Troubled Asset Relief Program, in her latest quarterly report to Congress, released Wednesday morning.

    "It is a widely held misconception that TARP will make a profit," she writes right at the top of her 327-page report. "The most recent cost estimate for TARP is a loss of $60 billion. Taxpayers are still owed $118.5 billion (including $14 billion written off or otherwise lost)."
    All the central banks versions of QE and ZIRP were backdoor bank bailouts. The banks have been bailed out from 2009 and the bailout is still continuing.
    Aug 11 11:12 AM | 3 Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    To my mind you have a limited understanding of American history. You think America's last austerity was 1929-1939. You do not think that World War II was part of that austerity? Did you live through 1965-1983? You seem very young. I'm not sure you have an interest in American history.
    Aug 11 07:51 AM | 3 Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    When I say democracies fail because of an unwillingness to face the truth, I am not saying I want our democracy to fail. I do not want our democracy to fail. I want our democracy to face the truth.

    We go through austerity every 36 years. Suddenly, this time, we don't want to go through austerity, self-discipline, self-denial, common sense...because it will involve pain. Going through austerity is a kind of alchemical tempering of our metal as a society. It has positive effects also. It makes us stronger, tests us. It also returns us to our historical roots. Austerity is, in truth, a return to a nation's historical roots. Back to our beginnings.

    I want us to solve our problems as a democracy -- otherwise we will become a dictatorship, as Rome did, as every empire/civilization does. If we do not have the will to fix our problems, then we will collapse into chaos and a dictator will rise up.

    We have gone through austerity -- depression, loss of our heroic identity, social reform, rebirth -- many times and we have survived it, as a people. Remember, rebirth comes after austerity.

    You don't avoid austerity by pretending it isn't necessary.

    2001-2019: Austerity
    1965-1983: Austerity
    1929-1947: Austerity
    1857-1875: Austerity
    1821-1839: Austerity
    1785-1803: Austerity
    1749-1767 Austerity

    In case you haven't noticed, current FED policy is turning American citizens into serfs. Banks want debt slaves, serfs. The bank policy is to destroy democracy and replace it with your medieval picture.

    FED policy is transfering all of America's wealth to the 1%. That's not what I want. I an warning that if we don't wake up this is what we will get.
    Aug 11 03:01 AM | 4 Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    The Fed did do their job. Their job is to protect the banks. That is the problem with the Fed. They will steal trillions from Americans to protect the banks and bankers all over the world.
    Aug 11 02:23 AM | 3 Likes Like |Link to Comment
  • Don't Buy This Dip: The Fed Is Not Your Friend [View article]
    You ask the ultimate question. Is the timing right to exit the long trade? Is the FED ready to surrender their illusions? I've called the top a few times and been wrong. I'm leery of saying this is THE top. I think all the central banks of the world have painted themselves into a deadly corner. Their theology is the Wealth Effect; and for them to back away from it means they have no answer, except the deflation they are so afraid of, which will absolutely wipe out the world that was created with debt 1983-2001. Deflation is the shadow of the world they created; and they are afraid to face their shadow. They like their success; they are soulless individuals who put their trust in money; so a confrontation with mortality and loss is the thing they dread the most.

    I follow a database of stocks daily. I also follow inverse etfs. I expect them all to be long (in the short position) when the big sell off comes. For a long time, only 2 or 3 were in the short position. Now there are 10 of 39 shorting.

    TWM Short Russell 2000 Index ETF Daily
    MZZ Short Midcap Index ETF Daily
    BZQ Short Brazil Shares ETF
    DTO Short (Double Short) Oil
    SDP Short utilities ETF Daily
    SDD Short Small Cap Index ETF Daily
    EPV Short MSCI Europe ETF
    ^VIX CRB Volatility Index Daily -- this is a long position -- short stocks
    YCS Short Japanese Yen
    JGBS Short Japanese Govt Bonds

    In terms of trend, I think the long trade is still in place. We need more deterioration before I call it a top.

    I agree with everything Stockman writes. I think the Central Banks will do anything -- even steal money out of bank accounts -- to not have to lose power. So, I'm still skeptical that their madness is over.
    Aug 11 02:20 AM | 3 Likes Like |Link to Comment
  • European Markets Look Downright Scary [View article]
    Will the central banks let the markets correct? They have come to see their job as protecting the society from potential disorder caused by financial destiny. What's more debt anyway? Just more debt.

    Is it arrogance, stupidity, or a new paradigm? Time will tell.
    Aug 10 11:32 AM | Likes Like |Link to Comment
  • European Markets Look Downright Scary [View article]
    After what we saw from 2001 to 2008, America's biggest problem was too much capitalism*. That's when socialism for the rich became the fad.

    Europe and America and Asia also are still reeling from a horrific housing bubble movement engineered by the people in the world with the most money, desperate for MORE money. Nothing changes.

    *Too little real regulation of caplitalism at the very least.
    Aug 10 11:30 AM | 2 Likes Like |Link to Comment
  • The Era Of Financial Insanity [View article]
    Excellent article. Sanity is not in very high regard today. Why, because sanity suggests that we cannot live it up for ever without paying our bills.

    Sanity is not respected much by those who will pay the most if sanity ever does return.
    Aug 10 11:23 AM | Likes Like |Link to Comment