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cpickett
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31 year old professional living in Boca Raton, FL and Boston, MA. Love to keep fit, eat healthy, play golf, softball, and hike. Interests include Finance, Weather, Reseraching Conflicts of interests, and Building Friendships.
  • stocks to tank Thurs/ Fri
    http://www.newyorkfed.org/markets/tot_operation_schedule.html

    Fed Pomo's run out for a week tommorrow.

    Anyone else think that stocks in such an over-bought state may not defy gravity when Ben's  pomo helicopters take a break starting thurs/ fri



    Disclosure: no positions
    Oct 05 8:40 PM | Link | Comment!
  • Bernanke the Hero risks going blind

    Those of you who follow the market intelligently ...i.e more than reading MSM talking points....you realize the effect FED QE has on asset values.

    You also have been following the effect of Big Ben's POMO Pumps....Permanent Open Market Operations.....banks get fresh infusion of liquidity in exchange for who knows what....and what do you do as a leveraged.....casin....err bank with a new pile of $$$..  You lever up and send assets flying high. Like today.

    And the media and administration always trying to show their policy's are resurrecting change....are quick to say ...."service sector activity boost's stocks"  as opposed to the infusion of newly invested /leveraged $$$ via Fed POMO activity.  Finance is a confidence game we don't want to link gains to fed pumping....kind of lessens the belief of a recovery. By linking the rise in assets to "economic indicators" the stage is set for the linkage to be made by those WHO WANT to believe ....regardless of validity....that the economy is on the up and up and this gives them ammo for their willingly ignorant beliefs that keep them warm and fuzzy inside.   Nevermind they don't want to hear the real reason for markets rising....they already made up their minds....plus this makes them happier to think this way.....truth be damned.

    There is a reason behind Abe Lincoln's famous quote  "you can fool all the people some of the time....and some of the people all the time....but you can't fool all the people all the time...it is Psychology 101...people want to believe what makes them happier and more secure.  Some are willing to be "fooled" ....many other's just don't have the time nor inclination to take on a research project regarding deception and mis-information. However these same people were never WILLING to believe there was a bubble in house prices because well that didn't make them feel rosy inside and besides the NAR and FED said "they don't see it". LOL.

    So take solace that Big Ben Bernanke is risking his eye sight...pumping every week....with all his effort.....our hero may even go blind from "too  much pumping" ...just as some of our mothers warned us about.  But most won't see it or want to ....they would like to believe the economy is in recovery mode and that is why equities are up 200 plus today.  If Ben B goes blind and can't pump anymore.....the windstorm that follows should uncover almost everyone's head from the sand....and if they are not ready there porfolios will take a beating.

    Hold the knee jerk ....one liners that help you stop thinking seriously about the reality ...i want the recovery to take hold...i want the standard of living to increase...but this is a ponzi recovery....it is not how we have recoverd in the past.



    Disclosure: "no positions"
    Oct 05 4:16 PM | Link | Comment!
  • JP Morgan Halting Foreclosures ASSISTS gov't one trick ponies in kicking can down the road

    Recently Alan Greenspan said

    "What we have going for us is that the tinder for a double dip is not readily available,”, Then he mentioned if housing prices drop from here, “all bets are off.”

    Seems rising rates of foreclosures and subsequent short sales are threatening to put more downward pressure on house prices....thus threatening to really make it difficult for this "statistical recovery" not to "statistically double dip"  (while i continue to believe we are in a deep balance sheet recession/depression and will be for some time). 

    My first impression is that since JP made this announcement this does two things to kick the can down the road further and enhance the legitimacy of the weak recovery. 

    1. Relieves main driver of house price declines

    2. Allows people to stay in house longer...Paying nothing and continue to stimulate the economy


    however someone more knowledgeable then me could tell me how much if any of this could effect the delicate financial system...I.e. bank losses .....derivative markets....etc



    Disclosure: no positions
    Sep 30 7:43 PM | Link | Comment!
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