A follow up to last nights BULL ROAST..POST, THE FED has SWOLLEN the MONEY BASE to now more than DOUBLE its size in just a few short months!!!!!!!!!!!
BUT, instead of this money in the TRILLIONS, fresh as the morning dew, making into PRODUCTIVE enterprises and helping to rebuild our economy, it has been HIJACKED by the major banks as FREE MONEY and going into ASSETS...meaning STOCKS and COMMODITIES.
And there is a US $ carry trade going on as well, as our CHEAP $'s are borrowed from abroad and also put into things.
SO not learning from the TECH bUBBLE, andnot learning from the HOUSING BUBBLE, all of which ocurred on the FED'S WATCH.....these street thugs are now and have been perpetrating the biggest heist of all, and when this BUBBLE BURSTS, it will be the worst situation the country has ever faced.
THIS IS WHY there is the GREAT DISCONNECT to what stocks are saying and what MAINSTREET is saying, and there also lies the huge problem when they have to stop this charade.....nothing benefical will have been provided and there will be no backstop possible when it unwinds.
THEY think they can ease off the pedal....REALLY? these same idiots? How'd the real estate bubble turn out? NOWHERE along the line did any of the people responsable see a fing thing?
SInce late 90's until today the actions of GOV FED and WORLD Central Banks has been destructive to the REAL ECONOMIES, and has taken 40% off the Reserve Currencys value! SO NO we are far from better off, ONLY THE WALL STREET BANKSTERS can say that.
Bank lending has decreased by the 100's of billions last 2 quarters......lending standards have tightened, CIT gone belly up, and even more pressure on the #1 job providers SMALL BUSINESSES, big corporations are not goosing CAPEX spending, few seem willing to invest in the future.
AND FEW WILL BE HIRING. Quantitative easing is to end by MArch of 2010, March happens to be a typical top and bottoming month, sitting here today I am guessing that is going to be a month to watch VERY CLOSELY.
The market is controlled by the BANKSTERS, and is why even with LOWER UP VOLUME DAYS and 10.2% (MUCH MUCH HIGHER ACTUAL) unemployment which was FAR GREATER than expected, the market could EKE out a gain.....
As long as these DANGEROUS games continue, it could be a bad move taking a LARGE SHORT position. I've taken one day positions and gotten out before close, that has worked best for me.
FUNDAMENTALLY things SUCK, but understand what is being foisted upon us.......hard to fight it.
THE END will come suddenly without WARNNIG, no BELL will sound.....and time and money will have been wasted, and the PAIN amplified.....
GOLD AT $1,100 is telling a story. THE US $ telling a story, HISTOPRIC MONEY GROWTH a story, HISTRIC mkt rally......and little else to show for it...
D
2 comments:
How is this for progress. J Henry goes from 2.5 billion to 188 million.
So much for Trend Trading. More like Turtle soup kitchen material.
http://www.boston.com/business/articles/2009/11/07/sox_owner_trims_quarter_of_staff_at_fla_firm/
Looks like the link got chopped. Here is the story.
Henry trims quarter of staff at Fla. firm
Hedge fund run by Sox owner cites declining assets
By D.C. Denison, Globe Staff | November 7, 2009
John Henry, the principal owner of the Boston Red Sox, has fired more than a quarter of the staff at his investment company in Boca Raton, Fla., a result of declining assets and “the current market environment,’’ a spokesman said.
Eight employees from “a cross section of the firm’’ were dismissed, leaving 20.
Henry, in an e-mail to the Globe, said, “The company has been overstaffed for some time relative to its size.’’
As recently as 2004, Henry’s company had about $2.5 billion under management. Its current total under management is $188 million.
Henry said in his e-mail that the company also co-manages another $200 million with other firms.
Founded in 1982, John W. Henry & Co. manages or co-manages seven hedge funds of futures and commodities.
Hedge funds are lightly regulated investment vehicles that can own exotic securities.
The firm handles money for large institutional investors such as retirement plans, insurance companies, and wealthy families. It has been known for volatile returns, with wide swings in performance from year to year.
Although Henry’s company had an exceptional year in 2008, with its larger funds earning returns from 40 to 90 percent, its performance has fallen off in 2009. Those same funds are down between 6 and 21 percent from Jan. 1 to Oct. 31.
The dramatic shrinkage of the company’s assets, however, appears to have happened during the financial crisis last year. Investors who were scrambling to get cash out of their investments had easy access to their holdings at Henry & Co. Unlike other hedge funds, which were locking in investors for six months or longer when markets were falling, Henry & Co. allowed investors to withdraw their money on relatively short notice.
The son of an Arkansas farmer, Henry turned his knowledge of crops into a science of betting on futures - whether the price of commodities like soy beans will rise or fall.
His firm’s trading strategies are based on complex mathematical models he developed to follow price trends, replacing gut instinct with discipline in the investing process.
Historically, his funds do well in years when the mainstream markets - stocks and bonds - do poorly. He is known to personally keep close track of various markets, whether at home or in the office, through the day and into the night.
Hedge funds that invest in futures, like Henry’s, are roughly flat this year even though the stock markets rose robustly, according to Greenwich Hedge Fund Indices, which tracks performance. Futures had the worst performance of the hedge fund categories tracked by the group in 2009.
But hedge funds that invest in futures have fared better when the results are considered over time. The three-year average annual return on futures is 11.3 percent, better than most other hedge fund strategies.
A Red Sox spokeswoman declined to comment on the state of Henry’s business or its impact on the ball club’s finances.
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