Tuesday, September 04, 2012



"Obama is preaching the destruction of the middle class small business owner in order to pay that pound of flesh now demanded by the bankers. He ignores the fact that almost 70% of the entire accumulated national debt went to interest payments to the bondholders – not to improve the lives of people. This idea of socialism has in itself been a lie. For you see, the numbers do not lie. The bulk of the national debt has been interest payments not to help anyone but the moneylenders. He preaches "socialism" while practicing the hypocrisy of lining the pockets of the New York bankers. MF Global will not be prosecuted. Why? Corzine is his buddy?"

Bottom line is out of one side of his mouth our President preaches equality, socialism and the EVIL of Wall Street, while his #1 contributor is Goldman Sachs? WHILE the FED chief under his rule has made it so the AVG American cannot find yield, but same FED chief has publicly admitted he has targeted the stock market for appreciation for its "WEALTH EFFECT"

Who benefits the most when stocks go up? Who owns more stocks? You guessed right, the wealthy. The Conservative saver, retires person, or the avg person with some stocks in his IRA benefits the least, and the SAVER is penalized.

They have it now, where you are literally FORCED into RISK ASSETS in a YIELD STARVATION environment, even as it is shown, that current policies are NOT putting enough people back to work, but it IS LINNG THE POCKETS of the bankers, INSIDERS, and Wall Street Elite.

Here is another good read http://www.mauldineconomics.com/frontlinethoughts?utm_source=newsletter&utm_medium=email&utm_campaign=frontline  "The consequences of easy money policy"

"I missed the part where Congress gave the Fed a third mandate, to target the stock market. But Bernanke not only takes credit for the stock market, he points out that the rebound in the housing market is also due to Fed policy, because it fostered lower mortgage rates. Which it did. But let's also remember that it was Fed policy that helped create the housing bubble to begin with. Which I don't remember Bernanke taking credit for, even though he was on the Fed then and up to his eyeballs in supporting that policy."



Anonymous said...

I need to "WARN" you. Dispense with the profitless black clouds and get with the program.

Jack Bouroudjian, the CEO of Bull and Bear Partners, said in a recent interview that he sees us in a directional change market right now, meaning a move from bonds to stocks, and not being invested is very dangerous.


PS, enjoy your down day. A good performance by the bears. Keep up the good work.

Marc R said...

"meaning a move from bonds to stocks, and not being invested is very dangerous."

Jack, whatever happened to an old saying Richard Russel of Dow Theory letters coined..."It's not return ON your money it's return OF your money" ?

Anonymous said...

You can lead a horse to water.....
I warned you. Jack

Scared Money Don’t Make No Money
With apologies to Young Jeezy aka The Snowman, a down-south rapper with an aspirational flow and a sensitivity to all things recession-related, I'm borrowing his elemental truism about Scared Money's inability to Make No Money so I can make a handful of points today...

I came across this story in the business section at USA Today and I smiled. If I were running a hedge fund with just a single input - sentiment - I'd be 30-1 leveraged long the S&P as a result of it.

It begins with a deliciously observant title, once that may eventually end up in my own mini-museum of journalistic turning points for the stock market (along with the infamous The Death of Equities BusinessWeek cover from 1979).

Anyway, here goes:

Financial crisis ushers in 'The Age of Safety' for investors
By Adam Shell, USA TODAY

Cash hoarding. A record $9.43 trillion — enough cash to buy 120 of the biggest companies in the Standard & Poor's 500-stock index — is now sitting in money market mutual funds, bank savings accounts and CDs, according to Crane Data.

But all that cash isn't making anyone rich.

"The rate of return is effectively zero," Crane says. "How much of the $9 trillion is scared money is arguable. But the overall numbers are gigantic."

Rich retrenching. Even the richest of the rich, the One Percent, are thinking defense first, according to "The 2012 Survey of Affluence and Wealth in America" from American Express Publishing and Harrison Group. One Percenters put 56% of their free cash into savings and money market accounts last quarter, up from 24% in 2007. In contrast, they are investing only 44% in financial markets, down from 76% five years ago.

Mom and pop selling. Main Street investors have been lightening up on stocks since the financial crisis. In the four years ending 2011, individual investors yanked more than $395 billion out of stock mutual funds, according to the Investment Company Institute. In contrast, more than $775 billion has been funneled into the perceived safety of mutual funds that invest in bonds.

Is there anything better this? And the fact that it appeared in USA Today!?! Perfect!

Oh, and how about the fact that Wall Street strategists have never been this bearish in the aggregate. Or what about the sitcom debuting this fall called The New Normal?

Young Jeezy would look at all this scared money and laugh, as he cooks up another kilo and cleans his guns for the sabbath.

Hoarding cash is pretty dumb, being "all-out" is always dumb and not being able to see past the next "scary" headline on a perpetual basis disqualifies you from using the term "investor" to ever describe yourself.

But I love it all so much, the numbers are hilarious. It means we're getting close to the Magic Hour for sure, gang.

So hang in there.


Financial crisis ushers in 'The Age of Safety' for investors (USA Today)

Marc R said...


There is merit to your argument, and sure there is a pissful of cash n bonds...now if it came out slowly....methodically sure...if it went into stocks all of a sudden, that buying power.

The size of the bond mkt is HUGE compared to stocks...so is the "Scaredy cat" bond market wrong??? They would have to be wrong right, for stocks to be right bet"

ECB BOND BUYING solves all the problems right Jack?
WHy is AA down and out if we have economic revivial? Why is growth rate in China 0% according to recent report using electrical output as a guide"

You then prove a very important point, that I'm going to write down and memorize. You can achieve economic expansion by A)printing money and B) piling on more debt on top of existing.....there you go Jack's prescription to prosperity