Sunday, May 12, 2013


"In equities markets, well, speculative dynamics have taken full command. The bears have been squeezed into oblivion, with a dearth of selling pressure now allowing speculators to easily push prices higher. Bringing back memories of 1999, heavily shorted Tesla Motors was up 41% this week and Green Mountain Coffee jumped 33%. It was a week where I was again contemplating “how crazy could things get?”

The Fed and global bankers should never have become such active players in the financial markets. Asset inflation is indeed more dangerous than consumer price inflation. Central banks will actively support asset prices, while refusing to remove the punchbowl. At all costs, Chairman Bernanke will avoid being a Bubble Popper. And when you read his comments from Friday morning (below), keep in mind that as Bubbles become more systemic they actually become less conspicuous. Today, Bubbles proliferate throughout the securities and asset markets. It’s all become one big historic global Bubble. Yet the Bernanke Fed won’t even begin tapering its $85bn monthly “money printing” operation in the midst of increasingly conspicuous market excesses. "

Folks, it's not really an argument to be had as to whether the stock market rally from 2009 has enterred the speculative blowoff phase, or that what we are witnessing is BUBBLE DYNAMICS.

And what eventually happens to all bubbles throughout history? THEY POP. And what happens when they pop?

Goodnight. This time I think everyone will know exactlt where to point the finger, a loss of faith in the FED on top of the greatest bubble bursting in history, will prove to be a nasty combo.



Anonymous said...

I see "Bubble" is your new BDI.

If you are honest. The biggest bubble of all is Doom.

And your bubble has popped.

Marc R said...

World stock markets are almost all at new highs, Japan's mkt doubles in 6 months. Forget what the implications are....even if DOWN the economies are NOT in synch with the stock markets moves.....interest rates at 0% for savings is your answer.

SURE, F yes, make hay point is if you think this sets up BLUE SKIES in the future you are fing insane and believe in tooth fairy and chicks for free, fing insane. ALL BUBBLES POP...HARD to predict when....I'll keep telling it like it is, or how I see it, dont have to agree.
Going into 2000 and 2007 all was giddy...