Saturday, October 26, 2013

The says he see's a few warning signs, I know he got stabbed a couple of times this last week, luckily, he had gotten out of NQ before that disaster. 

I guess this is egg head Saturday, some of the most popular articles are boring in-depth dissertations of data assimilation, my main man, Chris Ciovacco, has an extremely popular article out about the FED and why the markets are going even HIGHER,  YOU WILL NEVER LOOK AT THE MARKETS IN THE SAME WAY AGAIN.
To me, the most important part was the very last paragraph:
"From Bloomberg:
We are at the cusp of another round of global monetary easing,” said Joachim Fels, co-chief global economist at Morgan Stanley in London. Policy makers are reacting to another cooling of global growth, led this time by weakening in developing nations while inflation and job growth remain stagnant in much of the industrial world."
To me, that paragraph SHOULD read:

"BECAUSE, our prior policies have led to another cooling of global growth, we are, THEREFORE, going to commit the definition of insanity and not only continue those prior policies, but ACCELERATE THEM, and continue them until you dumb bastards start spending all that money you have not been able to make because of our policies!!"

To back that statement up, the always exceptional Lacy Hunt immediately came out with the quarterly Hoisington Review, THE FEDERAL RESERVE FAILURES.

END OF ARTICLE!!! The following is a stoopid rant, I was going to delete it, but, SCREW IT:

That chart at the top is just the 10 year bond yield in green vs the SPX, you will notice the wonderful slope of the S and P during the early part of the Go Go ninties, WHEN THE 10 YEAR WAS BETWEEN 9.5 AND 5.5%, IE, us dumb bastards could actually MAKE money on our savings to "invest" in the risky stock markets (remember 8% money market funds?? I DO), AHOLE then raised rates from 5.5 to 8.5%, and the stock market immediately ACCELERATED it's slope into December 5th, 1996, after we were able to make even MORE money off our savings, when AHOLE made his "Irrational Exuberance" statement, and his method of solving that problem was to LOWER rates to 4% into the Asian crisis in 98', at which point the SPX ACCELERATED its slope AGAIN into the 2000 top, hahahahahahaha! Some body will have to explain to me HOW the market went up into that top with rates going from 4% to 7%, but I guess it was just a miracle.
So he started lowering rates from BEFORE the top in 2000, and the market responded by crashing into 2003 when rates bottomed at 3%, so he started raising rates back to 5% and we got that nice run into 2007, when the dumb bastard decided to lower rates again and naturally the markets crashed, AGAIN, until rates bottomed just prior to 2009 under 2%, at which time they raised rates into early 2009 back to 4% and the markets started the current historic run. Since that time they have kept rates under 3.5%, starving us dumb bastards into food stamps by lowering our wages and making us PAY to have a savings account, or replacing us with robots, while Wall Street gets free money (as per Chris's article) to buy the "only game in town" with, which, I guess, brings us back to Lacy's article about how the FED is totally screwing us. I disagree with Lacy on one point, he says the FED doesn't have the foggiest idea about why their policies are not working on the REAL economy, I say they know EXACTLY what they are doing, this whole thing is to save their OWNER'S, those very same Wall Street banksl, that they are using our tax payer dollars to buy their SHIT MBS's and take them off their hands, to eventually throw them on the tax payer's when they can't find another sucker, eeeeeeerrrrrrr, buyer, for them when they eventually try to exit.

OK, I'm done, sigh, worthless POS, wad ever, one thing I want to bring out is the blue lines on that chart, the slope of the S and P, you see the beautiful slope from 89' to 95', and again from 03' to the 07' top, even though that was a little steeper, one thing is that they were UN-interrupted, just little ups and downs, even the 95' to 98' run. This compares to the current run, which has not only been STEEPER than those prior periods, but it has those two RED BOXES in there, TOTALLY, unlike the prior periods. Last thing is, even though we are steeper than that 95' to 98' run, I could make a case that, SIGH, we, COULD, be setting up for the THIRD run, with an angle very much like the 98' to 2000' run, IE, VERTICAL!
That is, if we don't get one of those RED BOXES first.


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