Category Archives: Fed-Reserve

I Rest My Case….

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Regarding my post of  November 18th, what more can I say? Central Bankers continue to offer proof, as mentioned in today’s Zero Hedge article.

Here’s a shot of the S&P 500 E-mini Futures Index as it trades pre-market today. Although price has been climbing, it has been doing so on declining momentum…however, it’s still above the zero level, so it can be considered cautiously positive.

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Myopic Domestic Delusion or Planned Monetary Demolition?

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Over the years, much to his credit, David Stockman has consistently been vehemently emphatic when it comes to exposing the abject menace of unfunded fiscal overrun and overt monetary accommodation.  Today, Stockman has become a veritable tour de force wrecking ball, directing his outrage squarely at the entrenched political and monetary establishment that has foolishly and recklessly ignored these undeniable economic malignancies that he has been tirelessly forewarning. (more…)

Keynesian Shangri-La From Myth To Reality

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In less than the time it takes for a chrysalis to release one of life’s remarkable transformations, many once called “capitalists” woke to find the world they once knew changed into something only dreamed or told in folklore.

Where business models resembling unicorns abounded along with rainbows in their resembling equivalent of over-arching ETF’s. All available in a multitude of hues and proportions so plentiful: It was hard for one not to well up when contemplating. For in this new fairytale land there must certainly be a pot of gold at the end of every “rainbow.” However, one would be mistaken. For one must remember this is a “Keynesian Shangr-la” and gold here is useless. (insert choir music here) (more…)

In Perpetuity

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I am not a stranger to disappointment. There have been plenty of times in my life when reality did not meet expectations. This probably gives me plenty in common with other fellow humans. It’s certainly not like things always go my way. Far from it.

Being a trader, this is a phenomenon that is almost universal. People anticipate what they think is going to happen, they position themselves for it, and reality dictates whether or not they profit or not. It’s the nature of the beast.

October was an extraordinary month. It was tremendously exhilarating for the first half, and it was soul-crushingly difficult during the second (this is from a bear’s perspective; flip the descriptors for bulls). As deeply oversold as we were on October 15th (and with the VIX in excess of 30), I certainly expected some kind of bounce – and I made no secret of it – but I absolutely did not expect a bounce of this size and vigor. (more…)

Putting The Fallacy Of QE Into Perspective

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You can’t turn on a financial news program without being bombarded by panelists as well as the hosts ready-at-the-draw to pounce on anyone with an opposing view as to the “effectiveness” of the Federal Reserve’s quantitative easing program (QE).

Once again this played out just the other day on CNBC™ where this time it was Peter Schiff who found himself in the cross hairs of today’s version of “ambush the guest.”

You can agree or disagree with anyone’s viewpoint and I even encourage people to question mine if they see fit. However, you don’t have to be a rocket scientist to watch many of these anchors to witness for yourself what now has turned into all the appearances of – an ambush. (more…)

FOMC Cites Job Gains?

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Fed Announces End to Bond-Buying, Citing Job Gains –New York Times

Just a week or so ago one of the Fed’s three most celebrated hawks jumped the mic with a ‘shucks ya know, we could always delay the end of QE’ routine as the stock market plummeted. They don’t make hawks like they used to.

So what does the FOMC really mean, ‘job gains are good so we are ending QE’ or… ‘phew, that was a close one but the market took the Bullard bait and is back near the highs so we are ending QE… for now’. I’ll take ‘B’ Alex.

I seriously wonder how people other than promoters in the media and the financial services complex can continue to fall in line behind this transparent stuff. Maybe it is not really people after all but instead a bunch of connected black boxes, dark pools and other such robo systems simply programmed, without feeling, to follow the code. (more…)