Thursday, June 23, 2011

Does My "Bunny" Have A Good Nose On QE3?

(Note:  the quote is in reference to the famous quote from Martin Siegel to Robert Freeman - of Goldman Sachs, of course - when exchanging some inside trading information, in an insider trading circle that ultimately led to the conviciton of Ivan Boesky)

Check out the comments from Robert Broaddus, former Richmond Fed head:   LINK  Here's the salient quotes sourced from Zerohedge:


LOL.  Where there's smoke, there's fire...My argument per my previous quote is that the Government is going to try and "paint the tape" with the illusion of "disinflation" by trying to smack the commodities for awhile like in July 2008.


  1. The problem right now is every trader out there is so itchy to buy LNKD or what not they keep having these mega rally days on any hint of the next handout. Going to be hard to lay the groundwork (semi fear) if every other day is a cray rally day.

  2. Former Federal Reserve chairman Alan Greenspan discusses his distaste for the very central bank he reigned for 2 decades.

  3. Sinclair, Hathaway - Hell Could Break Loose, Confidence Cracks

    “We’re talking about the credit default swaps. There is a crisis in the derivatives again that nobody sees, but many people know. This crisis is the fact that the person who creates the derivatives, the manufacturer, what he’s creating is insurance policies. What’s being paid for it? Higher and higher prices as all of this default talk takes place, it’s nothing more than a promise to pay.

    Modern derivatives have some degree of margin behind them, but not enough that could possibly survive a default on Greece tomorrow followed by all of the weaker nations of the EU. Nobody is really putting enough attention on the fact that these manufacturers sell these things and they take in huge amounts of cash flow. But their ability, taken as a whole, to guarantee the debt of sovereign nations is simply not there.

    If you think that the banking system of the western world is strong enough to guarantee the debt of the western world, you’re totally out of your mind. That’s the reason they’ll do everything possible to paper over the Euro crisis to prevent the defaults in order to prevent another crisis in banking that definitively would occur, that absolutely would occur from a default. This fact is ravingly positive for gold. You would have a complete collapse of the western banking system if Greece goes down.”,_Hathaway_-_Hell_Could_Break_Loose,_Confidence_Cracks.html

  4. Yes well, all these idiots we have to deal with.

    Here is a site - Jim Sinclair - posts his stuff. I like what he consistently writes. His chart work is also good.

  5. Please could someone tell me why Copper is not effected by anything - it just sits there?

    Secondly - it seems the powers can really just play with us in the precious metal space. We only really lucky that the powers in actual fact may like them too.

    Thirdly the Euro jumped too much yesterday so we have to start on the Italians!

    How about just getting out of this market altogether and start trading in Gold and Silver physical?

    Miners - seem the religious experience Embry etc was talking about was meant for the bulls.

  6. presto-magico economic policy?

    Inevitable Catastrophe: The Fruits of Moral Hazard on a Global Scale

    Transparent, independent markets do not move in lockstep. The campaign to prop up all asset classes with implicit guarantees of intervention has completely insulated institutions and punters who believe that the Bernanke Put and the Chinese government's equivalent prop under real estate is not just policy but a guarantee of god-like power.

    Thus the gains from gargantuan speculative bets are yours to keep, and any losses will be made good by the central bank or government. This is the ideal recipe for misallocation of capital and speculative derangement on an unprecedented scale.

    Moral hazard is the ultimate perverse incentive: it rewards all that is unproductive and risky and punishes long-term investment and prudent risk assessment.

    A second feature of the global central bank's moral hazard is the necessity to punish any punters who dare to bet against the banks' manipulations. Thus Fed Chairman Bernanke could opine that oil would decline and presto-magico, a "surprise" release of oil by central authorities occurs the next day.