Wednesday, June 22, 2011

Ben Bernanke: World's Worst Cheerleader

We have witnessed some terrible ideas from the Federal Reserve over the past few years - decades - but their idea to have the Fed Chairman hold a news conference after the periodic FOMC rate policy announcement has to rank right up there among the worst.

Today's media-fest new conference, the second Ben Bernanke has held, was an absolute snoozer, with the Chairman reiterating what was already known from the rate announcement - no change in policy, keeping rates at ZERO to 1/4 per cent for an extended period, weak economy, frustratingly slow job growth, blah, blah, blah - and then giving highly nuanced responses to soft-ball questions from selected media.

The Chairman, being stuck in a policy environment that is absolutely untenable long-term, dead-panned throughout, looking at times stupid and at other times, less-than-honest. Wile the Fed did lower their forecasts for GDP in the second half of the year, they remained steadfast in the longer term outlook, saying that improvement in the economy would happen late in 2012 and into 2013, where they see lower inflation, a pick-up in job creation and GDP between 3.5 and 4.2 per cent.

Put simply, Ben Bernanke and his overpaid monkey economists are full of crap. Up to their ears in it, they are. Fed policy since the apocryphal events of 2008 has been nothing other than non-stop printing of dollars and feeding the beast that is the cartel of large banks which ruined and continue to run the economy into the ground. So, by doing more of the same the Fed is going to "work things out" just how?

Simple answer, they're not.

While the Chairman was speaking, stocks stumbled and then cratered once he was through, finishing at the lows of the day. Great performance, Mr. Bernanke. Just what do you have in store for an encore? We should expect nothing less than the complete and total disintegration of the dollar, and, by inference, the annihilation these United States. Thanks for the nap time, but between the Fed and congress and the presidency, America is royally screwed, kaput. It's over. Keep cashing those checks for as long as you can, because sooner or later they're going to bounce sky high. But Americans, being the slovenly sloths they are when it comes to understanding money and economics, will just keep going on, changing nothing and expecting different results, which is, by the way, the definition of insanity.

Our economy is practically dead and there will be no winners in the end.

After a brief respite, it appears that stocks are back to the losing ways of the past seven weeks. And the longer the congress takes to figure out that they must raise the debt ceiling, the steeper the decline. Even if they do pass a resolution to raise the debt ceiling - they will - with a deal on the table that is palatable to the phony "fiscal conservative" Republicans, it will offer no immediate assistance but rather a convenient platform from which to launch their campaigns for 2012.

Pretty sad, when all congress can think about is re-election. If nobody showed up to vote, it wouldn't matter. They'd just fix the results to be what they want them to be. Americans are the dumbest people on the planet. I went to another party this weekend where talking politics was barred, a policy that's becoming more and more prevalent. Apparently, people's normalcy bias is so great that they cannot stomach the truth.

Looks like I'll be partying by myself more often. At least the company is rational.

Dow 12,109.67, -80.34 (0.66%)
NASDAQ 2,669.19, -18.07 (0.67%)
S&P 500 1,287.14, -8.38 (0.65%)
NYSE Composite 8,101.84, -54.43 (0.67%)

Declining issues took the bull by the horns and flipped it on its back, leading advancers, 3983-2549. On the NASDAQ, 58 new highs and 41 new lows. There were 66 new highs and 23 new lows on the NYSE, putting the combined total for the day at 124 new highs and 64 new lows, an oddly-skewed metric, though considering the moves of the past few days, not really out of bounds.

Volume was minimally marginal, to say the least, as expected.

NASDAQ Volume 1,603,598,250
NYSE Volume 3,691,012,000

Crude futures rose on supply draw-down, gaining $1.24, to $95.41. Gold continued to break to new record highs, up $3.30, to $1550.50, with silver ahead a mere four cents, at $36.44. The bears and shorts have complete control over the paper silver market and will not allow it out of the $33-38 range, where it's been stuck for two months, making it one of the less desirable assets to hold currently, though that is bound to change.

Remember, don't talk politics or economics at any parties or barbeques unless you don't want to be invited back. Hmmm... now there's a plan.

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