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The Juicing of The Stock Market: No Where to Run Anymore


By Roidy   Follow   Sat, 11 Feb 2012, 5:54am   3,941 views   16 comments
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Gentle Readers,

I found this on MinyanVille this morning. It clarified my thoughts and feelings exactly.

"The Saddest Rally in American History
Peter Atwater
...
Back in September 2009, I wrote an article on MV entitled "Will Investors Join The Forced March Into Risk" noting that "...what’s been missing in this post-March survival rally has been the Mom-and-Pop investors heading back into equities. Bonds, yes. Stocks, no."

Well here we are, admittedly almost two and half years later, and Mom and Pop, after missing the 100% rise off the lows, are finally joining the march. But I'd note that their participation is not based on conviction, but rather capitulation.

Don't get me wrong, this may lead the market higher, but to me this is quickly becoming the saddest rally in American history. Savers are buying stocks not because because they believe in the American Dream, but because they feel they have no other choice. All other options have been exhausted.

And maybe its just me, but when I see the retail investor capitulate, I get a sick feeling that they are doing precisely the wrong thing at the wrong time.

Read more: http://www.minyanville.com/businessmarkets/articles/minyanville-minyanville-todd-harrison-michael-gayed/2/10/2012/id/39347#ixzz1m51vTWYk"

So, anyone who has done the right thing is a complete fool who will be properly and completely ruined at just the wrong time. Our Masters of the Universe call this the "Paradox of Saving." I call it "We have you where we want you."

I did the right thing and took no debt, toys, do-dads, or bling that I couldn't afford. I would really rather not be in the market. If the Fed is thinking that they can "make it up to them later.", they are as delusional as I have always thought they were.

I know I'm going to be hammered for writing this, but I am a Keynesian. Still, I wholly believe the Fed is wrong for what they are doing.

Regards,
Roidy
No P.S.

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  1. freak80


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    1   9:01am Tue 21 Feb 2012   Share   Quote   Permalink   Like (1)   Dislike (3)  

    It's true. Shit intrest rates are forcing people into risky yield-chasing.

    Now that the Dow is almost 13k, I've taken most of my money out of stocks.

    Stocks are historically overvalued on a trailing-ten-year-PE-ratio basis.

    www.multpl.com

  2. Roidy


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    2   6:45am Sun 26 Feb 2012   Share   Quote   Permalink   Like (1)   Dislike (1)  

    Gentle Readers,
    I'm quite distressed over this recent report that TurboTaxTimmy and the ECB is at it again. We are now going to be treated to an additional $2 Trillion bailout to keep the European Union from shitting in our collective cornflakes.
    Here is an excerpt:

    "MEXICO CITY (Reuters) - The world's leading economies worked on Sunday to line up a deal in April on a second global rescue package worth nearly $2 trillion to stop the euro-zone sovereign debt crisis from spreading and putting at risk the tentative recovery."

    Link: http://news.yahoo.com/euro-zone-deal-firewall-awaits-germany-001447722.html

    Ok, I get the intention is to extend the problem until the banks, countries, corporations, etc. can "heal themselves." A basic problem with this activity arises when viewed through the lens of The Japanese Problem. Remember Japan, Inc.? How's about that classic "The Japan That Cannot Fail"? Does the Nikkei 225 all time high just short of 39,000 yen in the Dec. '89 provide understanding? It's getting to $10,000 right now. One third of its value 22 years later.

    Here's my point: You cannot grow your way out of this turd bowl without some sort of debt default and market clearing. This is too big to extend and pretend. That no worky. The problem? It too big. It gonna hurt. It no go away on its own.

    We will not go back to 2005 levels of income or consumption. We will not work our way out of this. All this bailout will accomplish is to juice bank profits and "Brass Hat" bonuses and avoid a possible Euro War or something. These items may or may not be good goals. We really don't need another great land war. If that is what the goal of this $2 Trillion is, then we are getting a bargain. If the goal is to renew economies and revive the Euro and American middle classes? How will this work to do that?

    In point, these people are complete shitheads.

    Regards,
    Roidy

    P.S. Fuck you, Eurozone. You need to get a solution to this. You fart smelling idiots.

  3. TMAC54


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    3   7:45am Sun 26 Feb 2012   Share   Quote   Permalink   Like   Dislike (3)  

    Gubmint has one tool. Psychology. Build a false sense of security.
    You, as an investor have a limited number of investment vehicles.
    #1. Gold ? = growing bubble. #2. Real Estate ? = deflating bubble.
    #3. Stock Market Equities ? = As long as taxpayers money is being used to inflate that bubble, that is where to put your money. Isn't that where the banks are placing all our bailout money. They are certainly NOT lending it.
    It appears we are in a race with other nations to file bankruptcy.
    DEBT IS THE JUICE

  4. futuresmc


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    4   12:13am Wed 29 Feb 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Roidy says

    Here's my point: You cannot grow your way out of this turd bowl without some sort of debt default and market clearing. This is too big to extend and pretend. That no worky. The problem? It too big. It gonna hurt. It no go away on its own.
    We will not go back to 2005 levels of income or consumption. We will not work our way out of this. All this bailout will accomplish is to juice bank profits and "Brass Hat" bonuses and avoid a possible Euro War or something. These items may or may not be good goals. We really don't need another great land war. If that is what the goal of this $2 Trillion is, then we are getting a bargain. If the goal is to renew economies and revive the Euro and American middle classes? How will this work to do that?

    The goal is simply to transfer as much of the downside to the average joe's retirement fund, savings vehicles, and in the case of bailouts, government programs that benefit people and society as a whole, and away from the 1% 'wealth' and the balance sheets of the banks and corporations that got us to this mess in the first place. Yes, there will be haircuts, but if you can disembowl the 99%, they will stay haircuts for the 1% with no risk of actual skin being lost.

  5. citizen jpp


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    5   4:50pm Tue 6 Mar 2012   Share   Quote   Permalink   Like   Dislike  

    It is just going to get worse...

  6. PockyClipsNow


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    6   10:46am Thu 8 Mar 2012   Share   Quote   Permalink   Like   Dislike  

    why is this article in jail?

  7. Roidy


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    7   5:20am Fri 9 Mar 2012   Share   Quote   Permalink   Like   Dislike  

    Gentle Readers,
    PockyClipsNow says

    why is this article in jail?

    I post to Patrick's Jail because I'll just end up here anyway. He claims we cannot be banned here. So far... he's kept his word.

    Regards,
    Roidy
    P.S. OT: So let me get this straight: There will be no coverage of women's birth control pills even if there are legitimate health reasons for prescribing them? If this is to be believed, there was even a hearing by House Committee on Oversight and Government Reform that was comprised of a bunch of old men representing the various religious faiths but not one XX chromosome-type person? No women? Really? Then Rush Limbaugh got in on this by insulting Sandra Fluke as a whore and prostitute? Where did responsibility go in the GOP? I voted for Gerald Ford and RR the first time (I didn't like his Lebanon debacle and the wasting of 300 USMCs.) The GOP is not giving a realistic alternative in this election. The vitriolic, lunatic diarrhea spewing from the shitholes-in-their-faces is just amazing. Sure, one can legitimately argue about Fluke's actual testimony, but this bowl of ad hominem butt-spew goes too far. In short, the GOP blew it.

    P.P.S. So the Greek Gov't has finally gotten their solution? This is another circle jerk that will fester, bubble and cook up until it fails at just the wrong time. Built a ring fence around the problem? They just piled up more turds for the turd bomb when it finally blows up. Look, a solution is not a solution unless it is actually a solution.

  8. Roidy


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    8   8:06pm Mon 12 Mar 2012   Share   Quote   Permalink   Like   Dislike  

    Gentle Readers,
    With reference to the "Sheeple" image on today's Patrick.net Links Mon 12 Mar 2012, gives me pause to reflect and think a moment. So, Ben Bernanke apparently likes his sheep without any "wool" on it.

    ...City boy...

    Regards,
    Roidy

  9. Roidy


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    9   7:17am Tue 20 Mar 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Gentle Readers,
    I really need your help. I'm becoming unhinged and deranged. I cannot maintain control any longer. I...I...I saw Maria Bartiromo on the television. I tried. I really, really tried, I did. I couldn't switch the channel quickly enough. I heard her giggling that the S&P500 is nearing its "all time high" of 1530.23. She was giddy when she mused that regular investors were losing their "fear of the market."

    Of course the muddle headed fool didn't even address the somber fact that 1530.23 occurred in 2007. The millions of people across the world lost trillions of wealth in that steroid-monkey of a market that crashed twice in 8 years. No, she didn't comment on today's market of electronic millisecond trades, the reduced size and scope of the NYSE, the juicing by the Fed and other Central Banks, the sorrow and fear that are still with us every time we look into our 401(k)s, (b)s, etc. and realize that there is nowhere else to turn. With Fed rates a 0%, you cannot find a safe investment.

    These economic times are grim. The grimness is amplified when we are forced to do what we know will ruin us eventually.

    Ms. Bartiromo is poison. She has lost all honor and honesty. My only satisfaction is her apparent ignorance of the fact that most people know she is poison. She is no longer the "Money Babe" she thinks she is. She is forever diminished, reduced and ignored.

    She still drives me fucking nuts, though.

    I'm going to the bathroom mirror and tell myself how fucked I am.

    I'm also going to tell myself that there is precious little that I can do about it.

    Fuck me.

    Regards,
    Roidy
    P.S. What is going on with vaginas, wombs, birth control, and the moral directions of old men concerning said vaginas? I have a penis. I and my penis take advantage of every opportunity available to us for vagina-friendly relations and actions in the arenas of politics, economics, health, and children. Still, I do NOT decide what is, and is not, vagina friendly. I have these issues discussed with me in a warm, loving, polite, and generous manner by a particular person that I know who does posses a vagina. Apparently there are many positive actions that I can chose that fulfill and promote my "vagina friendliness" agenda. Yes, I can set my own personal priorities WITHIN LIMITS. I own a penis. Get it?

    So what the fuck with Texas, Arizona, Virginia, Santorum, Mitt, Rush, Coulter, and this clown circus we are faced with? IS THIS FOR REAL? I mean government sanctioned rape in the form of a so-called medical ultrasound.

    WHAT??????????
    P.P.S. Fuck you, Gietner.

  10. xenogear3


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    10   8:11pm Tue 20 Mar 2012   Share   Quote   Permalink   Like   Dislike  

    Repeat after me.

    The biggest casino is "New York Stock Exchange".

  11. Roidy


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    11   9:35pm Thu 29 Mar 2012   Share   Quote   Permalink   Like   Dislike  

    Gentle Readers,

    I keep forgetting to ask: What is the best sex hammock? Does one of those, er. hanging hammocks work?

    Regards,
    Roidy
    P.S. Eurozone claims all is ok. Sure, of course it is. It'll be just fine. Goddamn lying wankstains.

  12. Melissa


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    12   3:11pm Sun 1 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    I hate CNN videos because they make you watch a commercial first (at least I mute them). Jim Rogers thinks we are screwed and "they" are making it all look and sound good mostly because of the elections. 2013 and 2014 are going to be a mess according to Jimmy.
    http://money.cnn.com/video/markets/2012/03/26/mkts_jim_rogers_bear_2013.cnnmoney/?iid=HP_River

    I *love* one comment:
    "They're not smart people. That's why they work for the government."

  13. Vicente


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    13   5:39pm Sun 1 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    Melissa says

    Jim Rogers thinks we are screwed

    On the one hand, Jim Rogers is not stupid.

    On the other, he's been "talking his book" with the Chicken Little routine for a LONG TIME now. Eventually I suppose that broken clock could be right, but permabears are tiring.

  14. thunderlips11


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    14   9:36am Mon 2 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected  

    Melissa says

    *love* one comment:
    "They're not smart people. That's why they work for the government."

    They're very smart. The leadership of many Government Agencies use the "Revolving Door" between Big Corporations and the Agency. They use their position to change policies and gather information on Agency processes, so they can help their once and future employers make more money by changing and/or evading regulations.

  15. Vicente


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    15   9:58am Mon 2 Apr 2012   Share   Quote   Permalink   Like (1)   Dislike  

    Melissa says

    "They're not smart people. That's why they work for the government."

    Government is peopled by.... people.

    You will find the same bell curve in government workers as in pretty much any work environment.

    I'm often suprised people have expectations of brightness or dumbness of medical workers, lawyers, government. They all pull from the same population, they are THE SAME.

    There are exceptions to this of course. I'd expect more psycopaths on Wall Street and more pedophiles as priests than the general population.

    "I'm like my mother, I stereotype, it's FASTER." - Ryan Bingham

  16. Roidy


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    16   4:23pm Wed 4 Apr 2012   Share   Quote   Permalink   Like   Dislike  

    Gentle Readers,
    Two small items:
    1) It seems that Lil' Bennie Bernanke has been doing the naughty. He's been printing money, buying garbage, and flushing Treasuries he's bought through Wall Street. Naughty boy!
    2) Oh, lest I forget! Housing is going to boom, again! We are on course for a record number of foreclosures next year. That is, if those fucktards in Washington and New York don't start pissing and moaning about it.
    These wankstains don't get it. We must resolve the imbalances. We didn't do this with Easy Al Greenspan as Fed Chief. By the way, I haven't heard from Al lately. Did the Aliens finally get him? Diddle on, Al, diddle on!
    Regards,
    Roidy
    P.S. I hear that Europe had a REALLY shitty bond sale of Spain paper. So that I understand this, wasn't there a so-called "ring fence" that was supposed to make everything just peachy? In any case, isn't that what those penis pumpers told us? Are going to get jizzed in our collective faces and told it is good for our complexion? What? You don't get the allegory? Ultimately the US taxpayers are going to be paying for this in some form or another. We will be told that it will save the world's - and ours- collective asses. Just jizzed in the face. Fuck.

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