Infinite Unknown

- Macro Collapse Pushes S&P 500 To New All-Time Nominal High And Close (ZeroHedge, April 30, 2013):

“Horrible” PMI, no problem; just add it to the list of macro data that has missed significantly in recent weeks. Bloomberg’s US Macro index has utterly collapse in recent weeks – now at its worst level in 7 months but apparently if good is good, bad is better, and totally shitty is absolutely awesome. It would appear the world of nominal equity index chasers is now fully cognizant that the reality of their lemming like herding is based on one simple thing (no matter how much they kick and scream and proclaim wisdom about earnings cycles, growth, margins, transformative energy, or new AAPL products) – and that is… Central Bank promises.

…

Tags: Economy, Global News, Stock Market, U.S.

- Deutsche Bank To Sell Up To 90 Million Shares, Will Raise €2.8 Billion In New Capital (ZeroHedge, April 29, 2013)

Tags: Banking, Deutsche Bank, Economy, Global News, Stock Market

Click the play button below to listen to Chris’ interview with Bill Fleckenstein (28m:26s)

- Bill Fleckenstein: Hold Tight To Your Gold (PeakProsperity, April 21, 2013):

Why it’s going to go “one hell of a lot” higher

The bond market is an accident waiting to happen.

When the bond market finally does crack, it is going to be one epic nightmare that is going to make 2008 and 2009 seem like a picnic. It will be a different kind of a crisis; but it will be an enormous crisis. These people that are bullish about stocks and bonds and the bond market, they do not understand anything.

We will hit a moment in time where there will be a rapid acceleration of the perception that people are being cheated via inflation by these money-printing policies. Why Americans seem to think there is no inflation just because the CPI says so, when their checkbooks every day ought to tell them there is, I cannot explain that. But there will be a change in psychology, and there will be a massive stampede into gold here and everywhere else around the world, because it is the only way you can protect yourself against these policies.

Pity the wise money manager these days. Our juiced-up financial markets, force-fed liquidity by the Fed the other major world central banks, are pushing asset prices far beyond what the fundamentals merit.

If you see this reckless central planning behavior for what it is – a deluded attempt to avoid reality for as long as possible – your options are limited if you take your fiduciary duty to your clients seriously.

Continue reading »

Tags: Bank of Japan, Ben Bernanke, Bill Fleckenstein, Bonds, Bubble, Central Bank, Debt, Economy, Fed, Federal Reserve, Fleckenstein Capital, Global News, Gold, Government, Japan, Politics, precious metals, Real Estate, Stock Market, U.S.

- And This Is What A Full Blown Market Exodus Looks Like (ZeroHedge, April 23, 2013)

Related info:

- From A Twitter Hack To The Complete Evaporation Of All Market Liquidity In One Chart

- Hacked AP Twitter Account Reports Of Two Explosions At White House, Obama Injured

Tags: Economy, Global News, Stock Market, U.S.

- From A Twitter Hack To The Complete Evaporation Of All Market Liquidity In One Chart (ZeroHedge, April 23, 2013)

Related info:

- Hacked AP Twitter Account Reports Of Two Explosions At White House, Obama Injured

Tags: Economy, Global News, Stock Market, U.S.

- Professor Fekete on the Gold Smash: “Who Said the Hydra Would Take it Lying Down” (Liberty, Blitzkrieg, April 19 2013):

Ostensibly a lower gold price would solve the problem Bernanke has. Demoralized gold bugs would be forced out of their holdings through margin calls. Disillusioned investors would shun gold. This would make physical gold available to rescue the strapped gold futures market.

In fact, however, a lower gold price is making the problem more intractable, not less. The Fed is diving from the frying pan into the fire. This is the point missed by almost all observers and market analysts. They ignore the underlying flight into physical gold that continues unabated, in spite of (or, better still, because of) the panic in the paper gold market. The Fed’s intervention in bankrolling short interest is going to back-fire, for the following simple reason. The Fed’s strategy is inherently contradictory. A lower price for paper gold makes it easier, not harder, to demand delivery on maturing futures contracts.

- Professor Antal E. Fekete

Of all the articles I have read since the attack on the precious metals markets, this piece by Professor Fekete is the best one yet. I completely agree that this was an extremely desperate and brazen attempt by the Central Planners, one that is quite clearly backfiring big time.  My favorite excerpts are below:

In waking up too late that there was a problem after gold futures markets have been flirting with backwardation for a year or so, officialdom was forced to act. Act it did in a typically haphazard fashion. A few days ago, on April 12 and 15 the paper gold market was demoralized by a ferocious attack on the lofty gold price. This in and of itself is proof that Bernanke is fully aware that permanent gold backwardation is imminent, and that it will create and unmanageable situation. It’s got to be stopped in its track at all hazards.

Well, well, well. Gold is not the same as frozen pork bellies after all. The Hydra is not taking it lying down. The kid gloves have finally come off.

Continue reading »

Tags: Antal Fekete, Backwardation, Ben Bernanke, Economy, Fed, Federal Reserve, Global News, Government, Mike Krieger, Politics, Stock Market, U.S.

- What Happened The Last Time We Saw Gold Drop Like This? (ZeroHedge, April 15, 2013):

The rapidity of gold’s drop is impressive, concerning, and disorderly. We have seen two other such instances of disorderly ‘hurried’ selling in the last five years. In July 2008, gold quickly dropped 21% – seemingly pre-empting the Lehman debacle and the collapse of the western banking system. In September 2011, gold fell 20% in a short period – as Europe’s risks exploded and stocks slumped prompting a globally co-ordinated central bank intervention the likes of which we have not seen before. Given the almost-record-breaking drop in gold in the last few days, we wonder what is coming?

This is what it looked like in Q3 2008…

and in 2011… Continue reading »

Tags: Economy, Global News, Gold, S&P 500, Stock Market, U.S.

Don’t miss!

- Ex-Soros Advisor Sells “Almost All” Japan Holdings, Shorts Bonds; Sees Market Crash, Default And Hyperinflation (ZeroHedge, April 14, 2013):

Previously, we have pointed out why Japan’s attempt at reincarnating its economy, geared solely at generating a stock market-based “wealth effect”, and far less focused on boosting the country’s trade surplus or current account, is doomed to failure, namely due the drastically lower equity participation by the general population and financial institutions in the country’s stock market. Sure, foreign investors will come and go renting each rally for a period of time, but unless the local population participates in the “reflation attempt” (which has already sent the price of luxury goods, energy and food through the rood), or in other words change the behavioral patterns of two generations of Japanese in under two years, the inflationary shock will simply leads to a loss of faith in the government and ultimately Abe’s second untimely demise. Not surprisingly, 4 months after Japan set off on the most ludicrous economic experiment in history, and one week after the BOJ announced its plans to double its balance sheet, Abe’s approval rating has already begun sliding with a poll by Asahi just reporting that popular support of Abe’s cabinet is already down to 60%, down from 71% a month ago. Continue reading »

Tags: Bank of Japan, Bonds, Collapse, Debt, Economy, George Soros, Goldman Sachs, Government, Japan, Politics, Quantitative Easing, Shinzo Abe, Stock Market

- Just Twelve WTF Charts (ZeroHedge, April 9, 2013)

Tags: Economy, Global News, Stock Market

- Dow Jones At New All Time Highs – Here’s Why (ZeroHedge, April 9, 2013):

Curious why the Dow Jones Industrial Average just hit new all time highs? Here’s a partial list of recent economic events:

• Markit US PMI    Miss
• ISM Manufacturing    Miss
• ISM New York    Miss
• Vehicle Sales    Miss
• ADP Employment    Miss
• ISM Services    Miss
• Challenger Job Cuts     Miss
• Initial Claims    Miss
• Trade Balance    Beat
• Non-Farm Payrolls    Miss
• Hourly Earnings    Miss
• NFIB Small Business    Miss
• Wholesale Inventories    Miss

And that’s ignoring the absolute economic collapse in Europe, the Chinese slowdown, and the Japanese economic basketcase.

What is there to even say anymore: Stalingrad 4 Eva! Remember: central planning works.

and if pictures are better than words…

Tags: Dow Jones, S&P 500, Stock Market