The Money Printer — aka The Bernank — Announces He Won't Print (for now)

The Bernank disappointed today by not announcing a bailout of the traders and speculators. Surprised? I'm not. I guess many of the hyper-inflationist don't believe what they heard. The Money Printer has his hands tied. And those hands will only be untied after the next leg down and a major drop has happened.

Unsurprisingly, Ben Bernanke blamed the US government for all the issues, and didn't make himself accountable for any of the problems.

Interestingly enough, the USD is still not reacting to the news — same for most commodities and equities.

The market didn't react much to this non-event, it barely moved down on the news and it's still about flat-ish.

I wouldn't be surprised if the market closed higher for today, given that HOPE is the only strategy I can see in the market. Everybody is loading up on risk, hoping for the Fed to jump in with QE3 or to start a new crazy programme consisting of buying futures contracts start an operation twist.

One more proof of denial?
Statement on BloombergTV: "The equities markets expectations were very low anyway"
Reality: Goldman Talking about a $1 trillion QE 3 programme.

I could fine many of these, including the fact that all analysts are screaming "BUY BUY BUY" this dip.

It's a bit disgusting to see that after a 15% decline in equities — this is minor! — speculators are already crying for a bailout from daddy Bernanke.

I said many times ago: HOPE is not a STRATEGY.

Hope and greed are blinding these lemmings, which will fall in the abyss of the market at the next leg down.


Tiho said...

Don't you worry. Helicopter Ben has already started QE3 under the radar and he seems to have fooled so many people... but eventually he will be back in full swing telling people trillions will be printed.

Markets got oversold, they are bouncing. Majority of analysts now believe no QE is good news and that economy will be able to stand on it's own legs. I don't, as I'm bearish. There will be a next sell off after a rally and it will be due to more bad economic performance.

Where I separate from you is that I believe Bernanke will come in during that point, and reprint a whole forrest. It won't help equities much, but they will not crash like super bear deflationist think, but cash and bonds will e wiped out as commodities explode into a bubble blow off!

Don't sell your gold or silver pej, not if you want to make truck loads of money!!!

pej said...

Hi Tiho

I agree that he will come and print — this is obvious. But the negative mood and the disdain for this charlatan and wall street is growing at the moment, so he will only be able to print after the next crash (due probably soon!). But it means he will always be late.

moreover, if you look at one of Mish's posts about financial derivatives, you'll find a staggering number there: $600 TRILLION of financial derivates as per the BIS report.

I don't think The Bernank can do anything to save the markets given the amounts at stake.

No supposing that we do get a hyper-inflation and that the dollar goes to zero and gold to $1,000,000/oz. If you're holding gold, silver bars and coins (which means you are not leveraged), will you have made any actual profit? No. You would have only preserved the value of your saving — quite a good thing to do. But it means I would agree with the "make truck loads of money" statement only if that money is only good enough to be fed to a chimney.

Tiho said...

We already had a crash pej. Remember 2008/09?

These are the aftershocks now. I agree that the problems are bigger, but you fail to understand that you are looking at it fromthe wrong point of view.

The main problems lay with the public sector now, not the private sector anymore. If you are ultra bearish, like you seem to be, you should be shorting bonds or currencies of indebted governments... that is were the excesses lay. That is where the bad fundementals are.

Why are you shorting stocks when the US government has less cash on hand than Apple?

Also, I don't read Mish or any other random headless chook. These guys are almost always wrong, frequently too bearish, which makes them sound smart, and mostly broke unless they write a book. I don't just write a blog, I also make a living out of investing large sums of money I earn with my partners through the mining business.

Mish has been trying to short Copper and Aussie Dollar for years and years. Same with gary Shilling. How much money have they made? I happen to be long commodities for years and I made a killing.

These guys have no clue. Sticks to Jim Rogers. He is almost never wrong (opposite to Mish and other randoms) and is a self made billionare.

Mish is just a random fear monger like ZeroHedge!

pej said...

Dude, You have been doing very well. But you must be careful not to get sucked into the vortex. Everybody makes mistakes, but what's important is to be covered.

On my side, i've been making $$$ during the bounce, even though my posts remain bearish. I'm bearish long term, it doesn't mean I do not get long for a day or to, or play the risk ON trade in another way.

That said, I don't understand how you know what Mish says and does, and at the same time, you don't follow him :-)

That said, I am also interested in getting long commodities and even stocks, once I see value I can hold to for more than 2-to-48 hours. Until then, I won't post about bullish positions, as it wouldn't make sense to my readers.