Chances are this was a last stab at manipulating a broken price discovery mechanism prior to the rest of the world realizing the collapsing dollar Confetti's insolvency quandary accelerates will require hot money support, thereby moving focus onto weak links to be attacked, putting the euro-zone as well as its newborn brethren in swindle-land throughout emerging markets squarely in the crosshairs. Why do you think Treasuries were bid so strongly following the Fed's confirmation of its hopeless position? Because the lilliputian Confetti Fed, naked and insolvent, provides a credible backstop amidst a global economy whose excess capacity the criminal fascist Bernanke intends to shred rather than stimulate? Were the latter prospect in the works, Treasuries would have been throttled, instead of bid up like panic looms.
Thus is trash at the bottom of the capital structure rather likely about to be pitched...
We could see another couple days milking the Garbage Palooza crowd, yet this might occur only in the context of the market beginning to turn down, if only on account of its lift off late-August bottom having all the technical stuffing of a 100 year old teddy bear caught in a category 5 hurricane. Scam-a-Rama might have held tight its century supply of trash at the bottom of the capital structure and succeeded marking it up some, yet there were still fewer takers over the interim and these surely were tapped out today. They're all in and the only coattails to ride are worn by hopelessly bankrupt enterprises whose "regulator" openly confessed its desperate insolvency is no less acute than theirs.
Here's the problem these bankrupt pricks are frantically trying not to face. They can't even control Egypt. Sure, they can pressure Brazil's leaders into weakening the institution of the U.S. presidency for the moment, but even this luxury is yet to meet a BRICS positioned to compete with the IMF. Truth is, though, the bi-lateral political world reawakened in Syria is pointing in a direction where an old, dying order (the Imperial Mobster Front) is at increasing risk of being hung out to dry in another "necessity is the mother of invention" play. On this front we'll be watching Russia in particular.
Now, we could say "so what" to Confetti forcing the issue today, but the fact is his policy but more firmly locks the dollar reserve system in a position where forestalling its collapse must, must, must demand tribute drowning out the child in the crowd itching to scream the emperor has no clothes. Confetti's policy is not how allies are won and stability gained. Rather this is how hatred is sown and war is cultivated.
So, we can look forward to Venetians talking out of both sides of their mouths in a drive to pit powers much, much bigger than they are against one another. We should expect the U.S. dollar to come under considerable pressure, too, and this irrespective of hot money flows into U.S. Treasuries. Venetians will be fleeing and we can expect the imperial pound will be a beneficiary amidst chaos about to be unleashed. Already "super dove" and new BoE head Mark Carney has done an astonishing about face, saying QE in the UK no longer is necessary, and so like the trains in Europe has arrived right on time with subterfuge we should otherwise expect from Venetian brains.
Come time to dump Confetti in January the backdrop in which the Scam-a-Rama Garbage Palooza operates likely will look a lot different than today's. Hat tip to CNBC's Steve Liesman for finally breaching the silence during today's Confetti Fed Press Conference inquiring about intrigues surrounding the chairman's "retirement." No comment was forthcoming, thus confirming a radical turn is in store, and Yellen nothing more than a bailout junkie's pipe dream thrown on the front line to keep Garbage Palooza engaged.
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