crws's Account Talk

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Zero Hedge:
A Dollar-Devaluation Adjusted Market Has Barely Moved Above Its 2009 Lows
ES%20in%20GOLD.jpg
 
Birch- this is for you!

The Dukes of Moral Hazard: The Dangers of Quantitative Easing

What’s going on? As a Fed official explained it in a recent speech, "To be sure, I think it is fair to say that this is an imperfect policy tool. Even under the estimates noted earlier, the Federal Reserve had to increase its securities holdings considerably to induce the estimated 50 basis point response of longer-term rates. In addition, there is a large degree of uncertainty surrounding the estimates of these effects, given our limited experience with this instrument. Lastly, it is reasonable to assume that the effects of balance sheet expansion would diminish at some point, especially if yields were to move to extremely low levels. Nevertheless, the tool appears to be working, and it is not clear that we have yet reached a point of diminishing effects.

Some observers have argued that balance sheet changes, even if they influence longer-term interest rates, will not affect the economy because the transmission mechanism is broken. This point is overstated in my view. It is true that certain aspects of the transmission mechanism are clogged because of the credit constraints facing some households and businesses, and it is true that monetary policy cannot directly target those parties that are the most constrained. Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be. It seems highly unlikely that the economy is completely insensitive to borrowing costs and wealth, or to other changes in broad financial conditions.”
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http://www.youtube.com/watch?v=w8KQmps-Sog
Paranoia is in bloom,
The PR transmissions will resume
They'll try to, push drugs that keep us all dumbed down
And hope that, we will never see the truth around
(so come on)
Another promise, another seed
Another, packaged lie to keep us trapped in greed
And all the, Green belts wrapped around our minds
And endless, red tape to keep the truth confined
(so come on)

They will not force us
They will stop degrading us
They will not control us
We will be victorious
so come on

Interchanging mind control
Come let the, revolution takes its toll
If you could, flick the switch and open your third eye
You'd see that
We should never be afraid to die
(so come on)

Rise up and take the power back
It's time the fat cats had a heart attack
They know that their time's coming to an end
We have to unify and watch our flag ascend

They will not force us
They will stop degrading us
They will not enslave us
We will be victorious

They will not force us
They will stop degrading us
They can not control us
We will be victorious

Right on.
Muse is fantastic.
stadium8.jpg
 
Well, I wouldn't say I normally subscribe to capitulation, so I'll just say I should have stuck to the Sentiment Survey.
If the overall target of OPEX has been breached on the down side, there is no reason for it to stop at this stage.
Judging from the EU markets doubling their losses since the NYSE open, this loss could be sustained, as I still maintain a precursor to Big Bank's foreclosure fraud panic is in the works.
Wee shall see....
100%F
 
It wasn't Barney who won a Nobel prize in Economics for figuring out how to tranch Real Estate investments so they would be "safe". They should have flunked Statistics - there *always* is a chance for everything to go down.
 
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