“There’s a term in chess called zugzwang,” writes Michael Sivy at Time, “which describes the point in a game when it’s your turn to move but every move you could make would worsen your situation. That’s pretty much what the chessboard looked like for Ben Bernanke this morning.”’[Read more...]
The newspapers and TV channels reported the Dow 15,000 story last week as though it were just a stepping stone on the way to 16,000… or 20,000… or 30,000.
Heck, the sky’s the limit!
Investors have reached a new level of bullishness. They’re borrowing again to buy stocks, confident that prices go in only one direction.[Read more...]
“Cash is king,” was once the old saw. The saying became passé in boomtime. Nobody wanted to hold on to cash. There were stocks and real estate to buy, not to mention big screen TVs and granite counter tops. Besides, the PhDs at Federal Reserve stay up late at night figuring out how to make money less valuable. Ben Bernanke and his colleagues keep printing the stuff to solve what they fear the most: insufficient aggregate demand and liquidity traps.[Read more...]
Three cheers for the Dow Jones Industrial Average!…or four, if you like.
Since setting its first new record high in more than four years last week, the beloved Blue Chips have marched ahead to six more record-high closes. In all, the Dow has advanced ten straight days — the longest winning streak since 1996![Read more...]
Mr. Ben Bernanke. Mythbuster!
â€œOne myth thatâ€™s out there,â€� he told 60 Minutes, â€œis that what weâ€™re doing is printing money.â€�
Ha. Ha. Ha. Can you imagine anything so laughable? So ridiculous? So absurd?
And to think that even we, at The Daily Reckoning, believed it. How could we be so credulous?[Read more...]
Apparently, late last night, from out of the spooky darkness, there was a sound that woke up my wife, and so she woke me up, wanting me to get up and go see what it was, which I figured would probably end up with me confronting some desperate, drug-crazed burglar who will pull out a knife and stab me over and over.[Read more...]
No matter how much I try to calm down, I canâ€™t stop being angry about the unbelievable, towering arrogance of the horrid Ben Bernanke, chairman of the Federal Reserve, when he actually said, â€œOne myth thatâ€™s out there is that what weâ€™re doing is printing money. Weâ€™re not printing money. The amount of currency in circulation is not changingâ€�!![Read more...]
Mr. Market finished higher this week, despite the best efforts of reality to sway his opinion. The Dow, S&P and NASDAQ all posted modest gains, even as the nationâ€™s economic firmament continued to weaken like the good intentions of a boozed-up quarterback on prom night.
How did this jovial market mood come to pass? Did the jobs situation improve? Nope. Housing prices go up? No way. Did the debt load of the United States suddenly start to shrink? Youâ€™ve got to be kidding. How about a change in policy…a move toward austerity…public denouncement of the idiots that got us into this mess? What? Have you lost your mind?[Read more...]
As were the days of Noah, so will be the coming of the Great Correction (38) For as in those days before the flood they were eating and drinking, marrying and giving in marriage, until the day when Noah entered the ark, (39) and they did not know until the flood came and swept them all away, so will be the coming of the Great Correction…[Read more...]