Reversals Reversals Reversals

Was yesterdays market action a sign of a Top in the equity markets?
After all the markets should have been flying the whole day after Obama gave us another huge stimulus bill via his extension of the Bush Tax Cuts.

Yesterday, I posted on Copper which is an excellent predictor of economic growth.

http://tradersutra.blogspot.com/2010/12/watch-copper.html

Copper is at a major resistance point. Copper has been on a tear of late greatly helped by global liquidity flows. Can it get thru this level and make multi year highs even in the face of China which is desperately trying to slow their economy?

Today lets take a look at the SP Futures.
IS this a little too perfect? Is this even the Kiss Of Death?

As you can see the SP Continuous Futures kissed exactly off its 61.8% Fibonacci retracement of the sell off from 2007. This point was at 1235 on the Futures yesterday. This is what we call a bearish hammer candle at the highs of the day. This is considered a huge divergence. Nasdaq futures posted similar technicals as well yesterday.

Gold, Silver, and Copper futures all had huge run ups mid day but were all faded towards the close. Gold and Silver are both referendums on Fiat currencies but also on global liquidity as well. These are momentum commodities. Are the turn arounds saying something about crowded trades?

Did I happen to state that long term interest rates have surged the last 3 months? Wasn't QE2 supposed to lower rates further?

Yesterday was a huge day for the risk trade. It was risk reversal day. We need to figure out of this continues today and the rest of the week. POMO is ramping up with a smaller monetization today followed up by bigger POMO's the rest of the week.

What also should be watched is the German Bunds Market. There was a failed bond auction in Germany today and the DAX couldn't close above 7000.

The thing that the market has going for it of course is free money from the Fed, but seasonality. Its year end and mark ups seem to happen this time of year.

BTW.....Netflix CFO resigned right after he sold $52MM worth of stock.

Bet Against Bernanke? Surely!

If you want a good tax loss then just buy shares in Ben Bernanke.
Want to lose everything you have? Bet on Ben Bernanke.

The markets were propped up again by a kick save by who else last week? The Federal Reserve AKA PPT. The markets were about to roll over last Tuesday afternoon when all of a sudden unbelievable manufacturing numbers out of China saved global equities. I don't know how this could be considering that the Chinese have basically telegraphed much higher interest rates in China over the last few months. Much better manufacturing data out of China is not necessarily good news as it portends the Jack Nicholson saying - "Its as good as its going to get." There are rumors of a very imminent rate increase in China as early as this weekend. If we see a 50BP rise in short rates global equities will fall.

In his 60 minutes interview:

http://www.cbsnews.com/video/watch/?id=7120553n

Ben Bernanke preposterously believes that Inflation is low. That is like saying my kid is doing great in school. He gets A's in Gym and Lunch, totally forgetting about the F's in Math, English, and Chemistry. This is because Bernanke and his band of thieves selectively forget the most important part of inflation which is food and energy. Just like the most important subjects in school or math and science, why worry about failing them when you are being graded on doing push ups and eating?

When Bernanke stated that he was 100% sure that he can prevent higher levels of inflation this was a sign that he had completely lost it. Only psychopaths can make this type of prediction. Let me state for the record that I am not in the hyperinflation camp, I am in the much higher inflation camp. The fact is we are beyond any type of real fix to heal or rebuild our economy. QE2 basically put this country over the cliff. Yesterdays announcement of extending the Bush era tax cuts only adds to the immense debt levels the country currently has. Adding new debt to the country is going to prolong unemployment not reduce it. Let me also say that the country is not bankrupt. We are not revenue constrained. We can always print more money but are we going to enjoy these low long term rates forever? Bonds have sold off ever since QE2 was announced. If rates spiral upwards then the jig may already be up for Bernanke. Taxes regulate our economy and balance out the reserves in the banking sector. There is simply not enough to balance and regulate. This is why the Treasury has to balance out the reserves to make up for the lost revenues via taxation.  

Bernanke just doesn't get it. He either is an economic imbecile or a complete elitist psychopath. Take your pick?

His desperate attempt to have stock prices at these elevated levels is simply beyond belief. Quite simply his 60 Minutes attempt to explain himself to soft ball questions really gives us a quick look into this mans head. Guess what? There is nothing there! I am still stunned by his assertion that he can control inflation 100%. Paul Volcker must be rolling over in his grave and the mans not dead yet! The only 100% assertion in regards to Bernanke is his track record. He has been wrong 100% of the time!  Why break a good losing streak? It is beyond stunning to me why people still take this guy seriously?

Lets review:

Bernanke didn't see the 2008 credit crisis coming.

Bernanke has no clue what systemic risk is.

So when he says that he is 100% sure he can control inflation, we all should sell Treasuries hand over fist and buy Gold/Silver with the proceeds. If Bernanke thinks he can control inflation then inflation is right around the corner.

In fact from the above graphic is that inflation in terms of food and energy is already here.

Wheat

Soybeans

Corn

Bernanke seems to think that there is no problem putting/keeping Barbara Eden back in the bottle but Barbara is already out of the bottle and not going back in.

So this guy has made these statements over the last five years.

1-Subprime is contained.

2-We are not going into a recession.

3-No housing bubble that is evident.

4-After housing blew up - Housing is bottoming.

5-The economy is recovering.

6-Labor market is getting better.

7-The banking sector is fundamentally sound.

8-I am 100% sure I can control inflation.

How in the world does this guy still have a job?

This guy is the ultimate MUSH!

A bet against Ben Bernanke is money in the bank.

Watch Copper

Watching High Grade Copper over the last few years have given great clues to what direction the broader markets are headed.

The metal is considered the standard bearer for the general health of the world economy. Copper has an excellent correlation to economic growth. This is because copper is used by many industries like the electronics and telecom industries. Copper usually rallies when there is greater visibility into global growth because its a bell weather for capital spending.

A 94% correlation is something that cant be ignored.

Copper coming up to another major point.

Can it get through this important level? A multi year double top?

This Time Is Different?

I am currently reading the Reinhart and Rogoff book "This Time Is Different."
An excellent read.

Please go out and buy this at AMAZON.COM

http://www.amazon.com/This-Time-Different-Centuries-Financial/dp/0691142165/ref=sr_1_1?ie=UTF8&qid=1291732006&sr=8-1

If you happen to buy it from this link I get a few shekels, not enough to live on let me tell you.

Well! The Futures are screaming higher this morning. Up some 12 points from last nights close. If they hold these levels it will be a new high for 2010. Yippee!

Looks like risk assets are getting a big bid as extend and pretend and TTID (This Time Is Different) is winning over Fraudclosure, European Sov Debt, Housing, and that small thing called jobs. The markets are also strong in the face of an impending Chinese Interest Rate Hike as soon as this weekend. But I digress, who cares when lower taxes, tax cuts and free money for not working trumps trivial stuff like reality, jobs, and commodity inflation?

Did I just say lower taxes? Tax Cuts? Oh Yes! I did! The markets are also stumbling over themselves like a drunken sailor on shore leave. In case you missed it our President- Barack Obama bent over to the GOP on taxes. This is not a surprise coming from #44. Should we call him Mr. December?

This is the deal on taxes:

Obama is extending ALL of the Bush tax cuts for two years. Which means after he loses the election the tax cuts will be made permanent. These are the same Bush Tax cuts that he swore would be reversed if he got elected.This is why Independents voted for him. This is why the ccultural/pprofessional Left voted for him.

Reduce the worker payroll tax for one year. From 6.2% to 4.2%.

Temporary reinstatement of the estate tax at 35%, which means again after he loses the election, the estate tax will be eliminated permanently across the board.

Extension of UI for the long term unemployed.

All of this of course is completely unfunded. I have stated before that Barack Obama is more like George W. Bush then George W. Bush himself.

http://tradersutra.blogspot.com/2009/11/obama-is-more-bush-then-bush.html

This is no longer a discussion.

Double down in Afghanistan? Check!
Keep GITMO open? Check
Keep Extraordinary Rendition? Check!
Do not prosecute banksters? Check!
Keep State Secrets? Check!
Keep Defense Budget near $700B? Check!
ObamaCare like Bush Medicare Part B? Check!
Have Lobbyists and PACS dominate? Check!
Extend & Pretend into oblivion? Check
Reappoint Bernanke after Bush mistake? Check!
Keep Bush Tax Cuts? Check!


There are hundreds of examples of the Obama policy that is lock step with the Bush policies, this is just a taste of the massive betrayal of #44.

I have never seen a President in my life or in modern times betray the country that elected him as much as Barack Obama. Bush may have been a dolt but he at least catered to his base. Where is Obama? Massive loss of respect and trust will lead Independents and the Left to abandon Obama. The Democrats would be stupid to renominate him in 2012.

What this means to the market short term is more Alice In Wonderland. What it means mid/long term is Alice In Chains.

I keep hearing This Time Is Different. Don't Fight The Fed. Don't Fight Big Money. Don't Fight The Tape. How did this work for everyone in 2000? 2007? 2008?

In the short term, investors have a long memory. Its like putting your hand on a hot oven. But in the mid and long term the memories are very short and the same idiots that were buying Ariba and Commerce One at $500 are buying Chipolte, Bidu, Priceline, and Netflix at the same valuations. Remember! This Time Is Different.

I would like to leave you with two links that tell me that nothing really ever changes.

http://www.thereformedbroker.com/2010/12/07/the-stocktwits-ascendancy-now-on-yahoo-finance/

We now need to hear the missives of total idiots when getting quotes on Yahoo?
Is this anything different than the Silicon Investor and Clearstation? What about Meritocracy.com?

http://www.thereformedbroker.com/2010/12/05/three-ideas-for-the-under-invested/

I can say one thing regarding human nature. Its never different anytime. Doing the same thing over and over is insanity. You cant fix a debt and leverage crisis with more debt and leverage.

This little end of year market melt up will end badly in tears.

Bernanke Pulling No Punches.

I must admit, that Ben Bernanke's speech on Friday in Frankfurt, Germany was an excellent speech. Bernanke was clear, thoughtful, and insightful in his remarks. I have been very harsh on Chopper Ben, but I have to give the man his due.

He basically made a passionate point in regards to unemployment stating that millions more on the breadlines was unacceptable. Well of course it is. What Bernanke said on the state of the labor markets and the unemployment rate is open for debate. It is refreshing that he at least for the first time he is openly being empathic to Main Street. For this one point he needs to be given props.

His pointed comments about China and the general state of world trade is something I believe that is not open for debate. I believe that this particular speech basically says to the rest of the world that the USA is not going to be able to grow everyone out of slump they are in. He is making and taking a stance that the whole world if they want to decouple away from the US, he is all in favor of it. His speech on re balancing the world economy is the first salvo being fired stating that the US has surrendered unquestioned financial and economic leadership. Bernanke along with Geithner have started to let the entire world know that you guys are on your own if you don't start to fix the imbalances inherent in your economic systems.  

Look at it this way. We have massive current account imbalances all over the world. The number one reason is CHINA. China is pegging their currency to our dollar. They print up Renmimbi, use it to buy more USD, then use that to buy US Treasuries. This lowers our long term interest rates but massively distorts trade and current accounts here and around the world. The low long term rates were one of the reasons that we had a housing bubble here in the USA. The Fed leaving short rates very low is the biggest reason as all excess savings, leverage, and asset price inflation was exported to emerging markets. Emerging markets then took all of their savings and investment and plowed it back into the US. The credit markets were massively obese from all of the money that was being repatriated back to the states. This is what is commonly called the Global Savings Glut. Money has to go somewhere and it flowed into commodities and credit.

What the result is China has some $1.6T in USD reserves sloshing around in their economy. Normally, the CNY would be a lot stronger, but the Chinese is pegging their currency within a band, so they are manipulating their currency by not allowing it appreciate vs the dollar. This is unquestionably preposterous behavior by the Chinese. Let me first say, its not anything that the US has not tried or even succeeded in doing over the years, but China is really postponing the inevitable free floating of their currency. When that happens, the export party that China has been enjoying is over. This will be very good for Chinese citizens as their purchasing power goes up, but devastating for the Chinese economy as their imports are a lot less attractive at the higher CNY rate.

So what are developed countries and societies to do? The US as well as Europe are stuck in a slow growth high unemployment situation while EM societies struggle with high inflation and huge capital inflows. In essence the developed world is exporting not only jobs but capital and inflation as well. Bernanke is warning China and other Asian Tiger countries to let their currencies appreciate or face another global slow down. A global slowdown that the USA will not be be able to fix by themselves or subsidize. Bernanke is making the point that if Asian societies don't start to de peg from the dollar, the USA will not ease the burden when shocks hit the system. Bernanke in essence is admitting that US policy makers could and would no longer determine policy based on domestic conditions and force the rest of the world to tow the line.

What Bernanke and Geithner have discovered is that after the US housing market collapsed, the economy was severely weakened. We have a trade deficit, high unemployment, and federal deficit that are all structural in nature. US Policy makers have belatedly discovered an inconvenient truth about the virtues of globalism. 

Is this Bernanke's version of Paulson's bazooka? Is he stating that the US is no longer going to take this type of brazen currency manipulations for much longer? That there is a direct consequence for Chinese currency manipulations and that the US will allow the pain to spread much further the next time. You won't have the US cleaning up the mess or trying to re balance the pain the next time.

Bernanke is stating that a "two step" recovery may not be sustainable, that millions in unemployed US workers will have to be dealt with. He has made these similar points to the US Congress as well. Stating that a proper fiscal policy needs to be implemented to reduce structural unemployment and get growth going again.

Bernanke is letting everyone know that he is getting tired of printing money. He is printing money to sustain the US economy because heck no one else seems to care.

Bernanke is acknowledging that globalization has made it impossible for one to conduct efficient monetary policy in one country without global assistance and participation.

The speech that Bernanke made Friday is a very important speech that basically is a pointed threat that states that everyone has to start pulling their own weight and water.

Will History Repeat Itself?

The more things change the more they stay the same.
History repeats itself.
This time its different.
Blah....Blah...Blah....
Yada...Yada...Yada...

Here is a chart of the SPX as of today's close.

As you can see, the action in the SPX today is very similar to what was happening earlier this year. The market had a serious breakdown in early February over the Greek Debt problems. It completely forgot about those problems and marched exponentially higher for the next 2 months. It then had a serious break of its vertical uptrend in late April, it tried to fill that down gap back to its uptrend line, but that failed and the ensuing pain was felt culminating with the Flash Crash on May 6th.

Today, we have something very similar. The markets on the backs of QE2 have had a vertically exponential run up since late August. This sharp run up was broken this past week when the Irish Debt problems became a huge global focus. The last few days the market has been trying to get back above that trend line or fill the gap.

What happens next?

Requim For Bernanke Cont...

In my previous post  I was giving Chopper Ben some props for his the speech he gave in Germany. It was a clever, well scripted, thoughtful, and well prepared speech. Chopper Ben just went up 1 notch in my book. He has a long way to go but this was a strong first step in actually talking about Main Streets problems.

One thing caught my attention. It was his feelings about Inflation.

"Low rates of resource utilization in the United States are creating disinflationary pressures. As shown in figure 5, various measures of underlying inflation have been trending downward and are currently around 1 percent, which is below the rate of 2 percent or a bit less that most Federal Open Market Committee (FOMC) participants judge as being most consistent with the Federal Reserve's policy objectives in the long run. With inflation expectations stable, and with levels of resource slack expected to remain high, inflation trends are expected to be quite subdued for some time."



"Importantly, the Committee remains unwaveringly committed to price stability and does not seek inflation above the level of 2 percent or a bit less that most FOMC participants see as consistent with the Federal Reserve's mandate. In that regard, it bears emphasizing that the Federal Reserve has worked hard to ensure that it will not have any problems exiting from this program at the appropriate time. The Fed's power to pay interest on banks' reserves held at the Federal Reserve will allow it to manage short-term interest rates effectively and thus to tighten policy when needed, even if bank reserves remain high. Moreover, the Fed has invested considerable effort in developing tools that will allow it to drain or immobilize bank reserves as needed to facilitate the smooth withdrawal of policy accommodation when conditions warrant. If necessary, the Committee could also tighten policy by redeeming or selling securities."

This last part is interesting in the sense that he is stating that the Fed has a mandate to keep inflation in check to the tune of 2%. Now, if CPI prints a little higher in one particular month say .4 or .5 which comes out to way above 2% annualized, does this mean that the Fed will act and stop their QE program? Is he stating that inflation is very tame at the moment so its a good time to try this particular scheme, but if we see upward pressure on the CPI, all bets are off?

My personal opinion is that deflation is much more of a problem then inflation. This is at the moment. The countries biggest asset which are homes are losing value every month. Debt Deflation is the biggest worry. This obviously is the biggest worry that Bernanke has. My plan would be to let housing go through what it needs to go through. Restructure the debt and let bad firms go bust. Capitalism without failure can't exist in our country. Homeowners who don't pay their mortgages should be kicked out of their homes and put in rentals. None of this staying in your home for free for years garbage. Once the banks cleanse their balance sheets, they will start to make prudent lending decisions.

We will see some higher CPI prints in the coming months, the Fed will be worried about this. Who knows if they curtail their POMO's and QE, but one thing is certain, the Fed and Bernanke are letting everyone know the pressure they are under in terms of inflation. Bernanke has made his point about fiscal and trade policies.

Will the market call his bluff about inflation?

A Requim For Chopper Ben

Helicopter Ben is speaking in Germany today. He basically makes the point that millions of unemployed workers are unacceptable and that another round of QE was justifiable under current conditions. Its nice that he has come to this conclusion after all the Obama Administration thinks getting a gutted FINREG bill passed and enacting a useless Health Care Bill that is only another giveaway to the industry lobbyists was and is more important than jobs.

I have to give Benny Inkjets some props here. He is subtlety making the point that Congress is useless and that fiscal policy is more useful in creating jobs. We all know this is true. QE doesn't create jobs or increase aggregate demand. Fiscal policy, stimulus, and targeted tax cuts can increase AD and create jobs. Throw in some real foreign policy and a reasonable trade policy that protects Americans from jobs from fleeing to Manila, Bangalore, and China, and we may have something here. In the absence of competence, Bernanke is forced to use unconventional monetary policy to tackle mismanaged fiscal/trade policies. With the GOP reclaiming the House and gaining ground in the Senate, the emphasis is going to be away from further stimulus and spending but tax cuts for the wealthy is back on. The gutless Democrats will go along with it which means perpetual double digit unemployment for the foreseeable future. This means Bernanke will ratchet up more unconventional monetary policy, which means a perpetual ponzy scheme between Treasury and the NY FED will continue on.  This leads to both FINREG and ObamaCare partially defeated or even outright killed. The two big issues that Obama was obsessed about in his first two years totally down the drain.

...And they tell me I am too pessimistic!

I get his reasoning for QE, I think its stupid and misguided. My problem is why doesn't Chopper Ben come out and say it like it really is?

He should say the economy is bad. It can quickly unravel because the banking sector is in a zombie like state. The thing that most Americans look to in terms of the economy is the stock market. If we can prop up the stock market short term we can hope that the economy can come back. If w can create another bubble, hopefully this bigger bubble can close the gaps from the last one. When this current bubble bursts I can just blame Congress for not balancing the budget and fixing the trade policy. I can blame Obama for continuing to fight two ludicrous wars. I can blame Congress for extending the Bush tax cuts across the board which will increase the deficit which means I have to print more money to cover Treasury's borrowing needs, because China won't be as aggressive in buying our debt because by god they already own $800T. We can't keep hoping that the  Japanese can fund their deficits thru our Treasury Bonds via the interest rate differential. Those Japanese women are not fertile enough to expand their population, and the closed Japanese society wont open their borders to new entrants. All of this leads to the fact that Japan is quickly aging and an aging society is not a saving society. All those JGB's will soon not be rolled over but just cashed in to pay for the care of the Japanese elderly. When this happens, we can suggest that JGB rates will be higher. When JGB rates go higher, Japan's borrowing costs also go higher. When that happens its game over in the land of the rising sun. Bernanke would also be right in letting Congress know that their immigration stance should also be looked into. This country needs immigration, "legal" immigration is needed because for what ever reason Toll Brothers and their band of thieves keep building houses that no one wants. Probably because they are incentivized to do so by the government via our tax dollars.We need to expand the population and lower the average age in the USA. This is structural in nature. Congress doesn't seem to care about structural problems like unemployment or the deficit. They care more about cyclical issues like tax cuts.

Why can't Mr. Chopper come out and say the reason I am enacting QE2 is because our banking sector is in serious trouble, soon it will be toast. What degree of burnt do you want? The recent fraud closure problems the banks have been conducting only leads Bernanke to believe that the entire system is surprisingly rotten to the core. The basic rule of law doesn't apply to the banking sector and it never did. The Obama Administration along with Treasury and the Fed have moved mountains in favor of Wall Street and the banking sector, they have moved rates to permanent zero so that the banks can rebuild their Net Interest Margins. They have instituted HAMP and other tax payer giveaways so that the banks can pile on fees to homeowners without fixing the underlying problem regarding housing finance which is a severely overvalued housing market that needs principle mortgage reduction. They have instituted accounting fraud via FASB rollbacks so that toxic garbage loans can be priced way above fair value. They have made Fannie/Freddie the new AIG. This is the dumping ground for all of the bad mortgages that Wall Street doesn't want. Yet after all of the bailouts. All of the handouts. All of the giveaways. The banking sector is insolvent! Why you ask? Its quite simple! Its the debt stupid! Debt needs to restructured and in many cases defaulted on. If we don't get these bad loans of the books this economy can't recover. If we don't prosecute fraud and miss dealings in the banking sector the economy can't recover because there is no confidence in anything.

Ben Bernanke and the Fed can't fix these structural issues.  He can only make monetary policy accommodative so that the banks can try to right their ships, but the banks are run by traders and most traders on Wall Street are psychopaths. They have no clue that their bacon was saved by the tax payer. These guys walk around like they are stars on a porn set. Instead of doing the right thing, they have paid lobbyists hundreds on millions of dollars to make the system more complex and more accomodative to their needs. They continue to pay themselves billions in compensation because they can. The CEO's and trader supply chain are richer than ever, but the taxpayers and shareholders will be left holding the bag. Bernanke knows all of this, the country doesnt have the stomach for another bailout of Wall Street and the banking sector. QE2 is 100% another shadow bailout for the psychopaths on Wall Street.

Stupidity At UCLA

Man I tell ya!
You live long enough and you will never be surprised how stupid people really are. Its not that stupidity is not prevalent in our society, we have huge copious amounts of it. But when supposedly smart people start talking like dolts is really when I would have to say enough is enough.

The Chair of The UCLA Economics Department Roger Farmer has this beaut of a piece in the blog section of FT.

http://blogs.ft.com/economistsforum/2010/11/how-to-restore-confidence-in-the-us-economy-without-inflating-a-new-asset-market-bubble/

Few things right off the bat.

1- How in the world can FT publish this drivle?
2- Now I know why California is in such trouble
3- What type of hash is this dude smoking?
4- Mr. Farmer must be long a lot of stocks or himself directly involved in a Ponzy Scheme

He can single handily solve all of our deficit problems if he can just give us the formula for the mind altering drug he was taking when he was penning this article.

Mr. Farmer doesn't want the Fed to indirectly prop up the market, as they are currently doing, but to directly prop up the market.

He wants the Fed to not buy Treasury debt but stocks. In his own words.

"I have argued in this Forum that more QE can create jobs and prevent a second Great Depression. But it matters how the policy is implemented. The Fed should buy stocks not bonds. And rather than commit to a fixed programme of stock purchases, the Fed should use its market power to stabilize swings in the stock market and smooth out bubbles and crashes."

I can't even begin to address the flaws in his logic.

There is more....

"If the Fed were to announce that the Dow would not be allowed to drop below 11,000 over the next three months, for example, it would provide the confidence to private investors to move back into the market and spend some of the $1,000bn in excess reserves that are sitting in the banking system. But guaranteeing no downside to stocks is not, on its own, a good idea. The Fed must also limit swings on the upside. If QE simply fuels another unsustainable asset market bubble it will have made the problem worse, not better. Just as conventional monetary policy stabilizes swings in interest rates, so unconventional monetary policy must stabilize swings in asset prices."
UNREAL! UNBELIEVABLE!

Mr. Farmer wants the stock market to trade with in bands. The Fed should sell stocks if they get to expensive and buy them if they get to cheap.

This guy heads the Econ Dept at UCLA!

The only reason the market exists is for allocation of capital to private hands and price discovery. Why have any Risk Management via Futures and Options?

The Federal Reserve with their meddling have only increased the dislocations and distortions in the capital markets. What you are seeing at the moment in the stock market is that the QE reflation trade is collapsing. When you create distortions from meddling, the only thing you really increase is volatility. When you create dislocations, volatility, uncertainty, and certain collapse in prices are whats in store.

Is there any reason why the Fed wanted higher stock prices leading to GM's IPO tomorrow?

Mr. Farmer's missive is so preposterous that I can't believe FT would publish it.
With Goldman Sachs and the 40 Thieves already owning DC, they would be able to free front run every single trade from no one to the end of man kind. This is socialism for the rich and busted capitalism for the rest of us.

Why in the world do we still believe in Free Markets?
Why do feel free to say the words Free Market anymore?

Mr. Farmer should be carefull - Ben Bernanke I hear reads the FT every morning when he wakes up.

Warren Buffet's OpEd in NYT.

I have posted before about Warren Buffett.

http://tradersutra.blogspot.com/2010/05/enabler-from-omaha-speaks.html

http://tradersutra.blogspot.com/2009/11/warren-buffett-is-not-good-guy.html

Today's OpEd in the NY Times doesn't change my opinion. It only fortifies it.

http://www.nytimes.com/2010/11/17/opinion/17buffett.html?_r=1

He should can the phoniness and just start out with.............

Thanks Morons.

Thanks Morons for bailing out Goldman Sachs.

Thanks Morons for bailing out Wells Fargo

Thanks Morons for not coming down hard on Moody's.

Thanks Morons for allowing the Banks to leverage up and take ludicrous risks without supervision and regulation.

Thanks Morons for giving us a impotent FinReg bill that will only further enable GS and Wall Street to take even more out sized risks that will sink the economy but not me.

Warren Buffett had no clue about the factors that led up to the financial crisis. He talked a good game about derivatives but allowed Berkshire to be knee deep in them. He personally enabled Moody's to conjure up phony ratings for hundreds of billions of CDO's. CDO's that GS packaged and sold all over the world.

He talks a good game about taxes and the such but somehow I must believe he is in the ear of Obama pleading with him to extend the tax cuts across the board.

In short, I don't believe anything this bum says. He has conveniently told the truth when it has served Berkshire's purpose. He is no different than Bernanke and Geithner.

Warren Buffett is a bad guy. I can't say it any clearly than that.