Rain or Pee?
Client Email - 2:30PM
I know you want market wisdom and you want to know what is next. Well . . . I don’t know. And anyone that tells you they know what is going to happen today and tomorrow . . . is lying. My line in the sand is still there. I don’t care if Bully Bernanke kicked sand in my eyes yesterday. He cheated. And he didn’t change anything . . . except to make things worse for this country and the world. Refusing to accept the consequences of our conduct . . . and attempting to just do more of the same old nonsense . . . only makes things worse. Period. Full Stop. End of Discussion. No need to waste anymore time discussing the consequences of what he did yesterday . . . hyperinflation down the road, and the chance to buy super high yielding bonds. Remember the high yields of the early 80’s when we saw 18% bonds? I can’t even contemplate what we will see this time. But I guess it is all relative.
Any way, here is its 2:30PM, just about the time I put my foot in my mouth yesterday. I’m not going to do that today. I have no pearls of wisdom for the market today. Our stock picks are all still sound. I stand by them all. We are not getting killed with margin calls like the last time we dipped on the roller coaster. We are also not leveraging up, so we are not going to have as healthy a bounce back, but that is just fine for this market.
And if you want me to comment on AIG or what Bernanke did yesterday or the FDIC nonsense today or Carney Frank or the aid to Detroit Suppliers or the Bond Buying Binge or the fact that yesterday GM said they did not need the B, but today GM and Chrysler are asking for B . . . let me just say, there is more than enough in the news and nonsensical chatter to go around. Every now and then, you need to take a step back and take a few deep breaths. You need to clean your eye-glasses and maybe put on sun glasses. Every now and then you just need to stop and watch the show. That’s all we need to do now, because the show is totally out of control, and everyone wants in . . . Geraldo Rivera is now a financial expert, as is Anderson Cooper, Lou Dobbs, Glen Beck, Jay Leno, Jimmy Fallon and Bill O’reilly and Chris Matthews. Tomorrow morning we will talk about what is going on, and I will be discussing a lot of things you will not hear in the media. For now let me talk to you about a more serious subject . . . Rain and Pee Pee.
Without rain, crops don’t grow and productive land turns to desert. Without money, our financial system comes to a halt. But there is a difference between good money and bad money, just like there is a difference between rain and pee pee. My very wise grandfather would say in Yiddish to one of his unscrupulous suppliers . . . Du kannst nicht auf meinem rucken pishen unt mir sagen class es regen ist.
This translates as . . . You can’t pee on my back and tell me it is rain. Ben Bernanke, Hank Paulson and Tim “the tax cheat” have been peeing on our backs, and telling us it is rain. They want us to believe giving all this money to Wall Street will produce crops like rain on a field. But they don’t explain that they are giving the good money (rain) to Wall Street and Bad Bankers. They don’t explain that they are promising us bad money (pee pee) - the inflated money we will be dealing with for years to come.
Rain or Pee? Bernanke wants us to believe it is rain. But what Bernanke just did was agree to buy up toxic assets from banks and put them in the Federal coffers for you, me and everyone else to worry about later. Bernanke also made Bill Gross, Mohamed El-Irian and Paul McCulley at PIMPCO very wealthy men. I should say much wealthier men, because these three guys have been pimping the Fed all along. The trillion dollars ol’ Ben is going to spend is not rain . . . it is pee. And it is really stinky pee at that.
We are just like the passengers on the Titanic (United States of America) that thought that the ship was unsinkable, and would stay afloat until they were rescued. Many stayed behind thinking . . . “why get into those cold lifeboats on this unsinkable ship, when I can sit here, listen to music and have another drink.” Just like we are sitting back and asking for another fix of borrowed cash, because surely Bernanke (a student of the Depression) has it right . . . this time. Once the crew of the Titanic started firing off the rockets, the passengers came out of their denial and of course chaos ensued. There is no one out there to rescue us. Period. Full Stop. End of Transmission.
And I will close with one my Grandfather saved for the really foolish folks that were running around doing things with no idea what the ramifications would be of their actions, then having their actions come back to stink them up . . . Er drayt sich arum vie a fortz in russell. This roughly translates to - He wanders around aimlessly like a fart in a barrel. This best describes Bernanke, Tim “the tax cheat” and Bair. Even more accurately, it describes Carney Frank, Chris “the con man” Dodd and most of Congress. But it does NOT describe Paulson. King Henry knew exactly what he was doing from start to finish . . . from the day he approved the creation of derivatives of death, as CEO of Goldman Sachs, till the day he wrapped up his stint as Treasury Secretary . . . where he finished off the world financial markets by handing out what he had not already stolen in the world of derivatives. Tune in a few minutes early for the call tomorrow. We lead off with some music again.
As for the rest of the day . . . turn it all off and go for a walk. Take a nap. Read a book. Don’t look at the market and tune out the talking idiots on TV.
Hiç yorum yok:
Yorum Gönder