http://www.bloomberg.com/video/u-s-...ion-achuthan-says-ey7VB61IT_C~3e4bp4YO_w.html its an interesting conversation.
The massive amount of liquidity that has been pumped into the system has prevented/delayed a depression -- for now. The leverage has not gone away it has been shifted to stronger hands. But we have no way to unwind what we have done and therefore no way to assure that there will be any strong hands left when needed. Very dangerous things have been done for decades and we have doubled up the bet. All that comes to mind is Shakespeare: "Cry havoc and let slip the dogs of war."
We're in a recession but the FED will continue it's money printing unabated. I would buy all dips from here on out. RT had a nice graphic of QE start dates/end dates. The market rallied right at the start of QE 1, 2 and 3. It sold off at the end of QE 1 and 2. Bottom line is the FED will never stop printing money until the dollar collapses or we get another bubble. The question is not whether to go short or long, but when to get long and which assets. Buy the dips. As far as industrial output, exports, power consumption, anecdotal conversations, Asia is at zero growth, according to Marc Faber, an investor I hold alot of confidence in. US growth is slowing (hence QE3). Europe is in recession. Anyway, it doesn't matter. Economic data and reality DOES NOT MATTER ANYMORE. The market is rigged. 5 years ago, you would have got laughed at had you mentioned the Plunge Protection Team. Now it openly exists. And it's called the Federal Reserve Bank. If we go down, we print until we go up. If we go up, we go up. This is probably the easiest money to be made since the nazdaq bubble. Leverage long, buy gold and silver, buy google and apple, buy the dips and sit on it. The only fly in the ointment is the fiscal cliff. If Congress doesn't raise the debt ceiling within ~1-2 months after the deadline, after all the jerry rigging and "borrowing" of pensions funds is made, then we collapse. But it's 99% grandstanding. Those motherfuckers in Congress get and stay elected by raping the Treasury. They will do what it takes to raise the debt limit and we continue on our merry way to utter and complete destruction.
your posts mention google aapl,ibm down 10%,its 1 15 am central and the spu's have a 3 point range since the close, that is because we all know and except the manipulation that occurs every expiration and we allow it because we have no choice, we do but it ends up coming out of your acct,so it's a bad choice, we have been in a recession ,depression since may 08, the fed and the respective clones globally have adjusted it since,not unlike the tech bubble and R.E. bubble and they may do the same for another 4 years, so a recession or depression has been replaced with a transition from historic markets and debt management to a genetically modified organism (gmo) http://rense.com/general92/avoid.htm
just like argentina. we do whatever is necessary to keep our leader in power. god help the US once the inflation genie is let out of the bottle. nowadays will be remembered with fond memories.
I thought we just needed to look at the GDP prints to see whether or not we're in recession? Are we making this more complicated than we need to?
Seems a bit like the man who jumps from the 90th floor of the Empire State Building and shouts as he flies by the 30th floor "So far, so good". When it takes this much liquidity to provide <2% growth it is more like a coma than a recession. It is scary jut how much intensive care it takes to keep this patient alive. Anyone care to hazard a guess as to GDP next year if we remove the life support?