jim p: re: "Liquidity vs. Reality"
I think business schools everywhere should be taking
notes on the mastery of how Bernanke, Paulsen & Co.
are handling the unfolding of the debt & credit crisis.
A textbook lesson on how to misdirect, manage, and
manipulate bad news and reality.
Love 'em, or hate 'em... you have to tip your hat to
Paulsen, Bernanke & the PPT.
Once again the public will never see the truth, and once
again Wall Street fat cats will walk away with bags of
cash while leaving shareholders and taxpayers the bill.
This morning we're seeing more "trickle down" news
dripping out of Merrill Lynch. CEO Stan O'Neal gets bags
of cash and shareholders get a $7.5 Billion Dollar bill.
Their little $5 Billion Dollar write down has now
ballooned to $7.5 Billion Dollars.
Hey, what's another $2.5 Billion between friends
and shareholders?
Jim P - said something to me that really puts the
entire issue in perspective in as few words as
possible:
"Liquidity vs. Reality"
And in essence, that really is the reason why
the market has held up with so much resilence,
and it's the reason why we saw such a strong
rally by GS and many financials up off the
bottom of the August correction.
And it's the reason the HUI gold stock index made
a 140 point move off the Yen-carry shakeout bottom.
Gold always has a way of speaking the truth.
So far, the "LIE" formula (Liquidity + Intervention +
Exports = Value and Direction of Market) is still
holding up the market.
..."so far" -- being the keywords.
Gold has a way of cutting through lies - so does Oil.
The issue facing the credit markets is whether we
are seeing "the beginning of the end, or just the
end of the beginning."
Fund managers and traders are sitting atop huge gains
for the year right here and trust me...they all have
already located the exit doors.
For that reason, the Fed must cut rates next week.
For Paulsen & Bernanke - Job #1 is "Herd Control."
..and "herd control" will be good for gold, because
in the end -- truth, always triumphs over LIE's.
S.O.T.B. |
