This comes from renown trader Larry Levin. I have a feeling this will strike home for many here:
By Daniel at 11 November, 2009, 10:34 am
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
“What we have learned since March is that the Federal Reserve may in fact be
bigger than the markets. The rally is rigged, but it is what it is - and it is
certainly going up.
In fact, the US dollar decline is what the Federal Reserve has purposely
engineered in order to manipulate the stock market higher. The Fed knew that
after the Japanese Yen carry trade had unwound, if it kept interest rates at
ZERO (for the anointed few only) for a long time it would wheedle the risk crowd
to start a new “carry trade.” They are now doing it in massive quantities:
borrowing then selling US dollars and using the proceeds to buy stocks -
pocketing the interest rate differential. When it ends, it will be a
catastrophe. The Fed is just blowing more bubbles.
When the Japanese did this they were straight forward about it: Japan wanted a
weaker Yen. Ask anyone in the Fed, Treasury, or White House and every lying
@#$%&! asked will lie to your face saying: We want a strong dollar. However,
100% of their actions argue otherwise. At least the Japanese have character -
something severely lacking in D.C.
In the end, the Fed doesn’t give a @#$%&! about you. The White House doesn’t give
a @#$%&! about you. Congress doesn’t give a @#$%&! about you…or your
kids/grandkids. All they care about are reelections and the banking sector; no
matter if it is achieved through your lower standard of living, a lack of
ethics, insolvency, no jobs, and no savings rates paid at banks - nothing.
Truth, sound fundamentals, strong/real currency are pass? - all which matters is
rigging equities higher - the free market be damned.
Just keep electing them and they’ll keep @#$%&! down your leg and tell you it’s
raining…and you will continue to believe it.
Trade well and follow the trend, not the so-called “experts.”"
- FBB
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.