So Bernanke turns on the smoke machine and tries another magic trick...
Well that seemed to work for about a day! Financial stocks are already back on the decline
Jim Rogers: 'Abolish the Fed'Federal Reserve Chairman Ben Bernanke should resign and the Fed should be abolished as a way to boost the falling dollar and speed up the recovery of the U.S. economy, investor Jim Rogers, CEO of Rogers Holdings, told CNBC Europe Wednesday.
Asked what he would do if he were in Bernanke's shoes, Rogers, who slammed the Fed for pouring liquidity in the system and accepting mortgage-backed securities as guarantees, said: "I would abolish the Federal Reserve and I would resign."
If this happened, "we don't have anybody printing money, we don't have inflation in the land, we don't have a collapsing U.S. dollar," he told "Squawk Box Europe."...
"No country in the world has ever succeeded by debasing its currency," he said. "That's what this man is trying to do. He's trying to debase the currency as a way to revive America. It has never worked in the long term or the medium term." "Listen, investment banks have been going bankrupt since the beginning of time. If people make mistakes --
if you bail out every investment bank that gets in trouble, that's not capitalism, that's socialism for the rich," he said.
http://www.cnbc.com/id/23588079
Oil Rises Above $110 to Record as the Dollar Falls Against Euro
http://www.bloomberg.com/apps/news?pid= ... vacHWom1QI
^Keep your money in the bank and watch it become worth-less every day, put in in the markets and you're likely to lose even more. The reason that 'real things' like commodities are soaring is not only because the dollar is tanking, but also because people around the world are realizing the logic of investing in reality as opposed to abstract concepts are getting tired of playing make believe.
Contrary to popular belief, there are only two types of markets and they are not "Bull and Bear" but in actuality "hard and soft" assets. The media continually tries to reinforce that there is a direct relationship between the economy and the stock market, this is a fairy tale!
To illustrate the point look at the following charts. From around 1965 and 1982, the Dow had a net gain around 0%. The next 17 years it increased about 1200%!
Looking at the economy as measured by GDP, from 1965-1982 the increase was ~600% and the Dow was flat. During the following period (when the Dow went through the roof) the economy grew by only ~450%! WTF is going on here? If the economy and the stock market are directly linked as we're told how could this be possible?
Q: What is the missing piece of this puzzle?
A: Interest rates! Between 65-82 interest rates went from around 4-16% The 'big money' had no reason to look elsewhere for return on investment as they could get 15% on U.S. treasures. The dollar was strong and there was incentive for people to actually save money (what a concept!). As interest rates were slashed those 'in the know' began to look for higher returns elsewhere, which was the real cause of the meteoric rise of the stock market. Now that same money is going elsewhere...
Robert Prechter speaks on the 20th anniversary of the 1987 stock market crash he predicted (very informative):
http://www.youtube.com/watch?v=SjS60TaD_J8
Its actually quite simple, the stock market is fractal, just like everything else in nature including human emotions and arguably even time itself!
Try as he might, Bernanke has fate and history against him. Despite reassurance from the talking heads, many people can sense the coming danger, while others laugh and continue to rearrange deck chairs on the Titanic.