Pento Rages Against The Central Planning Committee and GREATEST FAKE RALLY IN HISTORY
Zerohedge has the post:
Mike Pento Rages Against The Central Planning Committee And Moral Hazard
Submitted by Tyler Durden on 01/14/2010 11:46 -0500
Michael Pento Moral Hazard
Delta Global's Michael Pento refuses to go gently into that good central planning night:
[The Fed] is making the situation much, much worse and they actually caused the problem to begin with. They have the foolish belief that they can pick the right interest rate. The interest rate should be a function of the supply of savings versus the demand for money. If you have one person or twelve people on the FOMC deciding that interest rates should be 1% or 0% they distort the cost of money and they cause the demand for money to rise, they cause the amount of money in circulation to skyrocket, and then you get this rolling bubble economy. That has to stop, that's where we have to start...We have now inculcated firmly this bailout mentality in the country, and that also has to stop.
Comrade Pento, Comrade Pento... Do you know the meaning of the word Gulag? We sincerely suggest you familiarize yourself from a distance, before you are forced to make appropriate acquaintances in person. Please cease your spreading of objective and honest truth before the same FOMC you so vocally complain about, and its downstream apparatchiks, eliminate that particular optionality. Sincerely Yours, Liberty 33.
Good post here with some great charts:
GREATEST FAKE RALLY IN HISTORY
I truly believe that back in March 2009 at the market lows, the Federal Reserve, the Treasury, and the criminal mega banks met and decided they were going to create a recovery by manipulating the stock market. The government gave these banks $700 billion of TARP funds and the Federal Reserve loaned them money at 0% and told them to have their traders buy the market. The mega-banks did so with gusto. All of the profits generated from these banks have come strictly from trading stocks. They will now take home hundreds of millions in bonuses for doing the bidding of the Federal Reserve with no risk of losing. They are losing money out the yazoo from mortgage lending, credit cards, and commercial lending. They have been able to generate a stock market rally of 60% using free money. The banks then issued hundreds of billions in new stock in order to improve their insolvent balance sheets. Who were the buyers of this new stock? It was the financial institutions who were told to buy it by the Federal Reserve using free money. Do you get it? This is a gigantic ponzi scheme fraud.
If the average person has pulled money out of the market in the last year, how else could the market go up 60%? Open your eyes to this humungous fraud and do not be lured into this fake rally. You will end up being screwed for the 3rd time in 10 years.
Read and heed the rest is here: