“The Fed is punishing savers and the Prudent Man by manipulating interest rates to zero. You can sit in cash and earn zero or you can be forced out on the risk spectrum just so you can keep up with inflation or your benchmark. Forcing money into risky assets is perhaps the most dangerous experiment ever done, and is so large in scale and so unprecedented that we have no idea how it will end. I expect it to end poorly and with hyper-inflation. The funneling of assets into risk is masking the deteriorating fundamentals and giving the appearance of a market that has bottomed. But this is sleight of hand, an illusion.
The Fed has declared a war on savers, a war on prudence and provided the ultimate Moral Hazard Card - and with our money no less. They are also setting up the ULTIMATE BULL TRAP - a trap so large that when it is sprung, perhaps as early as the end of the first quarter/beginning of second quarter, there will only be sellers left.” -Prieur du Plessis, Setting the Bull Trap
Monkey on your back: To have an addiction, especially a drug addiction.
-Urban Dictionary
Sunday, January 11, 2009
Setting the Ultimate Bull Trap
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5 comments:
Hello Ben:
I am glad to see you have finally drunk the koolaid and realized the Fed has only one option but to hyper-inflate this turd till she blows.
Yes, but you can get them back by buying their TIPS instead of stocks!!
--joe
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Very useful material, thank you for the article.
What namely you're saying is a terrible blunder.
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