Saturday, June 23, 2012

Is a Bag of Tricks is All That Matters?

Don't know how but I missed quite the twitter post from @Pimco #BillGross recently. I like Bill. He is as market astute as they get.  I just can't help pointing out his bouts of hypocrisy, from time to time. That being said, his twitter post on Jun 21 was a doozy. Here it is as it appeared then;

"Gross: Risk markets at risk as monetary bag of tricks empties"

Hang on a minute.

Do you mean to tell me that the recovery all these shills and charlatans on CNBC and Bloomberg have been crowing about is a facade? Does Bill mean to say that the Fed is the impotent Wizard of Oz behind the curtain, that the whole thing has been a monetary magic show?

In turn, am I to believe that the smart money, Ivy league MBA, 2+2=6 crowd knows this? I mean they're the smart money aren't they? They're gambling, excuse me, investing your hard earned 401k, IRA and pension plan money in the markets based on sound macro and micro economic and fundamentals analysis right? Due diligence on stuff like employment numbers, incomes, balance sheets, bond yields, foreclosures, debt levels, profit margins, capacity utilization, historical ratio comparisons, NET cash levels etc.

These financial genius types surely wouldn't be betting, excuse me again, allocating your retirement assets based on the Fed's monetary 'hocus pocus in the hope that they will get a seat first when the music stops ( a la Chuck Prince) before all the other smartest in the room, Ivy league MBA, 2+2=6 types do?

They would never be invested in a fundamentally deteriorating market with the risk skewed horribly to the downside. I mean surely those that tried this during the dotcom bubble- those that knew the field was a field of mines yet still ventured in chasing bonus's- and yet again in the liar loan, NINJA mortgage fueled housing bubble have been drummed out of the business. (Ha ha if you think this then you don't know Irvin Goldman of JPM (formerly Cantor Fitz) or the Lehman or Bear genius's relocated on Wall St.)

They had to have learned from the dotcom and housing bubbles there are never enough seats as there is ego to go around, not matter what daddy told them about how smart and special they are in between tennis and golf lessons at the club.

I have surmised in the past the those in the know, know the ship is in big trouble and are stealing anything not nailed down before it sinks. I have indicated that the Fed and Treasury's machinations are only a stay of execution of the mathematical inevitable. Actually Bill Gross could have replaced the phrase monetary bag of tricks with Ponzi tactics collapse.

Or as I said in my own twitter post Jun 19

"In u ignore bond yields, job mkt, 4closures & debt levels, all that matters is easing which, sans , =yet more suckers"

In a Ponzi scheme and to those Ponzi worshippers, whose incomes & bonus depend on the ponzi continuing, a bag of tricks is all that matters. Its simply cloaked in official sounding phrases like "don't fight the Fed" & "quantitative easing" to gain respectability.

No comments: