Thread: coolhand's Account Talk

Originally Posted by coolhand

Exclusive: Bill Gross Dumps All Treasuries, Brings Total "Government Related" Holdings To Zero, Flees To Cash - No QE3?

http://www.zerohedge.com/article/exc...ings-zero-flee

Financial innovation has only helped a select few. Gross agrees with Paul Volcker, who observed that the ATM is the only useful invention generated by the financial industry over the past generation.
Americans need to elect a whole new slate of leaders "who who can create something more than a cash machine" and "a Congress that cannot be bought and sold by lobbyists on K Street, whose pockets in turn are stuffed with corporate and special interest group payola. Are record corporate profits a fair price for America’s soul?"


http://www.pimco.com/Pages/Devils-Bargain.aspx

To rebalance debt loads and re-equitize financial institutions that should have known better, central banks and policymakers are taking money from one class of asset holders and giving it to another. A low or negative real interest rate for an “extended period of time” is the most devilish of all policy tools. And the asset class holder that it affects, or better yet, “infects,” is the small saver and institutions such as insurance companies and pension funds that hold long-term fixed income assets. It is anyone who holds bonds with coupons that cannot keep up with inflation or the depositor in a local bank who cumulatively holds trillions of dollars in time deposits that don’t earn a real rate of interest. This is the framework that has been created by modern-day policymakers who have innovated far beyond their biblical counterparts. To put it bluntly, they are robbing savers and taking money surreptitiously from longer-term asset holders who are incorrectly measuring future inflation.

Hank, Bennie, and Timmie
Jig's up.

Originally Posted by FireWeatherMet

Something bothered me about the article...so I re-read it...and this stuck out:

"leads us to believe that Bill Gross is now convinced there will be no QE3 at all, at least based on his just putting his money where his monthly pen is! And if Bill Gross...believes there is no more quantitative easing, it is really time to get the hell out of dodge in all security classes - bonds, and most certainly, equities."

Anything stand out?
leads us to believe...
at least based on...
if Bill Gross...believes...

How about pure, baseless speculation on what Gross is doing. Nothing on Bill Gross actually saying why he changed his holdings.

But here's the real kicker.
Ironoically, listening to NPR yesterday , they had none other than Bill Gross on an interview, and asked him specifically why he dumped all of his Treasury holdings.

His answer was very direct. He said that PIMCO analysis confirmed that we should see solid economic growth in 2011...and given that gov't bonds are only yielding near 2%, PIMCO needs to be looking for other sectors that are or will be offering much higher yields than T-bills....such as corporate bonds that yield 6-7% as well as more equities.

So much for the breadlines. At least hearing it from the horses mouth is better than reading a "guess" from someone who probably was pumping the Hindenburg Omen last summmer just before our 20% stock surge.

Not sure if this will play...but here is the radio interview with Bill Gross...about 4 minutes.

http://www.npr.org/player/v2/mediaPl...29&m=134433161

I still maintain Gross has the big stick, and he's not afraid to use it against Bennie.
Bonds have taken it in the arse during QE2, and I think BB will heed Mr. Gross's influence with the bond world,
letting equities take a no QE3, for the sake of not pissing off the collective buyers of MT US debt.
We'll seeeee!
PS- here's the (prob) video of that interview
http://www.pbs.org/nbr/site/onair/tr..._bonds_110309/

http://radioviceonline.com/senator-r...htbulbs-alone/

Quake Toll May Top 10,000 as Japan Fights Nuclear Accident

http://www.bloomberg.com/news/2011-0...top-1-400.html

Japanese Stocks Plunge After Strongest Earthquake; Tokyo Electric Tumbles

http://www.bloomberg.com/news/2011-0...arthquake.html

Saudi Stocks Advance After ‘Day of Rage’ Fails to Occur, Led by Al Rajhi

http://www.bloomberg.com/news/2011-0...wo-months.html

Oil Falls to Two-Week Low in New York as Japanese Quake May Limit Demand

http://www.bloomberg.com/news/2011-0...it-demand.html

EU Puts Burden on Bailout States to Stop Crisis: Euro Credit

http://www.bloomberg.com/news/2011-0...ro-credit.html

Lehman Probe Stalls; Chance of No Charges

http://online.wsj.com/article/SB1000...EFTTopWhatNews

To Avert Criticism, Fed Avoids Saying 'Core'

http://online.wsj.com/article/SB1000...WhatsNewsThird

EPA Tangles With New Critic: Labor

http://online.wsj.com/article/SB1000...WhatsNewsThird

New Worries for Buyers Seeking Mortgages

http://www.nytimes.com/2011/03/13/re...pagewanted=all

Here's What Protesting Public Employees Refuse To Understand Or Admit

http://www.businessinsider.com/heres...r-admit-2011-3

Stunning Photos Of Post-Apocalyptic Japan

http://www.businessinsider.com/photo...r-japan-2011-3

Saudi Arabia Prepares To Enter Bahrain

http://www.zerohedge.com/article/sau...-enter-bahrain

GOP hugs Bill Clinton to slam Obama on drilling

http://www.politico.com/blogs/politi..._drilling.html

Clegg unleashes tirade against bankers

http://uk.reuters.com/article/2011/0...72A6J920110311

Japan earthquake: Record-shattering breakwater can't hold back tsunami

http://www.latimes.com/news/nationwo...,4883014.story

I certainly don't know how the market will close today, but if we close down hard I would expect the Seven Sentinels to flip to a sell condition. Now as I've said many times before this is an intermediate term system, in which case I'd normally expect to see weeks if not months of declining prices, but this is not an ordinary market. Sentiment is not where I would expect it to be to support a long term decline, plus the Fed's POMO is still very much a factor. This means we could turn back up much sooner than I would normally expect.

I have been 50/50 cash/stocks for about 2 weeks or so and have no plans to change that allocation if the system flips to a sell. The longer term trend is still up and I only have one IFT left, so I'm holding for that next buying opportunity.

Stricken Nuclear Plant Rocked by Blasts, Fire

http://www.bloomberg.com/news/2011-0...ear-plant.html

Japanese Stocks Suffer Third-Worst Daily Fall on Record on Radiation Risk

http://www.bloomberg.com/news/2011-0...-declines.html

Treasuries Gain in ‘Flight From Disaster’ as Kan Warns of Radiation Risk

http://www.bloomberg.com/news/2011-0...is-rising.html

Saudi Arabia, GCC Troops Enter Bahrain as Popular Uprisings Threaten Gulf

http://www.bloomberg.com/news/2011-0...aten-gulf.html

Shipping Rates Poised to Decline 30% After Two-Week Rally: Freight Markets

http://www.bloomberg.com/news/2011-0...t-markets.html

Japan's Nuclear Crisis Escalates

http://online.wsj.com/article/SB1000...6312.html?mod=

More Mortgage Mischief

http://online.wsj.com/article/SB1000...ctions_opinion

Get Excited, Because Tuesday Is FOMC Day -- Here's What To Expect

http://www.businessinsider.com/fomc-...#ixzz1Gf7S96fR

President Obama staying in background on deficits

http://www.politico.com/news/stories/0311/51298.html

Super-catastrophe and super-banking risk

http://ftalphaville.ft.com/blog/2011...-banking-risk/

It's almost noon now and this market has retraced a sizable portion of its losses. I would not be surprised if the buying picks up later this afternoon.

I really don't think the powers that be want this market to fall apart and will do what they think they need to do to keep damage contained. That's my take anyway.

Originally Posted by coolhand

It's almost noon now and this market has retraced a sizable portion of its losses. I would not be surprised if the buying picks up later this afternoon.

I really don't think the powers that be want this market to fall apart and will do what they think they need to do to keep damage contained. That's my take anyway.

I agree, and hey...look...Oil @ 98/bbl

Commodities in general are getting hammered. Silver is down more than 4%.

Originally Posted by Frixxxx

I agree, and hey...look...Oil @ 98/bbl

With respect to quantitative easing, substitute Bernanke for Beale.



Here's another clip that I love.



and this one...