Wednesday, May 1, 2013

The Needle And The Damage Done

The Fed just signalled that it will keep mainlining monetary heroin into the dying junky some people euphemistically call the "economy" -  until such time as it bounds back to vigorous health - or dies of a heart attack, whichever comes first...

The Wall Street junkies themselves are already signalling that monetary dosage is leading to overdose, but the Fed dealer "knows best" and will continue dosing at maximum output. You know things are getting out of hand when even the junkies are saying enough is enough. 

Let's get some pearls of 146 character wisdom from Pimpco, the world's largest bond management firm:

My Comment: Stock buybacks are used to cover-up dilution caused by stock option grants to insiders. They reallocate profits from public shareholders to insiders and are the biggest scam this side of Enron. More to the point, all of these companies (e.g. Apple) that are now issuing cheap debt in order to pay dividends are exhibit A that companies would rather give cash back to wealthy shareholders  than to invest in the real economy. In other words, the Fed's 0% interest rate policy has found two  new paths into offshore bank accounts - stock buybacks and *special dividends*


My Comment: Sounds familiar (the answer to the question is "No")

My Comment: See PonziWorld for full debrief on the "unimaginable"


My Comment: More plagiarism...

My Comment: Make up your fucking mind...