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Veteran Advisor

The big question

http://futures.tradingcharts.com/javachart/CI/M?returl=w4

 

The "all one market" closed on the highs to finish the year as the hedge funds and bank prop desks rode the Bernanke Wind at Their Backs to book out huge bonuses.

 

Nevre seen a better stup for a major secular top in terms of sentiment, weird positive correlations etc. But on the other hand never seen an "all one market" created by massive government intervention, so how would I know?

 

I assume the game now remains run everyhting as high as it will let you while tryng to figure outexactly how 10,000 people are going to get out a 2 man door if the fire alarm goes off.

 

 

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14 Replies
Veteran Advisor

Re: The big question

Actually, they don't have to figure anything out- the year is over, the bonuses will be paid and they'll never have to pay a cent back.

 

Perverse incentives continue to create huge systemic hazard.

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Veteran Advisor

Re: The big question

Nox you should watch "Wall Street money never sleeps"  puts a good light on the "Game"  But your right the one market can't always go up!  What happens when the whole one market moves in unison towards the bottom?  29 will look mild! 

Bernake couldn't pour piss outa his boot if the directions were written on the heel!

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Frequent Contributor

Re: The big question

Happy New Year to everyone here.  A thought on Bernanke. 

 

I've got this nagging suspicion that it's not that Bernanke is doing a poor job, but that America's fiscal condition is far worse than what we think. 

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Veteran Advisor

Re: The big question

I agree I just like beating up on Black hawk ben! HE HE! 

A funny note a number of years ago right after the wife and I got married we were young and stupid and played the keep up with the Joneses game.  If it could be bought with plastic we did it. Man were we dumb after a couple years we realized this is all bad.  We got them all paid off and then just don't use them anymore.   That was the long way around saying that last night we went to buy a new Dishwasher.  I pay cash for stuff and when I went to pay for it the fellow who helped us was absolutly shocked that we didn't use plastic for the purchase.  I asked the clerk how many purchase with plastic and he said nearly 990-95% would and he said that most of the folks couldn't probably make the monthly pmt.

So your assesment of the country is probably right. JR

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Contributor

Re: The big question

JR......just because people are using plastic does not mean they cannot pay for their purchases......the credit card industry has developed all of these rewards programs and many are just taking advantage...

 

we got a Schwab 2% cash back on everything card 3 years ago and our goal is run everything we can through it.....bot a $7K used car this fall and asked the guy if I could run it through on my Visa.....sure......replaced our home A/C and did the same thing....

 

once a year I am requesting $500-750 cash back.....and it's tax free...

 

more than one way to skin a cat.....

 

stay warm!

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Senior Contributor

Re: The big question

Ray, it's not tax free, if you record the transaction as it should be.  If you deducted the expenses as farm expense, this becomes a refund against it.  Any auditor work his salt would figure that out very easily.  Just a warning.

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Highlighted
Contributor

Re: The big question

None of my credit card charges are business expenses

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Advisor

Re: The big question

You will pay income tax on the money you use to pay the CC bill.

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Advisor

Re: The big question

Sometimes it's wise to use a CC because of warrantys and returns.  If the product you buy  is defective and they won't take it back you can have your CC company refuse to pay it.

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