This Is Where It Gets Kinky

No I don’t mean Ben pulls a three-way. Its where Ben pulls a rabbit out of his proverbial ass. Now here is the problem. Everytime Ben pulls a rabbit out of his ass he has to visit his proctologist and it starting to run up quite a bill for him. Ben spent a major portion of his life studying the Great Depression while he burned bowls with his wild and crazy hippy buddies at Harvard and MIT. These guys were preparing for the future while they lived the purple haze in the hallowed halls. It wasn’t pretty but by the time it was over, Ben was a well-healed soldier. After the appropriate “cleaning up” and grooming at Princeton our Ivy League scholar was prepared to be brought in by the big boyz into the real “lever-room”. So here we are. This is where the rubber meets the road for the man of steel. He’s even able to stand up and face Q&A after a rugged day at the FOMC. This type of metal is not to be dismissed. After facing withering questions from the likes of Steve Loserman from CNBS one can only speculate how long Ben can hold up under this type of blistering cross-examination.

Of course he was able to not only defend our current monetary policy but managed to educate those of us in the wilderness of ignorance once again how monetary policy has no effect on the cost of essential currently and that inflation is under control. Of course he expressed displeasure and surprise that there has not been more job creation but of course we all know that will change in the latter half of the year. Meanwhile there is a slow sizzle going on in the Eurozone and the bankers just don’t know how to pull all the levers to get the creditors off scott free in all the PIIGS. No problem though…..they will….One way or another the bulk of the fallout will land squarely on the peeps. The test run in Greece showed the boyz how much stomach the Greek peeps had for a fight. They’re a little more nervous about those damn Irish though so my guess is they are in for another test soon before the move on the the volatile Spanish.

Enough levity let’s get down to business. IF IF IF we saw the bottom in the miners this year then there is more fun to come, but if you’re a short term trader I hope you were pulling some profit yesterday. They gave you a gift. I probably stayed to long in some but I did pull back some cash. The “pair trade” of GFI EGO is going as advertised….rarely do these pos rise in tandem…rotating them is a strange way to play a “pair trade” but it has worked with these range bound dogs.

GORO, GBG, ANV , EGO showed some very strong volume and moves off of this bounce which is hard for the boyz to disguise. I guess we’ll see.

OK OK….is Ben going to pull a rabbit out of his ass? answer YES….. but it gets tricky now. QE2 was a political no brainer for him but there may not be another overt QE……but make NO mistake there will be NO STOPPING QE and monetization. Without it there would be an immediate liquidity freeze. The only questin is what kind of rabbit comes out. It won’t be pretty and it won’t smell good. (sorry that was cheap) The reason it won’t be pretty is because the tricks will have less and less impact. Things are getting dicey gang. You can’t get those jobs going. You can’t get those houses turned around. This ship is going down…its just a question of how and how fast. gl

Read more at Great Depression 2