Category Archives: Charts and Technical Analysis

Ben Bernanke Blinks and the Market Calls!

Gold, the HUI gold stock index, commodities and global markets have exploded to new highs, as Ben Bernanke decided to take the handoff from Alan Greenspan and run with the “asset bubble” ball by unleashing unbridled inflation upon the American people.

Greenspan has to be the luckiest man alive since that last Iraqi to make it over that Kuwaiti bridge in the Gulf War… all thanks to Ben Bernanke.

The market dealt Bernanke his hand and even with 3 inflation cards up, Bernanke blinked and decided to cut rates and bail out Wall Street. 

Bernanke’s decision to cave in to market pressure and to put Wall Street and the DOW above the American people and  fiscal responsibility, is a day that will live in infamy. It was also the day that insured “Greenspan’s Getaway” with his legacy as “Maestro” still intact.

And how about the Alan Greenspan legacy book tour?

Were you as amazed as I was?

From appearances with Matt Lauer on Good Morning America, to 60 Minutes and his book promo appearance charading as an interview with CNBC’s Mario Bartiromo – U.S. Taxpayers were treated to the equivalent of hoisting Barry Bonds up to America’s youth as the flag bearer of  sound mind, sound body and sportsmanship.

I almost gagged on my portabella tortellini when asked if he felt any responsibility for the present credit, subprime and housing crisis, and he replied – “No….none”

No responsibility for cutting interest rates to record lows and leaving them there far too long which created a global debt & credit orgy! “No responsiblity… none.”

 That’s beyond incredulous.

There’s irrational exhuberance and then there’s unbridled hubris.

The biggest bubble Greenspan ever created still remains unpopped.

— his ego.

I was nearly speechless when I saw his denial of “any and all responsibility” for this mess America finds itself within.

Do you want to know what I think about Greenspan’s legacy?

Alan Greenspan should be charged with crimes against humanity for dropping bombs of economic mass destruction upon  America’s economy and it’s people, because our children and perhaps our children’s-children will be paying for his ego and hubris.

  • The U.S. Dollar is collapsing.
  • Inflation is exploding.
  • The U.S. economy is rolling over into recession.
  • The Housing Bubble is going to make the “S&L Bailout” look like a pimple.
  • And millions of Americans stand to loose their homes, their jobs and their futures because of Alan Greenspan – and now Ben Bernanke.

Just look at this message from the markets.

Here’s what the market said about “Bernanke’s Blink.”

And the HUI Gold Stock Index explodes +120 index points in less than a month:

“Bernanke speaks and commodities answer!”

 Alan Greenspan has now exited — stage left. And Ben Bernanke has taken the “asset bubble ball” and decided to run with it.  Gold and commodities are not just reflecting a weaker U.S. Dollar, nor are they just riding a liquidity tide that lifts all boats. They are signaling that Ben Bernanke has  not only “blinked” and lost his “stare-down with inflation,” but that he has also adopted the Greenspan methodology of trading one bubble for another… digging America and Americans an ever deeper economic hole.

The Fed has injected a massive amount of liquidity over the last month with 3 repo injections of $31 Billion, $29 Billion and $38 Billion.

As the U.S. Dollar collapses, investors jumping upon this Fed & PPT orchestrated DOW bandwagon rally resemble those arranging deck chairs on the Titanic. 

In case no one else has noticed, those charts above have signaled that the lifeboats have already been launched.

— Michael Cerulean