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-- Posted Monday, 21 December 2009 | Digg This Article | | Source: GoldSeek.com
Time magazine chose Helicopter Ben as “Man of the Year,” supposedly because the financial system would have collapsed if not for the unprecedented emergency actions pursued by Mr. Bernanke’s Federal Reserve. We’d say the jury’s still out on that one, since Phase II of the central bank’s ingenious recovery plan – i.e., pray that the mountain of worthless debt still held by the banks eventually rises in value – has yet to bear fruit. We’re skeptical ourselves that this can or will ever occur, since there is no way the mortgage collateral that underlies much of that debt will ever return to anything remotely approaching the boom levels that obtained before the subprime lending market collapsed in 2007. Our skepticism is based on a more general concern as well — namely, the not unreasonable suspicion that huge new amounts of borrowing are unlikely to cure an economy already suffocating from debt. 
However things turn out, and in the meantime, we’d like to nominate our own Man of the Year: Mister Market. Usually this personification implies an all-seeing, all-knowing force that works sort of like Santa Claus in reverse. Whereas Santa makes a list, checks it twice, and knows which kids have been naughty or nice, Mr. Market plays no favorites. Indeed, regardless of whether an investor has been as wicked as Ahmadinejad or as virtuous as Mother Theresa, Mr. Market will see to it that he gets the kind of screwing that we usually associate with the nether reaches of the Nine Circles of Hell. And don’t dare show the smallest sign of nervousness about any speculative outcome, since, when Mr. Market smells weakness, he will take special pains to single out you, first of all, to pay the price. This is Mr. Market’s proper role, and we can be certain he will return to it with a vengeance and in spectacular fashion when this mind-boggling bear rally has run its course. But until then, he can be counted on to give Bernanke and the spinmeisters excellent cover whenever they tell us the economy is recovering. Who would ever believe such a thing, were the Dow Industrial Average not buoyant, frisky and trading effortlessly above 10000 at the moment? In reality, the “green shoots” story is the biggest lie about the economy since Hoover spied prosperity just around the corner – a fable that bluntly contradicts evidence of deepening recession that we can see all around us. And yet, with the Dow trading at 10328 – its settlement price on Friday – one could almost believe there’s some life in the economy. With Christmas less than a week off, it is Mr. Market we should thank for this dangerous illusion, not Ben Bernanke. *** Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Monday, 21 December 2009 | Digg This Article | Source: GoldSeek.com
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