-- Posted Thursday, 23 June 2011 | | Disqus

Rick’s Picks

Thursday, June 23, 2011

“Phenomenally accurate forecasts”

Helicopter Ben was deep in denial yesterday following a two-day Fed meeting, telling reporters he’s puzzled by recent signs of deterioration in the economy.  "We don't have a precise read on why this slower pace of growth is persisting." Is this guy a hoot, or what?  Earth to Bernanke: The Great Recession never ended!  In fact, the term “Great Recession” itself is popularly used by plain folks to assert that economic hard times are very much with us, notwithstanding brazen statistical claims to the contrary.  For as anyone can see, many trillions of stimulus dollars have yet to improve a dismal employment picture one iota -- only kept it from getting worse; nor have those “dollars” boosted household incomes or real estate prices. What they have boosted are bank profits and the prices of stocks, commodities and basic goods.  Surprising no one, Mr. Bernanke also failed to mention the still-deflating housing market as a possible reason for the punk economy.  Who but a Fed chairman could fail to connect the dots?  Might it not be possible that consumers are no longer binging because their homes have continued to plummet in value – 4.2% in the last quarter alone?

In a policy statement issued after the meeting, the Fed’s muckety-mucks blamed the usual suspects for the weakening economy: higher energy prices and the disaster in Japan.  Perhaps Bernanke had second thoughts about trotting out such a lame explanation, however, and that’s why he deflected the matter by feigning cluelessness. Whatever the case, although he further widened the cognitive gap between the government’s spinmeisters and the working stiff, the Fed chief may have bought more time to feign yet more cluelessness when he admitted that the economic, um, weakness could linger into next year.  We wonder what he sees for 2012 that would change things for the better, since even realtors and developers who are usually giddy with optimism seem to have accepted that there isn’t any light at the end of the tunnel – at least, none that can be discerned by the un-trained eye.  Unfortunately for Mr. Bernanke, no matter how little he tries to say, he’ll have to give away his game when QE2 sunsets at the end of the month. You can bet that whatever form QE3 takes, it will be called something else. Bernanke and Obama can count on the mainstream media to tell us as often as needed that the Emperor is wearing a fine suit of clothes, but we’ll look to Europe’s editorialists to call the next phase of monetization by its proper name.

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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 © 2011, Rick Ackerman. All Rights Reserved. www.rickackerman.com 

-- Posted Thursday, 23 June 2011 | Digg This Article | Source: GoldSeek.com

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