Forward guidance paper:

http://www.chicagofed.org/webpages/publi....

Stealing for the few is something you go to hell for. I'm sure most of history's famous politicians are there already. They will have a special seat for Mr. Bernanke, close to the hottest fire.

http://www.econ.yale.edu/~shiller/data.h....

This link is Robert Shillers historical stock quotes from 1871. You will have to do your own division, that is if you know how to do excel. Note that dividends have been over 3% only during the 2009 bottom for the past 19 years. Scroll upward to see Shillers PE/10 for history. We are in the top range in history for the highest valuations in relation to dividends, something that can only occur in a financial bubble. These guys are now borrowing their own profits, as we keep hearing about cash on the balance sheet. Cash can only be borrowed into existence and the consumer sector isn't creating it. That leaves 2 sectors, government debt and corporate debt.

Alfred Nock said all states were based on class warfare. When Congress is in session, get the vasoline out if you are unconnected middle class. Middle class includes the small business rich, like Karl and many of you. The real rich are the bankers, the arms makers, the drug companies, everything government regulates. They regulate to keep the competition out. The public isn't playing this market. Thus Bernanke needs to public in the market, so he is giving out free funds for the insiders to pump and dump. These jackasses can't make money out of stock they hold. Don't kid yourself. They will either find methods to loot the companies or eventually dump what they have on the public and sail off into the sunset.

http://library.mises.org/books/Albert%20....

Read the last 3 chapters of this book. Government has been robbing the average Joe since the Federal Government was founded. The difference is, they gave the fat cats the wilderness for nothing. Being there was plenty of land on the horizon, plenty of unexploited wealth, the average Joe didn't know the difference, save his produce was deflated by the overhang of free land and immigrants. FDR took the Federal lands out of play, so the door was shut and now all their screwing comes out of the pockets of middle America. Bernanke is taking our savings out of our pockets, so the top can continue to live like kings, rip off the country and hide their crimes. Karl has warned against class warfare. Well, it has been class warfare for 200 years and going. They don't even hide it any more.

Thanks for the Nock reference.

I have an old Caxton Press edition of that here somewhere, will dig it up and re-read it with contemporary events in mind.

So how much time do we have before we hit the wall?

Mathematically or before the market forces it?

Mathematically about 4 years. The market? Good question...... that's not deterministic.

I thought we were supposed to "hit the wall" in 09', 10', 11' and now 12'. Don't think it's happening for at least another year and the fall won't be as bad as many expect. Dow at 11k again? sure it's definitely possible.

4 years? Going short had been the wrong move. Might as well go long and party like its 1999.

Smart, it'll ("the wall") will get pushed out a few more

No, the right move was not to play in late 2007.

You want to bet on bubbles? Go ahead. But that's not INVESTING.

Those who can't be bothered with what The Ticker is and its intended use, after being reminded frequently (indeed, with each article) will only demonstrate that once.

I think everyone clearly understands the MT is not considered investment advise. But if one continously hears the weather is bad then one does not want to leave the house.

"Trades50" wrote..

The US standard of living is still too high on the global playing field.

Says who?

Well, since the USA makes almost nothing, doesn't have a manned spaceflight program, cannot put large masses of anything into low earth orbit, is hugely indebted, has structurally high unemployment, high underemployment, and a declining standard of living; high compared to any of a dozen nations.

The USA is now coasting.

You have unemployed on food stamps by 46 million, you have millions not paying their mortgages for 5+ years and buying iProducts, dining out, shopping for clothes. You have new jobs being created that pay, at best, $11 an hour.

That's the real median income of the USA - about $16,000 to $22,000 per year. This $50k is nonsense brought about by the shrinking top 20%. The vast majority of the country is lower middle class and dropping.

Since Ben is now limited to press conferences and revealing FOMC minutes as a primary means of controlling interest rates, I would say he is running out of room to manoeuvre. When he hits the wall, this tippy system is going to fall out of balance in one big hurry. I suspect it will be another one of those harried Thursday - Sunday times here at TF when at 3pm on Sunday the FX and COMEX opens and things are not well, at all.

Makes nothing? How about is the breadbasket for the world. Start with that.

Pardon me, but I want to say a little something about investing here. As regards the level of pumping (encouragement to play), MT is pretty low on the list. You can get some useful information from some of the players in the Traders Club, if you chose, but I have seen very few touts out of Karl or anyone else on this site for that matter. I also should admit that once or twice, when I saw TPTB doing something incredibly stupid I suggested folks might wish to "short the phonebook." But Bernanke has chastened me. It's true folks, Bernanke can remain irrational far longer than you can remain solvent. There's a truism you can take to the bank (although I doubt they'd give you over 0.25% on it).

Also, the world does not begin and end with your making money on the stock market. The situation isn't just messy, the whole enchilada could explode badly, not just damaging individual wealth, but harming the whole trade/finance system. It would be bad if bread costs $10 a pound (and a trader could figure out how to benefit from that), but it would be entirely another if the system collapsed so thoroughly that bread simply was no longer available. If Bernanke keeps going, that's just where we may end up. So, play the market all you want - good luck with that - but don't blame MT if you come up empty. The real reason for the site is to inform us of the crazyness out there in the hopes of creating enough political power to stop it.

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It would be bad if bread costs $10 a pound (and a trader could figure out how to benefit from that), but it would be entirely another if the system collapsed so thoroughly that bread simply was no longer available. If Bernanke keeps going, that's just where we may end up.

Probably we'll get both.

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If someone doesn't remove him from the left seat soon, we're going to hit the ground at 400mph.

98% of the people "at the top" are in full agreement with thebernanke. So evidently that is indeed the plan.

Look past the reset, it's nearly upon us. Plan for what follows in the aftermath.

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It's true folks, Bernanke can remain irrational far longer than you can remain solvent.

Truer words have never been spoken! Could not have said it better.

Bernanke is not being irrational. It has works so he will continue to do it until it doesn't.

C'mon, Bernank doesn't give two ****s about us average schmoes. He's in his own little elite world. This is his "payback" for being appointed by that other assclown Obama, so he can get more votes in his reelection bid. The average citizen doesn't factor into any of this one iota.