Let's start the week with this funny article. My answer to the question, laugh or cry, is definitely cry. I have seen a similar article about Greenspan, and it was equally pathetic. How we ever get to the point where we worship characters like this, and put them in charge, I can't even fathom a guess. Or how the 'citizens' just tolerate it and keep worshiping...

http://theeconomiccollapseblog.com/archives/say-what-30-ben-bernanke-quotes-that-are-so-stupid-that-you-wont-know-whether-to-laugh-or-cry


Understand, this article was posted in Dec 2010, but is till quite valid. I wonder how many more bad reads he has done since then?

Anyone notice the MidCaps set a new all-time high yesterday? Today they are smoking up, in blue sky territory. And here's some food for thought. The ES has risen about 80 points off the most recent low. It is now about 100 from the all-time highs. Think it could, theoretically, do that before the election, almost two months away? Too funny. And the Dow is say 465 points from its all-time high. With a ratio just over 9-1 with the S&P, you can see the Dow is much closer. Any chance they won't run the Dow to a new all-time high? I can't see anything stopping that. Long live the bull!

I read several articles from people who I think are not too bad, and while not bears, they were watching the potential bearish areas. Most now say no possibility of a bear, or even something serious on the downside until well into 2013. Yes, maybe that is a warning sign, the people who would consider downside totally capitulating, but I think not. I have been saying this myself. I see nothing but 'up' until the collapse. No way they'd ever allow a bear market while they are printing. After Mar '14 this breaks the record (from 2007) for the longest running cyclical bull in history. I think it may exceed that record by a long, long ways. I seriously see S&P 2000 soon. We'll see.

For those that think S&P 2000 is crazy, if we end the year at 1650, then if we have a 20% return from there, we are at 2000. Not so crazy.

And yes, the high today was a major area. But 'So what'. Nothing is going to stop this Fed juggernaut.

In a 'normal' market this could pull back to say 1430 here. Good luck with that one.

Egan Jones just downgraded the U.S. based on QE3. I know they aren't that big, but still...

Eurogroup meetings this weekend. On the agenda are the Spain and Greek bailouts. I'm thinking the market gaps up huge on Sunday based on 'good news' coming out of Europe on the weekend. I think I should buy a slew of extra calls right now before they close it...

One of our readers, EricD, shared this with me earlier today. We have had some discussions in the past about numbers in the market. I was musing how the low was 666, and it happened on 3-6-9. Without getting sidetracked here, I made some posts in here saying that in many arenas it's not so much the number 666 that was significant, but the sum of 18, the same sum as 666 and 3-6-9. Anyway, I mentioned earlier that the top today, in 'normal' times, would be somewhat significant to me. Then EricD shared this with me: today is 3 years - 6 months - 9 days since the infamous 666 low on 3-6-9. I wonder...

Everyone should read this, since I think it is very likely, or even worse. Like Rosie is saying, soon the Fed will own all the Treasuries and MBS out there. But it will need to monetize more, so what will they come up with for that? I mean, on top of outright, public purchases of stocks (it's coming), which is something Japan does regularly...

http://www.zerohedge.com/news/bofa-sees-fed-assets-surpassing-5-trillion-2015-leading-3350-gold-and-190-crude

And here's a closer view to real-world inflation already:

http://www.verifythecpi.blogspot.com/