When the Free Ride is Over, Everyone Gets Off

Today as of this writing (11a), the Dow is down 75pts..

You know how we feel by now.. add a '1' and a '0' before the 75 and you will really have us smiling..

The reason for the drop is the fear by the rats and roaches that profit amid the muck that their free meal ticket will be if not eventually taken from them, at least scaled back.   Also the very real likelihood that ultimately the Fed is going to have to raise interest rates-- can't keep them at near zero forever..

Poor Babies!  Aww..

And the everyday Joe?

From MarketWatch.com (in blue font):

"This is what Wall Street Journal’s Matt Wirz wrote in March: 

"The Fed won’t be able to keep a lid on interest rates forever. So large money managers such as BlackRock, TCW Group and Pimco are getting ready for the day when rates take their first turn higher. It isn’t coming anytime soon, these investors say. But when it does, they worry, the ascent will be swift and steep.”

Get defensive now, start preparing for a crash ... later is too late

Get it? Rates will go up. Way up. Very fast. And America’s 95 million Main Street investors will be unprepared. Markets will crash. Like 1994’s 24% bond crash after Fed rate increases, notes Wirz... 

Warning, a crash is more likely to happen in August 2013 than in 2015 when the next presidential election campaign is kicking into high gear. So start preparing for a crash when the new Fed chairman ends cheap money. "

Did you know: Stock markets have recovered all of the $10 trillion lost in the recession, but homeowners are still $5 trillion underwater..

And did you know according to the Pew Research Center, the highest-earning 7% of the population saw their net worth grow by 28% between 2009 and 2011, while overall the net worth of the remaining 93% of Americans dropped by 4%..

Did ya?

The math on $85 Billion is really amazing when you take the time to play around with the trusty ole' calculator.

For instance you take $85,000,000,000  (that's what it looks like- 9 zeros) which of course as you all know by know is what the Fed is spending Monthly to buy toxic assets and other crap to artificially inflate the economy..

OK, so you take $85,000,000,000 and divide by 30 days in a month..

That equals $2,833,333,333 a day  ($2.83 billion)

Now take that number and divide by 24 hours...

That equals $118,055,555  or a little over $118 Million spent per hour

Now take that number and divide by 60 seconds...

That equals $1,967,592 every second... tick.. tock.. tick.. tock..

Here's another way to look at it..

People like to complain that the government spends too much and depending on their political affiliation, they target different things.. 'Too much spending on military.. too much on Medicare...

The proposed military budget for the Department of Defense 2014 is $614 Billion.   This covers everything from munitions to weaponry to maintaining bases to salary..

So if you divide $614 billion by $85 billion...

That means the Fed will spend in a little over 7 months, the entire totality of National Defense and the salaries of hundreds of thousands of people who are employed in this area...

The estimated government outlay for Medicare in 2014 is $512 Billion.

So if you divide $512 billion by $85 billion...

That means it will take that despicable parasite Ben Bernanke only six months to pump into the stock market what will cost the Federal Government to cover medical costs for millions of elderly and disabled over a 12 month period.

And rarely anyone complains about this expensive monthly outlay... Most brains just can't wrap themselves around the idea of that much money being spend open-ended for the benefit of so few..

And these piece of Garbage investors and traders are so accustomed to living high on the hog, that the slightest sniff-whiff of a pullback and they will pull back and potentially derail the Fed's imaginary 'recovery'...

No different from 'The Great Gatsby' -- as long as the champagne was flowing and the band was playing, everyone would stay till dawn to enjoy the big free shindig and no one could have cared less who the host was, much less what he looked like or how he got his money..

And when the free cocktails were kaput, you had a barren mansion.

You know...Bernanke is quite pathetic.  Think about it...

$85 billion monthly is quite an exorbitant sum to toss out just to be liked...

How much $$ Truly is the $85Bil the Fed keeps throwing away?

$85 Billion is such a vast number.. really incomprehensible to picture.

The human mind is just not capable of picturing it; Th mind can not picture 85 individual and distinct 'things' at one time, much less 85 billion..

We've tried on a couple occasions to explain just how much precious money is being pissed away by that EVIL Federal Reserve to benefit that equally Evil stock market...

For instance, mathematically, $85 billion which is what QE4 and 5 equal... well,  when broken down into time fragments, it comes to just under $2 million spent per minute based on a 30 month day..

So let's try to put it into better perspective without risking inundating you with stats that simply blend into one another without meaning...

* When breaking $85 billion into measurement of seconds, based on a 30 day month, each second the Fed artificially inflates the stock market by $32,793.20

Now a person making minimum wage at $7.25/hr and working 40hrs a week will earn $15,080 over a 52 week year.

Thus, the Fed will spend in one second, the equivalent of 2 minimum wage workers' yearly salaries.

* LeBron James, arguably the best player in the NBA currently makes an annual salary of $17,545,000, which comes to a little under $214k for each NBA regular season game.

It will take the Fed just under 9.5 minutes to spend that amount.   That's less time than one regulation NBA quarter (12 minutes)

In fact, if you add up the total salary expenditures of All 30 NBA franchises for the 2012-13 season, it comes to around $22 Billion, which is around 28% of the monthly spending by the Fed

Remember, every dollar the Fed spends is created from thin air, printed and distributed and becomes public debt which all Americans are ultimately on the hook to repay.

*  According to the CIA World Factbook, Iceland, an island nation in Europe with 103k square miles of land and a population of just over 315k people has a Total Gross Domestic Product (GDP) of $12.95 billion...

After a little over 4 and a half days of continual spending, the Fed would reach $12.95B then surpass it.   That's less than 5 days to surpass the total yearly GDP of a soverign nation...

*  There are currently 14...Yes, Fourteen US states with total yearly GDP under $85 billion.  For all the businesses, jobs and other means of taxable revenue, they generate LESS in a full calendar year than what that Bastard Ben Bernanke is spending to make investors wealthier...

Those 14 states are:

Alaska, Delaware, Hawaii, Idaho, Maine, Montana, New Hampshire, New Mexico, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia and Wyoming.

And remember, $85 billion is Monthly..

*  In 2012, luxury car manufacturer Mercedes Benz generated worldwide sales equaling 61.6 Billion Euros which when using a currency calculator from Euros to Dollars, equals just about $79.3 Billion in  Total revenue...

That's a major international corporation selling automobiles that price as high as $200k+  for the most wealthy, discriminate shoppers...

And in a Full year's time, they made less money than the Federal Reserve is spending in a month... a differencial of $6 billion.

~ We could present more stats but what we did present is quite sufficient..

Simply think about it.. When put into perspective, its horrible and so destructive to the well-being of this nation, but no one, even the President can stop it even if he wanted to (and honestly, who knows if he does...)

The Fed is more dangerous to the well-being and survival of this nation than any foreign foe... yes, even North Korea... And if you don't understand that by now, then reach around, give your butt a nice 'Spankk' and re-read this post.

A rising Dow as 'real' as body paint is 'clothing'

~ Psst.. don't tell any of the women in this post they are actually wearing body paint not clothing and thus are nude.. it might affect the Dow shhh..  shhh...

Cyprus-Shyprus..

Hard to take any island-nation seriously where its people protest the bank holiday on day 10 and still do so peacefully...  Guess they didn't get the memo that their leader extended the bank closings an additional two days to Thursday...

Oh well..  It's a new day.. time for a new topic..

Peeking in the stock market, we see the Dow is up another 100+ pts at 14,550 and counting..

Its funny.. we used to think the visualization of 'bullshit' was something brown and pungently nasty sitting somewhere in the grass...  Now just have to turn on CNBC or other finance news and see the TV drenched in it...

The traders screaming Buy & Sell like hyper ADD monkeys...  The analysts wearing $1,000 suits telling mom and pop their idiots for not buying into this market.. The attractive anchorwomen with their snug sweaters with intentional low-cleavage to make sure no one changes channels..

Ugh.. What else can be said..

Oh yes.. So Reuters writes the S&P 500 is within striking distance of its all-time high "as strong data on home prices showed an economy that was improving.."

Paragraph two, they explain, "Single-family home prices rose in January at the fastest pace in more than six years."

Hurrah!  Glory Be Thy Name.. Let's 'Rally round the Flag Boys (and Girls) and shout the Battle Cry of Freedom', and 'God Bless America' and "America #1-- rest of world Sux!'...  

OK, we made that last song title up but trust us, that's how Wall St thinks...

Now same article.. maybe 4-5 more paragraphs down.. what does it say?

"In a sign that growth continues to be slow, sales of new U.S. single-family homes fell more than expected in February, and the latest reading on consumer confidence was weaker than expected."

Huh??

So.. The market rallied over 100pts so far based on January 2013's single-family home sales figures, and Yet ignored the fact that February, 2013, which comes AFTER January, fell more than expected, dropping from 431K to 411K...

Ah..

And then there's consumer confidence..  The Consumer Confidence Board released its monthly estimates..  "March consumer confidence plunged to 59.7 from 69.6, and well below expectations of a 67.5 print."

Gee, that's never good is it.. Certainly not +100 pts or whatever 'good'

But most people really don't give a damn..  Let's be honest..   The finance media can point to a chart or graph or say the rising stock market is based on watching celebrities 'dance' and jump off diving boards..

As long as things keep going up and people's 401Ks and pensions keep rising, does anyone really have the guts to point out the "Emperor" is naked with his shriveled up grape-sized tally-wacker exposed for all to see??

Who wants to rock the boat and stop this 'exciting rally' based on fluff, fart blossoms and $85 billion/month in Fed money which breaks down to $1,967,592.59 spent Every MINUTE based on a 30 day month, 24 hrs/day, etc...

'Hells-bells, if my personal investment portfolio goes up a couple hundred dollars every month, that's $85 billion well spent.. heh heh~ '

Government and bankers and financiers can manipulate a lot..

But one thing they can not control fully is human behavior i.e. greed...  And when the day comes when people feel this market can not go any higher, there Will be a massive sell-off.. orderly then panicked...

Its just how the human animal was constructed...

And where will you be then?