The Fed is a patsy. It is a pathetic dependent of the big Wall Street banks, traders and hedge funds. Everything (it does) is designed to keep this rickety structure from unwinding. If you had a (former Fed Chairman) Paul Volcker running the Fed today 7/8— utterly fearless and independent and willing to scare the hell out of the market any day of the week — you wouldn’t have half, you wouldn’t have 95 percent, of the speculative positions today.
When the real margin call in the great beyond arrives, the carnage will be unimaginable.
March 3, 2012
DAVID STOCKMAN: You’d Be A Fool To Hold Anything But Cash Now
[H/T to Rudy Kearney.
I’m not convinced cash and gold are the only thing to hold onto right now. Farm land, copper coated lead, and brass would seem to hold their value better than cash and probably gold. But I see his point about stocks and fully agree the carnage is going to be massive.—Joe]