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All Quiet on the Manipulated Front

  • Written by Syndicated Publisher 51 Comments51 Comments Comments
    December 30, 2010

    The market continued to rise today on volume lighter than Ben Bernanke’s private sector experience and even lighter than ad sales for the proposed reality TV show tentatively titled “Two and a Half Men” where Hank Paulson, Paul Krugman, and Robert Reich will live in a house and try to solve the economy’s problems using only their wits and empty cans of Pabst Blue Ribbon.

    With the year coming to an end (and Money McBags only hopes the end it is coming to is Stacy Keibler‘s) and the Northeast snowstorm still keeping investors out of the office, there was less action today than in Abe Vigoda‘s pants.  The lack of news did give Money McBags some time to ponder if gold is in a bubble as it bangs against 2 week highs (yes, but the bubble isn’t popping anytime soon), if Bennie B.’s hail mary QE2 will be followed by a bigger hail mary QE3 (actually, of course it will, so not much to ponder), and how humans are intelligent enough to come up with something as awesome as this doubly-true anagram and yet if left to their own devices will often devolve into playing real life games of Frogger (and Money McBags has no answer for this).


    We truly live in a bizarre, dynamic, and quickly changing world and given the unpredictable nature of mankind (and womankind, though this is the kind of woman Money McBags would predict), it is important to realize that the unexpected could happen at any moment.  Given that, relying on past data and historical periods as a guide is becoming less telling than Andy Dick at a military recruitment office (though don’t ask, don’t tell was finally repealed, soon to be replaced simply with “get the fuck out”).  So be careful with your portfolios in the New Year as macro data remains sluggish to assawful while the market remains manipulatedly up, because things could change at the cock of a trigger (as opposed to the cock of this Trigger).

    There was literally no macro data out today so Money McBags was left reading this Bloomberg expose on corporations using tax free cash for both acquisitions and to make sure they have enough lipstick for rainbow parties.   Money McBags commented on this a few months ago, but companies are able to use strategies with nicknames such “the Killer B”, “the Deadly D,” and “the Burning P,” to push their profits to low tax domiciles such as the Netherlands, the Bahamas, and Lindsay Lohan‘s pants.  Companies devote enormous resources to sheltering this money from the government which creates jobs for auditors, tax accountants, and other professions that create no value.  Money McBags is 100% for simplyfing the tax codes, but he is also 100% for “Pantsless Mondays” so take that for what it is worth.

    In the market, private equity firm Leonard Green wants private BJ’s as apparently public BJ’s leads to performance anxiety.  Green has threatened a hostile takeover to get BJs (a move known in married life as “foreplay”) if the company does not put itself up for auction in the next few weeks.  This will be the third retail take over for Leonard Green partners in short time, having also been involved in the take-outs of J. Crew and Jo-Ann Stores, as they try to top tick consumer spend.

    via 12/29/10 Midnight Report: All Quiet on the Manipulated Front.