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Fleckenstein - The Fed is Trapped, Stock Market & Gold
Today Bill Fleckenstein, President of Fleckenstein Capital, told King World News that the Fed is trapped and we may see a little panic in stocks. He also discussed the gold and silver smash, but first, here is what Fleckenstein had to say about what is happening in the markets: “We are going to get more money printing out of the Europeans. We got it out of the Japanese, the British, the Swiss, and somehow guys who want to buy stocks at 1,400 on the S&P all conclude that the Fed is going to stop easing.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
April 4, 2012
Bill Fleckenstein continues:
“I don’t understand how so many people who believe in Santa Claus, the Easter Bunny and Goldilocks can all be employed on Wall Street. I mean the stupid television, Bubble Vision and all of these knuckleheads, it’s just noise. It’s just crap that they make up because they have to say something in that moment in time.
Anyway, it’s a frustrating period for most people, but the resolution to this, the consequences of money printing are going to be more inflation and the metals (gold and silver) are going to be a big beneficiary of that. For all I know, the decline that’s under way right now (in gold and silver) may stop (next) Tuesday.
The stock market is, for the moment, the vehicle of choice for money printing to flow into....
Continue reading the Bill Fleckenstein interview below...
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“For much of the post-2008 financial crisis, the money printing experiment on the part of Bernanke, for the most part money flowed into metals, currencies and things like that.
We’re in a period now where people don’t think we need the metals and the place to be is in stocks. So, now the same people who missed the stock bubble, the real estate bubble and every other problem that we’ve had, now, once again believe in Goldilocks. Even though the rest of the world is slowing down, somehow, magically it’s going to be great here.
Although yesterday’s Fed minutes said they weren’t going to ease, until they had to again, the metals markets were bombed, commodities markets were bombed and now stocks are getting hit a little bit. So, stocks may throw a temper tantrum and tank, just like they did last summer and the summer before that.
Then, Bernanke will come in and save them. Last time he did a ‘twist,’ and in the next couple of months he will come in with a new kind of ‘twist.’ Basically the Fed is trapped. They have spoon fed the markets and the economy to expect more confetti, and they will continue to do it until inflation takes the printing press away.
We are closer and closer to that day, although that psychological mindset change hasn’t occurred yet. I think the most important thing on this equity market decline, assuming that we get more than two days of it, is we need to see where the bond market fails.
The bond market has quite likely topped out. If we can get a decent little panic in stocks and bonds can’t really make new recovery highs, then maybe the bond market has finally seen its best. Then we can start the process of bond rates not going where the Fed wants them to, and ultimately taking the printing press away from these complete lunatics at the Fed.”
Because of the release of the intense volatility, this timely and powerful KWN audio interview with Bill Fleckenstein is available now and you can listen to it by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
