Comments on: Prudent Bear’s David Tice sees S&P hitting 400 within the year.

By: K T Cat

K T Cat — Sun, 31 May 2009 12:43:32 +0000

Thanks for posting the Tice interview. I hadn’t seen that one.

By: Aki_Izayoi

Aki_Izayoi — Mon, 25 May 2009 18:02:54 +0000

I am Kynikos, and I prefer this name now.

LEONARD, I believe that would be called that “Taxpayer Assurance Equities Facility”

“Prediction two. With public pension systems and tens of millions of 401k holders virtually wiped out—and with the Baby Boomers retiring en masse—there will be tremendous pressure on the government to get into the stock market in order to bid up prices.

Therefore, sometime in 2010, the Federal Reserve will create and loan out hundreds of billions of fresh dollars to the usual well-connected suspects, instructing them to buy up stocks on the public’s behalf. This scheme will have a fancy but meaningless name—something like the “Taxpayer Assurance Equities Facility”. It will have no effect other than to serve as buyer of last resort for capitulating smart-money types who want to get out of stocks entirely.”

http://blog.nationmultimedia.com/print.php?id=9121
(I got deleted on Seeking Alpha)

By: LEONARD

LEONARD — Mon, 25 May 2009 01:34:20 +0000

It is conceivable that the Fed is propping up the market by purchasing spy’s via MS, GS, etc., allowing banks to issue new equity. The whole market is worth less than what the Fed had already committed, so there is enough liquidity. A few well placed tens of billions could do the trick. I write this only to point out that old market rules may no longer apply. Shorting the govnmt is a sure-fire way to get burned. Better make nice and shake hands instead.

By: hcrosby

hcrosby — Wed, 20 May 2009 15:49:06 +0000

It feels to me like we are in the “eye of the hurricane.” But for how long?

By: zs73

zs73 — Wed, 13 May 2009 22:02:39 +0000

I saw that interview. I’ve been following him too. I have the same concerns that you address. The Elliot wave newsletter says we are still on wave 2 and it can reach higher. If I were to guess it will probably pull back to about 7800 and top off at 10,000 in fall, and then armaggedon. Of course this is all speculation