Good Faber interview on Bloomberg: manipulation, GS, Fed, Greece, etc

He basically expresses my opinion when it comes to manipulation: the Fed manipulates interest rates and bails out banks by accepting crappy collateral and buying bonds, and of course things like FX swaps manipulate that market. GS and others may front-run, but he doesn’t seem to believe in the futures/PPT theory of manipulation. He and I agree that poor traders use that as a mental crutch when they get frustrated.

Lots of other topics are covered, including Greece (he calls it a write-off, and says that the bailout of course was of the European banks, not Greece, which can never pay back its debt).

Watch the video here.

Barf O’Rama

Bloomberg’s Tom “Tuxedo & Bowtie” Keene recently provided a 10-minute forum for Abby Joseph Cohen, Senior Investment Strategist at Goldman, to drone on about how the “recession is ending right now,”  “consumer growth will be increasing,” and how she expects “profit growth,” etc, etc.

There was no mention of Ms. Cohen’s 1600+ call for the S&P made in early 2008, nor of course her continuous bottom calling in the wake of the dot-com bubble that she helped promote. No mention of P/E ratios, dividend yields, book values, debt loads, nothing. Just an opportunity for her to lecture the audience about the importance of longer term investment horizons. Mr. Keene even asked for questions from the audience and surely ignored a few from skeptics: we just love to have you on the show, he said, but “boy do we get the hate mail.” You don’t say! Why GS still keeps this dog in the house is beyond me.

Now, I know all you Prechter skeptics out there will come out and say I’m using a double standard, but that is not the case. This Goldman “strategist” offers her advice explicitly to retail investors, and continually urges them to buy the stock market, no matter what. She has never said anything else. Mr. Prechter’s services are intended for more sophisticated speculators and institutions, and he has shied away from offering advice to amateurs, other than admonishing them to stay in “the safest cash equivalents” ever since the bubble got rolling. Taking this advice would have saved most people lot of money and heartache over the last 10 years (admittedly, overeager shorts included).

Furthermore, when you read Prechter, you always learn something. Market history, valuations, and the mechanics of money and credit are explained with facts and figures. You can judge them for yourself. Cohen can’t be bothered to mention a single number, other than her expectations for 3% GDP growth. This interview, meant for everyday people driving to work in the morning, reflects absolutely reprehensible behavior from both Goldman and Bloomberg.