Update: Cramer responds; Julian Robertson on the inflation risk: ‘it’s almost Armageddon if China & Japan don’t buy our debt’

Update: MiM rants, scroll down.

Update: Cramer responds to Robertson’s calls, he agrees and says Pelosi Waxman Rangel are anti business and anti shareholder and business profits:

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When Julian Robertson speaks, investors listen. To say that Wall Street respects the Tiger Management founder and chairman would be an understatement. So much so that Cramer urged anyone who disagreed with Robertson to “recalibrate” his position. “Because he is that good,” Cramer said.

One of the silver sages is Robertson. And he agrees with the high high risk of our humble forecast of HYPERinflation…


The US is too dependent on Japan and China buying up the country’s debt and could face severe economic problems if that stops, Tiger Management founder and chairman Julian Robertson told CNBC.

“It’s almost Armageddon if the Japanese and Chinese don’t buy our debt,” Robertson said in an interview. “I don’t know where we could get the money. I think we’ve let ourselves get in a terrible situation and I think we ought to try and get out of it.”Robertson said inflation is a big risk if foreign countries were to stop buying bonds.

“If the Chinese and Japanese stop buying our bonds, we could easily see [inflation] go to 15 to 20 percent,” he said.  “It’s not a question of the economy. It’s a question of who will lend us the money if they don’t. Imagine us getting ourselves in a situation where we’re totally dependent on those two countries. It’s crazy.”

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Robertson said while he doesn’t think the Chinese will stop buying US bonds, the Japanese may eventually be forced to sell some of their long-term bonds.“That’s much worse than not buying,” he said. “The other thing is, they’re buying almost exclusively short-term debt. And that’s what we are offering, because we can’t sell the long-term debt. And you know, the history has been that people who borrow short term really get burned.”

And what is the solution? GROWTH!!!!!!!

The only way to avoid the problem, he said, is to “grow and save our way out of it.”“The U.S. has to quit spending, cut back, start saving, and scale backward,” Robertson said. “Until that happens, I don’t think we’re anywhere near out of the woods.”

Robertson is not very optimistic about the short-term. “We’re in for some real rough sledding,” he said. “ I really do think the recession is at least temporarily over. But we haven’t addressed so many of our problems and we are borrowing so much money that we can’t possibly pay it back, unless the Chinese and Japanese buy our bonds.”

Update: Where have we heard similar sentiments to those expressed here by eminence grise Julian Robertson? Oh yes, I know at the Tea Parties !!!Where regular (ie beneath the considerations of the elite gentrified media and politicians who think they know better than we what we need) Americans are expressing the same concerns about the out of control spending and rising debt. Main St IS already doing what Robertson is suggesting NEEDS to happen, we are SAVING, we are NOT CONSUMING, we are suffering massive pain in job losses and asset deflation but our productivity is up. The American People are not afraid of a little pain and sacrifice. Our leaders OTOH will not suck it up and tell their their labor supporters that CUTS need to be made, government salaries need to come down, labor salaries need to come down, it is an environment of MASSIVE job loss, ALL SALARIES should be coming down if we are in a free market….

MiM Tax Day Tea Party Sign

MiM Tax Day Tea Party Sign

We are telling Congress to Stop Spending (literally, here is my sign from April 15th) ! We are doing what needs to be done but our idiotic Congressional Leadership (and unlike Cramer I DO blame the Executive Branch, it is top down and we all know it) is shoving down our throats a bigger and bigger expansion of government and regulation and an actual active DISCOURAGEMENT for capital investment!

All in an environment in which they are taxing everything that moves and now we  have the pleasure of being taxed on BREATHING essentially in the health care bill, a poll tax like the ones the British revolted against, uhmmm Richard II?

Anyway, it is our politicians that will be METAPHORICALLY dragged kicking screaming out of office since they seem to be CONSTITUTIONALLY (pardon the pun) incapable of CLOSING the People’s Wallet. Sarah Palin totally GETS THIS BTW. See here for her recent speech. That is why so many of us like Sarah. She RESPECTS us, something the Dear Elites currently in office so clearly do not.

While Main St is instinctively doing the right things to get through this, Congress and Team TOTUS with the assistance of the rah rah cheerleading media are doing the precise opposite of what any rational observer, or financial genius like Robertson (people able to separate themselves from their political inclinations which IMO Krugman et al are unable to do) see needs to be done.


2010 elections cannot come soon enough. It would appear that despite millions of Americans expressing their desire for the spending to stop all summer long, they are willfully blind. It seems that only a massive turnover in Congress in 2010 will effectively teach the Critters that the American people will not tolerate being totally removed from the equation when decisions are made that will impact all of us for generations.  ESPECIALLY when we KNOW in our guts they are the wrong decisions.

I mean let’s be honest, why the hexx should the entire country have to carry the load of an enormous new entitlement and debt at a time of recessionary growth and massive deficits with surging existing entitlement costs? Because Obama wants a win in his column and EVERYONE KNOWS IT, EVERY POLL SHOWS THERE IS NO FRAKKIN HEALTH CARE EMERGENCY!! EMTALA laws on the books guarantee ER treatment for ANYONE , a frakkin YETI could show up and get TRIAGE!! /rant off

*Def Leppard courtesy of choppothegreat

September 24, 2009. Tags: , , , , , , , , , , . Economy, Finance, Housing, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 2 comments.

Market Mover Thursday: Weekly Jobless Claims drop, continuing claims highest since 1967, retail sales drop and Cramer says TOTUS is hurting the economy….

Weekly jobless claims were lower than expected Labor Dept is saying it is technical, seasonally adjusted auto layoffs are screwing up the data, and there was a holiday-nothing to write home about, but hopefully some more people are still working..continuing claims hit another record…

The number of newly laid-off workers filing initial claims for jobless benefits last week fell to lowest level since early January, largely due to changes in the timing of auto industry layoffs…Continuing claims, meanwhile, unexpectedly jumped to a record-high….New claims for unemployment insurance (dropped) by 52,000 to 565,000, the Labor Department said Thursday.

…The drop resulted partly from technical factors, a department analyst said. Auto layoffs that normally take place in early July, as factories are retooled to build the next year’s models, occurred in the spring instead as General Motors Corp. and Chrysler LLC implemented sweeping restructuring plans.

The department’s seasonal adjustment process expected a large increase in claims from auto workers and other manufacturing workers, the analyst said. Since that didn’t occur, seasonally-adjusted claims fell. The non-seasonally adjusted figure increased by about 17,000 to 577,506 initial claims.

Still, continuing claims jumped 159,000 to 6.88 million, the highest on records dating from 1967. Analysts had expected 6.71 million continuing claims…

Retail sales continue to drop (not surprising anyone in the real world but shocking to economists!)

Meanwhile Jim Cramer is again calling attention to what should by now be obvious to anyone watching the markets, TOTUS is hurting the economic recovery with his inability to leave any sector of the economy untouched…MiM has not been watching Cramer since his rather sad appearance on Stewart and his subsequent change of tone on TOTUS.

We know Jim has college shows and the ‘youts’ are an important part of his demographic, but what we loved about Cramer was his in your face, tell it like he sees it attitude. GE reigned him in pretty hard apparently. Well Jim is back off the reservation, and MiM is glad to see him back in the game:

The same force that so hurt the markets this winter has yet again reared its ugly head: the White House’s anti-business rhetoric. Cramer on Wednesday blamed the negative sentiment for stocks’ recent pullback. Investors don’t seem to trust President Obama to create jobs and stimulate the economy, not when he prioritizes climate change and health care. “I want President Obama to succeed,” Cramer said, “but right now he’s getting it wrong.”…

Jim was careful to get that ‘I want him to succeed!’ in there, as the leftys lose it if anyone has the AUDACITY to acknowledge the One’s negative impact on the economy, Jim is apparently trying to avoid the ‘Rush’ treatment….

Obama’s administration seems to be working on all the wrong things, at least for now given the recession and the chatter about revisiting the early March lows. On top of cap-and-trade and Medicare, the president has pushed for the expansion of union powers, taxing offshore corporate profits and even probing AT&T  and Verizon on antitrust grounds. Cramer doubted that Obama could send clearer signals that his concerns are anywhere but the economy. Not that these aren’t noble pursuits, but people need steady income so they can pay their mortgages.

“The president should be focusing on job creation,” Cramer said, “but is in fact doing very little of the sort.”

Businesses won’t start hiring until we get two of three economic imperatives, Cramer said: people need to feel their jobs are stable, their home prices are stable and that stocks are going higher. Right now we have stabilization in home prices, but not in jobs. And then there’s the OAI. One of three isn’t good enough.

Cramer urged Obama to postpone his agenda for now in favor of boosting the economy. And the best way to do that is to fight unemployment.

“Without more job creation,” Cramer said, “the president’s agenda and his tone will continue to slowly and inexorably squeeze the life out of this stock market.”

Art Cashin  is also pulling no punches:

Cashin reiterated his belief that another government stimulus package would be useless — because the first package was “part illusion, part hoax.” And now that the economy’s problems seem to be continuing, “the fire extinguisher’s empty,” he said. Cashin believes the current stock rally will be short-lived….

Alcoa earnings yesterday:


July 9, 2009. Tags: , , , , , , , , , . Economy, Finance, Labor Department, Music, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 1 comment.

Market Update: Averages rally on Fed moves: Fed buys MBS and purchases long term treasurys, WOOT!

DOW closes up 91 to 7487, S & P up 16 to 794, NAS up 29 to 1491, and MiM also has calls to their bank to refi off the FED news :0)

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Airtime: Wed. Mar. 18 2009 | 11:17 AM ET

The Fed funds rate remains unchanged at 0.0 to 0.25%, reports CNBC’s Hampton Pearson. Pimco’s Bill Gross and CNBC’s Steve Liesman share their insight

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Wed. Mar. 18 2009 | 11:43 AM ET

Tobias Levkovich, Citi chief U.S. equity strategist, discusses the Fed’s decision to leave its key rate unchanged.

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March 18, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, Uncategorized, Wall St. Comments off.

Cramer Answers The Critics – CNBC.com

Airtime: Mon. Mar. 9 2009 | 3:29 PM ET

It’s time to take the issue from the pundits and from the left and right, and put it where it belongs, with Mad Money host Jim Cramer

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March 10, 2009. Tags: , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Cramer stands by his call on Obama Policy hurting markets…

Airtime: Mon. Mar. 9 2009 | 11:50 AM ET

Mad Money host Jim Cramer  CNBC’s Erin Burnett.

Cramer stands by his call on Obama Bear Market

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March 9, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Cramer on Obama and Health Benefits – CNBC.com

Airtime: Fri. Mar. 6 2009 | 4:16 PM ET       An outlook on the health care corporations, with Mad Money host Jim Cramer.

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March 6, 2009. Tags: , , , , , , , . Economy, Obama Administration, Politics, Popular Culture, Taxes, Uncategorized, Wall St. Comments off.

Markets Tumble….DOW closes below 6600…

DOW down 281 to 6594

S & P down 30 to 683

NASDAQ down 54 to 1299


Stocks tumbled 4 percent Thursday as investors were rattled by doubts about the survival of General Motors and Citigroup broke below $1.

The Dow Jones Industrial Average dropped nearly 300 points, or 4.1 percent, ending below 6,600 for the first time since April 1997. That erased all of the gains from the previous session’s rally — and then some.

Twenty-two of the 30 Dow components hit new multi-year lows today.

March 5, 2009. Tags: , , , , , , , , , , , , . Cabinet, Economy, Finance, Obama Administration, Politics, Popular Culture, Taxes, Uncategorized, Wall St. 1 comment.

Gibbs on Wall St, CNBC and Jim Cramer…

Obama said stocks look like a long term buy today, stepping into the market in a way NO POTUS has EVER done. Then Gibbs gets snippy about CNBC…clueless is Gibbs..frakkin maroons..

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March 3, 2009. Tags: , , , , , , , . Economy, Obama Administration, Politics, Taxes, Uncategorized, Wall St. 1 comment.

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