Banksters' "CYA" Strategy
Updated: Aug 31, 2020
Let's kick things off with a word from your local head of market strategy for absolute return fixed income at J.P. Morgan Asset Management, Oksana Aronov:
“Market valuations are entirely fabricated – or synthetically generated – by all the central bank liquidity and do not reflect fundamentals of the securities that they represent.
[Mr. Market remains] locked in this collective hallucination. . . Central banks continue to run the show and investors need to be really cautious here.” (1)
Similar to the post, here’s another situation where I agree with this Bankster’s gist but again just can’t help wondering what in the world is going on.
Banksters have had years…no, no, over a decade to come out and point out the negative effects of central bank meddling in the markets. Where were all the complaints and warnings from J.P. Morgan and Goldman Sachs and that entire bloc of banksters during all the QE floods of money?
Oh, that’s right, silly Adrian. Money is for banksters! Of course they’ll keep their mouths shut when they’re winning. Why complain when there’s a massive hand feeding you?
But now that massive hand is feeding others, whether intentionally or inadvertently. Now the craziness in the markets has hit such a fever pitch that even the banksters can’t figure all of this out.
So, they figure it’s best to “KYA” with the warning. Besides, with so many analysts and heads and investors starting to move to the other side of the investment philosophy ledger, it’s becoming a situation of “better to be wrong with the crowd than right on my own” for these banksters.
Remember Peter Schiff? Well, he’s been talking up these worries for years. He predicted the 2008 housing crisis years before it happened. Naturally, he got a lot of laughter and ribbing from mainstream media since he was commenting against the grain of all the other market prognosticators. Then the Great Financial Recession occurred and everyone said nobody could have predicted it. (2)
Except Peter Schiff did and was waving his hands trying to get people’s attention and yet nothing. Just more laughing and ribbing and even cancelling appearances on mainstream media.
Another intersecting point, is the rising tides of gold and silver. For years, the precious metals have been ridiculed as investment relics of the past. Besides, why invest in them when they don’t have any cash flow? They don’t pay interest. They don’t pay dividends. What a sham for investments, we were told.
Low and behold, many savings accounts today no longer pay interest either! How could they when central banks have quashed interest rates? And then there are some bonds in the world with negative yields. That’s right, friends. Why would you buy gold or silver, assets that don’t pay interest, when you can buy a bond where YOU pay the interest?
Gold and silver were also part of Peter Schiff’s talking point, to those who would listen. Of course, the ridicule never ceased but he persisted to this day.
And so now the rhetoric from the Banksters is beginning to change as well.
On July 21, 2020, Bloomberg proclaimed:
“A year ago, you couldn’t get Wall Street to touch most gold miners’ stocks. Today, it’s throwing billions at the industry.” (3)
Remember, action speak louder than words. And it’s my opinion that Banksters act first and then talk. Besides, it wouldn’t make much sense for someone like Warren Buffett to come out and say, “Ladies and gentlemen, in a week, I will be buying large swathes of such and such investment.” If he did, he may as well just slit his own investment portfolio.
And, of course, I feel obligated to remind you, that these are merely my own observations with absolutely no regard for your investment portfolios. So, please, please, please, don’t construe this as investment advice. I’m just pointing out things I see. I especially don’t like the hypocrisy that so often oozes out of the Banksters’ Paradise so I like to underscore insights as I see them. Nothing more. It’s why you pay your own investment advisor to make recommendations for your own portfolio. (If you're missing a competent investment advisor, click here.)
But I’m just a ranting recovering bankster. What do I know…?