Scary...BUT TRUE

I am a Larry Levin subscriber. Sometimes he does go over the top a little...BUT everything he says is very true. It's just that most people, including the all-knowing markets, don't know or want to acknowledge what is REALLY happening.

Here is his latest piece and, frankly, you would have a hard time arguing with what he says here (at least, I would.)

The market was once again trading in a very tight range this morning...and it was VERY choppy. A few hours before the FOMC announcement, however, the S&P was very quiet - waiting in anticipation.

In a nutshell, the FOMC said "We're gonna keep interest rates at zero, giving mega-banks free money, so that they can more easily rape the public to earn massive interest and fees. After all, the mega-banks are still in big trouble even though we're not going to tell you all the details. These fees and free/zero interest for the mega-banks are bringing them back to life, and even though your 401k's are now 201k's - we don't care. The mega-banks are more important than everything else under the sun."

"Speaking of the importance of the mega-banks, we will continue to monetize US debt without admitting it of course. How we do it is through the primary dealers: Government Sachs and the boys buy up all the IOUs and then we, the Fed, buy it a few days later. Since there is a middle-man holding this new debt for a few days, we can deny monetizing it and the dolts in Congress leave us alone."

"Oh, oh - and the massive $18-trillion of loans and guarantees that we have made will not be stopped any time soon. That would lift the curtain on the bank asset sheet problems and we can't have that. And according to our records and those of the Wall Street Journal, about 50% of the current bank profits are coming from their trading desks. Since we are guaranteeing everything under the sun there is no fear of loss and the banks can jam the market as high as they like. Oh yeah, and the high frequency trading scandal that is currently being discussed, we're gonna stop that. Allowing the mega-banks to cheat and steal billions of dollars from their best suckers...clients...is OK with us at the Fed so we're gonna put and end to a few Congressional outcry's of manipulation. So what if they're right; the mega-banks need the money.

"To hell with 'what's right' and legal; we're the Fed and you can't stop us."