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	<title>Comments on: HOW THE GOVERNMENT RUN RALLY MORPHED INTO THE BANK RUN RALLY</title>
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		<title>By: TPC</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6434</link>
		<dc:creator>TPC</dc:creator>
		<pubDate>Sat, 26 Sep 2009 02:04:37 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6434</guid>
		<description>Thanks Henry.  I try not to be all doom and gloom, but it&#039;s now clear that the banks have once again stolen from the public.  People should be outraged, but no one seems to give a damn....</description>
		<content:encoded><![CDATA[<p>Thanks Henry.  I try not to be all doom and gloom, but it&#8217;s now clear that the banks have once again stolen from the public.  People should be outraged, but no one seems to give a damn&#8230;.</p>
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		<title>By: Henry</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6425</link>
		<dc:creator>Henry</dc:creator>
		<pubDate>Fri, 25 Sep 2009 21:58:51 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6425</guid>
		<description>&quot;It’s sad that people are quibbling over so many insignificant political issues when this one issue impacts the future of our citizenry so much more than anything else. Unfortunately, the average joe simply doesn’t understand basic finance…. &quot;

-The Americans joe doesn&#039;t understand a lot of thing and refuse to ask the mind opening provocative questions.  We have fallen so far in science, math, engineering when comparing to emerging market.  Take away the calculators and American kids can&#039;t give you the correct change.  All the majority of Americans do now is repeating like a parrot, right and left.  I guess all that TV really kill our brain.  Science in my opinion helps people to see the different scenario, to compare, see the differences.  Obama spending plans scares me.  Notice how i say plans because we don&#039;t really know where or how much money are being spend yet.  But for a bunch of Republicans who voted for the TRILLIONS tax cut (spending) in 2001 and hundreds of billions tax cut in 2007 start to talk like they care about our children debt future is too much of a hypocrisy for me.

Anyway, watch the Supreme Court decision on corporations and their constitutional right as people.  Watch who are in favor of that.  What will happen when the vote defined by who has/contribute the most money.  You think the corruption and the vote buying now is bad?  Wait until it becomes legal.
http://www.nytimes.com/2009/09/22/opinion/22tue1.html?hpw
This Supreme Court, the John Roberts court, seems to be having trouble with that. It has been on a campaign to increase corporations’ legal rights — based on the conviction of some conservative justices that businesses are, at least legally, not much different than people.

I like this blog along with zerohedge, market ticker.  You guys actually do the analysis and math instead of being propaganda like CNBC :)  .  Also the readers in here are much much better than in marketwatch site</description>
		<content:encoded><![CDATA[<p>&#8220;It’s sad that people are quibbling over so many insignificant political issues when this one issue impacts the future of our citizenry so much more than anything else. Unfortunately, the average joe simply doesn’t understand basic finance…. &#8221;</p>
<p>-The Americans joe doesn&#8217;t understand a lot of thing and refuse to ask the mind opening provocative questions.  We have fallen so far in science, math, engineering when comparing to emerging market.  Take away the calculators and American kids can&#8217;t give you the correct change.  All the majority of Americans do now is repeating like a parrot, right and left.  I guess all that TV really kill our brain.  Science in my opinion helps people to see the different scenario, to compare, see the differences.  Obama spending plans scares me.  Notice how i say plans because we don&#8217;t really know where or how much money are being spend yet.  But for a bunch of Republicans who voted for the TRILLIONS tax cut (spending) in 2001 and hundreds of billions tax cut in 2007 start to talk like they care about our children debt future is too much of a hypocrisy for me.</p>
<p>Anyway, watch the Supreme Court decision on corporations and their constitutional right as people.  Watch who are in favor of that.  What will happen when the vote defined by who has/contribute the most money.  You think the corruption and the vote buying now is bad?  Wait until it becomes legal.<br />
<a href="http://www.nytimes.com/2009/09/22/opinion/22tue1.html?hpw" rel="nofollow">http://www.nytimes.com/2009/09/22/opinion/22tue1.html?hpw</a><br />
This Supreme Court, the John Roberts court, seems to be having trouble with that. It has been on a campaign to increase corporations’ legal rights — based on the conviction of some conservative justices that businesses are, at least legally, not much different than people.</p>
<p>I like this blog along with zerohedge, market ticker.  You guys actually do the analysis and math instead of being propaganda like CNBC <img src='http://pragcap.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' />   .  Also the readers in here are much much better than in marketwatch site</p>
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		<title>By: TPC</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6414</link>
		<dc:creator>TPC</dc:creator>
		<pubDate>Fri, 25 Sep 2009 17:07:34 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6414</guid>
		<description>Great quotes Finn.  

Here&#039;s another famous one:

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

- Thomas Jefferson

It&#039;s sad that people are quibbling over so many insignificant political issues when this one issue impacts the future of our citizenry so much more than anything else.  Unfortunately, the average joe simply doesn&#039;t understand basic finance....</description>
		<content:encoded><![CDATA[<p>Great quotes Finn.  </p>
<p>Here&#8217;s another famous one:</p>
<p>I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.</p>
<p>- Thomas Jefferson</p>
<p>It&#8217;s sad that people are quibbling over so many insignificant political issues when this one issue impacts the future of our citizenry so much more than anything else.  Unfortunately, the average joe simply doesn&#8217;t understand basic finance&#8230;.</p>
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		<title>By: The Finn</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6413</link>
		<dc:creator>The Finn</dc:creator>
		<pubDate>Fri, 25 Sep 2009 16:59:45 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6413</guid>
		<description>&quot;We have come to be one of the worst ruled, one of the most completely controlled goverments in the civilized world - no longer a goverment of free opinion, no longer a coverment by a vole of the majority, but a goverment by the opinion and duress of a small group of dominant men.

&quot;Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that
they had better not speak above their breath when they speak in condemnation of it&quot;
- Woodrow Wilson

&quot;These international bankers and Rockefeller-Standard Oil interests control the majority of newspaper and the colums of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible gowerment.&quot;
-Theodore Roosevelt

In a statement to congress, President Abraham Lincoln states, &quot;I have two great enemies, the Southern Army front of me and the financial institution in the rear. Of the two, the one in my rear is my greatest foe&quot;</description>
		<content:encoded><![CDATA[<p>&#8220;We have come to be one of the worst ruled, one of the most completely controlled goverments in the civilized world &#8211; no longer a goverment of free opinion, no longer a coverment by a vole of the majority, but a goverment by the opinion and duress of a small group of dominant men.</p>
<p>&#8220;Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of something. They know that there is a power so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that<br />
they had better not speak above their breath when they speak in condemnation of it&#8221;<br />
- Woodrow Wilson</p>
<p>&#8220;These international bankers and Rockefeller-Standard Oil interests control the majority of newspaper and the colums of these papers to club into submission or drive out of public office officials who refuse to do the bidding of the powerful corrupt cliques which compose the invisible gowerment.&#8221;<br />
-Theodore Roosevelt</p>
<p>In a statement to congress, President Abraham Lincoln states, &#8220;I have two great enemies, the Southern Army front of me and the financial institution in the rear. Of the two, the one in my rear is my greatest foe&#8221;</p>
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		<title>By: George</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6410</link>
		<dc:creator>George</dc:creator>
		<pubDate>Fri, 25 Sep 2009 14:52:26 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6410</guid>
		<description>TPC, I have just assumed this was case the past few months.  Once people started talking about a &quot;liquidity driven rally&quot;  and &quot;FED pumping in more liquidity&quot; I just assumed that meant banks balance sheets are strenghted by the FED with more cash and the banks use that cash to buy assets, ie Treasuries, bonds, and equities. So now I&#039;m a bit confused, how is this breaking news?  Can you explain how everyone talking about a &quot;liquidity driven rally&quot; is different from this revelation that banks are using excess reserves to buy equities.  I feel like I either knew something all along or was making a wrong assumption about the phrase &quot;liquidity driven rally.&quot;  I&#039;ll error on the latter until I get an explaination.  Thanks.</description>
		<content:encoded><![CDATA[<p>TPC, I have just assumed this was case the past few months.  Once people started talking about a &#8220;liquidity driven rally&#8221;  and &#8220;FED pumping in more liquidity&#8221; I just assumed that meant banks balance sheets are strenghted by the FED with more cash and the banks use that cash to buy assets, ie Treasuries, bonds, and equities. So now I&#8217;m a bit confused, how is this breaking news?  Can you explain how everyone talking about a &#8220;liquidity driven rally&#8221; is different from this revelation that banks are using excess reserves to buy equities.  I feel like I either knew something all along or was making a wrong assumption about the phrase &#8220;liquidity driven rally.&#8221;  I&#8217;ll error on the latter until I get an explaination.  Thanks.</p>
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		<title>By: xxxxL</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6408</link>
		<dc:creator>xxxxL</dc:creator>
		<pubDate>Fri, 25 Sep 2009 14:10:00 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6408</guid>
		<description>http://www.ecb.int/pub/pdf/mobu/mb200909en.pdf

May be worth perusing p 29 / 30 of the ECB september monthly bulletin
Where are the equities funds flows coming from?</description>
		<content:encoded><![CDATA[<p><a href="http://www.ecb.int/pub/pdf/mobu/mb200909en.pdf" rel="nofollow">http://www.ecb.int/pub/pdf/mobu/mb200909en.pdf</a></p>
<p>May be worth perusing p 29 / 30 of the ECB september monthly bulletin<br />
Where are the equities funds flows coming from?</p>
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		<title>By: jt26</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6407</link>
		<dc:creator>jt26</dc:creator>
		<pubDate>Fri, 25 Sep 2009 14:00:16 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6407</guid>
		<description>If we rest the thesis on the Fed trying (sucessfully) to duplicate Japan&#039;s (unsuceesful) policies, then the gov stock market support was definately intentional.  Japan tried this for a time - explicitly.  I think the intent behind this is to affect the mark-to-market balance sheets of everyone; we are talking citizen&#039;s 401k&#039;s, Calper&#039;s pension liabilities, derivatives (not just for speculation, but also the &quot;plain vanilla&quot; stuff sold to retail investors), etc.  It&#039;s pretty good marginal leverage .. spending a few $100B over 6 months has increased worldwide balance sheets by $5-7T.  Of course, the reverse can also happen (as we all know).  The Fed is trying for a soft landing.  Now that the S&amp;P is just ~30% off it&#039;s recent 07 high the Fed will preceive this as just soft enough.  I expect the broad markets to go nowhere absent some real or perceived change.</description>
		<content:encoded><![CDATA[<p>If we rest the thesis on the Fed trying (sucessfully) to duplicate Japan&#8217;s (unsuceesful) policies, then the gov stock market support was definately intentional.  Japan tried this for a time &#8211; explicitly.  I think the intent behind this is to affect the mark-to-market balance sheets of everyone; we are talking citizen&#8217;s 401k&#8217;s, Calper&#8217;s pension liabilities, derivatives (not just for speculation, but also the &#8220;plain vanilla&#8221; stuff sold to retail investors), etc.  It&#8217;s pretty good marginal leverage .. spending a few $100B over 6 months has increased worldwide balance sheets by $5-7T.  Of course, the reverse can also happen (as we all know).  The Fed is trying for a soft landing.  Now that the S&amp;P is just ~30% off it&#8217;s recent 07 high the Fed will preceive this as just soft enough.  I expect the broad markets to go nowhere absent some real or perceived change.</p>
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		<title>By: Van</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6405</link>
		<dc:creator>Van</dc:creator>
		<pubDate>Fri, 25 Sep 2009 10:38:37 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6405</guid>
		<description>excellent analysis; Marc Faber&#039;s latest:

http://www.bloomberg.com/apps/news?pid=newsarchive&amp;sid=auxNst31pP24</description>
		<content:encoded><![CDATA[<p>excellent analysis; Marc Faber&#8217;s latest:</p>
<p><a href="http://www.bloomberg.com/apps/news?pid=newsarchive&#038;sid=auxNst31pP24" rel="nofollow">http://www.bloomberg.com/apps/news?pid=newsarchive&#038;sid=auxNst31pP24</a></p>
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		<title>By: Paul</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6404</link>
		<dc:creator>Paul</dc:creator>
		<pubDate>Fri, 25 Sep 2009 10:17:59 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6404</guid>
		<description>I think most Americans will agree with you. The bailout money should have gone back to the tax payers or to people who neeed them instead of these bankers.</description>
		<content:encoded><![CDATA[<p>I think most Americans will agree with you. The bailout money should have gone back to the tax payers or to people who neeed them instead of these bankers.</p>
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		<title>By: teomax</title>
		<link>http://pragcap.com/how-the-government-run-rally-morphed-into-the-bank-run-rally/comment-page-1#comment-6403</link>
		<dc:creator>teomax</dc:creator>
		<pubDate>Fri, 25 Sep 2009 09:10:00 +0000</pubDate>
		<guid isPermaLink="false">http://pragcap.com/?p=9527#comment-6403</guid>
		<description>i would describe this rally, the first 20 percent was simple relief rally, the second 20 percent there was a lot of manipulation by the big banks aka GS and JPM, who were often driving the market up in the last 15 minutes of trading day, as it was described on zerohedge. the last 20 percent was driven by traders, fonds and hedge fonds and at the end of this rally, joe6pack put some investments into stock market again. 
guess who will be crashed most by any sell-off. poor j6p again. i really feel sorry for him, since he is the real base for the economy.</description>
		<content:encoded><![CDATA[<p>i would describe this rally, the first 20 percent was simple relief rally, the second 20 percent there was a lot of manipulation by the big banks aka GS and JPM, who were often driving the market up in the last 15 minutes of trading day, as it was described on zerohedge. the last 20 percent was driven by traders, fonds and hedge fonds and at the end of this rally, joe6pack put some investments into stock market again.<br />
guess who will be crashed most by any sell-off. poor j6p again. i really feel sorry for him, since he is the real base for the economy.</p>
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