Fed Governor Dares Say 'Bubble': Dave's Daily HOENIG SEES A BUBBLE &

STOCKS SEE RED …Hoenig stated: "In particular, what are the
hazards of holding the Federal Funds rate target close to zero? The
risks of raising too soon are clear and compelling. My comments,
however, concern the risks of raising rates too late. Such risks also
can be significant but all too often seem more distant and less
compelling, and therefore hold great long-term danger for us all...I
have dissented at the last two FOMC meetings specifically because I
believe the 'extended period' language is no longer warranted and I
am concerned about the buildup of financial imbalances creating
long-run risks....And, the market appears to interpret the extended
period as at least six months. Such actions, moreover, have the effect
of encouraging investors to place bets that rely on the continuance of
exceptionally easy monetary policy. I have no doubt that many on
Wall Street are looking at this as a rare opportunity." At least he's
articulating what many are thinking--an asset bubble is brewing and
it's being fed by current easy money policies. Lacking other news and
with volume light before his remarks, investors took his words to
heart Wednesday and started selling…

THE FED'S SHELL GAME CONTINUES... Chris Martenson - Executive

Summary

• Record-breaking Treasury auctions continue to go off without a

hitch, thanks to massive foreign participation.
• However, the amounts reported to be bought in the auction results
do not match the Custody Account or TIC report amounts.
• The Fed is allegedly all done buying MBS and Treasury paper. This
cuts off an important source of liquidity for the Treasury, commodity,
and stock markets.
• How will these markets respond to a liquidity drought?

April is upon us. I need to take a moment to re-analyze the data to see what
might happen now that the stimulus money has worn off, and, more
importantly, now that the Federal Reserve's massive Mortgage Backed
Security [MBS] purchase program is over. This is important for a variety of
reasons.
• The first is that the enormous flood of liquidity that the Federal
Reserve injected into the financial system has found its way into the
Treasury market, supporting government borrowing and also
lowering interest rates for the housing market. How will the Treasury
market respond once the liquidity spigot is turned off?
• The second is that this flood of liquidity has supported all sorts of
other asset markets along the way, including the stock and
commodity markets.
 • What will happen to these when the flood stops? Will the base
economy have recovered enough that the financial markets can
operate on their own? Will stocks falter after an amazing run? Or will
the whole thing shudder to a halt for a double-dip recession?
Back in August of 2009, I wrote that the Federal Reserve was basically just
directly monetizing U.S. government debt by buying recent Treasury
issuances as well as Mortgage Backed Securities [MBS]. Here's the
conclusion from that report:

• The Federal Reserve has effectively been monetizing far

more US government debt than has openly been revealed, by
cleverly enabling foreign central banks to swap their agency debt for
Treasury debt. This is not a sign of strength and reveals a pattern of
trading temporary relief for future difficulties.
• This is very nearly the same path that Zimbabwe took,
resulting in the complete abandonment of the Zimbabwe dollar as a
unit of currency. The difference is in the complexity of the game
being played, not the substance of the actions themselves.
• When the full scope of this program is more widely
recognized, ever more pressure will fall upon the dollar, as more and
more private investors shun the dollar and all dollar-denominated
instruments as stores of value and wealth. This will further burden
the efforts of the various central banks around the world, as they
endeavor to meet the vast borrowing desires of the US government.

My surprise at all of this has been twofold. The shell game has continued
this long without the bond market calling the bluff, and I am baffled by the
extent to which the other world central banks have both enabled and
participated in this game. Part of the explanation behind this unwavering
support for the dollar and U.S. deficit spending by other central banks lies
in the fact that other Western and Eastern governments are equally
insolvent…

Fed Governor Dares Say 'Bubble': Dave's Daily The Fed's Shell Game
Continues... Senior SEC Employee Warns of Potential Municipal
Bond Market Collapse Volcker: Taxes to rise to tame deficit Fed:
Recovery to lose steam FED ELDER SEES RATES RAISING...
Bernanke Says Joblessness, Foreclosures Pose Challenges to
Recovery... 'We are far from being out of the woods'…duuuuuh! ...
Fed Says “Recovery” May Lose Steam CNNMoney | Federal Reserve
policymakers are worried that the economic recovery may lose steam
going forward, despite recent moderate improvements. Bernanke
 Says Americans Must Pay Off “Public” Debt_… Riiiiight! … Sounds
like a plan … until … with what, they ask! Wall Street Journal | Health
spending is set to increase over the long term as the U.S. population
grows older, posing challenges to the country’s already strained
finances, the Fed chief warned.

Poll: George W. Bush still blamed for economy Former Fed Mob Boss
Calls for VAT and Carbon Taxes Kurt Nimmo | If Obama and his
“economic advisers” have their way, you will be paying significantly
higher taxes directly to international bankers.

(4-7-10) Dow 10,897 -72 Nasdaq 2431 -6 S&P 500 1,182 -7 [CLOSE- OIL
$85.88 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS
$2.75 (reg. gas in LAND OF FRUITS AND NUTS $3.09 REG./ $3.26 MID-
GRADE/ $3.35 PREM./ $3.08 DIESEL)/ GOLD $1,137 [video] Gold
Surges Stocks/Gold Comparison (+24% for year 2009) / SILVER
$18.20 (+47% for year 2009) PLATINUM $1,713 (+56% for year 2009) /
DOLLAR= .74 EURO, 93 YEN, .65 POUND STERLING, ETC. (How low
can you go - LOWER)/ 10 YR NOTE YIELD 3.86% …..… AP Business
Highlights ...Yahoo Market Update... ] T. Rowe Price Weekly
Recap – Stocks / Bonds / Currencies - Domestic / International
MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD
PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10 6
Theories On Why the Stock Market Has Rallied 3-9-10 [archived
website file] Risks Lurk for ETF Investors The bull market that
never was/were beyond wall street b.s. when measured in gold
Property Values Projected to Fall 12% in 2010 Jan 31, 2010 The
Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010
01-13-10 Forecast for 2010 from Seeking Alpha Contributor THE
COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer
(01-15-10) 11 Clear Signs Economy Sinking Economic Black Hole 1-
22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not
Going To Recover Current Economic / Fiscal Charts
Trendsresearch.com forecast for 2009 1-7-10 Crash is coming!
‘WORST ECONOMIC COLLAPSE EVER’ Must Read Economic /
Financial Data This Depression is just beginning The
coming depression… thecomingdepression.net MUST READ:
JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850
on the S&P) by TPC The Next Wave of Collapse is Coming Sooner
than you think Sliding Back Into the Great Recession
ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS
WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!

Go to following pages for above links:

http://www.albertpeia.com/currentopics2ndqtr10108.htm
 http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm
http://www.albertpeia.com
http://www.albertpeia.com/alresume.htm

Deadly Riots in Kyrgyzstan: Coming to America Soon Kurt Nimmo | The

U.S. Army War College’s Strategic Institute warns that troops may be
used to quell protests and bank runs during an economic crisis.
Violence in Video Games and the Baghdad Massacre Infowars.com |
Noted for its realism, Call of Duty is currently the most popular first-
person shooter video game series on the market. White House
won’t deny report saying it approved killing of American without trial

israel using Facebook as ’spying tool’ in Gaza Hamas has accused Israel
of using Facebook to recruit spies from among the Palestinian
community in the Gaza strip.

Go to following pages for above links:

http://www.albertpeia.com/currentopics2ndqtr10108.htm
http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm
http://www.albertpeia.com
http://www.albertpeia.com/alresume.htm

Earth Gets Geomagnetic Wallop

Victory in terror war declared by america as Jihad Jane and Jamie go

down! “Internet Jihadist alias Matt Drudge lone hold-out and runnin’
scared” … riiiiight! … Pennsylvania: Silent Plea in Terrorism Case
New York Times - By AP A pregnant Colorado woman charged in a
global terrorism plot pleaded not guilty with a nod of the head to avoid
giving investigators a voice sample. Woman Silently Pleads Not
Guilty in Terror Case Wall Street Journal Second woman pleads
not guilty in plot to kill Swede Reuters Those dirty nefarious
Christians go down as target of at least one of the raids was a
Christian extremist group and further victory american declared ...
Those friggin’ Christians will get you every time … riiiiight! … [If you
 haven’t yet figured it out, ‘just kidding’- This is what is called
‘sarcasm’]. Feds: Christian militia needed to be `taken down' to
Chinatown (AP)

2nd American woman charged in 'Jihad Jane' case (AP) AP - Federal

prosecutors filed terrorism charges Friday against a pregnant American
woman in the so-called Jihad Jane case. The two American women are
accused of plotting online to attend a terror tra... 'Jihad Jane' pleads
not guilty Colleen LaRose of Pennsylvania appears in federal court,
accused of working with foreign terrorists in a plot to kill a Swedish
cartoonist. Video: 'Jihad Jane' Terror Suspect Pleads Not Guilty The
Associated Press 'JihadJane' pleads not-guilty | Philadelphia Inquirer |
03/18/2010 US rep: Pa. Jihad Jane terror suspect cooperated (AP)

Jihad Jamie: Corporate Media Hypes Another Blond Terrorist Kurt Nimmo |
The government will need to come up with terrorists who are not so
obviously mentally or emotionally disturbed in order to sell us on an
interminable war on terrorism. “JihadJane” was laughable, Web
watchers say Philadelphia Inquirer | For years, “JihadJane” had been
a joke to those who kept tabs on her online.

Drudge vs. the Senate? U.S. SENATE WARNS ALL STAFF TO AVOID
DRUDGE... Senate Tells Employees Not to Read Drudge Report
Drudge Report | Just as the healthcare drama in the capitol reaches a
grand finale, congressional officials are warning employees to avoid
the Drudge Report.
Senate declares Drudge Persona Non Grata, Internet Jihadist!

DRUDGEREPORT:
CBS: President Approval Rating Hits New Low...
GALLUP: 50% say Obama doesn't deserve re-election...
Underemployment Rises to 20.3% in March...
Automaker Pensions Underfunded by $17 Billion...
FED ELDER SEES RATES RAISING...
Bernanke Says Joblessness, Foreclosures Pose Challenges to Recovery...
'We are far from being out of the woods'...
OBAMA'S ODD 17-MINUTE, 2,500-WORD RESPONSE TO WOMAN'S SIMPLE
CLAIM OF BEING 'OVER-TAXED'... CONFUSION: 'WHERE DO WE GET
THE FREE CARE?' 18 states now challenge... Viagra for rapists! Sex
offenders!
FOUND: MISSING LINK BETWEEN APES AND MAN....
HILLARY MESS: Karzai Slams the West -- Again...
Afghan leader threatens to join Taliban...
Accuses USA of 'massive fraud'...
OIL NEARS $87...
Santelli: $4 Gas, $150 Oil Coming This Summer...
Dr. Murray's Defense: Michael Jackson Killed Himself...
VERIZON Expects to Incur $970 Million Expense From Health-Care
Legislation...
California's last auto plant shuts its doors...
OIL NEARS $85... Unemployment rate remains 9.7%...
Congressman: 'I Don't Worry About the Constitution'...
FLASH: Arctic sea ice grows back to 'normal' for first time since 2001...
Dozens Arrested At NEW JERSEY High-Rise Where 7-Year-Old Was 'Gang
Raped'… mob infested jersey is obscene … They said they would kill her if
she screamed....
Police: NEW JERSEY teen sold stepsister, 7, for sex party for seven men,
boys...
Obama takes a piece of the rock; PRUDENTIAL to take $100M healthcare
charge...
COPS TOTE MACHINE GUNS ON NYC SUBWAYS...
USATODAYGALLUP: DISAPPROVAL RISES TO 50%...
HILL: DRUDGE and the Republican delusion...
Rove Shouted Down, Called 'War Criminal' At Book Signing...
Troop deaths double in Afghanistan...
Approval/disapproval gap starting to widen again on health spending bill...
GALLUP: OBAMA APPROVE MATCHES LOW; COUNTRY SPLIT 46-46...
FBI terror raid of Christian militia group in Michigan...
Agents conduct raids in Ohio, Indiana...
'It was like a small army had descended on the area'...
Feds confirm 'activities'...
Gun charges...

Go to following pages for above links:

http://www.albertpeia.com/currentopics2ndqtr10108.htm
http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm
http://www.albertpeia.com
http://www.albertpeia.com/alresume.htm