ZeroHedge - Fill the bathtub on Valentines Day
posted on
Jan 24, 2011 11:13PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
But not in the way we would prefer - flowers, candlelight and romantic background tunes aside. Instead flash back to the 80s Mister Bubbles commercial where this skinny guy (aka the US economy) is floated out of the bathtub by a bunch of balloons (mister mister mister bubbles - substitute a befuddled and wide-eyed Bernanke or Greenspan for the skinny guy on the tv lol.) Well you ain't seen nothing yet. Get ready for the modern remake beginning in a few short weeks courtesy ZeroHedge's latest piece which lays out the case for an anticipated unwinding of Treasury's Supplementary Financing Program. If these guys are right then we can expect a healthy dose of liquidity into all sundry markets with the usual inflationary impact that tangibles have been accustomed too lately as the Fed scrambles with no viable plan, to contain the monster they have WITTINGLY unleashed. Gold and Silver at these levels are a screaming buy so don't be fooled by the bozos who are quickly losing control of a financial system that is taking on a life of its own well beyond anyone's control:
http://www.zerohedge.com/article/here-comes-another-25-billion-excess-weekly-liquidity-ramp-stocks
However, what that also means is that the US stock market is about to become awash with another $25 billion in suddenly free cash every single week, until the entire $200 billion SFP buffer is depleted. In other words, take the liquidity impact of POMO, which is roughly $25-30 billion a week, and double it! We are confident the US Treasury will announce that beginning with the week of February 14, it will no longer roll maturing 56-Day Cash Management Bills, which means that for the ensuing 8 weeks, one on every single Thursday, there will be a total of $200 billion in incremental liquidity flooding the market, and probably sending stocks, commodities, and everything else that is not nailed down into the stratosphere all over again.