In just what might be my favorite post of the year, Mish comments on Chris Martenson's article in One Hand Clapping Theory Analyzed. I love the whole post. Very enlightening and poignant in its coverage of the LIES and DECEIT that have led to this rally. The cherry on top, "One irony in this mess is that Greenspan and the fed openly criticized Japan for failure to write down debts, telling Japan that write offs were the best way to end deflation. Japan refused to do so. Did it help? All the pretending in the world, along with all its quantitative easing did not halt a deflationary collapse in Japan." This post really encompasses just how friggin ignorant and how disjointed we are from reality. Just floating along believing what our government does will always be in our best interests. WRONG!
OK, not that I have easily determined that everyone in the USofA is an ignoramus and could not give a shot about anything as long as they have their MSM to suckle from, let's read Denninger's Is The Dollar Doomed?. You see in the last article we determined that accounting fraud and outright lies have been a big catalyst to the rally. ready for part two? "This is just another example of "kick the can"; instead of facing our medicine and swallowing, instead of forcing those financial institutions who made bad bets to eat them, we are instead devaluing our currency as a means of trying to "print" our way out of this." Sheeple, WAKE UP! They are taking your money and flushing it down the toilet. This is financial suicide. Ahhh, there lies the key. You see they were dead when they started the battle, so no rules apply anymore. Get it?
OK, sheeple, is the picture coming clear. Need to adjust those rabbit ears on top of your head one more time? Well, OK, try this from Washington's Blog via Naked Capitalism Guest Post: The OTHER Economic Crisis? "Indeed, as Richard Jackson told the White House Conference on Aging in 2005: If demography is destiny, global leadership may pass to the “Third” world… Countries with slowly growing workforces may have slowly growing economies… We live in an era defined by many challenges, from global warming to global terrorism. None is as certain as global aging. And none is likely to have such a large and enduring effect on the shape of national economies and the world order." Shanky, come on, now you are slinging a demographic crisis at us? Yup, in this most excellent post GW delivers something for you to ponder in about 20 years, that being WHO THE HELL IS GONNA PAY FOR ALL THIS SHIT when we don't have enough workers to support the taxes? (Mish or someone else has hit on this recently as well)
Prag Cap has INSTITUTIONS BUY CALL OPTIONS ON THE BANKS BEFORE EARNINGS. "Some big money is moving into the XLF banking ETF before the banks begin reporting their earnings this week. 130,000 calls were purchased today with expectations of a greater than 7% rally in the shares." And you are short. Aren't you? You're short. I know it. Admit it. OK, go back to the beginning and start reading again (read Mish's post twice). You failed. You MUST get in line and A) vote the way you are supposed to and B) invest with the heard.
Ritholtz has a story in picture form that you may understand better. Plummeting Dollars. If you have any questions after reading that post - never come back here again.
Shanky, nothing from your sacred cow ZH today? Hmm, glad you asked. OK - this is a video clip! (I can hear the sighs of relief loud and clear. No more reading I promise. I'm sure you have either fallen asleep or left after the first paragraph (this ain't USA today - oops their having readership issues?) In Chris Whalen Comments On Upcoming Financials' Earnings you'll get some good insight into how the shit will hit the fan soon. They can't hide it forever.
Is that picture tuning in a little better now? If you are a typical sheeple, you lost interest at the first sign of "snow" on your screen, you chunked the rabbit ears and said fuck it by now. Too hard. Too much to deal with. Let the government fix it, I gotta go fishing. BAM! There were the magic words, "Let the government fix it."
Both pictures (they are called charts) below are optimistic representations IMO.
OK - Picture time! 1928 to 1956 - From 1929 it took till 1955 to get it all back. This would represent the "square root" recovery most are hoping for. Bhuahahaha.
One last picture for you. Uh, they ain't got it all back yet. Konichiwa!
Note - I left off topics such as CDS, MBS, RE, CRE, Monetization, California, New York (or any of the 44 states under water) and Unemployment to keep this post at a remedial level. Oh, and the world is about to shit all over its self. Have your wipes ready.
