Wednesday, February 22, 2012

Afternoon Delight 02/22/12 -

OK, see if you can follow the theme here, we're printing money so we can support stock market valuations and keep the Ponzi rolling along cause no one is buying our treasuries anymore.

This is really important and something the MSM is not going to tell you much about, but when they stop funding the system, we have to print to make up for the difference. Russia Dumps Treasurys For 14 Consecutive Months; China Slashes Holdings To Lowest In Over A Year | ZeroHedge "two things bear pointing out: the very demonstrative selling of US paper by Russia continues, and is now in its 14th consecutive month (as has been reported here consistently), as total USTs in Putin's possession declined to a fresh multi-year low of $88.4 billion, half of the $176 billion in October 2010."

This is a huge MUST READ report. Do you really want to understand the EU and Greece issue? This is the best report Mish has ever put out. Plain ind simple and what I have warned as the major issue facing the US and the EU - what happens when all that debt all at the same maturity comes due? "The ECB's balance sheet skyrocketed in the process, and banks that plowed into those 3-Year LTROs (long term refinance operations) at cheap rates will face a huge rollover problem when the program ends, if not substantially before then." Mish's Global Economic Trend Analysis: Liquidity Floodgate Set to Backfire; Transmission Broken; Shutting Down the Liquidity Spigot

So what has become of this market and what usually happens after ramp jobs like these? Dig this,  "The latest report from Morgan Stanley's Graham Secker can be summarized simply as follows: i) in January everything has disconnected as traditional linkages between asset classes have broken down, ii) also in January every major asset class (equities, treasurys, gold, oil) was up materially, iii) such a phenomenon has been seen only 5 times in the past 5 years, iv) a double digit decline followed 3 of the past 4 such surges." As Everything Disconnects And Everything Is Soaring, Morgan Stanley Issues A Warning | ZeroHedge

Did we learn anything from the past? Why are the markets soaring and have some thinking a new bull market is upon us when reality screams we're not? Wonder why I say the markets are rigged and the full liquidity pump is the only reason they are where they are? "Wondering why the DJIA just passed 13K again? Wonder no more: as the chart below shows it is entirely due to the nearly $7 trillion pumped by global central banks into the world stock markets just in the past 4 years. As Sean Corrigan from Diapason notes, the aggregate global central bank balance sheet has doubled in four years, after doubling in the 5 years before that. Here Is Why The Dow Just Passed 13,000 | ZeroHedge

Why rig the markets if the economy is doing just fine and recovering? Because the economy is not recovering. The data from the government or other sources always tends to initially lead you to believe all is well, till it is revised. NAR Continues Tradition Of Making Mockery Of Itself, Revises December Home Sales From +5% to -0.5% | ZeroHedge. "And here is yet another reason why we will permanently ignore the pathologically lying real estate syndicate known as the NAR (link): December data was just revised from +5% to -0.5% (from 4.61 million to 4.38 million). Since December market expectations were for a +5.2% print, imagine the sheer horror the algos would have been faced with had the real number been reported on time. Needless to say, if this number had been unrevised, the January +4.3% increase would have been a decline. This way the aglos focused only on the immediate moment get two months of beats in a row. Huzzah. Anyone who trades anything based on this borderline criminal self-reporting enterprise needs to have their head checked."

You have to read this one to believe it. The criminals working the system for every penny they can at your expense. Want some more evidence the banks are screwing everyone and the MBS market is totally out of control? This is just one of many things that could should will blow up and help implode the system. This is an awesome post. "The MBS trusts’ accounting is as suspect, invalid, inconsistent, and outright fraudulent as are the real estate documents fabricated by document mills." EXCLUSIVE | The Sophisticated and the Scammed – MBS Trusts Keeping Assets on the Books Long After they are Liquidated | Foreclosure Fraud

Chart of the Day - 

30m Index Comparison Chart - Since everyone is discussing it (an I covered this last week) - The Trannies led everyone up. Will they drag them down as well?

VIX Daily - When this puppy starts moving up and the SPX is moving up as well - that is never a good thing.

Presidential Election - 

This is priceless and should be expected from Czar O. You can't make this stuff up, Obama To Unleash “Truth Teams” To Counter Negative Coverage Alex Jones' Infowars. "Republican National Committee spokeswoman Kirsten Kukowski issued a response to the news, noting “The Obama campaign is organizing propaganda teams to deceive voters because Americans are catching onto the reality that Obama’s record doesn’t match his rhetoric. How else will they mask the broken promises like introducing another trillion dollar deficit or the fact that the president continues to recycle the same proposals without ever seeing results?” Kukowski told ABC News in an email."


Just start burning Korans, that's ...really smart especially at a time when global tensions are so ....low? "Afghan President Hamid Karzai appealed for calm Wednesday after officials said six people were shot dead and dozens wounded in protests over the burning of copies of the Koran, Islam's holy book, at NATO's main base in the country." Karzai urges calm as six die in Afghan Koran protests | Reuters

Obummer Bashing - 

Must see infographic if you missed it - The Greatest Gun Salesman In America: President Barack Obama - Washington's Blog

Police State -

Britan's Big Brother - expect the same here soon (if it is not already happening). As I have warned you before, you need to avoid using specific words on the phone and what you discuss over any form of medium should be guarded. "The British government has dusted off previously shelved plans to create huge databases, enabling spy agencies to monitor every phone call, email and text message as well as websites visited by everyone in the country." Government Resurrects Plan To Monitor All Phone Calls And Emails Alex Jones' Infowars

GL and GB!

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