Morning post (in Exile) 09/09/11

How bout that stealth debt ceiling increase last night? Holy shit. Welcome to the 15 trillion level and 100% debt to GDP - the end is near folks. I do believe they could fix this problem very easily, but it would cost us our military might. You just cut the defense budget in half and poof there will be plenty of money. Sorry - not willing to do that. Would much rather starve than be the small dog on this big rock.

Hell, even if they did that they would then expand the entitlement system till the system failed again. It is all so stupid. We got a bunch of lazy mofos/parasites that have been living off the host for too long. OK, HS science class - what happens when parasites overwhelm and wear out their welcome on their host? Host dies. that is where we are as a nation. 

The Impossible Is Happening Right In Front Of Your Eyes, $SPX, S&P500

This is a daily chart with daily indicators. This is not some weak puny little 60 or 30m chart, but a daily chart. The divergences on this chart are real and not your imagination. The MACD bear cross is real. The MACD hist falling off a cliff is real. The Slow Sto bear cross and plummet is real. The divergences on Williams, Force, PPO and MFI are real. ADX is really falling. Yes, Ultimate is falling. Yes Accum/Dist is in orbit. SPXA50 is at 444. So, you tell me if it is normal that the market was up 6.63 points today, over 1/2 a percent?

The market does defy gravity and any force of nature that could pull it down. With no regulation, rampant corruption, and autobots (more like Decepticons) controlling all the trading in an extremely thin market nothing natural or of any statistical measure really matters any more. Listening to the UBS pit trader run the show today was astounding. Like a hungry lion with an insatiable appetite, nothing was going to get by his marching orders to lift the price at any cost. This is some really screwed up stuff if you are a realist. If you are a standard sheeple without any conscience or inclination to achieve, none of this matters to you.

I have been behind the manipulation theme for over a year now. I get it. It is real, but again my frustration boils over. This is a load of crap. This is, in the name of saving the union, destroying the fabric of our constitution. The raping of America for the glory of the banks has gone to far, and I have really had enough. It is out of control and no one is doing a damn thing to stop it. You can kiss everything you know goodbye, cause when this is over there will be nothing left. Our dignity as a nation is gone. We have been sold out.It will crash one day. There is no recovery. We have done nothing to address the core credit problems that caused this mess. They have simply prolonged the pain and suffering thru a massive waste of money (or transfer of wealth to the banks) in the name of reflation.

We have 8 (EIGHT) months of cash flow left as a nation (yes, this includes the 1.9 trillion they just extended to the treasury ceiling). Do you care to tell me where they will make up the difference when this fairy tale ends? That's right, taxes and real budget cuts and both are gonna really hurt.  March 29, 2010 Total Debt Subject To Limit: $12,629,674,000,000

Care to look at the Debt Clock?

This Daily SPX charts is better viewed HERE. Look and revel in the impossible. It is occurring on this chart. View and be amazed.

S&P 500, $SPX,

I hope everyone had a good weekend. With All the action this week (see Economic Calendar below) picking a direction here would be meaningless. Sure the indicators say overbought and the economy is a total mess, but that means nothing. You have to roll with the punches. Play what the Fed and the BD's give you. You are playing their game and have to play by their rules. Easter week, so we have a short week and trading may be light. 

Economic Calendar -HUGE week. With ADP Wednesday (a well timed misleading GS number thrown out some time mid weak and some more BS from the BLS), Thursday will be huge with all sorts of stuff and Friday you should know is the big jobs report.What this all adds up to is a big Monday next week IMO.

Pivot Points - Know 'em.

Permabears, keep your emotions in check.

Comparison chart - SPX, Oil, TNX and the dollar are having a party and gold has decided not to join in. The inverse relationship of SPX to the Dollar broke down back in December. The dollar has strengthened considerably and the SPX has ignore this run. This should change. A stronger dollar is not necessarily a good thing for the markets. I guess their argument now is that the price of the dollar to the market is "relative". LOL, that's funny, kinda like the price of gold being manipulated is "relative" as well.

SPX -Can they reverse the trend in the daily indicator chart? It would not surprise me. Remember this is a huge week as mentioned above, then you have to throw in the quarter ending scenario (they want to hold those balances up for a good statement print). This chart looks really bearish (like the top may be in bearish). Beauty is only skin deep though and we all know what the inside of this monster looks like.

SPX 60m - The 15 and 30m charts are oversold, the minis being up a little over 4 and price sitting on support a pop this morning should only complete the current corrective or flag/pennant that is forming.

SPX Weekly - The weekly SPX chart says that a top could be near, but it still has some strength. RSI5 is above where the market has peaked in the past and overbought. F Sto got a bear cross last week. S Sto is no longer climbing and may possibly be setting up  a bear cross in the next week or two. OBV is at the point it has reversed recently. What I want you to see id the relationship between SPXA50 and the NYMO. While it is not necessary, the last several tops have been marked by a top in the SPXA50 combined with a divergence in the NYMO. This has been very reliable. If we are to get some sort of manufactured pop this week thru manipulation of the employment data that may set the divergence for the top. 5 out of the past 6 weeks up to set a higher high is impressive. Bernanke is proving his worth as possibly the best market manipulator ever (but that is really not that hard when there are no regulations or rules to play by and you have no morals).

Based on the dailys I am expecting continued weakness. Possibly a lot of weakness, BUT with the short trading week and the BS BLS coming, I MUST CAUTION the shorties about more strength in the market. I am no longer swing trading anything. It is much better to hit and run. Watch the indicators and do not be surprised at anything. Until that weekly chart confirms a trend change more upside churn is still possible.

GL!

Happy St. Patty's Day!

 Last night to enter Shanky's NCAA Tournament Challenge! We're up to 27 entries which is respectable. Come join the fun! Join shanky's group and the PW is shanky.

Quickly tonight cause I have green beer to drink - lots of it!

ZH -Ben Bernanke Has Become The Pied Piper Of Momoism This is really funny (yet sad at the same time) TD comments on Rosenberg's most recent post. "Who cares about any of this, one may ask. The market can only go up, up, up. Yes, if one considers price discovery to be a function of micro volume block buying by algos who have only been programmed to bid the market up. We broke key resistance levels in the past 2 days, and nothing: no major short covering spree, no influx of new buyers. The market has become a stealth melt up mechanism, driven by who knows what money (mutual funds are out), with shorts out. This is precisely the environment that allowed the market to go bidless overnight in 1987. When will this happen - nobody knows. Although if we continue to antagonize the only major foreigner who has allowed the Fed and the government to embark on its ludicrous policy of fiscal and monetary insanity, we will surely find out very soon."


My new mentor and buddy Rich sent me this one (yes, he is a calming influence in my life right now - I'm sure he hates me). Wednesday's update from Stocktiming.com. When Institutional Investors "shift direction" ... it the post. you need to see the momo chart on this post. Just a bit toppy.

Was that another snow job during the snow storm? You thought Greece was bailed out, right? I knew it was the dumbest thing on the planet to do it, but I was under the impression they had ST financing to get them over the hump (more like Everest). Well, apparently they aren't out of the woods, Wait A Second - I Thought Greece Was Done? Denninger has, "But this time it's different, so I think you should believe our fine friends over in Greece, even though Germany says they won't violate their Constitution (Merkel has repeated this enough times now that she's got to be blue in the face) and the news reports that trickle out say that indeed, Greece has no deal - not in the bag, not on the table, just plain not.". We all know they are in deeptrouble. So deep that all the other nations in just as deep trouble can't bail them out and they can't go to the credit store anymore, so this will be it. Do we finally gt a default?

Mish has Christie to cut N.J. school aid by $800M; 800 Layoffs in San Bernardino; R.I. Court Upholds Salary Cuts; Lancaster PA Pension Tsunami I don't think I need to elaborate on this one. I've been warning you this is all gonna come crashing down. The credit store is CLOSED. No more borrowing our way out of problems. The hard truth is finally arriving and it will hut so good.

Jon Stewart on Dodd. This is wonderful. If you have not seen it, please watch.

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
In Dodd We Trust
www.thedailyshow.com
Daily Show Full Episodes Political Humor Health Care Reform

Cause I love the video so much - here it is again

Morning Post

Remember back in January where I kept harping on one more higher high? We're there. I lost a bunch of readers who thought I was nuts and EWT said "this can not happen again". Well, Prechter is not so proudly continuing his 0-fer on calling tops and sticking to using plain vanilla TA is kicking his (and his followers) ass. I am not paid millions to make market calls. I do not have a team of researchers. I am a nobody and am taking him to the woodshed. I wonder if those readers are lurking in the shadows now? Sorry, but I have to say this now, when the hell will you wake up and learn that EWT is a bunch of SHIT. How much money has it cost you. How much time have you wasted following Hotchberg and trying numerous fruitless counts? Is this the 4th top you have "counted" that "had to be it"? Listen, USE TA ONLY and you would not be in this mess. EWT will have it's moments of brilliance. Sometimes counts do work, but as Craig from Stocktock always said, "Trust the charts". That may be the best lesson I ever learned.

Not surprisingly to me, the SPX should open at a new high for the year this morning. Back in the infancy of the blog I set a standard and made the call, the market is manipulated and it will continue to go up until some "external force" that is out of "their" control rips it away. Back then I was one of the few buying into the possibility that the greatest market on earth was a farce, now I am one of the many. Part of my theory has been that the market is all they have left between them and anarchy.

They absolutely must keep the value of the markets up for many reasons. Thru interest rate manipulation they forced the markets to be the only place to play if you wanted to make any money. Thru providing excessive liquidity and quantitative easing and the use of many fraudulent (and what I propose are illegal) accounting measures, they have lifted the market to levels that represent nothing more than a farce. We are participating in the raping of the assets of the American people. The great Pump and Dump. The insider selling should tell you plainly what is going on. There is no regulation. There is no transparency. Everything is run and controlled by the big money lobbyists. The middle class is being wiped out while big government furthers it control over the sheeple thru supplementation to the growing masses of the needy. The welfare state is expanding.

On to the markets - We'll set a higher high on the SPX today. The Dow is still 117 point from setting a higher high.

Here is one of my index comparison charts. It used to be a good chart till this recent round of exuberance screwed it up. If this were a game of darts, I would say that looks like a nice grouping. Compare the last rise and this one. Notice anything different? That's right, this one is not orderly. It is an impulsive piling on. What you are seeing is what one would normally think is a sucker's rally. The last rush in by the dumb money that does not want to miss the move up. This type of piling on usually deserves a 15 yard penalty, but is it different this time? I think so, because the public is not participating. It is your tax dollars running thru the treasury and Fed into the hands of the broker dealers that use the HFT algos to buy and sell against each other front running the markets to siphon off millions for their benefit and bonuses. This is your tax dollars at work trying to "save the economy and produce and economic recovery" FOR THE BANKS.

This thing is about to let go. Be patient. I am not sure if the Dow will have to catch up and set a higher high or not, but if it gets close and as soon as it gets one tick above the previous high, I'd have my finger on the trigger. The weekly chart is not showing a turn yet, but the divergences are stronger now than on any of the previous turns. This will be the top. I am speculating that the mutual funds will want a good month end print (possibly the last one for many years), so this may churn till the last week or thru opex (but it may not).

For those of you that have called me nuts (or worse) for believing and insisting the markets are manipulated and that accounting fraud is the only reason for any of this "recovery" please see The "Repo 105" Scam: How Lehman Fooled Everyone (Including Allegedly Dick Fuld) And How Other Banks Are Likely Doing This Right Now from Zero Hedge. This may be not only the market's black swan but the government and the Fed's as well.

Be patient. I'm waiting on the weeklys to show some sign of wanting to turn (which could happen any minute as the dailys are now showing divergences). I would have to say that if not some time today then next week for sure some sort of turn is coming. I'll have all chambers loaded and a finger on the trigger. At the first sign of any significant momo south, I'll be pulling the trigger as fast as possible.

I'll add this - I'm speculating the possibility of another rising wedge if this is not the ending of the ABC. Well know for sure on the next breakdown which is right. If the ABC plays out we simply fall like a rock, but if we don't look for a D down and E up to a possible double top here to end it all.We're also somewhat off the cycles I was following. There is still plenty of time for the March low I was looking for, and wouldn't it be a beautiful move to get that low set?

GL out there. Don't forget my Tournament Challenge Bracket (PW- Shanky) Have a great weekend!

Morning Protest

I'm slightly pissed this am. Well, does the second run on a BS rumor in a week really surprise you? Yup, it happened again. The market goes nuts on "rumors". Friggin Rumors? That's right. We've now entered a state where all it takes is for some floor trader to break wind and the market reacts like someone lit a fire under it. ZH brings you the details in their own unique way in The Scamming Of Investors Continues, Courtesy Of The Rumormill Formerly Known As The Equity Market. I'll put it this way, if they have to resort to possibly releasing speculative information (obviously information from reliable sources to people who are in the right place to move the market) then they are in deep trouble. Have the PPT's pockets run dry? The real problem is the SEC's lack of concern and the fact that this occurs so easily. Folks, this is the BS your markets have become.

On to the markets - Minis flat, markets overbought (that is a slight joke cause you know that I think every gain since April is fraudulent) and now markets are capable of a rumor driven ramp job at any moment to benefit the banksters as they have gone from taking cash out the back door on hand trucks concealed in some way to simply loading pallets on forklifts and taking it out the front door (this is your money by the way in the form of future tax liabilities).

After the move yesterday, I'm not all that inspired to give any sort of analysis. Why not just title my post - Morning Post - Another Ramp Job Today and be done with it? This shit is gonna bite them in the ass. Sadly, it is gonna bite you and me  in the ass even worse when it all ends.

In protest of the government's (to many to list here) problems and inability to regulate anything I am not doing an analysis this am. Why should I? Isn't it painfully obvious that they know the market is bogus and are pulling out every stop to keep the levitation act going. Every BS move like this is a PUMP designed to suck in more of your money so they can DUMP. This is a suck job that Jenna Jameson would be proud of, yet sadly the benefits are not nearly comparable.

If you would like to see my charts go to the link to my chartbook on the right or click HERE.

Yes, I shorted (very lightly) late yesterday and was bold enough to swing it. FAZ and SDS. I will not stay around if they drop one cent under the purchase price.

It is beyond time to get active and do something to wake the sheeple up. Get active. Spread the word. Talk it up. Send emails with links to articles (or this blog, Mish, Zero Hedge, Denninger, Alex Jones - All links on the right in the blogroll). Let others know what is happening. Now is the time to be mad as hell while we may possibly still have a chance.

GL, you will need it.

Last night I included "Stop the Health care Takeover!" Petition to the U.S. Congress. Mish posted this last night -Pelosi: We have to pass the health care bill so that you can find out what is in it - you have to hear it to believe it. This shit has to stop.

The Problems Continue To Mount

Nope, no good news today (that you can believe at least). Yet another day of dismal data and more lies designed to make you think the recovery is here and there is no threat of a double dip in this recession. It is over, move along, nothing to see here.

Let's start with the most obvious and what everyone should have expected. State Tax Revenues Plummet By $87 Billion, Biggest Year Over Year Decline In History; Record State Tax Hikes In Progress. OK, so unemployment is at 17% (U-6 we count here on Shanky's blog not the U-3 number), what did you expect? "national recession has had such a devastating effect on state finances that states took in $87 billion less in tax revenue from October 2008 through September 2009 than they collected in the previous 12 months. This 11 percent decline, the steepest on record, resulted from the impact on tax collections of lost jobs, reduced wages, and lowered economic activity." I have been reporting via Mish and other sources the blight facing the state and local governments. I hope you have been listening, cause this country is chock full of our own version of Greece but on steroids. The stress on state budgets is tremendous. Stay tuned for some real interesting actions as balanced budgets come due.

I hit on this briefly this morning University of California Campus Erupts In Riots; Student Loan Scam Drives Up Cost Of Education; Expect More Riots "Students at the University of California’s flagship Berkeley campus took to the streets on Friday night, vandalizing university buildings, burning trash cans and clashing with police in the latest expression of frustration over cuts to the educational budget in California." I know the budget cuts have our local college students in a minor tizzy, but nothing like the children at Berkley. A quick Google search yielded nothing, so I guess this is something the MSM is not going to let you in on.A quick read of Mish's post brings some good points to light. Mainly the fraud that potentially exists in the student loan arena. What's that Shanky? Fraud? More fraud? Yeah, it seems like the universities have a TBTF mentality. you see with the government backing every child that wants to go to school (does this sound familiar to another recent problem) the universities have loaned away the farm. Now with the government cutting back and with loan standards rising students are having fits. (where have I heard that story before?)

I liked this one from the Market Ticker - short and sweet - ADMISSION By FDIC: Massive Balance Sheet FRAUD Me thinks someone from the FDIC put something in an email they should not have, ""That’s the value the bank had them on their books on their year-end financials, but the true value is much less. It is similar to someone in Las Vegas saying that their house is worth $300,000 because that’s what they paid for it three years ago, but the reality is, if they had to sell it in today’s market, they’d only get $250,000 for it. The FDIC has to sell assets in today’s market." Remember Mark-to-market and the accounting fraud I keep beinging up and the insolvent banks? Yup, that's it!

Naked Capitalism has Banksters Win Again, Edition 1,477,536 a sad story about more reform failures. We all know that a serious lack of regulation (that is being kind) got us into this mess. well, now the banksters have it so good that they don't want nay regulation. It will only cause more problems in their eyes. Here you are seeing your spineless representation in Washington at their finest hour. Bowing to the blackmailing banks that hold us hostage. "Obama has not been well-advised. His so-called accomplishment — stabilizing the financial system — comes from throwing trillions of taxpayers’ dollars at financial firms. He has behaved like a Wall Street trader: spending other people’s money with no thought of consequences. Anyone can do that… Reform, not stimulus, is the solution. Only by limiting financial speculation can the foundations be laid for a healthy recovery, and to prevent another crisis."It is truly astounding when you read it every day. the problems are plain as the nose on your face, yet they pretend they can't fix things cause of systemic risk. I ask, systemic risk to whom, the banksters or the nation?

Washington's Blog has White Schools Bernanke on Basic Economics (after you dig around a few conspiracy laced post which are the best on the web). Look, I'm no economist, but the points Mr. White brings up are like econ 101 and these dips running the Fed don't even get those basic principles. The Fed is behind everything and they are the root of all evil in my book. At this point I am not sure if all of this was engineered or truly a dunb fuck moment of historic perspective. I'm leaning to engineered when you get quotes like this, "Should governments feel it necessary to take direct actions to alleviate debt burdens, it is crucial that they understand one thing beforehand. If asset prices are unrealistically high, they must fall. If savings rates are unrealistically low, they must rise. If debts cannot be serviced, they must be written off." Note the "debts must be written off" point.

You may have seen the "Invest In California" banner adds floating around on the internet. (Cough, cough, clear throat, giggle). Uh, OK, so why are they asking you and me ton invest in Cali? Bill Lockyer Goes Direct To Retail Investors With The "Terrific" Opportunity To Front Run Institutional Investors In Cali Bonds - Just Don't Do It - cause your state will need you soon enough."If anything, it underscores just how horrendous the fiscal situation in California is, and how anyone buying into this bond issue should be prepared that the next round just may not find enough greater fools to extend the perpetual refi Ponzi (forget about repayment at maturity)."

That is enough for today. No mention of the PIIGS or Dubai today, but that does not mean the problems have not gone away. I'm getting more worried everyday for each of us. It is piling up all around us and they are using smoke and mirrors to hide the truth. Sadly, when the first card fails, the whole house comes down - globally. The debt laden camel's back is bout to give way. Be prepared.

GL!

Tick, Tick, Tick - BOOM!

Well, not BOOM! yet, but we're getting closer.

The definition of insanity is what it is. SSDD. But what if this insanity is some sort of measured move by a bunch of really greedy mofos that knew what they were doing all along? Or, a bunch of greedy mofos that royally screwed up trying to build massive wealth, got bailed out and in the face of disaster wound up owning everything anyway?

Bottom line, luck or planned, the banks have pwned society. They now have all the money, all the power and we are all indebted to them basically forever (yes, even those of you that have paid off everything). This sad situation that began (for purposes of this point) in the early 90's with the blow out of regulatory powers is now ending with a ponzi scheme that will destroy the global financial system.

Financial fraud is rampant. From The Rumor Bag: Financial Firms Receiving Widespread Subpoenas For Euro Shorting Collusion from Zero Hedge is the latest and greatest on wire. Maybe the Europeans have a bigger set of regulatory testicles than we have and something may actually come of the persecution rather than the obligatory fine and admission to NOTHING.


Yes, I said destroy the global financial system. Zero Hedge also found this one from Chris Wood on CNBS - CLSA's Chris Wood "In Five Years The US Dollar Paper Standard Will Collapse". I agree on the total collapse of the dollar paper standard but not with any of his optimism surrounding anything regarding strength in any markets. He tells the tale I tell. It all statrts with a meltdown in Europe and the tsunami winds up here where it was all created. 


I enjoyed this Ron Paul vid Broken Us Government with Ron Paul.avi Listen to the man. He's been the only one warning us of the truth and crisis for years. "We are insolvent...Governments always liquidate debt by destroying the currency." If you don't listen to me will you listen to RP? 




Denninger has (via ZH) Balance Sheet Fraud Is Not Just For Enron (Or Banks). I bring it you you from Karl cause he dubs it down better. "That is no hedge, it is a loan.  It was done to cook the book and, in my opinion, falsely present the "health" of the nation - in this case Italy - involved.  It was done over the counter with no paper trail or exchange trading for the explicit purpose of secrecy, so that nobody would discern that the government in question had borrowed the money." Countries, states, pensions, Social Security - you name it - ALL INFLATED BULLSHIT. Kicking the can down the road borrowing and spending like there is no tomorrow. Well, tomorrow is finally here. We have been living above our means and creating bullshit Ponzi style financing for a couple of generations now. It is time to pay the band and we've nothing left.

One final note, just to bring it home to the state level (since most of our states are bigger than some of the sovereigns that are in trouble) Mish has - Rep. Suzie Bassi: "Illinois in Utter Crisis, Next to Bankruptcy, $13bn Hole in a $28bn Budget"; Ambrose Evans Pritchard Inflicted with FIV  "I do not know why economists believe in fairy tale economics and free lunches when the average 6th grader would know better. The only theory I can come up with to explain this phenomenon is a renewed outbreak of the Fiscal Insanity Virus rapidly spreading the globe. Ambrose Evans-Pritchard is no doubt, infected." I keep harping on basic math. Simple math that says none of this can be afforded or paid off. None of it.

And now we have proof of TUNGSTEN? Gold bugs beware. Now no one knows what is real and what is not. Can this be real? I'll have to dig for the study, but i believe it has been proven that there is much more gold claimed to be owned that there has ever been mined in the history of the world.German ProSieben TV Channel Finds 500 Gram Tungsten Bar At W.C.Heraeus Gold Foundry With Bank Origin


You see, tick, tick, tick, the clock is ticking to global insolvency. The lies and fraudulent accounting have caught up to the countries and states that have fed at the debt trough for far to long (at the expense of the taxpayers around the globe so the banks could make billions).  Don;t believe anyone that says this will be OK or that will be alright. Screw Swine Flu, the global financial system has something worse than the Ebola virus. The contagion was passed around in the money orgy. It has spread to every sovereign nation now. The only question that remains is what or who will survive the final meltdown.

Morning Post

For those of you wondering (or frustrated) about manipulation, Zero Hedge posted Rumor Versus Fact: An Insider's Report On A Manipulated Market last night. The post (you would have thought I had written it) has, "In the early afternoon it hit like a mad PPT trader masquerading as a legitimate agent of the NY Federal Reserve: MASSIVE BUYING!  Within minutes the S&P500 along with the other major markets took flight and quickly rallied 1%.  Had a rate cut followed the recent rate hike?  Was the recent horrific economic data revised by the BS artists at the BLS?  Nope – the market took off because it was rumored that AAPL would split its stock 4:1.  Yep.  A rumor.  A *^%$#!G rumor!  About 30-minutes after the short covering carnage started AAPL denied the story…and the market proceeded to ADD to its gains." You know it was not me because I freely use appropriate language where required.

Another finely written point (among many) was, "The Durable Goods report got major headlines from the Lame Stream Media about how bullish the number was.  This is only the case for the headline number.  Responsible for the good headline number was a 126% increase in civilian aircraft orders (these orders can be cancelled, by the way).  Outside of transportation, orders fell 0.6%. Core capital equipment and machinery orders dropped 2.9% and 9.7%, respectively, which are the important ones that determine the direction of the economy.  For all of 2009, durable goods fell a record 20%.  But don’t worry, it “could have” been worse."

You see folks I warn you constantly that the market is rigged, and that the MSM pumps up the volume endlessly for the boys on Wall St. to sell their wares to as many unsuspecting/ignorant/uneducated investors as possible. It is nice to see some backup to verify my constant rants on the subject. Want to know How Goldman Prevented Today's Market Rout And Made A Quick $3 Million In The Process? It is almost surreal. 

Given all the above it is any wonder I am struggling with the Morning Post today? I got all excited about the turn on the minis near 1084 yesterday after looking for 1083. (Now, why it turned there is another story.) I was pumped about the possibility of my 5.3.5 starting to possibly come home having the 3 complete and what looks like a 1 moving up. After reading the headlines and digesting some more reality (gotta take that in small doses these days), and with the market in a spot where 2 of 1 could be over or the final 5 up could be happening, I have to say that I am in pure wait and see mode on a Friday. My suggestion. Take the day off but keep one eye on the markets just in case. Cash is king right now. 


SPX 60m - Several options. 1)I had previously mentioned the possibility of the lower triangle support line being reset lower and a move to E may be it. 2) If the triangle is the wrong call and the 5.3.5 is right, care to do the math where C=A? You guessed it 1150. Double top would be pretty. 3) Finally is 2 completed and we're headed south for good like we should be and 3 of 1 is here? Thus the confusion. Yesterday was a great example of why short term gambling in this market is a fools game especially in an unpredictable 2 or 4 wave in a manipulated bullshit market. To add to the confusion, the indicators are all over the place, no clear trend is established and the VIX, while sitting on support, looks weak to me. Thus, sit it out. Take the day off.

Putting it all in one place. SPX and oil being stubborn ignoring the dollars rise. Has the dollar completed a measured corrective ABC and is not in the bull mode the EWT people think? Something has to give here as normal correlations are getting a little screwed up (as should be expected in a global financial crisis with rigged markets). This is adding to my lack of conviction on market direction.

I'm on the sidelines unless we get some large move south confirming the top of 2 is in. Enjoy your weekend!

Oh, and why am I not commenting on GDP? Well, you do the math compared to durable goods orders yesterday and to housing starts and tell me if it is remotely accurate or not? Just more BS from the BLS. 

GL!

Every Day Is One Step Closer To The End

Long, slow, painful (yet titillating at the same time if you are into that kind of thing) march to the end. The set up is right in front of your face. Banks hoarding cash and not lending. They know the breadth and depth of the problems. They are now enacting rules and legislation to guard against runs on the banks. Do you really think if things were getting better they would be enacting such policies?

Infowars.com did a nice piece on Citibank Controversy Puts Dubious FDIC Guarantee Back In The Spotlight that covers the issues facing the banks and FDIC limits. "Alarmingly, The Federal Deposit Insurance Corp. only has about $50 billion to “insure” about $1 trillion in assets across the nation’s financial institutions. This was even admitted in a Yahoo.com article shortly after the collapse of Lehman Brothers in 2008. When Americans realize the fact that banks are “going to run out of money”, the article nonchalantly stated, a run on the banks will accelerate." Do not forget the FDIC is basically bankrupt (and the banks are refusing to come off of cash even to fund their obligations with them).

From the same post - ready for this? Want to be scared shitless? “The requirement is part of Regulation D of the Securities Act of 1933. It applies to all accounts classified as Negotiable Order of Withdrawal [NOW] accounts – basically interest-bearing checking and savings accounts held by individuals and non-profits. Banks are not required to hold reserves in place to cover NOW accounts, so the rule prevents a run on withdrawals for which there are no reserves,” states the report." (emphasis mine) Nice! I feel a lot better. Thanks Congress. Thanks a bunch! Uh, isn't that ass friggin backwards? Apparently not.

That is mostly right. A run on the banks from the citizens would be a big deal, but remember Dubai and that nasty thing called fractal lending that has caused this credit driven fuck up. They are not worried about you or me getting the funds. They are worried about Dubai demanding their $10 billion in deposits (fractal that). They are worried about sovereign runs on the banks. It will get ugly cause they don't have the money.

As always Mish does a nice job with the unemployment report. He has a unique way of bringing the worts ot of it almost every time. In Weekly Unemployment Claims Spike To 496,000; Will Reality Soon Set In? "At some point however, reality will eventually set in. Without jobs, all this happy talk about the impending recovery, and all of Bernanke's yapping about low rates, will not satisfy the market. It is going to take both jobs and an increase in consumer spending to lift the economy. From where I sit, neither is coming."

Your daily Greece update comes courtesy of Zero Hedge in Greece Deterioration Hits Nitrous: IMF, EU, ECB Find Greek Plan €4.8 Billion Short. You can only squeeze so much blood out of the turnip. This is it. This is what I see spreading globally. this is the main point of denial. Massive wage deflation and everyone is held captive to the banksters that we bailed out that caused this mess. What a friggin job that must be, huh?

Well the NYT has Banks Bet Greece Defaults on Debt They Helped Hide. Well? You don't think they KNEW this was coming did you? Nah, GS did not sell them (and numerous other countries) the systemic CDO's that caused their financial system to rot from the inside, all while knowing they would and having handsome bets on the other side. Friggin amazing stuff. Who needs regulations? ZH gave a nice graphic in Greek Treasuries Pancake As Bond Vigilantes Chant Death Chorus of their sexy looking bond spreads today.

Late yesterday Denninger put out Clap-Clap (Weil and The Mark-To-Market Scam) which covers the mark-to-myth scandal I do not cover enough (In plain terms the reason the banks are all actually insolvent). The Enron style accounting has led us to this, "We've done nothing other than making legal accounting lies. The impairment and thus the actual economic loss still exists, and while we may have pushed it off another year that actually makes it worse, because these non-accruing loans gather more and more hair on them the longer they sit around without being either foreclosed, put back, or otherwise disposed of. This part of The Bezzle is one of the worst examples in this entire sordid mess and if Congress won't grow a pair then FASB needs to - right now." I keep telling you we're really screwed. Like really deep shit. 

On the issue of lack of regulation Washington's blog has Economist With Financial Services Committee For Eleven Years, Assisting With Oversight of the Fed, Lends Support to Ron Paul's Questions "Today, Ron Paul accused the Federal Reserve of having a hand in nefarious plots such as Watergate and arming Saddam Hussein. House Financial Services Committee Chair Barney Frank said that the Committee should look into it." We really need to audit the Fed before it is to late. Heck, I'm not sure I want to even do it now. Scared of what we might find. Talk about Armageddon?

We're getting closer every day. Sure more QE may be coming but what good will it really do? Kick the can down the road another 6 month to a year and just dig an even deeper hole while stuffing the banksters balance sheets with more of your future tax dollars. Friggin GREAT! Sign me up! TWICE! I hope you all realize I am not blowing smoke here. Every night I bring you real world situations that should scare you to death. Massive deflation is coming to a street near you. Greece should be your model. I just hope like hell we come out of this a free nation.

This is AWESOME - Max at 7:00 - paints a really clear picture. the whole world will hate us when this is all over. 

GL and have a good evening!

Shit + Fan = Huge Mess

It is always nice to be able to see the train coming and not have to suffer a blind side crash. In this case that light at the end of the tunnel (no, don't go towards it) is the global financial default coming on the express route to a country near you.

I suggest you watch Mob Madness - Greece on YouTube to get a glimpse of one reporter's views and opinions of the troubles they face and the building anarchy on the streets there. This country is being ripped apart from core. They are so far in debt that even if bailed out they could not pay that off. This is what the EU knows. This is why they have not spent a penny on solving the problem. Finally, the situation may be clear to the lords of finance. The monster of debt created by the beast of cheap credit, corruption and extremely loose global liquidity can not be fed anymore. We are out of food and have one hungry monster (the banks) that want to be fed.


Here is a glimpse of why our nation is enacting the unthinkable limits on demand deposits (see Citigroup can limit demand deposit withdrawals and money funds can too). You see. it is not such A Wonderful Life. We have taken the red pill and are stuck on a bad trip to Pottersville. The big bad bankers have looted all your money and now the sumbitches don't want to give it back in the form of credit or in the form of cash. In a rare glimpse of what will (not may) be coming our way in the near future is Greeks Scramble To Pull Out €8 Billion From Local Banks As Greece Responds With Money Control Measures. "This represents over a quarter of the money held by private banks in the country. This also represents about €400 billion in total money leaving the system courtesy of fractional reserve banking and the money multiplier. Yet the worst news for Greeks: money controls are coming".  If you need to read that two or three times to get it to sink in go ahead.

How can I so boldly say this is coming our way? Cause we are now in full debt monetization mode. In ZH's Charting The Indrect Bidder Hit Ratio After Today's 100% Result, And Anticipating A Surge In Brand New SFP Issuance you get, "This SFP news is relevant because today's Indirect Hit Ratio demonstrates that the "sales" of $195 billion in new SFP bills will merely go to Primary Dealers and whoever the increasingly less mysterious Direct Bidder is, as Indirects phase out all Bill interest altogether." Monetization of debt. We are printing money to support out debt payments. Whooo Whooo - hear that train whistle. It is calling. It is empty now. All the passengers got off. We are the only ones buying our debt now. How long till the big money grab starts and countries (well, China already is) start cashing out? Uh, folks, the system was not designed nor ever intended to experience a cashing out. That is where global default comes into play. Anyone care to take a peek at the National Debt Clock?

It wont be long till the PIIGS all start falling apart (really every debtor nation globally). They will all topple one by one from the overload of debt created by zero regulation and a corrupt and greedy banking system. It is surreal cause you are able to see it all happening in slow motion in real time. Denial is not a river in Egypt. Denial is the state that most of us are living in. This can't be happening. This is not real. It can not happen here. Sorry folks, it is real and that train is coming. It is big, heavy and at this point futile to try and stop. It will rip its way across the globe causing all sorts of devastation and destruction. Not until that train is derailed will we have any sort of recovery.

Maybe we are not in denial. If the Consumer Confidence Survey is accurate at all maybe we are waking up. Mish does a nice job with Consumer Confidence Plunges To 46, Lowest Since April; Current Conditions Lowest Since 1983 "Housing has stalled with another leg down coming, jobs are pathetic, taxes are headed higher, and debt levels are unsustainably high. Pray tell what is there for consumers to be optimistic about?" (What is really funny is at the beginning of all this mess in 2007 I used to read Mish and get depressed. Glad I don't have to read my own stuff LOL.) And from Rasmussen Reports 73% Agree That Washington Is “Broken” and Obama's approval rating is .... -19. That is really, really bad for the man from HOPE and CHANGE.


Wake up people. Get involved. Force the issues. We need massive amounts of regulation first and foremost. Then all you will be able to do is hang on till that train has done all the damage. We'll come out of the rubble and rebuild. What America will look like will be anyone's guess? We'll be OK in the long run as we always are, but some really tough times are ahead. Whooo Whooo. 


Take care. 

Morning Post

Like sand thru the hourglass - as the market churns. There is no telling how long they can keep the charade up. As long as they have no regulation of any sort, a printing press and basically no accounting rules I think they will run it till they suck the last dollar out of the corpse that is the American taxpayer. Then it all goes bust. So, put the big moves of P3 in the back of you mind for a while. It will happen, you are just going to have to be patient.

Economic Calendar - Bernanke speaks at 11 this morning.

Earnings Calendar - There are a few good ones left. TGT after the bell.

Minis at 1112 resistance riding along the top channel resistance line. It all depends on what Helecopter Ben has to say today and where the GS HFT bots want to take us.

SPX daily - Getting overbought but not ready to turn just yet. Should be soon with the 30 and 60m setting massive divergences (thus I very rarely ever play a 60m indicator only daily for the turns). 50ma, upper BB resistance and the 61.8% retracement are flashing yellow warning turn soon. It really is that simple. You can't force the market to do anything. You have to be patient and let it come to you. When the S Sto gets it's bear cross on and the MACD hist turns that will be the time, but until then you are dreaming if you are short. If Uncle Benny decides he wants to squeeze the shorts some more, you know darn well he can do it. Tune in at 11:00. The Weeklys are moving up as well. Remember the dailys can embed up here. this is no normal market.

Gold - Still climbing and should continue. Lets see what happens at the 1142 level. I expect a little more than that.
Dollar - I think the climb is done for now. I'm torn between a possible run to 89 or the ABC corrective that I have been calling is completed and it is toast from here. Looking at the daily and weekly indicators I'd be leaning really short here. Again, tune in at 11:00.
Oil - Plenty of room to run and may double top or better.
EUR/USD - technically it is either bottoming at the 61.8% retracement and is due for a bounce or the indicators embed and the party goes on.
Natgas - Channeling down. &4.67 is the 38% retracement. Let's see if it stays in the channel when it gets to that number.

GL out there. I'm in cash till Ben speaks. I'm gonna try to get some more detailed posts out this week that may help.

IsThe Writing On The Wall?

The piece by Hoenig is either total manipulation BS being spewed but the powers that be to quell the Tea Party followers or there is one person at the Fed that has a brain. Actually they all have brains, it it morals they severely lack.

Mish has praised Knocking on the Central Bank’s Door by Thomas M. Hoenig, President, Federal Reserve Bank of Kansas City in his post "Three Paths Forward" - Kansas City Fed on Current U.S. Fiscal Imbalance, Hyperinflation, Printing. I guess having someone at least attempt to lay out some sort of exit strategy is nice. The only problem is he left the full frontal out of the equation.

Hoenig says, "I see just three ways forward in dealing with our current and prospective fiscal imbalances. While each involves considerable pain only the third will resolve the imbalances without eventually causing inflation to accelerate or precipitating a financial and economic crisis." 

Option 1 - Monetize. "One option for dealing with a fiscal imbalance is for the central bank to succumb to political pressure and monetize the debt. ... This process often appears benign at first, but if it goes on unchecked, the outcome is almost always higher levels of inflation and ultimately a loss of confidence in the value of the currency and the economy." News flash! We're there already. With the Primary Dealers now buying huge chunks of the auctions and promptly being refunded those funds by the Fed and the recent increase in the treasurt debt ceiling limit by $1.9 T, we're there. So seeeeerike one!

Option Two - Policy Stalemate. "The second path forward is a stalemate between the fiscal and monetary authorities. In such a stalemate, the fiscal imbalance grows while an independent central bank maintains its focus on long-run price stability. ... Eventually, this combination of large debt, and high cost of borrowing and capital weakens economic growth and undermines confidence in the economy’s long run potential. Slowly, but inevitably, if the fiscal debt goes unaddressed, the currency weakens, as does access to global financial markets. And the cycle worsens, leading ultimately to a financial and economic crisis." We're already there again. The key words are "undermines confidence" and weakens economy". What's that about China pulling out (China Pulls the Plug on U.S. Treasuries)? Who bought what last year? Large debt and high cost of borrowing will lead to that $1.9 T being spent in a few months and the drug addict will be back at the door looking for another fix. As DP used to say, "And the whiff." Steeeeerike two!. 

Option Three - Equitable Fiscal Discipline "Knowing inflation is not an acceptable alternative to strong fiscal management, a government faced with rising debt levels must provide a credible long-term plan to reestablish fiscal balance. The plan must be clear, have the force of law and its progress measurable so as to reassure markets and the public that the country has the will and ability to repay its debts in a stable currency." Steeeerike three! Flat footed watching a fastball down the middle! Plan? Anyone seen that plan laying around? You know the one with all those new job programs, ways to increase lending to small business and other measures to stimulate the economy while increasing regulations to ensure none of this ever happens again? Wait, not not that one, you mean the one to save the banks, funnel all of the TARP funds and increased taxes to the TBTFs? Oh, yeah, that one is right over here. They got a plan alright. One that puts us in the default line.

The Financial times picks up on Hoenig's speech in Lone voice warns of debt threat to Fed "The hawkish Kansas Fed president also warned against “dire” consequences of the central bank prolonging its holdings of mortgage-backed securities, which it purchased in an effort to prop up the US housing market. Mr Hoenig painted a picture of a slippery slope, where a less independent Federal Reserve was asked to find ways to support other ailing sectors, such as agriculture." LOL, don't forget about the Fed's balance sheet that is absolutely bloated with toxic debt and how their efforts to save the RE/CRE markets may have amounted to a big fat zero. 

For those of you looking for a good debate on whether to hyperinflate ot not, here you go. And I quote, "While Donovan is correct in principle, the opportunity cost, should debt levels become insurmountable, of a devaluation will likely be actively considered by all financial "experts" in the administration. Coupled with a prevalent expectation that this kind of action, especially in light of Donovan's analysis, and coupled with a short-maturity focused debt curve, means that the likelihood of just such a policy is becoming increasingly likely."

You can chew on this as well - The Minneapolis Fed President Kocherlakota Warns Massive Debt Load Can Only Be Paid By Tax Collections Or Debt Monetization - Our options are fading fast and none of then are very appetizing. Tough times are coming.

Have a good one.

Yes, It Is That Bad

Nice to go away and know nothing has changed. The world is still rotting from he inside and the maggots are beginning to bore holes in the skin. The process of decay is a long slow one. The elements that the body are exposed to have a lot to do with the process and as long as the Fed keeps it warm and dry, the process will just be extended. Infinity is not an option. Once the process has started there is no reversing course.

I often compare our financial situation to a black hole and that we are on the event horizon. This is the point of no return like the edge of a whirlpool but worse. Beyond this you are sucked into the vortex where nothing, not even light, can escape.The gravitational pull from our staggering amount of debt is the collapsed star at the point of singularity. Eventually it will pull in and destroy everything that is in the outer ring until nothing is left. 


I'm of the opinion that at this time you have to have this mental outlook. You have to go to the edge. You have to understand that the financial world is collapsing around us. The unsustainable debt crated by fractional lending and the resulting collapse of credit markets can only be sustained for so long before implosion. You add up the numbers that I present here nightly? You tell me if the simple math adds up to any other conclusion? Every effort now to save something only adds to the mountain of debt that no country can support.

All we are managing to do is keep the bubble afloat. It will burst eventually and everything goes down with it. Once the first domino falls the chain reaction will be unstoppable. We have two paths to take. One, the rich get richer and the middle class gets eliminated (which is the current, wrong and bad projection). Two, we suffer such a deflated state that nothing escapes it's wrath, and we become a nation that can actually afford to manufacture things again (my preferred and I believe the eventual route). The option of some sort of global warfare will be out of the picture. No one will be able to afford it and it is possible that compassion may rule if we get the right leaders in place.

The bailouts can not continue. Do you care to explain to me where the funds will come from to pay off the current deficit? And we're gonna keep adding to it? Be realistic people. The math does not work no matter how many disaster default swaps or whatever friggin bogus instruments they decide to create to fund or insure against this mess. Billions eventually become trillions and trillions become quadrillions and so on. The fraud will have to stop at some point. Their lies and corrupt acts will catch up with them. What will the solution be? There is only one, massive global default. It is coming. I believe 1000% that it is the only exit door that exists, and I believe they know it and are measuring the move at this time.

Not if but when, times are gonna get really tough. They are setting up for it now. Why would they enact the money market limits or be discussing the socialist act of confiscating 401k assets? Regulation, LOL, have they fixed one darn thing yet? Do the lies outnumber the solutions? Does the corruption train just keep on keeping on?

You do the math. Yes, it is that bad. There will be a rosy future once the purging/exorcism is complete but not till the full frontal is experienced.

I'll just toss two relatively normal/daily occurrence articles at you from Mish this evening - again YOU DO THE SIMPLE MATH.

Cali and Illinois are friggin broke PERIOD! Illinois Pension Fund $61 Billion Underwater; State Borrows Money For 2010 Contribution; California $20 Billion in the Hole Again Get it? that is a pension fund that is $61 BILLION under funded. Care to tell me where the thousands of public servants are going to maintain their promised and entrusted living from in retirement? Bueller? Bueller? Greece ain't shit compared to this mess.

Corruption? What corruption? Did you see any corruption? I didn't see any corruption Geithner and JPMorgan CEO Jamie Dimon's Parade of Lies Exposed What were those assets worth? Oh, OK. Just put them in that pile over there.

I'll be back in the am and on a normal schedule. Sorry for the break in the action. Take care.

Morning Post

Snow day for Shanky here in South Georgis. Waiting on 4-6" of some pow-pow to show up on my doorstep. I'll believe it when I see it. What's the forecast for Vancouver today? I feel sorry for those people up there, but still looking forward to the winter Olympics and Daytona this weekend.

China has raised rates again. The big news that pissed me off this am is that Toyota hired  regulators to help hault investigations. The corruption is rampant. They care more about corporate health and profits than our own well being. You would think they are getting better and might be learning something from all this mess. Apparently they don't give a flip about our well being. Money talks.

Markets are at a precarious spot. The EWT folks are looking for another sharp move south very soon to save their most recent counts. They may get it as the markets try to hold upper resistance lines with the futures down. The mixed indicators have some (especially me) feeling a little leery about forecasting any specific direction at this time. The 60m overbought, the dailys have been bottoming for sometime and the weeklys are still headed south. I tend to lean to what the dailys have going on for true direction.

SPX daily - Which TL will be the upper resistance for the next turn? Trying to crack the dashed red TL now that has been proven resistance. On the other hand the blue TL below has been proven support. A break either way could be significant. Looking at the indicators the RSI 5 cracked it's downtrend line. Every other indicator is oversold and ready to turn. My old reliable S Sto has a bull cross. On the other hand the 60m is overbought and the weeklys are still headed south. Barring some reversal in the dailys forcing them to embed and even given the bearish action in the futures, I am going to lean to some more upside before any major turn south (which is coming). Maybe this move at the open today cures the 30/60m problem or they become embedded overbought. I'd call it somewhere in the 2 wave and not in 3 yet.1 is over. Possibly some more choppy consolidation. The BBs are still way to wide for any super volatile moves. 1103 max upside at this time. The bears party will just have to wait I guess. IF I AM WRONG (and since I decided to make a bold call against the grain) I'd say recent support at 1044 and the green bear market TL will be in play pretty quickly.

Have a great weekend. I'll be rooting for the old man in the #5 car as always at Daytona (I like the 38 as well). GL!

Mini Rant Time! Let's Fight The Beast!

You all know my blood pressure rises and falls like the market. Not necessarily in tune with the market but in tune with the stupidity, audacity and incompetence of the actions of our fearless leaders. I watched a vid on Mish's site earlier today that got me thinking about where I stand on many issues and questioning where I have been. I do not know if you are a Democrat, republican, liberal, conservative or independent. Quite frankly I don't think it matters anymore. Sure we all have our pet peevs and individual beliefs, but time has come to set those aside. I believe we will all find out soon enough that the oysters in Apalachicola, watching American Idol or getting the best football recruiting class are not nearly as important as say ... eating.

The one enemy we all have in common is the beast that is our government. The beast is now out of control. This beast has morphed its self from three beats into one three headed mega beast. The banks, the Fed and the government are now all one functioning unit.Over time greed and power have permeated the system to a point that it has become a self serving unit that no longer serves the people. It serves the special interests that drive profits and wealth creation (think money, food and medicine). It serves a state that will use any means to (in the name of peace) ever expand its boundaries of control and influence. It now exists to become more powerful and control the world. The most successful country in the history of the world has now OD'd on it's own greed and can no longer function in any moral or respectable manner.

I am a firm believer that the system is truly off the tracks out of control. It was on two wheels in the "original" bubble burst in 2000. We had a chance to get all four wheels back on the tracks, but the banks had lost so much money Greenspan "had" to come to the rescue. This was the birth/morphing of the beast. Thus our fate was written in stone and the system went off of the tracks and is now (whether you know it or not) airborne off the side of the cliff.

The credit crisis has its roots in fraud and self servitude that go back to the early 90's (for this arguments sake and leaving the Creature from Jekyll Island out of this post. I support End the Fed). What they have created for their benefit has grown to be more important that the whole, than the nation. Why? Cause it now has the power not only to destroy the nation but every financial system in the world. The financial arm of the beast has taken control and will not yield it's power to anyone. We are getting the big fuck you right now from the financial warlords that own you and me and in a rather sneaky way have made us their slaves. Was this planned? Was it inevitable? Possibly, but that is another post. (Think Rome.)

Can we fight the beast? Absolutely. We are the life blood of the beast. We are the oxygen flowing thru the arteries. We are the spending and working (taxable) machine that gives the system power. Without blood the beast will die. We must now at this time find a common good. A common ground to stand on where we all as carbon based life forms come together and set aside our differences of opinion and belief. We must morph now (yes, like the Power Rangers did) into one great beast to stand against the system. We must begin to function as one. We must learn to communicate and effectively transfer information and knowledge to one another. Most importantly we must get off of our lazy asses and get involved to represent ourselves as a unit.

If our Armageddon is not written in stone already (which it may be, the desecration of the Constitution, fraud, lies and manipulation now seem to be daily events), we must fight as one unit and not in splinter groups managing various wars. Cutting off the beast's hand does no good. (figuratively speaking of course) We must aim for center of mass with all our firepower. Move your money was a great start and Tea Parties are good, but they will not be enough. I believe we the only way to defeat the beast will be some form of total revolution. A global financial revolt that literally stops the system and forces it to serve our interests.

Wait Shanky, total revolution? Yup, I think so. The only other HOPE is that we totally revamp Washington. Frank, Pelosi and the ruling elite must be removed. Strict regulation must be put in place. The Fed must be abolished. the Constitution must be restored to it's original form. All that and more must be fixed before we can even consider SS and health care issues. The system is out of control and run by the elite banksters and special interest groups that are drunk on power, greed and control. The literally don't give a shit about you or me. They are a parasite. They are the cancer.


To those of you questioning this (and think I'm a nut) just wait. The impending collapse of CRE, the further collapse of RE and the collapse of their last bastion, the markets, will send us over the edge. Impending higher taxes, further job layoffs, wealth destruction/transfer (to the banksters), pension/SS/medicare failures among many other factors will drive us over the edge.

We no longer have a iron in the fire yet we the people continue to be the lifeblood of the machine. Only we can stop it, and we must act as one for we are the machine. We have lost sight of this. We got caught up in their game of chasing the golden ring. We went to their casino and came out massively in debt. We have lost all concept of what it means to be an American. Our forefathers had to fight for everything. They built this country with their blood, sweat and tears. They fought and died for us to have the right to be free.We have not built jack shit. We have become some sort of parasite as well. It is time to wake up and fight. time to exercise the freedom and rights bestowed upon us. Some generations had it easier than others. It is our turn to make America great again.

It will take a total meltdown to remove the cancer. We will have to start all over again to get it right. BUT, will we (as we always do as a society) accept less for the sake of convenience? Let them have their power so we can have our big screens? do we concede for the sake of convenience?

Here is my question, do we want to slash a few arteries or do we go all out and starve the beast to a point of weakness that it will yield control just to say alive? I say we aim at center of mass and starve the beast.

The Hits Just Keep Comin

The budget announcement was not digested enough for me to write about it yesterday, but the paint is dry now. Other intriguing developments include the global meltdown countdown and other fraud related items that are the standard fare. Oh, did I mention we're fucked? Get your air sickness bags out again.

Two items you must read from ZH. First a mind blowing post , Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars. WTF do they think we are, stupid? (don't answer that). Get this, "This amounts to a total of $6.3 trillion in liabilities which should be counted toward the budget. And yet, oddly, the error-checker somehow made this rather justifiable omission: after all if we were to look at a number which written out looks as follows $6,264,000,000,000.00, we would also probably just avoid it - it is somewhat difficult to hide a number that big even in the 1,420 pages of the budget's appendix." Just read it. Friggin fantasy land man. I'm telling you, these people are not in touch with reality. I guess when you are playing with numbers that big (they are dwarfed but the invisible derivatives quadrillion mess). And this, "What we definitely know is that we now live in a system where delusion is the norm: we have an administration that willfully and consistently deludes its population from representing just how bad our economic debacle really is, and we have a population, that willfully and consistently is happy to accept lies and delusions from every media and administrative outlet, and in turn deludes the administration that it will pays it taxes, or not walk away from yet another underwater mortgage. Rinse. Repeat." Just read it and then pay close attention to the next doozy I offer.

If you thought that was bad, try this one on for size. The Next Leg Of The Housing Crisis In Five Simple Charts is a delightful expose on how there will be no avoidance of the impending housing implosion. "A bearish report by CIBC 1captures precisely the highly unstable system that U.S. housing has become, and deconstructs it along the five key axes of weakness which while individually may be controllable to a degree, combined represent a recipe for disaster. CIBC's main sources of concern arise from:" This report is really scary. OK, now put the last two posts together and .....5 ...4....3.....2.....1.....BOOM! Also see, Obama's Two-Faced Poisonous Plan Sure To Please No One

Greece is getting interesting. Bailout, no bailout, leave EU, not leave EU, get expelled from EU, find an additional $40 billion in debt you never told anyone about? Say what? Yeah, uh, hey boss, what about this $40B we go over here? You recon we should tell everyone about that as well? Greece "Discovers" $40 Billion Of Previously Unknown Debt, CDS Gaps. Did we mention that Dubai is back under the gun as well? 


Sorry for the overly zealous ZH regurgitation but they happen to be THE ONLY SOURCE that makes this information available to the masses in a timely and informative manner. What else is on the web today? 


Since we are discussing housing collapses and other countries in trouble, this next story fits right in. Pool of Greater Housing Fools in Australia Finally Runs Out; OZ Dollar, Where to From Here? Surprise! "Today the Reserve Bank of Australia (RBA) unexpectedly held interest rates at 3.75%. No doubt this was in fear of the Australia's enormous housing bubble that exceeds the height of the bubble that long ago burst in the US. 20 economists predicted the RBA would hike. Not a single one predicted anything else." They have fed on China for so long and lived in disbelief that "this" could happen to them. Well, the insanity (definition - expecting a different result) award goes to Australia (followed closely by China), You just gotta shake your head.

You know I like to speculate about market maipulation and so does Denninger. Karl asks a valid question in Where Did They Get The Money? (BlackRock)? This one is quite funny when you think about it. "The underlying question remains - if and when something goes wrong, what does Blackrock have available to them to deal with it when they're managing an asset base larger than that of The Federal Reserve??" Just read it. 

 We'll end with this one from Ritholtz at The Big Picture - Botching Financial Reform "I understand that positioning for the next election, partisan politics and lobbying money are a deadly combination to any possible reform. But its so obvious to me watching these folks push and shove good ideas away that they: 1) are utterly clueless how all of this (credit crisis, recession, housing bust) happened; b) have absolutely no idea how to fix any of it; iii) are primarily concerned with getting re-elected." BINGO. The order of being saved: 1)TBTF, 2) be a representative, 3) be a GSE, 4) ...there is not a 4.

I agree with what you are thinking right now. How the hell? Right? It is mind boggling. Three points that I harp on a lot 1) we are ignorant and 2) they only care about getting reelected and 3) the market is rigged were covered nicely tonight. As I like to say, I don't make this shit up and neither do the blogs I read. It is truly amazing what the masters of fantasy believe. Sadly reality will slap everyone in the face eventually and the only things that won't change will the 1) we are ignorant and 2) they only care about getting reelected and 3) the market is rigged.

Have a great evening! 

At Some Point.....

At some point the lying, cheating and stealing will have to stop, but it wont be this week (or next, or....). So, any good news? Not unless your favorite college team stole a recruit from a hated rival.

Let's get on with it.

The first order of business today is The Treasury Is Soliciting Your Feedback Regarding The Proposed Annuitization Of 401(k). Yes, step two is happening and rather quickly. I think they are pretty serious about this move. They want to tap your retirement savings to save the nation (whether you like it or not). The full letter is in the ZH post. Please use the email wisely and forward it to everyone one of your contacts. "For readers who feel compelled to respond to this increasignly socialistic and ludicrous development, we suggest you voice your anger at the following address:

• e-ORI@dol.gov. Include RIN 1210-AB33 in the subject line of the message

Mish clears up the never ending employment question in Massive Layoffs Coming in NYC, Nevada, California, Colorado, Arizona, Everywhere. The double dip is coming and you will like it. Assume the position. Thank you sir, may I have another! This one is a must read as the employment issues that hit the state's proverbial fan this year across the country will be astounding. "Here's a sobering thought for all the stock market bulls: The best of this "recovery" is now likely behind us, the official unemployment rate is still over 10%, and massive layoffs are on the horizon for city and state workers across the country."

Did you know that SIGTARP Probing Insider Trading? Really? Well that is better than the spineless SEC or FINRA have done. "The Financial Times appears to have broken the story that the Office of the Special Inspector General is investigating reports of insider trading in connection with the TARP. And what makes this probe potentially serious (aside from the brazenness of it) is that the suspects include executives as well as foot soldiers:" I don't believe it for one minute. Who would insinuate the banksters would do such a thing? I mean, like, really now.

The biggest tell all along to me has been the banks less than stellar effort to loan funds to consumers and small business. They know what is coming. They know where the real problems lie. They know the deal. In Fed: Banks Cease Tightening Standards, Loan Demand Weakens Further you find out now that even the consumer sees no need to borrow at this point. We're all sick of it and don't want any more. Like gorging at the all you can eat catfish buffet for 4 years, you kind of lose your taste for the stuff. Maybe, the public is catching on (that or they are tired of paying 30% on their CC balances). 


The most interesting thing I read today (and was going to do a full post/rant on the subject) was Poll: Americans pretty clueless about politics, world  I have been barking a lot over the past several months about how stupid the average American is and how we don't give a damn about anything other than our big screens and Cheetos. This post proves it.  In a poll run by The Pew Research Center We learn just how ignorant we as a country are to some pretty basic topics. I encourage you to take the poll, cause it ain't all that hard. Most answers are either obvious or can be narrowed to 50/50 very easily. I'm  telling you, we are a large part of the problem. We are lazy and just want to roll along and not have to worry about shit "we have enough problems as it is". LOL. We are so out of the loop clueless it is astounding. This translates (in a negative manner) to our need/desire for and active populace to promote positive CHANGE. I just hope we are not so far out of it that we can't rise up to regain this country from the terrorist hijackers that have control of it at this point. 


Thanks for the read and have a great evening. 

Newsworthy Items From Today

I suppose the S&P climbed a little more than 5 points on the good news that the one month treasury yield turned negative, or was it that the new home sales declined sharply in December, or was it that the FOMC is not gonna raise rates cause things are not as rosy as expected, or was it cause Geitner an Paulson testified that neither knew shit about the AIG deal, or was it the release of the AIG schedule A, or the suspension of MM withdrawals, or O's speech tonight? I don't know what it was. I do know that the good news is that the markets will rally on any news is BACK! Wooo Hoooo! What a great day!

WTF?

New Home Sales Decline Sharply in December was the first thing out of the shoot this morning. "The Census Bureau reports New Home Sales in December were at a seasonally adjusted annual rate (SAAR) of 342 thousand. This is a sharp decrease from the revised rate of 370 thousand in November (revised from 355 thousand)." Everyone knows that demand had been pulled forward thru "stimulus" packages designed to kick start the home buying spree that will bring us out of this melee. Wrong! Guess again Mr. Smarty Pants. You can force a horse to water, but if he does not have a job he can't pay for a friggin house (especially one he can't get a loan to pay with!) Add to this post DataQuick on California: Record Notices of Default filed in 2009.

"NO, you can not have YOUR money, sorry." Yup, that is what they are going to say in the next crash when you show up at the teller and want to make a withdrawal. No, I'm not kidding. Suspending Money Market Redemptions Is Now Legal; SEC Approves New Money Market Regulation In 4-1 Vote Welcome to Pottersville! I guess it is not such A Wonderful Life. so instead of giving you 97 cents on the dollar in a run on the banks, save your gas money. IMO, we all should have seen this one coming. IMO, this is a HUGE tell that they know some sort of systemic event is coming. What other reason would they have to in act this? Uh...just in case? This is really fucked up.

As only Denninger provides FOMC Statement 1/27 In English The important part is things are not getting better and they will leave rates right where they are for some time (the banks have not made enough money yet). 

Oregon's Death Spiral; Business Owners Say "I'm moving out" This is just stupid, but may be a sign of things to come. Overtaxing the rich and hitting their bonuses hard. Face it. I believe it is coming for all of us. Do you care to explain how we will pay off the deficit (that we know of)? Wake up if you think there is any other way to get money for programs other than it coming out of our pockets. They may be biting the bullet early ahead of the curve. Yes, I agree that cutting waste is priority number one before raising taxes, but that will cost jobs immediately - whether directly or indirectly. Jobs cost revenues. Thus the rock and hard place issue arises. Soon you will see state privatization. We'll be paring off against each other. Just wait - you heard it here first. 

Do you trust anything you hear out of China? I don't. Here is an enlightening look into what may be the truth on their economy and what's been going on over there. On China’s Overinvestment, LOL and you thought we had a bubble. Our building are sitting empty because our businesses have gone out of business. Their are empty because they built them, just to build them. Look out when they implode. They will be coming after their treasury holdings and that will then be the end of us.

Are there signs of things getting toppy in the market (other than the obvious)? Sure, try Margin Debt Increases By 30% In 2009, Currently At $231 Billion  "The NYSE's most recent disclosure of margin debt indicates a surge in trading in margin accounts, where total debt shot up to $231 billion as of December, up $58 billion from February or 30%, and also an increase of 4.5% from November. This is an indication that "animal spirits" have surged by about the same amount as the broader market since the market lows: in other words, speculation is now rampant, and, to make things even better, is very much on margin, or leveraged. And we all know what happens when levered speculative bets turn out not quite as expected. For those who may be confused, Dow Jones provides a useful primer of how a margin call feedback loop tend to make things ugly, fast." 

I will not listen to O tonight. Honestly, I can't stand to see his face or hear his voice. You know how you feel about someone that has lied to you constantly? Yeah, that feeling. LOL, and he is president? What a sad state of affairs we are in. I'll catch the highlights/low lights in the am on the news.

GL out there. I'm sure the PPT will be out in force in the am to celebrate our fearless leader's SOTU speech and the glorious recovery we are experiencing. God Bless America!

Freedom Watch Judge Napolitano with Gerald Celente - A freak show, socialism, fraud and war - OH MY!