Open Weekend Post

You know the drill - Share the love and the knowledge.

STB had a great week on blogger - so good that we're gonna stay here for a while. Apparently you all like this place quite a bit. I do as well. Blogger does not support some of the stuff I need, but it is better in other ways.

Welcome to all the lurkers that came out this week in record numbers (another plus for blogger). you all did great with the links and maket info.

Make sure you voice your opinion in the new poll to the right, but you need to read this first - Forget Operation Twist: Rosenberg Says Bernanke Will Shock Everyone With What Is About To Come | ZeroHedge. And of course the euro version of the super bailout ensuring every investor all is well - It's A Bird, It's A Plane, No It's SUPEREFSF! | ZeroHedge 

You see - Hakuna Matata - no worries mate!

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!

Morning Post

From Websters -

Main Entry: lev·i·ta·tion 

Pronunciation: \ˌle-və-ˈtā-shən\

Function: noun

Date: 1668

: the act or process of levitating; especially : the rising or lifting of a person or thing by means held to be supernatural.

Nuff said.

Economic Calendar - 

Earnings Calendar -

For those of you in total disbelief, don't be. The top was set. Even the weeklys had confirmed what I though was a major turn, but "they" reversed everything mid stream (ahh, the power of liquidity and QE). I had speculated for some time that they were just allowing the shorts to come on board again so they could squeeze some more juice out of them. What is it they say about irrational markets and your solvency? Get used to it if you are not already.

SPX 60m - Same chart as late yesterday's post. The triangles. Are we experiencing a throw over that will last a few days? Is this something more (as I have speculated this would possibly be a 5.3.5)? I'm sticking with throw over of the triangle for now. A crack of 1132 would be pretty strong.

EUR/USD daily - For those of you short, that is a very oversold pair sitting on it's 61.8% retracement of the move off of the March low. The weekly indicators are bottoming as well. If there is any sort of short covering this thing will explode. Now, I think the shorts are right, but they may get punished once or twice in the short term. We all know every country wants to devalue at this point. The question becomes will the rush for the exits be equitable and orderly?

Not sure how positively the markets will react to worse than expected jobs numbers this week. I'm on the sidelines not playing with any of this mess. This being a throw over or ending the first leg of the next 5 up, I'll wait for a better trend. Divergences may get screwed up this am and a break of 1132 may bring more upside than the bears want to see. If my calculations are right (and this is a final 5 up) it measures out to a pretty double top. I'm gonna break out the weekly SPX chart tomorrow and show you where the ultimate divergence marking the top may come. I think it is being set on this move up. This will be the last chance to exit to LT hold positions. Here is a good vid from Marketclub confirming my thoughts.

GL!

Friendly reminder - German ProSieben TV Channel Finds 500 Gram Tungsten Bar At W.C.Heraeus Gold Foundry With Bank Origin - I suggest that you scroll way down in the comments and read about Chinatungsten Online. Not good. 

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.

60m SPX And VIX Ending Triangles

Sorry I missed this morning. I'm not feeling all that well and slept in.

Here is a quick post that I will elaborate more on in the Morning Post tomorrow. Simple triangle formations ending on the SPX and VIX. Is this the end of 2 of 1 of 3 and we have a pretty strong 3rd wave down staring us in the face? All measurements at this time call for an initial drop to end near the last bottom at 1044.

SPX 60m - I am throwing out an expanded chart with the last triangle call that worked so well (that so few believed). That one took forever to happen as the throw over lasted almost three weeks. With this smaller triangle, I do not expect anything as drawn out, but am cautioning about the possibility of a throw over. I have not given up on my 5.3.5 fantasy call at this time (ending 1 of 5 here), but the indicators are saying this could be the top of this move (never discount the power of manipulation!). The daily's are toppy setting possible divergences, but they still have some room to run if they want.

VIX 60m -

GL!

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!

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!

Confusion Reigns

I'm not sure which way is up anymore. As global turmoil and confusion reigns down on all of us, you have to wonder how they will wiggle their way out of this mess and find some reason to pump the markets full of eternal optimism that the reflation trade will work, the recession is over and all is well. You knew we'd be the ones on the white horse to save the day with the Greece issue (American taxpayer via the IMF). I guess we'll be financing the other PIIGS in the months to come. All is well. You should be superoverallocated in equities. Have no fear the great backstop is here.

Looking behind the curtain you will notice that our 30 year auctions are not doing so hot. Even Santelli said it failed although you would not know this by looking at the numbers. It all sold right? Not so fast my friend. In Putting Today's Record 30 Year Direct Take Down In Perspective ZH points out that, "Today, we saw a record explosion in the Direct take down for the longest bond purchasable. Just who are the Direct bidders? Whose orders are they executing? Are these merely a proxy for China or the Fed? What happens when that "mysterious" demand disappears? Nobody knows. Which is why Rick Santelli called this a failed auction." Funding our own debt is like a drug dealer dipping into his own stash. This is not a good combination, especially when the rate of the take down is increasing. Monetization is bad. Denninger echoes the sentiment in 30 Year Auction: A Solid "F".

Mish brings the swift changes to corporate bond yields to the table in Corporate Bond Yields Offer Hint Party Is Over. "I do not think that treasury yields break to the upside. However, they could. And if they do alongside corporate bond yields, there is a distinct possibility, and one that I have pointed out before, that there may be no places to hide in 2010 other than perhaps the much despised US dollar." You see they held rates artificially low as long as they could to make the market the only game in town. When the mass exit from the bond market commences, look out below. (I will take this moment to warn you about the possibilities of what I see as the many dangers in the muni markets as well.)

Denninger continues harping on the MTM issues for a good reason in Whistling Past The Graveyard We Be....., no one is listening or seems to care that assets held on balance sheets are marked to the most bogus amounts they can imagine. You would know why this is legal (cause the O allows it) if you read Yes, America is Still in an Official State of Emergency from my post the other night. Karl has, "Even companies that are allegedly "Strong" and have "No material exposure" are doing tricky things - witness CISCO's recent disclosure that it is funding customer financing at below-market interest rates (zero!) with off-balance sheet vehicles." This is the first I heard of CISCO's fiasco and am quite pleased to hear the sham has spread beyond the financials. 


Ed Harrison with Credit Writedowns has penned Chandler: Uncertainty and contagion at work with Greece. Ed comes at the crisis from a good angle allowing you to see the full contagion that exists no matter how you try to fix the issue. "Now, if you were a Greek resident, you have to feel a bit panicky about the safety of your hard-earned savings given this scenario (see Guardian article).  So, we could easily see the sovereign debt crisis spill over into bank runs. And if Greek banks implode, there is going to be a knock-on effect for other weak banking sectors like the Austrian or Irish. This is how contagion works." The maggots will consume the body from inside out and you will not see the damage till it is to late.

Investor psychology has been rapidly gaining ground as a scientific way to predict market moves. We are predictable and like to herd. ZH has a lengthly read on this subject that is well worth the read. In Just How Ugly Is The Sovereign Default Truth? How Self Delusions Prevent Recognition Of Reality you get "At that point the financial oligarchy will very much wish the Methadone had been administered sooner (roughly about March 2009, when we first suggested it). It will however be far too late, and the decades of self delusion will finally end." It is truly only a matter of time.


Sorry for missing this mornings post. 

GL out there and have a great evening. 

Red Flags And A Yoda Sighting

The volleyball that is Greece was hit over the net several times today and no one scored a point. With all the secret meetings in Canada and Australia going on and Germany's being eliminated (at this time) from the 'I don't want to own Greece lotto' one has to wonder just what the banksters and global financial elite are cooking up this time?

Zero Hedge has "Greece Must Solve It's Own Budget Problems" That stops one step shy of Germany officially saying no (which I believe they did earlier in the day). No one wants this hot potato. The idea that a 'Red Flag' was thrown up to see the markets reactions to various scenarios/rumors is an interesting thought. I have whipped on this horse enough this week. Bottom line is if they get bailed out, whomever helps them only weakens their own already frail financial standing. On the other hand, the first domino to fall starts the chain. Do or die?

Throw into the mix Iran has a "surprise" for us to be announced on 2/11 and you may have enough disinfo out there to actually fool somebody! Israel wants more sanctions, Iran is gonna clog up shipping lanes, China is gonna sell treasuries to support a military build up. we're going to take over Iran and cripple China's oil supply (OK, I can go for that one), We have missiles aimed at Russia (I can go for that too). Actually it sounds like we are moving in for checkmate. The global tensions are building like two tectonic plates in the ring of fire. It should only be a matter of time before some slippage and the earthquake occurs.

I don't see Barney Frank trying to outlaw shorting against the PIIGS? Maybe the people at Overstock.com might have something to say about this strategy?

OK, I veered off course today in my web search ....


Rasmussen Reports has 63% Say Better for Country If Most of Congress Not Reelected. Ya think we've had enough? "A new Rasmussen Reports national telephone survey finds that 63% of likely voters believe, generally speaking, that it would be better for the country if most incumbents in Congress were defeated this November. Just 19% disagree and say it would be better if most congressional incumbents were reelected. Another 18% aren’t sure." If you are among the 37% that disagree or are not sure, please leave the country on a one way flight. Maybe you would like to move to China or Greece? The other links in their post are wonderful as well. Please click around and get a pulse on what the populace is thinking. It ain't good.

The most outrageous thing I have seen in some time comes from The Raw Story - No joke: South Carolina now requires ’subversives’ to register. This is funny as hell if you have not seen it. Dig this, "Five-dollar registration fee for persons planning to overthrow US government. Terrorists who want to overthrow the United States government must now register with South Carolina's Secretary of State and declare their intentions -- or face a $25,000 fine and up to 10 years in prison." LMAO - did you have to read that twice? If you are planning on overthrowing the government you need to pay $5 and go register with the government or face severe penalties and jail time. Oh lord us poor southerners can't help but to punch ourselves in the eye every now and then. And, NO, we really don't have anything better to do down here.

Must see - Apparently Yoda has aged, gotten a tan and got arrested in January on domestic assault charges. His attempt to hide from The Stith in a Utah jail has been foiled.

Have a good evening.

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.