Afternoon Delight 05/23/12 - Nothing Has Changed

Look, it is so basic. If you do not get it by now you are a lost soul and need to get your head examined. It is all bout easing and nothing else. The markets are rigged and respond like Pavlov's dog to the slightest mention of the Fed printing to control market price movement. 

In the commentary today I posted, "Who does this sound like?"

"With Europe hitting the skids, EURUSD at multi-year lows, and the US equity market down a whopping (and terrifying) 9% from its March highs, it seems the market remains increasingly hopeful that this time will not be different in that the Central Banks of the world will print and save us once more." QE's Long Shadow Is Getting Shorter | ZeroHedge 

Now STB this morning, "There is really not much to say as the markets hang in limbo surrounded by bad news already having fallen just shy of 10% to the 38% retracement of the climb off the 1100 close in October. Twist is still on and ends next month. The FB IPO is done. Everyone appears to be waiting on the Fed and ECB to make a move or signal there is more easing to come. Why else would the markets have rallied the past few days?"

Further in that same post TD states, "we estimate (based on QE1 and QE2) that the S&P could trade down to 1100-1150 before we see Ben step in to save the world" which is a bit more pessimistic than the 1170 worst case target I have been spewing since before the 1420 top. Recently I posted that I was looking for a manufactured crash since almost this time last summer to allow for the easing call to be a layup. I got a crash and easing, but this time it appears more are coming around to my way of thinking (and beginning to use the term 'exogenous event' we coined years ago). 

Today's late price rally was nothing but rumor based BS. Something about a FDIC like insurance program for the EU. LOL, who's gonna pay the insurance? the insolvent governments or the money printing ECB? LMAO. That's funny. As Reality Recedes, Rumor Rampage Returns | ZeroHedge. What's sad is that rumors (and BS government data) are the new reality and we must deal with them as proven over the past two years. You get some fear and an oversold market and the rumors get really ripe, and thus you get a roughly 190 point pop in the DOW to close down - get this - 6.66 today. 

To understand the major issues on the table in the EU right now you should read Markets slump ahead of key EU summit - Telegraph "European markets fell heavily on Wednesday morning as investors doubted an EU summit would lead to a solution of the eurozone's problems." Since the elections changed the landscape in France and Greece the strategy that the troika followed for the past several years has been turned upside down. 

To give you a quick reminder of how bad things are on the other side of the globe ,"The ratings agency Fitch on Tuesday lowered its assessment of Japan’s sovereign credit to A+, an investment grade just above the likes of Spain and Italy, and criticized Tokyo for not doing more to pare down its burgeoning debt. 

Japan’s public debt will hit almost 240 percent of its gross domestic product by the end of the year, Fitch warned. Mish's Global Economic Trend Analysis: Japanese Debt Downgraded by Fitch; No Urgency for Japan (Until Sudden Panic Hits). Did you catch that 240% number? And no one is worried? Riiiight. 

Speaking of issues in Japan, you must bring up the unthinkable (which has proven to become thinkable). To those AFL long holders, you have been warned now about the debt and this issue for quite some time, "Chris Canine – who has 15 years experience as a health physics technician, chemist and radiation safety instructor – told Energy News that if number 4 reactor fuel pool at Fukushima collapses, Japan will be evacuated. Fukushima: If Number 4 Collapses, Japan Will Be Evacuated Alex Jones' Infowars. Think this can't happen? Think again, this is far worse than Chernobyl that has an evacuation zone that would, if in Japan, have all 40 million in the Tokyo area evacuated by now if the prevailing wind was not directly East all the time. (Just scratching the surface here - it really is worse than this)

SPX 60m - Is that blue wedge right? Down for E? I'm not sure about the possible divergences in the indicators since a lower low was not achieved, but oversold it is. The count would be for a move up here before further weakness. My upside max right now is near 1370 with a stop at my 1341 level being the first major resistance. 

GL and GB!

Afternoon Delight 04/19/12 - One Simple Picture

OK, I saw this and that was it. This is all you need to see today. I hope this gets into your head - A picture tells several hundred trillion words (or more) -

"A month ago we presented the latest derivatives update from the OCC, according to which the Top 5 US banks held 95.7%, or $221 trillion of the entire US derivative universe (which in turn is just a modest portion of the entire $707 trillion in global derivatives as of June 30, 2011). And while the numbers of all this credit money, because that's what it is, and the variation margin associated with all these trillions in bets is all too real, appeared impressive on paper, they did not do this story enough service. So to present, visually this time, the US derivatives problem, we go to our friends from Demonocracy, who put the $229 trillion derivative 'issue' in its proper context. For those curious what a paper equivalent of bailing out the US derivatives market would look like, now you know." The Mother Of All Infographics: Visualizing America's Derivatives Universe | ZeroHedge

Click on this link for the best view - Click it!

Derivatives - The Unregulated Global Casino for Banks

Afternoon Delight 03/28/12 - Your Retirement Funds Will Be Confiscated Eventually

How or when this global financial destruction all ends is anyone's guess. The spending supporting the dead global Ponzi is out of control and without CTRL+P and all the shenanigans of 2008 and 09 the system would have imploded long ago and we'd probably be on the road to recovery now. That would not have worked or served the globalists too well as the wrong president was in place and the police state was not fully set up to function.

The system is going to implode and you need to know and be sure of that. It is just a question of how long they can keep it afloat. Below is just one of the scenarios that I like to think will play out in the next year or so. If you have any interest in your retirement plan being confiscated by the government I suggest you read on.

"The National Debt has now increased more during President Obama's three years and two months in office than it did during 8 years of the George W. Bush presidency." National Debt has increased more under Obama than under Bush - Political Hotsheet - CBS News. See the chart in the post. Pictures can assist in allowing your mind's eye to wrap around an issue better than words sometimes. This debt is only going to expand and rapidly as the recent budget submissions indicate, they plan on cutting nothing.

If you have never seen the U.S. National Debt Clock : Real Time check it out. My favorite figure in the chart is not the debt in the top left corner, but the $118 Trillion in UNFUNDED US Debt at the bottom of the page. Did you catch that? Wrap your head around the $118 trillion in unfunded liabilities.

Afternoon Delight 11/10/11 - Just Numb

No comments from me today. I'm pretty much numb. Numb from the 1000th stick save. Numb from the "experts" that believe they can solve a debt crisis with more debt. Numb from the fraud and corruption that are rampant throughout the global system. Numb from the constitutional abuse and loss of natural freedoms as the police state expands. Numb from the reality that is Pen State. What have we become? Why have we allowed this to happen? Why are we doing nothing to stop it, any of it?

Market News -

"And now they are refusing to even acknowledge this transaction, and apparently the management of MF Global is not yet talking. Why? Because it was an insider deal, and they don't want to give back the stolen money." Jesse's Café Américain: MF Global's Customer Assets - STOLEN - And Nothing You Hold In This System Is Safe

Hey, if you don't want to hear it from me, then why not from one of the most conservative and respected money men of all time? Rogers: “100% Chance Of Crisis Worse Than 2008,” Italy Implodes Alex Jones' Infowars.

Begging behooves them. World has Major Funding Gap; IMF Begs Russia and China for Money; Italy and Greece Demand Deposits Collapse; Run on Greek Banks? Mish's Global Economic Trend Analysis

Afternoon Delight 11/07/11

It is only a matter of time. Can the bears remain solvent?

Worst Case Scenario - 

I was hoping they would be putting a worst case scenario together - looks like they got one. OK, now if they have gone to these lengths what does that tell you? And now I ask, do you have a worst case scenario plan in place?

"2) the German taxpayer became the Eurozone's "de facto bailout provider."  Mayer proposes a "Chapter 11 for Eurozone countries," which would place troubled members under economic supervision until they put their house in order." Wikileaks Exposes German Preparations For "A Eurozone Chapter 11" | ZeroHedge

Meanwhile "Global Bailout Fallback Plan B" China Is Pumping 1 Trillion RMB Into Its Banks | ZeroHedge

"As the European debt crisis edges closer to a break up of the euro zone, financial regulators may be reaching for emergency manuals that have gathered little dust since the last crisis." Analysis: U.S. bailout manuals handy if Europe crisis widens | Reuters