I Have Had Enough Of This Crap!

Screw this. Let me get this clear, I am not some permabear that has been burnt to a crisp nor some scorned bull that did not partake at the trough 'o plenty. Those that read the blog know I like to play the daily SPX indicators up and down and have for quite some time. I am a pissed off American watching the Fed, treasury, congress, the administration, the banksters and Wall Street piss away our country's future while they gang rape us sans KY and screw the Constitution in the process.

When HuffPo starts making sense to this former republican, you know things are getting screwy. Arinna penned Why It's Wrong When Wrongdoers Are Allowed to Admit No Wrongdoing which blasts the justice/regulatory system. "Of course, it's not just our "too big to fail" banks that have been allowed to do wrong without having to admit to any wrongdoing. The pharmaceutical industry and health insurance companies have been doing the "pay the fine but admit nothing" dance for years -- chalking up the millions (and sometimes billions) they have been fined as the cost of doing business." This needed to end years ago, but only now is some sort of conversation beginning to correct the problem. Well, if history is any indicator, either nothing will ever get done or some poor schmuck company will be sacrificed (bet they are not in the GS club).

Zero Hedge weighs in with The Cost Of The 60% Market Move; The Benefits Of Free Liquidity. "There is now no question that the sole, undisputed factor driving credit and equity markets is the dollar destructive collusion between the Fed and the major global central banks. As long as the Fed is dead set on inflation, and is willing to throw trillions of free liquidity at any problematic flare up, and is happy to keep interest rates at 0%, liquidity-addicted equities will likely push higher until such time that the incremental hopium "hit" does nothing, and markets overdose, ending up not just in the critical condition reminiscent of fall 2008, but outright death." The destruction of America's wealth is under way. Well, let me correct that, the destruction of your wealth and mine is almost complete. They will have absorbed every last dollar and committed us to taxation purgatory to support their looting. This will not sit well with the sheeple, but unfortunately it will be too late when they finally figure out what has happened.

Denninger bangs on the carry trade in So It's Official: IMF / Carry Trades. You see this is the rat spinning the wheel driving the engine. Karl warns, "The only remaining question is whether these "carry trades" and the dollar depreciation that they cause will continue to levitate the equity markets. Friday morning there was a stunning correlation between the moves in the dollar and the S&P 500 - but then suddenly about 11:00 AM Central time, it broke down. Many equity and index futures traders have been essentially using the dollar as their "roadmap" for the last several months - but this is a correlation that only works so long as the decline is both orderly and perceived to continue to be so. If and when that perception changes the correlation will break with extremely violent results." So you just follow the dollar around. You permabears looking for a top only need to find the bottom in the dollar (if one exists).

Mish had so many good posts it was hard to choose from them all. I went with Financial Transaction Taxes Would Cause Stock Market Crash. (wonder why - LOL) WTF are these assholes thinking about? Oh yeah, I have kind of covered in the previous paragraphs some of the financial issues facing the nation and how taxation (MASSIVE AMOUNTS OF TAXATION) is a necessary evil and they are working hard on figuring out how to get the money out of our pockets to pay for this fiasco. Wouldn't it be nice if they were this aggressive at fixing problems? "Proposed as a way to soak the rich while decreasing volatility, this bill would soak all stock holders and increase volatility. The markets will crash if this bill passes. Of course Congress is doing so many other stupid things, the market is likely to crash anyway."

PragCap brings us V-SHAPED RECOVERY? HOUSING BOTTOM? HUSSMAN ISN’T BUYING IT. "Two great pieces this weekend from John Hussman and William Hester at Hussman Funds. I would highly encourage readers to take a moment to read both pieces in their entirety. John Hussman’s piece attacks a topic we recently covered – the coming wave of mortgage resets that will create further headwinds for housing. Hester’s piece shows how the leading indicators of the economy are far from justifying the v-shaped recovery theory – a view the ECRI would vehemently disagree with. With large secular risks still at play and valuations stretched Hussman’s funds remain largely hedged as they continue to focus on downside risk." I have not read them both, but the Hussman's is really good. (But don't we all already know that the CRE and further RE crashes are coming (this is soooo 20007, except we see and know it is coming but don't give a shit).

I could go on and on, but you all know the drill. Wash, rinse, repeat (rob, lie, cheat) and on and on it goes. I have left out topics such as inflation, cap and tax and health care tonight cause the above is enough.

I plan on posting on UNG, Gold, the dollar and some other things soon. Remember the morning post in the am. Thanks for your support and good luck out there.

Mind Boggling News Events Continue To Boggle The Mind

Let's start with the HufPo's Priceless: How The Federal Reserve Bought The Economics Profession. This one will blow your mind and is a must read. "Even the late Milton Friedman, whose monetary economic theories heavily influenced Greenspan, was concerned about the stifled nature of the debate. Friedman, in a 1993 letter to Auerbach that the author quotes in his book, argued that the Fed practice was harming objectivity: "I cannot disagree with you that having something like 500 economists is extremely unhealthy. As you say, it is not conducive to independent, objective research. You and I know there has been censorship of the material published. Equally important, the location of the economists in the Federal Reserve has had a significant influence on the kind of research they do, biasing that research toward noncontroversial technical papers on method as opposed to substantive papers on policy and results," Friedman wrote." ROF LMAO - they own 'em ALL. No one on the payroll or with any thought of advancing in the field will ever speak against them. the funniest part, how the 220 PHD's on staff all missed this one coming. Simply mind boggling.

The FT brings us, Court rejects SEC settlement with BofA Judge Rakoff holds serve and sends 'em to court in February of 2010. "In Monday’s order, Mr Rakoff wrote that the settlement “does not comport with the most elementary notions of justice and morality, in that it proposes that the shareholders who were the victims of the bank’s alleged misconduct now pay the penalty for that misconduct”." What is mind boggling about this one is that justice may actually be served and may be gaining momentum.


Calculated risk has Failed Banks and the Deposit Insurance Fund. this is a real gem that hits home to me. "The cumulative estimated losses for the DIF, since early 2007, are now over $42.5 billion.Regulators closed three more banks on Friday, and that brings the total FDIC insured bank failures to 92 in 2009. At the recent pace, regulators will probably close around 150 banks this year - the most since 1992." That is a mind boggling $42.5 billion they are now in the hole and possibly hundreds or thousands of more banks to fail? Heloooo?

And from Pragcap.com - DAVID TICE: THE S&P IS GOING BELOW 400 You know I could not resist this one. "David Tice is undeterred by the 50% rally in stocks. In his latest interview he says the market will fall over 60%." There is a link to the full interview there. Nice to hear one realist out there with a mind boggling prediction the pundits at CNBS can not fatham.

And last but not least our friends at Zero Hedge dug this up at Bloomberg: China Probes ‘Unfair Trade’ in U.S. Chicken and Auto Products. Mind boggling to think that China is complaining about fair trade practices. "Chinese industries complain that they’re being hurt by “unfair trade practices,” the nation’s Ministry of Commerce said on its Web site yesterday. The dumping investigation relates to poultry alone, a spokesman said in Beijing today. The ministry didn’t specify the value of imports of the products."

GL trading.