Afternoon Delight 11/30/11 - Rigged

I'm not sure where to start tonight. Bottom line is the system has come unglued and is unraveling at a pace that even the central planners can't keep up with anymore. Whatever topic you want to address debt, war, corruption or a plethora of other potentially systemic issues they are all getting worse. And the naysayers come out of the closet and say Shanky is a nut, don't listen, as proof the DOW was up over 400 today and 800 points over the last three. Be my guest to take that road. I'll firmly stay on the one less traveled.

Last night in the AD STB wrote about "Living on the Edge". The markets and governments pressing the limits of the system. Well apparently the system or a bank had been pressed beyond the limit and the central planners had to move directly into rescue mode to avoid another LEH incident (which apparently was known to have been coming).

I remind you to not get lost in the illusion that the markets are creating that all is well and you need to remain in full risk on mode. When you add up the pieces below you will find that we came within literally hours of massive systemic failure and only the stick save action of the central planners that saved the crash caused the ramp this week. That's right, from the brink of total disaster to adding 800 DOW points and NOTHING has been fixed or solved (nor will it ever be).

Morning Post 11/30/11, SPX

What did you expect other than Santa to show up after all the news that had been flowing and a BAC downgrade? Stupid rabbit, bailouts are for banks! I guess the AD last night "Livin on the Edge" was spot on, cause they sho as hell came to the rescue overnight.

Lunacy -

And does anyone care to explain the 10% pop in BAC after a downgrade along with 36 of its brethren? Standard And Poors Reviews 37 Global Banks, Downgrades Bulk - Full List Attached | ZeroHedge

A 50 point move OVERNIGHT in the minis from 1183 low (where have I heard that number before? ON THE NUMBER!) to 1235 (1236 is second resistance and 1230 IHnS target we were discussing this week, the ABC scenario we have been discussing)? The technical set up was leading to a major move south. They had to make a move that just flat out blew thru major 1218 resistance. I am now eyeballing another potential IHnS that targets 1253. Bears be warned, moves like this are what got October kicked off, and we all know how corrupt the entire system is.

This is raw insanity, cause once again nothing has changed structurally or fundamentally. This is a stop gap measure that generates near term appearance that all is well printing more money and once again heading further in the wrong direction. My November swoon continuing into December was coming in a big way and this emergency action is the proof. "This means that the global situation is far, far more dire than the talking heads have said." Here Comes The Global, US-Funded Liquidity Bail Out | ZeroHedge.

Afternoon Delight 11/29/11 - Livin On the Edge

Sorry if these get a bit long, but they remain vitally important and are always fresh. Please take the time to read thru the post and click thru to learn more. I also ask that you share these with friends and family that need to be warned of the coming situation.

If there is one thing that should scare the shit out of you, it is the MF Global theft of over a billion dollars of cash from brokerage accounts just like the ones you have now. Where is all of this money and why has it not been returned to the rightful owners? Well after a MONTH of investigation apparently no one knows where all that money went. Now that is some real freaky scary shit right there.

For months we've been in a Ferrari burning it down the Italian mountainside testing the limits of the suspension and tires. Well, now those tires are getting worn and we've entered a particularly dangerous stretch of road near the mountain tops where no guard rails exist on the ever increasing hairpin turns. With each turn there is a little more fishtail and slide and it now appears one if not two tires are leaving the asphalt and getting into the slippery gravel on the shoulder.

Morning Post 11/29/11, SPX

STB has been hitting hard on the Iran issues in the AD for weeks now. It appears some tensions have boiled over and now we have actual conflict. Iran Update: Six (Or Eight) UK Embassy Staff Taken Hostage: Iran Contra Redux? | ZeroHedge. I was not long ago STB was discussing Iran and wars and market crashes. 

Print or die or die printing, that is the dilemma facing the EU right now. "The amount tops the 247 billion that 178 banks took last week and is the second week running that demand hit a new two-year high. In other words, despite demanding the most amount of money in 2 years, the banks were unable to flip all that cash and "sterilize" monetized paper." ECB Fails To Sterilize Bond Purchases, €9 Billion Shortfall Confirms Euro Bank Liquidity Freeze | ZeroHedge. Just follow the liquidity train.

Thinking about this earlier, what is the new reality with Italy? We used to fawn over rates sub 6% and fear above 7%. Then 7% became reality and now are we to rejoice rates sub 8% and greet them like all is well? "Confirming just how much the market has lost it, at just after 5 am Eastern when the news of today's Italian auction as announced, the EURUSD soared by almost 100 pips on news that the auction had not failed." Italy Prices €7.5 Billion In New Bonds At Unsustainable Yields, Market Rejoices If Only For A Few Minutes | ZeroHedge  

Afternoon Delight 11/28/11 - Welcome Back to Reality

The new normal - Ramp on a rumor and give little back when the news was no news after all. I hope everyone had a great Thanksgiving holiday. I enjoyed being away from all the news for a few days. Sadly, nothing has changed and if took about an hour to be welcomed back to reality this morning.

Welcome back to reality - 


Presented without Shanktification as the headlines flow just fine on their own.

Calculated Risk: Wolfgang Münchau: "Only days to avoid collapse" of eurozone, Currency Market prepares for breakup

Moody's: "The Probability Of Multiple Defaults By Euro Area Countries Is No Longer Negligible" | ZeroHedge

Britain draws up emergency plans for collapse of Euro as warnings Italy needs £500bn bailout | Mail Online

Morning Post 11/28/11, SPX

"The reasons for the rally are largely based on headlines and rumors out of Europe and being too pessimistic about what happens if there is no “solution”." Sounds like the same 'ol same 'ol thang, "it seems the main reason for a market rally is the amrageddon-like scenario of the break-up and the typical belief that 'the-worse-it-gets, the-better-it-will-be-in-the-end', so buy." Grand Plan 2 Or Grasping At Straws? | ZeroHedge

Did you catch that "too pessimistic" part? Well, if you have been reading this blog for the last 2.5 years and especially this past month then I want to know their definition of "too pessimistic"? Wait for the AD later today. I have 4 days of head lines to bowl you over with.

None of that matters. Nothing matters other than what the grand puppet masters decide. We are living in a time like no other where market manipulation, fraud, corruption and greed drive the system from its core. The only thing that will stop the charade is when their system literally implodes from the weight of the debt they continue to pile on. Remember, do the math.

Morning Post 11/25/11, SPX

Well, Europe did not blow up yesterday. I thought it might. Still could be an interesting weekend,

I hope all had a good Thanksgiving.

Daily SPX - 

Have a great weekend.

Remember the reason for the season.

GL and GB.

Turkey Day Post 11/24/11 - Imanent Disaster

You know the drill - share the love and the knowledge and pass the punkin pie please. Enjoy this one cause next year's is gonna really suck. Be thankful now cause you're gonna be pissed later.

Not sure what I will do for Friday.  There will be a post, but it will be limited.

Sorry to bring you all this crappy news, but you must see it and feel it. No longer can we live in denial. This shit is real and it is an enormous problem. As STB pointed out many months ago - it is all about liquidity - show me the money! Sadly there isn't any to show as they burned (stole) it all.

I've been telling you literally for years the math does not work and global default is the only answer. I've been telling you to have plenty of cash at home (with many other things). So what happens when the banks all freeze up? Well, the O-MFG event has been going on for over a month now with no resolution or return of the stolen investor capital. Think about that long and hard.