Wow, what a morning. After a crazy night with a friend at the hospital, I got up around 930 am to see the great market rally. Knowing that the unemployment report for August is not due out until tomorrow- I scanned the headlines for the reason behind this 250 point rally.
Underwhelmed. Mario Draghi, the European Central Bank's Ben Bernanke, said that the ECB was prepared to issue bonds for all of those mounting debts of Spain, Italy, Ireland, Portugal, Greece, and a few other countries to be named in a year or two.
This is the new normal. Insanity.
The cure for worldwide debt is to simply issue more debt. With interest. Then have a big short covering rally as once again- bankers manipulate markets. Morons like me, who have never seen a better shorting possibility ever, get creamed again. If you are on the short side- you have to be getting tired of having your ass kicked by the world banking cabal. Indeed, the cure is worse than the disease. More debt. It has to be a banker's fantasy.
Imagine my glee were my significant other to say to me, "Hey honey I paid off that 5000 dollar credit card we owe at 9% with a new card that has a 15% interest rate." In the new world insanity, this would be fantastic news. I would then run out and buy 1000 bucks worth of worthless shit and add it to the new card.
It's like going to the doctor with syphilis. The doctor says, "I am going to amputate your penis to prevent this from re-occurring." Upon hearing this, I immediately jump for joy at the far sightedness of my doctor.
So this morning I watched CNBC and all of the stock touts talk about how smart they are and why everyone should be in this market.
We'll see how fucking brilliant these people are tomorrow when that unemployment report comes out and unemployment ticks up to 8.4% or so. We can't afford a real recovery. Inflation would go supernova.
I am in no hurry to short this market as it goes sideways for a few more months. But I am getting much closer.