Occam's Razor

Back by popular demand. I call this tune- Banker Inferno. I think that's the Bernank on lead vocals singing about QE XXVII.

At what point in this DEPRESSION is this country going to wake up and realize who the enemy is? Geezus- I feel like... whatshisname in the Matrix. Neo. Fighting bankers in black suits. Losing.

Let me explain something by way of Occam's Razor. I had heard this term many years ago and saw it today in some comments I was reading. Here is the definition we will be working with. That is, the Razor is a principle that suggests we should tend towards simpler theories until we can trade some simplicity for increased explanatory power. That power usually comes by the way of an archaic term we once called an "investigation." That relic may have been lost. To utilize the Razor, we must ask ourselves simple questions.

Ok, here's how this works. We are looking for a " simple theory."

1. Who controls the quantity of money? Answer- the FEDERAL RESERVE BANK.
2. What happens when the FED floods the market place with money? Answer- Lending standards deteriorate. Bubbles develop and burst. Depressions are called recessions.
3. Who makes shitty loans with all that excess money? Answer-Banks.
4. Who stood to profit from all of those shitty loans? Answer- Banks.
5. Who resold all those loans knowing they were shitty? Answer-Banks.
6. Who lied about all those shitty loans when reselling them? Answer-Banks and Co-conspiring rating agencies.
7. Who shorted mortgage insurers knowing those loans sucked and would fail? Answer- Banks
8. Who got bailed out? Answer-Banks. Who bailed them out? Answer-A Banker.
9. Who donates the most money to politicians? Answer-Banks.
10. Who is reporting "record profits" and "bonuses." Answer- Banks.
11. Who is now flooding the market with non existent money/creating inflation? Answer- A Banker.
12. Who committed literally millions of fraudulent acts and continues to do so? Answer- Bankers.
13. Who are the FED's members? Answer- Too Big To Fail Banks.
14. Who has a 188 trillion dollar derivative exposure? Answer- Banks.
15. Who is buying stock in the stock market? Answer- Banks.
16. Who has been able to avoid even one single criminal prosecution? Answer- Bankers.
17. Who paid Angelo Mozilo's fines? Answer- Bankers.
18. Who has their own cozy accounting rules to avoid disclosing losses? Answer- Bankers.
19. Who was able to keep enormous profits but socialize losses to taxpayers? Answer- Bankers
20. Who runs this fucking country? Answer- (It ain't anybody you elected)

The casual reader might note a common thread. That's my Occam's Razor view of the causality of this continuing mess and cover up. Facilitated by fraud and ratings agencies on the front end, politicians admirably managing the cover up- still taking campaign contributions on the back end. Don't forget this when the redux comes this year. All good movies have a sequel.

It's ON Like Donkey Kong!

Great stuff today. As predicted by some anonymous, silver Nostradamus type, silver was up over 3% today. It is up another 6 cents after hours.

I want you to stop and think about what I am about to say. China hiked interest rates today. Chinese people buy physical gold and silver as an inflation hedge. There are potentially 1.8 BILLION buyers in that country alone. Forget the U.S. We have a bunch of saps watching stupid shit on TV. Only 300 million of us. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/2/7_KWN_Source_-_Expect_Massive_Chinese_Gold_Buying_Using_GLD.html

Don't think the Chinese government reports the real inflation rate either. In time, the Chinese government may learn how to distort the picture as effectively as we do. Shit, they might just outlaw inflation all together. Execute some guy selling rice cakes.

Bonds and yields are about to go supernova as well. I can't wait to see what form of gimmickry and wizardry the Bernank tries next.

Apple Stock

I love to tease people about Apple shares. I got a sobering email this afternoon. What happens if the Supreme Court rules Obamacare is legal? What happens when the government orders us to buy Apple products next? Some goon comes to your house to make sure you have an Ipod, Iphone, Ipad, Imac?

Think about that, smart guy.

Geezus. Never thought about that. Maybe I better beat the rush and get a Chevy Volt now or get priced out.

If you are in the market for a full on suicide watch, read this.

http://investmentwatchblog.com/derivatives-the-real-reason-bernanke-funnels-trillions-into-wall-street-banks-by-graham-summers/

Just Some More Crooked Bastards

Makes you wonder how many have not been caught. Let me give you the Frankenstein Government estimate.

A shit ton. From the WSJ. http://blogs.wsj.com/deals/2011/02/08/insider-trading-charges-shred-as-much-as-u-can/?mod=msn_money_ticker

Apple Stock Tremendously Undervalued, Get In Now or Get Priced Out!

I just heard another CNBC talking head tout Apple stock.

What he is really advocating is "get in so we can get out." The buy high and sell low theory. The long holders are in deep shit if this QE2 ever quits. Because at that precise moment, every short seller in the universe, including yours truly- who has been forced to the sideline will come enmasse to sell your inflated, POMO induced paper, back to earthly levels.

With virtually every hedge fund and mutual fund in the galaxy holding Apple stock, you can hear the chant daily. They are all in.

When two hundred shares of Apple stock (currently 355) trade at the same approximate price as a 1400sqf home in the Midwest- what is the best investment? Let's see, if you bought the home outright you would save about 700 a mo. x 12 or about 8400 dollars a year.

If you bought 200 shares of Apple, and it goes to 450, (the talking head's price) you would make about 19 grand or about two years worth of house payments. The government will take their 25% cut. But the house will not cost you anything for the duration of your life in that house. You are paying yourself 8400 bucks a year in dividends tax free for your entire life and your posterity's life minus the death tax.

There are a few other problems with buying the stock. Steve Jobs leaving the planet, pinning your hopes on a never ending stream of Ishit, existing owners achieving consciousness and the stock actually going down, and the biggest problem of all. The whole world is already in. Who are you going to sell it to? Your bartender? It's paper.

'Tis the life cycle of things. Today's story will be tomorrow's history.

Help Wanted Ad As Seen on Peking Craig's Rist

http://money.cnn.com/2011/02/08/markets/markets_newyork/index.htm

We are currentry rooking for man who ignore infration data. Who refuse to raise interest rates.
A man who refuses drinks kooraid. Do you know of sich a man? Pay big money. Can you help prease? Time is Yuan.

Sincerery,

Chinese Business

Welcome to the February 8th*Updated

A couple of weeks ago, I snipped some anonymous internet rant about a cabal of traders buying silver and gold (paper) longs and that at the end of the settlement month(s) they were going to demand delivery of the underlying commodities.

*A commenter on another site noted that no in fact, the squeeze was on and the trade would be settled in cash, this is proving inaccurate. From the mighty Organ. Thus the total number of silver oz standing in February rose dramatically today to 1,455,000 +  475,000 =  1,930,000.  We gained a massive 500,000 oz today).  Somebody was need of silver in a hurry!!*2nd note. Email confirmed I had the wrong bank shorts. JP Morgan, HSBC...noted and edited.

Most people I follow believe that the Comex has far more contracts trading in paper gold and silver than deliverable gold and silver. Such contracts are almost always settled with cash. However, if some cabal actually all demanded delivery of physical gold and silver at once- could it be delivered? The smart money says, "no." They have 30 days to deliver the goods. If they are right, spot prices could go parabolic. The villains in our story are JP Morgue and HSBC...smaller players as well. But they are bankers. Thieving, greedy, manipulative bankers.

Normally, I think such ranting is usually internet BS. Here's the weird part. That rant was written on Jan. 7. And everything the writer has said- has happened. He predicted the start would be today. A search of his comments. http://search.messages.yahoo.com/search?.mbintl=finance&q=wynter_benton&action=Search&r=Huiz75WdCYfD_KCA2Dc-&within=author&within=tm And what are we seeing? Heavy buying in both complexes. Gold is pushing through resistance at 1350. Silver pushing through resistance at 29.80. Good stuff. God bless those Chinese physical buyers. They have stretched supply to it's limits and made this scenario possible. In a country with incredible food inflation woes...they know the only safe haven is physical.

Great stuff from the Organ. http://harveyorgan.blogspot.com/

For more on the February phenomenon, please read this crazy bastard's blog. Fresh back from a trip to Vegas that I have yet to hear one thing about. Some cliche comes to mind. http://tfmetalsreport.blogspot.com/2011/02/hmmm.html

Has CNN Cornered the Market On Delusional Writers?

I offer up this example.

http://money.cnn.com/2011/02/06/news/companies/super_bowl/index.htm

C'mon, people the recession is over. (By the way, quit calling this depression a recession- I am getting tired of hearing that garbage.) Forget all of your lost equity, lost homes, and five hundred something credit ratings. Forget about those lost jobs, your new 12 buck an hour job, rising health care and food costs- and taxes. Please buy some of our over priced and worthless stufff.

CNN is dangerously close to receiving my weekly award for shittiest writing of the week. Probably going to read the imbecile Krugman, some other libtard shit, but right now- CNN getting a heavy lean.