Showing posts from March 6, 2011

Bernanke's Special Sauce

The stock market is toast. Unemployment claims shot up another 21k to nearly 400k and last week's figure, as always, was revised up.  Everything is being taken out to the woodshed today. Wall Street has a big time problem. I call it the land of unintended consequences. Quite simply, the world is in debt up to it's eyeballs. While the vast amount of Main St. Americans don't have a clue just how bad of financial shape we are in, Wall Street does. So do I and a few others. The number one absolute mandate of the FED is to avoid DEFLATION at all costs. Deflation is supposed to be what happens when debtors get in over their heads. They are supposed to get their asses kicked and lose the assets they can't afford and very likely- had never paid for anyway. When deflation occurs, people living within their means and savers benefit. Because too few dollars are chasing giant debt piles. Money becomes more valuable. People with money can buy things cheap. Enter the FED. It

Why Warren "Buffet" Irritates the Shit Out of Me...

...and make no mistake about this Warren. It's your money they want, not your wisdom. Dropping one of those "t's" seems appropriate to me. Warren Buffet is an excellent and intelligent investor. I've watched Berkshire Hathaway stock for 20 years. It currently trades at around 125k a share!  When he took his huge position in Goldman Sachs while everyone else was fleeing the banking sector- I stood up and took notice. Buffet fully exploited what appears to be a "once in a lifetime"situation. Nobody else could have cut the sweetheart deal that he did. Getting a huge dividend to sit chilly on preferred GS stock until it recovered. In fact, I explored the possibility of doing the same thing. Sorry, small fish. That offer wasn't made available to anyone else. Only the wealthy elite get a ticket to that game. Now watching him milk the shit out of a new cow.

Fish Committing Suicide by the Millions in California

A coincidence? I don't think so. I think all of these sardines were either poisoned when Countrywide/Bank of America dumped all of their shredded toxic mortgages including the "Friends of Angelo" loan program into the ocean or the sardines simply see the writing on the wall. The canary in the California coal mine. Take heed snail darter. Your ass is next.

The Silver Bullet

The resiliency of silver in this market has been astounding. It doesn't take a rocket scientist to figure out that JP Morgan is continually shorting silver. Those numbers are reported. In a market void of position limits, this bank simply creates as many short contracts as they deem fit- to try and keep the price of silver suppressed. Here's a piece that details JP Morgan's huge short position. The 64,000 dollar question is why. Why do they care? So today, I was reading Turd Ferguson's, "Along the Watchtower" blog. He posits (via an anonymous cartel) that JP Morgan has tied a vast number of derivatives to a low silver price. That as the price of silver rises, losses begin to mount exponentially at JP Morgan. This actually makes sense to me. It would explain why they have so feverishly tried to reduce the price of silver. That in fact since they have always been able to manipulate

In America Anything Seems Possible, Creative Bribery Elevated to a Fine Art

Angelo Mozilo, the founder and CEO of Countrywide Mortgage, is one of the chief architects of the banking collapse. Ultimately, the now bankrupt Countrywide, was purchased by Bank of America. Angelo Mozilo had a little slush fund that he operated called the "Friends of Angelo" during Countrywide's heyday.  The "Friends of Angelo" was nothing other than a way of providing bribes to elite high powered people and Congressmen such as Senators Chris Dodd and Kent Conrad. Mortgages did not go through any kind of regular channel, documents were simply routed to Mr. Mozilo who had complete authority over the note. The terms of these loans, or the people who received these secret loans, have not been fully disclosed. I want to explain something to the un-indoctrinated here. Bribery comes in many shapes. Bribery can be done in hundreds of imaginative ways. Secret little corporate deals, personal loans done under the cloak of a legitimate business, future lucrative jobs,

Obama Plays His 60th Round of Golf

If we ever get rid of this bastard, maybe we should consider making the Office of the President a full time position.

The Rubber Is About To Meet the Road

I have been hearing talk of ending QE2 all morning long. That smug Kudlow on CNBC thinking that once QE2 ends- the economy will stand on it's own. I don't think so. You can't make an economy healthy when you have robbed 30 million jobs and reduced the income and benefits on existing jobs. You simply lack the capacity to recover. Do not think for an instant that equity prices- having tacked on a 90% gain since Mar of '09- can stand on their own. I still do not believe that they can end QE2 without a QE3. The bulk of treasury re-financing occurs this year and next in the five year horizon. Debt will have to be re-financed into higher rates. If they do, I see a stampede for the exits. As of today, I am changing my stock market implosion line from a 20% chance to a 25% chance. Could the media be trying to stop commodity markets' rise and the plunging dollar? Oh yea. Is talk of ending QE2 bullshit? Yes. This is going to get interesting and fast. Very odd, all of th

The Transfer of Wealth Continues

Came across this article today. Who's buying homes? Well the rich and wealthy are. When I was down in Bullhead City, Az. earlier this year- I noted a rich guy buying up homes everywhere and paying cash. The fifteen homes he bought will net him him a cool 10k a month. I noted then as now, that the transfer of this nation's wealth continues. From the Fed to their Wall St. cronies. From working stiffs with 500 credit scores to lawyers' with big inheritances. Kind of hard to buy a house with no job or having a "new age" job making twelve bucks an hr. I would rather live in a tent than make some rich bastards' monthly nut. That's just me.

Chicago Fed President Evans Carrying the Water

Watching Evans right now on CNBC with Steve Liesman. Liesman has some four dollar tie on and his shirt is so small- and his neck is so big- that the collar has all but disappeared. They must have some secret school where all of these central bankers go. They teach them how to bullshit us with finesse. Come off like rational people that know what they are doing. I essentially gleaned very little from the interview. I did note however that President Evans said that his 23 year old daughter calls him every day and tells him what gas prices are. This was very interesting since ZeroHedge commenters have been talking about this lately. You get the feeling that Evans might be reading ZeroHedge. I did. Good boy Evans. The Bernank will be proud of you this morning. Especially that part about QE2's 600 billion being the right figure. Good boys' get ahead in the Fed's scheme of things- but I guess you already knew that.

Up, Up, and Away... in My Silver Balloon

Egypt's stock market fails to open as promised. Yields backing up on bonds. Libya still in chaos. Gold's up 10 bucks in overnight markets...silver up almost a buck again- past 36.20. Gosh, what a head scratcher. Poor Bernanke. Seems more and more people would rather invest in something of tangible value rather than billions of unbacked counterfeit paper. Odd, eh? Yea.