Ratigan Presents Financial Fraud For Dummies (Literally)

Dylan Ratigan and the Story Pirates have dumbed down the biggest generational theft in US history to the level where a Sesame Street fan can get it... Or is that a master ES trader with laser precision liquidity withdrawal reflexes? Anyway, it is somewhat sad to witness the transition of America from at least a passably respectable nation to one in which it is made plainly obvious to children, that to succeed in life one must cheat, lie and steal with the best of the the bankers.

Daily Credit Summary: April 14 - Ain't No Stopping Us Now

Spreads were broadly tighter today with HY outperforming IG as equities got a boost from retail sales, Bernanke's low-and-long comments, and Beige book headlines. JPM's earnings (along with CSX's beat and INTC's smash) also helped as financials outperformed in equity and credit. The psychological break of several critical levels in equity and credit indices seems relevant for the moment (despite the survivorship bias inherent in these long-run indices reducing the real worth) but there was no arguing with the breadth today as tighteners outpaced wideners by over 8-to-1.

Guest Post: Winds Of War And Economic Crisis Behind The Attacks On The Pope

Paedophilia is a great scandal. The fact that it involves Catholic priests is an even greater scandal. Especially for a devout Catholic, this pain is like few others. It is good thing that it is coming to light. It would be worse if we allowed such a cancer to slowly consume souls and let it pollute and destroy the structure of relations of the Church from within. No one could find a better pretext to attack the Catholic Church than this. We saw this recently in the wanton attacks against the Pope that culminated in the obviously ones-sidedness of an article by Laurie Goodstein published in the New York Times. Paradoxically, the Pope, who recently called for zero tolerance in cases of paedophilia, was targeted more than ever and more than others. Various Vatican media outlets have already described who did what, refuting charges against the Pope. But even the Wall Street Journal in an editorial challenged the defamation of the Pope by the New York Times article.

Notwithstanding the lies, there are some disturbing coincidences. Why so many accusations (some going back 40 years) appeared all at once in various countries around the world? This is a peculiar coincidence, but there are others, far more complex, that lead to a somewhat more disquieting picture.

US Military Warns Of Oil Shortages By 2015 With Significant Economic And Political Impact, Especially On Weak Countries, India And China

A report issued by the US Joint Forces Command has a rather bleak view on US oil production, and on peak oil in general. In a foreword to the report issued by General James Mattis, he warns that "By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day." Does this mean that oil, just like in the Bush administration, is about to become a "strategic interest", which coupled with the upcoming discoveries of non-existent weapons of mass destruction, would result in some additional geopoltical tensions particularly in the middle east? With nuclear tensions between Iran and Israel already at boiling hot levels, will Uncle Sam decide to make landfall in the Persian Gulg once again? More from the General: "While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds. Such an economic slowdown would exacerbate other unresolved tensions, push fragile and failing states further down the path toward collapse, and perhaps have serious economic impact on both China and India." Well, Mr. Chanos, there's your catalyst. We just hope that the negative carry of a five year short position is palatable to your LPs.

The Benefits Of Contract Abrogation According To Mark Zandi: 6 Million People Not Making Mortgage Payments Frees Up $8 Billion Each Month

We have disclosed on numerous occasions how excess refunds by the Federal Government despite subpar withholdings is goosing up consumer spending. Now we hear from none other than Mark Zandi of Moody's Economy that the government's tacit encouragement for "homeowners" to not pay their mortgage dues is freeing up $8 billion each month that is artificially increasing consumer spending and iPad preorders. And with banks not marking anything to market, all these houses that generate no cash flow are still marked at 100 cents on the books. If you ever needed a justification to not pay your credit card, your mortgage, or anyone else you owe money, now you know - contract law in America no longer exists. Just stop paying everything. And please dont save. Saving is for non-banana republics. Remember - the market is never wrong. And nobody can remember when was the last time we had a downday. So all must be well.

332 Days Till Dow 36,000, As SPY Has Become A 4x Leveraged ETF On The XLF

At today's rate of market melt up, we will hit Dow 36,000 in 332 days, or on March 12, 2011. This should occur a few days before Bernanke finally agrees to raise the discount rate to 0.50 bps. Also, at today's rate of price change, we will hit $715/bbl on the same day. We are confident that gas at $30/gallon will cause the Fed Chief Execution Officer to evaluate his conclusion that his brilliant monetary policy is not causing the single biggest asset bubble in US history. Last and not least, total US Federal debt on that day will be about $14.5 trillion, and when adding all the off-balance sheet items, should hit about $120 trillion. We have less than a year before total Alice In Wonderland oblivion. Oh, and since the latest episode of market melt up began, the SPY is trading as a 4x leveraged ETF on the XLF. Ignore that this statement makes no sense. Just buy. Buy everything. Then repo it to the Fed, they are particularly receptive to used single ply toilet paper, and then buy on repo margin. Insanity is here.

Step Right Up - Everyone's A Winner: Buy Something, Buy Everything, Stocks, Bonds, Oil, Gold... Everything Is Up

"Buy stocks, buy bonds, buy oil, buy gold, buy something, buy Ambac - Just throw your money at this market", the Primary Dealers beg you. They need to sell you stuff. They have lots of stuff to sell, at bargain basement prices. The bond market is so extatic about the equity melt up and the coming hyperinflation (as predicted by equities) that bond are being bought left and right as well. Everyone is buying something - no point in mentioning oil and gold: buy those too. Algos will scalp a few PIPs a few billion times today: computers have to feed their children too. Correlation across all asset classes is again one, as happens every time before the market goes up by 100%.