Archive - Oct 12, 2010 - Blog entry

I don't know about you, I am tired of all this fraudclosure stuff...I am concerned that our best and brightest will not be adequately rewarded for all their good works!

It was another quiet day in the market as the expectation of QE2 continues to dominate the headlines like Securities Analysis dominates the insomnia drug market or like Gabourey Sidibe dominates a doughnut (or box of doughnuts to be more precise). The market still can't figure out what to do as investors continue to oscillate between delusion and ecstasy over the Bernanke Put which seems primed to lower real rates until they drop further than Meg Ryan's boobs.

How much can we blame on state pensions?

Seat belts on please.

There are still huge headwinds facing the residential real estate market. Shadow Inventory is not getting better, and now we have the robo-signing scandal which will only further delay recovery. Since all real estate is "local", some markets are clearly starting to find a floor. But a "recovery" whereby prices stabilize is a couple years away.

If only our own Fed were somehow held accountable to the people of this country - even symbolically…

A 2.4% GDP rate added to 0% inflation is giving you the 2.4% yield you see glaring at you from your screen today for the ten year Treasury bond. The market is essentially betting that inflation will remain at zero for another decade. Rampant inflation has already broken out in great swaths of the global economy. What is wrong with this picture?

Ben B is going to buy a Trill in bonds for a 1/2% boost in GDP. SSA just took that away from him.

My theory of currency relativity sufficiently exposes, as frauds and charlatans, Geithner and other Western bankers that have created, as a diversionary tactic to bury the truth, an artificially divisive East-West hostilities among the serfs that inhabit their kingdoms. Despite Mr. Geithner’s attempts to convince the world that the Chinese yuan is insufferably weak compared to the other world’s major currencies, the below charts expose that, well, a fiat currency is a fiat currency is a fiat currency is a fiat currency is a fiat currency.

The media is staring at the wrong target. Each major media outlet is copying what is popular or what the next outlet broke as a story versus where the true economic risks actually lie. Here's what's truly at stake – the United States is now at risk of losing its hegemony as the financial capital of the world!

The big banks are saying that these are simply "procedural defects" which don't affect their ability to foreclose.

Are they right?

This daily report is designed to help traders find opportunities to trade against this group. The premise is very simple we are looking for 66% of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair. The pairs that we feel offer the highest opportunity for success are described in the Shortand Long Zones.

"And in the last analysis, success is what matters--Adolf Hitler"...

I know I will be accused of engaging in dangerous hyperbole by making this comparison. Allow me to differ...