Archive - Oct 2010 - Blog entry

Is there anything that can stop the Fed? Maybe.

Obama said he would be “very interested” in finding ways to lower the corporate tax rate so U.S. companies operating overseas aren’t disadvantaged so MORE FREE MONEY for our Multinational Masters and Bernanke said he refuses to be out-eased by Japan and he's got a whole fleet of helicopters lined up to dump money on our Multinational Masters as well.

If history is any guide, KPMG demonstratively failed to learn the lesson of their misdeeds during the Crazy Eddie audit. I wonder if they are at least better in covering up their mistakes this time around.

A very well made 45 minute documentary on Goldman Sachs, derivatives, US real estate and the root causes of the Pan-European Sovereign Debt Crisis

Watch out! The Truth is GOING VIRAL! Reggie Middleton discusses residential real estate, Case Shiller and over exuberance on Bloomberg TV.

In 2010 we have crossed into the Twilight Zone of Perpetual Deficits at Social Security.

In preparation for a lost eon, the BoJ took center stage this morning in its latest attempt to form the funniest chart ever (USD/JPY). However, a largely unnoticed speech by Brian Sack yesterday telegraphed an important shift in FOMC policy that will give the Fed ample resources to create its own knee slapper (USD/Everything Else).

When the Fed announced that it would issue its QE lite program in mid-August, the world took this to indicate that QE 2 was definitely coming.

Indeed, virtually EVERYTHING occurring in the financial markets right now can be traced to the view that the US Federal Reserve has a $1 trillion+ QE 2 program on deck. Nowhere is this clearer than the US Dollar.

"Life fades. Vision dims. All that remains are memories. I remember a time of cheap no doc liar loans. McMansioned dreams. This hyper-insolvent wasted land. But most of all, I remember the Subprime Road Warrior. The man we called "Max".

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.

As hot as they’ve been, emerging markets are only just getting started. By 2018 the combined GDP of the BRIC’s, Brazil (EWZ), Russia (RSX), India (PIN), and China (FXI), will match that of the US. China to maintain a virile 8% annual growth rate for eight more years, while the US plods along at an arthritic 2% rate. How the “BRIC” almost became the “RIC”. Jim Chanos, you may be right about a China crash, but you’re early by a decade! (EWZ), (RSX), (PIN), (FXI)

The recent data do not point to a recovery. Factory orders are declining and inventory is building up. This is not what Bernanke and the Team Obama expected to happen. The economy has been stagnating further and now we are just waiting for stagnation and inflation.

“Secondary buyouts are almost of bubble of their own,” said Jon Moulton, who helped start the funds that grew into CVC Capital Partners Ltd. and Permira Advisers LLP, two of Europe’s biggest private equity firms. “If firms keep selling assets to one another, how real are their prices? how real are their returns?”

The National Association of Realtors is a marketing engine with what some may call (but not I, of course) comedians for chief economists, yet their data and their economist’s opinions are quoted regularly in credible, mainstream financial news shows and newspapers. WHY???!!! On that note… Bloomberg reports the NAR states "Pending U.S. Sales of Existing Homes Increase 4.3%"

Liberals and conservatives, progressives and libertarians should all be up in arms about this.

We have a right to know what we're eating.