Archive - Mar 2011 - Blog entry

Our Nobel peace prize winning former constitutional law professor in Chief is arguably even MORE BRUTAL than Bush ...

Mr. Neutron, the most dangerous and terrifying man in the world...

Neil Barofsky is resigning in style today with a scathing editorial in the NYTimes (when WILL Murdoch shut those radicals down?) in which he calls the program a FAILURE and "little more than a giveaway to Wall Street executives."

Let's hope that the SECOND complex is under control.

Not a birthday, a payday.

One can be rest assured those Irish haircuts are coming. Will the other indebted EU nations just sit back as Ireland clips its debt without following suit? Doubtful! Remember, I have been warning of this event for over a year, and the daisy chain effect is still being ignored.

Want a cheap undated put on oil? A Darwinian thinning out has taken place over the last 30 years, while management has learned to make this worst nightmare of an industry efficient. The top four airlines now control 75% of the US market. The industry has fewer seats than in 1982; while inflation adjusted fares are down 40%. When was the last time you saw an empty seat on a plane? (AA), (LUV).

It is a pity that Dr Miyamoto is not alive to offer his unique insights today. Luckily, we have the benefit of his writings.

USDJPY has been in the strong short zone with over 70% of traders long for many, many months, close to a year now. In that time we have seen sustained and continued declines, today is the first time we have seen long positions dip below 70% in almost 12 months.

Large US corporate defined-benefit pension plans experienced record sponsor contributions last year, consulting firm Milliman Inc. reported in a study, saying a decline in discount rates fueled record levels of pension expense and cash contributions.

So why is Bill Gross, the Bond King, dumping US Treasuries? The 30-Year Treasury only has one support line left before it gets to the line that has supported it throughout its bull market of the last 28 years. When we take out that line, the US Debt Crisis will hit in full force, as our overleveraged financial system breaks down once again.

BaNZai7 NeWS: The deadly QE Cobra (pictured below) that's been MIA at the Bronx Zoo has attained celebrity status -- it now has its own page in World's Greatest Disasters (This Time It's Reeeeeeeaaally Different!).

For now, the big fish are bailing out the little fish. Unfortunately, the US is the biggest fish of all and it's extremely unclear to see who exactly will be bailing us out when our rates start rising.

It seems like we're having great news today about consumer spending, at least if you read the articles coming from the Journal and Bloomberg. They don't let you forget that consumer spending is 70% of the economy. They seem to ignore the debt bomb and its impact on spending.

We've always been at war with Eastasia ... and plutonium has ALWAYS been good for us!