Archive - May 25, 2011 - Blog entry

Jim Chanos is short China and solars. I say it's time to short Chanos...

Secondary bond selling continues, but seems as much about rotation into new issues as derisking for now. Equity outperformed credit on the day but we wonder whether the self-fulfilling liquidity support in corporate bond land is starting to ebb as concessions and basis contract and curves reach extreme steeps.

Fight Club is about personal growth and community, of discovering what we are all made of, of seeking the inner steel and honing it to perfection, then using our newly strengthened muscles to build a tighter more functional community. Fight Club is about creation, not random destruction.

Indeed the CFTC's allegations are a how-to guide for any small group of energy traders that want to move the NYMEX up and down 5% at will.

We have...

Each claim of collusion - such as between Lloyd "Doing God's Work" Blankfein and Ben "We're Not Printing Money" Bernanke - must be judged on its own merits, either disproven or proven by the facts. But keeping it secret for years ... pfffft ... that's the easy part

I called it the coming RE Depression in 2007! I put MY money where my mouth was and sold off all of my investment real estate. I put YOUR money where my mouth was and shorted all that had to do with real estate (REITs, banks, builders, insurers). I called almost every major bank collapse months in advance. I warned the .gov bubble blowing does not = organic economic recovery. Now I'm saying we need to, and will, continue what's left of the crash of 2009, with ample global company. There will be no RE recovery this year, and there will be a crash. OK, you heard it here!

For now, the markets seem to be pricing in an eventual orderly resolution of the Greek debt crisis. As long as a unified and clear solution remains elusive to the Euro Zone, euro would continue to weaken against the dollar, while gold would prosper on fear and uncertainty.

Cracks are not spreading on the façade, real estate sales are not falling, and that the economic engine is not starting to sputter. China has literally been building a Rome a day. But 160 million are expected to move from the hinterlands to urban areas, enough to soak up this excess. The country’s real challenge arises when its demographic pyramid starts to invert in about five years. When that happened in Japan, a 21 year bear market followed. (FXI), (CYB).

You’d think that the world’s largest economy (and home of the world’s reserve currency) exceeding its debt limits would be big time news. But we’ve yet to hear a peep about it from the mainstream financial media. It’s even stranger that we haven’t heard mention of the fact that the US is in fact RAIDING pension funds to continue to fund its debt.

More spying on elite funds like Paulson & Co., Soros Fund Management, SAC Capital Advisors, Citadel Advisors, Renaissance Technologies and Baupost Group...