Archive - Jun 2011 - Blog entry

The biggest problem with investing the markets today, is that we’ve entered a period in which not one country, but most of the developed world is entering a currency Crisis. Of the countries that back major currencies the Europe, the US, and Japan all face major debt restructuring issues. In different terms, we are witnessing the slow-motion collapse of the entire paper-money based financial system, as well as the unbridled credit growth such a system fosters.

How many residents of Japan, Hawaii and the West Coast have tasted this?

Do Zero Hedgers agree?

What we have now is an economy that is almost entirely driven by Banking Interests so, if we want our markets to be strong, we need to do what is good for the banks. At the moment, that means keeping the Dollar as weak as possible.

Very weak day in credit land, despite some strength in stocks. Significant sell-off in short-dated HY (cash and synthetic), financials net sold all day, and European sovereign risk spurts higher once again. Dip buyers notably absent in credit for now.

"This Court is mindful of the impact that this decision may have on the mortgage industry in New York, and perhaps the nation... Nonetheless, the law must not yield to expediency and the convenience of lending institutions. Proper procedures must be followed to ensure the reliability of the chain of ownership, to secure the dependable transfer of property, and to assure the enforcement of the rules that govern real property."

Summary: As our research illustrated in explicit detail 5 months ago, Facebook’s growth is slowing after an outrageously rich offering of private shares. Now, I’m sure that GS can put on the ole’ shuck & jive show to garner enough interest to cause an initial IPO pop, but then you are basically gambling on - I mean,,, investing in Goldman’s marketing talents and not the fundamental prospects of Facebook, no?

With public outrage soaring the Fed needs things to cool down before it can announce QE3 or anything like it. The one exception to this would be if the markets enter a full-scale Crisis and stocks close in on 1,000 on the S&P 500. The most likely candidate to trigger this would be the Euro-zone where the “bailout game” might in fact be about to end.

If you are an ordinary working American and you don't fuck up, you get fired with an unemployment check in the mail; if you are a CEO and you fuck up, you get your golden parachute and a big ass pension; if you are a banksta and you fuck up you get bailed out and a record bonus; if you are a fat White House PhD and you fuck up, you go back to your Harvard nest egg and write bullshit editorials in the Financial Times...STFU already Larry!

The Supreme Court of Canada just threw us back into the Dark Ages...

The global economy is so rattled by price inflation, unemployment, natural disasters and global financial and political instability that it doesn’t know if it’s been “shot, f@*#ed, powder-burned or snakebit,”...

Broke and fearless.

For the first time since September 10, 2010, the “dumb money” indicator has turned bearish.

Fat Finger...again?

U.S. President James Madison said:

"If Tyranny and Oppression come to this land, it will be in the guise of fighting a foreign enemy."

Did he know what he was talking about?