Archive - Jul 2011 - Blog entry

The CPC (Communist Party of China) was founded on July 1, 1921 in Shanghai with a large working class support base. Throughout the past 60 years or so, China has never deviate much from socialism. With rapid growth, cracks are starting to surface.

Hooked up with a buddy of mine who flew into town. Our interesting conversation covered blogging, bankers and regulation, BRICs, oil, interest rates, deflation, the next crisis, Greece and the Greek bailout, ratings agencies, Canada, and lots more. Enjoy!

The map is not the territory, buy these charts don't lie...

Odds and ends.

In his June 29th press conference, the President again singled out rebates to push U.S. fossil fuel production in his demand for tax increases for an economy already threatened by double-dip recession. The proposal compounds regulatory mischief: blocking oil and gas in the Gulf of Mexico while Chinese and other foreign companies drill off Cuba almost within sight of Florida beaches, forfeiting 250,000 jobs.

Here it is, round two of GW's postcards from oblivion...

The Act provides that, during the emergency declared to exist, relief may be had through authorized judicial proceedings with respect to foreclosures of mortgages, and execution sales, of real estate; that sales may be postponed and periods of redemption may be extended.

Just a few dots to connect on a holiday weekend.

With all the other excitement in the news, I'm wondering if any of you have noticed the ominous news reports about immanent round of Wall Street layoffs.

Will phosphate be bigger than Potash? These Montreal hedge fund managers think so and they're betting big on some small Quebec mining companies...

The take home point with all of this is that the Fed is in fact powerless to address, let alone fix, the Financial Crisis that began in 2007. Indeed, the Fed’s key role in creating it was to let Wall Street dictate the Fed’s moves. And now that the Fed is supposed to solve the Financial Crisis, we’re finding out not only do they have no clue how to do it, but they’re even aware of this fact

This is how we handle things down in Toon Town.--Judge Doom

The EU vs US - Who Crashes First? Reserve currency status is a very strong lever, historically. Equally important, the holder of said status has usually held the most powerful military and technology as well. Meanwhile, the EU has the twin problem of CRE debt rolling over on underwater properties and devalued (by up to 50%) sovereign debt held at 30x leverage as risk free assets at par by the banking system. True, the US has similar CRE issues + housing depression... So much to contrast & compare.

Lets be brutally frank shall we. From the day he first set foot in the Department of Treasury, this useless piece of garbage called Timothy Geithner has been good for one thing and one thing only: To protect and serve his Wall Street masters.

After the last week’s good “window dressing” equities performance, it is time to reconsider some facts on the Economy. Our short term targets in SPX have been reached, since bouncing off the 200 day moving average. We should start hitting some resistance levels shortly (1320). The dull summer months might even provide some kind of consolidation/trading range, where volatilities come off, and present a nice set up for the autumn collapse we think will happen.

From www.thetrader.se