Archive - Sep 1, 2011 - Blog entry

"And we have to improve our image," said Masatoshi Kumagai, one of the bosses of the Japanese mafia, in an interview with French reporters. Yakuza are on decline, he said, and if they don't change their business model, they might cease to exist.

The Fed has already gone too far with QE. QE 2 spent $600 billion and didn’t accomplish anything (as I and several commentators have recently noted). The Fed’s balance sheet (roughly $3 trillion) is already larger than the economies of the UK and Brazil. Has anyone bothered to ask how exactly the Fed going to unwind this? Everytime the Fed halts QE the markets implode. Do you really think the Fed could withdraw even $1 trillion in liquidity without forcing systemic collapse?

Even a broken clock could be right at least twice a day....    

These numbers are horrible.

We have had a nice run here on (BAC), posting a profit of 20% in just one week. The stock market is now at the top end of a one month range, so I am going to cut back some risk. The big gainers are always the first to go on the chopping block.

We have had a great 130 point rally off of the August 8 capitulation low. The market is getting artificially ramped up to overbought levels by month end window dressing, as portfolio seek to hide the damage caused by the worst month in the equity market in ten years.

The preliminary 2011 numbers for SS show that the red ink is rising. Another example of where "things" are going the wrong way.

The IMF says Euro banks are severely undercapitalized, the EU says the IMF is full of it. Reggie says they're both so optimistic that the word disaster can't even be spelled correctly without someone in a marble office breaking out into hives...

SPX hitting resistance levels.....while Athens plunges to lows.

All you need to read.