Archive - Apr 17, 2015 - Blog entry

Everyone this week focused on the slight production declines that this was a sign to go long oil, but what seemed to go under the radar was another build in both Cushing and the Gulf Coast storage hubs.

Good thing Goldman didn't take me upon that leveraged macro trade yesterday. The GS short leg was up ~50% as I type this post. More concerning than my catching their increase in risk/leverage is the method in which I did the trade. Broker-dealers are no longer needed, and Goldman is a broker-dealer.

A day in the life of a real live Keynesian Trading Advisor...

Behind the curtain...

We need to consider the Cyprus “bail-in” and its implications. The reason for this is that this tiny country has provided the world with a template of what is eventually going to be a global phenomenon.

Anthrax Was As Important As 9/11 In "Justifying" the War on Terror, the Iraq War, and the Patriot Act

Wall Street turns junk-rated US corporate loans into highly rated yen-denominated bonds. Desperate Japanese pension funds gobble them up. Blame the Bank of Japan.

Sentiment in general remains poor and all the focus is on gold's weakness in dollar terms, despite gold's strong gains in euro terms in 2014 and so far in 2015. Poor sentiment is of course bullish from a contrarian perspective and suggests all the froth has been washed out of the gold market.

In 2010, contrary to nearly every pundit, analyst and economist popularly published, I proclaimed ZIRP would starve the banks. Fast forward 5 years and banks are looking famished and things are getting worse 'casue more bailouts are coming before we finish ending the last bailout program (ZIRP) - The Federal Reserve has decided to let U.S. banks make limited use of municipal bonds to meet liquidity requirements

In the first part of this series; several fundamental principles of economics (and markets) were stressed. Supply/demand analysis is not merely objective, and logically/mathematically irrefutable; it is the only basis upon which the market for any hard asset can be analyzed. Conversely the price-analysis constantly parroted by the Corporate media is utterly devoid of any significance or legitimacy – in the corrupted crime-scenes of today which we call our markets.