This page has been archived and commenting is disabled.

Must Read Introspective: A Look Back At 2010 Events, Key Market Themes And The Circular Nature Of Everything

Tyler Durden's picture





 

Tonight's must read piece of introspection comes from the keyboard of Russ Certo over at Gleacher, who has compiled a fantastic look back at the key events that transpired and shaped 2010, and summarizes the key market themes that prevailed in the now past year. In summary: "the answer to the question of what were the main themes in the market
is ...............valuations in equities, credit spreads, sovereign
spreads, exchange rates, mortgage interest costs, bank earnings, net
interest margin, accounting schemes, tax code, debt ceiling and more are
all related.  Related to the ebb and flow of monetary and fiscal policy
aspiring to make adjustments to imbalances caused by earlier failed
fiscal and monetary policies.  How, circular indeed." In other words, not only does history not only rhyme, but chases its tail, and the more things change, the more absolutely nothing has changed. We are where we started, and in fact are in a far worse position, as increasingly fewer last resort levers to push and pull are available to the fiscal and monetary authorities. We jest when we suggest that a Martian bail out of plant Earth will soon be required, but pretty soon, in our Onion (or is that Douglas Adams?) reality, NASA may find itself with the prerogative to rapidly find semi-intelligent and very wealthy life on other located within a few parsecs. We can only hope that the restaurant at the edge of the universe is an In and Out Burger.

It's A Wrap, by Russ Certo, Gleacher

We await a supply announcement tomorrow of next week's 2yrs, 5yrs, and 7yrs.  Further, there are two 3-4yr area buybacks next week as well to conclude the Fed buybacks/Tsy auction circular reality for the year.  Treasury selling Fed buying.

I recall in recent history that the Treasury market has suffered meaningful setbacks anticipating supply weeks during recent holiday shortened weeks/sessions in the last quarter.  I believe limited street balance sheet and an opportunistic leveraged community are/were the main culprits.  I'm guessing that by the end of the week, traders, trading accounts, and funds will likely be looking for a spot to push the market lower for a supply trade.  One man's opinion.

The above rate call is despite the fact that European bank funding is dysfunctional.  And we can see this anecdotally in a variety of expressions but also in the Fed's explictly telegraphed renewal of FX swap lines with foreign central banks yesterday.  Explicitly telegraphing a statement is policy action itself as the bank doesn't need to announce these measures.  But the desire to semantically communicate can provide a policy function which serves gradualist  preservation dry powder policy approaches to save the full arsenal of tools for some other time when capital markets sniffs out inbalances.  What does it mean when the Fed still has to provide year end FX liquidity?  What does it mean when the EU has to issue new paper as part of funding the new EU mechanism bail out fund? 

Will central banks buy?  Will they sell sovereign or supra or agency paper to make room for purchases?  With IMF and EFSF (European Financial Stability Mechanism), European Commission and ECB review and sponsorship along with triple A ratings from Moody's, Fitch and S&P it feels like central bank likely buyers are buying themselves.  Hey, new concept:  Try to figure the spread price talk of buying yourself?  What spread to yourself are you willing to buy?  All circular.

We'll skip over the agency debenture market mainly, which is supposedly a liquid market, only other to say that callables, in particular, are nearly untradable.  Although some may debate this conversations with traders that have yard+ books suggests otherwise.  So does personal experience.

The irony is that swaps have ratcheted in despite extreme illiquidity and low volumes in liquid markets and a lack of swappable new issue calendar and where large money center banks can't procure all their funding needs.

Mind you, liquid Treasury market volumes at 50% of normal with most of the activity in year end window dressing bill space.  Bills are half the volume today.  Off the run Treasuries were performing horribly as of late, almost near LTCM type on the run/off the run "itis" which not only had the belly of the curve underperforming but also the off-the-runs in the belly (7yr) faring the worst.

Go figure that when the Fed announced the newest rung of buybacks  two weeks ago that they conveniently started with the 7yr sector and the off the runs.  Further, the decision by the Fed 48 hours ago to "clarify" that they can acquire up to 70% of any issue, conveniently served as a "stability" lip service boon to off the runs.  Recall, they recently relaxed the rule which limited purchases of any one issue to not exceed 35%.   Again, communicated with explicit tongue and cheek for the desired effect during year end illiquidity and carnage in dealer sheets, balance sheets.

I was asked earlier how to summerize trading themes of 2010.  Well, after looking at some notes and a walk down memory lane, I am reminded of Tiger woods being cited for "careless driving" and I have the official photo post "accident".  But as I look back to 12/09 is see headlines:

  • banks paying off TARP and windfall tax on bonus discussions, bank compensation changes, and Fannie and Freddie seeking more aid.  
  • Senate cleared health care measures for crucial test vote,
  • Greece may need to borrow $54 billion,
  • Fed economist calls for US Government MBS guarantees,
  • mining taxes, "retiree annuities" may be promoted,
  • protectionism,
  • Dubai CDS rising to record,
  • IMF selling gold reserves (hey announced again this morning),
  • largest CMBS Stuytown default,
  • Buffet's rail purchase.
  • Vix surge 30%,
  • Crises may force EU to buy govt bonds,
  • ECB bond purchases,
  • Estonia wins EU commission backing to adopt Euro :),
  • Spanish Central bank takes control of CAJASUR,
  • guest bartending (oops),
  • Build America bonds,
  • bond sales fall to least in decade,
  • jingle mail and voluntary foreclosure website,
  • Swiss intervention to buy Euros and CHF,
  • Jim Rogers buys Euros,
  • Hindenburg,
  • Apple.       
  • All Spanish banks pass stress test,
  • IMF says financial system may need $76 billion,
  • banks profits down-squeeze in trading profits,
  • new Basil capital rules,
  • Fed mulls symbolic shift,
  • Treasury buybacks! 
  • SOMA account,
  • Social Security cuts weighed,
  • FLASH CRASH, 
  • Fidelity sees record numbers raid 401ks,
  • PIIGS,
  • Muni crises,
  • Gold,
  • Petrobras,
  • GM,
  • Dubai holdings,
  • Rabo 100 year deal.
  • Summer resigns from White House,
  • Axelrod resigns from White House,
  • Rahm Emmanuel resings from White House.
  • Walmart midnight food stamp sales,
  • Fed investigates what constitutes a prop trade,
  • Fabrizio on the hill:CDOs,
  • Stanly Druckenmiller is leaving,
  • QE2,
  • Mexico 100 year bonds at 6.1%,
  • all time low yields in front end Tsys,
  • steepest curve,
  • stop bashing business:Ken Langone/Charles Schwab/Jeff Immelt,
  • Fed assets rise to $2.1 trillion.
  • Fed weighs new stimulus plan AGAIN,
  • Fed credibility,
  • Bernanke 60 minutes,
  • State bailouts,
  • Fed lifs self imposed Treasury limits,
  • Wall Street II, the movie, 
  • $110 oil call,
  • Iran switches 15% reserves to gold,
  • the search for a new currency system,
  • China tightens,
  • IMF reduces dollar weight,
  • China to curb food/cotton prices,
  • Warren Buffet writes "thank you" letter to Uncle Sam,
  • Philli GOs muni debt cut to A2,
  • Fed debates mandate from three to two to???,
  • bond vigalantes ride again! 
  • China should stop buying Treasuries.
  • Irish bank haircuts,
  • pay freeze for Government,
  • Wikileaks,
  • 99 week streak of bond inflows broken,
  • Portugal debt rating cut,
  • 6 buybacks in 5 days,
  • CyberMonday sales up 35%,
  • Seoul threatens air strikes,
  • extension of tax cuts, omnibus spending bill scrapped,
  • France's AAA grade at risk of ratings cuts,
  • Fed expands swap lines.

Given the rudimentary walk down memory lane above, I think themes have come full circle.  So the answer to the question of what were the main themes in the market is ...............valuations in equities, credit spreads, sovereign spreads, exchange rates, mortgage interest costs, bank earnings, net interest margin, accounting schemes, tax code, debt ceiling and more are all related.  Related to the ebb and flow of monetary and fiscal policy aspiring to make adjustments to imbalances caused by earlier failed fiscal and monetary policies.  How, circular indeed. 

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 12/23/2010 - 00:50 | Link to Comment Azwethinkweiz
Azwethinkweiz's picture

Double double (dip) bitchez

 

animal style!

Thu, 12/23/2010 - 00:59 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

Lesson from 2010: Buy the effin' dip!!

Thu, 12/23/2010 - 03:08 | Link to Comment jeff montanye
jeff montanye's picture

not in bonds: sell the top (late august).  what's that you say?  does the bond market lead the stock market?  at times.

Thu, 12/23/2010 - 04:09 | Link to Comment e_goldstein
e_goldstein's picture

Buy the EFFIN' dip, douchbags...

all of western civilization hangs on You, buying the dip.

btw, merry fucking christmas everyone.

Thu, 12/23/2010 - 01:01 | Link to Comment Cursive
Cursive's picture

blue pill >>>>>>>>>>>> red pill

   beta   >>>>>>>>>>>> alpha

    now   >>>>>>>>>>>> later

Thu, 12/23/2010 - 01:51 | Link to Comment Red Neck Repugnicant
Red Neck Repugnicant's picture

 

Obviously, the biggest story of 2010 is my amazing ability to predict market movements, often in the face of severe ridicule and opposition.  You don't understand how much courage it takes to post my thoughts around here, as I get junked into the stratosphere on a daily basis. There is only one other Man in human history that has faced as much oppression as me, and His enduring spirit gives me great strength. If I must wear the crown of thorns in the ZH community then I will, but just remember the holy words of Ephesians 4:31-32:

Let all bitterness and wrath and anger and clamor and slander be put away from you, along with all malice. Be kind to one another, tenderhearted, forgiving one another, as God in Christ forgave you.

The second biggest story of 2010 is one that touches many of the readers here at ZeroHedge:  The Glenn Beck/Goldline Fraud.  Since many of you are passionate Glenn Beck supporters, I can only hope that you haven't been victimized by this media wing-nut with crocodile tears.  While everyone understands and accepts that QE2 was the work of American Unions, not everyone understands the lunacy of buying a 20 franc French rooster (Goldline's most popular coin) at 200% market value.   

This past summer, Business Insider did some investigative work into Glenn Beck that deserves accolades from the Scripps Foundation.

Rather than giving a synopsis of the crime, here is a link to an easy-to-read flow chart on how the scam works:

http://www.businessinsider.com/everything-you-need-to-know-about-the-gle...

Faith/Family/Flag 2012

 

Thu, 12/23/2010 - 02:20 | Link to Comment Burnbright
Burnbright's picture

Rather than giving a synopsis of the crime, here is a link to an easy-to-read flow chart on how the scam works:

Very nice touch of satire their. 

Thu, 12/23/2010 - 05:58 | Link to Comment Chappaquiddick
Chappaquiddick's picture

Faux (**cough**  **cough**) - Happy Birthday.   +1

Thu, 12/23/2010 - 07:01 | Link to Comment nmewn
nmewn's picture

"If I must wear the crown of thorns in the ZH community then I will,..." 

Appointing yourself messiah status amongst the statist faithful who post here at ZH?...LOL.

They will approach the ACLU and sue you to have those praying to you stopped...then there is the other alternative.

Good luck with that ;-)

 

Thu, 12/23/2010 - 08:55 | Link to Comment Black Friday
Black Friday's picture

LMFAO!

You Sir Redneck, have just won the intrawebz with this most awesomely and ultimate post of utter trollification I have ever seen.

Fri, 12/24/2010 - 02:26 | Link to Comment RockyRacoon
RockyRacoon's picture

It appears that the wheels have come off his chariot.

Thu, 12/23/2010 - 11:13 | Link to Comment ZeroPower
ZeroPower's picture

beta   >>>>>>>>>>>> alpha

What? Beta is 'better' than alpha??

Thu, 12/23/2010 - 01:05 | Link to Comment Milton Waddams
Milton Waddams's picture

Sung to the tune of Piano Man

It's eight o'clock on a Monday,
the Wall Street crowd shuffles in.
There's a banker sitting next to me,
makin' love to his TARP and economic spin.

He says Ben, can you blow me a bubble?
I'm certain your academic training knows how it goes.
But it must be enormous and hazardous and I knew it complete,
When Greenspan was at the controls.

Huff huff hufffff puff puff puffffff
Huff Huffffff puff puff puff pufffff

Blow us a bubble, you're The Bernanke, man.
Blow it for us right now.
We're all in the mood for record bonuses,
and you've certainly got us kowtowed.

Now Tim at the Treasury is a friend of mine.
His endorsement allows me to issue money for free.
And he's quick with the cash or to help you evade your tax,
but there's someplace that he'd rather be.

He says, Ben, if I had a conscious it'd be killing me,
as the frown ran away from his face.
Well I'm sure I could be an oligarch,
if I could get to seriously looting this place.

Huff huff hufffff puff puff puffffff
Huff Huffffff puff puff puff pufffff

Now Lloyd is a CEO of an investment bank,
who is doing god's work for life.
And he's talking with Bernie, who is in the clink,
and probably will be until he fake dies.

And the unemployed are watching D-list celebrities dance,
as the small business man struggles for a loan.
Yes they're sharing in the gutting of the middle class,
but it's better than suffering alone.

Blow us a bubble, you're The Bernanke, man.
Blow it for us right now.
We're all in the mood for record bonuses,
and you've certainly got us kowtowed.

It's a pretty good rally for a Monday morning,
and the SEC gives me a smile.
Cause it knows that it's me that issues money for free,
to paper over the depression for a while.

And the money printer,
it churns into the midnight hour.
As the bond vigilantes respond with ire.
And they trade their paper regardless,
as they continue to extoll my great power.

Huff huff hufffff puff puff puffffff
Huff Huffffff puff puff puff pufffff

Blow us a bubble, you're The Bernanke, man.
Blow it for us right now.
We're all in the mood for record bonuses,
and you've certainly got us kowtowed.

Thu, 12/23/2010 - 01:28 | Link to Comment homersimpson
homersimpson's picture

I think more appropriate songs would've been "I go to Extremes," "Pressure," or "Big Shot." Nevertheless, good job, tho'...

Thu, 12/23/2010 - 01:34 | Link to Comment bonin006
bonin006's picture

Excellent!

Thu, 12/23/2010 - 01:51 | Link to Comment gwar5
gwar5's picture

Nice!

Thu, 12/23/2010 - 02:01 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Great. Another appropriate tune for the Bernank: "(You take my) self-control" 

 

Thu, 12/23/2010 - 08:41 | Link to Comment duo
duo's picture

Ben Bernank lies in bed looking at a ceiling fan.....

Whop whop whop whop whop whop

[Doors guitar licks play]

"Extend and pretend,

my only friend, extend"

Thu, 12/23/2010 - 14:43 | Link to Comment MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

+1

Thu, 12/23/2010 - 01:14 | Link to Comment westboundnup
westboundnup's picture

LATOC discussion forum (Doomers) gives up the ghost.  Aside from ZH, anyone have any forums they'd recommend?

Thu, 12/23/2010 - 03:15 | Link to Comment jeff montanye
jeff montanye's picture

there's a list to the left.  imo jesse's is great.  john hussman is too (he's not there because he runs money on his site, sort of).

Thu, 12/23/2010 - 09:42 | Link to Comment westboundnup
westboundnup's picture

Thanks.  I should have seen it before.

Thu, 12/23/2010 - 10:35 | Link to Comment Brindle702
Brindle702's picture

I can't believe he would rather do astrology.  A shame really.  His aggregation of news was a thing of beauty.

Thu, 12/23/2010 - 01:24 | Link to Comment homersimpson
homersimpson's picture

I'm sure Robo, Harry, Trimmed Hedge, and other hopium addicts got a hard on reading the section after "But as I look back to 12/09 is see headlines"..

If you're blind enough to really believe the economy is getting better just because of some overly-manipulated stock market number, you're probably dumb enough to believe Blankfein is doing God's work.

It took 4 over years for the market to rise from 10k to about 14k... and only 9 months to drop back down to 6500.

In other words, economic recovery my arse. I never heard of economic recoveries requiring 24/7 money printing and trillions of deficit dollars.

Thu, 12/23/2010 - 01:33 | Link to Comment Trimmed Hedge
Trimmed Hedge's picture

I'm doing fine, shrug.

In fact, my net worth is hovering around all-time highs. I guess I have hard work and foresight to thank for that, at least in part.

 

You know, it's almost comical, but many here know exactly what's going on (e.g., Benny printing 24/7 to fill that black hole) -- yet many here also refuse to profit it from it due to blinders, stubborness, pride, fear, who knows what.

 

God, imagine if ZH were around during the '30s....

Thu, 12/23/2010 - 03:25 | Link to Comment jeff montanye
jeff montanye's picture

i'm with you through the shrug, the hard work and the foresight, the comical refusal to profit via blinders, pride, other sins.

but what if zh were around during the '30's...?  it would have... been a feel-good stock equity and real estate bull and gold bear?  would have lengthened the depression by its even longer investment face?  what??

Thu, 12/23/2010 - 07:50 | Link to Comment LeBalance
LeBalance's picture

Net worth by what measurement standard?

Thu, 12/23/2010 - 08:50 | Link to Comment Implicit simplicit
Implicit simplicit's picture

-how much more money one has by by defaulting

Thu, 12/23/2010 - 01:35 | Link to Comment Wave-Tech
Wave-Tech's picture

MARKET FORECASTS FOR 2011 AND BEYOND

Just think if back in 1974 someone had told you that in the year 2008 there will be a significant turning point in the stock market. You would have thought they were mad. But low and behold, just three months following the end of 2008, a major turning point for the stock market was indeed established. Not bad for a general forecast made some 34-years in advance.

http://elliottwavetechnology.blogspot.com/2010_12_20_archive.html

before jumping to conclusions, read the entire piece, which includes part-I below:

Elliott Wave, the Next Generation part I
http://elliottwavetechnology.blogspot.com/2010_12_19_archive

 

Thu, 12/23/2010 - 03:53 | Link to Comment jeff montanye
jeff montanye's picture

or, behold, just two months before the beginning of 2008, a major turning point for the stock market was indeed established.  i mean from 1974 the parallax is quite exquisite; doesn't take much of a wobble to throw the whole thing off.  

question (the answer to which is, almost certainly, because i don't understand elliot wave, which is certainly true):  if this is a bear market of elliot supercycle dimension (and we obviously have hit the end of the (private) credit cycle -- no wait stop the fundie analytics) why do all his chart price channels go up?  no chance the double top of 2000-2007 was it and any price channel that uses data from the 80's as part of that up channel is missing the boat?

Thu, 12/23/2010 - 01:42 | Link to Comment The Answer Is 42
The Answer Is 42's picture

But what's the question?

Thu, 12/23/2010 - 01:43 | Link to Comment tom a taxpayer
tom a taxpayer's picture

Russ Certo: "Given the rudimentary walk down memory lane above, I think themes have come full circle... Related to the ebb and flow of monetary and fiscal policy aspiring to make adjustments to imbalances caused by earlier failed fiscal and monetary policies.  How, circular indeed."

Tyler Durden: "In other words, not only does history not only rhyme, but chases its tail, and the more things change, the more absolutely nothing has changed."

James Joyce: "riverrun, past Eve and Adam's, from swerve of shore to bend of bay, brings us by a commodious vicus of recirculation back to Howth Castle and Environs."

For additional "must read piece of introspection", try James Joyce's Finnegans Wake:

"The fall (bababadalgharaghtakamminarronnkonnbronntonnerronntuonnthunntrovarrhounawnskawntoohoohoordenenthur-nuk!) of a once wallstrait oldparr is retaled early in bed and later on life down through all christian minstrelsy. The great fall of the offwall entailed at such short notice the pftjschute of Finnegan, erse solid man, that the humptyhillhead of humself prumptly sends an unquiring one well to the west in quest of his tumptytumtoes:

and their upturnpikepointandplace is at the knock out in the park where oranges have been laid to rust upon the green since devlinsfirst loved livvy."

Thu, 12/23/2010 - 01:52 | Link to Comment Croesus
Croesus's picture

I would consider this one a Must Read, for anyone long physical silver:

http://news.silverseek.com/SilverSeek/1293027946.php

 

Thu, 12/23/2010 - 02:04 | Link to Comment gwar5
gwar5's picture

Yes I saw that earlier. Show Stopper indeed. 

Thu, 12/23/2010 - 02:03 | Link to Comment gwar5
gwar5's picture

The bankers got the only parachutes and are safe and sound on this troubled flight. They're trying to guide us in by remote control without having done it before and with none of their own skin in the game.

 

Thu, 12/23/2010 - 02:11 | Link to Comment MOAB
MOAB's picture

It was coming from everywhere all year. bernanke must be twitchin like a squirrel.

Its gonna get better.

Thu, 12/23/2010 - 02:15 | Link to Comment Caviar Emptor
Caviar Emptor's picture

The Big Trend 2010 was: the rise of obliviousness to bad news, deterioration and rot. Way back in 08, when we quaintly allowed the market be free, there was a thing known as 'fear'. It, along with 'greed', was supposed to be the cardinal determinant of investing. Ha! How silly we were.

Then sometime in 2010 we came across the Spoon Boy from The Matrix who let us in on the secret:

Spoon Boy: "Do not try to interpret the market. That would be impossible. Only try to realize the truth.

Neo: "What truth?"

Spoon Boy: "There is no market"

Neo: "There is no market?"

Spoon Boy: " Then you'll see that it is not the market that fluctuates, it is only The Bernank"

Thu, 12/23/2010 - 14:27 | Link to Comment zero-g
zero-g's picture

Nice!

Thu, 12/23/2010 - 02:21 | Link to Comment wisefool
wisefool's picture

As others have mentioned, it is time for us to move on. The "Fight Club"/"Bernakes penis" imagery was right and fitting for this phase of the economy (pre 2011). But we really do need to go onto the Children of Men/Clive Barker/Blankenfeld stylisms from here on out to stay relevant in this post POMO world.

Thu, 12/23/2010 - 03:47 | Link to Comment kevinearick
kevinearick's picture

In and Out Burger

++

Thu, 12/23/2010 - 04:23 | Link to Comment RobotTrader
RobotTrader's picture

Biggest memories of 2010:

1) Many bears were utterly destroyed trying to fight the tape.

2) Many gold bugs were sorely disappointed in the performance of gold stocks

3) Unintended consequences of trillion dollar "POMO" print-a-thon:  Epic rally in overvalued tech stocks and retail stocks.

Thu, 12/23/2010 - 07:24 | Link to Comment nmewn
nmewn's picture

Gyrations bitchez.

Thu, 12/23/2010 - 08:42 | Link to Comment Implicit simplicit
Implicit simplicit's picture

Laws of gravity apply to all infated assets.

the wheels go round and round

tainted banksters go up and down

we're all captured on the carousel of time=decay

Thu, 12/23/2010 - 16:17 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Robo,  I wasn't disappointed in the performance of my PM stocks or PMs.  I feel my reward/risk greatly out-weighed that of tech stocks.  Just because tech and retail stocks rose in 2010 that does not mean that 2011 will be great for them.  I have no intention of changing my course.

 

You have a habit of showing charts after the fact.  How about some predictions for 2011.

Thu, 12/23/2010 - 04:27 | Link to Comment ebworthen
ebworthen's picture

2010?  Reaffirmation that failure is o.k., even desirable, as long as you are not an individual.

Thu, 12/23/2010 - 05:50 | Link to Comment erik
erik's picture

Memory of 2010 will be the day the Federal Reserve sunk the stake into their own heart.

Nov 4th.

QE2 will be remembered in infamy.

Thu, 12/23/2010 - 10:14 | Link to Comment pan-the-ist
pan-the-ist's picture

This took a while to sink in for me.  The game is over. It has been over for a long time, long before QE2.  QE2 was "their" attempt at stretching the tarp to try to keep the truthcovered up.  Unfortunately, the tarp is becoming threadbare and soon it will rip open and fall apart ($4-$5 dollar gas will do it).  Now is the time to be schizo and enjoy "the good old days" before the new normal really sets in.

When the hard working people who saved and lived within their means find out that their retirement has been looted, all hell will break loose.

They will try and channel that anger towardminorities, the poor, and foreigners-- as they always have, and will be quite successful.

I hope the middle class will one day wake up and see who the enemy is, just like they did after they last depression, but I have my doubts.

Thu, 12/23/2010 - 11:18 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

The way that evil men destroy liberty and commerce is through banking. Whether money lending or money changing, it has always been so.  Socialism is a foil to disguise the underlying rot. Go to Plimoth Plantation sometime and hear first hand how it worked in a societal petrie dish. They tried it both ways, and collectivism almost led to failure by starvation. I surmise you tend left, and I am not disagreeing with your statement. Weimar showed the base instincts that emerge in a financial crisis run amok. The left will agitate and lose, those remaining will embrace the machine and create a hybrid menace. As we all see, the Democrat machine is not the vehicle the left thought they were getting any more than the coopted Tea Party is for the Libertarians. 

Thu, 12/23/2010 - 07:32 | Link to Comment Bob Sacamano
Bob Sacamano's picture

I think the more simple explanation is:  Government prints LOTS of money, then price of just about everything goes up - corn, cotton, sugar, copper, coffee, gold, silver, stocks, bonds, etc, etc.  

Not that complicated.

 

Thu, 12/23/2010 - 08:18 | Link to Comment Monday1929
Monday1929's picture

If the China/silver short connection is true, yet another reason to try Jamie Dimon for treason.

Thu, 12/23/2010 - 08:45 | Link to Comment Liars Poker
Liars Poker's picture

Has anyone signed up for www.nacocapital.com 's trading strategy?

Thu, 12/23/2010 - 10:01 | Link to Comment Sisyphus
Sisyphus's picture

Dude, if you quote someone, at least get his/her name correct. It is Gandhi and not Ghandi.

Thu, 12/23/2010 - 08:45 | Link to Comment johnnymustardseed
johnnymustardseed's picture

HI O SILVER!

Thu, 12/23/2010 - 09:18 | Link to Comment Oh regional Indian
Oh regional Indian's picture

A quick look at Time Wave Zero will tell you pretty much what we can expect come 2011, 2012...

Brutal de-construction of societal ideals held over from various "formative" decades in the last century all coming to meet their maker in  this dreadful decade of 2000-2010.

People disappointed with what is coming are all those who cannot embrace volatility and change. 

Volatility and change. The themes for the coming decade.

Genuine innovation. Necessity being it's mother an all that god stuff. 

Bye bye governance, hello fascism.

Energy Shocks a coming and it will hit in 2011. 

Get your war on. To think we can avoid it is just being un-prepared.

Massive, global weather pattern shifts. We are already seeing early signs of the same.

Food shortages, world over. 

The meek will inherit the earth while the geek dies trying.

Butlerian jihad begins in earnest. yup, I'll dump this machine and you'll be free of my commentary, soon enough.

The positive trends are all in their infancy as the death throes of the excesses of the industrial revolution will thrash the system for a few more years yet. 1 or 2, who can tell.

So much more the tea leaves tell....

ORI

http://aadivaahan.wordpress.com

Thu, 12/23/2010 - 10:19 | Link to Comment Green Leader
Green Leader's picture

Very smart, once again.

I hope 2011 brings you a colorful avatar.

GL

Thu, 12/23/2010 - 10:44 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Gracias GL.

I hope we get to be more real and less virtual.

Then, being colourful will really be/mean something, eh?

ORI

Thu, 12/23/2010 - 11:02 | Link to Comment Green Leader
Green Leader's picture

Being colorful & distinctive will help others locate your posts. That's it.

We shall meet sometime this 2011...

GL

 

Thu, 12/23/2010 - 13:39 | Link to Comment tamboo
tamboo's picture

don't forget the next big cash cow:
fake little green men.

Q: FROM YOUR PERSPECTIVE, THE GREATEST SECRET THAT WERNER VON BRAUN WOULD BE HIDING WOULD BE THE FACT THAT THE EXTRATERRESTRIAL BIOLOGICAL ENTITY IS A REALITY. BUT HIS CONCERN WAS THAT INSTEAD OF BEING HONEST ABOUT ITS MOTIVATION, THAT THE U. S. WOULD ULTIMATELY USE ETs AS ANOTHER THREAT IN ORDER TO PERPETUATE BUDGETS FOR THE PENTAGON?

Not just for the Pentagon, but aerospace industries, labs, universities and anyone else who has a job and makes a profit from keeping this a secret. Although most of the people in the industry don't even know there is this big secret of all time – and yes, you have articulated this very beautifully. You are not at all putting words in my mouth – that's exactly what I'm saying.

http://www.nancyredstar.com/wmd/Anti_Satellite.htm

Thu, 12/23/2010 - 10:21 | Link to Comment pan-the-ist
pan-the-ist's picture

The nose is already on the beasts neck.  Any struggles it makes will only serve to tighten it and bring death that much quicker.

Thu, 12/23/2010 - 10:50 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Indeed pan.
And death does become it, wouldn't you say?

ORI

Thu, 12/23/2010 - 10:39 | Link to Comment Saturn_ls1
Saturn_ls1's picture

Sovereign Intervention = Currency Fog = Economic Uncertainty =
Capital Hoarding = No Jobs = Sovereign Intervention = Currency Fog = Economic Uncertainty = Capital Hoarding = No Jobs  = Sovereign Intervention …

Do NOT follow this link or you will be banned from the site!