Russ Certo Shares A Market Update At A Time When Fundamentals No Longer Matter

Tyler Durden's picture

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bankrupt JPM buy silver's picture

if fundo's and tech ana's dont matter anymore...then what should we...ahhh fuck some silver

eigenvalue's picture

I would rather buy some ammo and then I can get anyone's silver for free.

Former Sheeple's picture


your life expectancy would be in free-fall at my place, as I invested heavily in brass, steel & lead - prior to purchasing silver. Free=ultimate price.

Scottj88's picture

And the good news just keeps roaring...

Buy physical silver!

And miners (instead of apple, not instead of physical)

mynhair's picture

Rise against the machines!  BTFD! 

Excuse me while I cough up a furrball....

Misean's picture

As if even hell freezing over could halt the chairsatan's printing presses.

TimmyM's picture

Nice job Russ. I am so glad you create these summaries while I am out fishing. I hope it pays off for you. Explore the line between defending financial oligarchs and free markets sometime. Tim

Hedgetard55's picture

Look at O'bama's deficit spending as a down payment on prosperity.


See Ben's printing as a bridge loan to get the financial system back on it's feet. We will actually make a profit on all the purchases Ben has made when he sells back to the market, just as Barack got us a profit in GM and AIG, and will on CHRYSLER as well. Bet on it.



How did I do Hamy?


Misean's picture

You say "downpayment on prosperity" as if it were some kind of future event, rather than what we are giddily skipping about in currently.

apberusdisvet's picture

Certo is right on; the best business to be in for the next decade will be in demolition of all the houses that have been empty, vandalized and/or destroyed, or those that will come on the market without buyers at any price.


PulauHantu29's picture



Last week, the Justice Department decided to end the criminal investigation of former Countrywide Financial CEO Angelo Mozilo. People close to the case say that the overall collapse in the mortgage market has made it too difficult to prosecute the actions of any one particular executive.

So, in other words, Mozilo got off for his role in creating the housing market bubble and sub-prime implosion that fed into the global financial meltdown of 2008, precisely because the meltdown was so large? Well, that’s certainly nice to hear, don’t you think?"

Rogerwilco's picture

To paraphrase Uncle Joe: One fraudulent loan is a crime, one million fraudulent loans are a statistic.

samsara's picture

 .....has made it too difficult to prosecute the actions of any one particular executive.

Imagine if they took that approach for the nuremberg trials?

JR's picture

Fantastic article. Thanks! Taking the scenario further... (excerpt)

Celente: ‘When the Money Stops Flowing Down to the Man in the Street, the Blood Starts Flowing in the Streets.’ | Mac Slavo SHTF Plan | February 26, 2011

Trend forecaster Gerald Celente, of the Trends Research Institute, says that the further expansion of government austerity measures and impoverishment of the majority of the world’s populace will lead to more violence, riots and revolutions.

In his latest Trend Alert® to subscribers, Celente discusses the revolutions breaking out in the middle east and provides a different reasoning than mainstream pundits and politicians for why it is happening and why it will spread to Europe and the US:

As we wrote before Tunisia and Egypt erupted, the outbreaks would go global and the reasons behind the unrest would be more about bread and butter issues than politics. As economies decline, unemployment rises, taxes are raised and services cut – while those at the top get richer and most everyone else gets poorer – revolutions will continue to spread.


But that’s not the way it’s being represented by the same people who didn’t see it coming. The media, pundits and politicians have misrepresented the historic geopolitical events that have occupied the news since the onset of the New Year. Virtually overnight, the revolutions have been glorified as courageous fights for freedom and liberty by democracy-hungry-masses.

But it is not hunger for democracy that drives them. Democracy, autocracy, theocracy, monarchy – right, center, left – it is mostly a gut issue…an empty gut issue. When the money stops flowing down to the man in the street, the blood starts flowing in the streets. It’s a simple equation. A few at the top have too much, and too many others have too little.


What’s Next

In response to the current Middle East uprisings, gold has broken above $1400 an ounce and Brent Crude climbed to $113 a barrel. There is no end in sight to market volatility. As the violence escalates and expands, the fallout will be felt around the world.


From the onset of the financial crisis that began in August 2007, and through the ensuing Panic of ’08, Washington, the Federal Reserve and central banks have managed to forestall a Great Depression-grade meltdown by way of a variety of multi-trillion dollar rescue packages, bailouts and stimulus programs. For three years the programs were able to induce an illusory and superficial recovery that, barring a major external geopolitical jolt, might have continued to run its course until the inevitable denouement.


But now the jolt felt around the world is in the process of shattering the recovery illusion. Whether deliberately (as calculated policy) or as fallout from fear-based denial, the pieces are not being put together. The current unrest is not confined to the Middle East and North Africa, and as we had forecast, it will spread to Europe and other parts of the world. The more volatile and widespread the insurrections, the greater the probability that some combination of events (e.g., oil shock, terror attack, cyber wars and regional wars) will crash already fragile economies, and roil sound ones.


Be Prepared

Conditions are spinning out of control. In some countries, bank and stock market closures are real possibilities, as is the imposition of martial law. We reiterate our forecast for gold $2000 (empasis mine). We recommend keeping cash and necessities on hand to help weather emergency situations. If the worst does not happen, nothing is lost. If the worst happens and you are not prepared, you are lost.

Source: The Trends Journal Subscriber Trend Alert (February 24, 2011)

Bob's picture

BoI has opened a RMB with the Bank of China, which will provide real time settlement with buyers and sellers across all provinces of China. The move is part of a campaign by the Hong Kong Monetary Authority, which has persuaded 100 foreign banks to enter into arrangements with Chinese banks for trade settlement in RMB.

Ignore that Chinaman behind the curtain. 

Bolweevil's picture

Russ, could you comment on the flash crash in the USDX at the open? Caveat: can't quote NYT or write anything IN ALL CAPS. Thank you.

Yen Cross's picture

There are 3 basic axioms in trading . ( fundemental, technical, and the Human element.) Not algo's. Trust me algo's get beat if you trade without stops.

Oh regional Indian's picture

As the US "law"makers struggle with the Debt-ceiling, they're going to find that it is the floor that is going to give way beneath them. Which is quite painful, even if much needed.

Paradigm inversion, all around.


tony bonn's picture

"Federal agencies are scrambling to figure out how to handle a shutdown of government"

that would be an improvement....the greedy and corrupt politicians have run out of other people's money to fund their re-elections with blovious spending programs....the plutocrat- whores of mammon have run this country into bankruptcy to feed their rapacious lusts....

the cocks have come home to roost....we have made our bed and now we will have to sleep in it....

and yet with all of this, the murderous obama regime still wants to sacrifice americans - something which he emphatically is not - to serve the corporate greed of his petro masters...


Lone Mad Minute Medic's picture

Is there an ETF that covers this situation?

andy55's picture

Thanks so much ZH for posting Russ Certo pieces. They've been outstanding and we wouldn't have access to them otherwise afaik.