Owners of high-growth, high-beta stocks could not find a buyer for any of their crap today some mid-afternoon shenanigans between AUDJPY, VIX, and more utterly useless Russian headlines meant those same owners of high-growth, high-beta stocks were beating buyers away with a shitty stick. Pandora is a great example of the chaos (today's swings down 2%, up 4%, down 11%, then up 6%) as today's action in the so-called "market" was anything but human. The buying panic lifted the S&P, Dow, and Trannies briefly into the green for April but very late-day weakness left only the Trannies green for April. We just hope the desperate BTFWWIII'ers didn't use up all their BTFTuesday ammo...
A ‘Perfect Storm’ of demography and debt will economically and financially doom almost every country on earth. It will be TEOTWAWKI – ‘The End Of The World As We Know It’. No, it’s not the end of life or even the end of civilization. However, when it’s all over, nothing will ever be the same and that includes the disappearance of much of the middle class. The good news - The storm won’t last forever. The bad news is there will be much more pain before it ends unless you make an effort to understand what’s happening and why.
So much hope, so much faith, so much euphoria that the early bounce in high beta crap, which sent biotechs by more than 3%, would finally stick... All for nothing.
We all know what will eventually unfold: another collapse, this one even worse than that of 2008. Until then, the fraud and fiction will continue. Everyone with a vested interest in stocks moving up will do everything they can to perpetuate this.
The fragility of our debt financed oil dependent just in time global supply chain system is beyond the comprehension of the average zombie American. They are too distracted by mass consuming the products dependent on that very same fragile scheme. They are clueless zombie-like dupes who believe $20 bills magically appear in ATMs, Funyuns and Cheetos miraculously materialize on Wal-Mart shelves, gasoline endlessly bubbles up from the ground into the hose they stick in their $40,000 monster SUVs “bought” with a 0% seven year loan from Ally Financial, and that enchanted plastic card with a magnetic strip empowers them to fulfill every craving like a zombie feeding on a dead carcass. However, the cracks in this delusionary foundation are visible for all to see.
Have you noticed the avalanche of IPOs in recent weeks? Remember the avalanche of IPOs in early 2000 and early 2007? John Hussman points out the inconvenient fact that 75% of the shitty recent IPOs lose money. Wall Street is dumping this crap on the muppets as fast as possible. They know it is late in the game and the party is just about over, but they will be dancing until the punchbowl is empty and everyone is puking in the bathroom. The lesson of history is that people never learn the lessons of history. Profits and cash flow matter in the long run. Accounting fraud and currency debasement have never sustained an economic system before and they won’t this time. Keep dancing if you choose, but you know the game is rigged and you aren’t part of the privileged rigger class.
"The USA is exhibiting pretty severe signs of that sclerosis in the demented behavior of its leaders in episodes such as the current unnecessary manufactured fiasco over Ukraine to the physical deterioration of our towns, roads, bridges, and all the plastic crap we managed to smear over the mutilated landscape to the comportment of our demoralized, mentally inert, drugged-up, tattoo-bedizened populace of twerking slobs."
One of the big problems in America today is that a lot of people simply do not seem to care about what they are doing anymore. The level of sloth, laziness and apathy that we are witnessing in this country is absolutely mind-numbing. Of course this is not true of everyone. There are still many Americans that are extremely hard working. But overall, it really appears that people are not taking as much pride in their work as they once did. Some of the examples below are quite funny; others are more than just a little bit disturbing. But they all have a common theme. Americans from all walks of life are simply giving up. Whether they are teachers, delivery people or fast food workers, the truth is that there are a whole lot of people out there that seem to have mentally checked out.
You know it's bad when... Italy's new prime minister Matteo Renzi has decided that around 1,500 non-essential government official cars will be sold off (via eBay). As La Repubblica reports, the cars (among them dozens of BMWs, Alfa Romeos, Lancias, nine Maseratis and a couple of Jaguars) have come to be a symbol of wasteful government spending. Renzi noted, via Twitter, "Why should an under-secretary have an official car? The undersecretary should go by foot."
When you ponder the implications of allowing a small group of powerful wealthy unaccountable men to control the currency of a nation over the last one hundred years, you understand why our public education system sucks. The average American has experienced a fourteen year recession caused by the monetary policies of the Federal Reserve. Our leaders could have learned the lesson of two Fed induced collapses in the space of eight years and voluntarily abandoned the policies of reckless credit expansion, instead embracing policies encouraging saving, capital investment and balanced budgets. They have chosen the same cure as the disease, which will lead to crisis, catastrophe and collapse.
The Idiot Savant has had more than enough. BDI has unequivocally decided to prick Big Bad Ben Bernanke's Bloviated Bubble Butt. I have outlined below seven fine needles and six sharp scalpels that I shall use to slice and slay his sorry sagging ass:
One upon a time everyone got a hearty chuckle when Obama declared, on the very first day of his ascension to the throne, that his administration would be the "most transparent in history." And if they didn't then, they certainly will now following news that it none other than Obama's own administration - made infamous for spying on everyone who uses electronic communication courtesy of one whistleblower - that it has refused a record number of Freedom of Information (don't laugh) requests on the basis of, drumroll, national security. So between the NSA, whose job is to ensure national security, and all those pesky meddlesome investigators, whose only curiosity is to peek behind the secrecy of the Obama administration, there should be precisely zero acts of terrorism on US soil. Like last year's Boston bombing for example. Oh wait...
With Russia's MICEX down another 2% today back at May 2010 lows (and Russian govt bond yields up to 9.41%), it appears investors are anything but confident that the worst is behind us in Ukraine. Russian stocks are -18% in the last 3 weeks. Perhaps the biggest tell is the German stock market which is now the worst-performing European stock market this year and back to lows seen in mid-December. Even the glorious safety of Portuguese stocks is fading in the last few days. Europe's VIX broke 22% - its highest in 5 weeks; and Europe's high-yield credit markets (which are rumored to be heavily biased long) are squeezing wider playing catch-up to stocks. Peripheral sovereigns don't give a crap in their manipulated illiquid way but Bund yields have sluped to 1.54% (lowest since July) - its tightest to US TSYs since 2006!
The world and their pet rabbit was convinced yesterday that today's jobs number was both the most-important-number-in-the-world and didn't matter (because whether it beat or missed it was bullish for stocks). Seconds after the release that appeared to be true as JPY instantly dragged stocks to record highs (and the USD up and bonds and gold down). However, trumped by confirmation that the taper is continuing, Gazprom warnings, Lavrov threats, and finally reports of a Russian invasion, stocks leaked lower to Tuesday's ramp-day closing levels. Thanks to some last-minute JPY and VIX banging, S&P closed green for the 15th of last 16 NFPs. Despite intraday volatility, the USD ended the week unchanged, gold +1%, silver -1.5% and Treasuries +14bps or so (its worst week in 6 months!). Credit markets continue to be non-believers (with the high-yield bond ETF plunging this week). Critically, after last night's default in China, Iron Ore and Copper futures were crushed and we suspect Sunday night's Asia open could see more fireworks.
There’s good propaganda and bad propaganda. Bad propaganda is generally crude, amateurish Judy Miller “mobile weapons lab-type” nonsense that figures that people are so stupid they’ll believe anything that appears in “the paper of record.” Good propaganda, on the other hand, uses factual, sometimes documented material in a coordinated campaign with the other major media to cobble-together a narrative that is credible, but false. The so called Fed’s transcripts, which were released last week, fall into the latter category... But while the conversations between the members are accurately recorded, they don’t tell the gist of the story or provide the context that’s needed to grasp the bigger picture. Instead, they’re used to portray the members of the Fed as affable, well-meaning bunglers who did the best they could in ‘very trying circumstances’. While this is effective propaganda, it’s basically a lie, mainly because it diverts attention from the Fed’s role in crashing the financial system, preventing the remedies that were needed from being implemented (nationalizing the giant Wall Street banks), and coercing Congress into approving gigantic, economy-killing bailouts which shifted trillions of dollars to insolvent financial institutions that should have been euthanized. What I’m saying is that the Fed’s transcripts are, perhaps, the greatest propaganda coup of our time.