There is a direct correlation between complacency and market crashes as well as size of the bubble and size of the crash. Given the ridiculous levels world and US stock and fixed income markets as well as industrial metals, the size of the crash will be one to be reckoned with.
Even Goldman which has lost its reputation by those who still foolishly respected it, rose today. This company will at the least lose a whole bunch of business both due to reputation and they will have to remain a little less fraudulent the next few weeks or months so as not to be completely shutdown. And as Goldman cannot make money without corruption and fraud, this company other than lying in its reports should disappoint in earnings. Of course they and the Fed could try to manufacture a small market downturn to scare the government off from shutting it down or auditing the Fed.
Monday, April 19, 2010
Dick Bove And Enron
On the market and Goldman cheerleader channel, CNBC, today Dick Bove came out saying that the SEC is creating a new financial crisis and it shouldn't.
One question Dick: Should we have let Enron go free just not to create a financial crisis????
What kind of logic is this? You are so shallow, Dick. And so transparent. Everybody knows what you are doing and whose payroll you are on. Since when bringing justice is a bad thing? We should be questioning SEC why they did not do this long time ago and why they are not still doing much more on topics like mark-to-market and other accounting gimmicks Goldman uses to hide that it is way insolvent. It is much worse than Enron.
CNBC and Dick Bove once again showed what they are made of.
One question Dick: Should we have let Enron go free just not to create a financial crisis????
What kind of logic is this? You are so shallow, Dick. And so transparent. Everybody knows what you are doing and whose payroll you are on. Since when bringing justice is a bad thing? We should be questioning SEC why they did not do this long time ago and why they are not still doing much more on topics like mark-to-market and other accounting gimmicks Goldman uses to hide that it is way insolvent. It is much worse than Enron.
CNBC and Dick Bove once again showed what they are made of.
Sunday, April 18, 2010
CNBC Ex-Goldman Disgraces To Journalism Are Next In Fraud Charges
If the Goldman case goes anywhere, one of the next steps will be investigations into Cramer and the other speakers such as Erin Burnett or Mario Bartiromo and how they might have been involved in market manipulation schemes with Goldman as well as others. These people are rude and a disgrace to journalism and CNBC should be getting rid of them or should be shut down. The emails and phone conversations of these people should be monitored in the future and for past misconduct.
Here is a similar article from Zerohedge:
http://www.zerohedge.com/article/cnbc-guest-tells-truth-calls-cramer-shallow-yanked-air
Here is a similar article from Zerohedge:
http://www.zerohedge.com/article/cnbc-guest-tells-truth-calls-cramer-shallow-yanked-air
Goldman Is Finally Getting Recognition For What A Fraud It Is
For all those doubters and people who did not believe Goldman was a fraud and said that they were just so smart, the recent news showed how "smart" they are. They are smart in a corrupt way. This has to go somewhere one would hope, but given their corrupt people are everywhere and they corruptly spend our, taxpayers', money on their corruption we know they will try to spend it again to get out of this in a corrupt way. They will try to blame the stupid little peon, the fabulous fab, to jail saying he is the one behind the corruption and try to get out of it. Everybody knows a VP decides on nothing and a 15-20 million dollar deal goes through the MDs if not through the higher up people. Considering John Paulson was involved, we can safely assumed a lot of high level Goldman people were involved. We'll see if that comes out.
Goldman needs to be shut down as it is both corrupt and insolvent.
Goldman needs to be shut down as it is both corrupt and insolvent.
Sunday, April 11, 2010
Handing Over The Blog
Hi,
For those of you who know me, I will no longer be doing the blog. I am handing it over to a friend to continue. The blog will continue, but I will not be the person behind it. I have full trust in the person who will be taking it over.
I wish all of you the best.
For those of you who know me, I will no longer be doing the blog. I am handing it over to a friend to continue. The blog will continue, but I will not be the person behind it. I have full trust in the person who will be taking it over.
I wish all of you the best.
Thursday, April 8, 2010
Sprott On IMF, Gold, Plunge Protection Team And Fed Supporting Equity Markets
There is a very good reason why the Fed does not want to be audited and why a lot of its hidden things are trying to be hidden away as "national security" issues.
Here is the link to Business Insider:
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Here is the link to Business Insider:
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Eric Sprott Talks To Us About Gold, GATA, The IMF, And The Plunge-Protection Team
Vince Veneziani | Apr. 7, 2010, 12:02 PM
Read more: http://www.businessinsider.com/eric-sprott-gold-etf-imf-2010-4#ixzz0kYJIG4wo
Yesterday, we published an article about how the IMF wouldn't sell investor Eric Sprott any of the remaining 191.3 tonnes of gold it had left.
Of course we want to hear all sides of the story, so today we spoke with Mr. Eric Sprott himself on the matter.
Sprott says that around six weeks ago while in the process of selling the gold trust ETF, he approached the IMF about buying some of the gold they were selling. And why not? If there's a buyer and seller, it's a market. Sprott originally wanted to buy only a portion of the available gold for sale but later decided it'd be interesting to see what the IMF would do or say if he tried to buy the whole lot of it.
Says Sprott, "I was prepared to get the bazooka."
But ultimately, there was no way the IMF was going to deal with Mr. Sprott's interests. If the IMF wants to sell gold, then it should clearly explain on what terms without making vague references like "phasing out" sales over time. Phase out could mean anything to 2 tonnes per month to 50 tonnes per year. It's unclear and that creates distortion in the investment world.
On the state of the gold market, Sprott says the following:
We spoke with Alistair Thomson of the IMF and he clearly explained his reasonings behind not being able to sell Mr. Sprott gold.
Among them:
- The IFM only goes through a specific broker.
- It only sells gold to sovereigns.
- Thus, Sprott's desire to purchase IMF gold did not comply with 'protocol'.
Of course we want to hear all sides of the story, so today we spoke with Mr. Eric Sprott himself on the matter.
Sprott says that around six weeks ago while in the process of selling the gold trust ETF, he approached the IMF about buying some of the gold they were selling. And why not? If there's a buyer and seller, it's a market. Sprott originally wanted to buy only a portion of the available gold for sale but later decided it'd be interesting to see what the IMF would do or say if he tried to buy the whole lot of it.
Says Sprott, "I was prepared to get the bazooka."
But ultimately, there was no way the IMF was going to deal with Mr. Sprott's interests. If the IMF wants to sell gold, then it should clearly explain on what terms without making vague references like "phasing out" sales over time. Phase out could mean anything to 2 tonnes per month to 50 tonnes per year. It's unclear and that creates distortion in the investment world.
On the state of the gold market, Sprott says the following:
"I'm a 100% believer that central banks have suppressed the price of gold. I find it hilarious today that they have these programs to sell gold - it's of no use. It's one of the dumbest decisions in the last decade."
He wonders why the IMF is even selling gold. Gold is tangible and will always have value whereas money is just paper and at this point, digits on a screen. The IMF is going to spend the next few years bailing out nation after nation (PIIGS, anyone?), so why is it even selling gold?
Turning attention to Sprott's gold trust ETF (PHYS), he tells us that unlike State Street's SPDR gold ETF (GLD), the gold in his trust is readily available for physical settlement*. As for insurance: "All physical gold is held at the Royal Canadian Mint which has its own insurance procedures." Sounds good to us, unless of course another Die Hard With A Vengeance scenario goes down.
On a lark, we asked Sprott his views on the so-called "Plunge-Protection Team" or the Working Group On Financial Markets.
Turning attention to Sprott's gold trust ETF (PHYS), he tells us that unlike State Street's SPDR gold ETF (GLD), the gold in his trust is readily available for physical settlement*. As for insurance: "All physical gold is held at the Royal Canadian Mint which has its own insurance procedures." Sounds good to us, unless of course another Die Hard With A Vengeance scenario goes down.
On a lark, we asked Sprott his views on the so-called "Plunge-Protection Team" or the Working Group On Financial Markets.
His response was quite intriguing:
"The Fed bought $1.7 trillion in bonds in the bond market. Who knows how much they've put into equities? Look at March 9th. The PPT came into the market in the 1987 crash. When things are unstable, the PPT steps in."
And there you have it.
Read more: http://www.businessinsider.com/eric-sprott-gold-etf-imf-2010-4#ixzz0kYJIG4wo
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Market State
With one sentence the stockmarket is a castle in the air. As is the bond market, the US dollar, several industrial commodities such as steel. Steel for example is too high beyond demand and supply metrics similar to 2007 and people are not realizing that the reason for the steel price increase is that countries such as China are trying to get out of the dollar and would rather hold commodities than the paper as well as projects that have stopped in the past are continuing to be completed now that people have the illusion the crisis is over and credit is a little less frozen -at least in the senselessly risky areas, basically a time bomb- and demand seems to have picked up in the face of diminished production and inventory reduction by the iron ore and steel producers that were almost all going under last couple years due to over-leverage and too much debt. The same scenario is still going on and the crisis yet again around the corner any time. It actually is already here, but people don't want to see it and certain people just do not want you to see it. Those people include the banks, government, and mainstream media that is under the control of the prior.
Complacency and irresponsibility is hot and heavy and momentum trading is back with a vengeance. The crisis will be back with a vengeance, too. The market rally could possibly keep going and quite some distance, too, but at any point it can easily do another down 40-90% without a blink. I would not take this risk/reward structure even if it means I will miss out on some upside. The expected value is negative and the probability of it happening is higher than most people seem to realize. The system is broken and it is all downhill from now on. Of course it will not go without a fight, but gravity will win in the end. Do not get caught in this game of greater fool.
Complacency and irresponsibility is hot and heavy and momentum trading is back with a vengeance. The crisis will be back with a vengeance, too. The market rally could possibly keep going and quite some distance, too, but at any point it can easily do another down 40-90% without a blink. I would not take this risk/reward structure even if it means I will miss out on some upside. The expected value is negative and the probability of it happening is higher than most people seem to realize. The system is broken and it is all downhill from now on. Of course it will not go without a fight, but gravity will win in the end. Do not get caught in this game of greater fool.
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