Thursday, December 10, 2009

The Krona, Aussie Dollar, and Euro.

The currency shares Swedish Krona, ticker FXS (chart above) looks eerily similar to the last time it topped out back in spring/summer 2008.

The currency shares Aussie dollar, ticker FXA, (chart above) also known as the commodity currency tired to take out it's summer of 08 highs and failed. Off the lows this one has been the stongest so easier game might be found with the Cdn $ or the Euro.

Speaking of the Euro, the currency shares, ticker FXE (chart above). Could this test the lower bounds of the channel near 130 and ultimately the 110-115 area? The upsloping trend line (green) has been broken, a break of 145 and things could get nasty quickly here.

Elsewhere, did you per chance catch former Federal Reserve Chairman and current window dressing economic recovery advisor to the White House Paul Volcker's comments to a business crowd in Britain the other day? You can read them here as hey were absolutely priceless, not to mention spot on.

The former US Federal Reserve chairman told an audience that included some of the world's most senior financiers that their industry's "single most important" contribution in the last 25 years has been automatic telling machines, which he said had at least proved "useful".

Echoing FSA chairman Lord Turner's comments that banks are "socially useless", Mr Volcker told delegates who had been discussing how to rebuild the financial system to "wake up". He said credit default swaps and collateralised debt obligations had taken the economy "right to the brink of disaster" and added that the economy had grown at "greater rates of speed" during the 1960s without such products.

When one stunned audience member suggested that Mr Volcker did not really mean bond markets and securitisations had contributed "nothing at all", he replied: "You can innovate as much as you like, but do it within a structure that doesn't put the whole economy at risk."

I love it. An ATM machine is your most significant contribution. Don't you just love the comment from the 'stunned audience member? Only a banker could be stunned by Mr. Volcker's comments. Only a banker could still be that oblivious at this point, content to suck on the crack pipe of their own hubris and self import. Well, okay politicians too! Only a banker could still be drunk on the kool aid of their own brilliance and oblivious to their role in the debacle. They just don't get it. Truly unfathomable. I have a hunch when the mood turns they will. Most likely by high tailing out of Dodge with a crowd of pitchforks close behind.

Now you must take all this in proper context as Mr. Volcker is simply a figurehead with no real say or influence. How I wish I were wrong on this count but facts are facts, he is a titular quota filler, nothing more. Cement heads Summers and Geithner are in charge or in the least carrying the water for their masters on Wall. St. Lord Blankfein, Duke Dimon and Sir Mack are in charge but don't take my word for it. Lord Blankfein still claims the bankers are doing God's work so who's to argue with Lord Lloyd.

Regarding my comments on Dubai World the other day and the debt implosion there, I omitted one very important aspect. Besides the fact that there is absolutely nothing to worry about with this happening its that Dubai still has debtors prisons for those that cannot pay their bills. How is that for the irony of ironies that a country with human rights record and laws that would make Vlad the Impaler blush and will jail any and all, 'cept royals, that stiff their creditors, now has the nerve to do just that, stiff everyone on a global basis. Remember now I have no sympathy for the moron bankers who lent these clowns the money but the irony of that situation was omitted in my haste to post. These 2 groups, Dubai World alongside Wall, Bay, and Lombard St. bankers, make fitting bedfellows. They deserve one another as a match made in hell.
Ahhh my friends, you just cannot make this shit up if you tried.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $12.06
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $6.05
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 1 unit Ultrashort Xinhua China ticker FXP @ $8.32
Long 1 unit Ultrashort Real Estate ticker SRS @ $9.82
Long 1 unit Direxion Tech 3X Bear ticker TYP @ $10.68
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $21.97
Short 1 unit i-shares Russell 2K ticker IWM @ $61.70 stop @ $63.80
Short 1 unit Vornado ticker VNO @ $68.30 stop @ $70.71

1 comment:

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