Monday, May 9, 2011

Hey....This is My Elbow !

Some individuals are born knowing which part of their anatomy is their ass and which part is their elbow. Unfortunately many others are not. Sadly for most of us, many of this second group gravitate to politics and to government for their sustenance. Many of these traverse through life content to feast at the trough of the toils of others never knowing up from down, left from right and whether they are scratching their watch or winding their ass.

It seems a few around the globe are awakening from this stupor, this virus of idiocy, complicity, heck, put any adjective you want there as it has a high probability of being correct. Today the Wall Street Journal carried a piece by one such zombie who has woken from his trance and found his elbow. Finnish politician and True Finns party chair Timo Soini has penned a piece entitled Why I Won't Support More Bailouts.

"Europe is suffering from the economic gangrene of insolvency—both public and private. And unless we amputate that which cannot be saved, we risk poisoning the whole body."

Really Timo. You only now figured this out? Should I simply be happy you finally grew the onions to say this out loud. I shall give you the benefit of the doubt and offer congratulations and remind you to google search the word quarantine for this simple blog to see how many times I have harped on about this exact issue, INSOLVENCY !

"The official wisdom is that Greece, Ireland and Portugal have been hit by a liquidity crisis, so they needed a momentary infusion of capital, after which everything would return to normal. But this official version is a lie, one that takes the ordinary people of Europe for idiots. They deserve better from politics and their leaders."

Hmmm liquidity versus insolvency. I wonder where I have heard that before. Helllooo McFly !!

"At the risk of being accused of populism, we'll begin with the obvious: It is not the little guy that benefits. He is being milked and lied to in order to keep the insolvent system running. He is paid less and taxed more to provide the money needed to keep this Ponzi scheme going. Meanwhile, a kind of deadly symbiosis has developed between politicians and banks: Our political leaders borrow ever more money to pay off the banks, which return the favor by lending ever-more money back to our governments, keeping the scheme afloat. "

Ponzi scheme huh. Of course when you lie through your teeth spewing the propaganda you've been fed you're a prize winning journo on CNBC but when you're an idiot blogger (right Caruso-Cabrera?) and state the patently obvious you are just an asshole who doesn't have to justify your sources. You're an anarchist if you disagree with the elites version of socialism. Better yet, lets get tea bagger in chief Bob Pisani to chase down his expert network of crumb chasing ants on Wall St. to ask why the bailouts are so good and prevented catatophe and armageddon. How about we get yet more insight from the sociopaths at the top for their view.

Regular readers know I love and respect ol' Art Cashin but do you really think ol' Art can come out and speak the truth? You think he can state anything other than the party line that we gotta forgive, forget and move on? As bad as this all is its gets worse. Mr. Soini goes on to state;

"The money did not go to help indebted economies. It flowed through the European Central Bank and recipient states to the coffers of big banks and investment funds.

Further contrary to the official wisdom, the recipient states did not want such "help," not this way. The natural option for them was to admit insolvency and let failed private lenders, wherever they were based, eat their losses.

That was not to be. As former Finance Minister Brian Lenihan recently revealed, Ireland was forced to take the money. The same happened to Portuguese Prime Minister José Sócrates, although he may be less forthcoming than Mr. Lenihan about admitting it."

You catch that? They didn't want the help, they were forced to take it. A word comes to mind... its called extortion. But what would I know. I'm not from Harvard or any of the other financial sociopath factories.

I don't know much but this much I do know, the facade is crumbling. It has taken much longer than any of us ever could have thought possible but crumble it is. The temple is so rotten, so putrid, the rot so pervasive, that only the most brain dead among us can still deny it.

For those of you that have not done so I heartily suggest you read Strauss and Howe's The Fourth Turning. I would especially do so were I still working on Wall St.

Housekeeping notes;

Thursday of last week I was stopped out of my Darden position at $49.71 for a flat trade.

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 @ $96.70
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $98.25
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $52.60

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