Saturday, August 6, 2011

Schedule a Chat With Bernie

My apologies as I was away from my desk today playing in the Coaches vs Cancer Golf Tournament at Walnut Hills up in beautiful East Lansing Michigan. It was a beautiful day with a great turnout (there was a waiting list to participate). Mucho thanks to all the sponsors, especially lead sponsor and locally owned business Two Men and a Truck!!

I received an email recently from a long time reader asking about my spotty posting. A couple of reasons. My wife and I have had an absolute full calendar of late between work, family and friend commitments so please forgive me.

I find myself writing posts and then 2/3rds of the way through saying '"ta hell with it" and just hitting delete. I think many get sick of my ranting and raving but alas there is much to write about, think what the historians will write about my friends.... what they will write about Czar Napolitano and her See Something Say Something, and the Patriot Act and the Super Congress and the debt ceiling and the war on drugs and war on terror and the war on poverty ..... well.... you get the picture.

Besides all this, what, will people really miss a post from a simpleton idiot blogger? Well, lets just ask Tobias Levkovich, chief equity strategist of Citigroup who this morning on CNBC said, amidst all this turmoil in the markets the last thing you should be doing is listening to some blogger on the net.

Too funny Tobias. Should one be shocked a Wall St. equity strategist recommended investors and market followers avoid readers bloggers? Yes, Tobias one should ignore one of the few groups of people who actually saw things coming. Funny how a group of idiot bloggers can see that which crumb chasing, sell your wife and daughters into sex slavery for a bonus Wall Street chief strategists cannot. Too funny Tobias.

It appears that after the 500+ pt down day on Thursday we got that real 'rip your face off rally' some guest vegetable on CNBC was expecting the following day to the tune of 60 odd pts. Followed up by todays 600+ pt down down I would expect that he would be calling for yet another rip your face off rally.

Are you shocked to see oil tanking here?
Shocked to see bonds rallying here?
Global garage sale people.
Everyone in debt up to their eyeballs compliments of the greatest bubble the planet has ever seen. The credit bubble. An orgy of free money given to anyone and everyone. Forget about debt to produce but debt to consume. What would your granddad think of that now??!! Topped off by an Ivy league educated elite who simply piled more credit on top of any bad credit. (think 2+2=6 and you start to get their logic).
Welcome to the land where the smartest guys in the room, along with the full time meddlers in the economy have distorted things to such an extant as to make so much seem crazy. We live in a world built for mountains upon mountains upon mountains of debt. When that debt ceases to expand you have overcapacity. Just imagine what happens when it contracts. So just as Bernie Madoff needed new investors to fund his ponzi so to does sthe global ponzi needs more debt created to fund itself as well.
The debt, which is what credit is, remains and it either gets paid back or written off.
Just my opinion.

I heard today that billionaire David 'investing is easy' Tepper is dumping financials. Hmmm. Interesting to hear he is selling, considering that I was under the impression, via Mr. Tepper himself, that if the economy gets better -stocks go up, and if the economy gets worse - the Fed steps in and makes stocks go up. I may be an idiot blogger but I would think he would be buying given his prior dissertation. Anyway a word comes to mind right now.... charlatan.

I would counsel all members of the Fed and the ECB, heck Central bankers the world over to have schedule a chat with Bernie Madoff. This might be helpful because while early, it appears that the facade they lord over, also known as the Great Ponzi, is becoming more and more exposed by the day. Bernie knows all to well how the demise of a ponzi sheme progresses as it unravel and hence might be able to offer the genius bankers some kind words of comfort, if not of wisdom. Just a thought.

But what would I know as it is completely a liquidity issue and has nothing to do with solvency. Sure it doesn't, just keep repeating it over and over again Dorothy, there's no ponzi like a gov't sponsored ponzi, there's no ponzi like a gov't sponsored ponzi...

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