Monday, January 31, 2011

More Evidence of Bizarro World

Just when you thought things couldn't be turned on their head any more than they already are you get news story that positively makes your head spin. This morning CNBC, provided just such a story as they had a session interviewing an American money manager who had flown to Egypt, via some other middle east country.

You wanna take a wild guess why said U.S. money manager went there?

He flew there to gallantly rescue his fiancee who was studying there and was trapped in the hostilities......WRONG!

He flew there to provide medical and humanitarian supplies to those desperately in need...... WRONG AGAIN!

No readers, this gem of a human flew there, as CNBC's interviewer Erin Burnett called it, "looking for the trade".

You're kidding right.
How deliciously pathetic.

I think I finally understand what Lloyd Blankfein meant by saying 'Goldman was doing God's work' now.Wall St.'s version of Gods work that is $$$ !

Actually I fully expect this vulture, whose name I happened to miss, to be running Treasury Dept. over at Goldman Sachs at some point. I am sure his parents must be so proud of his valor and honor to risk life and limb to make that next bonus cheque. Are you still wondering why I have zero respect for these crumb chasing maggots?

Actually, upon further reflection and consideration, there is nothing wrong with this cat and his decision to fly into a 'war zone' to make a buck. What he is doing is perfectly normal, it is I who in criticizing this 'out of the box thinker' who is "off his rocker". Someone please pass me the prozac, I need things to be better. 


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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Friday, January 28, 2011

Just Buy The Dip

One day does not make a trend. That said, on days like today in the market which can be unnerving, people need a reminder to stick with their plan. I hear it is quite easy you just don't fight the Fed, that and just buy the dip. CNBC tells me everyday over and over again.

So here it is in visual format. Enjoy

video

Random Thoughts on Nothing

Egypt
Internet shut down, curfew, tanks in the streets, police laying down uniforms and joining protesters yet our VP Biden claims Mubarek is not a dictator. Say what? This is what we consider our ally? With allies like this who needs enemies. Unfathomable.

My point here is should we be shocked people on the street think less of us when we support dictators and despots who loot, pillage and plunder yet we call people like Assange the bad guy. see next point as well.

Tunisia
yet another leader we support and consider an ally. Really? 
It appears that the Tunisia people are quite peeved as they have issued an international arrest warrant for former 'looter-in-chief Zine El Abidine Ben Ali and his family. It seems the people have not taken to kindly to reports that he fled the country to Saudi Arabia (France turned him down) with much of the nations store of gold bullion, 1.5 tonnes according to the French press. It seems there is most definitely a roaring bull market in hubris amongst the global ruling elite and their sense of entitlement.

My point here is that Ben Ali and his family should be lucky all the Tunisians issued was an arrest warrant and not dispatched a hit squad.



Institutionalized Fraud on Wall St.
I have railed against the epidemic of fraud that not only has infested Wall St. become has become standard operating procedure. A Wall St. that has become such a cess pool that a man like Charlie Merrill, founder of Merrill Lynch, would not even recognize it today. I worked at a boiler room for a brief stint, right at the beginning of my career and have said time and time again with unquestioned certainty that the only difference between these bucket shops or boiler room firms and the big bracket firms on Wall St. is simply the cufflinks, nothing more.

My point here is what I continue to find unfathomable is that so many on Wall St.stand idly by while it is overrun and infested by the maggots. How any of those thugs from Bear Stearns for example were able to find employment is beyond me and defies all logic, moral and mental. The senior statesmen of Wall St. are either inept, spineless or birds of a feather take your pick.



NFL Playoffs

I am a huge NFL fan. Parity, every game counts etc. I was rooting huge for the Bears, mainly because I adored the way Aaron Rodgers handled the Brett 'mirror mirror on the wall' Favre situation. I want to touch on the Jay Culter thing. These pros (like Jones-Drew) and analysts (like meat head Schlereth) tweeting and commenting how Cutler is gutless, quitter you name it. He was hurt and I applaud Urlacher for stepping up to defend Cutler. The issue I do have with Cutler is that during the 2nd half when he did not play he seemed to be sulking, withdrawn from the game. 

My point here is that Cutler should have been doing everything humanly possible to help first Collins and then, more importantly the novice Caleb Hanie. Cutler should have been right at Hanie's side acting as Hanie's personal assistant, one man cheerleader/pick me up, mentor, everything. In this regard Cutler failed miserably. Just one disgruntled Detroit Lion fans opinion.



Rahm Emmanuel 
Simply put......."Rules what rules? How dare you suggest they apply to someone like me. Don't you realize who I am?"

My point here is where theres a will theres a way and when the dead can vote, multiple times anything is possible right?



World Economic Forum
What more can one say about More Credit Less Crises other than keep the junkie's heroin flowing. Would you dare expect real solutions from such an auspicious event with so many BS's, MBS's and PhD's there.
BS = Bull Shit

MBS = More Bull Shit
PhD =  Piled Higher and Deeper or Poppa Has Dealership if you prefer.



My point here is I wish they would just hit the bars the brothels, enjoy the bender and be done with it. They've done enough carnage with their 'solutions'. No mas already, please!

Thursday, January 27, 2011

FCIC Conclusions Anticlimactic - Case Already Closed

It appears everyone is in a lather in anticipation of the conclusions of the Financial Crisis Inquiry Commission report. Not since the Warren Commission has a report been so widely anticipated. Sadly this is all a big nothing as this case has been already closed. 
 
For those not aware uber-expert, former FDIC chair and current member of my All Imbecile team William Isaac has already solved the mystery. 

Isaac's brilliant conclusion, for those still unaware, is that it was simply mark to market accounting. This conclusion is completely irrefutable so why waste any more breath on the subject. Too bad we had not embraced this earlier as it would have avoided all the expense associated with such an inquiry which would obviously trim some much needed fat off the budget deficit.

FCX

I have been watching Freeport McMoran for a few days now since my post FCX - Measured (bull) Move Over?  It sure does appear that da boyz grapped many by their ankles for a 'shake and bake'. This was accomplished via the move down Tuesday (actually a gap) thru the 107.50- 108 area (the shake) which looked to be a legit breakdown only to see a complete reversal yesterday of the prior days action.

I will be watching closely to see how FCX trades the first hour today, in particular how it reacts as it reaches the big gap down from a week ago.


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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Wednesday, January 26, 2011

Bill Isaac - All Imbecile Team's Newest Addition

It has been some time since the All Imbecile Team drafted uber imbecile Fredrick Mishkin to its ranks back in August this past summer. Not only was Mishkin an uber imbecile but a corrupt one at that via his undislosed renumeration agreement with Icelandic Chamber of Commerce (translation: banking cartel) in exchange for writing a glowing report on said cartels activities. But enough about Mishkin which you can read more about here if you wish, this post is devoted to the newest member to the All-Imbecile squad, one William Isaac. Isaac was the former FDIC chief during the Reagan years.

As an update to those new here the current All-Imbecile Team members include:

Ken Rosen from Cal Berkeley
Roger Farmer -professor UCLA
Alicia Munnell -professor Boston College
Paul Krugman professor Princeton
Allan 'the maestro' Greenspan - former Fed Chair **
Fredric Mishkin - former Fed governor

Why Bill Isaac you ask, decorated banker and financial know all? 

Well, it seems that the accounting rule makers have bowed down before their banking masters and look poised to defeat any proposals suggesting a return to mark to market accounting. Cooking the books is becoming quite the major growth industry in this country. Just as it was during the housing ponzi scheme was firing on all cylinders when legions of mortgage brokers played 'plug in the number to make it work' game with mortgage apps to get through the approval process. 

I know, I know I hear you saying it is a felony to lie on a mortgage application but the problem with this argument is that it assumes we reside in a land of laws that are enforced. Huge assumption readers.

So it comes with no shock that not only are insolvent banks are allowed to continue operating under suspended GAAP rules and traditional mark to market accounting, preferring instead to use cost numbers which I like to refer to as mark to fantasy or mark to make believe. This fantasyland can then be substituted in for real world numbers to show solvency to the sheeple as they head off for another tattoo thus enhancing profitability, provide bonus' to the top brass and sustain the illusion, but they have a former FDIC chairman available to carry their water for them. 

Did I tell you I love free market economics. 

Anyway, the decision today by the FASB as reported by the Wall Street Journal:


The Financial Accounting Standards Board preliminary vote would allow banks to continue valuing many of their loans at amortized cost, an adjusted version of their original cost, as they do now. That backtracks on an FASB proposal last May to expand fair value to bank loans. The reversal is a victory for the banking industry, which says it would have hurt lending and unfairly reduce banks' book value. Supporters of the FASB fair-value proposal say it would have improved transparency and unmasked potential weakness at banks.

The FASB indicated the overwhelmingly negative reaction to its proposal from companies and investors played a large role in prompting the board to change its mind. The board received more than 2,800 comment letters on its fair-value proposal, most of them opposed to the move.

FASB changed direction on how to value loans because of "strong signals from the board's constituents," FASB Chairman Leslie Seidman said during a webcast Tuesday. She also noted that some loans—including those that banks trade actively instead of retaining in order to collect the payments on them—will have to be valued at market prices.


It gets even better. The WSJ article continues with:

At some large banks, their loans' fair value is billions of dollars less than their carrying amount. That would dramatically reduce their shareholder equity—or assets minus liabilities—if the loans had to be carried at fair value.

Investors have said fair-value information is important to them even if they don't think it should be the criteria for valuing loans on the balance sheet, FASB members said.



 Can't make this stuff up people. So given this where does All-Imbecile Bill Isaac come into all this you might be asking. 

Well, Bill Isaac has been the vocal leader of the mark to market abolishment crowd. Bill believes mark to market acounting is the root of all evil in our financial world and should be used only when it helps. He would no doubt blame the Kennedy assaination on it if it had a social security number but I engage in hyperbole far too much. 


Mr. Isaac believes;
  • our ponzi scheme housing economy had nothing to do with the financial meltdown. 
  • banker buddies of his lending 100% of the purchase price of a 750k home to a Walmart stock boy earning $24k had nothing to do with the financial meltdown.
  • Liar and Ninja loans via the bucketshops of Countrywide et al. had nothing to do with the meltdown.
  • free heroin to the stock boy in the form of low low interest rates via a neg am adjustable rate balloon mortgages had nothing to do with it either.

It was all the result of onerous and unflexible mark to market accounting rules. Based on this FASB decision here is what (and why he's the newest All-Imbecile member) Bill Isaac had to say to his flock which I picked up from the boys over at Zero Hedge and you can read here (mucho thanks)


Mark-to-market accounting -- a failed policy that was terminated by the Roosevelt Administration in 1938 because it was inhibiting bank lending -- was revived by the Securities and Exchange Commission and the Financial Accounting Standards Board in the 1990s over strong objections from the Fed, FDIC and Treasury.

The MTM policy senselessly destroyed some $500 billion of capital in our financial system when the markets collapsed in 2008.  This destroyed some $4 trillion of bank lending capacity and was a major contributor to the financial panic and ensuing economic collapse.

The FASB, almost inexplicably, proposed last year to EXPAND mark-to-market accounting to cover all bank loans.  This would have essentially shut down lending except for short-term lending to businesses with impeccable credit ratings.

See the press release below.  The FASB is apparently abandoning its plan to expand mark-to-market accounting.  This is an important first step improving US accounting as it relates to financial institutions.

Best regards, Bill

William M. Isaac, billisaac@comcast.net
Chairman
LECG Global Financial Services
Remember this not some crack head/idiot blogger/community college drop out now working at Starbucks but rather a good ol' boyz network insider former head of the FDIC. 

Stupefying absolutely stupefying. 

Sure Bill, it was mark to market that destroyed everything. It had absolutely nothing to due with drunken lending standards, fraudulent repackaging of notes, unenforced rules, and basically a get rich or die tryin' free for all by everyone involved not to mention the free supply of heroin from the kingpin himself Greenspan to keep it all going.

Acutally Bill, do me a huge favour, tell me sunspots caused the financial meltdown, tell me gamma rays did it or it was the planetary and celestial alignment but please don't patronize me with your hollow, unconvicing drivel of an empty excuse of mark to market accounting. I am slow but not that slow, pretend I went Ivy league for a minute and humor me with something slightly more credible.

My point here is the madness gripping the decision makers and those in positions of influence is utterly mindboggling. There are not adjectives strong enough to describe it. The emporer truly has no clothes.

It all just goes to show you that Orwell was spot on when he said the famous line;


"duing times of universal deceit, telling the truth becomes a revolutionary act."

As for the bankers bought and paid for errand boy, the imbecile Isaac, all  I will say is congratulations to the newest member of the All Imbecile Team.  






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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Tuesday, January 25, 2011

Institutionalized Fraud on Wall St.

The title says it all. No other way to put it. Quite the interesting news today regarding Bear Stearns. In the piece 'E-mails Suggest Bear Stearns Cheated Clients Out of Billions' out of the Atlantic


Former Bear Stearns mortgage executives who now run mortgage divisions of Goldman Sachs, Bank of America, and Ally Financial have been accused of cheating and defrauding investors through the mortgage securities they created and sold while at Bear. According to e-mails and internal audits, JPMorgan had known about this fraud since the spring of 2008, but hid it from the public eye through legal maneuvering. Last week a lawsuit filed in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JPMorgan was unsealed. The lawsuit's supporting e-mails, going back as far as 2005, highlight Bear traders telling their superiors they were selling investors like Ambac a "sack of shit."

Really?! Are you serious?
Well son of a b#$%# !!

Here I was under the impression, at least as I was told by Steve, Maria and the rest of the boobs and boobs in chairs on CNBC, that no one saw this housing debacle coming.

Gee whiz, don't I just feel the dunce in the room. Oh wait many did see it. Not that CNBC would care.

Wait we're not done here yet. Notice the first line about how the former Bear Stearns executives thugs now run mortgage ops at Goldman, Bank America, Ally. Executives... ha ha ha that is funny shit I tell ya! Thugs the lot em', lord knows where else many of these cockroaches have surfaced besides the 3 institutions mentioned.

its gets better. The Atlantic piece goes on to say:

'Bear deal manager Nicolas Smith wrote an e-mail on August 11th, 2006 to Keith Lind, a Managing Director on the trading desk, referring to a particular bond, SACO 2006-8, as "SACK OF SHIT [2006-]8" and said, "I hope your [sic] making a lot of money off this trade."'

I encourage you to read the entire article. For those still drinking the kool-aid just pop another prozac with an ambien chaser and turn Idol on.


Like I said phantom income, phantom profits = real bonuses


This e-mail thing makes me fondly recall the one and only Henry 'I'm a proof reader from Random House....no wait ....I am a savvy internet analyst making fantastic stock calls.... no wait..... please don't read my emails' Blodgett. But heck, according to 'Money Honey' Maria Bartiromo, Steve Liesman and rest of the boobs at CNBC no one saw the internet bubble coming either.

It also makes me recall George Santayana's admonition:


"those who do not remember the past are condemned to repeat it."

That past being not learning from Henry Blodgett's mistake about writing- via email - about what dogshit so many of those internet IPO's were.


This news today regarding Bear Stearns makes me recount what so many of the financial terrorists masquerading as the authorities, pundits and critical thinkers said at the time "they had to save Bear". "The system was at risk". Oh yeah, I almost forgot, "it was a mistake letting Lehman Bros. fail.". I have repeatedly stated here before and will say it here again so there is no misunderstanding.....

"LETTING LEHMAN FAIL WAS THE ONLY THING THE MORONS IN CHARGE DID CORRECT !"

There, that should make my position quite clear.

It appears that this parallel universe we live in called bizarro world is in no jeopardy of changing anytime soon. This is evidenced by the not only by the lack of arrests and prosecutions for financial terrorism but by the fact that so many of the uncountable number of cockroaches responsible for it not only still roam the earth freely, as evidenced by the above Atlantic article,but in many cases are still in charge of the crime scene.

Ahhh the irony of it all is simply breathtaking. But take consolation as our collective denial will provide countless hours of mind numbing viewing and reading for current children who are either:
  • far too young,
  • too dumbed down on Ritalin or
  • too enthralled with Idol, Survivor, Jersey Shore, Housewives or the local tattoo parlor

to realize what their parents and grandparents have done to them, that being sold into debt bondage and economic enslavement by a generation too:
  • submissive (grope me, keep me secure, and send me a gov't cheque)
  • avaricious (buy now pay later) and
  • narcissistic (can't be my fault get that mirror away from me)


to know better or even care. Yes it all ensures countless hours of the evidence documenting the looting of the nation before our very eyes that will most surely boggle the collective minds of even the most cynical of this nations future clinical psych and socio experts.

You think things have changed, things have improved? Okay, then explain to me how, given this piece via Reuters, US Judge Temporarily Delays Loan Document Shredding.


I am not even going to get started on the piece Accounting Tweak Could Save Fed From Losses. We live in a buy now pay later society so why should the Fed be any different?

So a bankrupt subprime Ninja, liar loan lender wants to shred its loan documents? Sure, that'll make everything better! What is this, all just a big Harry Potter movie scene?"

The judge in the case, US bankruptcy judge Peter Walsh, granted a 30 day delay and said he would hold another hearing on Mortgage Lenders' request.


Anyone wanna place a bet against the documents getting shredded?

Any takers? ...........I didn't think so. That same article recounts that:

"In a separate hearing Monday in the same court, U.S. Bankruptcy Judge Christopher Sontchi allowed defunct American Home Mortgage, once one of the largest subprime lenders, to destroy most of the 4,100 boxes of original loan files it still has."

Lovely. Still wondering why I often remark "we don't stand a chance with people like this in charge". Please stop wondering. It would also help you in this regard if you simply skip your dose of prozac as well.

Gee I wonder why this judge would let liar loan central destroy the evidence of liar loans?

Hmmmm. Remember now, this blogger didn't matriculate Ivy league so it will definitely take me some time to figure that one out for sure.


Gosh, it really makes one take a moment to appreciate having a system you can really count on, one so reliable you can set your watch to it. The thugs gotta just love it. What, when you are the fox in charge of the henhouse, combined with a boatload banked offshore from the ponzi? What a gig! It is oft said that the cover up is far worse than the crime. I have no doubt that this is most certainly the case now. Cover up at any and all costs.

And the mainstream media?

Their stupidity or complicity, take your pick, is breathtaking.


What does this all mean? Well, I grew up in a corporal punishment (CP) house, no not an abuse house where the drunk or high parent slams the child over nothing as the PC crowd portrays corporal punishment as, but rather a corporal punishment house where actions = consequences. Where you got the belt or the spoon as a direct result of defying parental orders for the umpteenth time,

This wonderful nation has become abandoned the corporal punishment idea replaced by a politically correct time out house. Gotta tell ya, I would have loved time outs! Time out to get re-charged and re-energized for the next offensive debacle on our home for sure . One of my many fears is that, societally, we have gotten so far off our collective rocker of equilibrium and if we don't return back to not only rule of law but ENFORCEMENT of said laws, that something far worse than corporal punishment could rear its ugly face here. For those that need a hint think Stalin, Mao, Pol Pot, Idi Amin and Hitler and you start to get the picture.

There is a piece of paper called the Constitution. There is also a thing called rule of law. I humbly suggest we start enforcing both without bias or prejudice.



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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Friday, January 21, 2011

David Tepper, Back For An Encore

I see David Tepper of Investing is Easy fame was back on CNBC this morning. Not content with his last public appearance, which was a real gem, Tepper wanted a chance to redeem himself, show the world he has a pulse and a heart. 

Obviously his publicist sat his egotistical ass down for a long chat on the art of creating 'empathy'. We got to hear all about Mr. Tepper's philanthropic endeavours with the New Jersey food bank ad nauseum. How magnanimous of him to sponsor and support such a worthy organization. I won't get into the fact that anyone with a dose of humility - which Tepper cannot spell let alone possess - doesn't take out a billboard to notify the public about that which he has donated but I digress. 

The propaganda network or CNBC for short never offers any perspective so I will. First off, it was too bad that Carl "what's it like to be a billionaire" Quintanilla was not there to grovel on his knees so Joe Kernan responded by picking up the mantle and doing yeoman's work in this regard.

Tepper;s donation, according to the WSJ, was $2 million to the cause that hopes to raise 15 million. Tepper and his company have given $4million. You can read all the details here about Tepper's wonderful charitable streak. I thought to myself what  if Tepper was a real dyed in the wool philanthropist with a real need to give back and kicked in the entire lot of $15 million for the food bank. Well,  it would represent just slightly more than 3/1000 of 1 % or 0.003488. (15mill divided into his net worth of 4.3 billion)

Just for some perspective here Teppers donation of $2million, while noteworthy and laudable, is a pittance given his net worth. For example to replicate his donation on a percentage of net worth basis a person, with a net worth of $1million, would have to give..... are you sitting down for this.....$465 to match Sir Tepper's grandiose generosity.

Well done Mr. Tepper, or should I save the congratulations for your publicist?

Come on the propaganda network and spend 80% of the interview blowing charitable sunshine up your own ass. Lovely. 

Mirror mirror on the wall, whose hubris tops them all? 


In other news, how interesting that Google (ticker GOOG) on earnings last night, couldn't take out it Wednesday's highs (with the gap) and have now (as of just recently) taken out yesterdays lows. Oops, how did that happen?

Anyone happen to catch Charlie Gasparino's hit on Meredith Whitney and her 60 Minutes muni report over on Fox Business News yesterday? 

Poor Charlie. Forget investigating the underlying muni debacle and its causes, its enablers and benefactors. No. Mainstream journalists with advertisers to placate just go after the messenger and the message. Yup financial journalism. No surprise here again. Its those dastardly short sellers again! Haven't they outlawed that as they are everywhere and always to blame. 

Funny how during the S&L crisis there were about a 1000 prosecutions (according to Bill Black) and how during this mushroom cloud of a debacle that is what... 10 times a big and we still as yet no convictions. Maybe Charlie ought to chase down and do a journalistic hit job on Angelo Mozillo, or Phil Gramm, or Franklin Raines, or Bob Rubin, or Hank Paulson, or Alan Greenspan the hundreds of other ponzi enabling culprits who still roam freely.  

No, can't happen as that would take an investigative journalist with..... .how does basketball analyst Bill Raftery say it...oh yeah.... "ONIONS....DOUBLE ORDER"!

Heck, maybe someone from the Globe or the Enquirer can get it done.



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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Thursday, January 20, 2011

FCX - Measured (bull) Move Over?

Freeport caught my eye recently and as the title of this post indicates a possible measured bull move. The first chart up is a 10year weekly view of Freeport.



Now a closer view still on a weekly basis.



Okay the first leg up is worth 73.31 (88.63-15.32). 
We then take this number and add it to the low point of the consolidation of which was 55.53 to get a target of 128.84. FCX just hit 122.69 late last week. 

Is the move over and a top in? Who knows given the tricks and games 'da boyz' like to play.

I would like to see a rally into the underside of the large black channel that encompasses the entire move up, represented around 115. Ironically where we closed last night and gapped down thru this morning. You could argue for a head and shoulders on the 30 minute chart which broke the neckline yesterday around 117.5 but I digress.


FCX is definitely worth watching close for sure.

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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Monday, January 17, 2011

Mortgage Mess Just Keeps on Going

In one of my favourite reads, Robert Sobel's  Panic on Wall Street chapter 11 is entitled 1929: The Making Of The Myth*. On page 350 of my copy Sobel notes regarding the world myth:

"a myth, according to most sociologists, is a belief which is held by a group to be true, and is accepted on faith rather than on examination of relevant evidence."


We see it every day. 


Like late last week when NJ governor Chris Christie said health care costs "will bankrupt" the state and then the NJ Economic Development Authority cut its tax-exempt school-related bond offering by more than half to $712.3 million.

Now in a world populated by a sober, sane, rational thinking  species the governors candor and forthrightness would be appreciated and roundly applauded. Sadly we do not live in that world we live in one molded and manipulated by the banking and brokering elite as evidenced by the quote below from a senior crumb chaser on Wall St.:


“It doesn’t help to try and sell a $1 billion deal on the same day the governor is talking about the state going bankrupt due to health-care costs,” said Mike Pietronico, who oversees $360 million as chief executive officer of Miller Tabak Asset Management in New York.

“Mr. Christie made a rookie mistake,” Pietronico said. “The market is very sensitive to the word ‘bankrupt.’”

Yes, Mr. Pietronico the market is sensitive to the word bankrupt but not as sensitive as you are to the truth. It appears Mr. Pietronico would rather be lied to, content to sit by and simply accept the myth as Sobel put it, rather than examine the relevant evidence that is as plain on the nose on your face. The $360 odd million to manage and the keeping of fees rolling in might have something to do with this. Keep in mind this is 'smart money' on Wall St. at work managing your money.Lovely, no?

Can you imagine the audacity of Gov. Christie to utter such a word as bankruptcy. Has he never heard of 'keeping up appearances'?

You think he did that for 'hyperbole' or because he has seen the numbers and understands real world math? No, not Wall St. math taught at the finest Ivy league institutions where 2+2 = 6 or whatever number your investment banker, Moodys and the prospectus say it does but the math your 8 yr old studies, 2+2=4.

How dare the governor use that word bankrupt and scare investors, stymie New Jersey's growth and financing needs not to mention throwing a monkey wrench into a perfectly fine ponzi scheme. 


In the never ending 'extend and pretend, delay and pray saga' (exclusive of phantom income and bonus' based on that) that is the mortgage debacle we got interesting and disturbing news out of Utah today in a piece entitled How Accurate Are Property Records.

According to the piece:

A Utah court case in which the owner of a Draper townhouse got clear title to the property, even though he still owed $132,000 on it, raises new legal and financial questions about a property-records database created by mortgage bankers. 

The award of a title free of liens means that whoever owns the promissory note on the Draper property — likely a group of faraway investors — no longer has the right to foreclose to collect on a delinquent loan. Indeed, the townhouse owner has sold the property and kept the money. Those who own the promissory note probably don’t even know what occurred.

Mish, in his piece Utah's "Quiet Title Law" Bypasses MERS, Awards Homes Free and Clear, One Homeowner Had $417,000 Debt Erased is calling it a travesty which he fully expects the judgement to be overturned.

"Some investor just lost $417,000 through no fault of his own. Another person who deserved to lose his house because of default just got one free and clear. Is that justice? In what way?"

Karl Denninger counters and says it is a direct result of an industry run amock or as he states in his post MERS Minus a Few Bricks....

"Deciding to play "go go" during the bubble years was a decision made by the securitizers and lenders; the borrowers had exactly nothing to do with it.  They were no more able to influence that decision than was Mickey Mouse, and to claim that there's something "inequitable" that comes about when someone makes an allegedly secured loan but doesn't bother to do the things necessary under the law to retain the security interest is pure nonsense.

Again, the debt isn't gone - it's just lost its characteristic of a secured note.

And that, my friends, is exactly what the rule of law says should happen when you make an intentional decision to cheat the process for your own pecuniary benefit."


Now I am no legal expert on this but I do not see how non payment of a mortgage can result in the homeowner getting free and clear title to the home simply by filing receiving judgement via a  'quiet title action. I have stated in the past that you default on your mortgage you should get your ass thrown out, no question about it. I also realize that the banks enormous and predatory role in this, with the doctoring of mortgage apps to get them through the process,lying to investors etc, is all just the tip of the iceberg of their transgressions in this arena. The mainstream media will never report it but the blogosphere will. 4closureFraud will. 

Look at this recent piece from 4closureFraud entitled  JP Morgan Chase Loan Officer Lied on Borrowers Loan Applications to Make Numbers Work. Make sure you scroll down the article to see the letter written by the client challenging the JP Morgan filed documents. Sure rogue employee, one off circumstance. Uh huh. 

I thought fraud on a mortgage app was a felony? Obviously I must be mistaken.

Do you understand why I take someone I respect very much, Art Cashin, to task when he states "we have to move on". NO WAY ON GODs GREEN EARTH !

I do hope you are ignoring the mainstream medias repeated arguments that this issue is a big nothing(isn't everything to CNBC when its negative). I do hope you are starting to understand that.....

  • this whole mortgage house of cards was built on quicksand by thieves and thugs who are not only still at large but have kept the loot and use it to buy their freedom from the authorities.
  • this is a direct consequence of allowing Ivy league MBA criminals to use their version of math where 2+2= 6
  • this fraud and malfeasance by the banks were not one off events but rather institutionalized sanctioned ways of doing business by them.
  • this maniacal obsession of simply pretending none of this transpired and it will all just go away total and complete foolishness of the first order, like changing accounting rules will really help.
  • the ratings agencies S&P and Moodys (hello Warren and Charlie) aided and abetted the banks in this ponzi scheme of thievery with the mainstream media too dependent on the banks advertising to admit such. 
  • this arbitrary imposition of justice when it suits us might mean nothing to you until and unless your ass is in the sling it hangs on. The Rule of Law is rule of law, it matters not the net worth of the individual who says it doesn't. 
We cannot move on when this has gone on. People must be held to account for their actions pure and simple, then and only then can we move on Art.

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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Thursday, January 13, 2011

Tail Wags the Dog

In my most recent post of things I was thinking about, I mentioned how long the charade of the FIRE (finance, insurance, real estate) economy or the tail could go on wagging the manufacturing and production part of the economy.

Well, lo and behold my timing wasn't too bad as Bloomberg has a piece today entitled Trader Pay Tops Brain Surgeons' and Shows Gap Weathers Crisis.

A timely piece given that it is bonus time on Wall St. Bonus', of course, that come off  the back of make believe income from extend and pretend, delay and pray mortgages and paper so delinquent as to make cartoon character Wimpy paying for a hamburger look positively gilt edged.

“The bottom line is all the people in investment banking understand that they work harder and are under more stress,” said Jeanne Branthover, a managing director at Wall Street recruitment firm Boyden Global Executive Search. “Many don’t think they’re paid enough.”

Not paid enough huh! Gee, and you wonder why so many think so little of this insect group. You think hubris of this magnitude is taught or is an inborn trait?

The article goes on to state;

"An oil trader with 10 years in the business is likely to earn at least $1 million this year, while a neurosurgeon with similar time on the job makes less than $600,000, recruiters estimated. After a decade of deal-making, merger bankers take home about $2 million, more than 10 times what a similarly seasoned cancer researcher gets"

I just love this shit.

I am sure those traders are trading other peoples money and surely not their own, Remember now, heads I win tails you lose right. What was it Nassim Taleb said, oh yeah, all captains go down with all ships. Foreign concept to the Ivy league set I know.

And last but not least, my favourite piece from the article.

“I don’t think it’s healthy for the economy to be this skewed,” said Stephen Rose, a 63-year-old professor at Georgetown University’s Center on Education and the Workforce. 
“I believe there’s some sort of connection between value added to the economy and pay. Everyone is losing sight of any fundamentals.”

Gee, ya think Professor?

What was it the chief cake slicer and crumb chaser at Goldman Sachs Lord Blankfein said some time ago......  if I recall it was something about doing God's work?

Yes readers, it does appear that the tail does still wag the dog, so long as Wall St. continues to hijack and hold main street via their errand boys in Washington. I wonder what men like Carnegie, Vanderbilt, Firestone, Ford and Durant, men who built this country, would think? Not that they were angels, but at least they made the cake. Somehow I think they would laugh their ass off at the cake slicing crumb chasers being in charge via positions of authority and influence.


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 @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
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
Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84

Wednesday, January 12, 2011

Thinking

I never have been the brightest bulb in the room nor claimed to be. I have I never been the best ass kissing groveller in the world either. This might account at to why I am not on any list, short or long, for an Administration czar position or a Fed appointment. 

But, I have been doing a lot of thinking over the last few days to start the new year. As much as it makes my head hurt I still try to do it. 


Things that I have been thinking about.... 
    • the almost universal market bullishness of CNBC pundits.  
    • municipal pension promises that can never be met. 
    • so many rats jumping ship on this administration. re: Paul Volker 
    • the universal belief by 'smart money' that not only do you not fight the Fed but that the Fed can fix all. 
    • an education system that leaves the holder in debt and holding a sheepskin which is about as useful as a 3 legged chair.    
    • how you can create what just over 100k jobs which doesn't even keep pace with population growth and yet the unemployment rate falls from 9.6 to 9.4%   
    • how many of those 100k + jobs that were created were of the 'burger flipper' and barrista type? 
    • how 40+ million can be on food stamps with numbers increasing yet we can call it a recovery?
    • how adding $4 trillion to our nations debt has resulted in the weakest recovery in post war history.
    • how long can the charade of the tail - FIRE (finance, insurance and real estate) economy - wagging the proverbial dog - the real economy (manufacturing)- go on?   
    • state and municipal governments that are flat broke.
    • how will things be when denial dies and sobriety returns in the form of the realization that municipal pension/benefit promises can never be honored. How will this affect the annual neighborhood block party?
    • how the smart money set rejoices at retail sales numbers when they know it's a direct result of many simply skipping on paying the mortgage?
    • how long can we pretend that this pre-meditated mortgage payment avoidance has no repercussions.Oh yeah the Fed fixes everything. 
    • how long can we ignore the transgressions of fraud and malfeasance in the mortgage and finance arena by the too big to fail banks?
    • how long can we go ignoring laws already in place content to act surprised by all that occurs when we refuse to enforce of said laws?
    • was the congresswomen, who quite frankly many had never heard of before the tragic news, the target or was the federal judge John Roll the target? my sympathies go out to all the families involved. 
    and finally
    • if things were getting worse would anyone recognize the signs it was even happening? 

    All the signs of the housing crisis was a debacle in the making were there for anyone that cared to look. I realize when you are slicing the cake (Wall St.) and need the crumbs to live on you do not care to look any further than the continued slicing the cake.

    Gerald Celente, whom I have a lot of respect for has a interview- which you can click here to see - out done recently by Aaron Task over at Yahoo's Tech Ticker. Please do try to ignore Henry 'read my lips and not my emails' Blodgett. That thug should be behind bars but I digress.

    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 @ $60.30
    Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
    Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
    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
    Long 1 unit U.S. Dollar Bull ticker UUP @ $22.56 stop @ $21.44
    Long 1 unit Powershares Gold Dbl Short ticker DZZ @ $8.38 stop @ $7.84