Thursday, May 10, 2012

JPM'S FUTURE

At least for a few hours tonite while the pundits fret regarding the ill winds blowing across the banker's landscape. Is this the end of JPM as we know it? Not quite. In fact......not even close. Why is JPM sounding the alarm after hours regarding a rogue hedging strategy gone wild is the better question? Why is Jamie sounding the horn of danger for a few billion in fiat? After all, calling on Uncle Ben for some digital payola is not really that big of a deal for Jamie. In fact short some gold and silver tomorrow and Blythe can tuck a big hunk of that fiat right back in their bankster's pockets before noon tomorrow. So why the problem? One thing is certain you will never find out the whole truth and nothing but the truth AND THEREIN LIES THE PROBLEM.

We have read and heard numerous pundits discuss just how important CONfidence is for the financial system to recover. It isn't important......ITS EVERYTHING DAMNIT!!  Ladies and Gentlemen a fiat based economic system that is based on ever increasing mathematically impossible levels of debt is NOT SUSTAINABLE ................unless you maintain confidence. CONfidence that when you hold those little pieces of fiat that you will be able to actually buy something real with it.....a car...a house....a morsel of food. This is how the ponzi works. If you violate the rules of the capitalism game then you must pay by going BROKE. When you screw up YOU LOSE! You lose your house.....you lose your car.....you lose your GD SHIRT! You are the dumbass that screwed up and the guy with the strongest hands that was the smartest card in the deck takes your chips and strengthens the overall economy with the chips he or she now holds with their WISE AND SAGE knowledge The smartest guys now have the money and LOAN and INVEST it for a stronger economic future. That is how capitalism works. BUT NOT THIS CRONY BULLSHIT FORM OF BASTARDISED CAPITALISM. You get greedy and wipe out a few million people's pension funds and drive people into the streets to starve and you get to be the new Treasury Secretary. There are no perp walks after the biggest theft in the world's history.....and there will be none.

The real news last nite with the JPM bombshell is that no one really gives a shit. They're numb. They're dumb and they know they're screwed if they lift one finger in protest....And who the hell are they going to protest too???? REALLY???? You think so???? Sorry I'm answering myself while I laugh my ass off at the ludicrous scenario the casino has backed itself into.

Okay......back to the table. I don't see any evidence that the shorts are covering and all I see is accumulation. So the miners and PMs CAN and probably will go lower since they are the headline prices that expose the inherent weakness of the global strategy to devalue ALL fiat of developed countries to deleverage their debt. Its laughable to see the coordinated attack on PMs as an unsafe place to be to preserve your wealth. Actually their is some truth to that. If you trade is paper PMs like GLD GDX SLV etc. then all I will say is gl to you because you are going to need it. Physical my good friends and make sure you can get to it.





37 comments:

  1. Hey Jay - I know you didn't ask me, and Kli hits some points above, but its not that simple that Americans are dumb. In fact I gather they will catch on at some point, but it will be too late by then. What most of us are are fat dumb and happy, more to the point, easily deluded if it allows us to maintain our current standard of living (okay...lazy and indifferent). Throw into that mix the lobbyists and politicians, enabled by the press, who make sure the bulk of the people they are targeting believe its one person/party's fault using fallacious logic that "sounds right:. Its all a distraction, and as long as their 401K is back, their dreams of retirement are intact, their kids aren't being drafted, they're happy. Threaten them with losing the big tax cuts they think they got and having to pay for health care for deadbeats, you own them.

    I had a good discussion with my nephews on Easter about it. They had the drivel down pat which surprised me because they are pretty smart. BO is terrible, Obamacare, stimulus package, economy in ruin, etc. I can only make my points and hope people think about it. This started in earnest with Clinton, the unwinding of regulations and controls over corporations and financial institutions. Brought to its full lunacy by GB Jr. The war machine in full swing, reduction in revenues by tax cuts and corp loopholes. So after being accused of being a liberal, I pointed out the current administration is no better. I believe BO, and more importantly, Congress (everyone seems to forget they really are the ones making and removing laws), continue on this path regardless of who is in charge. BO continued the Bush tax cuts, continued the war machine, as far as i can figure it out, the giant health care providers have no problem with Obamacare which is probably bad. Dodd and Frank (Dems) had the reigns as the banks went wild, it goes on and on.

    So confused, they asked where I stood, the answer is basically they are all rotten to the core and must go. Except maybe RP and a few others. I've always believed in the basic tenets of the Libertarian party. I think its what the founding fathers envisioned. Then of course the Tea Party was usurped and became a joke. So now more distractions and FUD, most of them were not real candidates, the purpose was to maintain status quo.

    So at least I think I gave them something to think about and that's all that can be done right now besides voting the politicians out. But its in the face of a stupendous propaganda campaign that has in some people's minds pitted capitalistic good against socialist evil.

    As I said in the beginning of my rant, if and when it falls apart, the people will no longer be apathetic, but only because they've been affected. They just don't realize right now that they've been targeted all along.

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    Replies
    1. nice rant homer... try and prepare and do your best to make others aware.....use patience with them and smile......

      Delete
  2. Wow - sorry for the length of the post/rant. I just finished watching Fox local news praise Jamie for being so forthright in stating JPM did a booboo. That was it, already stating the finance market was hit but coming back. As long as it doesn't affect people right now, they don't care.

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  3. Looks like the landscape is getting set up for a nice squeeze....

    http://www.zerohedge.com/news/nyse-short-interest-rises-2012-highs

    Maybe JPM Story is out there to pull in somemore shorts?

    Lot's of chatter on gas prices going lower, gee I wonder why? I suppose 3.59 is better then 4.19....... Stupid People gotta love election years!

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  4. I just read through the last of yesterdays comments,

    You guys just made me shoot my coffee up my nose, LOL

    Jay: Are Americans that dumb?

    Kli: ABSOLUTELY......do your own poll


    That was farking funny, I'm still laughing!!!!!

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  5. Great post Kli and terrific follow up post Homer. I get on my soap box here at home every now & then. Not sure if anyone really listens.

    I agree with the significant attenuation of overall intelligence of most Americans. There, I wrote it in a politically correct way so as to not offend anyone.

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  6. While everyone is watching and playing ARNA today..I will too...but I might turn my focus on OSIR...small float, approval in canada and lots of shorts...

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  7. Doc,

    No need to be PC, call it like you see it..........

    The truth hurts, just like my account is right about now!

    Weeeeeee

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  8. Yes, Jay. Before my "enlightenmen" I was like that, but am now amazed when I talk with educated, (relatively)smart people who are absolutely clueless and are too busy to educate themselves. So my own poll agrees with Kli. Only people I know besides my cyberfriends are really aware are relatives w/finance, MBA degrees I also think people just don't want to believe there is so much evil/greed around us. After all, lots of their friends/relatives work in the business. I must say it has been a disheartening awakening for me.

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  9. And we knew from the get-go in '08 that the gov't. wasn't serious about any real reform b/c all they had to do was bring back Glass-Steagall. It's that simple. There are other factors but I like the bottom line as no one was held accountable, but rather rewarded. Great commentary as always Kli.

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    Replies
    1. "all they had to do was bring back Glass-Steagall."


      Ding Ding Ding. :)

      Delete
  10. Good stuff all, at times I wish I hadn't learned all that I've learned. It changed me that's for sure, and I'm much more a cynic now and my idealistic bubble was popped ;) Anytime people want to discuss this stuff with me I make sure and say "You sure you want to go down this road? Once you do you will probably change and lose a lot of happiness." Ignorance is bliss like they say.

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  11. you will all go through you own individual evolution and adjustments as you gain your levels of awareness. For me, an inner piece has developed because I could never reconcile so many inconsistencies politically/ markets and it used to drive me crazy......now I get it ........that helps......and there really is a great deal of limitations on what an individual can do at this point

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  12. kli, I'm worried about you now..I hope that inner piece is not sharp :)

    osir looking strong...arna is playing out as expected..dipped into SVM

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  13. ouch.....just noticed that.....heheheheheh

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  14. I wish I had more to add to this very enlightening discussion. I try talking to people about what is going on and honestly they just don't care. I believe most people are willfully stupid. As long as there little world is okay, then everyone else does not matter. Going through my evolution has destroyed my idealistic bubble as well. That is why I focus on doing things with loved ones and trying to enjoy my life the best I can. Because not matter what "You are NOT promised tomorrow!"

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  15. I know that most do not want to hear prepper chit but i had to bring up that in Sam's yesterday there was a stack of five gallon plastic 300 freeze dried servings of various food for "disaster" prep........well there ya have it....its mainstream now.......not a bad price $98 ......

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  16. Kli,
    I agree with your point awareness does bring an inner peace, while I still can't stand what's going on around us, I can accept where we are at because of it. Actually with awareness you actually see more. I find myself no longer blinded by a position or side I'm more like an observer of the absurd. Nothing you can do about it kind of like watching an alcoholic crash and burn after investing many hours/days trying to give council and direction and nothing works. In the end you know what the outcome will be, you just have to protect your own sobriety and accept the outcome of the other.......

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  17. I placed an obscenely low limit order on some GS call options this morning. It got filled somewhere along my drive to work.

    By the time I got my work computer booted up, I was up 20% My charts showed a flattening out. I didn't even waste time with a limit order and sold at market. Ended up making a 17% profit in about 35 minutes. What a way to start out the weekend. :) GL all.

    ReplyDelete
    Replies
    1. great trade jay........smart move

      Delete
    2. PS. I gotta hand it to Scottrade. Their charts have proven to be extremely useful for day trading. I used to have a little tingle of fear in me every time I hit the "Place Order" button. Now it's very emotionless, which is exactly how a good trader should trade.

      Delete
    3. I agree..quick and easy..shorts are trying to get out down at the 5.70-80 range or arna...

      Delete
  18. http://www.zerohedge.com/contributed/2012-19-11/living-california-debt-based-dream-%E2%80%93-adjustable-rate-mortgages-and-bankruptci

    ReplyDelete
  19. http://www.infowars.com/geraldo-rivera-i-was-raped-by-the-tsa/

    ReplyDelete
    Replies
    1. Yeah, Him and the rest of the Flying Public...... Stupid People!

      Delete
    2. I had a bad experience at the San Francisco airport a couple years ago. They had just installed those naked body scanners. The scanners in SF must have been first generation because they were very slow. Anyhow, I get inside the machine and raise my arms. It finally gets done spinning and the TSA Gestapo rudely says "You didn't raise your arms high enough. We have to do it again." So I lift them higher and they give me a second dose of the radiation. The whole process was humiliating.

      I wasn't a big fan of profiling right after 9-11 but after all these years of seeing TSA abuse the elderly, kids and even disabled people, I think it's time for a switch in policy. Maybe Ben Gurion (Tel Aviv) styled security is the way to go?

      Delete
    3. Wont fly, got a bunch of Titanium Screws a Tee Plate in my wrist, I'm guaranteed for a groping........ I'll leave that to the Mrs she's better looking anyway! Don't know how I would react and I don't want to find out either...........

      Delete
    4. Tom,
      I couldn't respond earlier. My "pc" comment above was meant to be some early Friday morning sarcasm.
      Have a great weekend.

      Delete
  20. interview is a little painful to follow but Fulford is worth listening to

    http://www.youtube.com/watch?v=HR2uuq7P0VI&feature=player_embedded#!

    ReplyDelete
  21. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/11_Norcini_-_If_This_Happens,_It_Will_Signal_A_Collapse.html

    ReplyDelete
    Replies
    1. Personally, I'd love to see hardcore deflation. But Ben will never let it happen.

      Delete
  22. I just went an entire month without a single losing options trade. All I did was use charts and took profits prudently. Maybe I should send my portfolio to Goldman Sachs along with a resume.


    GS 100.00 MAY 12 C 3.88 Sell to Close
    GS 100.00 MAY 12 C 3.25 Buy to Open
    MA 420.00 MAY 12 C 7.5 Sell To Close
    MA 420.00 MAY 12 C 7 Buy To Open
    QCOM 60.00 MAY 12 C 2.24 Sell To Close
    QCOM 60.00 MAY 12 C 2.15 Buy To Open
    WYNN 135.00 MAY 12 C 2.52 Sell To Close
    WYNN 135.00 MAY 12 C 2.33 Buy To Open
    CVX 105.00 MAY 12 P 0.7 Sell To Close
    CVX 105.00 MAY 12 P 0.63 Buy To Open
    BIDU 135.00 MAY 12 C 2.65 Sell To Close
    BIDU 135.00 MAY 12 C 2.49 Buy To Open
    CVX 105.00 MAY 12 P 2.05 Sell To Close
    CVX 105.00 MAY 12 P 1.92 Buy To Open
    AAPL 600.00 APR 12 C 7.15 Sell To Close
    AAPL 600.00 APR 12 C 4.4 Buy To Open

    ReplyDelete