Monday, May 28, 2012

STOP IT NOW!


We cannot withstand these type of events without the proverbial run on the casino. I don't mean just any casino but I mean the entire enchilada. The Spanish bank implosion and spread blowout means the clock is ticking for the Central money printers. QE has never stopped at any time since the initial QE 1. The only thing that stopped was the outright announcement that we will print. By announcing massive printing strategies like QE 3 it basically admits the casino is in dire straits and that massive fiat devaluation is coming to prevent the system's breakdown....so instead you get stealth and not so stealth programs without the fanfare. At the same time you have shorting strategies to hold down the prices of commodities and precious metals. Meanwhile the smart money is pulling out of weakened fiat reserves and positioning themselves in real assets to protect themselves from currency devaluation that is obviously coming down the pipe. There is absolutely no stomach to impose fiscal austerity by the politicians on the massively overleveraged western countries and as attempts are made to do so we will endure tremendous social upheaval. What is more likely for the Western policy makers is a route that is being promoted by the Keynesians such as Krugman that bluntly call for massive printing with NO regard to the effects on inflation. Stagflation is not even mentioned by Krugman when he talks about these measures. He completely discounts inflation and I believe his route will be taken as the least painful path out of the current depression. Interestingly enough I listened to an interview by Krugman with Charlie Rose this week and he openly admitted and called this a Depression that we were in....and then went on to define WHY we were in a depression. Funny how this mainstream economists now admits what we have discussed for several years now and no one even blinks at it. Of course the Central bankers will never admit to massively printing strategies lying ahead or precious metal would explode and become a daily headline price exposing the dire effects of this policy. Instead you have the Chinese strategy of letting the West die a death by a thousand cuts. Rest assured they will print. They have no choice to maintain the global massive to big to fail banks that they protect and form the basis for the casino. What Krugman and his followers fail to address is that by massively printing and propping up the Too big to fail banks and allowing governments to direct shovel ready projects etc.....they are perpetuating the entire malinvestment that has led us to this cliff.......in fact they are only making the cliff higher. Watch how Europe unwinds some banks but you can bet they will step in very soon and put a stop to this nonsense......at least for a little while.

37 comments:

  1. btw if ya dont believe me then maybe youll believe this old pro

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/27_Investors_Are_Unprepared_For_The_Coming_Detour.html

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  2. I just want to say one word to you - just one word.

    ALPO

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    1. yes red we are getting very close......and I have started my preps

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  3. Phil Davis is bullish at least for the short time. Nothing is really "fixed" though.

    The Keystone Speculator again wrote about its parameter showing that we are in deflation. Also, they commented on the 10 year being below 1.8%. Keystone believes that the central banks will need to announce more stimulus eventually. Keystone believes that any announcement will be done in a globally coordinated fashion.

    I am still thinking of buying some RWM if the S&P gets to the 1340'ish area.

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    1. I may join you on the RWM play on a small scale

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    2. 1340 looking like it could touch today

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  4. as Red says ALPO

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/29_Richard_Russell_-_IMPORTANT_-_Major_Bear_Market_Signal.html

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  5. Back from vacation, eyeing some way out of the money august SLV calls for a gamble. $35 strike looks good. But may wait for a bit better pricing in the coming couple of days.

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    1. just make sure you save enough for the fall options play.....seasonally strong for PMs

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    2. Yep I agree, I think the stars are aligning for a nice move in gold and silver currently with seasonality barring of course a deflationary collapse... which isn't out of the question as we know :)

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    3. Wow actually got in at 20 cents. Smallish bet but has big potential if things really get rolling. We were in the mid 30's not long ago at all...

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  6. Working, but trying to watch that 1340--maybe it can hold off til lunchtime.

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  7. gold getting blasted again...hehehhe......maybe this is worrying some money boyz

    http://www.zerohedge.com/news/did-another-european-bank-just-lose-ltro-eligibility

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  8. Downgrade just hit the markets, augh :)

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  9. The trouble with people like Krugman....

    They want to double down on the same policies that got us into this mess.

    Free market capitalism is the ONLY way to get us back on track. No more stimulus, no more QE's, no more bailouts, no more Solyndras, no more MF Globals, no more PPT and we'll be fine.

    I sometimes wonder if folks like Krug are secretly in favor of capitalism's destruction.

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  10. Replies
    1. careful on it roddog.....daytrade only

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  11. Miners seem to be shrugging off the earlier hit. I like this action :)

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  12. Keystone is calling 1324 support for the S&P. Looks like we are bouncing off of it now. How high can we go though,...that is the question. Still like to see 1340.

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  13. @Jay...secretly? I think it's just out there now. They have much to gain, nothing to lose like the rest of us. Sometimes I feel like a lobster trapped in boiling water...I can see what's happening but I cannot do one thing about it. Anyway, InTheMoneyStocks now saying bounce to 1340 and have lowered the correction to 1170, it has been 1275 so that's quite a bit worse. Looking to set up my shorts for next week.

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  14. Turd being very brash and confident that these games cannot continue much longer, thinks one more washout is possible but after that it's rocket time. Wonder what he's heard?... I don't think it's wise to be so brash but what do I know, i'm not even an amoeba in this pool of sharks.

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    1. Turd is turd too much pumping for my taste.....I enjoyed his good posters when they were there .......but the blind followers are disturbing....

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    2. I agree, people are going to get hurt if he is wrong but then again maybe they should. Everyone has to make their own trading decisions. I agree with him but know I am very likely to be wrong.

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  15. miners filled all their morning gaps....hhehehhee.......lets see what they do in a red market tomorrow

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  16. RIC tested resistance and pulled back nicely.....actually tried to trade it but missed it

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    1. Richmont Mines Inc. (RIC)
      -NYSE Amex

      6.06 Down 0.09(1.46%) 3:42PM EDT - Nasdaq Real Time Price

      Richmont Mines Inc. engages in the acquisition, exploration, development, and operation of mineral properties, principally gold in Canada.

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    2. i knew i said i would hold but i had to try a few small trades and that looked like a good sell area

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  17. "Facebook Has Lost About $35 Billion In Value Since IPO As Shares Dip Below $29"

    Round up all the retails. Severely overprice a company with very little revenue. Short - Short- Short. Laugh all the way back to the Manhattan penthouse. Whatta gig.

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  18. CYCC picking up buyers...could go to .95 in cple days...upcoming asco presentation..
    http://finance.yahoo.com/echarts?s=CYCC+Interactive#symbol=CYCC;range=1y

    I like the double bottom touch...I'm in with stop at todays low..

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  19. RIMM just halted it's shares. Bankruptcy time?

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    1. Looking bad. I remember when everyone had Blackberries and this was $100+ stock and looked invincible. Just goes to show in the fast moving tech world what a difference a few years can make. Apple and Facebook take heed :)

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    2. Shares unhalted:

      After Hours: 9.89 Down 1.34 (11.93%) 4:59PM EDT - Nasdaq Real Time Price

      They never adapted and just let the technology pass them by (touchscreens, voice to text, small app market, the list goes on) It took them 13 short years to go from industry leaders to obsolete.

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  20. OSIR up nicely in AH trading.

    Osiris Therapeutics, Inc. (OSIR), the leading stem cell company focused on developing and commercializing products to treat medical conditions in inflammatory, cardiovascular, orthopedic, and wound healing markets, announced today that it has received transitional pass-through status from the Center for Medicare & Medicaid Services (“CMS”), with C-Codes being designated for Grafix®. Further, the product has been assigned pass-through status under Medicare's outpatient prospective payment system (“OPPS”), effective July 1, 2012. These codes will assist in facilitating reimbursement when Grafix products are used to treat Medicare patients with acute and chronic wounds in the hospital outpatient department and ambulatory surgical center settings.

    http://finance.yahoo.com/news/osiris-receives-medicare-reimbursement-codes-211100926.html

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    1. This comment has been removed by the author.

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    2. Thank you HonestCreditGuy for OSIR.

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