tag:blogger.com,1999:blog-83055059683907682342024-03-13T12:55:32.581-04:00fdralloveragainfdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.comBlogger325125tag:blogger.com,1999:blog-8305505968390768234.post-68874933110171698342010-06-30T18:48:00.007-04:002010-06-30T20:18:34.316-04:00Required Listening<br>Delivered in 1994, I think this concise, one hour speech by Ed Griffin remains the single best primer to understand the macro business environment in modern America:<br /><br /><a href="http://video.google.com/videoplay?docid=638447372044116845#docid=-8484911570371055528">http://video.google.com/videoplay?docid=638447372044116845#docid=-8484911570371055528</a>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com31tag:blogger.com,1999:blog-8305505968390768234.post-52968760827166561912010-06-28T13:41:00.002-04:002010-06-28T13:43:38.817-04:00Green Exit Strategy<blockquote><a href="http://www.marketwatch.com/story/tesla-motors-revs-up-244-million-ipo-2010-06-28">http://www.marketwatch.com/story/tesla-motors-revs-up-244-million-ipo-2010-06-28</a></blockquote><br />Remember, selling to the public happens after the private owners feel they've taken an idea as far as it can go.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com9tag:blogger.com,1999:blog-8305505968390768234.post-51758352053231404102010-06-10T05:52:00.004-04:002010-06-13T02:20:31.642-04:00US Government Scrambles to Limit its Oil Liability<br><a href="http://www.property-casualty.com/News/2010/6/Pages/NFIP-Will-Cover-HurricaneDriven-Oil-Damage-FEMA-Confirms.aspx">http://www.property-casualty.com/News/2010/6/Pages/NFIP-Will-Cover-HurricaneDriven-Oil-Damage-FEMA-Confirms.aspx</a><br /><br /><span style="color: rgb(204, 0, 0);"></span><blockquote><span style="color: rgb(204, 0, 0);">WASHINGTON—The National Flood Insurance Program will pay claims for damage to homes and contents from oil driven ashore during hurricanes, its officials have announced.</span><br /><br /><span style="color: rgb(204, 0, 0);">In a statement, Rachel Racusen, press secretary to the Federal Emergency Management Agency (FEMA), which runs the flood program, said, "The mixing of oil and other pollutants in flood water is not unusual during a storm."</span><br /><br /><span style="color: rgb(204, 0, 0);">She added, "Damage caused by these pollutants in flood waters is covered under the NFIP, subject to the provisions in the Standard Flood Insurance Policy."</span><br /><br /><span style="color: rgb(204, 0, 0);">Effectively, Racusen confirmed what Mississippi Insurance Commissioner Mike Chaney told state residents in a statement released Tuesday by his office.</span><br /><br /><span style="color: rgb(204, 0, 0);">In the statement, Chaney said that to recover damages stemming from the additional risks oil poses should a hurricane strike, claimants seeking payment under the NFIP must prove there is a flood as defined in the standard flood insurance policy.</span><br /><br /><span style="color: rgb(204, 0, 0);">If that can be proven, Chaney said, damage caused by pollutants to commercial policies is limited to $10,000.</span><br /><br /><span style="color: rgb(204, 0, 0);">Home and condo payments will be limited to policy limits, and oil or water with oil in the yard is not covered.</span><br /><br /><span style="color: rgb(204, 0, 0);">Chaney further said that the cost of complying with any local or state ordinance, including one that requires special removal methods for oil, is specifically excluded, with the exception of certain floodplain management mitigation requirements.</span><br /><br /><span style="color: rgb(204, 0, 0);">Moreover, Chaney said, there will be no coverage for testing for, or the monitoring of, pollutants unless there is a law or ordinance requiring it. </span><br /></blockquote>Translation: "We won't cover significant damage from oil."fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com6tag:blogger.com,1999:blog-8305505968390768234.post-702235306437763712010-06-09T20:42:00.017-04:002010-06-10T04:57:43.731-04:00How Low Can We Go?<br>It's easy for human beings to conceptualize the infinite potential for gains. "If I buy this stock for $36/share", we dream, "it <span style="font-style:italic;">could </span>go to $100, then a million, then a billion," and so on..." <br /><br />Why is it so hard to comprehend the same unbounded realm with regard to loss?<br /><br />Not comprehending the infinite distance to zero is a critical failure of our human imagination. "If I have a million dollars, that is all I can lose," we rationalize, "my losses are always limited to what I can understand."<br /><br />That is so wrong.<br /><br />Your potential losses are just as infinite as your potential gains. If I have an airplane and a boat, and I lose the plane, I am limited to sailing. If I lose the boat but still own my car, I am limited to driving. If I lose my car and have a bike, I am limited to riding. If I lose my bike and own a pair of shoes, I can walk. If I lose a shoe, I will hop. If I lose my other shoe, I will fashion a pair of shoes from scraps. If I can't find canvas, I will use cardboard. If I wear the soles of my feet raw, I will crawl. If...<br /><br />Astute readers may sense infinite opportunity here, as it pertains to shorting. But the real purpose of this post is to get you thinking about the infinite potential of your life to change, especially if you fail to imagine the possible. <br /><br />One exercise we should accomplish is to imagine that the money in our wallet represents our last few dollars on Earth. How do we act? How close can we get to that mindset? The closer we can get now, the father away zero will be.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com4tag:blogger.com,1999:blog-8305505968390768234.post-44304207650711383942010-06-08T23:49:00.015-04:002010-06-09T03:12:02.572-04:00PM Update<br>Anon wrote: Just a question on gold. Perhaps you can point to the right post if already answered this.Why are you expecting a big correction in gold in...<br /><hr><br />I've addressed PMs quite a lot throughout the blog. My basic position hasn't changed since I went long gold in the early 00's, then jumped off the bandwagon too early in late 2007, still bagging a 300% gain. Yes, I've given back 20% on that position, still on paper, but I'm not worried at all about it morphing into another huge gain. The reason I phased in long in '03 is the same reason I'm short now:<br /><br />PM prices are driven purely by liquidity. <br /><br />That's why PM prices act like paper stocks, usually with less volatility. Any genuine change in supply and demand has been dwarfed by an 80+ year sea change of inflating cash liquidity. Since prices deflated to major lows in 1932, the Dow (<a href="http://fdralloveragain.blogspot.com/2010/03/dow-jones-marketing-index.html">which in no way reflects individual stock prices</a>) has increased from 40 to 10,000. Gold only inflated from $20 to $1235. Paper stock indexes are a much better inflation hedge than gold.<br /><br />The <a href="http://www.shadowstats.com/alternate_data/money-supply-charts">quantity of counterfeit cash</a> printed by commercial banks (contrary to popular belief, the US government cannot and does not print money), then laundered into borrowers' names has been plunging since it peaked in late 2007. There are NO signs of that letting up. To the contrary, prices ushered in by The Great Recession still dwell near all time highs. Our Depression hasn't even started rolling, it is in its infancy.<br /><br />As liquidity dries up, precious metals, nothing but dead metal to reflect the amount of paper in circulation, get priced lower. The outcome is as certain as prices rising during inflation of the cash supply. The timing of the macro price decline is more difficult, as this event big is far bigger than our lifetimes, thus, day-to-day price movements are anyone's guess. But with W3 down maturing, my goodness, you have to LOVE the opportunity to short any asset still clinging to all-time price highs. <br /><br />So I think gold presents a unique opportunity to capture 100% of the coming depression price declines, the single place you can still jump into an empty bandwagon. Although silver is almost 70% lower than its all-time highs, I think its emerging duality as a precious/industrial metal makes it an even more attractive short, as industry tanks hard.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com5tag:blogger.com,1999:blog-8305505968390768234.post-36793636185449522342010-06-03T23:18:00.005-04:002010-06-04T00:23:31.952-04:00Twice in a Lifetime<br>At Dow 14,000, I described the situation as once in a lifetime opportunity to get short. That was the beginning of W1 down. Here we sit at W3 down, the most devastating wave, and it's Deju Vu alloveragain. Some will ask: How can you be so sure this is W3 down? Didn't it take longer than expected to develop? <br /><br />The answer to question 1 is, you can never be sure, but it doesn't get much better than this. We had a crippling mega 5-wave down to kickoff our colossal bear, followed by a perfect 62% retrace. <br /><br />The answer to question 2 is, the most common W2 retracement, especially in a major degree movement, is 62%. It's hard to argue with nature on that basis. The W3 down that follows should be unmistakable and devastating. Again, it's hard to argue that an "inexplicable" 1,000 point cliff dive isn't a suitable W1 of W3. <br /><br />Accenture lost their entire $30B market cap in a matter of minutes, as the stock dove from $44 to $0.01 and stayed there for several minutes. Most of the shares changed hands from heavily vested owners to traders, some with little to no cost basis. Mind you, this is a "recession proof" stock with 60% of its 170K employees located overseas, with years of extreme growth under its belt--a little like the sewing machine stocks of the late 1920s (see first quote below).<br /><br />That market malaise took days to sort out. Still, no one knows how to properly handle many of the transactions. Parallels to the death throws and two year collapse of the "Big Bull Market" (so it was called in 1929) are unmistakable, but no one wants to say so out load. Before "the glitch," which was simply an absolutely accurate manifestation of market value met with late, dozing government intervention, every scholar on the face of the Earth would have testified under oath it was utterly impossible to overwhelm our modern trading system.<br /><br />In fact, as many Black Swan'ers have pointed out the past several years, modern complexity = ever-increasing market fragility. Speed of light trades that travel through the dark of night are, of course, infinitely less robust than a paper system with some form of physical tracebility.<br /><br />I'll close with the wisdom of dead people:<br /><blockquote><span style="color: rgb(204, 0, 0);">"To give one single example: during the bull market the common stock of the White Sewing Machine Company had gone as high as 48; on Monday, October 28th, it had closed at 11 1/8. On that black Tuesday, somebody--a clever messenger boy for the Exchange, it was rumored--had the bright idea of putting in an order to buy at 1--and in the temporarily complete absence of other bids he actually got his stock for a dollar a share! The scene on the floor was chaotic. Despite the jamming of the Communication system, orders to buy and sell-mostly to sell--came in faster than human beings could possibly handle them; it was on that day that an exhausted broker, at the close of the session, found a large waste-basket which he had stuffed with orders to be executed and had carefully set aside for safekeeping-and then had completely forgotten."</span><br /><br /><span style="color: rgb(204, 0, 0);">...</span><br /><br /><span style="color: rgb(204, 0, 0);">"Coolidge-Hoover Prosperity was not yet dead, but it was dying. Under the impact of the shock of panic, a multitude of ills which hitherto had passed unnoticed or had been offset by stock-market optimism began to beset the body economic, as poisons seep through the human system when a vital organ has ceased to function normally. Although the liquidation of nearly three billion dollars of brokers' loans contracted credit, and the Reserve Banks lowered the rediscount rate, and the way in which the larger banks and corporations of the country had survived the emergency without a single failure of large proportions offered real encouragement, nevertheless the poisons were there; overproduction of capital; overambitious (expansion of business concerns; overproduction of commodities under the stimulus of installment buying and buying with stock-market profits; the maintenance of an artificial price level for many commodities, the depressed condition of European trade. No matter how many soothsayers of high finance proclaimed that all was well, no matter how earnestly the President set to work to repair the damage with soft words and White House conferences, a major depression was inevitably under way.</span><br /><br /><span style="color: rgb(204, 0, 0);">Nor was that all. Prosperity is more than an economic condition; it is a state of mind. The Big Bull Market had been more than the climax of a business cycle; it had been the climax of a cycle in American mass thinking and mass emotion. There was hardly a man or woman in the country whose attitude toward life had not been affected by it in some degree and was not now affected by the sudden and brutal shattering of hope. .With the Big Bull Market zone and prosperity going, Americans were soon to find themselves living in an altered world which called for new adjustments. new ideas, new habits of thought, and a new order of values. The psychological climate was changing; the ever-shifting currents of American life were turning into new channels.</span><br /><br /><span style="color: rgb(204, 0, 0);">The Post-war Decade had corne to its close. An era had ended."</span><br /><a href="http://xroads.virginia.edu/%7Ehyper/allen/ch13.html">http://xroads.virginia.edu/~hyper/allen/ch13.html</a><br /><br /><br /></blockquote><br>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com14tag:blogger.com,1999:blog-8305505968390768234.post-17330982389087639722010-06-03T00:27:00.006-04:002010-06-03T00:32:04.129-04:00Oilcanes<br>How long are we going to wait to evacuate people residing in coastal regions from Texas to Florida? Do we even have an estimate of the deaths and damage that will result from the first oilcane?fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com9tag:blogger.com,1999:blog-8305505968390768234.post-37037949930993331302010-06-02T09:21:00.003-04:002010-06-02T09:29:10.228-04:00PW Update<br>With the recent market tumble and the mini spike in PMs, my VSE portfolio was zero % return as of PM opening prices this morning (worth 102K/100K, or +2%, but close enough). So, given Marketwatch.com VSE's inability to fix a reverse split of 1 for 10 on a short position, I took this opportunity to eat a percent or two; it is time to adjust my portfolio anyway. PW should work from here forward.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com0tag:blogger.com,1999:blog-8305505968390768234.post-8286923992289682962010-05-30T19:58:00.009-04:002010-05-30T21:20:53.454-04:00Terror in the Gulf<br>As soon as news of the gulf oil spill became public, the Russians suggested the only way to stop it was by nuclear detonation on the ocean floor. A suggestion met with skepticism, at best. <br /><br />First, it seemed odd, to me anyway, that the Russians had any opinion at all, let alone such a quick and controversial response to a problem few understood, perhaps no one. Or, perhaps someone. As the more ominous nature of this spill takes shape, let us wonder openly about a few things:<br /><br />How many accidents happen where there can be no reasonable establishment of causality? 1 in 100? 1,000? Is there even a way to estimate the un-likelyhood? Even an asteroid strike can be assigned certain cause, a well understood risk lurking in the heavens.<br /><br />How many oil rigs spontaneously combust?<br /><br />How many of those gush at the ocean floor, a mile down?<br /><br />How many of those create a pool of oil in the middle of the most famous hurricane landing point in the world, which also happens to be upwind of the most envied country in the world?<br /><br />How many of those can amass a giant pool of oil from leak to beach, without leaving enough time to clean it up, just before the beginning of hurricane season? <br /><br />Not many.<br /><br />Let's assume the only way to relieve such a deep gusher is by re-drilling next to the site, an act that cannot be physically completed in less than several months. Let's assume such timing is well understood. Let's ponder the potential wreckage of several times the current spill, being repeatedly blanketed atop the southern and eastern United States.<br /><br />Freak accident? I think the odds against it. Let's pause before taking that all to timely Russian advice.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com8tag:blogger.com,1999:blog-8305505968390768234.post-30606756909080000282010-05-29T01:31:00.017-04:002010-05-29T02:16:45.991-04:00Economic Breakdown<br>In <a href="http://fdralloveragain.blogspot.com/2009/12/usd-shape-of-things-to-come.html">USD: Shape of things to Come</a> I posted the following:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhROtVSlhxCoxI6nqxOdNcxPYmwJ56RrEHTspE3sPW2AqTy8XQ7-PxCwIIiMuK9t9bFsTpdSrc1H4-G2WS_vJ4VaCKx7YYh7gtBpBloZ3brHxTlq51ie-qX3N9arNKKWHzvaX7XHtAFUQ/s1600-h/USD-Shape+to+come+copy.png"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 400px; height: 319px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhROtVSlhxCoxI6nqxOdNcxPYmwJ56RrEHTspE3sPW2AqTy8XQ7-PxCwIIiMuK9t9bFsTpdSrc1H4-G2WS_vJ4VaCKx7YYh7gtBpBloZ3brHxTlq51ie-qX3N9arNKKWHzvaX7XHtAFUQ/s400/USD-Shape+to+come+copy.png" alt="" id="BLOGGER_PHOTO_ID_5411589041401274402" border="0" /></a><br /><br />At the time, I pointed out that the US Dollar has been in a raging bull market for almost two years, a belief shared by, well, no one!<br /><br />So equating that EW fractal forecast to today, here we sit, on the naked edge of the most ominous economic disaster in human history:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdVna-F520tR8832ctUjUjiWCxHWchkFAEar9Sv_1dipmtuO3oYqsakAfl6Z3Ck0HxBcSC-e9T4C9RL1BCkl0dr-8AOj4pAF3S1deQnhx3Pk5xhQMwl6O67R2C9ar29spdC2K3AVYzvg/s1600/doom.png"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 328px; height: 400px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdVna-F520tR8832ctUjUjiWCxHWchkFAEar9Sv_1dipmtuO3oYqsakAfl6Z3Ck0HxBcSC-e9T4C9RL1BCkl0dr-8AOj4pAF3S1deQnhx3Pk5xhQMwl6O67R2C9ar29spdC2K3AVYzvg/s400/doom.png" alt="" id="BLOGGER_PHOTO_ID_5476563050438509042" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Those who understand this blog know that our dollar's unprecedented, years-long bull market, against all other major currencies, has nothing to do with US economic strength. Rather it has everything to do with US economic weakness. There is no "flight to safety." There never is. What there IS is a collapse in lending from US consumer credit exhaustion, and that has drying up the US dollar supply since late 2007. The collapse of US cash supply is what spikes the value of surviving dollars.<br /><br />Less bank-printed cash sloshing around to compete for assets, means prices will continue to fall, and the fractal indicates a massive spike in $ value looms in our immediate future. That means falling prices denominated in dollars and an acute spike in bank failures. Less US cash in circulation also means each surviving dollar will buy more foreign currency, sending the Euro and EU into a graveyard spin from which it will never recover (not in our lifetimes, nor our children).<br /><br />The purple arrows, above, show a rough fractal equivalency. Will the EU collapse very soon? Yes. Is it the fault of the EU? Absolutely. They are fully linked to US economic activity due to a stagnant, predominantly socialist economy. But as the world tumbles into the abyss, it is important to understand that the economic driver of the EU's demise is a lack of US bank-printing/lending, eradicating US and thus world-wide liquidity. <br /><br /><span style="font-weight:bold;">Hold on. Sell assets for dollars while you still can (especially unload precious metals). Avoid large banks, especially Bank of America. Hoard US cash and treasuries.</span><br /><br />If EVER there was an appropriate time to unleash <a href="http://www.soundboard.com/sb/Godzilla.aspx">the fury of Cashzilla</a>, that time is now:<br /><br /><br /><img alt="[$zilla.png]" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj9Fsw6BzwIbEIsnYmcZouOhEw-9sIXkWeyYVVbmdOLjfw4-8sP2REwSExruk9LO1QkaHuIf_rMCRNFE3Bun4ztl8un8XeuBE0RoBGUnbIQv3V_3XJl6ikRjX4mWy88sZwHiqQPypSGDg/s1600/$zilla.png" border="0" />fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com9tag:blogger.com,1999:blog-8305505968390768234.post-29123404702157986212010-05-21T08:23:00.004-04:002010-05-25T09:44:19.767-04:00Quick UpdateEach time I take a trip it seems to be a market top. <a href="http://fdralloveragain.blogspot.com/2010/02/trading-alert-stock-market-crash.html">No change to the outlook</a>. Will return in June and will try to get out an update before then.<br /><br />My active Dow forecast remains unchanged (see Open Market Forecasts, below), Dow 3,800 by 2012.<br /><br />On a side note, Portfolio Watchers will need to some manual calcs. Marketwatch VSE is unable to fix a 1 to 10 reverse split for one of the portfolio ETF symbols. I'll probably move it to a new site, but there is no change to the core stock positions. I updated the overall portfolio percentage on the blog by xls calculation.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com8tag:blogger.com,1999:blog-8305505968390768234.post-23320209556733904192010-04-02T07:44:00.015-04:002010-04-02T07:58:36.735-04:00Cooking the Jobs Report<br>If ever there was evidence that government agencies are sensitive to political pressure (no!), todays jobs number is it.<br /><br />After hiring 1.25M workers for the census (a waste of $22/hour on a political battle unrelated to the original purpose of the census), will the BLS use this opportunity to bury millions of lost jobs that they've been saving up? I wonder....<br /><br />Any useful job-counting method would show +1.25M this cycle, at least as a starting point. Let's see how reliable and accurate the BLS really numbers really are. The implication of a number that isn't reasonably close to +1.25M is twofold:<br /><blockquote>1) It shows the true state of the economy, <span style="font-weight:bold;">X - 1.25M = R</span> (where X is the BLS' "saved-up" number and R is reality)<br /><br />2) It will reveal with certainty that our unemployment stats are cooked</blockquote>Of the two, #2 is the bigger problem.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com26tag:blogger.com,1999:blog-8305505968390768234.post-11958230737051879892010-03-27T14:15:00.010-04:002010-03-28T18:30:14.360-04:00Images of Universal Heath Care<br>Insurance beneficiary:<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0P2_gRQev9BdtBsHRdn9RTga1vpmxmdMfPPMIRbk1shMh7zNpRplp0CURjjcHMgsMZ8vKNFGZC15U36mf00CPuY9LHiHyucCBXuqukyGBZ-acveYjZxAsr9wk-LTKxiezHuITAsPhhg/s1600/Survivor+of+the+Auschwitz+death+march.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 232px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0P2_gRQev9BdtBsHRdn9RTga1vpmxmdMfPPMIRbk1shMh7zNpRplp0CURjjcHMgsMZ8vKNFGZC15U36mf00CPuY9LHiHyucCBXuqukyGBZ-acveYjZxAsr9wk-LTKxiezHuITAsPhhg/s320/Survivor+of+the+Auschwitz+death+march.jpg" alt="" id="BLOGGER_PHOTO_ID_5452265589881926274" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Doing what must be done to stay covered:<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.ushmm.org/lcmedia/photo/lc/image/29/29121.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 480px; height: 354px;" src="http://www.ushmm.org/lcmedia/photo/lc/image/29/29121.jpg" alt="" border="0" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://ivarfjeld.files.wordpress.com/2009/07/800px-dachau_cold_water_immersion.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 263px;" src="http://ivarfjeld.files.wordpress.com/2009/07/800px-dachau_cold_water_immersion.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br />A medical screening:<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://farm1.static.flickr.com/35/109532156_b8f695a2ea.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 355px; height: 235px;" src="http://farm1.static.flickr.com/35/109532156_b8f695a2ea.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Many were able to choose their own doctor:<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://static.open.salon.com/files/mengele1240270242.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 250px; height: 432px;" src="http://static.open.salon.com/files/mengele1240270242.jpg" alt="" border="0" /></a><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Children that benefited from automatic coverage;<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.mengele.dk/images/exp1.jpg"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 300px; height: 242px;" src="http://www.mengele.dk/images/exp1.jpg" alt="" border="0" /></a>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com13tag:blogger.com,1999:blog-8305505968390768234.post-69690537982480989252010-03-24T20:29:00.010-04:002010-03-24T20:44:30.088-04:00ZOOM..... ... . ... . . .. .<br>From my <a href="http://fdralloveragain.blogspot.com/2009/11/holiday-update.html">Nov</a> and Dec 2009 article <a href="http://fdralloveragain.blogspot.com/2009/12/usd-shape-of-things-to-come.html">USD: Shape of things to Come</a>:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifDc_aOFubyJMHQN-HqPRFrZqbNRsW5iLv_9WNIyFUapyACA8IGuuLQ7w3bg7xmiXSLngvJ83yW_t8YKytq8OrVoI0ReLXIeKACkFf7MqayVTeML1ygahRbzvIJwtrdb-ddJPeQWLWUA/s1600/USD-Shape+to+come+copy.png"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 319px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEifDc_aOFubyJMHQN-HqPRFrZqbNRsW5iLv_9WNIyFUapyACA8IGuuLQ7w3bg7xmiXSLngvJ83yW_t8YKytq8OrVoI0ReLXIeKACkFf7MqayVTeML1ygahRbzvIJwtrdb-ddJPeQWLWUA/s400/USD-Shape+to+come+copy.png" alt="" id="BLOGGER_PHOTO_ID_5452362934964676882" border="0" /></a><br /><br />And off we go...<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqn8Hqh1WsmU3FbAsMzieS70wbwlqdDbd8CTNlprYwgVFMddfNqW2uTX2NMjK91wDKwaHbe7QTx5ReKer4tpRUBnMRCW51YgPCV0-E70N1aICixJBjoO-SMOrrxH6N1GHYvv3G-lWqRA/s1600/USD.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 217px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqn8Hqh1WsmU3FbAsMzieS70wbwlqdDbd8CTNlprYwgVFMddfNqW2uTX2NMjK91wDKwaHbe7QTx5ReKer4tpRUBnMRCW51YgPCV0-E70N1aICixJBjoO-SMOrrxH6N1GHYvv3G-lWqRA/s400/USD.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5452363311016114546" /></a><br /><br />In the big scheme of things, time is short. As usual, I recommend a one year (minimum) cash reserve under your own roof, enough to pay all bills and essentials. Keep the rest <a href="https://www.treasurydirect.gov/go_to_login.htm">in a US Treasury account</a>--no longer term than the end of your hard cash and ladder the rest. Simple enough.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com15tag:blogger.com,1999:blog-8305505968390768234.post-12199363917429117862010-03-24T12:51:00.009-04:002010-03-24T17:05:45.938-04:00There is No Party of No<br>Marketwatch.com posted another pro-movement piece today, titled "Party of No Fails" cocerning universal health care. My response follows:<br /><hr><br />There is no "Party of No." Both parties desperately want this and are both part of the ongoing Socialist/Marxist coup.<br /><br />The Repubs are on the story board to make people feel like they have a voice. You don't.<br /><br />The predetermined vote margins are an important clue. By barely passing this bill, the Supreme Court (also on the Fed dole--look no farther than Justices now taking their paycheck in private-issue Federal Reserve bank notes--a woefully unconstitutional act) can easily pin the tail on each and every State suing the Federal government as solely responsible for passage in the first place. Nebraska suing up front is a perfect example.<br /><br />The purpose of flooding the Supreme Court with law suites filed by the same States who were responsible for shoving the bill down peoples throats, is to quickly establish a pro-coup precedent that prevents citizens from taking court action.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com6tag:blogger.com,1999:blog-8305505968390768234.post-30765971223788400122010-03-23T01:26:00.025-04:002010-03-23T12:40:52.466-04:00The Dow Jones Marketing Index<br>I think some people believe the Dow Jones Industrial Average has something to do with stock performance. That's not exactly the case. The Dow is a sales gimmick, a trick that is played on people to steal their money. Take the following quiz to see if you understand the DJIA:<br /><br /><span style="color: rgb(204, 0, 0);">Directions: Please assume nothing changes exept the Dow components in question, then pick the BEST answer. Don't scroll down until you are finished, the answers are listed below.</span><br /><br /><span style=";font-family:arial;font-size:100%;" >1.) If Citigroup stock went to $0 tomorrow, the Dow would:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. Not change<br />b. Drop 360 points<br />c. Drop 180 points<br />d. Drop 712 points<br /><br /></span></blockquote><span style=";font-family:arial;font-size:100%;" >2.) Citi stock goes to $0, at the same time IBM announces a new CEO and rises 4%, the Dow:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. Goes up<br />b. Goes down<br />c. Stays the same</span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >3.) GM was replaced by Cisco on June 1, 2009. On June 2, 2009, Cisco needed to climb ___% to equal the effect of GM's stock plunging -50% just a few days prior.</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. 3<br />b. 115<br />c. 50<br />d. 200</span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >4.) If Microsoft stock goes from $30 to $60 tomorrow, the Dow will climb:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. 135 points<br />b. 410 points<br />c. 40 points<br />d. 1,200 points<br /></span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >5.) If every Dow component rises $1 tomorrow, the Dow will rise:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. 240 points<br />b. 30 points<br />c. 300 points<br />d. 90 points</span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >6.) Which relationship is true with respect to making the Dow move:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. Alcoa + BofA + Citi+ GE + Intel + Kraft + Pfizer = IBM<br />b. J&J = Kraft<br />c. Citi + BofA = JP Morgan Chase<br />d. Caterpillar + Chevon + Disney = Exxon</span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >7.) If a given Dow component falls today:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. Tomorrow it is weighted less<br />b. Tomorrow it is weighted more<br />c. Tomorrow it is weighted the same<br /><br /></span></blockquote><span style=";font-family:arial;font-size:100%;" >8.) How many of the original Dow components are still part of the Dow?</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. 0<br />b. 1<br />c. 7<br />d. 12<br /></span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >9.) 3M is 5 times more important than Pfizer.</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote style="font-family:arial;"><span style="font-size:100%;">a. True<br />b. False</span></blockquote><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >10.) If 3M goes from $82 to $83 at the same time Pfizer goes from $17 to $16:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><blockquote><span style=";font-family:arial;font-size:100%;" >a. The Dow will not change</span><span style=";font-family:georgia;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >b. The Dow goes up 50 points</span><span style=";font-family:georgia;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >c. The Dow goes Down 50 points</span><span style="font-size:130%;"><br /></span><br /></blockquote><span style=";font-family:arial;font-size:100%;" >I added one more question to clarify a comment...<br /><br />11.) If 15 of 30 Dow components go down 1% per day, and the other 15 components go up 1% per day, after 30 days the Dow would</span><span style=";font-family:arial;font-size:100%;" > (hypothetically assuming all Dow components started out equally weighted, and the index started at 10,800)</span><span style=";font-family:arial;font-size:100%;" >:</span><span style=";font-family:arial;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" ></span><blockquote><span style=";font-family:arial;font-size:100%;" >a. Go up to 11,240</span><span style=";font-family:georgia;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >b. Go down to 10,400</span><span style=";font-family:georgia;font-size:100%;" ><br /></span><span style=";font-family:arial;font-size:100%;" >c. Not change<br /></span></blockquote><span style="font-size:130%;"><br /></span><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><hr />Answer (a) is always correct.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com16tag:blogger.com,1999:blog-8305505968390768234.post-75301812377595588732010-03-21T21:12:00.017-04:002010-03-21T22:34:43.740-04:00Waves of Human Civilization<br>Anon wrote: "FDRAOA, any chance could you post some longer-term charts showing your wave counts - maybe one showing the count from the market top in 2000 and one that includes the 1930s and maybe even a multi-century one?"<br /><hr /><br />Great question, thanks for asking. I'm not sure a chart would be of much use, since accurate price data is iffy beyond a century or so. But general trends are pretty clear. There are lots of potential very long wavelength EW possibilities and interpretations, so which ones you buy into are obviously up to you.<br /><br />Wave personalities are important and should align with the time period. As we talk through each set of waves, remember that all (W1-W2)s should be fractally self-similar to the larger degree W12345ABC, of which they form the first two waves.<br /><br />With that in mind, these are my thoughts. I've never seen EWs dissected quite this way before, but I'm sure it has been thought-through by many.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.elliottwave.com/images/marketwatch/Basic%20EW%20picture.gif"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 320px;" src="http://www.elliottwave.com/images/marketwatch/Basic%20EW%20picture.gif" alt="" border="0" /></a><br />Biggest picture (the Waves of human civilization):<br /><br /><span style="font-weight: bold;font-family:arial;" >W1</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Roman Empire</span></span><br /><span style="font-weight: bold;font-family:arial;" >W2</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">(Deep Zig Zag) Dark Ages and Crusades</span></span><br /><span style="font-weight: bold;font-family:arial;" >W3</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Renaissance</span></span><br /><span style="font-weight: bold;font-family:arial;" >W4</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">(Sideways) Exploration and consolidation of the New World</span></span><br /><span style="font-weight: bold;font-family:arial;" >W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Era of Modern Central Bank Looting (BoE counterfeiting model)</span></span><br /><span style="font-weight: bold;font-family:arial;" >WA</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Now forming</span></span><br /><span style="font-weight: bold;font-family:arial;" >WB</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">TBD</span></span><br /><span style="font-weight: bold;font-family:arial;" >WC</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">TBD</span></span><br /><hr /><br />Lesser degree discussion:<br /><br />In W1, we see a frenzied, extended top that culminates in the severe overconfidence of a single Global Super-Power, the Romans, followed by a total currency collapse as money evolves from hard precious coin to banker-fiat, finally ending in barbaric warfare against an "invincible" professional army; the barbarians eventually win outright.<br /><br />In W2 we have centuries of lost culture, suffering and famine, seemingly endless wars and unthinkable brutality. W2 is a fractal match to the era we are slowly slipping into today.<br /><br />In W3 mankind rediscovers culture and civility in an explosion of creativity and scientific competence.<br /><br />In W4 we explored new worlds and consolidated them into existing economic relationships.<br /><br />In W5 the Bank of England invents and asserts itself for the purpose of royalties paid by the globally less sophisticated to the lazy, inbred global king pins of a massively corrupt criminal underworld. W5 culminates with the rise and (coming) fall of the modern Federal Reserve system.<br /><hr /><br />Lesser degree discussion:<br /><br />Let's only talk the internal structure of W5, above, the Era of Modern Central Bank Looting.<br /><br /><span style="font-weight: bold;font-family:arial;" >W1 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">BoE creates the South Sea Bubble (1694-1725)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W2 of W5 </span><span style="font-family:arial;">- <span style="color: rgb(204, 0, 0);">(Deep Zig Zag) Crash of 1730</span></span><br /><span style="font-weight: bold;font-family:arial;" >W3 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Economic Rise of New World (America and Far East) (1730-1776)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W4 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">(Sideways) BoE causes American Revolution and plunder of Far East (late 17th century)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">American Capitalism (1785-ish to 2000)</span></span><br /><hr /><br />Let's only talk the internal structure of W5 of W5, above, the fifth wave of the Era of Modern Central Bank Looting.<br /><br /><span style="font-weight: bold;font-family:arial;" >W1 of W5 of W5 </span><span style="font-family:arial;">- <span style="color: rgb(204, 0, 0);">Hamilton resurrects BoE ties in the form of FBUS/SBUS</span></span><br /><span style="font-weight: bold;font-family:arial;" >W2 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">(Deep Zig Zag) Andrew Jackson sends BoE packing, all currency is extinguished</span></span><br /><span style="font-weight: bold;font-family:arial;" >W3 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Jacksoinan era sparks Industrial Revolution</span></span><br /><span style="font-weight: bold;font-family:arial;" >W4 of W5 of W5 </span><span style="font-family:arial;">- <span style="color: rgb(204, 0, 0);">(Sideways) WWI thru Great Depression (nothing compared to 1836-42)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">1932 to Present</span></span><br /><hr /><br /><span style="font-weight: bold;font-family:arial;" >W1 of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">New Deal socialism sputters (1932-1939)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W2 of W5 of W5 of W5 </span><span style="font-family:arial;">- <span style="color: rgb(204, 0, 0);">WWII (1939-1942)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W3 of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Rise of modern American might (1942-late-60s)</span></span><br /><span style="font-weight: bold;font-family:arial;" >W4 of W5 of W5 of W5 </span><span style="font-family:arial;">- <span style="color: rgb(204, 0, 0);">Late 1960s dopers (now in charge of America) thru Vietnam</span></span><br /><span style="font-weight: bold;font-family:arial;" >W5 of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">1974-2000 Rise of mega-government-enabled Central Bank Looting</span></span><br /><hr /><br /><span style="font-weight: bold;font-family:arial;" >W1 of W5 of W5 of W5 of W5 </span><span style="font-family:arial;">- <span style="color: rgb(204, 0, 0);">Gerald Ford </span></span><br /><span style="font-weight: bold;font-family:arial;" >W2 of W5 of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Jimmy Carter </span></span><br /><span style="font-weight: bold;font-family:arial;" >W3 of W5 of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Ronald Reagan </span></span><br /><span style="font-weight: bold;font-family:arial;" >W4 of W5 of W5 of W5 of W5 </span><span style="font-family:arial;">-<span style="color: rgb(204, 0, 0);"> George Bush I (closet aristocratic socialist) </span></span><br /><span style="font-weight: bold;font-family:arial;" >W5 of W5 of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Bill Clinton </span></span><br /><hr /><br />After 5 completed movements of fractal degree, all waves reverse and begin their ABC. Note, Wave A may also subdivide into 3 waves, which is my prefereed count.<br /><br /><span style="font-weight: bold;font-family:arial;" >WA of WA of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">George Bush II (closet aristocratic socialist) </span></span><br /><span style="font-weight: bold;font-family:arial;" >WB of WA of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">"</span></span><br /><span style="font-weight: bold;font-family:arial;" >WC of WA of W5 of W5 of W5</span><span style="font-family:arial;"> - <span style="color: rgb(204, 0, 0);">Barack Obama (still unfolding)</span></span><br /><span style="color: rgb(204, 0, 0);font-family:arial;" >...completion of WA bottom, around 2012</span><br /><hr /><br />There are various ways to interpret the opening stages of the long, grinding collapse of Planet Earth, but it's mostly academic. Centuries-long Dark Ages to follow....fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com14tag:blogger.com,1999:blog-8305505968390768234.post-123589517874422342010-03-21T12:18:00.012-04:002010-03-21T12:45:19.644-04:00Health Care Bill to Collapse the World Economy<br>It never stops amazing me how EWs forecast human events so reliably.<br /><br />Over the past several years, I've been saying that although I don't know what the news event will be, some news event or group of them will collapse the global economy as a tidal Wave 3 down takes hold.<br /><br /><a href="http://fdralloveragain.blogspot.com/2010/03/too-much-liquidity-is-your-friend.html"><u>As we sit at the completion of the lower degree W2 of that mammoth Wave 3 down</u></a>, confirmed in virtually all markets, and yesterday we completed (or nearly completed) an even smaller degree W2 of momma W3 herself, it seems clarification has arrived.<br /><br /><div style="text-align: center;"><span style="color: rgb(153, 153, 153);font-family:arial;" >CLICK TO ENLARGE</span><br /></div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWauZkllhIgxAMuAtDsaNO2igFNDO1Xgtb0kNH2SjV-A-07rvGruztdTNM5-oiiEej9IuLjpYpnaINsLoxZ6PN_Ej8OW_yzP9qqmbsxzm8JJ4LXslGsLecxnM1vW3Q4KxGqeeNa9Pu4g/s1600-h/BOvsHCstockpicture.PNG"><img style="float: left; margin: 0pt 10px 10px 0pt; cursor: pointer; width: 400px; height: 256px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWauZkllhIgxAMuAtDsaNO2igFNDO1Xgtb0kNH2SjV-A-07rvGruztdTNM5-oiiEej9IuLjpYpnaINsLoxZ6PN_Ej8OW_yzP9qqmbsxzm8JJ4LXslGsLecxnM1vW3Q4KxGqeeNa9Pu4g/s400/BOvsHCstockpicture.PNG" alt="" id="BLOGGER_PHOTO_ID_5451128382782562930" border="0" /></a>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com4tag:blogger.com,1999:blog-8305505968390768234.post-1977460069351531852010-03-20T06:49:00.014-04:002010-03-20T17:19:37.476-04:00First Day of Spring Buries West Texas Under a Foot of Snow<br>Record snowfall is continuing into Spring as the normally sweltering deserts of western Texas get blasted by another record blizzard.<br /><br />The Fort Worth Star-Telegram held it's first-ever snowman contest, receiving more than 400 entries. Six received praise:<br /><br /><span style="font-weight:bold;">'Marshmallow Man' look-alike</span><br /><br />Erick Thomas and family, Arlington<br /><br />This snowman had staying power: seven days, to be exact. It's no wonder, at 13 feet tall and 10 feet wide (including the arms made out of 2-by-4's). Thomas, his daughters -- ages 8 and 5 -- and a neighbor worked on this mammoth man in Thomas' front yard for two days.<br /><br />"We were just making a snowman and decided ... we might as well do it as big as we can," he said. The eyes are made of beer bottles and the mouth is made of charcoal.<br /><br />It became a neighborhood tourist attraction. "A lot of people stopped by, got out and took photos," he said.<br /><br /><span style="font-weight:bold;">Think tank</span><br /><br />Rosalie Kobetich, Lipan<br /><br />"While passing the commode in our pasture -- which usually is filled with flowers -- the idea occurred to me to build The Thinker," says Kobetich, who is a painter and a member of the Weatherford Art Association. The 5-foot-3 snow sculpture took about 90 minutes to complete by herself and is adorned with a branch of pine needles.<br /><br />"Unfortunately, he lost his head the next morning because it got pretty mushy out there," Kobetich said. "Too bad he didn't stay longer."<br /><br /><span style="font-weight:bold;">Snow warrior</span><br /><br />Jim Walter, Burleson<br /><br />"This is a statue of a Viking warrior standing on the deck of his long boat, but we didn't have enough snow for the boat," Walter says.<br /><br />During the snowfall, Walter's family had six different snowman projects going on their pasture, and they were scrambling to complete them before the snow melted. The Viking was his idea. This menacing warrior, holding a spear in his left hand, eventually sunk back into history.<br /><br /><span style="font-weight:bold;">Cold sweat</span><br /><br />Michael and Tammie Baker, Fort Worth<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://media.star-telegram.com/smedia/2010/02/28/18/Snowman_Davis_1.thumb.prod_affiliate.58.jpg"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 133px; height: 100px;" src="http://media.star-telegram.com/smedia/2010/02/28/18/Snowman_Davis_1.thumb.prod_affiliate.58.jpg" border="0" alt="" /></a><br /><br />"My wife and I exercise together," says Michael Baker. "I run, and she follows me on her bike. We thought that our snow people should reflect our hobby, so we built a runner and a rider in front of our home."<br /><br />This cardio-tastic snow couple are wearing the Bakers' own clothes and shoes (the race number is from last year's Cowtown Marathon) and using their own bike and ear buds. The hardest part was balancing the one on the bike.<br /><br />So did they work out after they built their snow avatars? Baker laughed. "That was our exercise for the day."<br /><br /><span style="font-weight:bold;">Snow dragon</span><br /><br />Sarah Blaido, Hurst<br /><br />Sarah, 16, spent three days sculpting this dragon. The home-schooled high-school sophomore "really wanted to do a dragon because it's my favorite thing of all time," she said. She filled up big bins with dense, clean snow and built the rear first, then the middle and front sections. It measured 8 to 9 feet long.<br /><br />Unfortunately, not many people got to see her creation before it melted. "On the last day, I was just putting on finishing touches when the sun came out, and it immediately started melting," she said.<br /><br /><span style="font-weight:bold;">Global warming protest</span><br /><br />Curtis and Melissa Reeves, Weatherford "Thirty snowmen held a global warming protest in Weatherford," the Reeveses said in their clever entry. "The protest ran for two days before the crowd dissipated. No injuries were reported. However, the protesters did leave their signs on our sidewalk."<br /><br />It took the husband-wife team a few hours to create this snowy scene; each snowman was about a foot tall. It looked especially neat when the candles were lit at night, they said. However, all the snowmen eventually fell victim to the warming trend.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com2tag:blogger.com,1999:blog-8305505968390768234.post-81508646957886618622010-03-12T18:30:00.021-05:002010-03-16T11:29:34.570-04:00TRADING ALERT: Too Much Liquidity is Your Friend<br>I've often talked about the evils of Federal Reserve corporation counterfeiting, but sometimes it is your friend. Today's stock market is a good example...<br /><br />Over the past 97 years, the Federal Reserve has slowly flooded our markets with funny money, creating the greatest global market hyperinflation since the BoE engineered the South Sea Bubble. <br /><br />Think of modern-day hyperinflation as the water level above an ocean floor. There are features on the floor that the make underlying terrain unique, like a variety of financial different markets <span style="font-style:italic;">should behave</span>, each with its own, independent and characteristic, price behavior. But after you flood the earth with liquid, baseless paper in the metaphor, the water level eventually drowns the interesting features below, and coincident waves of liquid cash create the dominant force driving prices of all markets.<br /><br />The DJIA is a perfect example of hyperinflation. Since its low of 40 in 1932, the original Dow 30 index has kicked every company out except GE. And yet, this shadow of a ghost, that one-thirtieth of what $40 used to buy, now sells for a little over $10,600. Literally, it takes a wheelbarrow full of worthless paper cash to buy what little remains of the 1932 Dow.<br /><br />The "evil" part is that the Federal Reserve has sold The People of the United States mountains of this worthless paper in exchange for real assets; those assets are gone (to the Fed's private owners). So what's the "good" part? Why is Fed counterfeiting our friend at the moment?<br /><br />For the answer, see the chart snippets below. As of today, we sit at the top of a minor W2 of a major W3 in virtually every market. Why do all the counts interlock? $10,600 of pure paper liquidity flooded on top of every $1 or $2 dollars of 1932 value. These counts are dominated by nearly 100 years of mounting hyperinflation. <br /><br />Proof? Look no farther than P/E ratios, floating almost fifty-fold above the 1932 ratio of 5. That is exactly what you'd expect as the result of hyperinflation. <br /><br />Am I predicting hyperinflation? No. I am pointing out that it has already occurred. It is the dominant force driving all market prices today.<br /><br />Stocks, oil, gold, silver, corn, cattle, you name it, and of course, inversely, the dollar--all waves are aligned on this March 2010 morning--and in all cases, a major downward W3 is forming (the USD being reversed: about to explode upward). <br /><br />Every table is set, or already in breakdown. The charts below are all 3 months long. Minor details are more clear in some than others, but it doesn't matter, if you can count one, you have counted them all.<br /><br />Idealized Impulsive W1-W2 (downward):<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2rn6FMP1bZ5HSl1_U8eNRgqjt60C7AK4WzUoCx3hH0w783_JX889z7DSOwsS7c7Uggzv6JxbZpPAXKbFpxNaIpl1xjyICydxuYaqCaixy-UenJJEaPhFuB-M6HMEU5ZpapR9nDvBg6A/s1600-h/wave.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 327px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2rn6FMP1bZ5HSl1_U8eNRgqjt60C7AK4WzUoCx3hH0w783_JX889z7DSOwsS7c7Uggzv6JxbZpPAXKbFpxNaIpl1xjyICydxuYaqCaixy-UenJJEaPhFuB-M6HMEU5ZpapR9nDvBg6A/s400/wave.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5449089025094353746" /></a><br /><br />Oil (already in breakdown):<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDoOwFKgzWblQ6O9o1hnPUAL3iH-_AIrzLFAZP-XY54_Wthyphenhyphen5wVGX-9KywT60myFzFeD_M3pL3N15r7pF4RlUiV1i05rWH4iR4LRGGuLfHg9QLduWLZ74lLziLd6t_UN_oiSD44IQPKw/s1600-h/oil.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 221px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhDoOwFKgzWblQ6O9o1hnPUAL3iH-_AIrzLFAZP-XY54_Wthyphenhyphen5wVGX-9KywT60myFzFeD_M3pL3N15r7pF4RlUiV1i05rWH4iR4LRGGuLfHg9QLduWLZ74lLziLd6t_UN_oiSD44IQPKw/s400/oil.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5449086637636961442" /></a><br /><br />Silver (already in breakdown):<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9uADObxEDMbcmW0blHkiqC3e-NMtD_jh9jA5SwHKsXjmGcvcaWMglVpyTW1GocgFXuaL1YXlJUh8v0KFT0-zHwPhYCmiDogfFAbZBRI7AiAEkVqcufKgwdj1Qv2hohgk_0BTz0aaPUw/s1600-h/silver.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 221px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9uADObxEDMbcmW0blHkiqC3e-NMtD_jh9jA5SwHKsXjmGcvcaWMglVpyTW1GocgFXuaL1YXlJUh8v0KFT0-zHwPhYCmiDogfFAbZBRI7AiAEkVqcufKgwdj1Qv2hohgk_0BTz0aaPUw/s400/silver.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5449086575422141954" /></a><br /><br />Gold (already in breakdown):<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAh1tGxMAVjjtkwBTRl-00JGCgt0ooji7UGXvG1CZlI1Z0bTpdN7PYS2aTZ0xNwZxPbzB120J50NWknKBw-MIpo7-M3wPP28Hg3Kkky4p_QMPO1SgsfvNK9_7GHE2tZc2Sq1mibZrpvw/s1600-h/gold.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 221px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAh1tGxMAVjjtkwBTRl-00JGCgt0ooji7UGXvG1CZlI1Z0bTpdN7PYS2aTZ0xNwZxPbzB120J50NWknKBw-MIpo7-M3wPP28Hg3Kkky4p_QMPO1SgsfvNK9_7GHE2tZc2Sq1mibZrpvw/s400/gold.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5449086502759999906" /></a><br /><br />Stocks (about to breakdown):<br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidi8oqpo0k2NlKWnyghujgQ35zGXyuiyxV98LKv04PCOcrdEeJvU2V2f4ZviyUuXeIu7w4mYwYmZtSVpOubUrjuFqGa1W963BB8iLa_UCgQ2GvuhsXW5FMPM1ghPCsMN0cXfQMvpwRtQ/s1600-h/dow.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 221px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidi8oqpo0k2NlKWnyghujgQ35zGXyuiyxV98LKv04PCOcrdEeJvU2V2f4ZviyUuXeIu7w4mYwYmZtSVpOubUrjuFqGa1W963BB8iLa_UCgQ2GvuhsXW5FMPM1ghPCsMN0cXfQMvpwRtQ/s400/dow.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5449086429134071602" /></a>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com36tag:blogger.com,1999:blog-8305505968390768234.post-36242402666833692992010-03-12T00:30:00.005-05:002010-03-12T16:31:53.716-05:00Fed Accelerates Two Year Cash Drain<br>Anon wrote: "People are panicking out of the dollar"<br /><hr><br />0.14% for a 3-Month auction? The line to hold US cash can't get much longer. The money supply continues to drain faster than ever before:<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiojEvFbEEtgDGaWdpdK6HdNxZcZ5YLB2kvsgFLjy4STlxIUaynFdjqsXmYdnsTkLm4kCaO7Be6uaTzqNlHamzyDeEro4QIWJDPz8ltWrtBz-ae4tiz3ykRI6bV4t1DUTg7g-FA8ntQUw/s1600-h/sgs-m3.gif"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 400px; height: 256px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiojEvFbEEtgDGaWdpdK6HdNxZcZ5YLB2kvsgFLjy4STlxIUaynFdjqsXmYdnsTkLm4kCaO7Be6uaTzqNlHamzyDeEro4QIWJDPz8ltWrtBz-ae4tiz3ykRI6bV4t1DUTg7g-FA8ntQUw/s400/sgs-m3.gif" alt="" id="BLOGGER_PHOTO_ID_5447616552094881474" border="0" /></a><br /><br />For the past two years the Fed has been sucking dollars out of the system like there is no tomorrow, and there might not be.<br /><br>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com0tag:blogger.com,1999:blog-8305505968390768234.post-16740597223425056702010-03-07T18:49:00.011-05:002010-03-07T23:34:18.236-05:00Stock Market Update<br>A lot of people have asked for an update, so I've taken my stock updates from <a href="http://fdralloveragain.blogspot.com/2009/01/elliott-thumbnail.html">Jan 2009</a><br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIXO3i3uMldNe4UPlDXYaqvwM_TVgVro8oBNt5sybIwQchxGUfwqIEEabWHzqDV01D0nRbyMIxeOghJyzEJ55bwpwuPlwtsctV5nDRO4lyA0Swcf7K350-uRtcPvUXT4cF1t2A4yY9XA/s1600-h/BaseChart_w%23s.png"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 280px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhIXO3i3uMldNe4UPlDXYaqvwM_TVgVro8oBNt5sybIwQchxGUfwqIEEabWHzqDV01D0nRbyMIxeOghJyzEJ55bwpwuPlwtsctV5nDRO4lyA0Swcf7K350-uRtcPvUXT4cF1t2A4yY9XA/s400/BaseChart_w%23s.png" border="0" alt=""id="BLOGGER_PHOTO_ID_5446116392164974082" /></a><br /><br />...and <a href="http://fdralloveragain.blogspot.com/2009/11/holiday-update.html">Nov 27, 2009</a> (click to enlarge):<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFEMrSsLUsB4w343d1_ye-cMtaH5g1Y6A_Gv8zmal6kYTZrTYxr27_Y2Krzm-6OY4D8RN7BThnzUUQ7bKC0wM6Y8HZ2DaR8DjGhqE_uVh-qvdXsLSOwaiCGKB5-63v5F21QDdXoO6D3Q/s1600-h/stockpicture.PNG"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 400px; height: 256px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiFEMrSsLUsB4w343d1_ye-cMtaH5g1Y6A_Gv8zmal6kYTZrTYxr27_Y2Krzm-6OY4D8RN7BThnzUUQ7bKC0wM6Y8HZ2DaR8DjGhqE_uVh-qvdXsLSOwaiCGKB5-63v5F21QDdXoO6D3Q/s400/stockpicture.PNG" alt="" id="BLOGGER_PHOTO_ID_5446044157639867362" border="0" /></a><br /><br />And I've appended my new thinking (click to enlarge):<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTRhPw5Z6FVL0TyL_yZwMHdhPYr1_ZmFNvwb_AmpbdVeTFoGrxAPJZxVJeOS2UO-JHRNimKCkwLCvZDk6S6BxxpE93JeGdGffamAeDyvlBNf3Y4QPW1mzy1eExjwgZedxzBtxWRYW3Bg/s1600-h/stockpicture.PNG"><img style="float:left; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 400px; height: 256px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTRhPw5Z6FVL0TyL_yZwMHdhPYr1_ZmFNvwb_AmpbdVeTFoGrxAPJZxVJeOS2UO-JHRNimKCkwLCvZDk6S6BxxpE93JeGdGffamAeDyvlBNf3Y4QPW1mzy1eExjwgZedxzBtxWRYW3Bg/s400/stockpicture.PNG" border="0" alt=""id="BLOGGER_PHOTO_ID_5446113307532864738" /></a><br /><br />As I've been saying but would like to reiterate, the major W5 on that chart (Wave A bottom) will likely happen in or around 2012. My target for Wave A is Dow 3,800. Time is difficult to estimate, and basically unimportant compared to the price target being achieved. <br /><br />In other words, if EW's indicate that nature has programmed poker players to stand up and walk away from a poker table after losing $X, it doesn't really matter how many hands it takes to lose $X. That said, we might instinctively read into the same metaphor that time, or the number hands going nowhere, plays some role in the human decision making process.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com24tag:blogger.com,1999:blog-8305505968390768234.post-90317805618814380212010-03-05T07:12:00.020-05:002010-03-07T18:43:07.992-05:00The 11th Plank Has Arrived<br>Both congressional Democrats and Republicans (while feigning outrage) want to pass Government Health Care. That's why massive capital gains tax hikes (15% to 22.5%) and income tax bracket hikes (to 42.5%) are buried in the new version of the bill.<br /><br />For those not following U.S. (over-)achievement of the <a href="http://en.wikipedia.org/wiki/The_Communist_Manifesto"><u>10 planks of Marxism</u></a>:<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">1. Abolition of private property and the application of all rent to public purpose.</span><br /><br />Done.<br /><br />As we've seen all too well lately, banking corporations are our government. But to the extent some are private, by the time a 30 mortgage is paid, property taxes exceed original mortgage payments.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">2. A heavy progressive or graduated income tax.</span><br /><br />Done.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">3. Abolition of all rights of inheritance.</span><br /><br />Done.<br /><br />The death tax forces all family businesses, of any value, to turn over the keys to the corporate-government for pennies on the dollar when the owner dies. If you own nothing, you are exempt.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">4. Confiscation of the property of all emigrants and rebels.</span><br /><br />Mostly applied to US citizens through Eminent Domain.<br /><br />Marx was just an angry racist; the original White Supremacist.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">5. Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.</span><br /><br />Done.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">6. Centralization of the means of communication and transportation in the hands of the State.</span><br /><br />Done.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">7. Extension of factories and instruments of production owned by the State, the bringing into cultivation of waste lands, and the improvement of the soil generally in accordance with a common plan.</span><br /><br />TVA, Government Motors, more broadly... corporations and our government are indistinguishable. "The United States government will bear any burden and pay any price to ensure that Citigroup does not fail" --Chairwoman of congressional oversight panel<br /><br />Certainly, more to come.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">8. Equal liability of all to labor. Establishment of Industrial armies, especially for agriculture.</span><br /><br />Done.<br /><br /><span style="color: rgb(204, 0, 0); font-weight: bold;">9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country by a more equable distribution of the population over the country.</span><br /><br />Done.<br /><br />Government zoning has displaced individual land ownership. But I think Marx was probably high when he phrased this one.<br /><br /><span style="color: rgb(204, 0, 0);"><span style="font-weight: bold;">10. Free education for all children in government schools. Abolition of children's factory labor in its present form. Combination of education with industrial production.</span><br /><br /><span style="color: rgb(0, 0, 0);">Done.</span><br /></span><br /><span style="color: rgb(204, 0, 0);">And now, beyond Marx's wildest dreams:<br /><br /><span style="font-weight: bold;">11. </span></span><span style="color: rgb(204, 0, 0); font-weight: bold;"> Centralized control over citizens' physical being. Common enforcement of the ideal size and make-up of the population.</span><span style="font-weight: bold;"> </span><span style="color: rgb(204, 0, 0); font-weight: bold;">Care granted in proportion to production.</span>fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com17tag:blogger.com,1999:blog-8305505968390768234.post-86017899271641863092010-03-05T07:01:00.015-05:002010-03-05T07:11:30.025-05:00What do Dividends, M&A, and Health Control Have in Common?<br>Anon wrote: "Dividends picking up, M&A for cash picking up, and companies buying their stock proves this market is heading higher FDR"<br /><hr><br />Dividends heading higher is always a sign the market is going lower. At market peaks, dividends are virtually non-existent at around 2.5%, because people are happy with cap gains--companies don't need to pay cash flow to attract stock trader-speculators. <br /><br />At major market bottoms (talking Great Depression lows), dividends hover as high as 30% to attract investors (I'm interchanging the term "trader-speculator" and "investor" intentionally). Today we're in the 3-4% range.<br /><br />Remember the M&A flurry at the last major W2? It was at Dow 11.8K and only a few bears were left waiting, and waiting, and waiting on the market to turn lower. The Bear bandwagon emptied out, just like today. Then the stimulus bill passed and the very minute of the vote was the W2 peak. The market was at 6.5K within a few months.<br /><br />Interesting that the health care bill is set to pass as early as next week, with little hidden gems like an increase in the capital gains tax from 15% to 22.5%, and a similar income tax bracket increase. Just saying... look out man, it's coming. <br /><br />Any of these major news events could trigger it. It doesn't matter what the news is, EWs tells us that a major change is imminent and it will be interpreted as a major selling event. The same event would be a major buying event if the wave were on the other foot.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com0tag:blogger.com,1999:blog-8305505968390768234.post-59048680521358729252010-03-04T13:57:00.021-05:002010-03-04T14:17:12.596-05:00Gov: We'll Break America to Save Bankers<br>Reported by Market Watch:<br /><blockquote><span style="color: rgb(204, 0, 0);">"The sheer magnitude of Citigroup's operations, and the company's history of receiving extraordinary government support, has led this panel to an inescapable conclusion: The United States government will bear any burden and pay any price to ensure that Citigroup does not fail"</span> --Elizabeth Warren, chairwoman of the congressional oversight panel</blockquote><br />I guess it is old news that the FDIC has failed and is powerless to insure rapidly imploding $3T Citigroup and their 40x leveraged losses. <br /><br />The "price" is the wholesale disposal of the U.S Constitution. All to protect congressmen's private IRAs/401Ks, probably amounting to thousands of dollars. And that won't even work.<br /><br />Run.fdralloveragainhttp://www.blogger.com/profile/03488923148019117760noreply@blogger.com2