Tuesday, February 23, 2010

Shorting Their Own Stamps

Things are bad when the Post Office is smarter than Wall Street.


  1. I spit coke all over my screen again. These have been around forever

  2. Since April 12, 2007 for our depression.

    Laudable timing.

    The Post office should have been advising Bernanke, who was still asleep at the subprime wheel.

  3. Cracks me up that they are still delivering mail on Saturdays.

    I think I could deal with delivery twice a week.

  4. Here is another to look back on in a year

    In Denver, prices rose for the 10th month in a row, while San Francisco saw its eighth monthly gain.

    Buying activity in the San Francisco area is heaviest among homes priced $600,000 and below, said Doug Sager, an agent with ZIP Realty. More listings are receiving multiple offers above the asking price, with sellers preferring all-cash buyers to those who need financing.

    "People are realizing the bottom is creeping away" in San Francisco, Sager said.

  5. 10 months of a minor retrace after the plunge. It is time once again for the dark encircling gloom.

    Last time I checked San Francisco was the hardest hit market in the nation, so it isn't surprising they saw a good retracement after experiencing the largest fall. Hint for SF property owners: sell. Book your loss and run.

  6. Is Bondzilla related to Cashzilla?


  7. Speaking of Karl, I wonder how many people are frequent visitors of his site, and Mish's, Zerohedge, FDRAoA's blog.

    I think many.

  8. FDR all over again indeed

    WASHINGTON, Feb 24 (Reuters) - The United States has
    imposed preliminary duties ranging from 11 to 13 percent on
    steel pipe from China it said were unfairly subsidized, a
    source familiar with the decision said on Wednesday.
    The decision is a victory for U.S. Steel Corp and
    the United Steelworkers union, which filed a petition in
    October asking for protection against the Chinese imports.

  9. When do you think deflation actually starts to effect things around us. Housing is down but that is like saying the nasdaq is down, it is deflationary to some but not the entirety. Most of the things I see around me continue to rise in price, everyday purchases, sporting event tickets, etc. Was deflation this weak in the 1930's or was it running at a point where people actually noticed it without denial. It seems as thought the equity market is much more afraid of inflation the way there is panic buying everyday and very orderly selling. At some point you would think that a real grab for dollars would create selling in the most obvious places one can quickly raise cash, the equity market. With volume non existent I presume that one can game the system and mark assets where ever they please. If no one owns anything then no one is left to sell anything. We could thus have deflation show up some day and still a much higher equity market. I know that an institution cannot sell up here because of volume, but an individual should be able to take advantage of the guaranteed higher prices to sell and buy the dips knowing that there is enough volume to do so. The game is rigged and has been stated as such, so why not play along if the point is to gather as much currency as possible. Do you think the FED fails at holding up the equity market one day, things have changed a lot and their tentacles are in places they weren't just a couple of years ago. I feel that the DOW could be at 15k in 2 years and you could still be telling us how strong the dollar is and how rampant deflation is. At what point is deflation more than just a word?

  10. the unemployment rate for people making over 100k a year is running at 3.5% and 4% for those making over 75k a year. People making under 20k is running at 30%. This goes a long way to explain why prices have not come down on goods. Is there any stat database that shows the unemployment figures during the 1930's to see how this is different. It just seems like the 1930's were far worse than today. I assume the pain will only be felt when the rich are laid off, then and inly then will change occur on a government level. Why would you change things if the highest income levels remain in full employment, they provide all the purchasing power anyway. I will keep an eye on this stat and see if an increase in the unemployment rate of those making over 100k coincides with a lower equity market.

  11. If we are already down by 85%, and right now the DJI is climbing at 10383 something, then I still see a possibility that "the DOW could be at 15k in 2 years and you could still be telling us how strong the dollar is and how rampant deflation is."

  12. "I still see a possibility that "the DOW could be at 15k in 2 years and you could still be telling us how strong the dollar is and how rampant deflation is."

    But the reality is I told you to go cash (or short) at Dow 14k and I was right. And I'm still right.

  13. USPS is preparing for another increase in rates.

    Is this still shorting if their costs are rising?

  14. Forget that last comment about the rate going up to cover their cost increases.

    It's really covering their lack of revenue.

    However, is it still shorting if rates are going up because of the lack of revenue?

    I would think they may have lost some gains on this strategy.


The USA's political-economc system is best described as:

On Nov 2, 2010, I plan to vote (FOR or AGAINST) my incumbent congressman

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