Dear Readers, we had a bad day today. No, we did not lose money( gained on the initial trade, lost on the follow up), but what transpired was despicable. NATIOANL CASINO IS CLOSED FOR TODAY. SOPITALISTS sold honest savers/earners of America again. Looking in their EYE'S they have spet in it and said, "here rat, you deserve to be our slave, and you are, just keep working and living rat's life and transfer your savings to us". I can not explain the pain I feel for, SENIORS/STUDENTS/SINGLE MOTHERS/FAMILIES WITH MODEST MEANS. Hear the celebration on wall street, SOPITALISTS, keep spitting right in your faces REAL AMERICANS, when will you wake up...
1) Start by selling the $USDollar, we warned you for months that SEPTember will bring acceleration of $US decline
2)Buy and hold forever Core holdings of GOLD 5/10% before final and total confiscation, SOPITALISTS plan for your money.
3)Learn hard to invest ( not trade , that is harder and takes longer time) and let your money grow.
9 comments:
"I was listening to Bloomberg and a comment from the CEO of homebuilder Toll Brothers (TOL) was repeated over and over. "Our boy has righted the ship". But the above yield curve shows how little this cut is going to matter to anyone in a mortgage tied to the 10 year treasury. Mortgage rates are still far higher than teaser rates of 2-3 years ago, there is a distinct possibility of a revolt on the long end starting today, and/or mortgage rates may continue to disconnect from treasuries as they have done now for quite some time."
For interested readers, more here.
IF ANYONE WANTED ANY PROOF OF THESE BASTARDS' FAKE CAPITALISM, HERE IT IS:
"Our boy has righted the ship."
HOMEBUILDERS WERE UP ON AVG 15% or something..
what do they think? lowering rates will save their industry?
It's a bailout of the rich, pure and simple.
To think I actually thought Ben "Our Boy" Shalom Bernanke MIGHT have held the target rate, because he seemed different from that greasy slimeball Green$$$$pan.
Foolish me, I thought the guy looked like he had a conscience.
But central banking is the real mafia, we all know it.
Boris the greatest thing I learned from your site is the word SOPITALISM.
That is genius.
[excuse the repost, plz]
More technical thoughts on the dollar:
INTERMEDIATE TERM: Boris is right in saying the dollar will decline into March 2008.
LONG TERM: The dollar index (currently 79) will fall to 50 or 60 by 2011/2012. That's roughly a 5-9% decline in purchasing power per year.
I agree with DXB. I hope, I pray, everyone pray that the bond vigilantes will circle the wagons and drive the 10-year up at least 100 BP's immediately. That's what cracked in 1987 and that's what must happen today. I think Boris predicted the 10-year rising later this year. To what level?
Finally, bless you Boris. May your reward be in Heaven for enlightening the masses. And to the Sheol go all the SOPITALISTS.
Dear Boris,
I think we have to wait 48 hours or so at least, before the smoke clear and people begin to estimate collateral damages. Then we can take steps.
Funny feeling though, as if somebody turned time back to "good old 50´s". Wellcome to the CCCP! What the "aparatchnics" want, they will get.
Keep up your good work and hope for the best.
Istvan
Dear Boris,
some more sobering thoughts:
In contrast to about $2 billion in excess reserves that is the basis for the Federal Funds Rate, and about $3 billion that is currently being lent at the Discount Rate, the U.S. banking system presently carries about $3.4 trillion in real estate loans, and $6.3 trillion in total loans. Gross domestic product is currently about $13.8 trillion.
While the Fed has purchased a total of $240.7 billion in U.S. government securities since 2000, mostly to create currency, foreign investors have purchased $1,185.8 billion in Treasuries alone. Indeed, foreign purchases have absorbed all of the increase in U.S. Treasury debt over the past year (and then some). It makes a great deal of sense to pay attention to foreign capital flows and the U.S. current account. In contrast, except for the psychological effect on investors, it is a mistake to believe that Federal Reserve operations control the economy.
The Fed is, at best, a square-dance caller - the guy who by mutual consent gets to holler out when to swing your partner and when to do si or so. The Fed provides coordination, but it is a mistake to think it has power. When the barn is on fire and people no longer find it in their best interests to follow along, you can bet they'll dance to their own tune (as we're starting to see in the Euro-currency market, where LIBOR has significantly diverged from thee Fed Funds rate being "called out"). The Fed can provide a modest amount of liquidity to the banking system, but it can't provide solvency to the mortgage market. It's dangerous to believe that a reduction in the Fed Funds rate or the Discount Rate will materially change credit conditions.
We will see in a few days.
Best rgrds
Istvan
I said this back in the summer and now the smell is intensifying. Lock and load. Nothing like a brand new war to divert attention from the pig men on wall street and the utter mess they have created. The last two times there were severe housing downturns without recessions were....right at the beginning of the Korean conflict and at the beginning of the war in Vietnam (escalation). It will be tried again.
That would explain everything to the masses; rations, high gas prices, oh dear.
Perhaps the cratering of the white line. Who knows.
Dear DXB,
Yes, There was a glimmer of hope , that Bernanke was different, hell, he is the worst...
Good Trading
Dear Blaine,
Bond vigilantes are dead my friend.
Instead of fighting the FED they learned to huddle with him. DId you see DAN FUSS and BILL GROSS tow biggest BOND PIMPS, did you see how happy they were, they knew what Ben is going to do and bought "carry-trade". AUSTRALIAN and KIVI Dollar my friend.
Why bother.
Good Trading
Dear Istvan,
BACK TO USSR, indeed.
There is nothing to add.
Good Trading
Dear Readers, I agree that REAL ESATATE may continue suffering despite this unbelievable drop in FEDFUNDS rates,
But there is no way to deny, the wholesale bailout attempt of the wall street ( as Dear DXB indicated).
Good Trading
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