Financial topics

[aedens]

Now I read that this week the US government will backstop the derivatives clearinghouses.[...]

I see no possibility at all that the US is going to recover - ever.

This probably makes my long term SLV options a bit safer.

I think the 50 states will have some hard times but then recover after the US Federal government is gone. With all those taxes and regulations gone, and some new more honest money, and serious competition between the states for investment and business, they will probably have high growth rates for some time.

In December, the leaders of Japan and China agreed to mutually promote direct trading between the two currencies based on market principles.
http://generationaldynamics.com/forum/v ... door#p4105
http://generationaldynamics.com/forum/v ... 4059#p4059
The People's Bank of China said the move would help lower currency conversion costs and help facilitate bilateral trade and investment.
Japanese Finance Minister Jun Azumi told reporters that trading under a new regime will start in Tokyo and Shanghai on 1 June, according to Reuters News agency.
They can all push paper. We discussed in terms that stacking paper does not avert anything.
We also find out here how Wall Street professionals manipulated public opinion by buying off and/or intimidating experts in their respective fields. In one email made public in this document, a lobbyist for SIFMA, the Securities Industry and Financial Markets Association, tells a Goldman executive how to engage an expert who otherwise would go work for “our more powerful enemies,” i.e. would work with Overstock on the company’s lawsuit.
"He should be someone we can work with, especially if he sees that cooperation results in resources, both data and funding," the lobbyist writes, "while resistance results in isolation."
There are even more troubling passages, some of which should raise a few eyebrows, in light of former Goldman executive Greg Smith's recent public resignation, in which he complained that the firm routinely screwed its own clients and denigrated them (by calling them "Muppets," among other things).
Here, the plaintiff’s motion refers to an "exhibit 96,” which refers to “an email from [Goldman executive] John Masterson that sends nonpublic data concerning customer short positions in Overstock and four other hard-to-borrow stocks to Maverick Capital, a large hedge fund that sells stocks short.”

In other words, 107% of all Overstock shares available for trade were short

Things you can touch is a better play until the wipeout upcoming. No one has your back in .gov - RUN you fools

"and where oh where did our little retail investors go?"
lol...not to the long side slaughter house.
Hannibal: And what did you see, Clarice? What did you see?
Clarice: Lambs... And they were screaming.
Hannibal: They were slaughtering the spring lambs? And they were screaming. And you ran away?
Clarice: No. First I tried to free them. I opened the gate to their pen, but they wouldn't run. They just stood there, confused. They wouldn't run.
Hannibal: But you could, and you did, didn't you?
Clarice: Yes. I took one lamb, and I ran away as fast as I could.
Hannibal: Where were you going, Clarice?
Clarice: I don't know. I didn't have any food, any water, and it was very cold, very cold. I thought if I could save just one, but... He was so heavy. He was so heavy. I didn't get more than a few miles when the sheriff's car picked me up. The rancher was so angry, he sent me to live at the Lutheran orphanage in Bozeman. I never saw the ranch again.
Hannibal: What became of your lamb, Clarice?
Clarice: They killed him.
http://falkenblog.blogspot.com/2012/05/ ... dence.html
Retail are feed lot animals to be farmed and eaten. Wall Street has to cannibalize the weakest firms.
http://www.youtube.com/watch?v=R4emJASI ... re=related 8:27
http://www.pembina.com/pembina/webcms.n ... enDocument

[aedens]

http://www.thetrader.se/2012/05/27/the- ... e-at-risk/

Mises’ great insight was that the foundation of material civilization is the entrepreneurs’ patience in refraining from consuming a portion of their produced goods and returning it to the drawn-out production process. Only savings—that is, foregone consumption—creates capital goods and wealth.

http://www.independent.org/publications ... .asp?a=430

To narrow the concept of business confidence, I adopt the interpretation that business people may be more or less “uncertain about the regime,” by
which I mean, distressed that investors’ private property rights in their capital and the income it yields will be attenuated further by government action.

http://pembina.mediaroom.com/index.php? ... tem=126296 chk open

[Higgenbotham]

Mises’ great insight was that the foundation of material civilization is the entrepreneurs’ patience in refraining from consuming a portion of their produced goods and returning it to the drawn-out production process. Only savings—that is, foregone consumption—creates capital goods and wealth.

Agree, deflation is therefore necessary in the cycle.

On another note, stocks continued to evolve toward a crash today. But even if stocks crash starting this week or next and there is deflation from here, I doubt there are enough savings left to create the next virtuous cycle, or that the entrpreneurs will have the confidence to deploy them, but will instead hoard hard goods for survival purposes as Bernanke has trained them to do. For example, I talked some years back about starting a biotech company when the deflation came but now have no confidence to do so. I do have confidence in water and wheat as stated.

[John]

If the Dow went up 125 points, then how did stocks evolve to a crash?

[Higgenbotham]

I can see the possibility of a huge crash starting next week but would only be able to see it maybe a few minutes in advance as it begins to unfold. I think the beginning of next week is more likely to start out positive if a crash pattern is to develop.

This was from this weekend and it has to do with what stocks commonly do before they crash. As the herd moves toward panic there are rhythms that occur that while not identical have certain things in common that are only seen before crashes. By going up today, the market is behaving similarly to how it did before it dropped into the hole from 1930 to 1932, and as it has before many other crashes. By going down today, it would not have been evolving toward a crash so far as I can tell.

Also, I think it's pretty darn likely that if the market is continuing to move toward a crash, the closing high today will mark the peak in the market - if it closes over that, the market is probably doing something different.

[Trevor]

Course, this time around, it's taking a lot longer than it did during the Great Depression. It's been over 4 years and stocks have had much stronger rallies than I really expected them to have.

[Higgenbotham]

Stocks index futures lost most of yesterday's gains overnight. If there is going to be a crash it probably won't really get moving until next week and the week after. I'm not predicting it because the system has been made so chaotic and out of control that anything can happen.

[aedens]

http://www.firejack.net/

[John]

Paris Hilton's Sad Dating Life And The Collapse Of The Global Economy

Joe Weisenthal | May 30, 2012, 1:46 PM



http://www.businessinsider.com/paris-hi ... omy-2012-5

[Marc]

John, I hope you realize that you may have just unleashed the "Regeneracy" by posting that pic.... —Best regards/Cheers, Marc