Readers, you ALMOST lost RANTING ANDY!
I nearly keeled over when I read this headline yesterday, and when I saw it, was all set to title this RANT “PPT, Even Wall Street Admits It.”
Bank of America Explains All You Need To Know About The Market: “Down In The Morning; Rally In The Afternoon”
“FINALLY,” I thought!
After a decade of lies, propaganda, and fraud, a Wall Street bank was FINALLY admitting the stock market is government-supported. And BANK OF AMERICA, no less, which desperately requires near-term government bailouts to survive!
Fortunately, I’m still here, and my heart rate back to normal. The reason, of course, is the CONTEXT of the article’s title, suggesting the POLAR OPPOSITE of a belief in market intervention. In fact, it is one of the most shallow, self-serving, factually inaccurate reports I have read, and believe me, the competition for this honor is quite strong.
In a nutshell, Bank of America claims the Dow rallies each afternoon because the economy is so strong.
The B of A report posts the following chart, showing how, EVERY SINGLE DAY, the Dow rallies in the afternoon in HAIL MARY fashion. The reason for this multiple standard deviation anomaly, observed for the past DECADE, is the “President’s Working Group on Capital Markets”, i.e. the PPT, which at this late stage of economic COLLAPSE is the ONLY remaining weapon in the government arsenal.
It does not matter how bad things are in the U.S., Europe, Japan, or Timbuktu, Dow stock futures MIRACULOUSLY climb from their overnight lows just before the NYSE opens, and take off nearly every afternoon. In fact, the ONLY similar “six-sigma” anomaly in financial markets is the tendency for PAPER precious metals to be attacked at the SAME TIMES each day, with essentially ALL daily gains CAPPED at 2%.
Here’s Bank of America’s inane commentary, with RANTING ANDY COMMENTS inserted:
For the fifth consecutive day US equities sold off in the morning, only to rally in the afternoon as European markets closed. That to us symbolizes the tug o’ war between negative developments in the European sovereign crisis and positive developments in the US economy.
Every day for the past decade, Wall Street shills speak of “positive developments in the U.S. economy,” my favorite being the so-called “green shoots of recovery” con job, launched by Ben Bernanke in March 2009 and followed by every Wall Street, Washington, and media outlet for months afterward. Since March 2009, national debt has risen from $11 trillion to $15 trillion and the U-6 unemployment rate from 15.0% to 16.2%, while median home prices are down 5% and the banking system insolvent and on the verge of collapse.
Today our European economists downgraded their outlook on European growth to now call for a small contraction in Euro Area GDP next year. However, this is not a major concern to us in terms of the outlook for US corporate credit, as the direct economic linkage between the two economies is fairly weak.
I am so relieved to hear that, as I was sure there might be a connection between the identical collapse of both European and American financial stocks and earnings. Oh, that’s right U.S. bank earnings are higher because they are allowed to count collapses in their bond prices as accounting “earnings.”
Instead our concern with Europe is the possibility that the sovereign crisis leads to further volatility in financial markets over the next couple of months, as – through more persistent hits to consumer and business confidence – that could be the external shock that pushes the US economy into recession.
Earth to Bank of America – your last SENTENCE says “the economic linkage between (the U.S. and Europe) is fairly weak!
However, it is also striking how the market has shown resilience to the recent surge in Italian interest rates now approaching 6.8% on the 10-year.
Resilient, in that every night “the market” falls, but miraculously rises at the close of the NYSE later in the day. Keep in mind the “Hail Mary” anomaly has been ongoing for a DECADE, amidst an accelerating collapse of the U.S. economy and banking system.
That suggests the market is somewhat comfortable with the ability of Europe to deal with Italy and work through its crisis – and perhaps reassured by the extra cushion on the US side from an economy that appears to have momentum into year-end.
Yes, today’s Dow plunge (following two PPT actions this morning), bringing it just 400 points from this year’s LOWS, tells me it is very COMFORTABLE. Thank god the U.S. has “economic momentum going into year-end.” I sure hope something as trivial as the European collapse won’t get in the way of holiday shopping. By the way, something tells me “Black Friday” will have a somewhat different meaning this year.
So there you have it, the Wall Street call to buy stocks, that never-ending siren summoning investors to their deaths. Wall Street is the EVIL that has destroyed America, by taking over its political system and creating REAL “weapons of mass destruction.” But don’t worry, your government, funded by the powerful military-industrial complex, is in the Middle East seeking FAKE “weapons of mass destruction” instead, destroying America’s PEOPLE, FINANCES, and REPUTATION.
I have said it many times before, and will many, many times in the future, that you are GUARANTEED to lose in the stock market 100% of the time. Bet with the fundamentals of a collapsing economy, and you’ll be shredded by the PPT. Bet with Wall Street on invisible “positive developments in the U.S. economy,” and you’ll be equally destroyed. Bet on the mystical “hyperinflationary equity boom” (assuming stocks will protect you against inflation), and your capital will disappear more quickly than an ice cube in August. Add in a bit of leverage, and not only will you have lost your mind, but your life’s savings.
Now that I’m done pontificating, let’s sift through today’s carnage, in which the Dow fought through three separate PPT “anti-attacks” to fall 389 points, led by the utter collapse, yet again, of the financial sector. This section of the RANT will get increasingly INTENSE, so be warned!
As I suspected, the ENTIRE 2,000 point Dow rally, which has barely brought it back to unchanged for the year, was due to a PPT-generated short squeeze, hardly the”positive developments in the U.S. economy” drivel espoused by Bank of America, soon to be largest bankruptcy, or nationalization, in American history.
Moreover, as ANYONE could have suspected, the catalyst for the market collapse was EUROPE, which is not just teetering on the brink, but already plunging into the abyss. There is not a CHANCE IN HELL Europe survives this economic conflagration intact, something I have been SCREAMING about all year, and will only scream LOUDER now.
This past month, watching Europe’s “leaders” squabble like chickens with their heads cut off has been tragic. Thought cohesion was lost weeks ago, and now cooperation and corroboration are gone too, in an EVERY MAN FOR HIMSELF cascade of FEAR. Headline after headline rolls by about the collapsing Greek and Italian governments, but NO ONE CARES, as it’s now 100%clear those two nations will collapse within WEEKS, if not sooner.
Shame on the National Inflation Association, whom I otherwise have a great deal of respect for (aside from their asinine stock-picking), for LAST NIGHT putting out a ridiculous article telling people to buy Italian sovereign bonds because they “feel” the worst is over for now!
The worst disservice one can do to investors, particularly those you seek to PROTECT, is telling them to bet against the primary trend because their “charts” or “gut” tell them it’s “time for a breather.” European sovereign debt should be SOLD until it reaches its intrinsic value of ZERO, just like PHYSICAL gold and silver should not be sold until revalued as OFFICIAL GLOBAL CURRENCIES, which will be quite a ways off, and at prices MANY, MANY, MANY multiples higher than current levels.
Not only did Italian treasury yields EXPLODE today from 6.6% to 7.3%, likely the worst single day since the Mussolini era…
…but, more importantly, bund SPREADS (Italian BTPs vs. German bunds) blew out more than any day in HISTORY.
Not to mention, French/German spreads rocketed higher as well…
…the Italian banking system is in shambles, with its TOP three banks ALL “penny stocks”; “Too Big To Fail,” yet simultaneously “Too Big To Bail.” There is virtually no chance these behemoths can be successfully nationalized, as TOO MUCH DEBT has been incurred for the ECB to handle.
Once again, I find myself showing the familiar table of bank exposure to the PIFIGS. Gee, I wonder why the French bank stocks are nearly at last month’s lows. Readers, Italy is GONE, and with it FRANCE will be GONE, and when France goes, MORGAN STANLEY will go, etc., etc., etc..
Europe is so CHAOTIC this week, there is no longer any PRETENSE of cooperation among the respective Prime Ministers and financial authorities. The political backlash AGAINST Euro Zone support is rapidly becoming too strong to fight, so the Germans are PUBLICLY stating their intention to potentially abandon it, yielding HYPERINFLATION to the rest.
The French are DESPERATE to be included in the new, stronger ‘Northern Euro Zone,’ and are thus PRAYING the Germans let them in.
Sorry, Pierre, it ain’t happening.
Decades of financial arrogance will be repaid with HYPERINFLATION when the Germans cut you loose.
Back to my movie fetish, I have the perfect scene to describe the situation Germany and France are entangled in. Anyone see the movie Vertical Limit, with Chris O’Donnell?
I’m warning you, this is a VERY intense scene, but no more so than what is going on behind closed doors in Germany’s Bundestag, where debate is going on AS YOU READ THIS about cutting France, and ALL the PIFIGS, loose NOW!
Per the wonderful article below about HUMAN NATURE, the fuse has already been lit. Bank runs have commenced in Greece, and will rapidly spread through the PIFIGS as they realize once Greece defaults, ALL will immediately follow, yielding the rampant HYPERINFLATION!
Hence, calls for “cataclysmic events” in the coming weeks…
…or, perhaps, “full crisis mode” THIS WEEK (or certainly the ALL-TIME SUNDAY NIGHT SPECIAL).
Readers, when pondering such contingencies, think about where you hold your assets.
Are you comfortable going to sleep knowing the Dow, CAC, or ASX, could fall 10% tomorrow?
Or that real estate, AROUND THE WORLD, will see ACCELERATING collapse?
Or that the U.S. government performed, coincidentally TODAY, its FIRST EVER “Nationwide Emergency Alert System Test?”
What do you think will happen when you wake up to the headline, “GERMANY BREAKS UP EURO ZONE?”
Or “ISRAEL BOMBS IRAN?”
Or “FEDERAL RESERVE ANNOUNCES EMERGENCY, $2 TRILLION QE3”?
And where will you want your assets to be?
If the answer to the last is ANYTHING but PHYSICAL GOLD and SILVER, you are LYING!
PROTECT YOURSELF, and do it NOW!