08.31.07
Posted in Old Posts at 12:16 am by Administrator
Special number 3 John Galt special
All John Galt shows to date on a four FIVE DVD-r audio set.
$40.00 plus 5 dollars shipping.
Call 260-358-9431 for info or go to Steve’s website at:
Steve Melching’s Archive on Demand
I can not emphasize enough the importance of supporting Steve by subscribing to the archives for this show and if you want to share my previous programs (25 in all) with your friends and family this is the way to go. I wish to thank everyone for their support of my show and especially the two Steve’s, Melching and Quayle for the opportunity to share my worldview with everyone.
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08.30.07
Posted in Old Posts at 9:25 am by Administrator
August 30, 2007
By John Galt
Ah the good old days. When the “Uncola” meant a soft drink which created catchy commercials and sometimes a generally good memory of the days when I was younger. But now, anything with the prefix “un” implies a financial disaster on the horizon. Unfortunately, this story will not be any better. Way, way, way back on August 15, 2007, a whopping fifteen days ago (that’s nine years to Bubblevision) there was a real deadline, not an “un-real” situation as the bubblevisionistas attempted to promote. That deadline was so fixed, so real, and so ugly, it meant that fund managers actually had to “gasp” manage and financial wizards has to put their wands and secretaries up long enough to discombobulate the sudden sense of urgency being transmitted to them from their Calcutta call centers. You see, the wealthiest of Americans took one look at the poker table, and the decision was simple: No thanks, cash me out.
This meant the hedgies could not join the super wealthy at the Hamptons right away as they had to create more movement than a Larry Craig dance lesson in the men’s room stall. Suddenly, all of those financial instruments they created because they were allowed to operate overseas and behave like a bank, had to have a “value” assigned to them because their foundation, the mega-investors, demanded their cash back, penalties to be assessed and all. This unregulated “unbank” system of financial wannabes is finally coming home to roost and I’m postponing my trip to the Alps just to help explain all this to you (Don’t worry, the “Alps” is short for an Alpine butcher shop in town, not the mountains where they yodel; my Gulfstream is in the shop next to Lance Briggs’ Lamborghini). Thus the wealthiest of Americans, through their greed, ignorance and desire to preserve capital have created quite possibly the most devastating bank run in American history:
The Unbank Run.
Hedge funds became such huge success stories that everyone with a computer, the money to create a phone forwarding service in the Caymans or a boiler room operation in Mumbai, started to create a new industry that promised outlandish yields because the old mantra of “real estate never goes down, only up” was branded into the head of every American who watched those horrific Coke commercials on American Idol the last four seasons. The sad part is they convinced everyone that by offering mortgage backed securities, that safety was still there while the outlandish yield promises persisted as long as the price of real estate went up and people made their payments on time. Unfortunately, the people who had the money and time to actually make wise decisions found the appeal and promises of nine, ten and twenty plus percent yields so attractive they figured that only a few million at risk made no difference. As those fine average folks stood in line at the Countrywide branches nationwide last week, the millionaires got that sudden realization when the phone calls circumnavigated the globe and hit them in Monte Carlo or St. Johns; that they were in a bank run also. And the banksters, or “unbanksters” who made bank like promises of safety, security, and the ability to make money appear from behind their ears caused them to go into a tizzy and invest willy nilly. Now the real bank runs have hit home. And the unbank runs the millionaires and other investors have started will hit home. The belief that these hedgies were houses of ivory and stone was pierced when two of Bear Stearns hedge funds went into bankruptcy and rumors about every investment banker in America started to swirl. Then the realization that average people can not afford their mortgages caused another shock that there was a huge shortcoming in the new bankruptcy bill, the lack of debtor’s prisons, which meant that they could actually lose their money in the 20 to 1 leveraged Mortgaged Backed Securities that their unbanker told them were AAA safe like Treasuries.
So along comes the deadline for withdrawals from the hedge funds on August 15th and the most pressing concerns became obvious to all. First the family would have to leave without them for their vacations early. Second brokerages and investment banksters were facing wholesale abandonment as the super wealthy threatened lawsuits and complete account closure if the money was not made whole from the Cayman Casino operations the wiz kids created. After selling all of their highly liquid assets, the brokerages and banksters realized that some unbanks would have to liquidate and that might just cause a problem that they all knew about, but the public would be clueless about (that’s where us Dick Tracy historians come into the picture). The hedge fund managers in a panic called their parent companies, well, walked next door to the adjacent offices, and advised the head banksters that they would have to mark these creative financial devices they developed to market to sell them and raise cash. Of course after watching the Bear Stearns fiasco, the banksters all said “harrumph”, protested loudly and proclaimed “who dares to redeem our funds when we know what’s best for the world” and the problems started. The difference between JQP (John Q. Public) and the mega-wealthy commissioning a bank run is that we can be herded into a corner, convinced we are morons, and given a lollypop and sent along our way. The ultra wealthy, not so much. If you tell them they can not have their money, they send an army of attorneys or call their pet Congresscritter to launch an investigation which of course would reveal what almost everyone knows but doesn’t talk about. So the super banksters had to find a way to make their unbanks liquid and that meant, you guessed it, a call to Uncle Ben to get those helicopters airborne. The great academic that he is, Bernanke, thought there is no reason to get excited until the banksters whispered into his ear those dreaded words of “system failure” and that got him excited. So while the unbanks faced a bank run of their own, it became the Fed’s responsibility to fleece the taxpayers of billions of dollars to get the banksters liquid enough to pay off the investors in their foreign unbanks to prevent a real bank run at their own windows in New York. Make sense now? It shouldn’t, but sadly it does.
The dirty dark secret is that if the Fed did not act as it did, throwing money into the fire, promoting use of the discount window, and bending the law to accommodate the banksters, we would have seen a stock liquidation sale to cover the problems of the unbanks in the Caymans. We probably will still see this as the discovery that JQP can no longer afford their mortgage payments, especially when they work 20 out of 24 hours per day in 7-11’s thanks to the outsourcing of their jobs by these same mega-wealthy folks, is going to trigger another wave of derivative and bond payment defaults in the banking system. And that’s just the housing markets, just wait as word filters up that the commercial real estate market has crashed and the speculators in that business are about to stick it to the banksters and unbanksters in oh such a cruel manner.
The bottom line is that while we enjoy what’s left of summer and the mega-wealthy vacation in their palaces around the world, there is an unbank run underway. These hybrid animals created to speculate with our fiat currency under the impression that they would get taxpayer protection (which they are) are unwinding in such a fashion that there can not be a happy ending. Once the mega wealthy get their monies out, the impact will finally hit Main Street, USA in such a manner that the panic will make the early 1930’s look like a church social. The concerns people have about their retirement programs and the stability of the banking system are completely justified, as the people that manage both are the same ones who created the unbanks in an effort to circumvent regulatory supervision and fleece the middle class just one more time. The implosion is going to be of historic proportions, as when the unbank run ends, the real bank runs begin. Countrywide’s televised fiasco of long lines and upset customers was just a test drive for the future.
The individuals who had the common sense to see this coming, and got their money out ahead of time, get to watch the entire thing unfold before their eyes in the luxury of their own homes. And the even smarter souls who purchased precious metals as insurance against just such incompetence will have the ability to sleep at night and realize that the historical reality that all fiat currencies fail will come true once again. On the flip side, those that did not will at least get a lollipop and an IOU to sleep on. For some strange reason, I just do not think the power company will accept the lollipop to keep the lights on, even as the foreclosure and eviction notices are served.
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Posted in Old Posts at 12:15 am by Administrator
The Electromechanical
Air Propulsion Device
Today is on: “Low”
August 29, 2007
By John Galt
And today’s shocking announcement: Kwazy Kwamer recognizes that there are actually “tops” and “bottoms” in the markets. I’m so thankful he has a clue now. Of course when you live in Hedgiefantasyland, like he and his friends do, sometimes the realization that liquidity is extinct or banksters lie about their assets may actually be a factor when investing in the future. Even his fellow bubblehead, Kudlow, actually made the most dishonest assessment in the history of economics that a decline in the dollar index and Fed Funds Rates could result in a dollar rally! Ah, to be smoking what they are smoking as they really have created a new meaning for the phrase “Clueless” or worse.
With this little ditty by myself, today I’m just going to focus on the bizarre news which has appeared today and to point out the charts which, well, are freaking huge news. I’ll leave the chart interpretation to my readers, but for what it is worth, the fertilizer is still “inbound” and should hit the EAPD in the next 60 days. Remember: Safety first.
Do not stand in fans on “High” when there is an odor in the air….on to the news.
After hours, suddenly, 3,873,700 shares of H&R Block were mysteriously dropped at $19.50 around the 1600-1630 EDT time frame. Why? Hmmm. Could it be their “Option One” mortgage unit sale is about to tank? Stay tuned as this story could grow legs and per Yahoo Finance, the after hours number is down to $19.00 per share. Ouch.
EAPD is on: “Medium”
And another one bites the dust….Basis Hedge Fund Goes Bankrupt
EAPD is on : “Low”
Why you might ask? Because if I turned the fan up for every hedge fund in trouble a Cat 2 hurricane would appear on the Sarasota Country radar almost instantly….
This one is a bit more forceful and causes a waft of a scent and more air being moved about the room….
T-bill yields drop on hedge fund woes
For those that ignore the bond market gyrations, woe be unto thee. That is the new arena where panic can and shall occur in a much greater volume and at a much greater cost…..
EAPD is on: “HIGH”
S&P Says Rout May Hurt Wall Street More Than in 1998 –Bloomberg
Whoops?!?!? That one could leave a mark. I guess it’s time to find a nice sail boat dirt cheap…..on a moral scale, it’s great. On a reality scale, well, they’ll find a new angle and blackmail the American public into a way to preserve their bonus schedules.
EAPD is on: “Low”
Rats. I knew I should have pursued Law School instead of Arabism and Economics.
EAPD is on: “Low”
And of course, just to keep my audience wondering, where this will all lead:
That is a must read. I shall be expanding, this weekend, on just “what’s next” and what the multiplier effect is as I am living it.
EAPD is on: “Medium”
Enjoy the evening of peace and quiet folks. I’m sure that once the yachts dock, the beach bums depart, and the luxury resorts breath a sigh of relief, our markets will return to a more normal reaction. Once again, ignore the Dow, it is not the market. But oil, gold and silver are speaking volumes.
Don’t stand in front of the fan, because you never know when a home builder, mortgage lender or hedge fund will fling some fertilizer into it!
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08.29.07
Posted in Old Posts at 8:51 am by Administrator
Sigh. So yesterday I overslept and didn’t get a chance to post as much. But gang, there is a ton going on. Don’t get trapped looking at the Dow action and calling that “the economy” or “the market”. There is a certain air of panic in the credit markets again and if you see the 10 year bond kissing 4.50% yield as it is of this writing, then you can count on a major panic happening behind the scenes. We’ve watched the 1 month, 3 month, and 2 year Treasuries go nuts in the last week and rumors of major banks having problems persist. There is another shoe to drop and I think the powers that be are trying to stall the event until all the big money gets back from St. Johns on Tuesday morning when the markets open and the super wealthy can “save the day” or take their toys and go home. One thing to watch today is the news on the home builders. While Fitch’s downgrade, after the market close, is a non-event in my book, the implication is there and the information that one of the big boys has not been paying it’s bills down here. The contractors I deal with are screaming bloody murder so let’s wait and see if that information validates next month because if they don’t pay their vendors, then odds are they are not going to make the payments on their corporate bonds either. Watch the yen again today and the US Dollar index as there is a reality disconnect with bond enforced lower rates and the bounce in the USD. That disconnect will end and 78 is the first floor on the express elevator to hell.
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Posted in Old Posts at 8:43 am by Administrator
The Electromechanical
Air Propulsion Device
Today is on: “Low”
August 28, 2007
By John Galt
So today was just another 280 point decline in the Dow. And a lot of people are getting really, really antsy. To promote the seriousness of the problems we are about to witness, I have elected to start the EAPD monitor, a free service which is only for entertainment while as I watch and learn more, we can all commiserate together and either smile because we had enough brains to avoid the tsunami or panic as we stand in front of the fan like one of the ignorant sheep. Today, the EAPD setting is on “Low” and the series of comments to follow will explain why.
For those who elected to miss the fun of college level physics much less high school physics, read the title of this again and think. Electromechanical-Air-Propulsion-Device; hmmm, sounds like one of them thar fancy things you use in dam manufacturing. Actually it’s very simple and you probably have one or two of them; it’s a
FAN
Do what? Well, when the setting hits “on high and smelly” project your imagination out to just what that means. Right now, with the majority of the really big money on vacation, these market movements mean, as Cramer would scream “NOTHING, NOTHING” or words to that effect. In fact tonight, he was actually entertaining when he said about the homebuilders:
“The good news is that the stocks all have to stop at zero”
Thank you Jim. You’ve given me another quote to play with. The realities are sinking in with today’s market action. Not the Dow, not the S&P, nor even the Russell 2000. The disaster unwinding in the credit markets is unreal. And the tape tells the tale. The Countrywide Preferred that Bank of America rented on behest of the Fed cracked 18 tonight thus allowing them to exercise their options or do we have to wait for Bernanke to put that wig on from the Wendy’s commercial to fulfill the “extraordinary circumstances” clause of the purchase of which the BoA lawyers will pulverize and take a pee on Armadillo’s Rolls long before he can say “boo” and scare them away. What does this mean? A tidy several hundred million dollar profit for BoA probably and options to buy more of CFC up to 5% as rumor has it. Does this help the illegal meet his mortgage payment in East L.A.? Nah. But it makes for a lot of fun to watch the big money freak out while the mental midgets in D.C. are on vacation or visiting men’s rooms nationwide.
EAPD Setting: “Low, but rotating side to side”
Then we see that the Yen was discovered again today to be a huge winner as everyone realizes again that Japan won’t go bankrupt even if we do. The move was unprecedented, but alas, that only counts if anyone is in town to watch. This move might continue tonight or may stall, but one thing has been declared by the world; the Yen and Euro are going to reign supreme in the next decade. Yuanna bet who will try to crash that party by destroying the dollar if we jilt them economically soon with more garbage paper?
EAPD Setting: “Medium”
Next in today’s news circus is the most unbelievable bit of news to hit the markets. I was shocked. Stunned. Dumbfounded. The relationship between increases in foreclosures, late housing and auto payments and “gasp” defaults on credit cards has been discovered by the Mainstream Media! Geewhilkers, can Captain Obvious save us? I doubt it. But if you think the banksters will take this lying down, well, I’ll one up the old bankruptcy law by one when the idiots return in session next week. Do you think the banksters will demand a “firing squad” addendum to their new bankruptcy law to get back at all those people who dared to buy food and medical treatment on their credit cards?
EAPD Setting: “Medium”
Fitch electing to downgrade all the ratings on the home builders after the markets close. Well, gee, we couldn’t see that one coming now could we? Way to catch up gang, 7 months late, but way to catch up.
EAPD Setting: “Low”
Lastly, the ongoing nonsense about how the world is ending every day there is a decline on Bubblevision or the opposite, the markets have recovered fully and will rally to 15K. I know these folks are paid to pimp stocks, but sheesh, get a life losers and how about some honest reporting. No wonder Ron Insana hides as much as possible, he doesn’t want his name affiliated with a lot of this shameful activity.
EAPD Setting: “Low”
So there you have it. When it switches back on to “HIGH” don’t worry, I’ll be all over it folks. Don’t stand in front of this fan when it gets switched to high because the odor will be horrific.
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08.27.07
Posted in Old Posts at 9:37 am by Administrator
I’ll be brief but this is the time frame we have all been wondering about, the time when the pinstripe bandits finally take their vacation. Look for very thin but volatile markets all week. I’m watching the bankster stocks closely not so much for what their stocks do, but what their bonds do. There are more rumors flying around than interns at a Bubba Clinton birthday party so whatever you do folks, don’t play the rumor, play safe. The other area of interest to me, is unfortunately back to the geopolitical front. There is an uneasy quiet in the Middle East and I fear it’s the prelude to something larger on the Isreali-Syria-Lebanon front. There are reports that Damascus has ordered Hamas to prepare for “massive” suicide attacks inside and against Israel so watch the news today and this week. Lastly, the weather may be quiet now, but for some reason we always seem to get a hurricane threat around Labor Day. So watch the tropics gang. I hate the quiet before the storm, but it appears we have too much quiet and way too many rats stirring around causing problems.
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08.26.07
Posted in Old Posts at 5:19 pm by Administrator
A warning to all of the next level of censorship….
The group in this story:
Florida Televangelist Loses Show After Muslims Complain
is a gentleman I met years ago when he was “saved” and began his career to save others in the name of God. He is a very forceful and strong speaker with opinions that of course would insult the Islamic religion because any criticism, no matter how valid, is viewed as an “attack” by the CAIRerrorists. I warn you all now. Watch what you say because the House of Saud gives tens of millions to that group and encourages the creation of Wahhabi sect schools throughout the United States.
Just a note of caution to all my readers and fans, that I will speak to a point, but not where it will get Steve Quayle or his show in trouble with this group.
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08.25.07
Posted in Misc Rantings at 12:40 am by Administrator
I apologize in advance. Options expiration is 9-21 as someone reminded me. It is MY opinion that whatever event is going to take place will do so by 9-15-07.
Next time I’ll try to get 8 hours of sleep and do a better job. Next week, the focus will be on the ominous parallels we could be witnessing as 1931 may morph into 2008…..look for the long worked on, long read of an op-ed this weekend as I’ve been buried by my work and was able to buy another extension to my contract for one more month.
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08.23.07
Posted in Old Posts at 10:41 pm by Administrator
1930
To listen to the Q-Files you can do so as follows:
1. 7.465 Mhz from 7-8 pm (1900-2000) EDT
2. Streaming via www.wwcr.com (stream 1)
3. Streaming via www.stevequayle.com
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Posted in Old Posts at 8:47 pm by Administrator
CONTAINMENT ALERT!!!
CONTAINMENT ALERT!!!
While we might all get a chuckle out of Captain Kirk screaming because his shields are down and the creeping Klingon crud known as the greatest economic collapse since 1932, Ben is the engineer so we are toast.
Scotty, we miss you.
Heck, what is about to happen will make me miss 1979. Ah well, it was fun while it lasted. 30 days until the containment breaks down completely.
Pray for the Republic.
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