EAPD MONITOR 8/28/07

August 29, 2007 on 8:43 am | In Old Posts |

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.