October 2011

10/31 AEP: Italy, Europe, and Red Brigade terror

By John Galt October 31, 2011 – 18:30 ET Tonight’s entry from the UK Telegraph is a must read. Ambrose Evans-Pritchard reminds us of the 1970’s and 1980’s era when the world thought Europe would erupt into a red revolution and violence became a part of everyday life. Click on the link to the story below to read it in full: Italy, Europe, and Red Brigade terror


10/31 Voice of Galt Halloween Spooktacular: At least the Zombie is on Live tonight

By John Galt October 31, 2011 Boo. Yes I’m alive, but after getting sick as a dog this weekend thanks to the flu making the rounds down in Florida, but I will be live tonight at 7 p.m. ET. Ye old trickers and treaters may want to tune in  as the markets, the news, and ugh, Algorians are invading everywhere creating a zombie nightmare. To call into the program dial: (877)213-6404 or (812)307-4363. Just click on the banner below to find the various audio players to listen or to participate in…


10/31 U.S. Market Preview: It’s a MFer Story

By John Galt October 31, 2011 – 07:45 ET The Way we Were Memories Light the corners of my mind Misty watercolor memories Of the way we were Scattered pictures Of the smiles we left behind Smiles we gave to one another For the way we were Can it be that it was all so simple then Or has time rewritten every line If we had the chance to do it all again Tell me – Would we? Could we? Memories May be beautiful and yet What’s too painful to remember…



10/28 U.S. Market Preview: Bazooka or Bottle Rocket?

By John Galt October 28, 2011 – 05:20 ET Way, way, way, way, way back in history, our esteemed consumer of ink and paper, Federal Reserve Chairman Ben Bernanke and the central bank allegedly leaked to the member banks of that corrupt group that a pending course of action was about to occur where the discount window would be opened and Cramer’s infamous rant would result in a stick save of epic proportions as the banksters would be able to continue the Great Ponzi for a little while longer. I for…


10/27 U.S. Market Preview: We’re all Zimbabwe Now

By John Galt October 27, 2011 – 05:25 ET The big event which in reality is a non-event that the European Union announced last night was that they decided to break the backs of taxpayers in the U.S. using the IMF and in Europe by enslaving those who were not responsible for other nation’s debts into paying the price for an incompetent political union.As this crisis moves forward with Italy and Ireland needing more assistance the realization that Greece was a small problem will hit the world’s markets and life will…


10/27 0500 Hurricane Rina Update: Storm Cancel

By John Galt October 27, 2011 05:30 And that’s why these suckers are so hard to forecast. Cancun gets wet. The U.S. gets zilch. Storm cancel. This will be the final update on this thread barring a radical shift in the storm. October 26, 2011 17:45 Needless to say, tons of rain, a breeze (30-60 mph) and alcohol will not stop Fantasy Fest. In fact, it might enhance it. Models are now updated below, it has fizzled somewhat so let’s pray no one gets hurt. October 26, 2011 07:50 So far,…


IF the EU deal is so good, why is Gold melting down?

By John Galt October 26, 2011 – 23:00 ET Me thinks the smart money can smell alchemy and bullcrap….. (From ForexPros.com) Based on Fed and Japanese interventions in the past, if this were a true debt monetization, the smart money would be moving gold past $1750 right now and towards $1800 by next week. The details are one thing, the reaction of the monied players is another. If gold closes below $1700 tomorrow, this is another huge deflationary signal as the debts outstanding will be liquidated and credit contraction, as I…


10/26 22:27 ET: Europe abandons Capitalism

By John Galt October 26, 2011 – 22:27 From AFP tonight, 10/27 0408 CET: Eurozone seals rescue deal as banks agree loss While many might say the bank’s agreements are “voluntary” if you ask a pensioner in Greece, they will tell you otherwise. By imposing the Obamanomic General Motors solution of top down, bottom out, where those evil wealthy retirees eat the crap sandwich of the governments, it all but guarantees a European recession far worse than the U.S. 2007-2009 debacle which shall renew with fury soon. From the story: The…


10/26 AEP: Europe’s grand gamble risks failure without ECB

By John Galt October 26, 2011 – 22:00 ET Ambrose Evans-Pritchard nails it again tonight as the hopium high wears off. (Click on the UK Telegraph link below to read) Europe’s grand gamble risks failure without ECB All you need to know is in this portion of the article: First loss is a form of structured credit all too like US sub-prime debt. It concentrates risk. Those holding these tranches of debt take the hit, in this case creditor states. The question is whether this will damage the standing of core…


Warren Buffett to Buy Greece

By John Galt October 26, 2011 – 10:50 ET I mean, why not? So far Brazil, China, and the IMF have offered per various media reports to bail out the European Union. The only headline we haven’t seen is old Warren doing his patriotic duty to the globalist agenda and buying the entire nation to bail out the central banksters of Europe and the world. Who can forget this brown nosing gem from Business Insider and the Fiscal Times: Warren Buffett’s Patriotic Bailouts He did his job in 2008 and bailed…


September New Home Sales: Ends the Worst New Home Selling Season in History

By John Galt October 26, 2011 – 10:20 ET The September new home sales report is out from the Commerce Department (click here for PDF version of the release) and as usual, the mainstream and Bubblemedia focuses on the seasonally adjusted annualized figures instead of the actual month over month change. The raw data, aka non-seasonally adjusted numbers show a July figure revised down to 27K from 28K, August revised down to 25K from 26K, and September’s initial figure of 25K. In other words unchanged and the most dismal summer new…


Do not Ignore the Most Dangerous Story of the Week

By John Galt October 26, 2011 – 07:30 ET The mainstream media continues to attempt to paint the Occupy Wall Street crowd as a bunch of iProtesters, carrying their Apple products around the parks and protesting the unfair aspects of Wall Street and our financial system with the inference that the monied crowd imposes their will on them and that the mistakes they made are society’s fault. The problem with their argument of course is that middle class America wants to sympathize with part of their cause but empathy fades when…


10/26 U.S. Market Preview: It’s all about Eur-ugh-ope

By John Galt October 26, 2011 – 06:30 ET The fate of the Western economies is up to France and Italy. Ugh. Meanwhile in fantasy and rigged market land, U.S. equities tanked on light volume again, but that has been the trend except during massive down moves in the market with the exception of one oversold rally. The 1 year NYSE volume versus price chart below highlights this fact: From the chart: 1. First break in August resulting in days of massive declines. 2. Oversold bounce back rally, lighter volume than…




10/24 Islamist Autumn Update: Tunisian Secular Party concedes Election

By John Galt October 24, 2011 – 13:55 ET Per the Reuters news flash I just received: Islamists claim win in Tunisia’s Arab Spring vote 10/24/11 1:42pm EDT By Tarek Amara and Andrew Hammond TUNIS (Reuters) – Moderate Islamists on Monday claimed victory in Tunisia’s first democratic election, sending a message to other states in the region that long-sidelined Islamists are challenging for power after the “Arab Spring” Unfortunately with protests expanding in Morocco and terrorist attacks increasing in Algeria from Al Qaeda, this will not end well for the future…


10/24 FDIC Bank Failure Update

By John Galt October 24, 2011 – 13:20 ET This weekend was another one where any state having Republican strength saw more banks closed than Democrat controlled states but hey, that’s just a “coincidence” right? In the interim, those who have business accounts are banks which are seized are finding their day to day banking affairs a pain in the rear and unfortunately it will not get any better with this regime in charge. Thanks again to CalOkie for following the trends and keeping a statistical history of this collapse in…


And Now the NWO is Complete: Vatican Calls for “Global Authority on the Economy”

By John Galt October 24, 2011 – 11:40 ET Old Matt Drudge went right to the heart of it with this emblazoned on his main page: The story itself from Reuters though, is even more terrifying: Vatican calls for global authority on economy, raps “idolatry of the market” Gee, using the phrase of idolatry of the market sounds almost, well, Sharia like. The article from Reuters has this disturbing quote: It called for the establishment of “a supranational authority” with worldwide scope and “universal jurisdiction” to guide economic policies and decisions….


If the French Banks do not need external help for recapitalization, then why the need for a Bazooka?

By John Galt October 24, 2011 – 11:10 ET The French newspaper La Tribune, reports today (see: Recapitalisation : les banques françaises n’auront pas besoin de l’aide de l’État ) that there is no need for external or state help for recapitalization of their banks per Christian Noyer, Governor of the Banque de France. He stipulated that the need was around €10 billion and would not require assistance from the national government and could be handled without help from the ECB or IMF. Thus begs the question: Why the calls for a…


10/24 U.S. Market Preview: The Eurocircus and U.S. Merry Go Round Continues

By John Galt October 24, 2011 – 08:00 ET Despite the proclamations of some who smoke the hopium that America is on the road to recovery and the 20% + real unemployment rate does not matter, the divergence between our political elites and Main Street is as glaring as I have ever seen it in my life time. The Eurocircus is ongoing now with rumors about rumors being leaked from meetings on an almost hourly basis which results in temporary boosts to equities and denials from the U.S. financial media that…


The Greek Bankers are Furious over the EU Agreement being Proposed

By John Galt October 24, 2011 – 07:30 ET While Germany and France debate how to pillage the nation of Greece while preserving their own financial structures, the Greek bankers are somewhat ticked  off over the desire to force the imposition of a managed economic system on the Greek people without their consent. The idea that the Troika would become a permanent oversight group for the Greek economy was floated during the meetings in Brussels, but now the European Union is looking to force higher haircuts for the Greek banking system….


Greek PM predicts End of Europe if they don’t go Stupid

By John Galt October 23, 2011 – 17:55 ET From SkyNews this afternoon: Greek PM: ‘Existence Of Europe Under Threat’ Thankfully they do not have a nuke plant on a major earthquake fault (do they?). The article by Robert Nisbet says it all in this quote: The Prime Minister of Greece has said the very “existence of Europe” is at risk from the debt crisis. After some intense reflection, the collapse of Rome did not destroy Europe, World Wars I & II, did not destroy Europe, and porn stars being elected…


Do Dodd and Frank work for the European Central Bank now?

By John Galt October 23, 2011 – 16:50 ET As the evening progresses, the jokes, er similarities between the U.S. in 2008 and the Eurocircus keep on coming. The latest story from Reuters reeks of the morons in Congress debating the “TARP” fiasco and the only thing missing is one of the Euros to come out like W did and say words to the effect that the European economy “was fundamentally sound and still growing” or other idiocy. The latest hilarity: EU bank plan may include aid already pledged to bailout…


10/24 Ambrose Evans-Pritchard Smokes the Hopium

By John Galt October 23, 2011 – 15:50 ET Sigh. Just when you wonder when anyone else in the world of reality couldn’t take a mushroom or two (allegedly) and fall down the rabbit hole, like this guy: Along comes tonight’s entry for tomorrow’s print edition of the UK Telegraph by Ambrose Evans-Pritchard and what is either a disappointing sell out of his principles, or the results of smoking America’s winnings from the war in Afghanistan: World power swings back to America While much of what this man writes appears to…


If it’s Sunday it must be time for a China Rumor

By John Galt October 23, 2011 – 14:50 ET Obviously the Eurocircus is getting desperate. In the old days of 2008, it used to be the simple story where China, Warren Buffet, or Goldman Sachs would buy out XYZ and rescue the civilized world causing the ES futures to spike 20 points on the open. Well, it is 2011 now and the days of the power and the influence of GS and the Orifice of Omaha has faded, so now its up to the most capitalist nation on earth, Communist China….


U.S. Treasury Identifies A Debt Solution: Issue more and different kinds of Debt

By John Galt October 23, 2011 – 14:15 ET The Financial Times just broke a story which apparently solves the debt crisis for the United States with the U.S. Treasury floating the idea, er, tossing the poop against the wall, to see if the concept of issuing “floating rate” bonds. The problem with this idea is summed up in this one extract from the story: In contrast to normal fixed-rate Treasuries, which pay the same coupon throughout their lifespan, the payment to investors from floating-rate notes would go up or down…


Here Comes the Greek Derivatives Mess: Banks offer to take 40% haircuts, Politicians want 50%+

By John Galt October 23, 2011 – 13:00 ET The news from the Eurocircus continues, with this beaut from Reuters just minutes ago: Banks raise Greek haircut offer to 40 percent in talks: source Uh, the Greeks themselves said they needed 60% at a minimum as did an IMF study so one more time, how does leaving the bill on the German taxpayer’s tab help this situation again? From the article: Politicians, including German finance minister Wolfgang Schaeuble have asked private creditors to Greece to accept steeper writedowns on their holdings…


10/23 Islamist Autumn Update: Tunisian Elections Experience Huge Turnout

By John Galt October 23, 2011 – 12:30 ET The dangerous turn of events in the MENA region are being paid their obligatory lip service from American politicians such as Senator Lindsey Graham on FNC”s Sunday news program, but the reality is the failure of U.S. foreign policy since President George H.W. Bush to address the balance between freedom, economics, and geopolitics in the area. The so-called “Arab Spring” has yielded promises of elections and the majority of citizens fully expect that their wishes are expressed at the ballot box and…


10/21 U.S. Market Preview: T.G.I.F.

By John Galt October 21, 2011 – 05:30 ET What a week. The markets started with the promise of a Eurozone solution by Sunday and finish the week with a promise to discuses a promise to promise an announcement on Wednesday’s meeting by Sunday. The funny thing is the PPT and Bubblemedia have some morons actually believing that the Europeans have learned how to create solvency. The proclamations the world has heard thus far are as productive and logical as the guy in Ireland setting his house on fire to transform…


10/20 Weekly Unemployment Claims Report: Bleh

By John Galt October 20, 2011 – 12:45 ET Party like its 1931 gang as this chart is not improving by any stretch of the imagination, no matter how much imagination the bureaucrats infer in the seasonal adjustments: (Click to enlarge/reduce chart) To make matters worse, super spikes and falls might be smoothed out by the seasonal adjustments but they make for ugly, ugly back to back reports as you can see below: The bottom line? The unemployment lines are now poised to get longer as the financial sector implodes again,…


10/20 U.S. Market Preview: The Fan is in place for the incoming

By John Galt October 20, 2011 – 05:30 ET All you need to know about what is coming can be found in the charts below. Things are breaking down in Asia and Europe thus it is a matter of days perhaps when we take the lead back and head south for the winter. Gold, using the GLD ETF, is indicating a massive break about to happen below the $1550 mark, probably below $1500 (150 on the ETF approximately) in the days ahead: (click on graphs to enlarge/reduce size) The 50 day…


10/20 Asian Markets Overnight: A Bad Chop Suey for all

By John Galt October 19, 2011 – 22:25 ET Wow. Not a good news to be long Hong Kong or in the Shanghai markets tonight. Is this the start of the technical breakdown of all the equity markets in Asia or just another tease until Europe drops the big one on the world? Stay tuned. First from Yahoo Finance, here are the charts which update themselves from Hong Kong: And from Shanghai: Stay tuned as the next two weeks could get rather interesting.


10/19 Housing Data: Not as good as the Headline Propaganda, as usual

By John Galt October 19, 2011 – 21:45 ET US Economy: Home Starts Jump, Consumer Prices Stabilize BusinessWeek  Housing starts jump 15 percent in September Kansas City Star Increase in housing starts could portend improving market The Hill (blog) Just sigh. There is no bottom until there is no hope. When will these people learn? Of curse when there is an agenda to yell into an empty stadium for everyone to rise up and cheer, the current crop of “journalists” and “economists” acting as agents of propaganda do the best they…



Greece is now Voting on Austerity Measures (Again) Live coverage via SBC-TV Athens (UPDATED 1430 ET)

By John Galt October 19, 2011 – 13:45 ET UPDATED 10/19 1430:  The “test vote” has passed, full vote tomorrow. Look for a fun day on the streets of Athens. FWIW, I wouldn’t park my rental car anywhere near, uh, anything. Well, at least their version of CNBC and the Bubblemedia has better foxy coverage. Feel free to translate and share for us as the news filters in…. Watch live streaming video from sbcgr at livestream.com


Removing the Nonsense about the Economy using CSX’s own Q3 Financial Report

By John Galt October 19, 2011 – 13:30 ET The story from CNBS today highlights the hypocrisy of today’s financial media and the fact that they would rather act as arms of propaganda for the regime, be it Democrat or Republican, in power, so as to convince your grandma to buy 20 shares of stock in any company so they can fleece her just one more time before she dies. CSX ‘Barometer’ Shows Improving US Economy: CEO The story at CNBC from Margo D. Beiler and highlighted on their insipid network…


Monthly CPI Necessities Update: Glad I don’t Eat, Drive, Smoke, Live in a House, Get sick, go to college, or wear deodorant

By John Galt October 19, 2011 – 12:30 ET Thankfully inflation is under control. Good job Ben! Of course if you do anything but wash your car daily, get some sort of legal service (Sorry Congress, she doesn’t count; Barney he doesn’t either per the BLS) buy a new home every month, buy a new computer every month, OR use “video services” then this month’s CPI report might hurt. But politicians, Federal Reserve officers, people investing in anything but precious metals, and morons telling you that a negative 0.4% yield after…


10/19 U.S. Market Preview: Turmoil, Tumult, and Sour AAPLs

By John Galt October 19, 2011 – 08:10 ET Futures are all over the place this morning as yesterday’s rumor rally of the week projected that Europe would be saved for the 1,372nd time in 720 days which means that the ECB and Bubblemedia will have to redouble their efforts and create a minimum of four to five rumors today to keep this market in sucker the sheeple mode. The insanity of what the idiots are trying in Europe is being revealed as Germany had a failed bond auction (see Reuters…


More Dow Pain Tomorrow? – China Eastern cancels order for Boeing 787s

By John Galt October 18, 2011 – 21:20 ET Uh, about those awesome Boeing 787 Dreamliners again…. China Eastern cancels order for Boeing 787s (China Daily) 08:36, October 19, 2011 BEIJING – Chinese airlines that used to boast about ambitious international expansion plans are now turning their focus back home as the weakening global economy hurts demand for long-haul air travel. China Eastern Airlines Corp, the country’s second-largest carrier by aircraft numbers, announced on Monday night it was canceling its order for 24 Boeing 787 Dreamliners in favor of 45 smaller…


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