26/10/2011

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…


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