December 2011

My Final Post of 2011

By John Galt December  31, 2011 – 16:00 ET To all of my readers, contributors, and those who have aided this website, supported the radio show, or just dropped by to read the words or data presented here, I wish to thank you immensely. I have worked harder than ever to grow this site, improve the content, and offer an alternative news source without the noise and nuisances presented by the mainstream media and the agenda of those with power. This has been a year of huge low moments for my…


12.30 V of Galt: Predictions 2012 Live and in Color

By John Galt December 30, 2011 07:50 ET Buckle up. 2012 is almost here. Last year I was so-so in my predictions and for 2012 I probably will be also. If you are meek put on your Depends for this show or just assume the fetal position when the theme music stops. In the first half hour I’ll cover the news of the day, the financial news and then begin the prognostications which cover geopolitics, sports, U.S. politics, the economy, weather, and whatever else I feel like. There are no guarantees,…


12.30 U.S. Market Preview: 2011 is over, here comes the Bear

By John Galt December 30, 2011 – 07:43 ET While many a commentator and bubblevisionista will argue that 2011 was a “safe” year with the Dow up about 6% for the year and the S&P 500 treading water but up slightly, the decline in the NASDAQ is the lesson of the year and a warning sign for stocks in early 2012. Traditionally during an election year markets rally as the election gets closer and I expect 2012 to be no exception. While timing is everything, and mine sucks as I will…


12.29 U.S. Market Preview: It’s a PIIGS Porkfest

By John Galt December 29, 2011 – 05:25 ET There is nothing Santa can do now but go home to the North Pole and melt the ice with the good Mrs. now, as the markets are totally focused on the reality of the PIIGS problems once again. The Euro is hovering and barely holding the 1.29 level as I type this, gold is moving south once again preparing to make new lows, and the yields on the 10 year Italian bond is well above 7.00% once again as displayed above. The…


Gold and the Euro Announce the Arrival of 2012 Deflation

By John Galt December 28, 2011 – 12:45 ET The mid-day action in gold is a nasty reminder that when deflation warnings are ignored, the ignorant shall be punished: With gold down almost 2% at 12:30 ET in thin trading most bubbleheads are on the financial networks pointing out the fact that gold is a horrible investment because it just sits there or that there is no reason to buy gold. In reality, once gold breaks the danger zone support levels in the chart below, it is almost imperative to buy…


This is what a “Stock Death” chart looks like

By John Galt December 28, 2011 – 08:40 ET Somehow I don’t think the fire department can save them. Call it a fire sale, terminal velocity, whatever one might like, but a 65% drop from the top within a one year period is usually a death sentence for an equity and in this case a poorly run company. The only thing missing from this chart is a quote in single digits which should be coming very, very soon.


12.28 U.S. Market Preview: Preparing For the Fall

By John Galt December 28, 2011 – 08:15 ET When these pages say “preparing for the fall” I am not referring to a change in seasons. The one chart, a bear among the most bearish, says it all: The breakdown of of Goldman Sachs is a leading, not lagging indicator of future activity. This collapse after the death cross as pictured above is usually a warning for a stock and in this case the financials that further stresses are about to impact the markets. The failures in November and December to…


12.27 V of Galt: The Last Doomer Tuesday (of 2011)

By John Galt December 27, 2011 – 17:30 ET It’s all Ron Paul’s fault. At least according to Faux News. Of course the world’s financial system is imploding, war is impending with Iran, and who do we blame for that? Tune in this week to find out how Ron Paul was responsible for the meteor hitting Siberia in 1908, every disease inflicting mankind since 1957, and of course, why Ross Perot caused George H.W. Bush to suck so much. After all, it’s Ron Paul’s fault according to the RNC and Fox…


12.27 U.S. Market Preview: Time to Get Real as the Hangover begins

By John Galt December 27, 2011 – 07:30 ET Now that the holidays are over with, the returns complete, it is time to prepare for a harsh reality once again. First, the continued crisis in Italy continues with the 10 year yield crossing 7% again this morning, despite massive intervention by the ECB and member banks. (chart via Bloomberg.com) Secondly, the EUR/JPY swap is signaling another leg down in the Euro currency is imminent, probably at the end of this week or the next at the latest: Finally, the gold charts…


And to all, a Good Night

No war stories. No historical references to the great No Mans Land Christmas story from World War I which I posted last year. Just a wish to all my readers and friends: May your family, your world, your friends and acquaintances have a blessed and peaceful holiday season and of course: A very Merry Christmas. Barring a disaster, a war, or news of some import, it is my time to spend with my family and a blessed period for you to spend time enjoying the Peace and Beauty of this season….



12.23 U.S. Market Preview: Grandmabear got run over by a Plungerdeer

By John Galt December 23, 2011 – 05:50 ET Grandmabear  got runned over by a Plungerdeer Walking home from Wall Street Christmas Eve. You can say there’s no such thing as Santa rallies, But for me and Art Cashin, we believe. The bears had been drinkin’ too much eggnog, And we’d begged them to buy more Citigroup. But they’d believed too much in Whitney, So off the margin calls knocked them for a loop. When they found them Christmas mornin’, At the scene of the attacks, There were Fed prints on…


12.22 U.S. Market Preview: Welcome to Silly Season

By John Galt December 22 2011 – 04:59 ET This is the time of year where the idiots will tell the viewers of the various bubblevisions that the Santa Claus rally is a sign of underlying economic strength and that this portends a bullish 2012. They will claim it means a major economic turn around is coming and blah, blah, blah. Really? Did anyone tell Asia last night where Shanghai had its 4th negative close in a row and is in danger of crashing to new lows in its long term…


S&P Screws Austria: Hungary Downgraded to Junk

By John Galt December 21, 2011 – 14:55 ET Over the past few years I have been writing and commenting on the other housing crisis in Europe, that being of the nations who issued mortgages in Euros to Eastern European nations. Hungary was one of the largest nations in which the citizens borrowed heavily from Austrian banks in Euros but their local currency, the Forint, was used to pay those banks back. That worked fine until the Euro skyrocketed in value and the Hungarian economy crashed in 2007-2008 along with the…


Existing Home Sales Revised DOWN 14.3% from 2007-2011

By John Galt December 21, 2011 – 10:10 ET The housing disaster continues and what better week than the a holiday week to issue a report indicating that the housing depression continues in full force. The National Association of Realtors issued their monthly existing home sales report minutes ago and the revisions to the old data plus current month indicates that all the efforts by both the Bush and Obama administrations were useless and did nothing to salvage a sinking ship. From the report (available at this link): While month over…


And now some Truth about Yesterday’s Housing Data

By John Galt December 21, 2011 – 09:50 ET Because it is poor form to report bad economic news before Christmas and blasphemy to acknowledge data which gives the impression that our Imperious Leader (sorry, Dear Leader was taken) is impotent and incompetent regarding economic matters, the housing data reported yesterday was trumpeted as an indication of a possible bottom or start of the bottoming process in the housing market. In fact some blogs like Business Insider performed their usual duty of posting blog entries from both point of views but…


If Europe is Cured, Why are Central Banks Preparing for its Collapse?

By John Galt December 21, 2011 – 07:30 ET The constant drumbeat of reports out of governments and mainstream media sources from Europe and the United States is that the European Union and European Central Bank are working on solutions that will cure or at least alleviate the crisis threatening the region. Each morning there is the breakthrough story of a new facility or program to keep the union intact or maintain the integrity of the ECB while rumors swirl that the solutions enacted are nothing more than darts being thrown…


12.21 U.S. Market Preview: Santa Hangover Anyone?

By John Galt December 21, 2011 – 07:10 ET The S&P 500 cash made it above the magic 50 DMA without surprise or little effort yesterday on the back of a proverbial “Santa Claus Rally” as predicted in these pages early in the morning of December 20: With the markets hovering  near 1240, the potential to test the 1248-1254 area remains but odds are it will fail intraday as the news out of Europe is digested and the ECB bank loan program is recognized for what it is: Desperation. The problem…


12.20 V of Galt Doomer Tuesday: Part 4/4, from Siberia to South Carolina Bondage be thy name

By John Galt December 20, 2011 – 16:40 ET The finale of my series of the upcoming enslavement of the United States and as a result, much of the world completes tonight with part 4 of the series. From the gulags of Siberia to the labor camps of South Carolina, humanity is about to be forced into economic and physical bondage to serve the masters who desire to crush freedom and destroy the laissez-faire capitalist model once and for all. The replacement of our perceptions of freedom with fictionalized truths reported…



12.20 U.S. Marketwatch: Santa says, “I’ll give you your *#!?@# rally”

By John Galt December 20, 2011 – 05:20 ET Yesterday’s market action on thin volume was in a word, brutal. All of the indicators that Santa Claus was going to save the day failed. Gold rallied above $1600, then fell. Oil barely moved. Financial stocks scream of a disaster building cause in the markets. And despite the horrid yields, people are piling cash into the U.S. bond market, even accepting real and net negative yields to insure the return of capital. The S&P 500’s failure to break above 1220 will probably…


12/19 AEP: Spain grits teeth yet again as austerity deepens

By John Galt December 19, 2011 – 16:45 ET Tonight’s commentary from Ambrose Evans-Pritchard via the U.K. Telegraph: Spain grits teeth yet again as austerity deepens <click on the title to read the full article> This excerpt really sums up the depth of the crisis about to hit the Spanish people, remainder of the PIIGS, and the European Union as a whole: It may prove harder this time within the euro straight-jacket. “The global economy was much stronger then and they benefitted from devaluation,” said Dario Perkins from Lombard Street Research….



Is Goldman Sachs about to play Grinch on the Santa Claus Rally?

By John Galt December 19, 2011 – 11:05 ET Goldman Sachs is beginning to look a lot like the Grinch that Stole the Christmas Rally. Check out their action today on the chart courtesy of Yahoo Finance: If GS breaks below 85 this week, the markets will follow suit and break severely before the holidays, setting up for a very negative start to 2012. Watch this sucker closely gang.


The Tools of America’s Future Police State

By John Galt December 19, 2011 – 08:40 ET Now that the NDAA has pretty much guaranteed that the entire country is about to be subjected to illegal search and seizures, beyond what has been occurring under the Patriot Act, I think a glimpse into the various instruments the government is acquiring to monitor and enforce whatever plans they have for its citizens is in order. I discussed these instruments of liberty’s destruction on last Tuesday’s program as I was quite angry about the alleged Tea Party patriots of the House…


12.19 U.S. Market Preview: Going No Where Fast

By John Galt December 19, 2011 – 08:20 ET A tad late this morning with the update but then again, I was up into the wee hours to see if the Dear Leader’s son was going to engage in a random act of kindness or stupidity. Fortunately it has been quiet beyond the traditional launching of a short range missile to scare the South Koreans and keep our boys in the peninsula on alert. The markets went no where fast last week besides dropping around 3% so the idea that Santa…


Another Victim of the G.M. Fiasco Goes Tango Uniform: Saab

By John Galt December 19, 2011 – 08:00 ET Even an ABBA song couldn’t save this victim of the great government seizure and collapse of General Motors as Saab filed for bankruptcy protection this morning per Reuters. This disaster was easy enough to predict when G.M. acquired Saab years ago and had no idea what or how to market their cars in the U.S. beyond the niche market of snotty yuppies. Unfortunately for those workers who are now permanently idled in Sweden, this is the swan song for another legendary car…



12.19 Israel Completes Secret 2 year Upgrade to Dolphin Class Submarine

By John Galt December 18, 2011 – 23:10 ET As the news cycle accelerates in the Middle East with massive discontent, the story from the Jerusalem Post’s print edition breaks this shocker (click on tittle to read full article): Navy completing secret two-year submarine upgrade The shock is not that the upgrades were done; it was this tidbit from the story: The submarine was taken out of service almost two years ago but the renovation was a carefully guarded secret in the navy so Israel’s enemies would not know that one…




A Headline from America’s Future: Punks Flee Re-Education

By John Galt December 18, 2011 – 21:45 ET The photo above and the story from the Jakarta Globe should terrify the average American, not because of the local content, but just substitute the names of “Joe” or “Susan” and add the evil element of the “Tea Party” to the re-education camp idea and how the media in Indonesia reports the following story for perspective. Add in the ideas of the current Congress and Senate plus the President of the United States along with the thinking of the current intelligence apparatus,…


NERDS!!! America needs you! – The New MOST Stressful Job in the U.S. Military

By John Galt December 18, 2011 – 21:00 ET In the old days, like when my friends went off to war, the most stressful jobs usually were within the Special Forces, Navy SEAL teams, Engineers, or of course, USMC Recon. Fast forward to the insanity of today’s world and the story below from Reuters, and one can only realize that NERDS: AMERICA NEEDS YOU !!!!!!! That’s right if you play the various combat games on whatever console (which I never have), then you are now officially somewhat qualified to provide relief…


Islamist Winter Update#3: Stories the Mainstream Will Ignore from Central Asia and the MENA Region

By John Galt December 18, 2011 – 20:15 ET As Bahrain and Egypt are getting scant notice beyond some of the cable news outlets in the U.S., there are other regions roiling with protests and riots which will impact not just the geopolitical picture, but economic future of the West in the year ahead. Thus I thought some alerts as to what just might be coming is worthy of reporting. First from Reuters, a story today that could indicate that all of the plans of the West, especially Europe and even…


12/18 AEP: Workers of Europe unite, you’ve only euro chains to lose

By John Galt December 18, 2011 – 18:59 ET Just wow. Besides the obvious extremist rhetoric expressed by Ambrose Evans-Pritchard, the warning he issues to the extreme leftist loons of Socialist Europe is best expressed in the first four sections of his commentary from tomorrow morning’s print edition of the U.K. Telegraph: Almost 97pc of the European Union’s population is now governed by conservative or Right-leaning coalitions, or EU-imposed mandarins. All that is left to social democrats is Austria (8.4m), Denmark (5.5m), and Slovenia (2.1m). The whole machinery of the European…


Islamist Winter Update#2: Several Injured in Bahrain, Residents Tire of Protests

By John Galt December 17, 2011 – 23:45 ET When the nation of Saudi Arabia insisted the GCC invade Bahrain to crush the Shiite protests, the West went back to sleep and assumed the discontent was pacified or stifled and this strategic tiny nation in the Persian Gulf would not reappear in the news cycle. Unfortunately for the House of Saud, that is not the case as this story from Al-Jazeera explains: ‘Several injured’ in Bahrain clashes Excerpt: Bahraini police have clashed with anti-government protesters, a day after rights activists said…


12/17 Islamist Winter Update: 9 Dead in Egyptian Protests, Numerous Wounded as Riots Erupt

By John Galt December 17, 2011 – 23:00 ET The video via Al-Jazeera only begins to tell the story: With 9 dead and 430 wounded as reported by Al-Jazeera, the winter of discontent with the military junta running Egypt is expanding as is the opportunity for Islamists who are about to take power to cultivate new military leaders to replace the current crop with officers sympathetic to their goals. What has the protesters really angry this time is that the military openly beat female protesters and some of the video has…


12.16 V of Galt: The Survival Hour-Surviving the Anti-Christmas (and having some fun)

By John Galt December 16, 2011 -17:45 ET BAH HUMBUG. That is the proverbial War on Christmas but is it, is it really, just a “War” on Christmas or something bigger? And why did the U.S. Government give the atheists and ACLU anti-aircraft batteries to shoot down Santa? What about a war on faith? What about a war on tradition? What about a war on your family? Let’s share our time tonight before Tune into the Voice of Galt at 7 p.m. Eastern Time tonight for the Banana Republic Financial Report,…


Oopso Ouzo, Greece’s Budgetary Problems Worse than Initially Reported

By John Galt December 16, 2011 – 16:30 ET Cue Greek Music like…. Now burp, then try to digest the truth instead of the ECB and Federal Reserve/Mainstream Media lies and distortions…. “Hole” almost 2.2 billion in Social Security That story, translated from Google via Prothema.gr spells out the disaster about to hit the Eurozone… From the translated article: Indicative of the problem is the fact that so far in 11 months ie by early 2011, the “hole” in the Social Security funds reached 2.177 billion, which translates to a reduction…


Saxo Bank releases their 10 Outrageous Predictions of 2012-And some are not way out there….

By John Galt December 16, 2011 – 15:20 ET Saxo Bank has release their “10 Outrageous Predictions for 2012” and they are all worthy of comment by moi, because that is what I do. Here they are: 1. The stock of Apple Inc plummets 50 percent from 2011 high My Take:  30%? Easily. 40%? Possibly. 50%? Iffy. If Apple is cut in half, we’re watching cities burn. 2. EU declares extended bank holiday during 2012 My Take: Yes, in my opinion, for one week in “solid” nations, months in the PIIGS…


%d bloggers like this: