Economics

CRYPTOCARNAGE – Bitcoin crashes below 10,000, Ripple down 50%!!!!!

by John Galt January 16, 2017 17:45 ET Uh, um, yup. At least the new kid on the block with the super-duper ultra blockchain is still rocking it, right? What a nightmare. This is what happens when fiat money chases imaginary crypto fiat money and a crash occurs. The exits are not big enough, there is not enough liquidity, and panic ensues. If it doesn’t, well, all I can say is the exit was obvious at $17,000 and now you’ll be lucky to catch a bid, if there is such a…

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Oh the Humanity! Crypto Carnage as Bitcoin is down Almost $8000 from its Highs

by John Galt December 22, 2017 09:20 ET Millennial know it all’s, meet gravity: If this isn’t the start of something bigger to the down side the BOHICA when the crash really does come. Technically speaking however, there is little reason to expect major support until this breaks down below the $6,000 to $7,000 range with substantial volume. All of the cryptos are experiencing this year end profit taking so if anyone thinks this is over, well there is a week to go in the year roughly and with the Wall…


12/10 While You Slept Bitcoin Crashed and Recovered Again

by John Galt December 10, 2017 10:15 ET Twas two weeks before Christmas, And all through the Financial Houses, Not a creature was stirring, Except Crypto-mouses. Wow. The “stability” of crypto bubble currencies never ceases to amaze but what Bitcoin has been doing over the last three weeks is nothing short of Ponzi spectacular. Last night was no exception: A drop of over $2,000 since Friday with a bounce back to $15,000 all in one night. Someone in Asia apparently thinks the US futures debut will be a clusterfawk while others…


Bitcoin Might Reach $20,000 Before Winthorpe and Valentine Sell

by John Galt December 7, 2017 06:35 ET I’m not saying that the chart I posted last week looks vaguely familiar, but here it is again for those who emailed and commented on “Guess this Chart” last week: For those who wonder, it was the NASDAQ from August 9, 1995 until the top right before it crashed in 2000. The August 1995 date is significant because it market the debut of Netscape on to the market and the wave of .com bombs which caused a massive crash which followed. Which brings…


Today’s Old Man on the Beach in a Speedo Stock Market

by John Galt December 4, 2017 21:20 ET Well, you took the click bait so let me give you my rant before making your eyes hurt with today’s market action. Granted, I live close to one of the most beautiful and popular beaches in the world at Siesta Key, thus the dress code is somewhat lax, especially during the season when the northerners and Europeans invade. But for Pete’s sake people, especially you old guys, do not wear speedos or other European swimwear thinking you have a body like Borat with…



Despite Idealism, the Communist Mugabe in Zimbabwe was Not Deposed Due to Idealism

by John Galt November 19, 2017 23:35 ET This weekend the international and naive US media have once again portrayed the overthrow of the long standing communist dictatorship of Robert Mugabe as that of a “populist” revolution against a stale region. Trust me. It is 100% bullshit. This is about one thing which was announced by the Mugabe government in 2016 and ultimately will result in his downfall. From the UK Guardian on March 3, 2016: Robert Mugabe to nationalise Zimbabwe’s diamond industry If anyone thinks this is not enough to…


Why 2018 Will Continue to set Records for Stocks (Until it Doesn’t)

by John Galt November 19, 2017 22:00 ET The theory behind Trumponomics is as simple as it gets: Buy the bubble until you can not afford to. This is the same issue which arose during the 1990’s, yet few, if any, of today’s young quants can relate to the issues of that time which are mirrored in today’s era of stock froth and insanity. Old dogs like Dennis Gartman and Art Cashin wonder aloud why the traditional shorting and other strategies are floundering in the face of an overvalued market based…


While you Slept: Bitcoin CRASHED 10% Overnight and over 25% Since Thursday

by John Galt November 12, 2017 01:45 ET Oops. This was not supposed to happen according to Geekdom Economics 101:     However, when you hear hucksters like Glenn Beck and others start to dump their gold promos for “wow, look at the pretty tulips” type of hype, you know the shit is about to crash. And so it has. Since Thursday, 11/9 Bitcoin on the open market has crashed almost 27% as of just about an hour ago. What does this mean for the bigger picture? It means that this…


Why the Dow Could Rise to 25,000 or fall to 10,000 in 2 Easy Charts

by John Galt October 30, 2017 05:00 ET Hilarious, right? Most individuals are laughing at the past, enjoying movies like “The Big Short” and ignoring what has happened in the past versus what is happening now. Why do I say this? The idiots who watch Fox Business, CNBS, or Bloomberg TV, read the Wall Street Journal or Financial Times and fancy themselves as “experts” on the markets. While anyone could have purchased an index fund or ETF in 2010 and held on for dear life for the bull market ride of…


From the Crap You Can’t Make up File – Equifax gets Fraud Prevention Contract from IRS

by John Galt October 3, 2017 20:00 ET I swear you just can not make this crap up any more. From Politico’s website tonight: IRS awards multimillion-dollar fraud-prevention contract to Equifax Yes, seriously. The same IRS that handles all of your private information just gave a no-bid multi-million dollar contract to the company which exposed all of your private information to every Pakistani, North Korean, and Russian hacker on planet Earth. Excerpted: The IRS will pay Equifax $7.25 million to verify taxpayer identities and help prevent fraud under a no-bid contract…


09.03 00:30 ET BREAKING NEWS: Large Nuclear Test in North Korea 6.3 Magnitude

by John Galt September 3, 2017 00:30 ET Effective immediately the rules have changed. Earlier today, the North Korean government claims they have developed a miniaturized hydrogen bomb which could be mounted on its missiles and used to attack U.S. targets and interests. From Yonhap News in South Korea: N.K. claims development of hydrogen bomb for ICBM North Korea claimed Sunday it has developed a hydrogen bomb that can be mounted on its new intercontinental ballistic missile (ICBM), saying that it can produce as many powerful nuclear weapons as it wants….


One Picture Which Proves Bitcoin is a Bubble

by John Galt August 20, 2017 22:10 ET Should I post a bunch of graphs comparing the 1990’s tech boom to Bitcoin? Eh, no. What about an in-depth analysis of the Tulip mania compared to other bubbles past and present. Er, no, not that again. Just the picture below which I snapped one day while sitting at a traffic light in Sarasota County: Cash4Gold was a fad and flopped. When someone implies that it is “easy money” it isn’t, it is a bubble. This too shall pass, mark my words. Enjoy.


China Threatens U.S. if Pre-Emptive Strike Against North Korea Occurs

by John Galt August 10, 2017 21:45 ET Nothing like watching a Chinese People’s Liberation Army hell march video to remind everyone that they have the largest military in the world. The superpower race has shifted thanks to globalist ambitions over the last forty years thanks to the major nuclear powers ceding the actual dying over to subsidiary client nations whether they wanted to fight for those powers or not. Tonight in the Global Times of China, an official organ of the Chinese Communist Party, the following editorial appears which clearly…


The Next Market Crash Will Not be Televised

by John Galt July 31, 2017 05:00 ET Way, way, way, way back before televisions were generally available in color, cable was a luxury reserved for hotels and the wealthy, and financial television was reserved to Louis Rukeyser and a weekly program on PBS and the “Nightly Business Report”, the idea of information beyond the 6:30 p.m. national newscast was considered absurd. In fact when the 1987 Market Crash hit live on cable television, it was the quixotic moment which brought financial news out of the shadows and into the forefront….


The Ugliest Stock Chart of July 2017

by John Galt July 30, 2017 20:10 ET Uglier than Rosie O’Fat’s wedding kiss? Yup: It has not broken any long term support levels yet, but if there are more weeks like the last one on increased volume, then odds are we will break support and indicate that a major divergence has been validated and a key market reversal has begun. The next 90 days (hmmm, where have I heard that) could be super dangerous for equity traders as the proverbial “Black Swan” is now flying all over the algo houses…


The Ultimate Bitcoin Crash Nightmare

by John Galt July 30, 2017 19:00 ET The experts in Bitcoinland have been proclaiming how great this cryptocurrency is and shall be into the future. The “experts” also claimed that it was healthy for the cryptocurrencies that the Securities and Exchange Commission required ICO’s (Initial Coin Offerings) within the United States to be treated somewhat like IPO’s (more at this link).  However, and as usual with new technologies (a la Portfolio Insurance, Derivatives, etc.) the SEC is already 4 years behind a burgeoning multi-billion dollar industry as most nation’s regulators…


Friday’s Poop-The-Bed Stock Chart Special

by John Galt July 28, 2017 21:50 ET From the once, er now not so much, magical rabbit pooping company MicroStrategy’s website: We provide powerful software solutions and expert services that empower every individual with actionable intelligence, helping enterprises unleash the full potential of their people and investments. Our analytics and mobility platform delivers high-performance business applications that meet the needs of both business and IT. Now that we’ve established what they do, how did they do after last quarter’s earnings report: In technical analysis that is called “shitting the bed”…


Thanks to the Trumpcare Collapse Here comes the Great Crash of 2017

by John Galt July 28, 2017 05:30 ET Around 2 a.m. Eastern time this morning, the revenge of the Establishment Republicans was complete with three progressive obstructionists voting to kill any consideration of a conference on the repeal of Obamacare. The three names will become legendary in history not for their vote tonight, but for the symbolism of how politicians are so entrenched in maintaining the attempted control of the U.S. economic system from Washington, D.C. This has happened before in history so do not let the so-called conservatives on talk…


Today’s “Oh Shit Chart of the Day” Courtesy of the Dow Jones Transports

by John Galt July 27, 21:45 ET The Dow was up but the rest of the equity market took one giant leap for turdkind today in what can only be a warning shot for the upcoming fireworks that the Repbulicons and D.C. are just determined to inflict upon the American economy. The “Oh Shit” chart of the day is courtesy of the Dow Transports which dumped over 3% which in normal times would cause the old timers to get a tad bit excited: For the math geniuses now running Wall Street…



August 1, 2017 Starts the Most Dangerous 90 Days in American History

by John Galt July 19, 2017 09:00 ET Donald J. Trump has been President of the United States (POTUS for short) for almost seven months by August 1st and everyone should rightfully be terrified; not of him or his Presidency but the ominous parallels to our past. The Republicans have held a majority it he legislative branch along with the executive for the same duration. The stock market has enjoyed a bull market of historic proportions without a correction for the longest period in post Federal Reserve Act history. And effective…


We Didn’t Learn a Damned Thing from the Crash of 2008

by John Galt July 4, 2017 02:00 ET The screen shot pictured above is from the end of the hit movie, “The Big Short.” It could just as easily said: “In the end, we all get fucked by the man.” America has taken a dramatic shift away from the crash of 2008. Everyone thought that once the banks were bailed out, General Motors and Chrysler nationalized (in an un-Constitutional manner), and the so-called mortgage bail out for homeowners where “qualified” homeowners in select markets were able to re-finance their 15 and…


The Gold Rally above $1400 is About to Begin

by John Galt June 12, 2017 23:30 ET The long hot summer has begun and thanks to climate change so has the case for gold to rally started also. After all, if the enviroloons can blame the election of Donald Trump on global warming, why not blame a massive geopolitical economic collapse which causes gold to go to the moon, right? After several severe hits to the gold price since the disruptions of November 2016 where the dollar rallied in the belief that our nation would get its act together (silly…


With 65% of the Vote, Guess who Won the French Election?

by John Galt May 5, 2017 15:05 ET The headlines from the mainstream media and French newspapers do not do this story justice. The truth is that after the Brexit vote the European elites were going to fight at every turn to ensure the survival of the European Union. Thus a huge effort was poured into the Dutch elections to prevent a nationalist surge and potential end to the redistribution of Islamic “refugees” throughout the continent. Meanwhile the United States voted for a Reality TV show star who threatened to change…


And Another Billion Dollar Bank Failure: Guaranty Bank in Milwaukee, WI

by John Galt May 7, 2017 11:55 ET (I’ve been in and out all weekend so sorry for the delay in getting this posted on Friday night when it happened-JG) It’s just too funny that this bank’s motto was “We Got This” when actually it’s the FDIC that got it. Another Friday, another bank failure in this “booming” economy. Now that Obama has left his trail of ruin and screwed up policies that even Buddha could not undo with all of his hands and telekinetic powers, Trump’s regime is finding out…


$1 Billion Dollar hit to FDIC over First NBC Bank Closure

by John Galt April 28, 2017 23:20 ET Welcome back to FDIC Bank Failure Fridays! Tonight’s failure will cost taxpayers, er, the FDIC Deposit Insurance Fund over $996 million dollars which means this is no small hit. Here is the full press release and get ready for a larger wave of bank failures as we move into the second half of 2017: Whitney Bank, Gulfport, Mississippi, Assumes All Transactional Deposit Accounts of First NBC Bank, New Orleans, Louisiana FDIC to Mail Checks to Holders of Time Deposit Accounts, Including IRAs and…



03.27 Market Deathburger Watch: Dead Animals Make a Tasty Late Night Snack

by John Galt March 26, 2017 21:30 ET I think we might be taking a market road trip soon… Tonight has started out “interesting” needless to say. One of the headlines from CNBC gives everyone a clue as to how this evening may roll: The Nikkei 225 has voted down on the Trumpcare collapse with a 1.21% drop as of 9 p.m. ET: Meanwhile as Trumpzilla gets set to roam East Asian markets, Australia has recovered first because the investors woke up and realized they are already living in a Socialist…


The TrumpCare Stock Market Crash of 2017

by John Galt March 26, 2017 19:10 ET Poor President Trump. The first rule of Washington Fight Club is that once you promote an idea, no matter how stupid it is, you own it. Thus it might Paul Ryan’s and Reince Priebus’ bill, but you are the proud owner to this failed nightmare because you kept promoting it and saying it would pass and be great for America. After being swept into office by surprise to many in the “mainstream” media, the financial world, and most members of the two inept…


The SEC Crashes Bitcoin $300 After Declining ETF Application

by John Galt March 10, 2017 17:00 ET The Securities and Exchange Commission voted today and for the invisible currency you can not hold in your hand, well, not so good (from Forbes): SEC Rejects Winklevoss Bitcoin ETF, Sending Price Tumbling Excerpted: In its statement, the SEC stated, “the Commission is disapproving this proposed rule change because it does not find the proposal to be consistent with Section 6(b)(5) of the Exchange Act, which requires, among other things, that the rules of a national securities exchange be designed to prevent fraudulent…


WTI Crude Oil Crashes Below $50 per Barrel

by John Galt March 9, 2017 05:30 ET With little warning West Texas Intermediate crude oil contracts took a dive just after 5 a.m. Eastern Time with a fast $1.00 drop bringing the price below the $50 per bbl. level. Brent has also dropped below the $53 level which means this sell off could accelerate throughout the day. As of this posting, the only Middle East equity market with a major downturn is the Abu Dhabi (ADX) Stock Exchange is reflecting any negative impact from this sudden drop but it has…


Bitcoin v. Gold: And the Winner is…

by John Galt March 8, 2018 21:20 ET Last week, something bizarre happened in reality which really should set the tone for all markets this year. From CNBC: That’s right, Bitcoin was priced around $1290 each while gold was floundering in its next leg down at $1228 per ounce. Is it the end of the world? Maybe. Or perhaps, like the financial markets as a whole since the 1990’s insanity began it is a reflection of digital fantasy usurping actual reality. After all, how many bitcoins do you have in your…


The First Trump FDIC Friday Bank Failure is Proficio Bank of Utah

by John Galt March 3, 2017 20:45 ET Tonight marks the official beginning of the President Trump era of the FDIC seizing failed banks as the bank seized on January 27th was actually initiated under Obama’s leftovers running the U.S. Treasury, not Steve Mnuchin or anyone from Trump’s team. What is interesting about this failure is that is sounds eerily like those small banks which started failing in 2006 and 2007 which preceded the avalanche of failed institutions in the mortgage and bank implosion. From the former parent company’s website, NHB…


President Trump Should Kill Obamacare on February 28, 2017

by John Galt February 26, 2017 22:00 ET “Their throats are open graves; their tongues practice deceit.” “The poison of vipers is on their lips.” – Romans 3:13 Welcome to Rome Mr. President. Although the biblical reference has nothing to do with Rome or Washington, D.C., it seems appropriate considering the betrayals, fake news, and absurd political games being played there now. After President Donald Trump waltzed into Washington he thought that the bureaucracy and Republican leadership would bow down and obey the voters. Just over one month later, reality has…


Gold and Silver Divergence Indicates an Unstable Market

by John Galt February 21, 2017 05:20 ET Last week’s moves in gold and silver provided a divergent point in the precious metals markets as silver broke through a short term resistance point of $18 per oz., while gold struggled to continue it’s upward blitz. First gold, which put on a show to start the week but then stalled at the $1240 level: Unless gold can complete the move through the technically important $1280 level with improved volume to break the downtrend in participation for the metal, the price will probably…


Silver and Gold may Have Further To Run Before a Big Drop

by John Galt February 6, 2017 05:00 ET The U.S. Dollar has finally entered into a period of seasonal weakness and as a result, the usual first quarter rallies in gold and silver is well under way. The rumors about a super strong dollar policy are premature since it would appear the Democrat Party strategy is not only to only to obstruct, but to rally the legal system to oppose anything remotely resembling Constitutional rule of law. Thus the disorientation felt by world markets is actually leading to an opportunity for…


UK Parliament Votes to Trigger Article 50 so Brexit is Official

by John Galt February 1, 2017 18:20 ET Tonight the United Kingdom finished the final step as required by Great Britain’s Supreme Court when the Parliament passed the bill to trigger Article 50 by over 384 votes (from the UK Telegraph): Boris Johnson says ‘history has been made’ after MPs pass Bill to trigger Article 50 by 498 votes to 114 From the article: Boris Johnson said that “history has been made” after MPs voted overwhelmingly on Wednesday night in favour of triggering Brexit negotiations and beginning the process of leaving…


Trump is Obviously Racist: 1st FDIC Action under Trump is to Seize Black Owned Chicago Bank

by John Galt January 27, 2017 18:45 ET For the terminally stupid, the headline is obviously sarcasm. But the reality is the Obama bank failure rush will begin now. Tonight, President Donald J. Trump’s FDIC took the first step to stabilizing the corrupt Obama banking system by what? Seizing a black owned bank with rumored political ties to Mayor Rahm Emmanuel and support for Democrat causes in the region. Political payback or just logical? I’ll go for the latter as the Treasury Secretary nominee, Steve Mnuchin, has not even been confirmed…


The ATM of Today is the Phone Booth of Tomorrow

by John Galt January 26, 2017 22:05 ET Remember when everyone said that Bitcoin was going to be the defying act of independence as a digital currency which replaces every global currency? Did anyone really think that the world’s central banks were not going to go down without a fight? Uh, no. Last night that was exposed on these pages when the People’s Bank of China shocked the world: BREAKING NEWS: People’s Bank of China First Central Bank to Issue Digital Currency The PBOC is the science lab for an experiment…


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