Economics

The FBI Proved Tonight it is all Rigged – Stocks Soar, Hillary Flaunts, America Dies

by John Galt November 6, 2016 18:50 ET I’m sure FBI Director Comey did not wake up to his favorite horse in his bed this morning, but I feel his pain for the loss of whatever pet he did find beheaded this morning under his sheets. Because if anyone thinks that the system is not rigged, think again: The RNC folds and after Donald Trump gets a few early wins, the entire Party coalesces on stopping legitimate threats to the Washington Establishment like Ted Cruz and Marco Rubio. The “movement” behind…


The End of the Independent Trucker

by John Galt November 2, 2016 19:45 ET Today, Warren Buffett, the railroad industry, and the anti-trucking alliance won a huge victory which soon will mark the end of the independent trucker, aka, owner-operator in America. From the Wall Street Journal logistics pages tonight: Appeals Court Upholds Trucker E-Log Rule While the headline itself seems innocent enough, after all, safety on the roads is important, right? Afraid not gang as the secondary headline tells the tale of woe about to end the independent trucking industry: Drivers association says requirement makes members…


Welcome to the B.R.U.S.A.

by John Galt October 12, 2016 20:00 ET Welcome to the Banana Republic of the United States of America (B.R.U.S.A.) In just the past week we’ve had stories like this one: And this one (warning uncensored language): And this one: John Podesta Asked Hillary Clinton to Court ‘Needy Latinos’ in WikiLeaks Email And this one: At Wells Fargo, Complaints About Fraudulent Accounts Since 2005 Of course the media is now part of the Clinton campaign so that officially puts us in Third World territory (via WikiLeaks): Of course when a Banana…


On the Trump Tax Issue, Warren Buffett is Full of Crap

by John Galt October 10, 2016 20:55 ET Today the financial propaganda infomercial media, aka, CNBC, published the following story: Warren Buffett fires back at Donald Trump’s comments about his taxes In the story linked above the Orifice of Omaha stated the following: “I have paid federal income tax every year since 1944, when I was 13. (Though, being a slow starter, I owed only $7 in tax that year.) I have copies of all 72 of my returns and none uses a carryforward,” Buffett said in a statement. So let’s…


10.09 Saudi Stock Market Plunges another 2.2%

by John Galt October 9, 2016 08:45 ET So much for the idea that this rally will carry the world into a new camel, er, bull market. (chart via Bloomberg) This is not a predictor for the future, but if it is a hint as to how disturbed the force is with the potential for World War III starting any moment, world markets could drop far and fast without much warning.


UK POUND EXPERIENCES FLASH CRASH: Drops 6% in 2 minutes!

by John Galt October 6, 2016 19:30 ET I don’t know what happened but will effort to find out but suddenly, just after trading started in New Zealand, the FOREX markets imploded with the British Pound Sterling collapsing 6% from 126 to 119 in less than 2 minutes: More as news comes in..stay tuned as it has recovered to 123 but there is something major happening. UPDATE – From the UK Telegraph, worth a read: Pound skids to fresh 31-year low and FTSE 100 closes below 7,000 on fears of hard…


Saudi Stock Market Takes a Camel Dump as it Drops 3%

by John Galt October 2, 2016 09:30 ET Guess the Obama lame duck magic is wearing off (Chart courtesy of Bloomberg): Oil is indicated to open substantially lower later today if the Middle East trading session is any indication, even though it was not throughout the entire region, the overnight and Monday trading session for equities globally could be interesting. Needless to say, the horrid economic conditions and further actions by the Saudi government which indicate that they may indeed be in greater financial trouble than publicized, along with the ongoing…


5th Bank Failure of the Year: Allied Bank of Mulberry, AR Seized by FDIC

by John Galt September 24, 2016 22:30 ET As I was out and about last night and did not have time to post up the usual “Bank Failure Friday” posting, here is the delayed news from the FDIC last night: Today’s Bank, Huntsville, Arkansas, Assumes All of the Deposits of Allied Bank Mulberry, Arkansas FOR IMMEDIATE RELEASE September 23, 2016 Allied Bank, Mulberry, Arkansas, was closed today by the Arkansas State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into…


What the Federal Reserve Really Said Today: We Despise Trump

by John Galt September 21, 2016 19:20 ET The Federal Reserve Open Market Committee (FOMC) issued their statement on interest rates and the always wrong economic outlook at 2 p.m. today (From the Federal Reserve webpage): Release Date: September 21, 2016 For release at 2:00 p.m. EDT Information received since the Federal Open Market Committee met in July indicates that the labor market has continued to strengthen and growth of economic activity has picked up from the modest pace seen in the first half of this year. Although the unemployment rate…


When You See Stories Like This, the Market Top is In

by John Galt September 16, 2016 19:50 ET When you see stories like this one (via Business Insider): Yeah, it usually means the market top is in. When the pie in the sky insanity after years of predicting market crashes and booms winds down to the end of the a credit and business cycle, the insane stories start to appear attributing rallies to elections, Issac Newton, Trump’s belly button lint, or the length and duration of Hillary Clinton’s Parkinson seizures. The truth sucks but God forbid the pump and dumpers tell…


Sandbagging, Fraud, and a $124.6 Million Bonus for this Performance from Wells Fargo

by John Galt September 12, 2016 19:45 ET Apparently Wells Fargo has adopted this as their corporate philosophy: Yeah, it’s that bad. Via Gizmodo today: Wells Fargo Executive Linked To Scam Gets $124.6 Million Payday Yup, you read that right boys and girls. You can oversee the commitment of gross and obvious fraud against 2 million customers and get paid damned well. A brief excerpt from the article: Wells Fargo executive Carrie Tolstedt will receive a $124.6 million payday when she retires at the end of this year, despite overseeing the…


The Bull Market is Now Officially Over

by John Galt September 10, 2016 22:20 ET Before I go into any great details as to why I think this horrid bull market is over, albeit horrid only because it is Federal Reserve purchased and promoted bull, I wish to review the markets at the end of trading this past Friday, September 9 (courtesy of the Wall Street Journal). How bad was it really? -NYSE down ratio of 13:1 on 4.3 billion shares -Nasdaq down radio 6:1 on 2.18 billion shares meaning it could have been worse -Dow Transports down…


Dude You’re Getting a Dell Screwing Over

by John Galt September 9, 2016 18:50 ET Ah yes, the classics, even though the line about customer service was proven to be 100% bullshit. Of course with the news of the last 48 hours, Dell Computer just basically gave Donald “My Illegals are OK, yours aren’t” Trump a brand new campaign commercial. From Wolf Street: Dell-EMC to Lay Off 2,000 – 3,000 US Workers after Requesting 5,000 H-1B Visas & Green Cards to Import Foreign Workers I would suggest clicking on the link to see the full story just so…


The Japanese People Want a Harder Stance Towards China

by John Galt August 28, 2016 17:50 ET The American people continue to slumber through their summer of heat, discontent, and insane politics while the rest of the world appears to be posturing for a major war. The Senkaku Islands dispute heated up recently when the Chinese sent hundreds of fishing vessels with Coast Guard escorts into the disputed waters. This had the intended effect of illustrating that the United States was impotent in this affair and that the Japanese government would not act or react without America’s tacit approval. Last…


No Matter What Janet Yellen Says, She Will Trigger this Outcome

by John Galt August 26, 2016 05:15 ET Maximum pain is on the way. What is about to hit could have been avoided, but knowing the pragmatic nature of central bankers they will simply state what they think the markets and world wants to hear. This time it is different. Between what she says at Jackson Hole today, which will be released at 10 a.m. ET, and the news slowly leaking out of Europe, by the time we get to the October surprise for the markets, all hell will be breaking…



Yeah, the Effing Real Estate Bubble is Back and Bigger than Ever

by John Galt August 21, 2016 02:00 ET Yeah, it’s that bad. I’m witnessing homes in one of my relative’s neighborhood that should go for $200 K TOPS being speculated at $390,000+. The fucking investors have bailed out and I can’t name who, where, or why thanks to the big banks suing everyone else out of existence in 2008-2009, but let me tell you the fucktards are back on informericial television on late night and radio promoting their “flip this home” insanity once again. It’s my fault. I decided to have…


Time to Blow the Dust Off this Oldie: 8/19 Bank Failure Friday Returns!

by John Galt August 19, 2016 19:30 ET How long has it been? Yup, I had to have Hulk Hogan blow the dust off Dolly Parton to find the appropriate theme. Tonight, for the first time in a long, long time, we have an actual by golly bank failure, only the fourth this year believe it or not. From the FDIC website: United Bank, Zebulon, Georgia, Assumes All of the Deposits of The Woodbury Banking Company, Woodbury, Georgia FOR IMMEDIATE RELEASE August 19, 2016 The Woodbury Banking Company, Woodbury, Georgia, was…



Welcome Back to the Stock Market Toppy, Top, Top, of Toppiness

by John Galt August 15, 2016 20:15 ET Yeah, okay, maybe not the best version of the song, but I think my readers understand my point. The S&P 500 closed at another already record super duper CNBCgasm high today on low volume and a very questionable economic and technical structure. Just like it did in 2007. While the insanity with in the major indexes reflect a mania, a bubble, a parabolic blow off, etc., etc., the off the radar investment warning signs are everywhere with dark pool deals which would make…


Why the CIA, Saudi Arabia, and Qatar are Furious about Erdogan’s Russian Rapprochement

by John Galt August 14, 2016 23:00 ET Deep inside the bowels of Langley, Riyadh, and Doha, there are some furious individuals who thought their establishment of disorder and conflict would result in a new world order that eradicated those foes who failed to fall in line with their program would be destroyed economically. Instead, the tables have now been turned and the CIA, Saudi Arabia, and Qatar are now facing the most embarrassing reversal of fortune since America’s withdrawal from Saigon. The plan was simple: After Bashir Al-Assad, the dictator…


Marc Faber Sends a Chilling Warning: S&P 500 Could Decline 50%

by John Galt August 9, 2016 18:40 ET Marc Faber, often referred to as “Dr. Doom” among many other nicknames from the bulls who hate it when he turns super bearish (and some when he turns bullish for that matter), was on CNBC earlier today and dropped this bomb on the pump-and-dump stock infomercial network: For the mathematically challenged and government employees who might have heard what he said but failed to comprehend, that would put the S&P 500 around 1100 and the Dow Jones Industrial Average somewhere between 9,000 and…


6 Years Later the PIIGS and Europe Still Wallow in Bear Markets

by John Galt July 31, 2016 10:00 ET Everything is great. All is quiet on the Western Front, Eastern Front, and Main Street economies with sluggish growth but new all time highs in key equity markets promoted for television purposes. The problems in Portugal, Ireland, Italy, Greece, and Spain are solved because CNBCCNNFBNFNCBBG does not want to cover them on a daily basis. Hence it’s all awesome: Right? Despite the fact that the over indebted United States has managed to hyperinflate its way into a new all time high in equity…


Wikileaks, Hillary, and Russia: Revenge is a Dish Best Served Cold

by John Galt July 29, 2016 05:00 ET The mega-circus known as the Democrat National Convention is concluding in Philadelphia, but the concern of all of its major leadership will not be seen unless this next release indicates what most of America already knows: The Clinton family is the most corrupt, un-indicted crime family in America next to White Bulger until the FBI finally went after his gang. Hillary Clinton’s problem however is not as easy as a bimbo eruption or weak participant in one of their exercises of illegality which…


Japan Poops the Bed

by John Galt July 29, 2016 00:20ET The drunk squirrel used to headline this story has nothing to do with Japanese Monetary Policy. Nor does the pink haired Japanese chick. Or do they? From the Bank of Japan minutes ago (via Reuters): BOJ eases policy with modest increase in ETF buying The Bank of Japan expanded monetary stimulus on Friday through a modest increase in purchases of exchange-traded funds (ETF), yielding to pressure from the government and financial markets for bolder action to spur growth and accelerate inflation towards its 2…


There Has Been a Disturbance in the Force or Yen-Dollar Actually

by John Galt July 26, 2016 04:55 ET While equities continue to perform the high wire act like a cocaine laden airplane flying around with the pilot using his cargo, Forex markets continue to occasionally flash warning signs that may indeed intensify with all of the major central bank activity happening this week. This morning there was a disturbance in the force: This either indicates an expected lack of action by the Fed possibly, which is logical, worse an inept course of action by the Bank of Japan or something much…


07.22 AAPL and GS Bellwether Update: 200 DMA too Much to Handle

by John Galt July 24, 2016 16:30 ET The market again continued to roll to new all time highs but don’t listen to me, the crazy people have officially taken over the asylum. No volume, no conviction, and the world is going nuts. Think about this; the last time we saw market moves like this happened in 2007, 2008, and shockingly 2015. There could be a signal from the action in the bellwethers this week or not however. The markets are sending numerous warning signs about liquidity, especially in the credit…


The Mogambo Guru Returns: The Law Of Cosmic Imperative

Thankfully, after a brief absence, the brilliance of the Mogambo Guru is writing again. The insanity of our world and markets should generate some awesome commentary from the Guru in the months ahead.-JG The Law Of Cosmic Imperative July 20, 2016 By: The Mogambo Guru Where have I been? I admit I was cowering, like the spineless little weasel that I am, in the Mogambo Secret Temporary Bunker (MSTB), which I cleverly constructed in the living room using an overturned couch and some strategically-placed cushions. That’s where I got an email…


Hillary Clinton has Another Reason to Hate Obama

by John Galt July 19, 2016 20:45 ET Poor Hillary. Okay, I’m joking and right about now the 5 Clintonistas that read my blog on a daily basis are probably blathering about what kind of hate I’m about to spew about their witch, er, candidate. Unfortunately, for them, this is an observation on the gift that keeps on giving: the manipulated fraudulent Obama economy. After eight years of manufactured and at best fictional economic data the Clinton campaign should be worried about what is about to hit. Besides, as she says…


If China’s Big Mama’s are Buying Precious Metals, Why Aren’t YOU?

by John Galt July 17, 2016 21:45 ET The “Big Mothers” in China are buying gold in much larger quantities because they expect global instability and currency rate disruptions No, no, no, not that Big Mama, more like the women shopping here: The truth is astonishing as this story tonight from the South China Morning Post reveals: Hong Kong hits the jackpot as mainland China’s ‘Big mothers’ hoard gold amid troubled times Excerpt: Chinese customs data released last week showed imports from Hong Kong to the mainland increased in May mainly…


July 13th Bellwether Update: Swimming in Sand

by John Galt July 13, 2016 05:15 ET Wooo, it’s time to party again!!! Break out the Dow 10K hats, brush them off, put a piece of white tape over them and write Dow 20K on there because that’s where we are heading. Or not. Being the contrarian that I am, I look for patterns which remind me of historical events or eras where the markets and human behavior attempt to replicate past events so as to create something new, or larger. However, since this is the first time in world…


British Government Blocked U.S. from Pressing Money Laundering Charges against HSBC

by John Galt July 11, 2016 17:55 ET Just when one thinks crime does pay after the Hillary Clinton fiasco and blatant corruption illustrated within our F.B.I. and Department of Justice, along comes this blockbuster story from the United Kingdom via the UK Guardian tonight: HSBC escaped US money-laundering charges after UK intervention How bad was the corruption to prevent actual prosecution? Check out this excerpt from the article which would make US banksters blush: The US government decided not to pursue criminal charges against HSBC for allowing terrorists and drug…


Meet the Swaption Another $25 Trillion Time Bomb

by John Galt July 11, 2016 00:15 ET Wow. Another all time high in the S&P 500, just like 2007: In June of 2007, the S&P 500 hit an all time high price even as Bear Stearns was bailing out two major hedge funds which imploded due to the real estate crisis and complex derivative investment instruments (via the Wall Street Journal in 2007): Two Big Funds At Bear Stearns Face Shutdown Two big hedge funds at Bear Stearns Cos. were close to being shut down last night as a rescue…


The Bail-In Bankster Model of Cyprus Results: Cyprus Stock Market down 99.2%

by John Galt July 8, 2016 23:00 ET On January 1, 2016 the new bail-in rules became the rule of law for the member states of the European Union. Hugo Dixon penned a column for Reuters on January 4th which revealed how tough the terms were for the bail-in protocol (excerpted): The European Union entered a brave new world of bank “bail-ins” at the start of 2016. Europe has wasted so much taxpayers’ money on bailing out bust banks in recent years that it is right to try to get investors…


Deutsche Bank Implodes to New Record Low Prices in Europe

by John Galt July 6, 2016 05:30 ET Whatever caused the snap, kerplunk, or “BOOM” at 04:30 ET this morning, it has continued with Deutsche Bank deteriorating rapidly now down over 5% in European trading: Whatever is happening, it has driven the German 10 Year Bund to a record -0.20% and the US 10 Year Treasury yield to new record lows close to 1.320%! Somewhere the smart money knows there is a major shoe about to drop, be it Italy, the United States, or Asia and they understand that it will…


The Shellacking Continues as Britain is Just the Tip of the Real Estate Iceberg

by John Galt July 5, 2016 20:50 ET The absolutely bull whipping of investors in foreign real estate continued today as 2 more property funds in the United Kingdom froze redemptions after Standard Life started the ball rolling on July 4th. M&G became the third company to shut down redemptions from its property fund as it stated (via Bloomberg): “Investor redemptions in the fund have risen markedly because of the high levels of uncertainty in the U.K. commercial property market since the outcome of the European Union referendum. Redemptions have now…


The Smart Money is Betting on More Economic Pain Today

by John Galt July 5, 2016 05:15 ET The smart money, as I warned about last week, is ignoring the so-called low volume rally and fleeing to safety. Need proof? Check these two charts out: If the US 10 Year breaks below the 1.35% yield, odds are it will fly down to 1.25% then on to a flat 1% yield. Regardless of what the bubbleheads say on financial television this will be a massive shift of billions of dollars out of potential investment pools for equities which will further squeeze a…


Brexit is the Bear Stearns/Lehman Bros. Moment

by John Galt July 4, 2016 17:40 ET The United States equity and bond markets resume trading on Tuesday July 5th, but whoa be it for those who are unprepared. Tonight the breaking news in the English media indicates that Brexit is not only a Bear Stearns v2.0 Moment as ZeroHedge puts it, but in fact could be a lot worse. The details have made it to the front pages of the U.K. press, starting with the Guardian: Standard Life shuts property fund amid rush of Brexit withdrawals Excerpted: Investors in…


Stock Market Bellwether Update: Going Nowhere Fast

by John Galt July 4, 2016 13:30 ET As America celebrates our 240th birthday and the central banksters of the world celebrate their short squeeze rally of the past five sessions, the truth about where this stock market is somewhat murky. I listen to many of the stock market “call in” radio shows not for advice; but to gauge the sentiment of the sheeple, those poor, stupid suckers who held on to Bear Stearns, Washington Mutual, and General Motors because some “broker” on the radio told an old lady that they…


Ignore Today’s Stock Market, Watch the Smart Money

by John Galt June 28, 2016 21:30 ET Poindexter and the rest of the nerds are trying to send you a message. Can you hear them? Maybe this will help: The oversold market finally had a dead cat bounce. Why does anyone with a brain call it that? Look at the volume last Friday: Today’s “rally” was not even close to the panic selling levels nor yesterday’s volume totals. So what indicators are telling the truth about the equity markets? The smart money; which does it every time during every crash…


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