depression

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…


Despite Saudi and Russian Bluff, Oil Supply is Still Overwhelming Price

by John Galt October 10, 2016 19:45 ET Despite the recent recovery in oil prices back above $50 per bbl (Brent chart courtesy of NetDania): The problem however is that oil supply is not reflected by the price. The latest results from the International Energy Agency (IEA) through the 2nd quarter of this year shows little if any evidence of a draw down in supply: Then tonight this fascinating story tonight from the UK Express: Something very odd is being hidden in the middle of the Atlantic ocean and Gulf of…


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.


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…


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…


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…


George Soros Apparently Wants Unlimited Terrorist Migration from the Middle East

by John Galt August 14, 2016 20:45 ET A little known organization called DC Leaks which apparently has access to the hacker community has published reams of documents from George Soros’ Open Society Foundations and other so called NGO (Non-Government Organizations) which he and his associates have used to influence elections, foreign policy, and in some cases apparently open revolution and conflict. One of the more stunning revelations comes from an August 16, 2015 document which highlighted global opportunities around the world; one of which is pretty black and white for…


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…


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…


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…


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…


06.27 Market Deathburger: The EuroCarnage Continues after Brexit

by John Galt June 26, 2 016 15:30 ET I shall keep this as a running update as trading and markets open. Needless to say, currency markets in Asia have opened and the carnage continues unabated so look for Bank of Japan and Swiss intervention soon enough. 05:00 ET – While equity futures are not indicating panic, the bond market is screaming a move into safety. This could be another long day and the key level to watch on the S&P 500 is 2020 as a violation of that figure at…


Spainaggedon Election: Pro-EU Mainstream Parties INCREASE Seats but no Clear Majority

by John Galt June 26, 2016 08:30 ET Sometimes the bull gets you, sometimes you get to sprinkle some A-1 Steak Sauce on him when he’s medium rare. Today we find out if Spanish voters are inspired by the Brexit vote to take a strong stand against the European Union’s insane bankster inspired austerity programs which are running in parallel to the banking bailout which has done nothing to help the average Spanish citizen to improve their standard of living in over a decade. Sound familiar? I shall try to keep…


Middle East Markets Hit Hard but Stabilized on Sunday after Brexit Vote

by John Galt June 26, 2016 11:00 ET The running theme in equity markets around the world has been to panic, sell, and pray for some sort of government intervention. In the Middle East that is no different except the intervention must come from the monarchies not from central banksters and indeed that is what happened throughout the Gulf Cooperation Council (GCC) nations today. The interesting pattern in all the charts is massive selling on the open and some recovery towards the close however in those nations where the royal families…


Today’s Market Action was Ugly but not the Big One

by John Galt June 24, 2016 20:15 ET With much respect to the Sex Pistols for creating this song just for events like today: But this wasn’t the big market crash that the bears or for that matter, the bulls, had hoped to get out of the way. The NYSE volume was 10:1 + to the downside, but not the NASDAQ VOLUME nor the advance/declines (data via WSJ.com): Meanwhile the bellwethers are signaling trouble ahead. In honor of Brexit let us just say they are sinking like the old Great Britain…


06.24 US MARKET DEATHBURGER: Black Friday Brexit Burgers Now Being Served

by John Galt June 24, 2016 02:00 ET I have never been so happy to be so wrong in all my life. I honest to God did not think my limey crazy assed brethren had the jewels to vote for Brexit, but they did. If TPTB do not stop them through a technicality or loophole in the Parliament, then this move is nothing more than a vindication of the insanity we are witnessing in American politics where an unconvicted felon is allowed to run against a reality TV show millionaire/billionaire. Thus…



Monday was NOT a Good Day for the Stock Market

by John Galt June 21, 2016 05:00 ET The stock market on Monday was a lot like the Trump campaign; it looked good from the outside but when you lifted the hood it was a complete and total wreck. Yesterday was a complete and total technical disaster. Huge rally on light volume, selling into each hourly rally, then failing to close anywhere near the highs with selling into the close. This morning futures are up but once the gap is filled in the 2091-2097 range look for more selling as anyone…


Bellwether Weekly Update: AAPL & GS Clank Again this Past Week

by John Galt June 19, 2016 21:30 ET   So another week and another warning from my bellwether stocks, Apple and Goldman Sachs. There is no serious middle class consumer demand and there appears to be no desire to invest in further expansion of companies unless it is to use cash on the balance sheet to buy smaller companies like Microsoft did with LinkedIn. Thus based on futures tonight we might get a dead iPhone bounce or maybe even a better dead Bankster bounce from Goldman but in the end, the…


MSCI will NOT Include China A-Shares in Emerging Market Index

by John Galt June 14, 2016 17:14 ET WOW! This will not help the Shanghai markets tonight and probably will cause massive tankage in Hong Kong also. Via CNBC: Key MSCI emerging markets index rejects Chinese mainland stocks, again MSCI on Tuesday said it would delay inclusion of the mainland-traded Chinese A shares in its key emerging market index. In a release, MSCI said investors needed more time to assess the effectiveness of the Qualified Foreign Institutional Investor program (QFII) investment quota allocation, capital mobility policy changes and the effectiveness of…


German 10 Yr Bund Yield Goes Negative for First Time in History

by John Galt June 14, 2016 04:50 ET Just when anyone in the investing world thought it couldn’t get any more nuts than it has been, German government bonds send the most alarming signal ever with their 10 year Bund yield dropping into negative territory for the first time in history: Meanwhile, US 10 Year Treasuries are now have a yield with a 1.5 handle this morning: If the US 10 year breaks below 1.50% that usually correlates with a stock market some 10-15% below current levels. This really ties the…



Ambrose Evans-Pritchard: Why I am voting to leave the EU

by John Galt June 12, 2016 20:10 ET In what can only be called a stunning editorial in tonight’s edition of the UK Telegraph, Ambrose Evans-Pritchard hammers it home with a stunning rebuke of the pro-European Union forces inside the United Kingdom with this editorial: Brexit vote is about the supremacy of Parliament and nothing else: Why I am voting to leave the EU Holy smokes! This is somewhat earth shattering as the conventional economic thought inside England was to remain and muddle through with a partnership both with France and…


Market Trouble Ahead as the Bellwethers Break

by John Galt June 12, 2016 19:40 ET I’m going to keep this short, simple, but loaded with graphs so everyone can see what happened last week to the 2 bellwether stocks in the equities markets, Apple, Inc. and Goldman Sachs. Why I have tagged those two issues is irrelevant; I just advise everyone to remember 2007-2009 when General Motors and IBM were the bellwethers and what happened to the markets after they broke down. Both of these stocks are widely held, usually reliable leaders in bull markets and vice-versa, and…


China Drops a Silent Economic Bomb: Hints at Bankruptcy Rules for Financial Sector

by John Galt June 12, 2016 17:55 ET The one thing that foreign investors had always been able to count on with the People’s Bank of China (PBOC) and the Communist Party of China was that no matter how bad the conditions in their financial sector may get, the government and PBOC will always find away to restructure the debts or ensure the continued operation of the entities to avoid an outright default. Sunday, during the Lujiazui Forum in Shanghai, that theory was turned on its head. From the South China…


Greece Reminds Us: The PIIGS Crisis Is Not Dead

by John Galt June 2, 2016 20:45 ET While America slumbers in its own porkfest of Federal Reserve provided phony money, the European Union is attempting in a very desperate manner to bury the pork vampire from hell formerly known as the “PIIGS.” Unfortunately for Brussels, this fat little piggy just will not die. From the Greek newspaper, Ekathimerini: Greek bond yields climb Greek government bond yields rose on Thursday after the European Central Bank said it would take no decision on whether to reinstate a cheap funding lifeline to Athens…


It’s Not 2008, Don’t Worry, It’s Fine!

by John Galt June 1, 2016 21:30 ET The stock market is possibly poised to break out to new highs, just like it threatened to do in 2007. As the rest of the economy was in shambles, the hucksters in financial media and so-called stock advisors made a cottage industry on selling to willing pension funds, speculators, and individual investors the stocks of the very corporations and banks that they knew were already technically insolvent. Then came the Obama administration after the crash and he was presented with a deal by…


Today was a Tranny Kind of Day in the News

by John Galt May 12, 2016 18:20 ET I can not make all the bullshit that was in the news today: Caitlyn Jenner Experienced ‘Sex Change Regret,’ Might De-Transition, Biographer Says After all the idiocy, really? She/he/it (Sheit for short) might get the titties and ass implants removed? From the article above published by TheWrap: Ian Halperin, the author of “Kardashian Dynasty: The Controversial Rise of America’s Royal Family,” said that, while researching his book, multiple sources told him that the former Olympian had been miserable for months and has considered…


Why Democrats Secretly WANT Donald Trump to Become President in 2016

by John Galt May 8, 2016 13:40 ET In the past months of political nonsense, unfair, and irrational comparisons have been made of one Donald J. Trump to the rallies Adolph Hitler used to hold. While the visual aura of individuals raising their arms in an oath to a political figure seems horrifying to most Americans; but if one understands the entertainer that is Trump, one would know that this was for show, not for some devious purpose like the school children who were forced in 2009 to sing songs of…


China’s Caixin PMI Edges down to 49.4 in March

by John Galt May 2, 2016 22:25 ET The sugar coated version of tonight’s release came from the newspaper Shanghai Daily via Xinhua: Caixin China manufacturing PMI edges down to 49.4 From the somewhat softened release: The Caixin General China Manufacturing Purchasing Managers’ Index (PMI), an indicator of manufacturing activity, edged down to 49.4 in April, a private survey showed on Tuesday. The reading was fractionally down from 49.7 in March, signalling marginal deterioration in operating conditions, according to the survey conducted by financial information service provider Markit and sponsored by…


The Boricuan (Puerto Rico) Crisis Accelerates into Default with American Banksters

by John Galt May 2, 2016 21:40 ET John Oliver on HBO’s “Last Week Tonight” provides a nice summary  of what is happening on one of America’s remaining colonies: How bad is it? Here is this morning’s El Nuevo Dia newspaper front page from San Juan which should have rung alarm bells in Congress: The key headlines (roughly translated for those not fluent in Spanish): “We can NOT wait any longer” for relief from the Congress of the United States “Emigration has reached another record” (from the island) “Congress has to…


Another 20% Dollar Tree Inflationary Warning

by John Galt May 2, 2016 20:20 ET A little over a decade ago, I pointed out the hypocrisy of product size inflation in an old article about my Dollar Tree inflation indicator. I noted, of course simple things like 4 packs of batteries being changed to 3, 16 oz. of dry cereal being reduced to 12 oz., and candy bars being reduced from 6 oz. to microscopic specs of something wrapped in paper. Today, I encountered something amazing at the U.S. discount retailer the Dollar Tree which should alert everyone…


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