FEDERAL RESERVE

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…


The Unofficial Presidential Debate Drinking Game: Porn King vs. Murderess

by John Galt October 9, 2016 17:00 ET Just when you think the Presidential race of 2016 couldn’t sink any lower, well, BOOM! There ya go. In the RED Corner we have the Perverted Purveyor of Pussy Policital Pontification, Donald “Grab ’em Where it Counts” Trump. In the BLUE Corner we have the Killer of Chappaqua, the Queen of Mean, the Butcher of Benghazi, the one, the only, Hillary “You’ll like me or I’ll kill you” Clinton. Bill Clinton will not be in attendance tonight as he wants to find some…


The Unofficial 2016 1st Presidential Debate Drinking Game Rules: Bullfest 2016

by John Galt September 26, 2016 17:00 ET Yup, the theme tonight is “don’t say facts, say bull!” Here is the Fox News live video link for the program tonight: Welcome to Bullfest 2016, America’s every 4 year fertilizer spreading festival known as the Presidential Debates. In the Blue corner, we have the nastiest woman alive, willing to kill soldiers, lawyers, and interns to stay in power regardless of how much bonking her husband engages in and regardless if they are of legal age or not. Her qualifications are that she…


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…


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…



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…


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…


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…


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…


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 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…


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…


06.24 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…


06.23 BREXIT Updates: The End of Great Britain, the Start of French Britain

by John Galt June 23, 2018 18:00 ET I remember reflecting on history at one time where I said if the United Kingdom ever succumbs to the evil lure of globalism and refuses to act proud and independent, then the Western world may well be lost. It would appear, barring a miracle, that the news will reflect a victory for “remain” and the British empire which was once a proud lion, will instead join the world community of cowardly lions which submit to every whim of the global banking syndicates. Of…



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…



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…


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…


Didn’t Sell in May? Perhaps you Should Have

by John Galt May 31, 2016 05:00 ET As the “sell in May and go away” meme is now officially dead thanks to a Fed pump, dump, and hump the market back towards new highs on low volume, one must ask if the smart money knew what they were doing as they sold into every major rally to rid their portfolios of large blocks of stocks that are not participating in this so-called economic miracle rally promoted by the financial media. Two things however stood out to this blogger in May…


Gold is Poised for a Major Breakout This Week

By John Galt May 8, 2016 08:30 ET After weeks of consolidation, the breakout and weekly close above the key $1280 support level on a weekly basis indicates that monetary stresses in Asia, Europe, and North America are becoming more severe and that this new move in gold as a flight to safety is indeed being validated with each leg up. The weekly chart also confirms the volume supporting this move and as illustrated in the daily chart below, despite attempts to sell the monetary metal below support, there are enough…


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…


Warren Buffett Sees Derivatives as a Potential “Time Bomb” for Financial Markets

by John Galt May 1, 2016 22:40 ET Weird. CNBC did not report on this subject on their web page. Marketwatch did not make a big deal about this story either: The Financial Times of London, Wall Street Journal, Bloomberg, hell, even that rag the New York Times Business section do not even have this headline: Buffett sees derivatives as potential “time bomb” in financial markets So my American readers can thank the Communist Chinese government’s semi-official official propaganda outlet, Xinhua?!?!?! Yup: OMAHA, Nebraska, April 30 (Xinhua) — Warren Buffett, Berkshire…


$1294.90

by John Galt May 1, 2016 19:05 ET Gold closed on Friday with a price of $1294.90. Why is that significant? Because it should alert any sane person that a long term trend line has been broken but more importantly, the three month consolidation and base building period is now over. First a little chartistic charsima courtesy of gold: Way, way, back when Jim Cramer was telling us it was still safe to own Bear Stearns, the precious metals markets experienced a similar consolidation and decline following a rally above $600…


04.27 23:05 ET: Bank of Japan Screws Yellen, TAKES NO ACTION!

by John Galt April 27, 2016 23:05 ET Japan has elected to maintain its current levels of funding with rates and stimulus unchanged. Kuroda basically just told Janet Yellen to go fawk herself. The Japanese Yen just soared against the U.S. Dollar on the announcement (screenshot via BloombergTV): The candlestick on the 1 minute chart via NetDania was even more impressive: Meanwhile in the U.S., S&P and Dow futures, well, shit the bed on the announcement: Everyone knew something was up when Kuroda delayed the announcement but to see this type…


The Fed Goes Full Retard Leaving Investors Totally Befuddled

by John Galt April 27, 2016 22:30 ET James Grant summed up today’s FOMC meeting better than any other talking head today (via Bloomberg-TV): “They remind me in the aggregate of the most novice of novice retail investors” That actually sums up the Federal Reserve Open Market Committee quite nicely. What did they say today to trigger this response? From the Federal Reserve website: Press Release Release Date: April 27, 2016 For release at 2:00 p.m. EDT Information received since the Federal Open Market Committee met in March indicates that labor…


04.18 0500 Market Update: Cue the Pump Monkeys, OPEC panic Fading

by John Galt April 18, 2016 05:00 ET Last night’s Asian session was interesting as the Japanese earthquakes and OPEC disaster in Doha provided the deflationary double whammy which scared investors out of Tokyo and Shanghai with sizable drops in those markets(charts via YahooFinance): With a 3.4% drop that was pretty nasty. Shanghai was down 1.44%: Meanwhile, US equity futures have recovered substantially since last night’s initial fall as the central bankers began intervening when Europe opened:   With Europe beginning to recover and crude oil prices pausing in their declines…



The Federal Reserve is Being Held Hostage by China

by John Galt March 17, 2015 05:15 ET Please not the following from the Federal Reserve’s FOMC statement: Information received since the Federal Open Market Committee met in January suggests that economic activity has been expanding at a moderate pace despite the global economic and financial developments of recent months. Household spending has been increasing at a moderate rate, and the housing sector has improved further; however, business fixed investment and net exports have been soft. A range of recent indicators, including strong job gains, points to additional strengthening of the…


Happy Leap Year Day Spooky Video Courtesy of a Major Hedge Fund

by John Galt February 29 2016 17:20 ET Remember this scene from the movie Margin Call? Perhaps if you are not familiar with the movie, you should be. Because the bank it was roughly based on does exist and was bailed out by the U.S. taxpayer, gambled on and won on a Federal Reserve and U.S. Government funded phony recovery, and worse, now is impervious as it is THE bank that it is too big to fail. Why is this relevant today when employment is allegedly booming, the economy growing at…


RED ALERT: S&P 500 Action Today means Assume the Crash Position!

by John Galt February 23, 2016 22:15 ET So how bad has the past week’s action been in equities? Even Apple can’t get it’s app up! The first warning sign of what we are about to endure was issued back in August of 2015, but the financial MSM gave cover to leading stocks like AAPL because they HAD to maintain the illusion of economic expansion and the bull market would continue for political reasons. A total economic implosion or recession is bad for business and the big money needed time to…


02.11 U.S. MARKETWATCH: It’s going to be a Bloodbath if S&P 1780 Does not Hold

by John Galt February 11, 2016 05:30 ET With each new day, a new crisis in deflationary acceleration occurs and thus markets retreat closer and closer to danger levels which could trigger massive crashes. Today’s headlines are no different: Swedish national bank, the Riksbank cuts rates FURTHER into negative interest rate territory from -0.35% to -0.50% The Japanese Yen has risen further against the USD now down over 400 pips to 111 since last night Gold is up over $20 as everyone appears to be abandoning fiat currencies and returning to…


There is no Dead Cat Bear Bounce of Consequence Forthcoming

by John Galt February 8, 2016 21:30 ET The financial media and prime time stock pumpers will try to deceive everyone into thinking that again, one more time,  that this is nothing more than a corrective phase in the midst of a long term bull market rally. Woe unto the fool who buys that nonsense. Instead of chart after chart illustrating how bad the action has been in the past 40 days, here is a great summary via CNBC’s resident guest technician about trend violations on Friday February 5th’s Option Actions…


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