- I am posting what I read and write on Twitteer or Twyter or Twutter or Twitter or whatever. Plz read if you want to get some idea where I get my ideas. Hmmm … spell check recognizes ‘Twitter’ but not ‘spellcheck’. The Twitter bug is off to the right. My twitter name is ‘econundertow’. I only got 12 letters.
- Charles Hugh Smith picks up the thread of ‘Anger among the Honest. This does not have anything specific to do with the mortgage mess that is taking place right now. These are remarks of one of Smith’s correspondents:
I belong to a large number of finance organizations and sometimes I even assist clients with hiring a finance person. Since I have a lot of experience with finance and accounting, when I am interviewing these people I know when I am getting a BS answer and unlike most BS recruiters I do not steer away from controversy since I am truly looking for the most qualified for my clients and not who is just most marketable to them. After I start drilling down you would be amazed (or maybe you wouldn’t) how many of these CFO’s and Controller types were basically dismissed because they would not cook the books in some manner.
Mr. ‘X’ speaks to corporate shenanigans … okay, let’s talk mortgages! The upshot is it doesn’t require a math degree to put a wedgie into finance, just an ad- hoc debt moratorium by enough aggravated people. It’s already a rumor on the ‘net. It’s a real black swan. I don’t see the commentariat bringing it up.
- Another crisis risk is the breakdown of the political system in Washington. The ‘Leader of the Free World’ is about to be overrun by ass- hattery. Welcome to the Tea Party where the first order of business is to shut down the government! How do you spell ‘Black Swan’? D.E.F.A.U.L,T. I predict the US will default on its debt next year when the Tea Partiers refuse to pass a budget resolution. All matters of hell will then break lose including a punishing rise in interest rates. Ponzi schemes always end badly and this one will, courtesy of nostalgia for white picket fences. What a world!
- Mike ‘Mish’ Shedlock takes an axe to the Fed. It’s worth reading just for the invective. It’s not just Shedlock, but most sensible commentators are bludgeoning Bernanke. Give the Bernake a break! He has no choice! If the Fed doesn’t monetize increases in REAL rates (we are in deflation) will kill the US Treasury. If he monetizes he buys a couple more years.. I’ve been giving the subject a lot of space (because it’s entertainment). and I feel like I’ve covered most of the angles. I know there are more out there, angles that is What happens next? The markets have pretty much priced in Fed easing. Keep in mind, whatever the Fed does is irrelevant. The Fed cannot print value, energy or jobs. We need these more than the Fed needs more IOUs in its vaults.
- The oil market looks to roll over. $84 oil is very pricey. Too pricey for anemic demand. Speculators buy with intent to sell at some point in the future for a profit. Profit, what’s that? Futures speculators in crude are likely to get hammered. This is a market call, look to short the S&P 500 futures if crude breaks below $80. This is a warning for gold speculators. At some point you have to sell! These days, bubbles are smaller and market moves more minuscule. Oil doesn’t look to reach the June highs of $87. The days of grand offensives are over, the world is basically broke, even if Indians stupidly spent money to buy 200,000 cars last month. Indians can afford the cars but cannot afford roads. It’s always something …
- If you haven’t already please subscribe to the Master Resource Report. It’s easy: email jimhansen@kmsfinancial.com and put ‘Subscribe’ on the subject line. Every week Jim sends an action- packed overview of the energy situation to your mailbox. The analysis is first rate, too!
- My brother died the day before yesterday. He was a tough person to be a brother to but I miss him already. RIP Matthew. He was 57.