This piece is more of a philosophical musing but given the current ominous technical set up on the stock charts I think you will understand what I am trying to say and I will be brief. While watching The Big Short on New Years Weekend I had an epiphany at the end of the movie. The movie brought back a lot of painful memories but what struck me was that all the controlled fraud by the top echelon of our elite banking system went unpunished and was put onto the balance sheets of the sovereigns. The debt did not go away and all the bad Karma associated with those acts have been left to fester and grow. Since 2009 our institutions are rife with corruption. The manifestation of Trump and Sanders are evidence that the average person is absolutely fed up. The economy is not anywhere near the statistics presented to us. They are lies and a con. My thesis is that the controlled fraud of the banks has morphed into global sovereign fraud as the debt has become mathematically impossible to service. Europe is falling apart, the Mideast is in flames and the US is on the verge of massive civil disturbances. Behind the curtain is a disaster and I am convinced they know they can’t hold it together much longer with all this paper mache printing.
The current chart of the S&P tells me that really bad news is on the horizon. I have no idea what that news is but it will be bad. I believe in Karma and we are overdue for some bad Karma. Remember not one high level executive went to jail. That will haunt this nation.
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Buy Gold ?
I’d say physical gold… shotgun… & canned food
The current bubble is globalization and it will be popped with nationalism.
Good post Blue. With the coming end of cash, they will be able to tax us at will.
the sweetest part is the CB’s of corruption have created the fertile grounds of nationalism, or whatever, they’ve been Trumped and euchred, America’s Blood Meridian is just beginning.
http://www.goodreads.com/book/show/394535.Blood_Meridian_or_the_Evening_Redness_in_the_West
I just saw The Big Short last night. So if I short a stock that went bankrupt, can I close my position? Can my brokerage make the market?
Fifty, if that happens, you are golden. You don’t have to repay anyone the non existent shares.
Sovereigns default and civil disturbances in America –
Fuck me time.
Fifty, shares still exist for a long time after bankruptcy. The shares are just worth almost nothing as the holders are the last in line for any liquidations.
Also blue, is it just me or do you think the CBs will try to soft land this for a while. I feel like the plan is to let the market crater 5-10% over a short time and then walk it back up through news, pomo, etc. I can’t see a crash until defaults start to build up.
@narwhal and ben, thanks! Right, the bagholding shareholders will be happy to have me buy their shares 1 cent to the dollar, as long as there is a broker.
As Fly pointed out, CAT is up 30% or so. Are the buyers the general public or the Fed/ppt/whatever? Some of the buying is due to buybacks. wrt the rest, I have no evidence but believe the rest is the latter. This is an illusion, a dead CAT rally.
Welcome to the Grand Illusion
song https://www.youtube.com/watch?v=ZW8TlrYhBxk
“The illusion of (a recovery) freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.”
― Frank Zappa
Bluestar: How long do you think Ackman can stay in VRX?
Silly question:
As an investor, if I am not long or short Valeant, does it have any effect on the overall market?
If not, why should I care if Ackman soars or crashes?
anecdotal: I didn’t ask you. But since you chimed in, I’d like to point out that your first statement doesn’t make any sense the way it is written.
Helicopter ben,
a series of mini crashes. yes that is what appears to be happening.
pb,
Ackman has an ego problem that on this stock may be terminal.