iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,429 Blog Posts

The Wind is Blowing Decidedly From the East

No one is really talking about the Chinese cash crunch. But it’s starting to annoy me and I figured you should share in my source of annoyance.

Here’s why this story, which is entirely real and legitimate, annoys the fuck out of me. We all know the crazy chinamen have been building modern day pyramids (ghost cities) for the past decade, hoarding basic resources like stark raving lunatics, in order to avoid riots and things of that nature. The chinese brand of communism, which was ushered in many years ago under the banner of equality and fairness, has failed. The country is filled with rich fuckers who control the serfs, working at FOXCONN slave factories, making iPhones for western gluttons.

Anyway, this news should jar markets. It should dislocate credit markets and cause a serious crisis. But it won’t because everything is fake. I mean, they’re just trying to lure you into a false sense of panic, just so they can drop the “dick-guillotine” on your cylinder whenever you “sack up” to get short (puns intended). I will not be suckered into this “crisis” because by the time it materializes, the market will be on its way to 20,000.

I love the market because it gives me money. But I hate the market because it no longer abides by the rules. I am sure many of you feel the same. This is the new normal. It’s going to take a lot of re-programming to get the old school to fall in line. Truth be told, young and ignorant investors will do great in this sort of tape. They lack morals and intelligence by lack of wisdom and can invest freely, without fear or reason. It’s never the old man who banks coin in roaring bull markets. It’s the guy speed chopping carrots, with his balls on the table, who shits on everyone else.

Having said that, I’m gonna buy stocks tomorrow based on a real chinese cash crunch because “The Costanza Trade” is the only trade worth taking these days (whips cane into the face of old man in wheeled chair).

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20 comments

  1. L.K.W.

    Brrrrr. As I was saying: chain stores like Whole Foods, inc, rely on international produce suppliers instead of local farmers based on the product they sell and the national organization of their business. Even the conventional stores ship organic (and standard) fruits from Chile, for an example, and many other countries; spewing non-organic fumes in transportation, the packaging is obscene, god-knows how many preservatives it takes to give milk a 3-month sell-by date as it travels across the land, and this is all vetted by a “Whole Foods” or standard organic label?

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    • The Fly

      Wow, that’s just a flat out lie, not even remotely near the truth.

      I am sure you’ve never been to a whole foods because their whole theme is locally produced organic food.

      Dipshit.

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      • Ken

        Yes, that’s true as we do trade shows and the local WFM come in and shop. They buy all kinds of local products not just produce.

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      • L.K.W.

        That was a few years back, the focus on local you’re describing. By now they’re the Walmart of organic, expanding business in a politically-friendly market, with the bulk of their over-packaged, preservative-laden foods by nationals or multinationals.. I had the pleasure of shopping at an actual WholeFoods in Laguna Beach about two months ago and learning the sad turn it had taken away from its core values as a food retailer.

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        • Raul3

          They can get their produce from local producers or “warehouse”. If the cost is lower in warehouse, these good come into the store. Warehouse is beast, and gets fulfillment by any means possible (read Colombia and shit).

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    • Heaterman

      Ever hear or this process for preserving milk, yogurt etc.?

      http://en.wikipedia.org/wiki/Ultra-high-temperature_processing

      More common than you think along with its twin HTST sterilization.

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  2. xxxHuggieBearxxx

    In a Constanza market, the Costanza trade is the only thing that works. Or is it? It the anti-costanza trade actually the thing to do in a Costanza market? Ah, sheeesh…i don’t know.

    I haven’t made a trade in a couple of weeks now, which is nearly a 7 year record. If i were up 30% on the year, sure, i would take a swing…but i’m not, and nothing seems even remotely safe. In some ways, it feels as though they’ve killed the market. Oil says we’re going lower, but ben says we’re going higher.

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    • Frog

      Oil can go lower while the rest of the market rises. Ben would like that, so maybe he can find a way to get it going.

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  3. asteroids

    Fly, don’t stress yourself. I married off my oldest daughter on the weekend. Like a gentleman I literally showered her with money. Knowing only that we live better than 99% of plebs through study, hard work, and strength of will.

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  4. republicat

    I wonder if this Foxconn riot could snowball into nationwide protests, unrest, troops ~
    A Tienanmen Square of Technology

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  5. theedge111

    Very well done. This might be the most intelligent post you have ever written.

    Couldn’t agree more.

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  6. moolahheaven

    Up is down, right is wrong, good is evil and evil is good the days – no wonder through this administration even the equity markets have been distorted as well.I believe you’re right on target here, ‘Costanza’ is definitely the theme in 2012…

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  7. BottleRocket

    “I love the market because it gives me money. But I hate the market because it no longer abides by the rules.”

    Nothing wrong with making money with an irrational and flawed market but nobody can deny that unhealthy markets eventually collapse. When this one does, it will be brutal.

    The Chinese are godless people and treat each other accordingly. Wait until they have their Asian Winter. The Yangtze will flow red for months.

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  8. Trading_Nymph

    Oct 2008..China went on Vacation for National Day and we went timber. Very true about dumb money being kings in this market. Please wake me up when we are back down to SPX 1100.

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  9. Donkey Arbitrageur
    Donkey Arbitrageur

    This is an excellent post, and how I’ve felt about things since last August, when the EZ crisis hit a fever pitch, and the downside was limited 1100…

    Costanza market is a great term for what’s going on, I also think that the market is like Dorian Gray… superficially beautiful while internals rot… and the portrait is hiding in Bernanke’s office.

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  10. ruggyup

    In this world of no rules the high-risk harsh environment deep-water drillers will set new rules: John Fredriksen>
    Norway shipping magnate says energy companies face growing rig shortage
    “The new ordering has been evaluated up against several M&A and asset proposals but the board has concluded that organic growth through contracting new builds at attractive prices is likely to give higher long-term return to shareholders,”

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