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
23,432 Blog Posts

I AM BILL MILLER

I’m just going along for the ride here, albeit my “seat” is strapped to the bottom of a pick up truck–face down. Let’s hope to avoid any road bumps, shall we?

Germany is rather adamant about not giving a fuck about Spain and Italy. I am only hating on Germany now because it suits my book. If I was net short, I’d be praising them. I’m fucked up like that.

This is all you need to monitor from now until death:

Italian 10 yr

Spanish 10 yr

France 10 yr

As an aside, keep your eyes on this shit too:

Hungary

Czech

Poland

Belgium (BLOWING THE FUCK OUT)

Austria

Did you know Saudi Arabia was 87% debt/GDP back in 2000? Since 9/11, they got uber rich off the greatest transfer of wealth in the history of mankind, allowing them to pay it down to just 10%. On the other hand, western nations are all bloated pigs, even Germany, even Canada. Countries like Nigeria are thriving, as we suck dick. Our President seems to believe we need more solar panels and wind farms. As he lies to you, America continues to transfer wealth to the camel fuckers in the middle east.

Looking over potential buys, I can only come to grips with gold and silver, once again. The policy makers are adamant about extending the lunacy. Right now the play is deflation. However, if we ever get a bounce, ever, I sense gold and silver miners will be the best plays in the market.

Moving on to NFLX. This company can file for bankruptcy if the ship doesn’t turn around soon. The $400 million raised today is dilutive and the terms are onerous. Their cost to run the business is ridiculous and they no longer have access to the bond markets. I would steer clear of this one–scary.

Bottom line: I am Bill Miller, purposely ignoring reality in exchange for fantasy land.

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Prepare For the Dark Ages

After the European banking system undergoes a comical $10 trillion write-down, all deposits will be wiped out. The contagion will spread to the United Steaks, effectively cutting off the municipal bond markets, bankrupting retarded ghetto cities, like Detroit and Cleveland.

All of Europe’s big banks will fold like cheap tents, carrying their markets down another 75% from current levels. Financing will be eliminated, which in turn will result in the bankruptcy of any company who depends on short term lending to finance day to day operations. Due to pension fund liabilities, small outfits like Lucent and General Electric will be wiped the fuck out.

Wait, it gets better.

We’re gonna finish where we left off in 2008, with shipping rates plunging by 99%. Counter party risk will be too tenuous to deliver goods. As a result, your local grocery stores and shopping mall will be wiped clean. You will have to resort to the ancient practice of cannibalism, in order to survive the barren winter months.

No matter how rich you are, your mortgage will default, unless you have cash tucked away in a vault. See after the great $10 trillion write down in Europe, $100 trillion in US derivative risk will be triggered, wiping out all of the money ever known to mankind. Every bank and brokerage firm in the Northern Hemisphere will be shuttered.

Banks will try to evict you just to procure the raw materials inside of your home. You will literally need to shoot the marshall from seizing your property, else end up homeless in the streets, where the police serve as warlords for local tribes– enslaving people to farm the streets of Manhattan.

The United Steaks government will collapse, set off by a tidal wave of secessions from southern psychopaths.

In the meantime, German inflation will be firmly under control.

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Feel My Rage

I lost so much money today I can’t feel my fucking face and my eyes are bleeding. All day I had to deal with the absurdity of being right about the market going down, yet long stocks. Not only am I long stocks, I am heavily weighted toward precious metals, the very bane of this cocksucking market.

Don’t go there. Don’t step onto the stage claiming you saw this coming and timed your shorts perfectly. You same clowns got Ape-Raped three weeks ago and you will be violated again, and soon.

Let’s cut to the chase. I sold out of my aggressive-personal account because I’m about to throw a Hail Mary. Into this sell off extravaganza, I intend to take a long bet through options–all or none. For managed accounts, I sold out of that bitch of a whore OMX and USG. I might start buying WNR again down here, especially if crack spreads stabilize. Remember, WNR is 35% hedged @27. Cracks are now under $15. They stand to make a great deal of money on their hedges.

My wife handed me some crystal today. It’s supposed to make me feel better and make me lucky. I took that shit and turned it into dust. I will now snort that dust and see how lucky it makes me.

The rest of you financial bloggers out there talking shit can burn in hell, or 0hio, for all I care. Very few of you have skin in the game, managing bullshit “virtual funds”, making cow-eyed proclamations on CNBC. Speaking of cow eyes, Cramer is looking for every single bank in Europe to collapse, wiping out both equity and bondholders to the tune of (get this!) 10 fucking trillion. Yet, at the same time the dust bowls materialize in Brussels, THE SHARES OF MORGAN STANLEY ARE JUST FINE!

Let me warn you: there is no coming back from a 10 Trilly loss. That’s the sort of shit that wipes out ALL bank accounts, globally. Civilization as we know it would end. Your homosexual FAZ positions will be worthless when you have an ax wedged into the exact center of your skull.

 

http://www.youtube.com/watch?v=REQ5V2BNjz8

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THANKSGIVING DAY DINNER IS CANCELED

Dear Sir,

I regrettably inform you that  your dinner invitation to Le Casa del Fly has been revoked.  There will be no turkey legs served at the great manor on Thursday. Instead, we shall dine on hotdogs and sauerkraut, preparing for the troubling days and weeks ahead.

I hope you understand this to be a slight against your personhood. True enough, I never liked you much anyway. You drink too much wine and your breath smells of a sheep ass.

Good Day,

Fly

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NOTHING to Be Thankful For

I have no one to blame but myself, for being so naive as to believe Europe would fix their problems. I’ve always contended this was a problem that couldn’t be fixed. It’s too big and there is no political will. Now you have psychopath lunatics, like Cramer, sounding alarms, exclaiming total losses in EZ will total $10 fucking trillion.

Pardon the melancholy tone. Regrettably, I wasn’t all in VRUS calls like many of you. However, instead, I am long all of the shit that is going lower. I am long this shit with great certitude that it will kill me. I could very easily assuage my pain by liquidating down here and join the circus to become a fucking “cannon clown.” Or, I can extend my torture by waiting for the ultimate bag of shit to drop on my head. Right now only small bags of shit are dropping on me.

Shares of GS, MS and JEF are the only tells for this market. The CNBC folks are relishing in this “debt bomb” situation we find ourselves in. They chuckle and laugh at the plights of investors while declaring “net short positions.” They are rather comfortable in their smugness, clamoring for the EU to fall apart–drinking from the mugs of angst.

Our President is one giant dick-sucker, more concerned with taking trips to pineapple country than dealing with the fucktards inside of the super committee. In summary, I hate all of you, as well as inanimate objects, such as silver coins, computers and televisions.

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SUPER BASTARDS

Taking into consideration how tenuous markets have been thanks to the European crisis, it is even more unbelievable that our elected officials could not come to a consensus to cut spending over a decade. None of them deserve to be re-elected. I am making it a stated goal of mine to vote against all incumbents–republican and democrat. These bastards aren’t responsible stewards of this country. They are nothing more than whores, begging people for money to fund their re-elections.

With regards to this mornings tape: I cannot believe GILD paid so much for VRUS. They are out of their fucking minds.  Everything else is getting the broken elevator treatment. However, let me be emphatic about something right now: you bears are well deserving of a giant cock-smack to the face. I’ve perused the comments section of iBankCoin this morning and nearly vomited on my $4,000 laptop.  Shame on you people for not learning from history. You should know by now, when the DEVILDOGS of the world are out and about declaring winship, mobile de-cocking guillotines aren’t too far behind. How many times does Ben Bernanke have to circumcise you to get a little humility out of you?

Back to reality. TLT is north of $120. The deflation trade is back in vogue, as people “Do the Hugh” into Thanksgiving. This is not what I expected to happen. Then again, betting on inflation versus deflation is pretty much a coin toss these days. People don’t know what the fuck is going on. But I can tell you one damned thing for sure: governments don’t give a fuck about your paper currencies. The whole flight out of gold and silver, as harrowing as it is, will be a temporary phenomenon.

Botton line: your luck is soon to expire. Go drink a hot cup of Early Grey, come back to iBankCoin, and apologize for your behavior. Failure to do so will result in the removal of your mustaches, via my mustache removing drones.

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Dreading the Week Ahead

On Monday our congressional “super committee” will announce they are fucking idiots and cannot operate a government. Their task was to cut spending over a 10 year period in order to avoid being “the next Greece.” We aren’t in danger of becoming “the next Greece” until we have Japanese style debt/GDP numbers, in my opinion. Nonetheless, their failure to cut waste in government spending is just one more reason for you to stockpile guns and dry food.

Raising taxes in order to finance more government corruption is nonsensical. The people who tell you “rich people are getting a free ride” should fuck themselves. Last I checked, my quarterly estimated tax payments are more than most of those assholes annual salaries.

Moving on.

Europe is the joke that keeps delivering punchlines, accentuated by whimsical rim-shots. It befuddles me how this topic keeps dragging on. A few weeks ago it seemed the EFSF was the saving grace for all of the malcontents in Europe. Then Italian and Spanish yields blew out, causing alarm amongst those with short fuses. Remember, the ECB is interested in making money, not just saving their asses. It makes a lot of sense to allow Italian and Spanish bonds trade lower, in order to buy them up on the cheap. The problem with this strategy is the notion of contagion. People think this is getting out of control and have begun taking aim at France, due to French exposure to Italy. As a matter of fact, bonds yields across Europe, sans Germany, have been rising.

The ECB needs to decide on a definitive course of action. Either they unify under one banner and issue EU bonds or dissolve the partnership. The German leader, Merkel, seems only interested in her political viability and might just tell everyone to fuck themselves. Should this happen, the stock market will fall by more than 10% in a single session. If you were around for the “Asian Contagion” back in 1997, this will make that look like a calm tape.

The worst case scenario is so frightening, I try to avoid thinking about it. I have a bad feeling something terrible is about to happen and I am ill prepared to deal with it. I was very much prepared for this eventuality 3-4 weeks ago, but was shaken out of my bear trade with that unfuckingbelievable 1,200 point rally. With my recent luck, I will throw that trade on again and the Germans will decide to comply and fuck me again.

This truly is an untenable situation and I wish this shit would conclude already.

[youtube:http://www.youtube.com/watch?v=CoOibAstPJ4&ob=av2e 603 500]

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Mr. Orwell Would Like to School You About a Cup of Tea

This essay written by George Orwell should be read and absorbed by all. It holds the secrets of life, especially with regards to the art of proper tea making.

If you look up ‘tea’ in the first cookery book that comes to hand you will probably find that it is unmentioned; or at most you will find a few lines of sketchy instructions which give no ruling on several of the most important points.

This is curious, not only because tea is one of the main stays of civilization in this country, as well as in Eire, Australia and New Zealand, but because the best manner of making it is the subject of violent disputes.

When I look through my own recipe for the perfect cup of tea, I find no fewer than eleven outstanding points. On perhaps two of them there would be pretty general agreement, but at least four others are acutely controversial. Here are my own eleven rules, every one of which I regard as golden:

First of all, one should use Indian or Ceylonese tea. China tea has virtues which are not to be despised nowadays — it is economical, and one can drink it without milk — but there is not much stimulation in it. One does not feel wiser, braver or more optimistic after drinking it. Anyone who has used that comforting phrase ‘a nice cup of tea’ invariably means Indian tea.

Secondly, tea should be made in small quantities — that is, in a teapot. Tea out of an urn is always tasteless, while army tea, made in a cauldron, tastes of grease and whitewash. The teapot should be made of china or earthenware. Silver or Britanniaware teapots produce inferior tea and enamel pots are worse; though curiously enough a pewter teapot (a rarity nowadays) is not so bad.

Thirdly, the pot should be warmed beforehand. This is better done by placing it on the hob than by the usual method of swilling it out with hot water.

Fourthly, the tea should be strong. For a pot holding a quart, if you are going to fill it nearly to the brim, six heaped teaspoons would be about right. In a time of rationing, this is not an idea that can be realized on every day of the week, but I maintain that one strong cup of tea is better than twenty weak ones. All true tea lovers not only like their tea strong, but like it a little stronger with each year that passes — a fact which is recognized in the extra ration issued to old-age pensioners.

Fifthly, the tea should be put straight into the pot. No strainers, muslin bags or other devices to imprison the tea. In some countries teapots are fitted with little dangling baskets under the spout to catch the stray leaves, which are supposed to be harmful. Actually one can swallow tea-leaves in considerable quantities without ill effect, and if the tea is not loose in the pot it never infuses properly.

Sixthly, one should take the teapot to the kettle and not the other way about. The water should be actually boiling at the moment of impact, which means that one should keep it on the flame while one pours. Some people add that one should only use water that has been freshly brought to the boil, but I have never noticed that it makes any difference.

Seventhly, after making the tea, one should stir it, or better, give the pot a good shake, afterwards allowing the leaves to settle.

Eighthly, one should drink out of a good breakfast cup — that is, the cylindrical type of cup, not the flat, shallow type. The breakfast cup holds more, and with the other kind one’s tea is always half cold before one has well started on it.

Ninthly, one should pour the cream off the milk before using it for tea. Milk that is too creamy always gives tea a sickly taste.

Tenthly, one should pour tea into the cup first. This is one of the most controversial points of all; indeed in every family in Britain there are probably two schools of thought on the subject. The milk-first school can bring forward some fairly strong arguments, but I maintain that my own argument is unanswerable. This is that, by putting the tea in first and stirring as one pours, one can exactly regulate the amount of milk whereas one is liable to put in too much milk if one does it the other way round.

Lastly, tea — unless one is drinking it in the Russian style — should be drunk without sugar. I know very well that I am in a minority here. But still, how can you call yourself a true tealover if you destroy the flavour of your tea by putting sugar in it? It would be equally reasonable to put in pepper or salt. Tea is meant to be bitter, just as beer is meant to be bitter. If you sweeten it, you are no longer tasting the tea, you are merely tasting the sugar; you could make a very similar drink by dissolving sugar in plain hot water.

Some people would answer that they don’t like tea in itself, that they only drink it in order to be warmed and stimulated, and they need sugar to take the taste away. To those misguided people I would say: Try drinking tea without sugar for, say, a fortnight and it is very unlikely that you will ever want to ruin your tea by sweetening it again.

These are not the only controversial points to arise in connexion with tea drinking, but they are sufficient to show how subtilized the whole business has become. There is also the mysterious social etiquette surrounding the teapot (why is it considered vulgar to drink out of your saucer, for instance?) and much might be written about the subsidiary uses of tealeaves, such as telling fortunes, predicting the arrival of visitors, feeding rabbits, healing burns and sweeping the carpet. It is worth paying attention to such details as warming the pot and using water that is really boiling, so as to make quite sure of wringing out of one’s ration the twenty good, strong cups of that two ounces, properly handled, ought to represent.

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Drinking Good Wine to Wash the Pain Away

I can’t remember being so mad at the market, as I am now. I haven’t been ignoring iBankCoin today. Instead, I left the office in favor of seething and snarking at people in the streets.

I’m not interested in rehashing the bearish porn-shit that you’ve been seeing, hearing and reading all day. Fuck those people. Instead, I wanted to inform you that Trader Joe’s has the best 1,000 day old gouda cheese in existence. I strongly suggest getting on your organic bicycle to buy some. Pair it with a nice Cab Franc. Be sure to make sure it is a 92+ rated wine, else you are simply drinking shit.

Sometimes it’s important to remember life exists outside of the stock market. Try to enjoy it.

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All Hope Is Lost

I’ve been in this business for a long time. My career has been riddled with one stock market calamity after another. I have never seen pessimism like I am seeing today. This is, by far, the most doom and gloom environment since I’ve been managing money, even worse than 2008. The price action is not nearly as bad as 2008, but the sentiment is.

This morning Cramer and Faber all but guaranteed the EFSF would not be used to bail out Europe and that in no way would it be leveraged. Moreover, Cramer said we need to go back to the September lows and that Europe was going to collapse and nationalize all of its banks. Even worse, he suggested they would crush bond holders of bank debt too. David Faber chimed in and said Greece was on the verge of an unorganized default of more than $500 billion in debt.

As I watched this fucking horseshit, I was reminded of getting shaken out of my VXX position a few weeks ago, thanks to the cocksuckers on CNBC (the same network that is now calling for collapse) sucking the dicks of the Europeans–promoting the EFSF as a vehicle that could save the planet. Let me make this clear: CNBC said two weeks ago the EFSF was being levered to $1.4 trillion and said we were off to the races. Now they are saying the opposite.

Let me make a cogent point to all of you: I am not upset at CNBC for giving me bad advice. I don’t accept financial advice from anyone, so it’s a moot point. Clearly, this is a network that cannot be trusted. They lack integrity and seem only interested in goosing viewership through sensationalistic stories to support their ad revenue. It’s no surprise that decent people like Dylan Ratigan, Eric “the oil barrel” Bolling and Erin Burnett left for other pastures.

Look, this is an incredibly hard tape. My mood swings are at an all-time high and I am driving my wife crazy. Whenever the market goes against my positions I threaten to quit the business and live out the rest of my life at Puma Punku. I don’t give a shit about a seven figure income and talking to important people about the market. Those people can go fuck themselves. The minute the market starts to bore me, I am quitting. I will wire client funds back and close this shit down for good.

The way I see it, I am too young to be so upset over things that I have no control over. The markets are blatantly manipulated, helped by nefarious people in the media like CNBC. My true passion is to build great financial products, like The PPT. I have a thousand ideas swirling around in my head for future products, one of which is going to be launched soon. It’s a new website and you will love it.

At any rate, I’ve turned off my monitor and have opted to just roll with the punches, betting that Cramer and Faber have it wrong again.

[youtube:http://www.youtube.com/watch?v=sVDNtvPX8Gc 603 500]

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