There is no Bernank, Only Zuul
__________________________
I don’t have a lot of time this morning, so I’m just going to feature the chart I put together last night. As you know, I’m increasingly bearish here, and more so on the financial sector than any other, primarily because they are — like our internal deficit and debt problems — another can that has been kicked down the road.
Back in 2008, when the world was melting into a hardened polystyrene ball thanks to the implosion of the easy money real estate bubble, banks were allowed to escape (some just barely) thanks to the ministrations of the Fisc and the Fed via TARP and other more nefarious and clandestine sources. Worse, Freddie Mac and Fannie Mae, the twin dogs of Zuul the Destroyer, were allowed to remain in their positions of power “for the good of the market.”
In other words, little was done in regard to true reform save “shoring up” for “the good of the industry and the economy.” Bad mortage loans are still on many books, and real estate prices have been frozen in a glacial slide to the sea, rather than being allowed to correct in a more natural — if radical — manner.
Ironically, it is not those mortgage time bombs which will kill the banks in the immediate term, as the “propping up” methodologies of Congress, The POTUS and the Fed are actually hurting the taxpayer while assisting lame banks. No, it will be the regulatory overkill administered in the fecal kludge which is Dodd-Frank Reform Bill, also known as “the second 2,000+ page bill that no one read before voting through.”
To give the Congresscritter some defense however, we can’t blame them for the criminal act of not reading the bill, since there were hundreds of pages of regulations YET TO BE WRITTEN found within its pages. In my opinion, this is the far more egregious and unconstitutional sin. In the case of signing a law that carried unknown legislative directives in it, Congress is yielding it’s power to an unelected alphabet soup of Federal financial bureaucracy.
Banks are just now beginning to “implement” some of the new regs. You are already familiar with the loss of revenue due to debit card restrictions, but there are other capital and revenue limiting aspects which will also affect banks both large and small.
Ultimately, this will likely lead to another round of consolidation,which is what the cronies in Congress would like, as they loathe competition and it’s messy donation collection implications. Until then, banks will be a mess, and I would steer well clear of them. If you are adventurous like me, you might even take an interest in their downfall:
As you know, I added to my SKiFfles the other day, along with a position in TZA and more TBT (which remains a hair shirt). What you don’t know, unless you are a member of The PPT was that I also loaded up on EXK, GDXJ and AG calls yesterday afternoon.
Yet another reason to look into a subscription for The PPT as soon as possible. My best to you all.
_________________
If you enjoy the content at iBankCoin, please follow us on Twitter
Yup,looks like I’ll be riding in the $FAZ–mobile shortly.
Skiffles is a less bumpy ride, I gfind.
______
You see the latest short attack on Chinese stocks is now a gold play … SVM?
I just posted the DJ report on previous blog page.
I do not know, truthfully.
__
Well, at least one part of the banking business is still doing okay…
lol.
________
I followed your lead into GDXJ calls. SO far, so good, Monsieur Gint. 😛
Terrific timing on the calls, very impressive
Noticed ngd is not up like some of the others.
Would you add this one here if you wanted more exposure?
Thx
Already have a tonne and its toppy right now. Due a pullback.
_______
How do you tell when it’s due for a pull back? I was checking out the slow stochastics and noticed gdxj registered overbot and that gdx and sil were close to being overbot as well – but ppt didn’t register that any of them were. What indicators do you use to know it’s kind of toppy?
I usually use 5 day (or week if I’m looking at weekly) RSA and slow stochs.
I also look at volume bars… four to five black bars in a row usually means you’re due.
_______
Thank you Senator
fudge – as usual I toe in less than I want and miss the big hit. SKF up $7 from my purchase – wow.
(cough)(cough)(Pussy!)(cough)
________
pretty much. I’m working on it. You are helping to enlighten me.
Just giving you schist.
I’m still only about 40% into my position. These things take time.
_________
Jake,
Anymore left? SKF
… perhaps instead of cruzin’ other BLOGS here …
and … practicing what is essentially … “drive-by rapid-fire ridicule” … you could put some effort into finishing THIS post !!!
Lookin’ forward to seein’ THAT … uhhh … CHART !!!
—
COME ON GINT !
BRING YOUR FUCKIN’ … “A GAME” !!!
😀
.
… a “tabbed blogger” who can’t figure out HOW to post a chart !!!
—
COME ON MAN !!!
.
… I’m sorry, man !!!
You had that coming !!!
.
HELLO !!!
“A Game !!!”
.
Are you Fly’s retarded brother?
________
vice versa, actually !
—–
Just jokin’ with ya a bit last night !
Congrats on gettin’ that chart posted !
.
Just for you, Alf.
_________________________
The fact that a … ah hem …”grown man” … would actually KNOW that video existed …
…let alone … be so familiar with the movie as to seek it out … and post it … speaks VOLUMES !!!
Am I supposed to be offended … or … amused ?
I am neither !!!
—
You pretend to be an ADULT !!!
When IN FACT … you are a child !!!
The Hobbit ???
REALLY ???
Jeeeez !!!
—
“A GAME” … MOTHERFUCKER !!!
—
That’s what Fly would say !!!
.
.
The Hobbit
—
ROFLMFAO
.
… love ya man … seriously …but … really !!!
.
Still in MON? When pondering their potential problems, I am almost tempted to consult a Bible.
????
Say wha?
________
Senator, thanks to your guidance, I now have 20% of my SKiFfy and SDSsy and 45% of my fave miners. One thing I find worrisome though is the dollar’s refusal to go down. Do you have any thoughts on the matter? Thanks and may you and your family have an enjoyable Labor (Labour to us Canadians) Day!
The dollar going up usually coincides with a market downswoop, which helps all your short plays.
I am not overly worried about gold and silver, however, as I’m still only about 50% in.
___________
Oh God.. why is Alf still allowed around here?
Not my call… speak to the Boss.
_______
Karma Fairy was here thumbs up for everyone!