Government Monsters

Holy shit, is the U.S. government filled with evil morons? You have to recognize that they’re morons, steadily fucking the nation over with each passing second. But are they evil too?

These ingrates wait until after the summer bank slaughtering, after Berkshire puts $5B into BAC. After the emotion of fear of bank failure passes at least temporarily, and after the banks start to look like they’re possibly forming a bit of a bottom.

THEN THEY ANNOUNCE THEY’RE GOING TO SUE 10 BANKS OVER THE ROBO SIGNING MORTGAGE BULLSHIT?

Are they trying to ruin this country? Seriously, the fucking stock market is at the bottom of this country’s foundation, which is why Ben has been attempting to force people into it along with housing for over 2 years now. BUT THE GOVERNMENT IS ATTEMPTING TO TAKE IT DOWN.

Now, all that said, the market is really setting up for a bear trap here, at least today. Let me propose this situation: The market opens down, but fails to continue the downside. Into the long weekend, a weekend that will end with the return of pro’s from summer vacation and the “start” to fall, the bulls step up and take this market back to flat or up. How quickly do you think the bears will start to cover if the bulls make a stand here, after the market open?

I’m not too worried about it. Not only do I have a fat 80% cash pile but I’ve anchored my portfolio with gold and silver, trading nicely this A.M. thanks to the Euro crisis ruining fiat currencies.

When the market is being supported by government intervention, gold trades in lockstep with equities thanks to inflation. When the market is getting killed because countries (and their currencies) are going to fail, gold trades up as a fear asset. I almost always side with Austrian economics rather than Keynesian, so I certainly understand the argument for gold and silver. But I certainly felt safer buying gold sub $1000/oz and silver sub $15/oz.