As I sit here, second guessing myself into fantasy football start-or-sit oblivion, I am overcome by a surge of inspiration to take advantage of the glorious blessings the iBankCoin network has bestowed upon the sheeple.  Let me disclose up front: my only qualification pertaining to (financial) blogging is an aptitude for proper grammar.  Beyond this, I have little to no expertise in the arena of financial markets.  Then again, this blog isn’t intended for you, fuckface.

Instead, my intent is to use this space as a diary of sorts, whereby I can bring some structure and order to the disparate thoughts and feelings I’ve been brooding over since the August legs lower.  I preside over what you would refer as a “bullshit Zeeco”  account.  Before August, it was–at least by my standards–a distinguished, gentlemanly account, something closer to Charles Schwab than Zeeco.

Nevertheless, the winds of change have derailed dreams of retiring from work after only two years and returning to the glorious malaise of undergraduate studies.   The past couple of weeks have really perplexed this amateur investor.  In fact, Friday’s “bullshit” rally proved especially frustrating.

What’s this market pricing in right now?  I am wholly on board with the Fly’s “Print, baby, print” thesis in regards to how Europe will solve its problems.  But to me, the lay, non-space alien, that’s three or four trades down the line.  Don’t there need to be serious shocks to the system to force Europe’s hand to the presses?  How can decades of political and cultural aversion to printing (read: Germany) be subverted by 180 degrees without any real pain inflicted by markets?  Is an ephemeral kiss of 7.5 on the Italian 10-year enough to spook the Merkel Monster into dusting off her wheelbarrows?

Markets have roared higher in response to the recently installed trail of technocrats.  From Greece (Papademos) to Italy (Super Mario 2.0), market fears of contagion seem to be wholly assuaged.  But, again, I’m left confused.  How is it taken as a given that these countries now have their financial houses in order, just because some former ECB-lemming is now at the helm?  Make no mistake: Europe is already in a recession.  In the face of this, their policy response has been to try and preserve their (irrelevant) AAA ratings vis a vis draconian spending cuts.  Europe is in the process of manufacturing their own DEPRESSION.  And today you have the ECB refuting the UK Telegraph’s report that the ECB had to purchase hundreds of millions in bonds that were “left over.”  Oh, and this in an auction for just Irish debt!

So, market masters, space alien magicians and the like, let me get this straight–Europe is in the process of manufacturing its own GREAT DEPRESSION and the EFSF is a total sham?  Right?  Riiiiiight.

As of Friday’s close, I remain positioned for collapse.   Short CRM.  Long VXX and TZA.  Last week, amid the turmoil, we saw numerous intra-day reversals and even managed to close the week in the green, despite Wednesday’s blood bath.  I’m hoping that Monday is a “sell the rumor” type of day, so that I can, at minimum, shed my retardo ETF longs.   I will lay out my thoughts on CRM in my next post.

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