China is shifting policy from plowing reserves into forex to investing internally. At the same time, our government is jacking up spending by the trillions, in order to artificially prop up businesses. Quit frankly, where the fuck is the money coming from?
We are a debtor nation. Without the support of foreign government buying our notes, we will default. The reality of higher taxes will come to fruition, because of necessity, not choice.
Of course it’s easy to get all doom and gloom, as the market knifes lower. However, look at the bigger picture. World growth is slowing to a standstill. Domestic employment is through the floor boards and America, individually and as a whole, are insolvent.
Sure, we can print more notes. The expense will be great and the pain will be ridiculous.
With that in mind, long term, shorting treasuries, via [[TBT]] , is a dunk shot bet. Eventually, rates have to go up, in order to entice investment.
In the meantime, hedge up or face certain financial death.
Barrons has a good read about America’s dicey line of credit.
UPDATE: Last bull surrenders.
[youtube:http://www.youtube.com/watch?v=JlAUdPTr6ZI 450 300] If you enjoy the content at iBankCoin, please follow us on Twitter
Don’t even write shit like that. That truly happens and there will be riots and millions dead. Unless you are egregiously armed your little bullshit neighborhood will be looted for firewood.
http://majman.net/fly_loader.html
Not in our lifetime.
LOL – woops I was supposed to tell you that was my new playstation^^^
WWIII??
I have a street cannon.
ya’ll should try faking your own death and killing an enemy or two (biggie) then moving to cuba….
it’s done wonders for me.
I would like a Merlin post to sum it all up…
Poof! Your bullshit economy is gone.
The Bush Administration — from Surplus to Default — well done Gentlemen!
This is so sad it’s almost funny. I’ve never seen such a futile attempt of perma bulls then they’re pathetic attempt to drive the market higher.
lol, A gernational buy, a buying opportunity of a lifetime! they say…
did they ever think that it might be the opportunity of a lifetime to sell?
Did they ever consider that they could still buy while hedging their downside?
When I think of a perma bull in this market, i think of the image of a fish flopping around in the desert with it’s head cut off.
The elephant in the room has been spotted. Shut down the printing press, we’ve been discovered. Each U.S. citizen responsible for an immense part of our national debt. 2009 savings rate… <0%.
America be fucked. Let’s fortify Fly’s neighborhood.
Default?
Does this mean the Dow isn’t going back to 14,000 this year?
if this were to happen, I’m taking all of my neighbors shit. he has some good toys I’ve been eye balling. I have sharp knives, guns and a whole lot of ammo. He is a liberal anti-gun deuschebag w Obama bumber stickers on his car.
Guess who wins?
But S&P still rates the USA AAA. How can anything AAA default?
You know if this happens, all the money we have will become worthless. Sigh.
My prophecy will come true. Our fiat currency is doomed. Back to the gold standard or death to us all.
I already miss Devil Dog. Odd No?
He is a liberal anti-gun deuschebag
LOL. Does he speak German?
_______
I forgot who said they bought GOOG at 299. Thanks for playing
Game over
Wouldn’t the greatest tragedy of our securities war (WWIII) be that when the US Treasury defaults and the clown rapists “run dry” that we won’t be able to pay illegal immigrants to clean up the wreckage?
Buffett knows nothing.
Pardon me bud, can I borrow a dime? Hey, be a patriot and a pal, you know I’m good for it! : )
I have no guns or ammo, just nunchukus. In tight spaces I lose.
If the treasury defaults or comes close to defaulting, and / or if the 2009 or 2010 deficit goes to $2 trillion, the Dow Jones will go to 50,000+ and gold will go to $5000 plus, and the average home will go to $1 million dollars.
ALL asset classes will inflate. So the PRUDENT man goes ALL IN LONG NOW, with a 10% hedge in gold and wsilver. BUY STOCKS NOW, SHEEPLE!
As a percentage of GDP, our public debt is not so bad. We are better than Singapore, Germany, Canada, France amongst others. https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html
I don’t know why people are making such a big deal.
Na, US will probably invade S.Africa long before that to take over the gold mines
Stop all the worrying about the USA. It’s gone… Look at all the fun we are having watching the stocks fall, and I haven’t laughed so hard at all the companies that have closed or had major lay offs. Welcome to our brand new Obama Nation. Sit back folks, it shall get worse once he gits into the “white House”
CLNE and 75 percent of my watch list
Yis’ga’dal v’yis’kadash sh’may ra’bbo,…..
S&P breaks below 860 fuck you Art Hogan we are coming to break for face off
As a percentage of GDP, our public debt is not so bad
Thanks for making my point. Now will come over here and jerk me off.
This whole thing stopped being funny about 100 S&P points ago. I’m moving back to Jellystone.
Cap, will you jerk me off too?
China will fall a 1,000 points tonight..watch and see, FXP 100.00 tommarow 125.00 friday………..
Stocks are bery bery cheap.
Hey dumb ass they will get cheaper
KC —
Is that the funeral prayer?
____
Is “The Fly” winning? I need an update.
HK anyone?
I don’t think we’ll default. The fed could go into the treasury market tomorrow and buy up all outstanding treasury debt, as well as all outstanding mortgage debt, in a blink of an eye, because they control the printing presses. The only side effect would be dollar devaluation and hellacious inflation.
That’s where we’re headed. The fly may think gold is “gay”, but it is the only asset that is not someone else’s liability.
Fuck treasuries. $713 gold is a bargain.
This guy on CNBC is an idiot. Stocks are going to crack skulls.
Art Hogan, here we come!!!
In default all your winnings get set to zero.
Clown Rapist (what a ridiculous name):
That will NEVER happen. Rapid inflation will never be a cogent choice of our government. They will try to string this out.
Plus, we own 8,000 tons of gold. Gold is screwed.
Barrons has a good read about America’s dicey line of credit.
Brad Setser has a better-informed read, IMO: http://blogs.cfr.org/setser/2008/11/12/china%e2%80%99s-fiscal-stimulus-doesn%e2%80%99t-necessarily-mean-that-it-will-stop-buying-treasuries/
Fascism, California Style.
Look for more of it, kids.
_____
Game Rigged:
You underestimate Senor Tropicana.
I will buy up all surrounding property.
Jeffrey Cooper
02:53:56 PM
No positions in stocks mentioned.
It’s Coming!
Tomorrow is the 7th day since the last pivot high, which as you recall occurred just after the Weekly Swing Chart turned up and the 20 DMA had been tagged.
It should be a big move either way. Either a reversal up or a test failure.
GovtFunds wrote:
“Stop all the worrying about the USA. It’s gone… Look at all the fun we are having watching the stocks fall, and I haven’t laughed so hard at all the companies that have closed or had major lay offs. Welcome to our brand new Obama Nation. Sit back folks, it shall get worse once he gits into the “white House”
In case you don’t know, Dipshitz Govt Funds,
this bullshit is ALL courtesy of the Bush Criminals. Obama has had nothing to do with it.
But of course he will soon strat to FIX it.
Fuck you goldman. Eat shit
I will have a drink with your money this weekend in Hawaii
Thank you Greenspan and company, my savings goal has gone from investing for growth to funding a deep freezer and generator…fuckers
It’s amazing how many posters have questioned God today.
The Fly is God.
rates will only go up if there’s a demand for debt.
Nobody wants to take on anymore debt and they can’t get a loan anyway. Money is cheap and will stay cheap.
Jake, Yes.
Are you hangin in there. Did you blow out of GOOG?
I’ve never heard some bad news makes me want to pull a Juice and buy something…UYM…SSO.
But I remember a guy at a crap table in Atlantic City telling me once “You can’t fight City Hall”
Gas in Independence, MO Noon today $1.69…please explain?
That will NEVER happen. Rapid inflation will never be a cogent choice of our government.
It will happen if the only other choice is deflation.
Here’s what I dont’ get. The Messiah could perform “Miracle #1” right here (“Wedding at Canna” anyone?).
All he’d have to do is come out and say. “No fuggin way we raise cap gains taxes next year (or next two years, say). Literally that’s a NO LOSS for him, and boom, he just reflated the market by 15% minimum.
Surely he has an advisor with an 100 IQ that could clue him in on this?
Or no?
__________
Fly: scariest ducking headline – ever!
DUMFUKS: dumbest post ever – I’m gonna write that off as tongue-in-cheek, but I gotta wonder
Did you blow out of GOOG?
Nope, only got 50% of what I wanted. Doing the Fly “leg in” thing here, with the goal of trying to get the last bit at $280 if it gets there.
Of course, if it breaks from there, I take my $24 loss.
Same stragety (sic) with CRAAPL, btw.
_______
The undiscerning mind, like the roots of a tree, absorbs all that it touches…including the poison that will kill it.
señor tropicana,
I don’t think they’ll take it to the extreme that I was talking about, but it’s defintitely going to happen.
Default or debase are the only two options. And they both lead to the same result: worthless “federal reserve notes”.
I say they debase. They must monteize our debt or else it will crush us. Deflation is death for debtors. They will also monetze away their impending social security and medicare obligations.
Quantitative easing is what it’s called. Debase or die.
All I can say is: We’ll either be looking at SPX 950 tomorrow, or SPX 750.
Fuck me if the Devilish Dog wasn’t right about at least revisiting the lows, ovah heah.
_______
Michael Paulenoff
03:20:00 PM
No positions in stocks mentioned.
Crude Oil Heading Into Severe Oversold Territory
Yesterday’s break in crude oil and downside follow-through from the 7-year trendline at $61.60 to new bear-market lows at $56.35 has accelerated into a new downleg that is pointed right for a test of the Jan 2007 low of $49.90 next.
Such a decline represents another 12% on the downside, which should press weekly oil into relatively severe oversold territory for oil and its related US Oil Fund ETF (USO). Only a rally that sustains above $62.00 will begin to repair the technical damage inflicted during the past few sessions.
Jake, I was wondering the same thing myself about the cap gains tax. There’s got to be a way he can get the message out without stepping on the President. There is no way in hell that anyone is going to raise any taxes on anyone for the next couple of years.
Maria B. and her fake boobs are beside themselves at the egregiosity of current events. (her 401k)
Fly, IBC should do a leveraged buy out of Sprint trading symbol “S”….. Could I then get a sweet deal on a new super cool Instinct.. I think Howard could put it together!
Yogi,
I don’t think that Bush would have a problem with him making that announcement. Shit, he’d probably let him have the Oval Office for the afternoon to announce it.
_______
Yes, the US Government paper is rated AAA- American Automobile Association.
Anybody need a tow?
Juice…I can’t stand her and her “Changes” she is horrible.
Here comes the PPT to the rescue.
Wow somebody is dropping some big tickets
Welcome to the Westinghouse Theater’s “Soupy Sales’ Last 12 minutes O’ Fuckery!”
sponsored by that little Ovaltine fucker.
____________
Where is the Dog?
“We think (the recession) could be deep; we don’t know how deep,” JPM’s Dimon said today. “We think the economy could be worse than the capital markets crisis.”
What team is Dimon on, anyway?
Dimon is on the “my bunker is on a private island, where’s yours?” team.
___________
More like Howdy Doody or Romper Room time.
Somewhere Devil is chained and locked down to prevent typing on this site just for the day….bet he can’t stay away on this down day as promised.
Today’s dump was in the astrological forecast…its a full moon tonight after all!
From an Astrology Blog:
Tonight’s full Moon at 21 degrees of Taurus makes a T-square to the Sun/Mercury/Mars lineup in Scorpio and the Aquarius stellium of Neptune, North Node, and Chiron in the sky. Expect further dissolution of hard assets.
This full Moon activates the incorporation chart of the New York Stock Exchange, so be ready for further damage in the equities market.
Mars in the last degrees of Scorpio is past an opposition to the full Moon. Upsetting information about debt or declining asset values could be revealed tonight.
Anonymous, DD is enjoying 2 1/2″ rib eyes while watching Bridge on the River Kwai. I wouldn’t worry too much about the Dog.
Bottom Is Here DUMFUKS Says: I never said that Bush and his cronies were good, now did I? Just be prepared to start eating catfish instead of lobster. Obama will not be a friend to wall street and please do remember you heard it here first. He is “the one” who will do you under. Be skeered, very very skeered.