Tag Archives: stock market crash

What We Are Afraid To See and Maybe Don’t Want to Know

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There is an unspoken agreement between government, organized crime and larger trading firms. Manipulate prices if you wish as long as the results are higher prices. What a great way to make money this is, contingent of course on all of the big players in the financial arena being on the same page. There are plenty of losers but they don’t know they are being soaked or how it is being done. As a result of the Federal Reserve’s giving out free trading money ordinary people pay more for gas, milk, rent and all other life’s basics. People who simply save get nothing in terms of interest on their money because banks get all the money they want for nothing, from the Federal Reserve.
Theft is legal when it is accomplished through the use of government especially when the victims don’t mind. The thieves only have one risk. Financial assets might drop in price despite the organized efforts to keep them moving higher. It happened with real estate.
Right now we have a delicate equilibrium. All of the thieves are working together and the victims are not suffering enough to investigate the source of their hardships. What could happen to upset this cozy arrangement? What if the solution to the Cypress crisis were to burn the Russian Mob, or any other group milking the asset value enhancement cash cow? Up until now, the path of least resistance for big players has been to work together. If just one breaks ranks and decides to work the downside of the market, the result will be a stock market avalanche.
Historical Statistics

Positions For The Coming Crash

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For a long time I have contended that the only good investment opportunity available is that of holding a diversified portfolio of short positions in stocks. This is not safe, but you will soon discover that it is safer than what you are doing now. Below are the symbols of the stocks I am currently short.
Across the globe reckless economic policies have driven up asset prices as an accommodation to the wealthy upper 1% of the world’s population. The cost to you is a gross misallocation of resources that will be corrected with a severe economic depression.
Asset prices of all classes including gold and real estate are overpriced. Selling short is the opposite of owning assets. The only profits to be made in the coming depression and stock market crash will come by profiting from the collapse of the world’s financial system. That is what selling short will accomplish. Suffering for the majority will be unavoidable. Think of the suffering as your punishment for believing lies.

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Gold

The Problem Is The Solution

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Monetary and fiscal policy work perfectly in theory. On paper, Communism is by far the best economic system. On paper, a chain letter is a flawless business model. All of these ideas are flawed because, in terms of economics, people act in their own self interest no matter what.
Currently the Federal Reserve is “solving” the world’s economic predicament. Federal Reserve Chairman, Ben Bernanke is popularly assumed to be a brilliant economist. He is not near as smart as others in the financial sector who quickly learn to game Federal Reserve policy.
Where the U.S economy is concerned the “solution” is the problem. Relying on the Federal Reserve to right the economy over the years has caused a grossly inefficient allocation of resources that will be corrected one way or another. Loose monetary policy has allowed organized crime to infiltrate the financial sector and manipulate prices in all of the financial markets. Dishonest markets always collapse. U.S financial markets will not be an exeption.
Since its inception in 1913, the Federal Reserve has caused one economic problem after another. How can an organization that is staffed with some of the world’s most credentialed economists perform so miserably? The answer is rooted in an inconvenient fact that dooms all attempts at central economic planning to failure. Governments are not capable of making economic decisions. Governments only make political decisions. Despite claims that it is otherwise, all decisions by the Federal Reserve are political decisions.

The Stock Market Is Cooked

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I just want to remind everyone that despite a few days of higher stock prices, the stock market is cooked as is the U.S. Economy. This cannot be prevented. The pillars of free enterprise have been removed and replaced by central planning. Great suffering is to follow. Look after yourself and your family as best you can. We are entering a serious period of its every man for himself.

On Top Of The Stock Market Crash

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With the stock market collapsing more today, this is a great day for me with respect to my investments. As I have written previously, I have been aggressively taking out short positions for over a year in anticipating a severe economic depression. I am absolutely sure all financial assets are going to plummet. While my investing approach may seem extreme, I feel completely safe with it. I am already ahead almost 50% for the year.
So, where do I get my confidence? I know for a fact that human beings do not just behave like herd animals. Human beings actually are herd animals. From birth we are all trained to be members of herds and sub herds. All through school, children are encouraged to establish all sorts of arbitrary loyalties. By the time kids are grown, individual thought is all but extinguished. None of this is done consciously. It is all instinctive behavior. Humans both deny acting on instinct and are unaware they are doing so. Only a handful of others and I have enough awareness to see that society is governed by herd dynamics and not individuals reasoning individually. Am I happy knowing that I am a herd animal? No, but I am not going to let that stand in the way of my making a profit.
Other analysts believe policy decisions are made using reason and intellect. I correctly study human behavior in terms if herd dynamics. For example, I know when the Federal Reserve makes a decision; it is always based on compulsions that are dictated by herd instinct.
Lonestar Card Lonestar Card is a song I wrote and recorded as Curbside Jimmy a number of years back with the Curbside Jug Band. If you listen very carefully to the bass, you will discover that it is a Jug. The jug was played by the late Gator Ron Ramey, who was the probably best jug player who ever lived. The the jug is prominent at the very end of the song. Lonestar Card celebrates the welfare system in Texas of which so many Texans are very proud.

No Honest Markets

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There is not one honest market in the world today. Dishonest markets always fail. I am still convinced that the bottom is going to drop out of the stock market. I am equally convinced that I cannot determine when. The best approach I have is to take short positions in a portfolio of stocks which are already in down trends. Close any positions which go up rather than down and rotate the money into different stocks showing weakness.
First Solar (FSLR) is one of my short positions. It also went against me last week. If FSLR closes above the red trendline, most likely I will get out with a loss and open a position in weaker stock. The whole idea is to stay short the weakest stocks in the market. In my opinion, there are no safe places to invest money other than cash. Shorting a portfolio of stocks is certainly not safe. There is a chance of getting a substantial return. For me it Is worth the risk.

First Solar (FSLR)