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There’s Nothing to See Here, Folks, Just Move Along….

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U.S. stocks executed a shallow swan-dive around mid-session on Thursday, spooked by news that a bunch of hedge funds had withdrawn spare collateral parked with Deutsche Bank. (See tout at bottom of this page.) Predictably, the pundits downplayed Deutsche’s problems, including a $14 billion shakedown by U.S. regulators to settle mortgage claims from the Great Financial Crisis. With unintentional, heavy-handed irony, Bloomberg.com calmly noted that “the situation doesn’t appear to be that dire for Deutsche Bank at the moment. But it’s clear the lender’s problems are escalating rapidly.”  Did your scalp tighten, or your heart palpitate, when you read that sentence? None of us will have forgotten that “the situation” didn’t appear to be “that dire” for Lehman or Bear Stearns either — up until mere days before each went down like the USS Thresher.

So much for the theory that the problems of some little bank could conceivably be the black swan that topples the global financial system — for the second time in a decade. This particular bank is as symbolically important to perceptions of Germany’s financial stability as B of A is to America’s.  Bloomberg’s reassurances aside, and notwithstanding the fact that U.S. stocks ended the session with a moderate bounce, an investor would have to be completely out of his mind to be fully loaded with shares at these levels — just inches from all-time highs, with no respite in sight for a decline in U.S. corporate earnings that is about to enter its sixth straight quarter. To repeat: OUT OF HIS MIND!

Please do not ask trading questions!

  • Buster October 1, 2016, 12:00 pm

    It’s been too quiet around here lately…
    I repeat, possible Jubilee began on 23rd Sept.

    Let’s see if the debtmeisters get their ‘reward’ this time around. You just never know??

  • mario cavolo September 30, 2016, 11:19 pm

    hi rick,

    i miss the gang here a couple years back.

    but whats to write about anymore? when the knowns are known, when the elite’s lawlessness is complete, when there will in fact NOT be another financial crisis.

    WHAT did that crazy shanghai guy just say?

    You heard me. Deutsche isnt profitable, has too much debt, thats the next crisis? Please stop kidding yourself dear friends, the puppetmasters are in control. With a now $20-40 TRILLION in bailout money on the “books” you actually think they cant figure out how another little trillion will be marked to shore up one of the big banks so the.system can continue?

    At.this point the rigged system is so perfectly normal, obvious and lawless that we do NOT have a problem AT all. It is the new normal state of affairs and set of policies across our sovereign governmental bodies.

    There is no problem or crisis that cannot quickly be responded to by the next “unprecedented” new decision or direction.

    All that will change is the manner in which the common man across the world will be impacted, nothing more than a continuation of his struggle and suffering.

    All the while the privileged are protected or, at least, stable, in their own world.

    Thus, everything is the same. Perfectly fine. If you dont believe me, just ask Obama or Hillary or our dear Lester Holt whose first debate question was laughable at best.

    Cheers, Mario

  • John Jay September 29, 2016, 10:50 pm

    The entire world economy in general, and the United States Economy in particular is QE Writ Large.

    And it is not limited to the stock and bond markets, not at all!

    Let’s have a look, shall we?
    One trillion dollars in Fed Backed Student Loans, QE, plain and simple.
    It is Commissar Camp for 90% of the young people attending.
    They learn to whine and get PC indoctrination, as the curriculum is eternally dumbed down for them.
    The students get paid to loaf, the Diploma Mills rip off the tax payers, the Fed Gov gets more Zombies to toe the line.

    3%, nothing down, 30 year mortgages?
    More QE.
    Keeps house prices up, and any reduction in mortgage payments is instantly sucked up by increased property taxes.

    One trillion dollars in 0% down, 7 year auto loans?
    QE for the masses, keeps the Zombies distracted with a new car to sit in traffic with!
    A combination of QE and Corporate Welfare.

    And, speaking of a Corporate Welfare/QE combo……………..
    The Veterans Adminstration, 345,000 employees, approaching 100 billion dollars in their annual budget.
    It is a cost the MIC just dumps on the taxpayer,
    as 50 years of endless warfare chews up the Canon Fodder.
    The WWII Vets are almost all gone, the VA should be almost out of business.
    But, noooooooooooooo!
    Korea, Vietnam, on and on, and if a guy like Trump talks sanity and peace, he is villified by the MSM.
    JFK was planning peace, and was liquidated for his trouble.
    And Eisenhowers’ big concern with his MIC parting speech was that it would bankrupt the country.
    He was right about that, yeah?

    Anyway, on and on it goes………

    I guess we are all QEssians now!


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