Helicopter Bennie and Greenspan's

Apparently, Bennie and the Greenspan's have been conspiring to inflate. The stock market is clearly their favorite playground. I wonder if Ben call's Greenspan before he hits his magic buttons.

"If this goes on, we won’t survive, If people lose trust in the banks, there will be a revolution..."

The question for me is, is this headline is a sign of things to come?...I think it is...but in the current case this quote comes from Khalilullah Frozi, one of the two largest shareholders of Kabul Bank in Afghanistan.

We know the Ben and Shiela show has a nice theme music and is set on a fairy tale island with regular appearances by Larry Summers and Timmy Geithner and cameos by Greenspan as "Greenberg", Warren as "Nice gramps", Bartaromo as "Leggy Peggy" and Hank "the Bird watcher"...Lloyd has even been asked on the show, but he's been too busy making money - so he tried to get Trump to stand in for him.  Dimon was not invited to appear because he's the director and secretly has a crush on "Leggy Peggy"...

Be that as it may, this show is a distraction and the panics in Afghanistan are a sign of the social distrust permeating the globe at this point. Every now and then the Ben and Shiela show will trounce the reality shows and transfix everyone, but reality will win out. 

Back in Afghanistan they apparently have their own version of the "Ben and Sheila Show" starring Mahmoud Karzai, Khalilullah Frozi and Robert Gates.  Cameo appearances are not allowed but Obama has been ask to appear, he seem to always be booked on "The View" when they ask him  to appear - so he's also tried to get Trump to stand in for him.

The popular euphemisms this week are:

“People don’t need to be worried,”

“We’ve got enough cash..."  "...to support the bank.

“Even if the whole financial system in Afghanistan collapses, we have enough money to support it,”

Other tantalizing clips:

"The biggest mistake, by my partner, Mr. Farnood, was to buy $160 million worth of villas and office buildings in Dubai, in the United Arab Emirates, at the height of the real estate bubble in 2007 [with the banks money]. The next year, the market collapsed. Nobody could have predicted the crisis, nobody” - Mr. Frozi, Kabul Bank 

In the show, many of the villas bought with the banks (government's) money, are occupied by friends, and prominent Afghans, like former Vice President Ahmed Zia Massoud and Mahmoud Karzai.

“This is nothing but a panic,” Mr. Karzai said. “People are under the impression that the bank is failing, and it’s not.”

In, previews for next weeks show, Mr Farnood, a world-class poker player, was ordered to hand over £100 million of apartments and villas in Dubai which he had purchased with the banks money for figures including Mahmoud Karzai, the president's brother.

Apparnetly, these units and villas are worth as much as Dubai World and its refinanced 59 billion in debt - less than ZERO.

What is interesting about these two shows is that apparently the "Ben and Shiela Show" is a few episodes behind its Kabul sister. They are still sipping Pina Colada's on Ben's get away island. The theme will change and I hear that they will be hiring the writers from "Ka-BULL" back in the US. 

I know this post is a bit of a transient, but I think its ironic that we have not heard about Dubai for a while, or quite a lot of other things like Bank Runs and Lehman. Every thing's supposed to be just fine. The last time I heard about bank run's they were occuring in the most prolific debt carnivore of the world - "England" and were shortly followed by Lehman...and the bottom about to fall out...I think this is the same story, different station. The headlines look fine but the crap is all still there...albiet covered by Peggy Leggy's negligee and a few of Ben's Pina Colada's. Yeah, Ben you can drop money from helicopters and throw it out the window for the reason of the month club like buying bankrupt hotel debt for Maiden lane from Bear Stearns...but you could do nothing to prevent Lehman? I would say the show is getting less and less believable by the day.

Ironically, Afghanistan is Obama's worst nightmare and some of it may be coming soon to a town near you...

If this goes on, we won’t survive, If people lose trust in the banks, there will be a revolution in the financial system. - Khalilullah Frozi

GM IPO - the ultimate manipulation (almost)

Well there you have it. GM filed the IPO. Just in time for elections. Mr. Obama tried very hard...and though he has absolutely NO understanding of what he is doing or dealing with he will try to milk this for all its worth.

I would like to point out that liquidity is not abundant, and given that backdrop, the nice thing about the IPO is that GM will technically retire its debts including the ones to uncle sam. Would you buy into this scam? Would anyone with a brain buy shares of GM on this IPO? Is GM a good risk? Has management done anything to instill confidence aside from demonstrating that management is NOT committed to its plan or execution of it? One would, in my opinion have to be slightly delusional to want to buy into this IPO...possibly buyers of the KKR IPO might like this one...but those guys don't have much money left.

So, where are they going to raise this kind of money under the pretense of paying back the taxpayer? 

I see only one answer that makes sense or seems plausible, off balance sheet investment firms financed with undisclosed money supplied by the Fed and therefore, ultimately the taxpayer. Bernake might aswell crack open that Maiden Lane holdings vehicle again. The only marginally positive thing about this is that the crew will try like hell to keep the markets from tanking until the last possible moment. The irony is that this whole operation is simply another expression of the same ponzi scheme designed to make it look like there is more money in the system than there actually is.

Way to go Bernake, Geithner, Summers, Obama, Dimon and Wall Street - pay off the tax payer with money from the tax payer and a few other fools you can pick up along the way. However, real payback will not be fun and this effort is fraudulent manipulation designed to influence the elections - so, good luck Washington Street...you are going to need it...the best outcome will be that the deal gets cancelled due to a weak market and that the threat of a liquidity vacuum in the equity markets created by this IPO disrupts the manipulation effort.

Still alive...

Well, I am still alive...I have been working on a very sophisticated release that is now finally in UAT mode after months and months of work. So, I have been totally overwhelmed. Additionally, there have been no market events that have played out unexpectedly so far, so not much to update there. We are still long the hedges that were put on relative to our short futures trades. I will post when we close that position and am also working on a post regarding this type of trading and its psychological basis, foundations and potential.

The market is indeed interesting here...Bonds screaming deflation. In fact, I see the Bonds Up/Sock Market up - bond/equity arb blow up as a major influence on the market dynamics right now. Correllations are either extremely tight or breaking down...these are natural symptoms of de leveraging but very unnatural to trade and difficult to accept. While all this is happening Geithner is now writing Op-Ed marketing pieces for his screenplays in the New York Times and Bernake apparently is getting into the hedge fund business properly by planning entities to purchase worthless assets and mark them fraudulently until he can figure out how to compensate for the 40% drop in the volume in money over the last year. Stimulus is creating lots of new street building projects we don't need and paying unions that we also don't need while disrupting already fragile businesses on the streets that did not really require the work to begin with. That is happening all over miami...Obama and company just get it right everytime. Good thing Obama works for Bernake...What a bunch of losers these guys are.

All interesting stuff and interesting times.

I am working a few new feature posts...so, be patient with me. One of the things that I like about trading swing systems is that you get breaks in between the trades and I have tried to use this last one to force this release into fruition. it is surprisingly difficult to concentrate fully when you have large positions on as we did in July...I was relaxed but the size of the trades was larger last month than usual which was certainly interesting. So. I apologize for my lack of posts the last few days, however, I have not had many free cycles left...and I am handicapped because I am not blessed with very many cycles to begin with. ;-)

Live from Bernakejing, China...its a new data manipulation

Who do they think they are fooling? Is the market really that insane that it will get more confidence from a number that makes absolutely no sense? BDI is a great way to gauge china. Shipping rates have dropped nearly 60% over the time that china reports 10.3% growth. There IS a reason for that...its called "no exports". There is also a reason that the shipbreaker business is swamped - companies are dismantling ships they don't need...and most of the rest of them are sitting idle waiting for the off chance that somebody wants a delivery from China for something that is not an imaginary town funded with not imaginary credit in an imaginary economy. Now I know what Timmy Geithner and Bernake think they can accomplish at these G20 conspiriatory meetings.

Can someone please explain to me how a country with billions of people can grow at 10% in the middle of a depression? Even US banks with free money and congress in their pockets can't do it - but a country with billions of people and crashed export demand can actually come up with a growth number most companies in the world would be happy to have right now.

More lies = more lies and less confidence...any way you try to look at it I can not come up with one good way to spin this...I am sure that JPM will have a way and probably made a lot of money on that imaginary 10.3% growth china had on its imaginary balance sheet. More fundamentals we can rely on - amazing!

Value Added Tax and the bailout of US unfunded liabilities

...a brutal theft from all american's except the guys who stole the money in the first place.

This is not funny.

Oil Spill Propganda

June 10, 2010 - CBS marketwatch

Scientists studying how much crude BP PLC's blown oil well has poured into the Gulf of Mexico offered startlingly higher estimates Thursday than those noted earlier, perhaps topping 40,000 barrels a day.

 June 6, 2010 - New York Times

Government estimates put the daily flow rate at 12,000 to 19,000 barrels (or 840,000 to 798,000 gallons).

May 29, 2010  - m3 Financial Analysis

Maybe the US press can continue to promote the 5,000 barrels a day theory regarding our oil spill while suppressing professional testimony several weeks ago that suggests its more like 95,000 barrels a day. I wonder how many other facts are being managed... 

May 21, 2010 - m3 Financial Analysis /The Real News

Click for video regarding the oil spill in the gulf if you do not see it below its not 5,000 barrels a day leaking from the spill in the Gulf its 95,000. That's quite a big difference...I have not seen anything of that sort being discussed in the press.  

May 12, 2010 - New York Times

Two weeks ago, the government put out a round estimate of the size of the oil leak in the Gulf of Mexico: 5,000 barrels a day.

The figure of 5,000 barrels a day was hastily produced by government scientists in Seattle.

May 2010 - BP, General Media and Government

The flow rate at about 5,000 barrels, or 210,000 gallons, a day.

The reality just like Bernake and Obama etal think that by stretching lies out over an extended period of time they create a manageable lie and people do not notice...well, that is the approach with the BP distaster and not just from BP but with the specific assistance and manipulation of the media by the special interests and government...does this remind you of anything?