New Bear Sheriff In Town Is Out To Get Your Portfolio

May 22nd, 2012
in Gary's blogging

It simply amazes me that traders and investors alike are still trying to make their fortunes in today's market place. The 'sheeples' are bucking the trend believing everything they hear on Fox News, CNN and the 'Main Stream Neurosis Broadcasting Company' (MSNBC) financial talking-heads. Believe me the talking heads in the financial media aren’t very much concerned with your long term investing success. They only care about convincing you to stay in the market at all times and fixated to their analysis for the latest market movements.

And the FED's Keynesian motif of “look after the short term, and the long term will take care of itself” reigns supreme. The bottom line is that you are going to get screwed. Maybe not today, maybe sometime in the future, but it is going to happen and it won't be pretty. As my saying goes, “The only fools bigger than those that are playing in this market are those that think they are winning!” and “Amateurs may open the markets, but the crooks that proliferate manipulate it.” Folks, you are not going to win this one as this game is rigged. This may be your last chance to sell your dogs and get out of Dodge before the sheriff dressed in bear clothes grabs what's left of your portfolio.

Follow up:

Well I shouldn't be all gloom and doom and should tell you the good news. The good news is, the market managed to snap the losing streak, carving out a small gain in the last 2 sessions. Unfortunately, the bad news is, that's among the only good news there is.

Just read at Expresso that everything is going to be O.K. in Iran now because inspectors are being allowed in to inspect nuclear sites. How many time have we heard this BS before and how long do you think it will take Israel to send in the bombers? I am taking bets now on how long this new round of Iranian fairy tales is going to take translating into Hebrew.


The bear camp is firmly in control of the Crude Oil market at the moment, given the fact that economic projections continue to trend in the wrong direction and some of the geopolitical risks may be mitigated by Iran allowing Western inspectors into the nation. The US is not backing off of its call to keep sanctions on Iran, but may lose the backing of the international community if Iran is fully cooperative with the Western inspectors."

Behind the scenes at the White House, the Administration is desperately pleading with Israel to wait until AFTER the elections for any attack. Binyamin Netanyahu has probably told Obama, "You stiffed me once and this is payback".

Kiron Sarkar probably has it right calling for difficult times ahead. The 'Important Talking Heads' here in the US and those in the Eurozone are scrambling, back peddling and outright lying to cover the mess they created. Something like a dog scratching the grass to cover its poop. There isn't any amount of fancy talk that is going to make this financial mess go away as the EZ's problems, anxieties and relevant questions of repair are still there. And what's more, all of it still stinks.

Another difficult week for markets

  • Indian consumer prices rose by +10.36% in April YoY, as food prices increased, and higher than the +9.38% in March.

  • The Bank of Spain reported that bad loans increased by 1/3rd over the last year to E148bn (over 3 months late).

  • Spanish newspapers report that Spain’s 2011 budget deficit will be even higher than previously reported (increased to 8.91% of GDP), from the previous 8.5%.

  • April’s ECB data reveals that lending to Spanish banks rose by 16% or E36bn to a record E264bn, accounting for 69% of total ECB lending to EZ banks.

  • LCH Clearnet has raised the margin requirements on trading Spanish bonds. The news from Spain just gets worse and worse.

  • Deutsche bank state that Irish banks may need more capital to cover as much as E4bn of additional bad loans than that assumed in last years stress tests.

  • Bloomberg and the WSJ reports that JPM’s losses on its huge derivatives and other instruments may rise to US$5bn. A definite whoops.

  • In spite of stimulus measures, Brazil’s economic output declined by -0.35% in March MoM as opposed to a forecast of growth of +0.4% to +0.5%, making Brazil’s growth the 2nd slowest (after Argentina) in South America.

  • Copper prices have turned negative for the year – not a good sign, as copper is a leading global economic indicator.

I'll give you 80-40 odds the markets will be up tomorrow. What you say? Hey, if 'they' can manipulate the numbers, why can't I do it too?

To contact me with suggestions or deserved praise:

Written by Gary

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