Razor Thin Confidence Confirmed ~ The Risk Averse Alert

Tuesday, November 06, 2012

Razor Thin Confidence Confirmed

Ever so competitive, the non-unionized garbage collectors of New York apparently insist on proving to their very busy unionized counterparts whose volume of business is off the charts solely on account of gross political negligence (the likes of which has been proven in Providence, RI by way of Hurricane Sandy to be strictly a matter of woeful incompetence in the matter of sound, dedicated investment in physical economy), that fantasy, too, is as much the stuff making one man's trash another man's treasure as was the record storm surge that smashed into coastal areas of Northeastern United States last week. That today's lift largely was due to a concerted effort to treasure trash was revealed by an utter lack of leadership behind the advance, a matter of circumstance otherwise considered a desirable state of affairs by a fascist, union busting crowd desperate to mask its own utter financial (and moral) bankruptcy, whose vain efforts, too, will by no means be deterred by either presidential candidate, no matter which gets the nod tonight from a tragically dumbed down American electorate...


Good god. Undoubtedly among today's diminishing list of leaders were the Fed's crippled coterie of banks and financials whose heavily subsidized state of masked insolvency faces no serious challenge at the polls: a matter of fact probably in no small part behind the market's rally since June whose positive impact has been particularly favorable to these two groups (Banks +27.5%, Financials +24.4%, S&P 500 +16.4%).

Yet confidence is a fickle thing, isn't that right Bernice. Yes indeed, at least judging by the fading fanfare for equities following the Fed's financial system subsidy press via QE3.

Per this matter of confidence intractably crushed following 2008's collapse of Adam Smith's Leveraged Ponzi Scheme, one is well-advised to note that, the greater portion of losses in percentage terms to such darlings as JPM, WFC, BAC, C, GE and other widely held hostages to a generously greased debt trap occurred during the first two months of 2009 when the myriad of ill-conceived bailouts were well-along in their formulation, rather than in 2008 when the broad market was being trashed. The lesson here is that, desperately trapped lenders of last resort in fact offer no stopgap capable of forever forestalling a great financial reckoning precipitated by too much debt chasing too little real wealth creation. In other words, razor thin confidence simply cannot be papered over. Today's turkey goose only yet again confirms this.

Word on the Street
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