On Course For Rendezvous With Liquid Swindle ~ The Risk Averse Alert

Friday, July 12, 2013

On Course For Rendezvous With Liquid Swindle

Apparently it was Spinning Fantastic Tales Day on Wall Street. From the Neo-Commodore to Laz Squeakirnyi to Ace Acampora, Pit Detective, frolicking on the green of the living dead (a.k.a. Capo Confetti) was the common thread weaving tales of a permanent plateau of prosperity a la 1929. This, of course, is the consequence of a bloated diet feasting on wildly mispriced garbage whose real cost is fast approaching the day when it must be paid in blood everywhere, not just in select locales.

Yet time's passage since Obama's and Boehner's knifing of the Fed Caesar a few weeks back seems to beg reinterpretation. Does the thing euphemistically called a capital market now solely run on the utterances of its core's marquee actors? Were these two simply pitching softballs to save the dollar from the abyss Confetti's policy is hurling it toward? Another "Mission Accomplished" immediately following this political assault on the Fed Caesar, and the coast then was clear to trot out a Confetti promising prodigious pain medication whenever parabolically rising indebtedness is threatened with collapse?

Well, there's only bad news for believers in central bank claptrap. Confetti is woefully trapped. Furthermore, Wall Street has no more "implicit guarantee" which to leverage to the teeth and generate a wad of fees recklessly exploiting an infinite multiplier—all appropriately hedged, of course, by thinly capitalized insurers. There are only lenders of last resort "all in" and now to show for it rising rates—the kiss of death—pressing on a gargantuan mountain of debt hoisted upon a collapsing physical economy, no less. Just how cheap is the talk of giants—be their message genuine (albeit quite possibly misguided) or just plain deceptive—should become clearer from here on out. Get ready for chaos, because it is knocking at the door...

Knock knock.

Who's there?


QE who?

Who cares! It was doomed from the first, if only by well-informed opinion, but following its second is well-founded evidence verily confirming that initial sense of the matter.

All things registering in the market's motion around the pivot marking the plunge into uncharted central bank activism—QE2—plainly present necessary volatility accompanying a well-liquified swindle. By all technical indications, extraordinary central bank actions wrapped in a heaping helping of sophistry solely intend to lull the crowd, and so, by design, too, we might furthermore conclude are predestined to lord over failure. Once again is this lesson evidently being set up by an ominous technical configuration raising probability of another market rendezvous with a well-liquified swindle.

Let's call this "controlled disintegration" still in action. as it has been since August 15, 1971 in particular. Indeed, Confetti gave his blessing for the next iteration the other day when he said, "If financial conditions were to tighten to the extent that they jeopardized the achievement of our inflation and employment objectives, then we would have to push back against that." In other words, go get 'em boys. Right on schedule, the Italian president hurried an unprecedented meeting with Ron Paul's hippie brother in a quest to deepen the euro-zone's swindle, we might reasonably suspect, particularly with Berlusconi now pointing toward the can.

We really should not forget the hippie has friends high up in trans-Atlantic financial circles, as did fascists of old in fact. Nor should we casually ignore astonishing pushback against these friends in high places whose Muslim Brotherhood swindle was just sent packing in Egypt. Times like these unexpected outcomes are bound to be a thriving trend. Of course, this is probability running on a two-way street, and so my advice is we push to nationalize the Fed in demand it finance the build out of the hydrogen economy. A friend of capitalism is a fascist foe because FDR and Lincoln before him proved the American System a prodigious provider of power to win wars, creating abundant capacity to sustain peace and fortify the promise of prosperity in the process. (Which, of course, hands down beats the permanent state of war and destruction—"controlled disintegration"—fascists and their imperialist sponsors are known to favor, still showing themselves unrequited demagogues of losing causes, from central banking to parliamentary government...)

Word on the Street
* * * * *
© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!