Seconds From Midnight ~ The Risk Averse Alert

Thursday, August 22, 2013

Seconds From Midnight

Who needs markets? Only a gaggle of hopelessly insolvent albatrosses desperate for suckers to whom to feed their fraudulently levitated garbage! You just can't do that when markets are closed.

In an era when a bunch of cave dwelling, monkey bar climbing, dog gassing, bearded fanatics who couldn't fly a kite prove capable of hijacking commercial jet aircraft, and with well-coordinated military precision not only ram these planes into major, steel structure buildings, but cause their catastrophic collapse through the burning of mere kerosene (albeit the "special" kind that burns for days on end), executing this operation in the front yard of a nation that spends more on its defense and intelligence than all other nations on earth combined, well, just about anything is possible. Finerman's observation that, a better day could not have been picked for NASDAQ's 3+ hour "glitch" disabling trading on the exchange is only the more interesting to ponder.

Still, anyone claiming "abundant investor confidence" brought the market zooming higher once NASDAQ opened late in the final hour of today's trading quite simply is a sucker. There's no other way to put it. Rather, this is one of those moments where a conviction claiming markets are "rigged" might be reasonably argued. "Yes, let's bid up shares we might not be able to sell tomorrow." What! Sorry, but the "logic" simply does not stir the Kool-Aid, particularly as deafening silence from NASDAQ persisted throughout the afternoon and straight into today's close. Anyone with a functioning braincell rather ought rightly be panicked!

It is, however, for the cause of appealing to suckers that, a manufactured melt-up on the back of what otherwise should be regarded a confidence-killing "glitch" might be necessary here if bailout junkies are to make the best of Confetti's dying days leading up to the Fed prospectively becoming more criminally "transparent" should Larry Summers get the nod as chairman. As flight from dollar-denominated assets is a real risk made only the more serious in the face of market dysfunction, the appeal to animal spirits a strong surge higher could incite, and so suppress memory of today's mysterious NASDAQ shutdown, seems a more credible possibility given the moment. Not to suggest this is likely, but simply a bit more probable. Trouble is very thinly capitalized, woefully vulnerable vested interests probably are in no position to get 'er done. There are only so many fingers on the hand which to plug still growing holes in the dam. If nothing else, we certainly could reasonably anticipate volatility's increase over coming days, though.

What do you know. The table is set. Volatility's increase appears a possibility whose likelihood already is heightened.

Bid away, suckers! Bankrupt garbage distributors surely possess an ample supply of wildly overpriced trash to last well into the 22nd century. Were only it possible to further leverage what must become by today's standards an even bigger pile of rubble presently forming the economic foundation of the United States of Make Work and Money Grab. Yet as we are now reduced to so-called authorities desperately talking down interest rates amidst the impossibility of ceasing the hyperinflationary flood driving rates higher, the hour obviously is late. Suckers claiming bounding confidence is driving markets higher even in the face of circumstance where there are no markets at all in which to carry out trading rather suggests we're seconds from midnight.

Word on the Street
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