Friday, September 30, 2011

Today Was A Really Really Ugly Day For The Stock Market

One observation of note:  gold acutally rallied during the last few minutes of sell-off in the NYSE/Dow/SPX.  It should be disconcerting to technicians and bubbleheads that the market shit the bed like this on the last day of a quarter, which is usually used to make the markets look friendly.  In the after-market right now, the SPX futures are still selling off, while gold and silver grind higher...

Have a great weekend all.


  1. Hi Dave,

    Gold usually rallies on the end of the quarter. My suspicion is that the ECB is involved since they mark their gold to market every quarter. They need a high gold price otherwise their balancesheet looks even worse then it already does.

    Just my 2 cents

  2. U.S. States Seek to Break Financial Connection with Federal Government

    These adverse trends have been exacerbated by domestic politics. The rich have used their wealth to strengthen their grip on power. They pay for the expensive campaigns of presidents and congressmen, so presidents and congressmen help the rich – often at the expense of the rest of society. The same syndrome – in which the rich have gained control of the political system (or strengthened their control of it) – now afflicts many other countries.

    Yet there are some important signs around the world that people are fed up with governments that cater to the rich while ignoring everyone else. Start with the growing calls for greater social justice. The upheavals in Tunis and Cairo were first called the Arab Spring, because they seemed to be contained to the Arab world. But then we saw protests in Tel Aviv, Santiago, London, and now even in the US. These protests have called first and foremost for more inclusive politics, rather than the corrupt politics of oligarchy.

    5. The worsening condition of the real U.S. economy outside of large banks, multinational corporations, and Wall Street firms, where federal government bailouts and Federal Reserve monetary easing (money printing) transfer wealth from proverbial Main Street to literal Wall Street;

    6. The rapidly escalating polarization of the distribution of wealth, which threatens not only the economic stability of the United States but also its social and political stability; and

    7. The current, highly inflationary monetary system is plainly unfair and fundamentally immoral.

    The morally and literally bankrupt nature of the current U.S. financial system is transforming America into a dog-eat-dog society where every person seeks to live at the expense of someone else rather than by producing wealth, because production is systematically stolen by the federal government and by banks through the clever device of an inflationary monetary system. The monetary system operates by exchanging fictitious “wealth” (debt based money created out of thin air by private banks) for the real wealth of borrowers, i.e., the proceeds of their labor. In effect, the monetary system is a massive scam purported to be legal but lacking any demonstrable legal authority. Specifically, there is no Constitutional or other legal basis upon which the federal government can force a private monetary monopoly on the states. In fact, the Constitution of the United States explicitly establishes the exact opposite.

    The oversized banking system and federal government have grown in an unholy alliance in lock-step and now consume so much of the U.S. economy that, together, they not only pillage the real economy but threaten to kill, once and for all, what is left of the free country founded by the Declaration of Independence. The moral precedent and example set at the highest levels of the federal government and of the banking cartel is that profit, fame, success and wealth are (either directly or indirectly) rewards for immoral acts rather than for honesty in business. Moral corruption at the top–embedded in the very structure of the monetary system–has slowly spread its gangrenous effect, undermining totally the founding principles of the United States of America, enshrined in the Constitution of the United States and in the Bill of Rights. Rather than liberty, America’s legacy is fast becoming one of moral turpitude enshrined in financial injustice and oppression.

  3. Mark Ames: Koch, Hayek & “Ideas for Sale”

    Yesterday, Mark Ames and Yasha Levine revealed a scoop in The Nation about Charles Koch and Nobel prize economist Friedrich Hayek’s “secret love affair with Social Security.” Newly discovered private correspondence between Koch and Hayek, while appalling and hypocritical on its face, reveals a far deeper problem: the secret corruption of ideas that, behind a “Green Curtain” of payoffs, feed into our politics and damage our democracy.

  4. Hugo, did u see what metals did at the end of the 2nd quarter?

  5. (Dave)

    I am 100% certain that they hit the metals regardless of what part of the calendar we were in because 1) they want to get the prices down ahead of massive new money printing requirements in Europe AND here - especially here and 2) the big banks who are really short gold and silver on the Comex and LBMA want to get their shorts reduced AHEAD of such money printing. Assuming JPM/HSBC, the primary criminals in metals, shorted a lot of paper prior to two Thursdays ago, they booked some nice profits to offset the required mark to market losses on their entire metals short positions.

    If you look at the COT report for gold and silver, it has turned very very bullish, along with the massive physical buying that came into the market from India/Asia/Middle East since the price takedown.

  6. William,

    Yes, in US dollar (report from june 30th);

    ''After close numbers were finalized last session, gold and silver trends were green across the board''.... to finished the day over 1500 per ounce at 1510.40 per troy ounce.''

  7. Never cared for her until now:

    Actress, comedienne and now author Roseanne Barr shares her solution for dealing with the rich and how the banks could repay the money the U.S. government bailed them out with in 2008.

    "Part of my platform is, of course, the guilty must be punished and that we no longer let our children see their guilty leaders getting away with murder. Because it teaches children, you know, that they don't have to have any morals as long as they have guns and are bullies and I don't think that's a good message," Barr told Russia Today (RT).

    "I do say that I am in favor of the return of the guillotine and that is for the worst of the worst of the guilty.

  8. Martin Armstrong

  9. What Is Risked When Prosecution Is Absent

    I have long mused, in fact since the beginning of this blog, about one primary question:

    What happens when the people discern that the government is nothing more than a band of felons instead of the cops?

    Many considered this a rhetorical question. Those on the left sneered, those on the right looked at the argument and scoffed: Oh no, look, we busted Marco over there for drug running last week.

    Ah, you did, but Wachovia you did not "bust" in a criminal sense, even though they admitted in court that they ran drug money for criminal cartels.

    There was no prosecution. Instead there was a "deferred agreement", and the screaming in the media started only once it expired and criminal charges could no longer be brought.

    The Ticker, on the other hand, covered it long before that time. Few others did, and there was no mainstream coverage and demand for prosecution at all.

    The danger, as I have repeatedly pointed out, in the government's willful, intentional and repeated refusal to put an end to these abuses is that there is a point at which the people have had enough and will simply not sit for it any more, nor will they believe they can vote for a change and actually receive that change.

    How many people voted for "change" in 2008 yet did not receive it?

  10. Heard on the Street, by David Reilly
    from The Wall Street Journal
    Heard on the Street: Ghosts Could Be Lurk in Banking Machines

    As Europe wobbles, investors in U.S. banks are again trying desperately to figure out their euro-zone risks. A big problem is varied, sparse or confusing disclosure about derivatives exposures.

    "Mark-to-market 24/7? Where is the Fed, FDIC and/or Treasury. Risk is supposed to be audited by executives, directors, and regulators. There is so much irresponsibility that the system, like government itself, is evidently designed so that no one is responsible for malfeasance.

    Only a financial idiot, or someone using other' money, would make a trade where they can't measure the risk. Unfortunately, that's the point; the smartest guys in the room are nothing but slick peddlers with nice pedigrees.

    Too-big-to fail was the sole purpose by Clinton and Rubin for the 1994 interstate banking legislation and repeal of Glass-Steagall in 1999. How they both keep their fortunes and reputations is beyond reason."

  11. In new bombshell story, "Bloomberg Markets" reveals that Koch Industries sold petrochemical equipment to Iran and paid bribes in six countries

    This is Pulitzer-Prize territory. This article is destined to make large waves, not just because of the particular revelations, but also because of the highly impressive and almost surprising depth of reporting. It is obvious that no expense was spared for this article. Next to Jane Mayer's ground breaking piece about the Koch Brothers in the New Yorker, this article by Bloomberg Markets Magazine undoubtedly represents another PR-disaster for the Koch Brothers, and could also have severe consequences.

    Bloomberg Markets Magazine reveals in this article for example that:

  12. Consumer Debt

    There's no need for a "grand haircut" - there's just a need for the government to quit allowing the lies to continue onward in the balance sheets of pension funds, banks and others.

    You know, the "Kanjorski scam"? Yeah, that.

    Reverse that and it's over.

    Yes, we have to close banks if we do that. We have to admit the truth. We have to admit that pension funds who claimed 8% "growth" over long periods of time were pushing a pyramid scheme that was impossible to maintain and thus those "benefits" will not be paid.

    We have to admit that the claims made to retirees and soon-to-be-retirees as a sop to allow our "2% inflation" were also lies, and that we thus must stop institutionalized inflation.

    We have to admit that trees to do not grow to the sky and that the fundamental nature of exponents is that as long as debt grows faster than the economy you are in fact engaged in a pyramid scheme that must, mathematically, fail.

    And we must demand that those so-called "economists", central bankers and media personalities who pushed this meme for the last 30 years come on-air, in person, and apologize for running this scam and the damage it has done to our economy.

    Protect nobody except one group: Bank depositors under the FDIC limit.

    Everyone else? You made your bets, you loaned money to people when you bought their bonds, and you should face the consequences.
    The solution to this problem is simple, it is elegant, and it is mightily-resisted by the monied class, because they believe they're entitled to be protected from their own stupidity.