ANTIESTABLISHMENTARIAN

Finance, Fuel Prices, Economics, Markets

The Stock Markets Will Crash

The stock markets are getting ready to crash again. And this time around there will be nothing left with which to bail it out except for worthless digital dollars passed out by the Fed to the still insolvent banksters, the megabanks whose bankrupt condition congress allowed to paper over with fantasy asset values. This is a road well traveled and well mapped; it needs no further elaboration.

As I predicted, after the Massachusetts elections, the administration and congress appears to be doing an about face, turning on their masters and biting them. We will see mock inquisitions and show trials before congress, yet before the ink is dry on the Presidents proposals, analysts responses that the proposals are little more than window dressing are pouring out. It really matters not whether the they are serious about reigning in the robber barrons, or the masters of the universe as they are often derided. The damage will be done in the form of the psychology of the market.

The health of the markets is the same as the banks, for the health of the market is phonied up in the same way as bank balance sheets. The economy is not recovering, it is getting worse month by month. Government also cooks its own books. Corporate revenues continue to fall all the while reporting rosy profits. How can this be? They are cannibalizing themselves to create appearances of sound health, that’s how. Here’s the proof:

15 stocks in the S&p have a P/E of over 100

23 have a P/E over 60

67 a P/E over 30

150 a P/E over 20

125 a Negative P/E

The last 125 are no doubt correctly priced, but the first 255, more than half the S&P are grossly overpriced. During all prior recessions P/E’s averaged around 8:1. What is holding this market up are the banks and the Fed and not even they can levitate the markets indefinitely. Sooner or later something happens to topple the house of cards. You may recall there was no big event that sent the markets crashing in August ’07 when the mortgage ponzi scheme finally imploded. The powers that be stopped the crash in the midst of free fall by means of the same sort of fraud and chicanery that caused the collapse in the first place, notably endemic corruption. That halt was only temporary, it will resume in the form of the much predicted second leg down reminiscent of the 1930’s.

The events that will put the final crash in motion have already begun. The epicenter of the shock was Massachusetts last Tuesday. These are shock waves that will ripple around the world.

January 23, 2010 Posted by | Blowing Steam | , , , | Leave a comment

How Our Economy Works

This is how the “recovery” is engineered,

Oct. 14 (Bloomberg) — Some of Treasury Secretary Timothy Geithner’s closest aides, none of whom faced Senate confirmation, earned millions of dollars a year working for Goldman Sachs Group Inc., Citigroup Inc. and other Wall Street firms, according to financial disclosure forms.

The advisers include Gene Sperling, who last year took in $887,727 from Goldman Sachs and $158,000 for speeches mostly to financial companies, including the firm run by accused Ponzi scheme mastermind R. Allen Stanford. Another top aide, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund.

As part of Geithner’s kitchen cabinet, Sperling and Sachs wield influence behind the scenes at the Treasury Department, where they help oversee the $700 billion banking rescue and craft executive pay rules and the revamp of financial regulations.

The way to get ahead in this nation is to go to Washington with buckets of cash and buy whatever you need to ensure success. The rest of you can go pound salt. The place to be is in banking where success is guaranteed by the power of the U.S. government at all costs. If you don’t like the numbers, just change them and all will be well. Remember that at tax time.

October 14, 2009 Posted by | Blowing Steam | Leave a comment

Freedom In America

Here’s where we stand. In Bloomberg vs. The Federal Reserve, in which Bloomberg sued for the right of disclosure of whom the Fed was lending money to, the Fed has argued that:

Revealing the names of the Banks to whom it loaned money would cause irreparable harm to those banks and the nation.

Let’s see if we understand this correctly. The Fed is arguing that revelation of its loans would reveal that said banks were essentially insolvent and bankrupt; that it was essential that depositors and those doing business with aforesaid banks, not know the condition of the banks they are doing business with. This is the same policy of secrecy and underhandedness which they hold out for their own selves.

The Fed is the Don Corleone of the banking mafia. Time to put a horse’s head under its sheets.

August 28, 2009 Posted by | Blowing Steam | Leave a comment

The Looting Continues

The looting of the American taxpayer continues unabated giving rise to the new epithet, Obamanation, in which a White House ostensibly the champion of the little guy, aligns itself with the likes of Goldman Sacks and a lovely passel of foreign banks. The latest outrage:

July 17 (Bloomberg) — American International Group Inc.’s trading partners may force the insurer to bear the risk of losses on corporate loans and mortgages for years beyond the company’s expectations, complicating U.S. efforts to stabilize the firm, analysts said.

European banks including Societe Generale SA and BNP Paribas SA hold almost $200 billion in guarantees sold by New York-based AIG allowing the lenders to reduce the capital required for loss reserves. The firms may keep the contracts to hedge against declining assets rather than canceling them as AIG said it expects the banks to do, according to David Havens, managing director at investment bank Hexagon Securities LLC.

Kindly allow me to interpret that for you. Foreign banks hold anothe $200 billion of credit default swaps sold by AIG on crap loans made by those foreign banks. The crap loans of said foreign banks are going bad and they intend to collect on the swaps (credit insurance). The USG now effectively owns AIG and backstops its obligations. With what? With YOUR wallet, that’s what.

Meanwhile, the Obamanator is piling on the new taxes, with in excess one trillion alone for small business to foot the bill for socialized healthcare. Another couple trillion for his phony carbon tax. Meanwhile the USG is running in the red to the tune of $2.5 trillion annually, so let’s do a little rudimentary math here. The real economy, after we cut out all the trumped up window dressing called financial services, which add nothing to the economy but are rather a parasitic drain, is now around $8.5 trillion as opposed to the “headline” GDP of $12.5 trillion.

So, we got the USG sucking $4.5 trillion out of an $8.5 trillion economy, more than half.

Care to consider the prospects for a growing economy based on those numbers? The productive capital base of the United States is being sucked dry at an unprecidented rate.

July 17, 2009 Posted by | Blowing Steam | Leave a comment

California Issues Rubber Checks

Rubber checks, post-dated checks, worthless promises to pay, call them whatever you like, but the lunatic state of California is now trying to pay its bills with non-negotiable pieces of paper, mere promises. Its going to be very interesting to see how long this goes on since the state does not have the money to pay up on its promises.

Ah, such is life in la la land. This is the state that supports no borders and sanctuary cities where foreigners flocked by the millions to take advantage of the Hollywood liberal free lunch. Problem is, it isn’t free; somebody has to grow the food, manufacture the goods, and cook the lunch. Only in a state of pure fantasy can an economy function without money, and that is what the dreamy folks of the golden state have done, and are still trying to do.

California needs a new nickname. It should be called the freeloader state since it has spent the last 30 years pretending that you can have your cake and eat it too at virtually no cost. It gets away with this charade by passing the costs onto others in a myriad of disguised forms. But eventually, the suckers wise up and withdraw from the great game. That is now happening to California — the suckers are now pulling out enmasse, leaving the dreamy liberals to bask in the glories of their self-created utopia, albeit without tax revenues and the money to pay the bills.

Even so, they still haven’t woken up to the fact that delusions have consequences. They continue to beggar the nation to pay their bills for them. If nothing else, it makes for amusing entertainment. Will the state become the first to be taken over by the Feds? Nothing surprises me anymore.

And even though the state is flat ass broke, the rating agencies still give it a BBB rating when it should be FFF. That’s like an individual going bankrupt and defaulting on everything but still retaining a 760 FICA score. Nothing has changed, the same insanity and corruption that caused this mess continues full bore.

July 8, 2009 Posted by | Blowing Steam | Leave a comment

That Giant Sucking Sound

Just couldn’t resist pulling that old line from Ross Perot because its a good one. And very appropriate for the Obama and his wind-up doll over at the Treasury which is scheduled to attempt to sell $165 billion in increasingly worthless paper next week. As I’ve said before, you can’t suck this kind of money out of the economy without consequences, and before they’re done we’ll be talking trillions, not mere hundreds of billions.

With the bid to cover ratio at auctions steadily declining (meaning that there are fewer and fewer bids) there is one sure-fire way Banana Ben and Tiny Tim can perk up interest in buying bonds. Just collapse the stock market. Simply cease and desist with the non stop the “everything is getting better fast” propaganda, add a dash of doom and gloom and that will surely do the trick. For a little while anyway.

This is called having your cake and eating it too. Its what one does when one comes to the end of the rope with malfeasance, lies and corruption. You are reduced to demonstrating that you are a liar because the truth can no longer be hidden, not even from those most willing to be deceived. Indeed, the sis boom bah, rah, rah, rah media last week ran an unprecidented series of stinky headlines that today seem to be gaining traction; the green shoots suddenly wilted, turned brown and keeled over. And oddly enough, there were no major negative events, just the usual steady dribble of appalling economic data that hasn’t ceased since August 2007.

Problem is, sucking that much money out of the economy and handing it over to Washington to grease the political skids with, rips the heart out of system liquidity, so we will see the stock markets tanking for no apparent reason. Or at least no reason the government/media/Wall Street cabal will admit to.

But look on the bright side; wholesale gasoline just fell 10 cents today.

Welcome to state socialism, folks. Now you know what it feels like to be a Russian.

June 22, 2009 Posted by | Blowing Steam | Leave a comment

UAW Taho

Would you buy a car made by a union owned automaker? No, why not?

The unions destroyed the automakers and turned them into welfare agencies by means of force and threats. Automakers spend more for union health care than they do on the cost of building vehicles. Everyone denies that Barrack Obama is a Marxist, but he just proved it by turning over GM and Chrysler to the UAW with majority ownership by means of threats and intimidation.

As with the economy, the cause of the problem is deemed the means to fix it. I wouldn’t (and won’t) buy a union car and neither will you or anyone else. Case closed. Color the US auto industry dead, and the US along with it. Next our Marxist president will start in on oil and eliminate that. Next up universal, rationed healthcare for all, paid for by printing press dollars. And he’ll raise taxes some more and kill what’s left.

Next he will start in on the foreign automakers and force them to unionize. The cost of cars will go up and up until finally they can take it no more and leave the US. Forced to produce electric cars that no one wants and can’t afford (not the car, the $13,000 batteries), auto sales will be a fraction of what it is today. Travel by auto and associated industries account for 18% of GDP. But it won’t much matter because by that time riots and insurrection will have gutted most of America as Anglos battle Mexicans, Chinese, Arabs and other assorted recent arrivals for the few rare jobs that exist.

Free trade has gutted the US and will continue to do so at an accelerating rate due to a relentlessly deteriorating economy and rampant inflation that will result from uncontrolled government spending that will soon push the USG to 50% of GDP.

This nation is committing economic suicide, and the people getting hurt the most remain oblivious to the cause of their problems. The nanny state is no different than the communist state and neither are viable. Wealth is created by the production of goods. The US produces 15% of consumer goods, excluding food, and even that is declining rapidly. All the rest is a fraudulent Ponzi scheme that is rapidly unraveling.

Beyond that, there is little left to say. Our future should be clearly visible for anyone who cares to wake up from their American Dream. Its about to turn into a nightmare.

May 1, 2009 Posted by | Blowing Steam | Leave a comment

All About Bankers

Bumberg 4/24/09 – Executives and insiders at U.S. companies are taking advantage of the steepest stock market gains since 1938 to unload shares at the fastest pace since the start of the bear market.

fullshit

At this point, what else is there to say?

April 27, 2009 Posted by | Blowing Steam | Leave a comment

Wholey Owned by Wall Street

Just in case any of my readers think I’m a raving lunatic or right wing fanatic in claiming that DC is owned by the bankers:

Washington Post — Lawrence H. Summers, one of President Obama’s top economic advisers, collected roughly $5.2 million in compensation from hedge fund D.E. Shaw over the past year and was paid more than $2.7 million in speaking fees by several troubled Wall Street firms and other organizations. . . .

Financial institutions including JP Morgan Chase, Citigroup, Goldman Sachs, Lehman Brothers and Merrill Lynch paid Summers for speaking appearances in 2008. Fees ranged from $45,000 for a Nov. 12 Merrill Lynch appearance to $135,000 for an April 16 visit to Goldman Sachs, according to his disclosure form.

Bought and paid for. Any further questions?

April 6, 2009 Posted by | Blowing Steam | Leave a comment

Wall Street: Engineering Insurrection

You don’t much see it on the news, for the MSM, which is deeply linked to Wall Street Finaciers (a la G.E. Credit, et. al.) but the vitriolic hatred of Wall Street is simmering and about to become a boil. If you’d like to get an eyefull, try googling “wall street bastards,” for one. Or try “dear wall street” and check out the outpouring of sentiment. Much of it is quite vile, understandably so. But it also quite dangerous, and yet the Wall Street (and Raleigh) criminals are either oblivious or think they’re untouchable. I got news for them, they aren’t. Emails sent with threats of strangulation with piano wire are tame compared with the bulk of what is spreading around the internet like wildfire.

TinyTim Geithner’s latest bail out plan to remove toxic assets from bank balance sheets is just one more in a long line of criminal scams against the American public. Number ten, to be exact. And as always, the bullshit is twenty feet deep about “protecting the taxpayer” when in fact there is no protection and no intention to protect whatsoever. What is so surprising is the incredible arrogance revealed by the pathetically thin veneer that disguises these looting schemes. Within hours, the contrarian media lays them bare and reveals the reality of such scams for what they are: outright theivery.

TinyTim’s latest plan, announced to congress two months ago with virtually no details, now turns up as a complicated scheme to both enrich not only the banksters but hedge funds as well. It is just one more instance where you and I will be forced to pay – no, correction, robbed to pay, mainly because if you refuse men with badges and guns will show up at your home or office to make sure that you will pay, by force if necessary.

Here’s one good reason why the lives of the financial mafia may be in danger. This piece of crap was written by an Exec VP of AIG by the name of Jake DeSantis and published in the NYT. It is enough to make you sick, and more than enough to motivate the more hateful and unstable among us to do that which we see so often in the news these day. To wit, grab some guns and go out shooting.

Mr. De Santis claims he did nothing wrong, and that he slaved away working 12, 14 hours a day at self-less service to AIG only to be betrayed. Worked in the Financial Products Division as an Exec, the very division that nearly blew up the world. The letter is long and the following are selected paragraphs.

I am proud of everything I have done for the commodity and equity divisions of A.I.G.-F.P. I was in no way involved in – or responsible for – the credit default swap transactions that have hamstrung A.I.G. Nor were more than a handful of the 400 current employees of A.I.G.-F.P. Most of those responsible have left the company and have conspicuously escaped the public outrage.

After 12 months of hard work dismantling the company – during which A.I.G. reassured us many times we would be rewarded in March 2009 – we in the financial products unit have been betrayed by A.I.G. and are being unfairly persecuted by elected officials. In response to this, I will now leave the company and donate my entire post-tax retention payment to those suffering from the global economic downturn. My intent is to keep none of the money myself.

I take this action after 11 years of dedicated, honorable service to A.I.G. I can no longer effectively perform my duties in this dysfunctional environment, nor am I being paid to do so. Like you, I was asked to work for an annual salary of $1, and I agreed out of a sense of duty to the company and to the public officials who have come to its aid. Having now been let down by both, I can no longer justify spending 10, 12, 14 hours a day away from my family for the benefit of those who have let me down.

My Comment: Of course you didn’t know anything about it; nobody did, it was all done by ghosts in the middle of the night.

I have the utmost respect for the civic duty that you are now performing at A.I.G. You are as blameless for these credit default swap losses as I am. You answered your country’s call and you are taking a tremendous beating for it.

But you also are aware that most of the employees of your financial products unit had nothing to do with the large losses. And I am disappointed and frustrated over your lack of support for us. I and many others in the unit feel betrayed that you failed to stand up for us in the face of untrue and unfair accusations from certain members of Congress last Wednesday and from the press over our retention payments, and that you didn’t defend us against the baseless and reckless comments made by the attorneys general of New York and Connecticut.

My Comment: Yes, but you couldn’t possibly be an exec in the same department for all those years and not know what was going on. The problem, you see, is that you and everyone else there, and in all other such criminal organizations, are raking in the huge bucks and so you turn a blind eye to what is going on. Then, when the rope slips around your neck, you start shouting the “poor me’s.”

That is why I have decided to donate 100 percent of the effective after-tax proceeds of my retention payment directly to organizations that are helping people who are suffering from the global downturn. This is not a tax-deduction gimmick; I simply believe that I at least deserve to dictate how my earnings are spent, and do not want to see them disappear back into the obscurity of A.I.G.’s or the federal government’s budget. Our earnings have caused such a distraction for so many from the more pressing issues our country faces, and I would like to see my share of it benefit those truly in need. On March 16 I received a payment from A.I.G. amounting to $742,006.40, after taxes . . . . .

My Comment: And so how was it, sir, that a bankrupt AIG was paying out multi-million dollar bonuses? Of course, you never asked, “with whose money?”

“Decided” to donate? Hah! that was only after congress decided they were calling out the men with the badges and guns, Mr. De Santis. Your phoniness is all too transparent, you crook. Let’s see now, after taxes, so your gross was probably about a million-five. What a pittance for slaving away in the back rooms, unnoticed and unappreciated. When you are in that kind of pay bracket, there is no such thing as loyalty. You work in a pit full of vipers whom you never dare turn your back on. And then you publicly turn yourself into a sniveling whiner? No sale, you sanctimonious viper.

But for taxpayer support, your job would have ceased 18 months ago. And whether the people start coming after you with piano wire or molotov cocktails, you will, of course, be equally surprised. But no one else will. You are truly a man blinded by greed, though by no means the worst of the lot. You just made the mistake of public whining, and thereby making a target of yourself. What you did pretty well demonstrates your self-centeredness, lack of discretion and ethics that you tried to hang your hat on. That was just plain stupid.

If the rest of the AIG execs are as imprudent and foolish as you, no wonder AIG is where it is today.

March 26, 2009 Posted by | Blowing Steam | Leave a comment