Monday, September 29, 2008



Gary Miller, Republican Calif: " Calls coming in 100 to 1 against, but my constituents don't understand the complexity of this like we do here in Congress....We must vote yes for this"

Thursday, September 25, 2008

Why It Does NOT Pay to be PRIME borrowers:

As of 9/18, the difference is about 0.07%. Why do you want to be a "good boy" again?

Oh, that's right, you don't.

FHA market share has skyrocketed to 35% this month!

Sunday, September 21, 2008

new small business ideas

I want to start a small business where I can be a trustee of people moving money out of this country but want full discretion from EVERYONE. The fee is 1% flat, 0.25% upfront and 0.75% after completion. I can setup an agreement where I will be the manager with no discretionary other than sovereign obligation of X,Y, and Z for example. The fee is for life or until my duty is terminated, at which point I will perform the final obligation of repatriating the currency back into USA, also at the same discretion level when the $ went out. This is very likely the largest money maker out there in the next 2 years.

Thursday, September 18, 2008

For inspiration:

You know what I mean. Get ready:

This is from CNN:

" The administration is contemplating hiring a private investment manager to run the mortgage vehicle. "

Bingo. And yet Mtgspy will not be ex-Mtgspy anytime soon.

About RTC:

How can you promise to lend money you don't have? That's mostly the question I'd ask the US government.

Do you print? Basically assign new bonds with nothing backing it/no collateral?

Do you ROB some entities that has money to pay those that don't? How? Taxes? More GSE thuggeries? Or by force liquidate a few mega hedgefunds by accusing them of something?

Anyway, I feel the two news today just don't have bones:

RTC: Yes, it's interesting, but who's got money?
No short-selling: This will be self destruct button. No hedge, no demand for your stock. Also technically you cannot count on any price discovery anymore. The volatility will be epic, and they will happen for NO reason at all.

This is not a rocket science and I am sure someone with a couple of braincells would find those questions reasonable to ask but will find any "solution" unreasonable.

So, no more Shorting, eh?

This will end badly, but let the panic short covering begins. I agree life is gonna get bad for short if that's allowed but then the market is over anyway. Well, 80% of money in the bank so no complaint for me, will hedge and opportunistically get out with time.

Saturday, September 13, 2008

Odes to Deflationary Motherland

How do you know gold have values?

Because you CASH them out to pay for BK cheeseburgers, RIGHT?

Now, get thinking. In STRONG deflationary system, why would people set aside CASH to pay for non-necessities?

GLD can increase in price when CASH can be set aside and support its price just because it's an alternative investment and it made sense to diversify.

Suppose you say, NAY, this NOT going to be deflationary? HELICOPTER BEN says it so in HIS PAPER.

In a late night supper, Ben sat down with me and told me people should evaluate that in the context of 2001 economy.

YES, there was a MINOR deflation, and it WAS VERY BAD. Much much much worse than say, a small overinflation.

At the time, he would contend and I agree, houses were 10-20% below fair value. That would translate to 1-2T HELICOPTER DROP now, would it? So long as people were made aware with the government support such as Freddie and Fannie.

Were houses really up 10-20% after that, OR was it up more like 100-200%?

Ben closed the comment by saying he was indeed looking at a B-2 bomber strikes as opposed to a surgical Apache driveby he wanted to execute. And now he is just gonna have to do his best to minimize the damage as the economy DEFLATES.

That means no gold bar for you, no Potash, and you shouldn't think bartering with oil when the s* hits the fan.

Here's the song for you to enjoy while lovely gazing that hunk of Potash you put in the living room:

Friday, September 12, 2008

You should support BAILOUTS!

Hard as it maybe to believe, the Federal Reserve is most likely on the side of the little guys and short sellers.

They don't need to rob or fade you, no.

"Federal Reserve is in the business of Moral Hazard" says one of the Fed president.

What they do is sell their "TALKS" and encourage the BIG guys ($1B+ investors) to put in money in the market so the economy runs.

Now, as a bear you MUST cherish this. There is NO place in the market in which upon putting money in CAN YOU expect to see it EVER AGAIN.

In fact, the stampede out will be legendary as this GDII of ours unfolds.

The fed is YOUR friend, as Ben has been a good friend of mine as we shorted DSL together back in the days.

They will as, the SHAMANS of the stone ages, lead the elephants to the narrow valleys, where you, my dearest CROMAGNONs, will savagely murder the beasts and enjoy their bountiful, juicy MAMMOTH burger.

Have a good weekend.

Wednesday, September 3, 2008

Learning Chinese ...

is the New Green.
Red is the New Green.
Red is the New Green.
Red is the New Green.
Red is the New Green.
Red is the New Green.

I think this has a therapeutic effect on my mind, at least as soothing as the sound of the water rushing down the waterfall just right ahead my boat. You should do the same, it's really just like yoga you know.