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MORON Capitalism

Moron capitalism
By Julian Delasantellis 9-2-2009


Banks on the Brink

In the last report, I cautioned that stocks and bonds were falling together, and that this was a bad sign. Like clockwork, and in a pattern I now just call "Monday," there was a sustained campaign of buying in the stock futures pits by "somebody" with very deep pockets at the beginning of the week of February 2, 2009. However, I make the claim below that such price supporting behavior, if that's what it is, has an eventual date with failure and then move onto a list of banks that seem to be signaling that trouble is coming. » Read more


Biting the Hand that Feeds

In this report I explore a troubling (to me) set of statements made by Treasury Secretary nominee Timothy Geithner about China being a currency manipulator" and the possible impacts of adopting that stance.


Alert - Financial Stocks Signaling Fresh Trouble

Dear @profile_first,

This is an Alert. I send alerts infrequently and only when I think there’s significant chance of an event occurring that you can prepare for or undertake mitigating actions toward.

Every so often I “get that feeling” that something is not quite right. I have it in spades right now, and I am concerned that we are about to embark on a new leg down in the markets.

Of course, the markets are just a proxy, a signaling device letting us know the condition of the actual situation on the ground.

And the situation is, apparently, not good.

In many respects, this alert is a continuation of the report I put out back in November, where I was tracking the same companies found in this alert. I invite you to re-read this report in order to refresh your memory of the underlying issues and concerns. In it, I talk at length about most of the very same companies that are in this alert.

Several weeks back, I received a subscriber question about my level of concern over the possibility of a banking holiday, and I responded that my concern had diminished somewhat but had not gone away entirely.

That concern is now elevated again, because of slumping stock prices for several key financial companies. Further, there is some concern over what bonds, the dollar, and gold are ‘saying,’ because they are potentially confirming that there is big financial trouble brewing in the US.

My purpose in sending an alert is to give you actionable information ahead of time. As always, here are the immediate and simple steps you should take to mitigate any short-term hardship that a banking holiday might impose:

  • Keep cash out of the bank to cover a minimum of one (but preferably three) months' worth of living expenses.
  • Maintain a solid working inventory of essential household provisions.
  • Have physical gold in your direct possession (e.g., safety deposit box or equally safe location) not paper gold. I say hold gold because of the possibility that the US dollar will get mauled during a banking holiday and I view gold as a hedge against such losses.

Now for the data. » Read more