No Private Money to Lend … Just Federal

“Glitchers” Given Notice

Dear Contra_Folk,

Notice is hereby given that change is in the air… and that cash is king, and that cash will be good as gold or silver coins buried in your backyard under the two crossed palm trees…during periods of confiscation. For it is no longer what you make on your money that is important these days, it is finding ways and strategies to protect and just plain keep its purchasing power in the pending deflationary decade ahead.

If It’s Worth Doing, Do It Right or Not at All

FinReg does nothing but make uncertainty a long and costly certainty. TBTF is still alive and well for a long, long time. Underfunded present and future entitlements and leveraged banks from Dick & Barney’s decade old congressional leadership from within Fannie and Freddie luckily avoided any legislative change with the soon signed and passed Barney Rubble Bill. So the Robbers are now busy telling the fine devil details to the Legislative Cops on the self-regulating environment beat as to how they plan to stop themselves from going over the edge, once again.

Markets Not Allowed To Be… Markets

Problem results in that if you do not change the “glitched game”, nobody goes online to game anymore. With no Gamers online anymore, resources do not get to where they need to be deployed effectively, and efficiently, and most importantly… to restart end user demand. So running the futures markets, and jumping time zones to push opens and drop closes are just trying to keep the weekly pension plan “deposits” forthcoming.

Austerity MegaBytes 

So things do not change as they must, or should, and you can guess down Main street things do not get any better while Corporates unproductively hoard and stash idle cash for decades, all while intent on holding back uncontrolled change through little-guy led entrepreneurial initiatives, and instead optioning an income stream from a 30:1 leveraged barbel midterm duration of 10/30s now holding two years+ and accounting for EPS growth.

Fog Clears As Dark Clouds Appear

For now even the “Little Guy” now sees through the veil of false, fake, and manipulated über propaganda, of a seemingly never-ending Global Depression, mimicked by media as a string of double-dip recessions that depict lies of improvement that lay somewhere just over the next election hill.

Small business is our priority now (not back then) – and “they” need tax cuts to help during these tough times, so the Dow 30 Big Business dumbs down to make several new and small subsidiaries to gain unencumbered and unrestricted access to taxpayer loopholes to seize and exploit all small business tax code advantages for 2011/12 calendar year-ends.

Hamster Wheel Method of The Public Relations Loop

Nuke it & order a Cap on this Well, once and for all … and yes forget salvaging $75 a millisecond on barrels of recovered resources. Speaking of a nation’s other most precious resource, for now, like three or five years ago, there still does not seem to be any new, well-paying, continuous employment for 80% of the 30% presently underemployed, and for the other 20% discouraged worker types either. So last quarter banks pad earnings with less loss provisions but how can things like houses go up, and loan losses go down, when unemployment and stagnation is the status quo?

Citigroup, JP, and BofA added back into income $B’s in future losses deemed unlikely to be realized near term. Notice that GS paid a paltry $550M fine to US Gov, but Citi ($404M), JP Morgan ($550M), BofA ($425M) together paid the UK authorities a combined $1.4B in one a one time payment from anyone receiving over $40K bonus in UK Ibonker tax sweep.

Accounting…What a Ponzi Game.

But tomorrow the auto workers union member local 666, who was let go by Obama after the shut down of GM dealerships and plants in 2008, has been very fortunate to have already had three extensions to their taxpayer (non-funded) UI donations on their watch, and so it is time to spread the wealth from Union-Only Unemployment benefits to more wide-ranging and systemic entrepreneurial initiatives instead of pandering to the blooming onions.

For there are millions of unemployed non-union workers from 2008, that to this day, have suffered, and have not received a single dollar of taxpayer funding for unemployment. What about them nice family folks, two years later and counting…?

P/E Multiples = Lies based upon Manipulated Accounting Principles and Fluctuating Disclosure Standards

Not that we need to extend for a fourth time, but the unemployment claims of Obama’s unions now into 99 weeks of pay, without any method to pay for such donations from the rich, who by the way, also demand corporate tax cuts and extension to Bushy tax cuts to the rich during these years of unabated stimulus requests for handouts and extension of military services globally.

All Money Flows Globally Have TIC Issues

Summer nights nonetheless shall still be spent enjoying reading & watching of the “slow & steady” no-growth PR spin given by either party representing global G-men (always controlled by the Empire’s leash) who will not rest as they are too busy running around the global attempting to organize capital markets by justifying non-existent “green shoots” than to organize, direct or lead, reinvent and lastly, reallocate as necessary to promote private demand.

For the last few months have been, and will continue to be, an exercise in stalling the hands of time, allowing leaked and anonymous code to be digested, as directed by the Ibonkers. By manipulating many forms of business media, fake and doctored “data points” hopefully are believed to be true by the Masses, and not to be understood to be just the “fictional correlations” of the day in the life of jigged global stock markets – that they truly represent.

Damn You Efficient Market Theiss – Tell Me Another Lie as To Why?

The Empire now has large equity holdings, but nobody has any confidence to buy those equities back from the Gmen of the Empire. Securitization are on hold. Companies don’t hold corp. securities anymore, T-Bills & cash only, and the individual investor has left the building many flash crashes ago, and even day trading hedge funds have put the index on two weeks notice.

The only Gamers left in town are the “long only” dumb closet index hugging for 2.758% pension plans, investing/speculating with weekly member contributions, and slowly buying stock back from the Evil Empire at inflated prices. For until the middle class wises up to this fact, and halts the mandated repurchase of mispriced assets, they will be continue to be routed forever into an ocean slick of permanent pension deficits.

Defined Benefit Pension Plans (DBPP) Are Fine…, Until You Run Out Of Other People’s Money!

As proof, the last six years of a stark and depressed levels of economic stagnation of the lower and middle class suggest, true economic reality has been one of unrelenting demand destruction in the West, with bank deleveraging and housing ATM bubbles deflating, and soon choppy, uneven economic spurts even into the East.

Remembering that the East is developing… and that global currency rates are used like an oil blow-out preventer – to avoid local unrest over inflation and deflationary forces in local marketplaces. Rice is subsidized in the East by the prices paid in the West. Soon, that too will change.

So $10US in the developed world is worth $100,000ADR in the undeveloped world, a world where that a beer still locally costs $1.25US and a quality meal costs under $2USD per person. In the end, you die-hard Ibonker -Kudlow type capitalistic lovers need to sell 5 times as much into the East, in the future, somewhere, somehow, to equal, one existing sale or customer you presently have in the West. One good customer that is now equity tapped out.

Large Debt Levels Are Supported Fine with Continuous Cashflows

This lag effect is the big problem… a problem that requires the hands of time to solve. It will not happen in quarters, or before midterms, but most likely in a decade, or even two if things really slow, for nobody is exiting the stock market without any help from the buy side bid on the trade.

Navigating Liquidity Traps,



About ContraManFund

Fictional (maybe not if you are an accredited investor) trading of a long/short contrarian-driven investment model portfolio based upon current economic environments and counter-intuitive trends. Legal Disclaimer The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES. The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. Please consult your own investment advisor before making any investments anywhere, and always do your own due diligence before undertaking any individual investment.
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