Central Banks’ Smoking Guns & Other Gmen Tomfoolery

Strong Buy
Strong Buy
Strong Buy
Strong Buy
Strong Buy
Strong Buy

Dear Contra_Folk,
Before settling into a new trading month of December, we shall pick up units of the above on our shopping list at today’s “jumpy” too bad to be true/ buy-out hyped Government Motors open.  Next up, military leave of absence and Unemployment Claim denial for union layoffs.

The Financial Crisis Inquiry Commission’s (FCIC) never rests as we all know, as it pretends to get to the bottom of it all… with a nice slow and measured pace, for the next hearing in October, or is it November, will do an excellent job of dragging on this kangaroo court investigation of itself – now into two years+ and counting…. oh, and Lehman-esque type discrimination still abounds. Audit. Audit, audit the Fedsury!

EuroCrap – German/FTSE/Paris’s productivity and business confidence gains, often unfounded of late, as they still cannot sell the same amount of luxury goods like BWM’s or Louis V.’s handbags to the Chinese that they used to sell to North Americans and elsewhere (x5) before the Deleveraging Depression started – no matter what the Euro/USD/Yuan exchange rate is, or what the Chinese government propaganda machine spews (Auto Sales up 60%) on new car sales vs. Vespa’s (moped) sales.  The transportation and congestion problems of the Far East is not lost, and especially on the lost productivity and social costs of one (luxury, or not) automobile, for it replaces in road volume, the space of eight (x8) motor scooters.

This at the same time when Government Motors announces new car sales volumes in North America and Asia at the lowest auto sales level in over twenty (20+) years.  This even after forced fleet purchases have all been completed two years’ ahead of schedule.

Now go public young man, go public.

No new jobs, no real final price inflation,,, just stall-speed disinflation today, heading towards deflation (Nat.Gas -35% in last 31 days…just as the Chinese want it), and 0% – 3% income yields for the next decade as taxpayers are looted by Gmen spending pre-paid middle class taxes to the benefit of a few big boys on WallStreet.

Employment will not return to pre-depression levels, or start at all this fall in this log-jammed congressional environment (on purpose to keep the big boys bank rate at 0% ?), but layoffs surely have already been ALL completed, for if a human could be replaced with a machine, it has already been done.

Stock buy backs add no shareholders value except keep the share price high with open standing bid orders and ultimately ends up just hiding management incompetence and deflecting operating losses, as neither do high-priced hostile mergers.  Stop the Madness!

If everything is so rosy C suite, why not just borrow at a tax-deductible 0%, and instead of using share prices as an acquisition currency, dividend it out to stockholders as a higher after-tax income streams,  and guess what would happen?

This would attract the investment capital seeking yield from all over the globe.  But what is interesting, is that this is not the Street’s plan (could really cause inflation), but rather the plan is keeping high-priced, hostile takeovers and mix-matched managements floating the markets sideways….but with an exciting, promotional sense of style.

Unsteady & Sure,


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.
This entry was posted in Business, Debasement, Economics, Investment Finance, Monetization, Quantitative Easing. Bookmark the permalink.

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