"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Friday, October 7, 2011

Take Shelter

You better prepare your shelter.  This storm is about to get heavy.  We all knew this was going to come upon at some point.  If an asset is toxic enough to poison a bank, then a whole group of them is enough to poison a country.  World governments have willfully bought terrible assets (basically pissed away other peoples money) and now they are stuck with no way of getting help.  The game of "hide-the-debt" is coming to a head.  You better prepare yourself.  Those who are caught off guard will have trouble trying to dump bad assets and buy goods ones.  Most alert players began this process years ago.  The greed of small investors will be their downfall.  The desire to make 40% on basic equity investments will blind them to negative news that should be given a premium.  Financial markets are uncertain, jittery, rigged, and drying up.  With each passing week it becomes harder and harder to trade/use paper currency, especially when many of us expect its value to literally disappear overnight.  Anyone with money in the game stands to be like Dick Fuld in the sense that he watched his paper wealth disappear.  Investors need to pick up real assets.  Turn the fake paper into something real.  I'm convinced that we are in a recession.  Speaking with investors yesterday at the office led to this conclusion as I reviewed charts in the morning and prepared.  Zero Hedge posted some sobering charts and here an extension to that list: