Thursday, August 2, 2012

Tea leaves

Jobless claims were up for last week, but the 4 week moving average continues to go down.

The people who read Federal Reserve minutes are claiming that the language has changed sufficiently to indicate that the Fed is poised to act in September. It seems there is a sort of central banker speak that they use to signal the lesser banks what they are about to do. That's so the peasants don't catch on. Like the Royals speaking in French instead of English. Personally, I think the only good way to predict what bankers are going to do in the future is to examine the entrails.

The right is incensed that the Fed might take some action in an election year. They don't mind that the Fed prints trillions of USD to bail out the Republican bankers. Apparently they'll let the banks go under in order to take down Obama. Not that the banks going under would hurt the super rich in the least. Rank and file Republicans don't get that they aren't in the too big to fail class.

4 comments:

Fake_William_Shatner said...

Your prediction mechanism intrigues me.

However shoddy your fortune telling reading the entrails,... it seems that the more fortune telling you do with the remains of bankers, the better the future will be.

Paul said...

I am still waiting for the complete collapse of our government. Or let me put it this way, my canned food is starting to rust. Some of my cans have succumbed to the cats spraying in my garage, but that's a whole other story. I do keep the cats around in case I run out of protein. I got you figured as a bear, but from what I know about bears is they can't wake up too early, no food to eat, etc. So far you've been out of bed a few years now. By the way I sold all my gold. That's the good news. The bad news is we short sold our house and moved into a mobile home. I've got some cash, but what to buy? I'll hold out for the banks to crash but when is that going to happen, next year, next decade? Patience is a virtue or a vice? I'm trying to stay in bed, but someone keeps pulling the fire alarm, is that you Bruce?

prairie2 said...

Paul, your situation is becoming all too common. No investment is truly safe in this environment. The big zombie banks only exist on cash flow. Their real assets won't cover their balance sheet, not even close. You can oil your cans and put them in plastic to protect from rust. Neuter the cats :) I'm not the guy who sold you gold, I don't claim to know the future. I'm just pointing out the realities we are living with. Ignoring the smoke detector because it interrupts your sleep is a plan, but....

Paul said...

Bruce, made money on the gold... Your advice was good on that one, its one the way down.. my guess is we need another 10 to 20 points lower on the unemployment roles before we see any protests/riots.. till then I'll keep my job what will Europe do to us when they crash?