Thursday, November 17, 2011

Some Thoughts On Current Events

The Markets:

For those that somewhat follow the markets it is obvious that volatility is the norm with 200 point pops and drops happening on a regular basis. The S&P hit a recent bottom of 1077 in October to then rally to 1290 and is now range bound bouncing between 1270 and 1215. The precious metals are in a tight trading range as they bounce and plunge from tightly defined ranges. Recent US economic data shows a upswing as initial jobless claims have come in under 400k for the past 3 weeks and regional manufacturing surveys have come in better than expected. For example, the Philly Fed Index plunged to -30 in September simply to bounce to +3 for the latest month. ISM data has also come in above the feared sub 50 point mark. Thus, the economy continues in stall speed while the demands of an exponential money system continue to put pressure on society. Grow or die, is the current meme. Yeah, well with WTI crude trading over $100 per barrel that's going to be a bit difficult.

The big story is the yield blow out in Europe as Spain has joined Italy and Greece in funding hell. Per Zerohedge, trillions of dollars worth of short term bonds will need to be issued in 2012, except this time with the market demanding much higher yields. For now the Wall Street crybabies are convinced the Germans will cave to the ponzi and permit the ECB to buy buy buy these wounded bonds, pushing yields lower and effectively kicking the can down the road for some time. Given Germany's fear of hyperinflation this will be a tough sell. However, because our modern liquidity system is so fucking fragile once the big banks start to sink they will panic and ultimately give in. Perhaps a 2500 point intraday selloff in the Dow will help change their minds. Yes, a debt crisis will be solved by issuing more debt LOL LOL.

The Law School Scam:

Not a week goes by without some news article being published on the woes of recent law grads. Nonetheless, prospective law students continue to believe that LS is a good investment. Incredible. While applications have fallen from their lofty heights there are still sufficient numbers of applicants willing to borrow the big bucks to have their chance at practicing law. If you fools only knew how terrible the job market is. Any prospective law student should check out JD Underground and see how real attorneys talk about the legal job market. The stories on the site will amaze you.

The OWS movement:

Cities and municipalities have lost their patience with the protesters and have begun their eviction actions. I expect a cool down during the winter months but a resumption of activities once the spring arrives. The fact remains that there simply aren't enough well paying jobs for recent grads owing mortgage sized student loans. I expect the class of 2012 to join in on the fun. Once the geezers start getting their entitlements cut expect to see them yelling and screaming as well. Of course the media will celebrate the lull in protest activity but these douches are to be ignored as their job is to perpetuate and serve the status quo at all costs. I've gotten to the point where I don't watch any mainstream "news" as their constant lies and obfuscations make me sick. Just today a co-worker told me that "the news said that the protesters are quitting because they haven't accomplished anything." Yes my dear, rely on their logic and reasoning. For those expecting quick results lets be clear that this is a battle between endemic corruption taking place in the superpower of the world. These criminals have the power to take down countries within weeks (read: Iraq, Afghanistan). They will not be uprooted overnight.


  1. I've been reading your blog for the past year but haven't commented until now. I just spent the last two hours of my evening obsessing over my student loan debt. I'm 28 and should be out of the woods with the motherload of them (20K) within 4 years. I'm a schmuck with a Biology degree making 40k in a lab but your blog makes me actually grateful to have a job where the outlook is semi-decent. You have an important message that although emotional at times, is impossible to ignore. Very few people in our age bracket get it and it's nice to think other people are putting together the pieces of the puzzle too. The majority of your posts are no bullshit about the market and the economy and there are few independent voices that will tell it like it is. Keep it up!

  2. Thanks Flyers, your support is greatly appreciated.


  4. If/when the Euro implodes, we'll see hyper-deflation.

  5. Subprime,

    Link you might find interesting about Law School reform. Pay students to quit...


  7. Santa Claus is coming this year dressed in black armed with pepper spray to collect on those law school loans.

  8. eToro is the #1 forex trading platform for rookie and established traders.


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