Been a while since I posted on the law school scam but here goes.
Across the country approximately 50,000 students have begun their law school education. Congratulations, idiots! You couldn't have picked a worse time in recent US history to attend law school as you're all buying into a overpriced product with little in potential yield. Back in the fall of 2006 when my class was beginning we at least had a booming economy (or so we thought) as a backdrop in support of our decisions. Scam blogs did not exist and the mainstream media was in love with law schools. Enter 2011 and there is a world of notice that attending law school at the present time is a terrible financial decision.
By simply googling "law school" you will see link after link trashing American law schools as a scam and a ripoff. Even conservative articles question the decision to attend law school at these nosebleed prices. JD Underground has been trashing law schools for years but most recently the word has spread to Top Law School Forums, a place where the lemmings congregate and discuss their futures as biglaw associates working on complex matters regarding intergalactic trade between the Milky Way and Andromeda galaxies. But let me tell you inter-galactic space law is thought provoking and challenging. Han Solo was at my latest deposition and was telling me how the black-hole quasar Appeals Court was introducing new methods to assist with different languages amongst attorneys from different worlds. It was great.
Back to reality. In three years from now after you have graduated and taken the lovely bar exam, you will begin to get your first loan payment letter. And you better have the money otherwise you will be stuck in the terrible hell of student loan default where your credit will get shot and the only car loan you can dream of getting qualified for will be for one with 20% interest. Of course there is the option of IBR, but do realize that the government only subsidizes federal loans, not private loans. If you ever do make decent money, expect to pay a monster principal as the interest accrues during hard times. The other day I spoke with a old classmate that had his loans down to 80k, hit a 2 year rough patch of unemployment, and is now staring at 200k in debt. There goes any dream of buying a house or a decent car.
So have fun reading about the rule of perpetuities and future interests. Don't forget about the fun stuff you will learn in Civil Procedure I with "personal jurisdiction" being a personal favorite. The next time I file a rear end complaint I will add that personal jurisdiction requirements have been satisfied, in honor of you law school lemmings that will further enrich the pockets of the greedy professorship which thrives off your ignorance. And the next time you cower in fear over being "called" in class on a case, try reading lawprof's blog as he clearly states that half of them don't know much more about the subject they are teaching other than the information on the outline they have been reading from for the past decade.
For those that are attending the lower tiered schools with no scholarships or financial backing, you are by far the biggest retards of all. Have fun graduating with over $150,000.00 in debt with absolutely horrid job prospects. If you haven't taken your heads out of your asses, three law schools have already been sued in class action lawsuits for fraud and cooking the books re employment data and there will be more to follow. Surely you say to yourselves "well they must be losers, I am different and will succeed." Sure, some of you will, but many will join the dustbin of student loan default hell and in the end you will join the rest of us in bashing the system. I'm confident by the time you graduate that the law school cartel will be in complete disarray as federal funding will get cut when it is widely known that default rates at this third tier toilets are north of 30 percent, if not more.
Most of the members of my class did not have notice. You young fools on the other hand have a world of it. Just open your eyes and do some simple research and see that if you have to finance law school, especially a lower tiered one, you are not only wasting your precious time, but also are risking your financial and emotional well-being. All for what, to have your chance in the courtroom? Or to work as a director at a Fortune 500 company supported by your law school credentials? Give me fucking break. Instead, you will probably work on the low end of the legal caste system, not that there is anything necessarily wrong with that but with debt north of 150k you wont be able to pay back your loans. In fact, the only salvation this class will have is if the loans are obliterated in hyperinflation which high priest Bernanke may possibly bring upon us with his madness. But even then you will have wasted your time as demand for legal services in this country will continue to fall.
Congratulations for buying at the very top of the law school bubble. But there is still time to get the fuck out of the law school trap. Some will run for their lives. Most will stay. Economic Darwinism is at play motherfuckers.
You have been warned
Subprime JD: A blog dedicated to exposing the law school and higher education scam.
Tuesday, August 30, 2011
Saturday, August 20, 2011
The dollar bubble
Most recently the gold bears are coming out bashing gold saying it's a bubble which is going to blow up in the gold bugs face. Wells Fargo came out this week claiming gold is in a bubble and that investors should look to "cashing" in their gains. On a technical basis sure gold looks very bubbly but fundamentals are at play in this specific situation. Quoting Doug Casey on Forbes:
I hate encouraging people to buy gold at $1,800 an ounce, because that level is already more than 700% above the bottom in 2001, and I’m a bottom fisher. I like bargains, and I can’t call gold a bargain today. But it’s plain as day that gold is going to go higher. There’s simply no other place for people to try to safeguard their wealth as the dollar, euro, and other currencies plummet toward their intrinsic values. What else could people buy as they get more and more afraid of paper currencies losing acceptance? What are corporations going to do with the billions of dollars in their treasuries when their management gets frightened? Where else can they go when they need to get rid of dollars, euro, yen, and yuan? Central banks, too – what will they do when they need to dump dollars in favor of something that will hold value?
This is why I see a bubble in gold still ahead. It has nothing to do with the supply and demand for gold in the jewelry trade, or whatever – it’s going to be a result of there being no viable alternatives when the paper-money con game is over. Gold is the ultimate cash, and that’s where people will go when there’s a global, total, panic to cash.
Mr. Casey says it best that gold is the ultimate cash while paper cash is simply trash. I agree with this assessment as dollars can be created by fiat while gold has to be mined. In the end its simply a store of value and nothing more.
Now what if the store of value that the world has relied on is in a bubble? Right now there is some crazy shit happening in the markets with gold and treasury bonds moving in the same direction. This week we saw record lows in the 10 year treasury AND a record high in the price of gold. Remember that bond prices and yields have an inverse relationship. This week the 10 year yield hit 1.97%, just as I had called a few weeks ago on this blog (that we would see sub 2% on the 10 yr). Now also recall that a good 10 trillion dollars worth of US government debt is in existence and the vast majority of these bonds have gone up in face value. While we are currently following Japan with its incredibly high level of government debt and low yields I believe this trend will reverse itself as over 8 trillion dollars are held overseas. The total cumulative trade deficit of the United States since 1975 totals over 8 trillion. With a 600 billion annual trade deficit this number will continue to grow. Throw in a massive 1.5 trillion dollar annual federal deficit and what we get is a recipe for a dollar catastrophe.
In 2008 when global stock markets cratered there was a knee jerk flight to safety in the US dollar as the US dollar index popped from 72 to 89. Fast forward to 2011; stock markets have fallen close to 30% globally and the dollar index languishes at all time lows of 73 while gold surges to 1850. Something has obviously changed. Bonds continue to rally with rates at historic lows. Eventually, gold or bonds will crash. I expect a volatile battle between the two as the powers that be obviously favor the strength of treasuries over the strength of that evil barbaric gold. I expect the authorities to implement a punitive capital gains tax on gold to bring down the price but in the end reality will win as it always does.
Gold and dollars are essentially the same thing: a store of value. Except you can't print gold at will. I refuse to put a timetable on when the dollar bubble will burst but when it does the American standard of living will crash and burn alongside the dollar. And this is when the real pain will begin. Not that it signifies the end of the world but it will signify the end of life in America as we knew it. As Americans have been afforded the opportunity to live above their means for the past three decades, we will be forced to live below our means, for possibly the same amount of time. One silver lining out of this mess will be a wealth transfer from creditors to debtors as a dollar devaluation will free millions of student loan borrowers from the chains of debt serfdom. Those who hold their wealth in paper dollars have been put on sufficient notice of the risks involved with holding paper dollars. Fuck it, let the wealth adjustment begin. The sooner the better.
I hate encouraging people to buy gold at $1,800 an ounce, because that level is already more than 700% above the bottom in 2001, and I’m a bottom fisher. I like bargains, and I can’t call gold a bargain today. But it’s plain as day that gold is going to go higher. There’s simply no other place for people to try to safeguard their wealth as the dollar, euro, and other currencies plummet toward their intrinsic values. What else could people buy as they get more and more afraid of paper currencies losing acceptance? What are corporations going to do with the billions of dollars in their treasuries when their management gets frightened? Where else can they go when they need to get rid of dollars, euro, yen, and yuan? Central banks, too – what will they do when they need to dump dollars in favor of something that will hold value?
This is why I see a bubble in gold still ahead. It has nothing to do with the supply and demand for gold in the jewelry trade, or whatever – it’s going to be a result of there being no viable alternatives when the paper-money con game is over. Gold is the ultimate cash, and that’s where people will go when there’s a global, total, panic to cash.
Mr. Casey says it best that gold is the ultimate cash while paper cash is simply trash. I agree with this assessment as dollars can be created by fiat while gold has to be mined. In the end its simply a store of value and nothing more.
Now what if the store of value that the world has relied on is in a bubble? Right now there is some crazy shit happening in the markets with gold and treasury bonds moving in the same direction. This week we saw record lows in the 10 year treasury AND a record high in the price of gold. Remember that bond prices and yields have an inverse relationship. This week the 10 year yield hit 1.97%, just as I had called a few weeks ago on this blog (that we would see sub 2% on the 10 yr). Now also recall that a good 10 trillion dollars worth of US government debt is in existence and the vast majority of these bonds have gone up in face value. While we are currently following Japan with its incredibly high level of government debt and low yields I believe this trend will reverse itself as over 8 trillion dollars are held overseas. The total cumulative trade deficit of the United States since 1975 totals over 8 trillion. With a 600 billion annual trade deficit this number will continue to grow. Throw in a massive 1.5 trillion dollar annual federal deficit and what we get is a recipe for a dollar catastrophe.
In 2008 when global stock markets cratered there was a knee jerk flight to safety in the US dollar as the US dollar index popped from 72 to 89. Fast forward to 2011; stock markets have fallen close to 30% globally and the dollar index languishes at all time lows of 73 while gold surges to 1850. Something has obviously changed. Bonds continue to rally with rates at historic lows. Eventually, gold or bonds will crash. I expect a volatile battle between the two as the powers that be obviously favor the strength of treasuries over the strength of that evil barbaric gold. I expect the authorities to implement a punitive capital gains tax on gold to bring down the price but in the end reality will win as it always does.
Gold and dollars are essentially the same thing: a store of value. Except you can't print gold at will. I refuse to put a timetable on when the dollar bubble will burst but when it does the American standard of living will crash and burn alongside the dollar. And this is when the real pain will begin. Not that it signifies the end of the world but it will signify the end of life in America as we knew it. As Americans have been afforded the opportunity to live above their means for the past three decades, we will be forced to live below our means, for possibly the same amount of time. One silver lining out of this mess will be a wealth transfer from creditors to debtors as a dollar devaluation will free millions of student loan borrowers from the chains of debt serfdom. Those who hold their wealth in paper dollars have been put on sufficient notice of the risks involved with holding paper dollars. Fuck it, let the wealth adjustment begin. The sooner the better.
Wednesday, August 17, 2011
My Village in Greece
My favorite place in the world. I spent many years of my life here.
It's been a few years now since I've been back as its all about the daily grind now but hopefully in a few years I'll be back. My brother is out there now and sent me the pic. The town is at the bottom of the canyon with the Preveza peninsula in the background.
Wednesday, August 10, 2011
Two More Law Schools Sued, London In Chaos
So much shit happening right now! Markets in turmoil, London in flames and the Law School Scam just suffered another massive blow as two more law schools have been named in class action suits. New York Law School and Thomas Cooley just got sued by former students represented by Kurzon Strauss, a NYC litigation firm. Give them hell boys. Pretty soon dozens of third tier law schools will be fighting off class action lawsuits and hopefully applications for next year will plunge like the dow is plunging LOL. Here is the link to the NYLS law suit.
http://www.kurzonstrauss.com/uploads/NYLS_Filed_w_Index_Number_Summons_and_Complaint.pdf
This firm is seeking to sue a bunch of schools across the country so give them a call if you want to pick a fight with your alma mater. I would like to personally thank attorney David Anziska for all his hard work and dedication into bringing these suits into fruition. Good luck as the schools will give you hell in opposing these law suits so give them hell X 500 in return.
Even EDMC is getting sued for fraud LOL LOL byebye University of Phoenix playtime is over.
Gold hit a record $1815 just a few hours ago while silver is chilling at the $39 range. I thought that we would have a meaningful correction but that has not come to pass. Despite the equity markets taking a hit silver has stood firm. I'm loading up this week on a bunch of eagles.
Witness the incredible gold bull market:
Now check out the historical dow/gold chart:
This footage out of London is absolutely incredible. Amazing how a world class city like London can go mad max so quickly. If the authorities don't get a handle on this situation soon then the tanks will have to be forced out of Helmand province in a scramble to secure their capitol city. How embarassing for the establishment.
Watch the police get overrun.
Unreal. I'm curious to see if similar shit will happen here soon. Just imagine if the US Dollar suffered a terrible loss of value in a short period of time. Imagine if prices here double or tripled in the span of a few weeks. That would equate to a large group of terribly pissed off people.
Stay tuned, the freak show continues.
http://www.kurzonstrauss.com/uploads/NYLS_Filed_w_Index_Number_Summons_and_Complaint.pdf
This firm is seeking to sue a bunch of schools across the country so give them a call if you want to pick a fight with your alma mater. I would like to personally thank attorney David Anziska for all his hard work and dedication into bringing these suits into fruition. Good luck as the schools will give you hell in opposing these law suits so give them hell X 500 in return.
Even EDMC is getting sued for fraud LOL LOL byebye University of Phoenix playtime is over.
Gold hit a record $1815 just a few hours ago while silver is chilling at the $39 range. I thought that we would have a meaningful correction but that has not come to pass. Despite the equity markets taking a hit silver has stood firm. I'm loading up this week on a bunch of eagles.
Witness the incredible gold bull market:
Now check out the historical dow/gold chart:
This footage out of London is absolutely incredible. Amazing how a world class city like London can go mad max so quickly. If the authorities don't get a handle on this situation soon then the tanks will have to be forced out of Helmand province in a scramble to secure their capitol city. How embarassing for the establishment.
Watch the police get overrun.
Unreal. I'm curious to see if similar shit will happen here soon. Just imagine if the US Dollar suffered a terrible loss of value in a short period of time. Imagine if prices here double or tripled in the span of a few weeks. That would equate to a large group of terribly pissed off people.
Stay tuned, the freak show continues.
European Banking Crisis; Gold $1,800
Europe's banks are bleeding losses today as sovereign debt fears have gripped the continent. A simple glance at some European bank stocks shows the extent of the panic:
Societe General: down 21%
BNP Paribas: down 10%
Intesa: down 10% halted
Unicredit: down 10% halted
From Bloomberg:
Societe Generale (GLE) SA posted a record decline and led a drop in French banking shares as the cost of insuring the country’s government bonds increased. UniCredit SpA (UCG), Italy’s biggest bank, paced a retreat in Italian banks after the country’s credit-default swaps widened.
Societe Generale shares slumped as much as 23 percent and were down 16 percent at 21.89 euros at 4:27 p.m. in Paris. Credit-default swaps on the bank rose 29 basis points to a record 299 basis points.
Societe Generale “categorically denies all market rumors,” Emmanuelle Renaudat, a spokeswoman for the French bank said in an interview. She declined to be more specific.
Bank shares lost 5.3 percent, for the biggest decline among the 19 industry groups in the Stoxx Europe 600 Index and the steepest drop since May 2009. French and Italian banks led the retreat. BNP Paribas (BNP) SA shed 11 percent to 35.06 euros and Credit Agricole SA (ACA) sank 15 percent to 5.82 euros.
“If credit default swaps on France are under attack, that’s not a good sign,” said Yves Marcais, a sales trader at Global Equities in Paris. “That means that France is under attack and that’s worrisome. French banks hold a lot of French bonds.”
The cost to insure French government debt against default rose 10 basis points to a record 171 basis points, according to CMA.
http://www.bloomberg.com/news/2011-08-10/socgen-leads-fall-in-french-banks-as-credit-default-swaps-gain.html
Once again the market plunges after yesterdays rally. Gold hit $1800 and is on its way to $2,000.00 and eventually $5,000.00 unless the powers that be stop printing digital fiat currency. Jeremy Grantham said that S&P fair value is 950 which sounds reasonable under the circumstances.
Bottom line: expect the economy to shrink again with more layoffs and higher unemployment. One positive is that food and gas prices will come down as crude is now trading at $80.00 woohoo.
Societe General: down 21%
BNP Paribas: down 10%
Intesa: down 10% halted
Unicredit: down 10% halted
From Bloomberg:
Societe Generale (GLE) SA posted a record decline and led a drop in French banking shares as the cost of insuring the country’s government bonds increased. UniCredit SpA (UCG), Italy’s biggest bank, paced a retreat in Italian banks after the country’s credit-default swaps widened.
Societe Generale shares slumped as much as 23 percent and were down 16 percent at 21.89 euros at 4:27 p.m. in Paris. Credit-default swaps on the bank rose 29 basis points to a record 299 basis points.
Societe Generale “categorically denies all market rumors,” Emmanuelle Renaudat, a spokeswoman for the French bank said in an interview. She declined to be more specific.
Bank shares lost 5.3 percent, for the biggest decline among the 19 industry groups in the Stoxx Europe 600 Index and the steepest drop since May 2009. French and Italian banks led the retreat. BNP Paribas (BNP) SA shed 11 percent to 35.06 euros and Credit Agricole SA (ACA) sank 15 percent to 5.82 euros.
“If credit default swaps on France are under attack, that’s not a good sign,” said Yves Marcais, a sales trader at Global Equities in Paris. “That means that France is under attack and that’s worrisome. French banks hold a lot of French bonds.”
The cost to insure French government debt against default rose 10 basis points to a record 171 basis points, according to CMA.
http://www.bloomberg.com/news/2011-08-10/socgen-leads-fall-in-french-banks-as-credit-default-swaps-gain.html
Once again the market plunges after yesterdays rally. Gold hit $1800 and is on its way to $2,000.00 and eventually $5,000.00 unless the powers that be stop printing digital fiat currency. Jeremy Grantham said that S&P fair value is 950 which sounds reasonable under the circumstances.
Bottom line: expect the economy to shrink again with more layoffs and higher unemployment. One positive is that food and gas prices will come down as crude is now trading at $80.00 woohoo.
Monday, August 8, 2011
Market flash crash
S&P sinks to 1119 intraday from open of 1198, a 79 point drop or 6.5%. Unreal market action. Prepare for a tough winter everybody. Bernanke will unleash the monetary heaven within days at this point.
UPDATE: Stocks close at lows of the day, right back down to 1119. If the fed folds and announces QE3 tomorrow then its off to the races with a violent snap back rally. But how much easing it will require to put humpty dumpty together again? 1 trillion? 1.5 trillion? It remains to be seen. At this point however confidence is wrecked.
What a crazy 2 weeks.
Charting the collapse in the S&P:
Sunday, August 7, 2011
Tel Aviv Stocks Plunge; Market Wipeout On Monday?
From Arutz Sheva:
Prices on the Tel Aviv Stock Exchange plunged on Sunday, the first Israeli trading day after Standard and Poor's announced that it had lowered the United States' credit rating. The Tel Aviv composite index went under the 1,000 mark for the first time in years, closing at 962.16, down 7.31.
http://www.israelnationalnews.com/News/Flash.aspx/217053
So the first market to trade since the downgrade and Euro news opens limit down triggering circuit breakers. Also the EU and G20 are conducting high level meetings as they try to prevent a full blown panic tomorrow. Asia opens at 2:00 pm eastern so stay tuned. If I had to take a guess stocks will sell off tomorrow but with great volatility as there has already been a 11% drop. The issue with the downgrade is not so much default risk on Uncle Gorilla paper but rather the risk of unintended consequences (collateral requirements for AAA paper holdings) leading to selling of Treasuries and other assets. But for now the bond market has completely ignored any threat of a downgrade as 10 year paper yields a pathetic 2.4 percent LOL. It's possible that we may even see sub 2 percent on the 10 year!
By far the biggest risk is out of Europe as Germany is balking at the cost of bailout out Italy. Europe is undergoing a sovereign debt and banking crisis right now and it remains to be seen if the Eurocrats will be able to get a handle on the situation. Italy's 2.5 trillion debt pile is held by Italian, German, Spanish and French banks so if this paper goes bad will it sink numerous banks which will lead to other bank failures. Lehman 2.0 Euro zone style. For those that like historical comparisons please read about the Austrian Creditanstalt bank collapse which deepened the recession in 1931 pushing the world into further depression. Creditanstalt caused a myriad of failures in the U.S. leading to money supply destruction (lost deposits) and hyper-deflation.
One big difference between the 30's and today is the digital fiat currency that is the reserve currency as opposed to gold. Thus, the federal reserve is not restrained by any barbaric relic such as gold and can create as much money at will. The Bernank fears a drop in money supply and so is fighting America's old demon deflation while Germany fights it's old demon of hyperinflation. Wow the irony! Personally I say we have mass liquidations of debts and claims. Debt that cant be repaid shouldn't be repaid. Creditors lose and debtors gain. It takes two to tango and the creditors became even more greedy than the borrowers they were lending to (besides who makes all the money anyways its Albert Lord not the TTT).
Will update as the markets open. Bank of America has gotten the shit kicked it out of it with a 17% loss in the last two days. At some point it would be a good buy for a swing trade. Will be watching that TBTF zombie BAC closely this week.
Prices on the Tel Aviv Stock Exchange plunged on Sunday, the first Israeli trading day after Standard and Poor's announced that it had lowered the United States' credit rating. The Tel Aviv composite index went under the 1,000 mark for the first time in years, closing at 962.16, down 7.31.
http://www.israelnationalnews.com/News/Flash.aspx/217053
So the first market to trade since the downgrade and Euro news opens limit down triggering circuit breakers. Also the EU and G20 are conducting high level meetings as they try to prevent a full blown panic tomorrow. Asia opens at 2:00 pm eastern so stay tuned. If I had to take a guess stocks will sell off tomorrow but with great volatility as there has already been a 11% drop. The issue with the downgrade is not so much default risk on Uncle Gorilla paper but rather the risk of unintended consequences (collateral requirements for AAA paper holdings) leading to selling of Treasuries and other assets. But for now the bond market has completely ignored any threat of a downgrade as 10 year paper yields a pathetic 2.4 percent LOL. It's possible that we may even see sub 2 percent on the 10 year!
By far the biggest risk is out of Europe as Germany is balking at the cost of bailout out Italy. Europe is undergoing a sovereign debt and banking crisis right now and it remains to be seen if the Eurocrats will be able to get a handle on the situation. Italy's 2.5 trillion debt pile is held by Italian, German, Spanish and French banks so if this paper goes bad will it sink numerous banks which will lead to other bank failures. Lehman 2.0 Euro zone style. For those that like historical comparisons please read about the Austrian Creditanstalt bank collapse which deepened the recession in 1931 pushing the world into further depression. Creditanstalt caused a myriad of failures in the U.S. leading to money supply destruction (lost deposits) and hyper-deflation.
One big difference between the 30's and today is the digital fiat currency that is the reserve currency as opposed to gold. Thus, the federal reserve is not restrained by any barbaric relic such as gold and can create as much money at will. The Bernank fears a drop in money supply and so is fighting America's old demon deflation while Germany fights it's old demon of hyperinflation. Wow the irony! Personally I say we have mass liquidations of debts and claims. Debt that cant be repaid shouldn't be repaid. Creditors lose and debtors gain. It takes two to tango and the creditors became even more greedy than the borrowers they were lending to (besides who makes all the money anyways its Albert Lord not the TTT).
Will update as the markets open. Bank of America has gotten the shit kicked it out of it with a 17% loss in the last two days. At some point it would be a good buy for a swing trade. Will be watching that TBTF zombie BAC closely this week.
Saturday, August 6, 2011
North London riots
From the Guardian:
Two police patrol cars, a passenger bus and several shops were attacked and set alight in north London as violence erupted following a protest to demand justice over a fatal police shooting.
Police on horseback and officers in riot gear clashed with scores of rioters armed with makeshift missiles in the centre of Tottenham as thick, black smoke swirled through the air.
At one point, rioters broke through police ranks and attempted to storm Tottenham's police station, pelting officers with bricks and bottles.
A Metropolitan Police spokesman said the trouble began when "missiles" were thrown at parked patrol cars at 8.30pm. He said one was pushed, blazing, into the middle of Tottenham High Street. Neither of the two officers who had been driving the cars were injured.
http://www.guardian.co.uk/uk/2011/aug/06/tottenham-riots-protesters-police
Interesting how I went to a police killing protest today across the pond in calm as a cucumber America. I have been in crazy protests in Athens so I know first hand what a real protest looks like. Today roughly 500 protesters gathered outside the Fullerton Police Department. People held signs, said their chants and cars honked as they drove by. But the permit expired at 3:00 pm and then everyone had to go home. No worries for the FPD. Now contrast this scene from the one in London where the people got angry and tried to storm the police station. They even lit two police cars on fire. God forbid someone threw a coke can at the FPD station today. Could you imagine the police response? I bet everyone would be told to disperse IMMEDIATELY AS PLAYTIME WOULD BE OVER! Oh sure here in the US you can have your little few hour protest, hold your sign and then go home. But that doesn't leave a message.
Instead of the government fearing us we fear the government. Sometimes a smashed window leaves a far deeper message then a sign that says "no more police brutality." Sorry guys but I will say it Americans have turned into a bunch of pussies. Even the boomers let the establishment have it with their protests back in the 70's. They would literally battle with the police, get bruised up and all that good stuff. If any of you have been to a recent American "protest" then you know what I'm talking about. Curious to see when some passion and emotion comes back into the American soul.
Two police patrol cars, a passenger bus and several shops were attacked and set alight in north London as violence erupted following a protest to demand justice over a fatal police shooting.
Police on horseback and officers in riot gear clashed with scores of rioters armed with makeshift missiles in the centre of Tottenham as thick, black smoke swirled through the air.
At one point, rioters broke through police ranks and attempted to storm Tottenham's police station, pelting officers with bricks and bottles.
A Metropolitan Police spokesman said the trouble began when "missiles" were thrown at parked patrol cars at 8.30pm. He said one was pushed, blazing, into the middle of Tottenham High Street. Neither of the two officers who had been driving the cars were injured.
http://www.guardian.co.uk/uk/2011/aug/06/tottenham-riots-protesters-police
Interesting how I went to a police killing protest today across the pond in calm as a cucumber America. I have been in crazy protests in Athens so I know first hand what a real protest looks like. Today roughly 500 protesters gathered outside the Fullerton Police Department. People held signs, said their chants and cars honked as they drove by. But the permit expired at 3:00 pm and then everyone had to go home. No worries for the FPD. Now contrast this scene from the one in London where the people got angry and tried to storm the police station. They even lit two police cars on fire. God forbid someone threw a coke can at the FPD station today. Could you imagine the police response? I bet everyone would be told to disperse IMMEDIATELY AS PLAYTIME WOULD BE OVER! Oh sure here in the US you can have your little few hour protest, hold your sign and then go home. But that doesn't leave a message.
Instead of the government fearing us we fear the government. Sometimes a smashed window leaves a far deeper message then a sign that says "no more police brutality." Sorry guys but I will say it Americans have turned into a bunch of pussies. Even the boomers let the establishment have it with their protests back in the 70's. They would literally battle with the police, get bruised up and all that good stuff. If any of you have been to a recent American "protest" then you know what I'm talking about. Curious to see when some passion and emotion comes back into the American soul.
Friday, August 5, 2011
Protest at Fullerton police department tomorrow in honor of Kelly Thomas
I will be there around noon. For those who haven't heard Mr. Thomas was beaten to death by 6 Fullerton officers. Google images show his bloody face which were taken at the hospital before he died. Enough is enough. Last weekend's protest had a good turnout let's make tomorrow even better. What the fuck is this Syria or America?? Not all cops are bad but lately there are too many bad apples and the oppressive cops need to have justice served on them.
From the LA Times:
A second Fullerton City Council member is asking the police chief to resign after a mentally ill homeless man was beaten to death during a confrontation with six officers.
Council member Sharon Quirk-Silva called for Chief Michael Sellers' resignation Wednesday, criticizing the Police Department for refusing to answer questions about the case or share information with the council. A second council member, Bruce Whitaker, told KTLA on Thursday that he also thinks the chief should resign.
He said the chief is refusing to answer questions in hopes that the public will soon forget about what happened.
"In my opinion, the chief should resign or he may be forced out of his post at some point," Whitaker said. "I want the chief to put a human face on this and, rather than hiding behind legalities and rather than working through spokespersons, to get out in front and man up and basically communicate to the public."
On the night of July 5, six officers allegedly beat Kelly Thomas, a homeless man with a history of schizophrenia, until he was comatose. He died five days later after being removed from life support. Officers had initially approached Thomas at a downtown bus station after receiving a report of someone trying to break into cars in the parking lot, officials said. When Thomas tried to run and struggled with officers, the situation escalated, they said.
Whitaker claims he was told late Thursday afternoon that Sellers and others are just waiting for the public to calm down over the death of Thomas.
"I'm very angry about it because there seems to be a tone-deafness about where the public is at on this," Whitaker said.
If one more council member calls for Sellers' resignation, it would represent a majority of the panel.
Council members said they have not been privy to many details of the case, including internal police reports and surveillance video from the bus station that officials with the Orange County district attorney's office say showed much of what took place. The video has not been released.
http://latimesblogs.latimes.com/lanow/2011/08/fullerton-homeless-beating-death-police-chief.html
Look what they did to this poor guy's face:
Friends of Fullerton expects over 1,000 people in attendance tomorrow.
http://www.fullertonsfuture.org/tag/kelly-thomas-beating/
Peace
From the LA Times:
A second Fullerton City Council member is asking the police chief to resign after a mentally ill homeless man was beaten to death during a confrontation with six officers.
Council member Sharon Quirk-Silva called for Chief Michael Sellers' resignation Wednesday, criticizing the Police Department for refusing to answer questions about the case or share information with the council. A second council member, Bruce Whitaker, told KTLA on Thursday that he also thinks the chief should resign.
He said the chief is refusing to answer questions in hopes that the public will soon forget about what happened.
"In my opinion, the chief should resign or he may be forced out of his post at some point," Whitaker said. "I want the chief to put a human face on this and, rather than hiding behind legalities and rather than working through spokespersons, to get out in front and man up and basically communicate to the public."
On the night of July 5, six officers allegedly beat Kelly Thomas, a homeless man with a history of schizophrenia, until he was comatose. He died five days later after being removed from life support. Officers had initially approached Thomas at a downtown bus station after receiving a report of someone trying to break into cars in the parking lot, officials said. When Thomas tried to run and struggled with officers, the situation escalated, they said.
Whitaker claims he was told late Thursday afternoon that Sellers and others are just waiting for the public to calm down over the death of Thomas.
"I'm very angry about it because there seems to be a tone-deafness about where the public is at on this," Whitaker said.
If one more council member calls for Sellers' resignation, it would represent a majority of the panel.
Council members said they have not been privy to many details of the case, including internal police reports and surveillance video from the bus station that officials with the Orange County district attorney's office say showed much of what took place. The video has not been released.
http://latimesblogs.latimes.com/lanow/2011/08/fullerton-homeless-beating-death-police-chief.html
Look what they did to this poor guy's face:
Friends of Fullerton expects over 1,000 people in attendance tomorrow.
http://www.fullertonsfuture.org/tag/kelly-thomas-beating/
Peace
Above the clouds
Took these pics this morning from my backyard:
I live on a pretty big hill about 1000 feet above the base. Once in a while the fog line is right below my house granting us this incredible view. Have a great weekend everybody.
I live on a pretty big hill about 1000 feet above the base. Once in a while the fog line is right below my house granting us this incredible view. Have a great weekend everybody.
Thursday, August 4, 2011
The Ponzi Bleeds
Heavy selling taking place worldwide as Eurozone bond spreads blowout. Dow was down as much as 357 points before retracing. One by one countries around the world will sink as a result of their unbearable debt loads. And to think that the Department of Education refuses to give relief to heavily indebted student loan borrowers with terrible job prospects.
Absent more monetary magic stimulus expect all stock markets to crumble under the weight of trillions in debt. Of course the central planners will continue to shower the world will digital fiat in order to postpone the true day of reckoning which will further push silver and gold to the moon. Eventually the current monetary system will fail and will either lead to a fragmented world where globalization retraces or a monster global currency will be born.
Here is a good take on the latest market action from Business Insider:
Well, it's deja vu all over again.
For anyone who followed the market crashes of 2000-2002 and 2007-2009--especially the crash of 2007-2009--the 512-point drop in the Dow feels awfully familiar.
And as those market crashes reminded us, the downdrafts can last a lot longer and be a lot more severe than most people initially think.
(They can also reverse themselves quickly and unexpectedly, and maybe that's what will happen this time. We can always pray.)
But there are also several very important differences between this market crash and the ones a few years ago:
* The Fed has fired most of its bullets (interest rates are already at zero)
* Our budget deficit is already out of control, and Congress has had it with "stimulus"
* The public has had it with bailouts
That means the government's ability to do anything about this market crash is severely limited.
Yes, we'll almost certainly have a "QE3." And maybe that will prop things up a bit. But it won't fix the fundamental problems clogging the economy, just as QE1 and QE2 didn't permanently fix anything. (The only thing that will fix our economy is debt-reduction, discipline, and time.)
To get a good sense of how hamstrung the government is, you need only look as far back as last week, when Congress was so paralyzed that it almost put the country into default rather than raise the debt ceiling.
And you also need only note that, when the 2000 crash began, the US federal budget was running a surplus, and when the 2007 crash began, the deficit was only $200 billion. Now, the deficit's about $1.4 trillion.
http://www.businessinsider.com/heres-the-problem-with-this-market-crash-2011-8#comment-4e3b52d369bedd8835000035
Personally, whether or not the market plunges or rips higher tomorrow is of no real concern. The significance of the recent action is the effect on confidence of the big players (governments and corporations) and whether or not the Eurozone will descend into a full blown banking crisis. If a financial crisis erupts out of Europe (very likely) then all bets are off for the fall and next year. Poor Obama couldn't even enjoy his birthday today as the blackberry screen showed blood red across all sectors.
I'm curious to see how the Eurocrats will try to put humpty dumpty back together again. It took us from September 2008 to March 2009 to stabilize the banking system and the USA is the biggest baddest country in the world. The Eurozone is comprised of 17 different nations with no central taxing authority and a central bank that has limited powers with the Germans commanding great influence (the same Germans that are horrified at the specter of hyperinflation).
The poor boomers and their 401k's. Too bad stocks are at 1997 levels and when adjusted for inflation are at 1980's levels. One good thing about the recent plunge is the crash in the price of crude oil as it closed at $85.50. At these prices this translates into a 30 cent discount at the pump. Wow some bones for us proles! Personally I'd rather see the S& at 400 and crude at 30.
Absent more monetary magic stimulus expect all stock markets to crumble under the weight of trillions in debt. Of course the central planners will continue to shower the world will digital fiat in order to postpone the true day of reckoning which will further push silver and gold to the moon. Eventually the current monetary system will fail and will either lead to a fragmented world where globalization retraces or a monster global currency will be born.
Here is a good take on the latest market action from Business Insider:
Well, it's deja vu all over again.
For anyone who followed the market crashes of 2000-2002 and 2007-2009--especially the crash of 2007-2009--the 512-point drop in the Dow feels awfully familiar.
And as those market crashes reminded us, the downdrafts can last a lot longer and be a lot more severe than most people initially think.
(They can also reverse themselves quickly and unexpectedly, and maybe that's what will happen this time. We can always pray.)
But there are also several very important differences between this market crash and the ones a few years ago:
* The Fed has fired most of its bullets (interest rates are already at zero)
* Our budget deficit is already out of control, and Congress has had it with "stimulus"
* The public has had it with bailouts
That means the government's ability to do anything about this market crash is severely limited.
Yes, we'll almost certainly have a "QE3." And maybe that will prop things up a bit. But it won't fix the fundamental problems clogging the economy, just as QE1 and QE2 didn't permanently fix anything. (The only thing that will fix our economy is debt-reduction, discipline, and time.)
To get a good sense of how hamstrung the government is, you need only look as far back as last week, when Congress was so paralyzed that it almost put the country into default rather than raise the debt ceiling.
And you also need only note that, when the 2000 crash began, the US federal budget was running a surplus, and when the 2007 crash began, the deficit was only $200 billion. Now, the deficit's about $1.4 trillion.
http://www.businessinsider.com/heres-the-problem-with-this-market-crash-2011-8#comment-4e3b52d369bedd8835000035
Personally, whether or not the market plunges or rips higher tomorrow is of no real concern. The significance of the recent action is the effect on confidence of the big players (governments and corporations) and whether or not the Eurozone will descend into a full blown banking crisis. If a financial crisis erupts out of Europe (very likely) then all bets are off for the fall and next year. Poor Obama couldn't even enjoy his birthday today as the blackberry screen showed blood red across all sectors.
I'm curious to see how the Eurocrats will try to put humpty dumpty back together again. It took us from September 2008 to March 2009 to stabilize the banking system and the USA is the biggest baddest country in the world. The Eurozone is comprised of 17 different nations with no central taxing authority and a central bank that has limited powers with the Germans commanding great influence (the same Germans that are horrified at the specter of hyperinflation).
The poor boomers and their 401k's. Too bad stocks are at 1997 levels and when adjusted for inflation are at 1980's levels. One good thing about the recent plunge is the crash in the price of crude oil as it closed at $85.50. At these prices this translates into a 30 cent discount at the pump. Wow some bones for us proles! Personally I'd rather see the S& at 400 and crude at 30.
Wednesday, August 3, 2011
Gold surges to new record, silver filling the gap
3 month gold chart:
6 month Silver:
And the S&P 500 LOL
The precious metals bull market continues.
UPDATE
S&P plunges to 1235 in a classic technical breakdown. 10 year treasury yield at 2.56%. Spreads blowing out in Italy and Spain. Looks like the Euro zone is having its fall 2008 moment.
Aug 5th 9:00 am update: Complete breakdown in technicals for S&P. Currently trading at 1174, intraday low at 1168.
6 month Silver:
And the S&P 500 LOL
The precious metals bull market continues.
UPDATE
S&P plunges to 1235 in a classic technical breakdown. 10 year treasury yield at 2.56%. Spreads blowing out in Italy and Spain. Looks like the Euro zone is having its fall 2008 moment.
Aug 5th 9:00 am update: Complete breakdown in technicals for S&P. Currently trading at 1174, intraday low at 1168.
Tuesday, August 2, 2011
Recession likely in 2012
So finally after weeks of debate and "suspense" the congress critters passed the national debt ceiling bill! Woohoo! This 2.1 trillion dollar credit limit increase will last us until January 2013 where it will be raised again however that time I expect them to raise it without making too much noise about it as all the commotion is bad for business. The market does not like this deficit "cutting" at all and has thrown a hissy fit after the fact by dropping a good 2.5% today. You see the problem with the new budget is that federal government spending will actually fall year over year as opposed to a growth rate of say 3 percent. With the government spending less year over year and the private sector economy at stall speed (simply look at the recent numbers which are absolutely rotten) a recession is practically guaranteed by the end of 2011 or early 2012. Timing this business is impossible but the general trend can be spotted.
In fact the recent revisions show that GDP has yet to recover to its highest point which was reached in late 2007 so technically we are still in recession. Now when GDP falls again without reaching its old high this is a depression. Absent government borrowing equating to 12% of GDP and the economy would be in even worse shape. But now the administration and the congress have run out of juice by racking up the national debt from 9 trillion in 2008 to 14.6 trillion reaching 16.5 by January 2013. 5 trillion in borrowing power certainly staved off a massive deflationary shit short but only for some time. With fiscal stimulus out of bullets the powers that be will turn to the federal reserve with it's magical "monetary stimulus" and you better believe because the fed will turn on the monetary spigot, unleashing the world with trillions of magical fiat digital dollars, keeping the wicked default monster fed for a time. Gold is pricing all this in and continues to make new highs as it touched $1,650 today. Silver will rocket to unbelievable levels by the time this monetary paradigm withers and dies.
So what does it mean that we will have a new recession in the coming months? Well basically it means that more jobs will be lost equating to less tax revenue leading to more public sector layoffs and broken pension promises. The unemployed will continue to suffer as competition for jobs will become even worse than it is now. Recent graduates will default on student loans in huge numbers as the economy is now losing jobs month over month (adjust the gov propaganda NFP numbers) whereas 150k net jobs are required simply to absorb recent labor market entrants. And then there is the 12 million that got laid off or lost their small business in the past 3 years. Our 70% consumer consumption driven economy will continue to re-balance itself until we become more productive again. It's simply not possible to have trade and federal deficits running over $2 trillion per year and have a healthy economy. Now that the ordinary household can no longer borrow to the hilt, deleveraging is the cure.
Will this new recession be worse than the 2008 crash? Probably not as the banks are more secure (fake accounting rules and stuffed with cash thanks to the fed) and many industries have been smashed from before. Auto sales have stabilized at 11 to 12 million annualized and home construction remains in the doldrums. Losses will come in local and state government, insurance, finance jobs, basically government related jobs. The real issue with the new recession will be its impact on PROJECTED NUMBERS BASED ON EXPONENTIAL GROWTH. YOU SEE THIS NEW RECESSION WAS NOT SUPPOSED TO HAPPEN! In fact the gov and the fed were forecasting 3 to 4% growth for 2011 and 2012. With bad GDP comes less revenue which furthers our descent into fiscal hell for the national balance sheet. This is by far the biggest risk but I don't see this blowing for some time (I'm playing with the numbers for now).
Less less less for everyone is what this recession will mean for millions of people. Many will keep their jobs, some will lose them and possibly join the sad world of un or underemployment. To date I have yet to come across a recent grad that is angry about being unemployed and in massive student loan debt. On the internet people talk tough but yet I have met such a person in real life. Most people I spoke to simply sound defeated or apathetic about their situation. It truly is incredible how docile Americans have become. My belief is that many here still hold faith in the system and believe that either they are losers or the ship will turn around and pick them up for the ride. This debt ceiling debate taught me tons about my fellow citizens. I'm friends with many smart and educated people (the two are not synonymous) and yet the only thing they could do is whine why the debt ceiling wasn't being raised. So sad that such smart people simply cannot think for themselves on the most important issues. I foresee a populace in willing bondage in the future. I love you big brother.
Til next time
Subprime
In fact the recent revisions show that GDP has yet to recover to its highest point which was reached in late 2007 so technically we are still in recession. Now when GDP falls again without reaching its old high this is a depression. Absent government borrowing equating to 12% of GDP and the economy would be in even worse shape. But now the administration and the congress have run out of juice by racking up the national debt from 9 trillion in 2008 to 14.6 trillion reaching 16.5 by January 2013. 5 trillion in borrowing power certainly staved off a massive deflationary shit short but only for some time. With fiscal stimulus out of bullets the powers that be will turn to the federal reserve with it's magical "monetary stimulus" and you better believe because the fed will turn on the monetary spigot, unleashing the world with trillions of magical fiat digital dollars, keeping the wicked default monster fed for a time. Gold is pricing all this in and continues to make new highs as it touched $1,650 today. Silver will rocket to unbelievable levels by the time this monetary paradigm withers and dies.
So what does it mean that we will have a new recession in the coming months? Well basically it means that more jobs will be lost equating to less tax revenue leading to more public sector layoffs and broken pension promises. The unemployed will continue to suffer as competition for jobs will become even worse than it is now. Recent graduates will default on student loans in huge numbers as the economy is now losing jobs month over month (adjust the gov propaganda NFP numbers) whereas 150k net jobs are required simply to absorb recent labor market entrants. And then there is the 12 million that got laid off or lost their small business in the past 3 years. Our 70% consumer consumption driven economy will continue to re-balance itself until we become more productive again. It's simply not possible to have trade and federal deficits running over $2 trillion per year and have a healthy economy. Now that the ordinary household can no longer borrow to the hilt, deleveraging is the cure.
Will this new recession be worse than the 2008 crash? Probably not as the banks are more secure (fake accounting rules and stuffed with cash thanks to the fed) and many industries have been smashed from before. Auto sales have stabilized at 11 to 12 million annualized and home construction remains in the doldrums. Losses will come in local and state government, insurance, finance jobs, basically government related jobs. The real issue with the new recession will be its impact on PROJECTED NUMBERS BASED ON EXPONENTIAL GROWTH. YOU SEE THIS NEW RECESSION WAS NOT SUPPOSED TO HAPPEN! In fact the gov and the fed were forecasting 3 to 4% growth for 2011 and 2012. With bad GDP comes less revenue which furthers our descent into fiscal hell for the national balance sheet. This is by far the biggest risk but I don't see this blowing for some time (I'm playing with the numbers for now).
Less less less for everyone is what this recession will mean for millions of people. Many will keep their jobs, some will lose them and possibly join the sad world of un or underemployment. To date I have yet to come across a recent grad that is angry about being unemployed and in massive student loan debt. On the internet people talk tough but yet I have met such a person in real life. Most people I spoke to simply sound defeated or apathetic about their situation. It truly is incredible how docile Americans have become. My belief is that many here still hold faith in the system and believe that either they are losers or the ship will turn around and pick them up for the ride. This debt ceiling debate taught me tons about my fellow citizens. I'm friends with many smart and educated people (the two are not synonymous) and yet the only thing they could do is whine why the debt ceiling wasn't being raised. So sad that such smart people simply cannot think for themselves on the most important issues. I foresee a populace in willing bondage in the future. I love you big brother.
Til next time
Subprime
Subscribe to:
Posts (Atom)
