We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Friday, September 23, 2011

Gold/Silver Plunge-fest

Gold down over $100, and Silver down over 15% - someone is liquidating. Rumors vary from very prominent hedge funds to Central European (as in geographically) central banks. Bottom line is, it is a self-fulfilling prophecy at this point and will continue until every last seller is out, and until the margin calls end.
UPDATE: Silver <$30 -17%

BUY THE F-ing DIP ... aka (BTFD)

If you have been waiting for a chance to buy PHYSICAL precious metals...the time has arrived...

As I have said for the last 3 years, if it goes down a little...buy a little...if it goes down alot...buy alot...

Did Schaeuble Break The Precious Metals And Force Everyone To Raise Cash?

We noted earlier that German finance minister Schaeuble said bank recaps were not the ECB's problem and the 2nd Greek bailout needed revisions - little did we know this would be the signal for investors to recognize that raising cash might be the safest thing to do. Since that statement TSYs and Gold/Silver flipped their recently well hedged relationship to one of total liquidation of both - correlation is not causation obviously but we though the timing was of note.

From "Buy The Rumor" To "Buy The Rumor Of The Rumor"

We have now moved from buying the rumor, to buying the rumor of the rumor. Is this another reason for stocks to bounce? Or just admitting that EFSF is too confusing in its present form, and cannot do enough, and has so little support that we might as well move to ESM? Maybe the EU members have decided that if anyone was going to spend more money in Europe, it should be something they control directly and not this super CDO? Maybe they finally realized that the EFSF was supposed to be replaced by ESM in 2013, but EFSF was going to issue 30 year bonds? Maybe the German approval vote is more questionable than we are being led to believe? Who is this employee who left his briefcase open at a bar with a Bloomberg reporter? Or is someone sending out leaks, waiting to see how the market, responds, and if it's not good enough, they send out another leak? It sounds bizarre. There is no longer any point watching this. Those that are bullish will be cheered by each and every step, and believe it is a sign of more to come. Those that are bearish will view each headline with derision, until something big and real happens one way or another.

Rumor Of A Rumor Confirmed: Rehn Regurgitates Desperate Bank Recap "Plan"

Rumor times, just as expected:

EU'S REHN SAYS THERE ARE PLANS TO RECAPITALIZE EUROPEAN BANKS

When the FT fails, drag the viceroy of New Feudal Europe^TM into it. EURUSD shoot from the hip without any regard for logic or math. And here is the math: the combined European banks' market cap, in addition to being lower than that of Apple, is about half of what the banks needs to raise to meet Goldman's liquidity needs. In other words, banks will dilute themselves by at least 100% to become viable. And they plan on pulling this off without a mutiny by existing shareholders how again? Oh yes, the word is nationalization. That will surely confirm that Europe is stronger than expected. This broken market is now trading only rumor to rumor, each of which is getting more and more desperate and more ridiculous.