Stocks and Precious Metals Charts - Forget It Jake - The Great Wealth Transfer Mechanism

 

"The sense of responsibility in the financial community for the community as a whole is not small.  It is nearly nil.  Perhaps this is inherent.  In a community where the primary concern is making money, one of the necessary rules is to live and let live.  To speak out against madness may be to ruin those who have succumbed to it.  So the wise in Wall Street are nearly always silent.  The foolish thus have the field to themselves.  None rebukes them."

John Kenneth Galbraith, The Great Crash of 1929


"Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even.”

Richard M. Salsman


"How did we get into this mess in the first place?  As in the 1920s, the current 'disturbance' started with a 'mania.'  But manias always have a cause.  If you investigate individually the manias that the market has so dubbed over the years, in every case, it was expansive monetary policy that generated the boom in an asset.

The particular asset varied from one boom to another.  But the basic underlying propagator was too-easy monetary policy and too-low interest rates...  And then of course if monetary policy tightens, the boom collapses."

Brian M Carney, Bernanke Is Fighting the Last War, Oct. 18, 2008


"Foolishness has a knack of getting its way; as we should see if we were not always so much wrapped up in ourselves.  In this respect our townsfolk were like everybody else, wrapped up in themselves; they did not believe in plagues."

Albert Camus, The Plague

Well the good news is that stocks have a ways to go lower if we are looking at a genuine CrashTrak signal.

The bad news if you are holding on to this mess you are losing a lot of your recent profits, for mostly nothing.

I came in from Friday evening short, and took them down before the close today.

Let's see where they take this thing next.  It's a bit early in the year for a crash landing.  But they have a very good scapegoat teed up.

Don't want to waste a crisis, or a distraction.  Look at Boris Johnson go.

Gold and silver rallied hard in the morning, but were quickly hit and hard back down to a little over unchanged.

Strafing the lifeboats is harsh but effective.   Especially if you are feeling especially audacious and unindictable.

The Dollar edged a little higher to 100 on the DXY.

Who could have seen this coming?

Mackie, what price did you pay?

Forget it Jess.  It's Central Banking.

Have a pleasant evening.