Rick Steves' European Christmas

"Happy, happy Christmas, that can win us back to the delusions of our childish days; that can recall to the old man the pleasures of his youth; that can transport the sailor and the traveler, thousands of miles away, back to his own fire-side and his quiet home.”

Charles Dickens, The Pickwick Papers



"At one time, most of my friends could hear the bell, but as years passed, it fell silent for all of them.  Even Sarah found one Christmas that she could no longer hear its sweet sound.  Though I've grown old, the bell still rings for me, as it does for all who truly believe."

Chris Van Allsburg, The Polar Express



"This is quite the season indeed for friendly meetings.  At Christmas every body invites their friends about them, and people think little of even the worst weather.  I was snowed up at a friend's house once for a week.  Nothing could be pleasanter."

Jane Austen, Emma

Stocks and Precious Metals Charts - Bubbles Are Made By Men To End in Slaughter - A Savage Garden

"I tremble for my country when I reflect that God is just: that his justice cannot sleep for ever."

Thomas Jefferson, Notes On the State of Virginia


"An evil and faithless generation demands a sign.  But no sign will be given it, except for the sign of Jonah."

Matthew 16:4


"Do not be deceived, for God is not mocked.  What a man sows, so shall he reap."

Galatians 6:7

Stocks once again went out on the lows after an early attempt to find a footing and rally.

After the failure to hold the rally after the European market close, it became fairly apparent that it was going to be another ugly day of a slow death by a thousand cuts.

It is frustrating, because those who did not act on the signs of the mispricing of risks in this blow off bubble top are most likely locked into their losses now by fear, and 'advice' from the salesmen for mispriced financial assets.

Thank God we bailed out the financial industry, and then undermined any attempts to reform and regulate their excesses.  The vampire squids of Wall Street must be fed.  Sham wow.

Gold and silver were off a bit as the Dollar was higher.

There will be a half day session on Monday, which is Christmas eve.

The markets will be closed on Tuesday in observance of Christmas day.

Remember to feed the least of His creatures, the birds of the air and animals of the field, during these hard months. And feed the hearts of those you meet, with a friendly word and a smile. Each person you meet carries a burden, and it may be lightened with a simple act of kindness.

Need little, want less, love more. For those who abide in God abide in them, and God in them.

Have a pleasant weekend.

Stocks and Precious Metals Charts - Draining the Punch Bowl - Quad Witching Expiration Tomorrow

"This is the greatest economy in the history of our country."

Donald J. Trump, November 2018


"I see dead people.  Walking around like regular people.  They don't see each other.  They only see what they want to see.  They don't know that they're dead."

Cole Sear: The Sixth Sense

Stocks had a rough day today, giving the bulls and true believers an intraday downdraft that rattled their teeth.

Volumes were about fifty percent higher than normal.

This has been the worst December for stocks in a decade.

And as of now, most major stock indices are negative on the year.

It's a good thing that we gave the largest corporations and the wealthiest few a big tax cut to stimulate the economy.

Or to be squandered on massive stock buybacks to boost the managerial quarterly bonuses based, not on business fundamentals, but on stock price.

Speaking of ironic twists, wasn't Mexico supposed to be paying for 'The Wall?'   How come we are not shutting their government down?

Tomorrow is a triple (or is it quad) witching option expiration.

If the wiseguys have any tricks up their sleeves we might see those cards hit the table either tomorrow or next week.

Deutsche Bank.  lol   Like one of the global serial felons of Wall Street, but with a Teutonic attitude of entitlement, even as they are swirling the bowl.

General Jim Mattis, Secretary of Defense, announced today that he will be retiring (sacked?) in January.   Not even a stalwart like the storied 'Mad Dog' could bear to stay aboard the clown car anymore. 

Gold definitely caught a safe haven bid today, reversing the decline of yesterday sharply, and then some, poking its head above the top of the trend for the latter part of this year.

A portfolio weighted to gold and cash provided some relief from worry today, although gold's performance this year has been fairly awful to say the least.  Still, looking back to its performance since 2001, one can have few complaints.   It has performed as it ought to have done, and will do even more once the back of the current gold pricing pool is broken.

Let's see if in the short term gold can break out cleanly from this trend it has been tracking since it hit the yearly low at $1159 in August.

And remember, whatever may go wrong, whatever bad things may happen to us, Russia or China did it.   They hate us for our exceptionalism, and our freedom.

Have a pleasant evening.

Stocks and Precious Metals Charts - A Candy Coloured Clown They Call the Sandman - Fed Spikes Markets

Sandy:  You saw a lot in one night. It's a strange world.

Jeffrey:  Why are there people like Frank?  Why is there so much trouble in this world?

Sandy:  I don't know. I had a dream.  In fact, it was the night I met you.  In the dream, there was our world and the world was dark because there weren't any robins, and the robins represented love.  And for the longest time, there was just this darkness.  And all of a sudden, thousands of robins were set free, and they flew down and brought this Blinding Light of Love.  And it seemed like that love would be the only thing that would make any difference.  And it did.  So I guess it means there is trouble 'til the robins come.

David Lynch, Blue Velvet

Stocks were attempting to rally this morning, again.

The expectations in the market were broadly held that while the Fed would no doubt raise their benchmark interest rate by 25 basis points, they would at least acknowledge that the economy is faltering a bit, inflation is subdued and fading, and that the equity and risk loans markets are dancing on the edge of an abyss.

But alas, that was not meant to be. The Fed put on their big boy pants, and decided that a hard lesson needed to be served up to the President, and the rest of the non-banking public as well.

After all, Jamie Dimon did say that a recession is no big deal, and might even do some good for JPM. Let them eat rate hikes. And there you have it.

Most were a bit surprised that the Fed took such a stone cold shot on this one.  I was wondering if they were going to send a message to tweet central about their prerogatives as the true money masters of the universe.

As I noted at the beginning of all this, the Fed will be raising rates not to fight inflation, not to defend the dollar, but to get their benchmark rate high enough off the zero bound so they have the ability to engage in interest rate policy after their latest financial asset bubble implodes.    And so far it looks like a close race.

As the afternoon unfolded I had this really marvelous image in my head of Trumpolini popping a gasket in the Oval Office, as he watched the stock markets selling off. This bubble rally is, after all, one of his few demonstrable accomplishments.

What reaction will we see from our apoplectic leader next: John Wick, from the movie of the same name, or Frank Booth, from cult classic Blue Velvet.

I can almost hear the sounds of amyl nitrate being huffed from the Oval Office now.

Gold and silver took a hit as the Dollar spiked higher.

Let's see how the rest of the world deals with the antics of our merry pranksters.

It looks like Santa won't be coming to Wall Street anytime soon.

Stock option expiration will be on Friday.

Have a pleasant evening.