Stocks and Precious Metals Charts - Oh the Bovinity! - Flight to Safety - Stock Option Expiration Friday

"While everyone enjoys an economic party the long-term costs of a bubble to the economy and society are potentially great. They include a reduction in the long-term saving rate, a seemingly random distribution of wealth, and the diversion of financial human capital into the acquisition of wealth.

As in the United States in the late 1920s and Japan in the late 1980s, the case for a central bank ultimately to burst that bubble becomes overwhelming. I think it is far better that we do so while the bubble still resembles surface froth and before the bubble carries the economy to stratospheric heights. Whenever we do it, it is going to be painful, however.”

Larry Lindsey, Federal Reserve Governor, September 24, 1996 FOMC Minutes


“I recognise that there is a stock market bubble problem at this point, and I agree with Governor Lindsey that this is a problem that we should keep an eye on....We do have the possibility of raising major concerns by increasing margin requirements.  I guarantee that if you want to get rid of the bubble, whatever it is, that will do it.”

Alan Greenspan, September 24, 1996 FOMC Minutes


"And in some ways, it creates this false illusion that there are people out there looking out for the interest of taxpayers, the checks and balances that are built into the system are operational, when in fact they're not. And what you're going to see and what we are seeing is it'll be a breakdown of those governmental institutions. And you'll see governments that continue to have policies that feed the interests of -- and I don't want to get clichéd, but the one percent or the .1 percent -- to the detriment of everyone else."

Neil Barofsky, 2012 interview with Bill Moyers

Stocks were in meltdown mode, relatively speaking, to the insouciance with which they have greeted most negative economic news this year.

That recovery on Friday reeked of bravado and phoniness.  But it went less noticed because there is so much of that going around lately.

There was special coverage and a wave of happy talk this morning on bubblevision, that seemed to fade into quiet desperation and calls for a rate cut to rescue the markets.

But there was really no panic, despite the fact that both of the gaps in the equity indices have now been filled, as we had suggested that they would be.  For this is no breakaway gap in a booming economy.  This was a gap in a highly cynical, very technical, asset bubble following the debacle in December.

Gold was a clear beneficiary of this, banging up to the $1300 level.   The dollar and silver were both fairly flat.

We may get a tweet fueled rebound of sorts.  But it is unlikely to last.

There will be a stock market option expiration on Friday.

Just a quick mention as the eight year saga of Game of Thrones staggers to a close. A friend of ours sent us the following diagram of the series from China, which is included below. It is remarkably insightful. I have seen other versions floating around the circles where these things are discussed.

I am given to understand that the writers for these last few seasons of GoT are moving on to become the writers of a new Star Wars trilogy.

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

Have a pleasant evening.

Physical Holdings of Gold and Silver in Trusts and Funds

Stocks and Precious Metals Charts - Heroic Effort to Prop Up the Markets Fails to Boost Uber

"I am worried about my own country. The economic crisis of recent years reflects a deep, threatening, and ongoing deterioration of our national politics and culture of power.

The crisis, I will argue, developed gradually over the course of several decades. We are not facing a short-term business cycle downturn, but the working out of long-term social, political, and economic trends.  It is a bipartisan affair: both Democrats and Republicans have played their part in deepening the crisis

By understanding the deep roots of the crisis, we can move beyond illusory solutions such as the stimulus spending of 2009-2010, the budget cuts of 2011, and the unaffordable tax cuts that are implemented year after year. These are gimmicks that distract us from the deeper reforms needed in our society.

The American economy increasingly serves only a narrow part of society, and America's national politics has failed to put the country back on track through honest, open, and transparent problem solving. Too many of America's elites, among the super-rich, the CEOs, and many of my colleagues in academia, have abandoned a commitment to social responsibility. They chase wealth and power, the rest of society be damned.

Jeffrey D. Sachs

Uber priced at around 45$, which was near the bottom of the range for the IPO.

And it struggled to make a market on the open.

After finally struggling out at a small discount to the pricing, it attempted to rally back up into the green, and failed to inspire much interest into the close.

Uber finished up down a little over seven percent around $41.

Stocks were getting hammered on the open, but true to form there was a steady buying program that took the prices up after the rest of the world closed for trading. And they actually finished green.

Things remained at an elevated level of risk.

From our oasis to yours, have a pleasant weekend.

Stocks and Precious Metals Charts - The Pig Kings Rising - Uber IPO Prices At Bottom of Range

“To love at all is to be vulnerable.  Love anything and your heart will be wrung and possibly broken.  If you want to make sure of keeping it intact you must give it to no one, not even an animal.  Wrap it carefully round with hobbies and little luxuries; avoid all entanglements.  Lock it up safe in the casket or coffin of your selfishness.  But in that casket, safe, dark, motionless, airless, it will change.  It will not be broken; it will become unbreakable, impenetrable, irredeemable.

To love is to be vulnerable.”

C.S. Lewis


"All creatures of our God and King,
lift up your voice and with us sing
alleluia, alleluia.

Thou burning sun with golden beam,
thou silver moon with softer gleam,
O praise him, O praise him,
alleluia, alleluia, alleluia."

Francis of Assisi

Stocks were reeling a bit today, with fresh concerns about trade relations between China and the US.

Negotiations are expected to begin again about now, and continue into the evening.

Supposedly the US will decide after midnight whether to increase tariffs on China goods or not.

Brinksmanship most likely, but let's see what happens.

Angelo Mozilo was a prominent interviewee on Bloomberg today, as they made the rounds of the SALT conference at the Bellagio in Las Vegas. 

Angelo, the ex-CEO of the housing crisis' notorious Countrywide Financial, had words about the mortgage markets and the economy for Bloomberg's Eric Schachter.  He took care to note how homeowners continue to abuse and victimize the financial system. 

Next up, insights on personal grooming and hairstyles by tonsorial thought leader Sweeney Todd, late of Fleet Street.

Being a Wall Street pigman means never having to say you're guilty, much less sorry about it, for the many lives that you have ruined.

SALT is the brainchild of Anthony 'The Mooch' Scaramucci of Skybridge Capital, and is 'a global thought leadership forum devoted to unlocking growth opportunities in the fields of finance, economics, entrepreneurship, public policy, technology and philanthropy'.

The 10 Year Treasury auction today was rather ugly, and the Dollar continued to dip lower.

Gold is still being held in check, purportedly by a Bank that finds itself holding a largish short which they still hope to cash in.

And stocks are being saved in the US trade every afternoon by the underwriters and assorted wiseguys who would like to get the Uber IPO out the door tomorrow.

Let's see what happens tomorrow with the trade negotiation and the Uber IPO.

I hear bells faintly ringing, maybe after a last big push higher with a trade deal, or some other flight of fancy.  Or not.  Things are very risky.  It may not take much more to get the ball rolling.

From our oasis to yours, have a pleasant evening.