Stocks and Precious Metals Charts - Blues En Mineur - Obvious Wash and Rinse De Luxe

 

"I write to you from a disgraced profession.  Economic theory, as widely taught since the 1980s, failed miserably to understand the forces behind the financial crisis. Concepts including 'rational expectations,' 'market discipline,' and the 'efficient markets hypothesis' led economists to argue that speculation would stabilize prices, that sellers would act to protect their reputations, that caveat emptor could be relied on, and that widespread fraud therefore could not occur.  Not all economists believed this – but most did.

Thus the study of financial fraud received little attention.  Practically no research institutes exist; collaboration between economists and criminologists is rare; in the leading departments there are few specialists and very few students.  Economists have soft-pedaled the role of fraud in every crisis they examined, including the Savings & Loan debacle, the Russian transition, the Asian meltdown and the dot.com bubble.

They continue to do so now.  At a conference sponsored by the Levy Economics Institute in New York on April 17, the closest a former Under Secretary of the Treasury, Peter Fisher, got to this question was to use the word 'naughtiness.' This was on the day that the SEC charged Goldman Sachs with fraud."

James K. Galbraith, Why the 'Experts' Failed to See How Financial Fraud Collapsed the Economy, May 16, 2010

"Education without values, as useful as it is, seems rather to make a man a more clever devil."

C. S. Lewis

"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



Today was a classic 'wash and rinse' on Wall Street, an operation about as simple and obvious as a street game of 'three card monte.'

It is a waste of time and a kind of complicity to try and rationalize it.  

And on the surface many people seem to be asking for it.  

They can't get enough of con men and quackery.

Whacko-ness and hysteria drive out rational judgement.  By design.

Plus ça change, plus c'est la même chose.

Have a pleasant evening.

Stocks and Precious Metals Charts - All Saints

 

"May the Lord support us all the day long, till the shades lengthen, and the evening comes, and the busy world is hushed, and the fever of life is over, and our work is done.  Then in His mercy may He give us safe lodging, and a holy rest, and peace at last.”

John Henry Newman


Eternal rest grant unto them, O Lord,
And let perpetual light shine upon them.
May their souls,
And all the souls of the faithful departed,
Through the mercy of God, rest in peace. Amen.


"Do you not know that to whom you give yourselves as servants, his servants you become, whether of a corruption unto death, or of a righteousness unto life?"

Rom 6:16


"In the end, she said, the only real tragedy is not to have been a saint."

Léon Bloy, La femme pauvre

Tomorrow will be the FOMC rate decision for November.

There is little doubt that they will raise their benchmark by 75 basis points.

The speculation is on what they might say, of any hints of a relaxation or a 'pivot' in this increasing of rates.

And looming beyond that, but all too related, will be the October Payrolls report on Friday.

For having inflated another spectacular financial asset bubble, and greatly increasing the inequality between the wealthy few and the rest, the Fed must now put forward restraints and some privation, on those whom it has not benefited in its long malfeasance.

Audacious oligarchy.

Stocks popped and flopped, first on a rumour about China covid policy that seemingly had no basis in fact, and then a stronger than expected JOLTS jobs tally, which sent stock back down again.

The US Dollar chopped sideways, while gold and silver rebounded but then gave back some of their gains throughout the day.

The next few days are going to set the direction.

It was sad to see that an old man was beaten with a hammer, by a emotional deranged person who was determined to harm his wife, a politician.

Even more sad was how quickly some decided to fabricate and then spread around a story about how it had happened, that appears to have been just a pack of lies.

Politics has always been a dirty business, because in a corrupt system it is all about money and 0ower, and the domain of the darkness of this world.

I will be glad when these elections are done because the constant barrage of lies and slurs in the form of advertisements is difficult and a little disturbing.

People think they can get away with anything, say anything, hurt anyone, to get what they want.

There is an ebb and flow in the life and the character of nations, and of people.

Give yourself over to what madness that you will, but have no illusions about whom it is you serve.

In the end, the only real tragedy is to not be among the saints.

Have a pleasant evening.

Stocks and Precious Metals Charts - Lions and Tigers and Bears - FOMC and Payrolls Report This Week

 

"Therefore, if there is any encouragement in Christ, if any consolation of love, if any fellowship of the Spirit, if any kindness and compassion, fulfill my joy by being in agreement, having the same love, united in spirit, having one purpose. 

Do nothing according to selfish ambition or according to empty pride, but in humility considering others than just yourselves, each of you not looking out for your own interests, but also each of you acting for the interests of others."

Philippians 2:1-4

"In the last days perilous times shall come.  For men shall be lovers of their own selves, covetous, boasters, traitors, heady, high-minded having a form of godliness, but denying the power thereof.  Evil men and seducers shall wax worse and worse, deceiving and being deceived."

John Henry Newman

"Many will become addicted to hateful and malicious thoughts and hateful words.  Slaves to their desires, they will be ferocious, angry despisers of what is good and right.  With brutal treachery they will act without restraint, bigoted and blinded by clouds of conceit.  They will demand and find their delight in the pleasures of this world, and ignore their need to serve God.  They may act religious, but they want to serve themselves."

2 Timothy 3:1-5

“Why do you not understand what I am saying?  It is because you cannot bear to hear my words. You are from your father, the devil, and you serve your father’s desires.  He was a murderer from the beginning, and he does not honor the truth, for there is no truth in him. When he lies, he speaks according to his nature, for he is a liar and the father of lies. but because I speak the truth you refuse to believe me."

John 8:43-45

"If you want to be important—wonderful.   If you want to be recognized—wonderful.  If you want to be great—wonderful.   But recognize that he who is greatest among you shall be your servant.  That's a new definition of greatness.   And this morning, the thing that I like about it: by giving that definition of greatness, it means that everybody can be great, because everybody can serve."

Martin Luther King, The Drum Major Instinct

And as you may recall it was Satan who set an infamous point of pride in the great fall of angels, non serviam,  'I will not serve.'

And so his followers and devotees will still assert, even to this day. 

It is all the fashion and rage, under various euphemisms and slogans.

Stocks slumped a bit as a natural reaction to the recent bubblery they have enjoyed for the end of the month.

Gold and silver lipped as the Dollar rallied.

This week is going to be all about specific data points.

We have the FOMC decision and commentary on Wednesday, and the Non-Farm Payrolls report on Friday.

And at some point the Bank of England is going to do something about rates, and it may provide an excuse for some miscellaneous market shenanigans.

And of course next Tuesday we have the midterm national elections.

Time here now for incoming waves of candy-craving kiddos.

Happy Halloween.

Have a pleasant evening.

Stocks and Precious Metals Charts - A Cruel Deception - FOMC Next Week

 

"The Fed can create only paper.  Inflation does not create value, it merely masks the rot of economic stagnation, but can do so for several years if the inflation can be concealed artfully.  The US has been struggling through a particularly non-productive period for most Americans in terms of real wealth production especially as expressed in the growth of savings, which has been decidedly negative.

In their irresponsible foolishness and greed the Fed and the Bush Administration have managed to transfer more wealth from the many to the few, further impeding any sustained recovery since the health of the economic body has been concentrated in a few parts of questionable productive value.

This is how we coined the term 'Potemkin Economy' many years ago.  It is a cruel illusion of the Fed, the Treasury, and their associates in misdirection and deception. For that is what this has been, regardless of motives or intentions.  It is a disgraceful episode in our country's history, but this is what happens when one gives themselves over to the rule of fear and greed."

Jesse, The Cruel Deception, 8 July 2008

"In the task of that redemption the most effective agents will be men who have substituted some new illusions for the abandoned ones.  The most important of these illusions is that the collective life of mankind can achieve perfect justice.  It is a very valuable illusion for the moment; for justice cannot be approximated if the hope of its perfect realization does not generate a sublime madness in the soul.

Nothing but such madness will do battle with malignant power and 'spiritual wickedness in high places.' The illusion is dangerous because it encourages terrible fanaticisms.  It must therefore be brought under the control of reason. One can only hope that reason will not destroy it before its work is done."

Reinhold Niebuhr, Moral Man and Immoral Society, 1932

"It does not matter how small the sins are, provided that their cumulative effect is to edge the man away from the Light and out into the Nothing.  Indeed the safest road to Hell is the gradual one--the gentle slope, soft underfoot, without sudden turnings, without milestones, without signposts."

C.S. Lewis, The Screwtape Letters

The illusions of extremists, of both the right and the left, are dangerous things, for the very reason that they often incline themselves to sacrifice the individual, and even surprisingly large groups of individuals and segments of society, for the 'greater good' of their extremes and their illusions. 

A seemingly endless parade of infamous tyrants, forgotten viceroys, and faceless bureaucrats always seem to have their roots in the extremity of illusion that rises out of some turmoil of excess, and the throwing off of the restraints of reason.  And no people, no organization of people, and no nation is immune or exceptional to this extremity. 

The human being is remarkably clever and wonderfully self-deluding in choosing the things that they know are wrong, that they hide both from the world and themselves at first.  That they excuse, wrap in exceptionalism, drape in personal exemption and necessity.

Evil is a choice, or more properly a long, gradual succession of choices. And the madness never sleeps, is always open for business.  And looking for souls to devour.

It was 'risk on' today as stocks rallied hard all the way into the close, with the futures going out on the highs.

The Dollar chopped sideways, along with the metals slid down towards the bottom of their short term range..

The VIX fell sharply down to a recent low.

Must be an end of month thing, tee-ing up the next wash and rinse perhaps.

We will have the FOMC on Wednesday afternoon.

I go to see the dermatologist for a skin check every year.  

I got a call this week from the doctor to tell me that I have a squamous carcinoma on my leg.

Luckily it is early days, and some outpatient surgery will remove it later in November.  And hopefully it will provide clear margins.

But still, it is a bit unsettling to get that kind of call, no matter how prepared one might think themselves to be.  

Check ups matter.  I have seen it work for our good many times.  Do not fear them.

Have a pleasant weekend.