Monday, October 10, 2011

Occupy Wall St.: Right Idea...Wrong Reasons

Hi all!

It's been awhile.  Things in my world have been crazy busy so I haven't had time to post.

I just wanted to quickly chime in on the Occupy Wall St. protests.  My quick take on the whole thing is they have the right idea but they are doing it for the wrong reasons.

Their agenda is very fragmented and reminds me of some form of socialism. 

That being said, I support the movement.  I hope that OWS will eventually morph into an uprising that focuses on our corrupt political and financial system.

Watch the video below if you need a reminder as to what we should be protesting about.  Dylan pretty much nails it.

Lee Adler also gets it.  This is a must read.   The Fed's Bernankecide as Lee beautifully puts it continues.   The first few paragraphs of this piece pretty much says it all:

"We as a society must stop pretending. Most of us think that we still have money in the bank to protect, so we go along with the game of extend and pretend. For some of us, the game has already ended. The rapacious zero interest rate policy that I call Bernankecide has already robbed millions of savers of their life savings. This is the reality that has yet to hit home for many Americans who are content to wallow in the status quo. Unfortunately, the longer it takes for them to wake up, the worse their, and our, fate will be.

My mother and millions of other senior citizens are among the victims of the game that policy makers and those who empower them are playing. Their life savings are gone because Bernankecide, the financial genocide of the elderly, forced them to spend their principal. Now the government is indirectly confiscating 8% of my income because I must support my mother. That percentage is likely to grow as her health deteriorates.

Millions of other boomers are in the same boat. They are forced to pay this immoral hidden tax because Ben Bernanke decided that the innocent must pay for the sins of the guilty. While Bernanke’s ZIRP goes on allowing the banksters to continue to collect their fat bonuses, it steals the savings of millions of Americans, eliminates their disposable income, and cuts the spending power of millions of others who must now support those rendered destitute. The guilty benefit, and the innocent are punished."

The Bottom Line:

Let me preface this by apologizing for being so quiet recently.  I am hoping to pick up the pace on my posting over the next few months. 

When it comes to the markets I am speechless.  The HFT's continue their games.  I have been playing the short side in the last few months and done well shorting DB, COF, and PHM.

I am now currently pretty flat from a trading perspective.  I am expecting a move back up to around 1200 on the SPX. 

Europe is a disaster, and there is a risk that their banking system could go belly up if the EU doesn't take action within the next few weeks.

The Dexia stick save this weekend has juiced the futes.  This makes no sense of course but what else is new?  I expect an S&P downgrade of Belgium and France within the next month as a result of their failed banking systems.

Greece appears to be toast.  The regulators are now trying to sell the "orderly default" dream to the markets.  History has shown that there is no such thing.  When Greece goes down I expect haircuts in the 70-80% range versus the 50% that has been thrown around.

I am sitting on my hands for now until I can get a better grasp as to what is going on.  Good luck out there and be careful!.


CT-Hilltopper said...

I've missed you, Jeff.

Excellent post, btw. :)

Herb said...

Welcome back!

The think I like the most about the Occupy Wall Street movement is the fact that there is no concrete agenda. There is no spin from cable news. Even NPR didn't know what to do with the story for 2 weeks.

This must strike fear into the hearts of lobbyists that thousands of people are angry ( or maybe hopeless) enough to do this. Will the next tax break for Bank of America push them over the edge?

This reminds me more of the Hoovervilles and Bonus Marchers from the 30's. Will there be a Patton brave enough to order his troops to kill US Citizens this time around or will there be Hellfire missiles launched from Predator Drones by faceless CIA operatives working from a bunker in Virginia?

Is there a pool yet on when Greece officially collapses and is ejected from the Eurozone? My money is on Jan 1, 2012.

Anonymous said...

Thanks for posting Jeff--good to hear from you. I don't really have anything to add except in complete agreement with you. I'm mainly sitting in cash for now.

Jeff said...

Thanks CT:)

Sorry I haven't been around much. Works been crazy!

Jeff said...

Thanks Herb

I think OWS will eventually find their groove and get on the right message.

The protesters are angry and frustrated but they don't really understand who they should direct it against.

They also don't have a clue about finance.

AS for Greece I don't think they make it to JAn bud. In this bailout world who knows. Maybe it could happen.

All I know isthe wild markets swings eerily reminds me of late 2008.

Have a feeling it's not going to be pretty in the long run.

Jeff said...



Nothing wrong with cash here. I'm right beside you.

Getting itchy to get short here now that we got back up to 1220 on the S&P.

We either break through this range and march higher or this moves fails and we start tanking again.

We are in another bailout mania so its hard to really guage how long this will last.

getyourselfconnected said...

Hey Jeff! Great to see a post from you. Been busy huh? All my best.

C-T comes here to comment but not my site, I am not hurt or anything .....

Jeff said...

LOL thanks Get

Nice to hear from you bud. Hope all is well!