Wednesday, May 18, 2011

Morning Update/ Market Thread 5/18 - Paying Attention Edition…

Good Morning,

Equity futures are slightly higher this morning after beginning their bounce yesterday afternoon. The Dollar, however, is also higher, bonds are flat, oil is higher and looking to retest $100 from below, gold & silver are both higher, and most food commodities are adding to yesterday’s gains.

The very broken MBA Purchase Application Index supposedly fell by 3.2% last week - remember, this is spring and it's odd that the housing indicators are turning negative this time of year. Still a very large move for one week, but it seems quite tame compared to the wildly and completely unbelievable swings we’ve seen over the past two years or so. But then we look at the Refinance Index and see the claim that it jumped 13.2% last week! Is there anyone who believes that? Sorry, but I don’t – data from the MBA is nothing but FRAUD, I’m not sure that even the direction of movement is right, but I’m definitely sure that weekly swings of that magnitude are not real.

Yet gullible people who should have alarms ringing in their heads pretend and pretend because their own livelihoods depend upon it. Here’s Econopretend:
Falling interest rates gave a big 13.2 percent boost to MBA's refinance index which has now risen 33 percent over the last five weeks, a span that has seen 30-year mortgage rates drop more than 50 basis points. The average 30-year rate fell seven basis points in the May 13 week to 4.60 percent for the lowest level in six months. But low rates are not boosting buyers, not at least in the latest week as the purchase index fell 3.2 percent to upend four weeks of gains.

Pleeeeaaaassse… Anyone believing that has rocks in their head. The fact that the morally challenged MBA has anyone believing their fantasy only means that they should be nominated at the creative writing awards.

The petroleum status will come at 10:30 eastern, it will be interesting to see if the Mississippi flooding has any effect. Already record levels of oil in storage and falling demand for gasoline are clear – the price of oil being elevated is nothing but another fraud, the distortion created by creating vast sums of money.

And the debate about the end of QE2 continues – some “Fed” members arguing that conditions allow them to stop. I can guarantee you that if they do stop, the next wave of deflation will almost immediately arrive. Unless they are prepared to profit from the fall, and to asset strip Americans – and they may very well be – then I think the printing will absolutely have to continue at some point. Regardless of how the waves unfold, there will be waves, and they will grow larger in scope, not smaller. “Other Events” will also need to be larger in scope as the exponential growth of the impossible math continues to express itself in ways that completely confounds those who are not paying attention.

FRAUD is pervasive at all levels in our economy. FRAUD starts at the top. Allow it at the top, and it will be allowed in the middle. Even the bottom feeders will revert to fraud to survive, they have to because they are being defrauded by everyone above them. Lie upon lie, fraud upon fraud. And it is coming from the top, we are paying attention - Whistling... (Birth Certificate Is A Forgery).

As the true nature of events at Fukushima are slowly coming to light, the awful truth that I have been reporting here from the beginning is just now being acknowledged by the Japanese. But on the very same day they admit to complete core meltdown(s) that have breached containment, our own government via the Nuclear Regulatory Commission proclaims that the Japanese have it all under control, that the situation is improving, and therefore they are not even going to monitor the situation over there anymore! Of course this comes after the FDA FALSELY proclaims readings in food over here have been improving (and also stops monitoring) – a direct contradiction of evidence from Berkeley.

Up is down, black is white. And FRAUD is prevalent everywhere you dare to look. So is government capture by special interest money – as in complete and total capture.

Of course the large banks are INSOLVENT, and the FRAUD continues in that space. Mortgage FRAUD is so out-of-control that no one can admit how ridiculous it got, much less do anything to actually fix it. Now the New York Attorney General finally says they are going to investigate 8 banks who “misled rating agencies.” Pleeeaaase. The FRAUD is so in your face, and the regulators so captured that we all know exactly where this is headed – nowheresville, or at worst finesville. And of all the banks named, funny how the largest New York Bank, the one whose CEO sits on the New York “Fed” and has the world’s largest (by far) portfolio of financially engineered and marked-to-complete-fantasy derivatives is the only large bank NOT named (JPM). Pathetic.

Yet again your attention is being directed away from the fraud and onto men who can’t keep their tools in their pants. Yes, these men are all about FRAUD, the sick and perverted personality traits of the fraudsters is clear. The wrong men are running the government and their lack of morality is HUGE in letting the special interest capture of government continue unabated.

Well, that’s all the fraud that even I can stomach for today. Yes, I’m paying attention and the day of accountability is getting closer.

Markets? Give me a break, there are no real markets until we find men who are willing to remove the fraud.