Ahhh the land of the free?????
Posted by MC on Jul 30, 2009
http://www.tradersbase.com/forum/general-discussion-misc/757-propaganda-america.html
My point with this rant thread is really that any society/nation that is heavily monetary based will end up predatory and become poor in at least a few ways (financial and moral). Add consumer credit to the mix and it all but guarantees that country will become poverty (indebted) bound. I can’t compare the US to anyone else, I don’t travel and don’t know about other countries. Since really everybody around the globe uses some form of currency they are all perhaps in the same boat?
I’m saying as a resident and full blooded American that the wealth re-distribution and consumer credit policies are predatory here. Sure consumer credit helps sell things via enablement and spin the economic hamster wheel. But we don’t make many exportable goods and we don’t have the money to back what we charge/borrow. We are a consuming nation which at some point HAS to catch up to us. Every bubble goes pop, the issue is of course…timing it.
Credit is a great tool to aid in starting and growing a business. It’s not a tool that should be used for college kids to buy an xbox, party at a strip club or other things they can’t afford and therefore shouldn’t do. It’s not a tool that should be used to be sure your LCD is as big or ideally bigger than all your neighbors. Yet that’s what consumer credit is used for here, and maybe abroad as well? Many of the outsource locations are becoming very disposable income based like us Westerners. GULP.
A family member that has cerebral palsy, they were given 3 large credit cards. They have NO job and are on SSI which just barely covers their living expenses. Is this ok with you? Does that make sense? To me it’s wrong but makes sense. If you give a group the ability to fabricate their own money supply (which entangles with the currency of the land) with NO real restrictions, this is the kind of $hit that happens. Greed is in an exponential bubble just like our inflation rate.
How about a kid I know that took several loans for school. This is a common theme with the youth of today, it’s scary. He is $100k deep in loans for a BA in criminal justice??? 
He bought a fast car, booze, lap dances…all on student loans. Is he a big part of the equation, YUP. But if the predatory lending wasn’t allowed people would have no option but to deny the commercials and other ways our psyche is used against us. We are being preyed upon mentally, then given the artificial funds to go and act on those urges they triggered. Bars, strip clubs and casinos/lotto are some of the MAJOR offenders. Booze (altered reality), sexual desires (desensitization) and the dream of being “rich” are probably the biggest downfalls of our society.
Why would lenders bother doing much restricting or checking WHO they are lending to. It’s not their money after all, it’s make believe. On a default they are in reality out nothing, just on the books. Ahhh…but then the banks will whine “we’re insolvent, we have no money”. The government fearing a collapse steps in and says here’s “money” to lend. And the banks get fatter and fatter with every bear period. They already own all of our property essentially.
In the old days you default on a credit account and they would come take the goods back to recoup money. These days you go bankrupt and they just wipe it off. They don’t even worry about salvaging any of the loss. Why is that? They simply don’t care, there are plenty of other new customers being born every day. These NOOBS are born into indebtedness and are counted upon to continue the cycle. What if one day, our youth becomes educated and refuses to participate in this system that is disguised as immense freedom, but in reality is monetary and moral slavery?
/end rant
/for now
A review of the way the market moves, and change is adopted.
Posted by MC on Jul 28, 2009
Kind of a rough view of how I look at the markets.
The cycles overlap where a reversal takes place. IMO big money sell into the late majority and become “innovators” on the opposing side as the late majority is just getting hyped up, then they add when the trend gives way. This is why the volume is so swamping at first, then dramatically lower and another spike when the breakdown occurs. Many suggest the practice of averaging down. Those that move the markets do this as well, and then add even more when the market breaks in their favor…ALL IN. They know where it’s going.
Another thing to point out is that the “innovators” are BIG money. So while on the bellcurve they look minute in size this is only true in terms of how many of them there are. These are market movers and they control the floats. The ELITE WEALTH! Small in quantity, HUGE in volume and power. They buy when news is OMG doom n’ gloom and sell when news is OMG to the moon. They do so against the herd’s mass psychology. HRMMM, quite the trick they pull on the majority. And they have done it OVER and OVER again. 
IMO it’s more controlled and planned than most want to believe. Ponder this post over. I mean how else could all that volume I illustrated not have follow through? How could that many people be wrong by following the news? There are 2 supply and demand chains in the market…smart money and dumb money. This is so evident to me I wrote about it on the blog. 
http://tradersbase.com/psychology/th…and/index.html
Hope it makes sense to some. 
Some new posts about Market profile and auction theory…
Posted by MC on Jul 23, 2009
http://www.tradersbase.com/forum/broker-platform-reviews/882-investor-rt-professional.html#post6541
and
http://www.tradersbase.com/forum/broker-platform-reviews/882-investor-rt-professional.html#post6542
GO GO Gadget money supply…
Posted by MC on Jul 20, 2009
These charts I always take with a grain of salt but never have TRILLIONS been added out of thin air in 1 shot. So this visually shows what has me all uneasy about our spending power and the future of the USD. YES, they have likely curbed deflation. But that’s not a healthy thing for the longer term.
Think about this chart, and imagine what it will look like after fractional reserve lending gets crusin, multiplying those TRILLIONS 10x or more! Loans are not back in full force, not even close. The bigger and more exponential the bubble, the more volatile and insane the falloff. 
My YM analysis bell is ringing as we approach the top trendline of the triangle.
Posted by MC on Jul 15, 2009
So we’re in a sexy triangle formation at the top of the range here. The downslope is steep so divergence into the triangle would mean less to me than if it was a slope with less volatility.
Personally I’d like to see a retest of the prior highs to even about the 9000 mark. That’s a good psych level and structure resistance as well. From there I’d like to see a reversal. How un-American…I know, I know. If the 9k range breaks up we will be in a uptrend for an extended period I would suspect. I want to move from stable value funds to more risky funds down low…so I’d like a drop please.
I would NOT go short yet…this is in a technical uptrend, support is holding well and it’s just not time unless your using options with time on your side or have a scale in method and you’re willing to try playing with fire. 
The land of the greed and the home of the fiat slaves.
Posted by MC on Jul 9, 2009
Below is my reply to a conversation that took place on another forum. A poster stated the paper markets were in a downtrend since 2001. I questioned that because I knew that wasn’t right (using mainstream USD analysis) and probed how he came to that analysis. He said when valued in tangible/hard assets (crude, gold, silver) the paper markets are in a downtrend.
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Well that’s subjective analysis and I’d need to know your lil slight of hand to be on the same page. 
The paper indices trade and are valued in USD. So while I see what u did there…that’s not typical analysis in the land of the greed and the home of the fiat slaves. 
I have issues with trying to price paper assets via something like gold for example. For one, in the last depression the government fixed gold prices.
EVERYTHING that can be manipulated HAS been manipulated, and it’s even easier now with leveraged derivative contracts.
Gold, crude, silver were all recently manipulated via derivative contracts.
So while I appreciate the school of thought that gold, crude, silver and what not are tangible assets, the derivative markets have skewed the valuation on the underlying horribly.
Again…you guys know I’m a ball buster. By no means an I advocating the USD and paper markets as a safe bet for life savings. LOL
But it’s amazing what a few TRILLION O’bama bucks can do. Sure spending power goes down in “reality”. But through the magic of fractional reserve lending we are gaining 10’s of TRILLIONS in lending power. Thanks to the bailouts we will continue to be able to live well beyond our means. We’re all living off IOU’s anyhow so what is “reality” anyhow? This country and all our “wealth” is based on worthless paper. It amazes me that most Americans don’t want to hear this and love having the wool to cover their eyes.
Charge it, take loans you can’t afford. WTF does it matter in the end? Seriously!
