Scary...BUT TRUE

I am a Larry Levin subscriber. Sometimes he does go over the top a little...BUT everything he says is very true. It's just that most people, including the all-knowing markets, don't know or want to acknowledge what is REALLY happening.

Here is his latest piece and, frankly, you would have a hard time arguing with what he says here (at least, I would.)

The market was once again trading in a very tight range this morning...and it was VERY choppy. A few hours before the FOMC announcement, however, the S&P was very quiet - waiting in anticipation.

In a nutshell, the FOMC said "We're gonna keep interest rates at zero, giving mega-banks free money, so that they can more easily rape the public to earn massive interest and fees. After all, the mega-banks are still in big trouble even though we're not going to tell you all the details. These fees and free/zero interest for the mega-banks are bringing them back to life, and even though your 401k's are now 201k's - we don't care. The mega-banks are more important than everything else under the sun."

"Speaking of the importance of the mega-banks, we will continue to monetize US debt without admitting it of course. How we do it is through the primary dealers: Government Sachs and the boys buy up all the IOUs and then we, the Fed, buy it a few days later. Since there is a middle-man holding this new debt for a few days, we can deny monetizing it and the dolts in Congress leave us alone."

"Oh, oh - and the massive $18-trillion of loans and guarantees that we have made will not be stopped any time soon. That would lift the curtain on the bank asset sheet problems and we can't have that. And according to our records and those of the Wall Street Journal, about 50% of the current bank profits are coming from their trading desks. Since we are guaranteeing everything under the sun there is no fear of loss and the banks can jam the market as high as they like. Oh yeah, and the high frequency trading scandal that is currently being discussed, we're gonna stop that. Allowing the mega-banks to cheat and steal billions of dollars from their best suckers...clients...is OK with us at the Fed so we're gonna put and end to a few Congressional outcry's of manipulation. So what if they're right; the mega-banks need the money.

"To hell with 'what's right' and legal; we're the Fed and you can't stop us."

This is why you can't trade the news...

Market Club (Trade Triangles) just did a short video on why Gold is not sky-rocketing yet, even though we've closed above $1000 a few times now.

Now, here's a blurb from a piece that Reuters did today on the FED meeting:

...Policy makers said inflation would remain subdued for some time with substantial slack in the economy dampening cost pressures, and with long-term inflation expectations stable...

Does this mean I am going to sell my Gold calls now, and take more profit (thus leaving my short naked?) NOPE. But, there is definitely a question as to how much inflation we're actually going to have.

On the other hand, I do the food shopping for the house, and when a 12 oz. box of Frosted Flakes is selling for almost $5, you have to wonder if we already are having inflation! Postage stamps, milk, pickles etc. are all very pricey...so it really does make you raise your eyebrows as to what the FED considers to be non-inflationary.

The Reason Why Gold Hasn't Skyrocketed

I still have half my Gold calls. Can't think of anything dumber then maintaining a short without protecting yourself. I made a huge profit on the first half (see previous posts.) I am also significantly up in the other half of the calls...however, according to Market Club...this might be temporary.

Take a look at Adam's newest Gold prediction.

I forgot to include some images...

I forgot to include some images from Adam's new "BE CAREFUL" video. These are two charts in his video that backup his very cautious tone. If you are in equities, just be careful. (clicking on the charts give you clearer views):

AND

He is one of the reasons my blog accounts are up 150%...(statement update Friday.)

Site issues

I just found out that the wonderful host (of this blog) is doing an upgrade to their servers and I am being prevented from uploading an updated statement until Friday.

I have been getting emails from some of the blog's followers wondering what was happening...really frustrating...it is ridiculous that it takes them over a week to allow me to upload files...

A couple more reasons to be cautious

I discuss how Market Club (and Adam Hewison) has been very instrumental in all my account's successes (not just the Bob Iaccino account below.) The Trade Triangles you see discussed in the post from the other day (where we talk about buying and holding) have been extremely profitable.

Now...in addition to these recent "be careful" posts I did here and here, Adam just came out with this "be careful" video.