October 19th – 30 Year Anniversary 1987 Crash


COMMENT: 30 years ago today I was sitting in a brokerage firm in New Castle Pennsylvania on a personal computer that had 720 K of RAM and ran at 1 GHz watching the market and sitting looking at the charting. Prices on stocks were running between 15 and 30 minutes late, nobody knew what was going on. All we knew was things were dropping, dropping, dropping and dropping, everyone was confused. It was crazy. The volume was bigger than they’d ever seen before. Therefore, they could not keep up with the bids and the ask.

I was short the market with every penny I owned and I had no idea how well I was doing. We tried calling places to get current prices if you could get through and even if you did they did not have current quotes, it was pure chaos. When the dust cleared at the end of the day the brokerage firm I was with had gone bankrupt and had lost most everybody’s money.

I had bought a ton of OEX puts and the person who owned the firm. Instead of processing them through regular channels, he decided to write against me on his own. He did not have the money to cover them. I was right on the market but wrong about who I placed my bids through. Three days later all the brokers at this firm were laid off, fired or let go… however you want to put it…. the friend who had the PC and the stock charts. I helped him move all the stuff out to his house. The next year he started his own brokerage firm.

The interesting thing is 5 to 10 days before that drop I told everybody we were in for a major crash but nobody wanted to believe me. But it was in the charts and I tried to show them this.

REPLY: Welcome to the old man in the corner club. You know. The old guy in the trading room who use to say this is just like 1929 when we were kids. Now we talk about 1987 which was 30 years ago. I was giving a WEC that weekend. We just elected a set of Double Weekly Bearish Reversals. The Arrays called for a low in 2 days. There were no other reversals between 286 and 180.

I remember standing up there trying to find some technical support between 286 and 180. I could not. There was nothing between the two even technically. The audience asked me what would happen? I said look, it sounds nuts, but we should move down 10,000 basis point in two days.

I myself could not believe it. But people paid me for what the computer had to say, not my opinion.

When that happened, it was right on the ECM date. It was absolutely perfect to the T.

Everyone was calling for the 1929 collapse. The model said new highs by 1989. That’s when brokerage houses were begging me to please come and speak to their retail audiences. I agreed and went to Toronto for Midland Daugherty. They filled the place with thousands of people.

Australian brokers and British brokers were all lining up to have me speak to their clients. It was all in their self-interest. They were paying back then $100k to get me to speak to their clients because I only did Institutional. It was an interesting time.

Canada’s Hunt For Taxes Turns on Minimum Wage Earners


The hunt for taxes has turned to employees of companies. Any benefit you give an employee is considered “soft-income” and is to be taxed. In the USA, the maximum value of a gift I can hand an employee is $25. I can’t even give them a decent bottle of champagne for New Years.

In Canada, this same idea of taxing any employee benefit has gone all the way to hunting the minimum wage earners. The politicians have classified any discount an employee gets as tax-avoidance and they want their nickel and dime. A minimum wage store employee who gets a 20% discount on anything the store sells or if a waitress gets a free meal while working is to be taxed. The Income Tax Act of the Canada Revenue Agency is now targeting not the “rich” but minimum wage earners since the rich are leaving. When an employee receives any sort of a discount on merchandise or a free meal because of their employment, the value of the discount is to be included in the employee’s income and taxed.

The hunt for taxes is just going to get worse until the people rise up, as they have always done, and probably start yelling the same words: No Taxation Without Representation!” Politicians are doing the same thing that sparked the French Revolution with their arrogance when taxes reduced the standard of living and people could no longer survive. The response of the government was “let them eat cake” and that did not sit very well even if those words were not really spoken – it was the rumor attached to  Marie Antoinette

Left Opposes Lowing Taxes on Rich in France to Bring them Home


An online petition from the left in France is demanding that Macrone tell the “truth” about the tax rate the top 100 French will be taxed. They refuse to look at economics and insist that whatever wealth the rich have really belongs to them. Naturally, they have already gathered more than 10,000f French signatures demanding “truth” from their government. They want to know the plans for a far-reaching abolition of the rich tax. It does not matter that so many have left France and will not return. That is always irrelevant to the left.

Obama Administration Bribed by Russians?


Another example of how corrupt it is in Washington, prior to the Obama Administration, including Hillary, approved the Russian purchase of American uranium resources, it turns out that the FBI has gathered evidence confirming that there was bribery taking place for Russia to get the deal. Of course, Loretta Lynch never investigates Democrats when her own Administration is the corrupt one behind the curtain.

Obama administration approved the deal in 2010 giving Moscow control of a much of the American uranium sources. It turns out that the FBI had gathered significant evidence that Russian nuclear industry officials were engaged in bribery, kickbacks, extortion and money laundering to get the deal in the USA. They had a confidential witness working inside the Russian nuclear industry to gather extensive financial records, make secret recordings and intercept emails from 2009 onward.that showed Moscow had compromised an American uranium trucking firm with bribes and kickbacks in violation of the Foreign Corrupt Practices Act, FBI and court documents show.

This has been reported in The Hill, which is widely read on Capitol Hill. The quest now becomes – why has this not been investigated? And people don’t seem to get upset how failed lawyers, run for Congress who are average or broke and leave office rolling in the money. It’s not a swamp that has to be drained – its an ocean!

 

Fear of Heights – Vertical Markets


The rally in the US share market has been a VERTICAL MARKET as our computer has been warning would unfold. A VERTICAL MARKET is one that takes off yet leaves the vast majority behind because they just cannot believe the rally. I have been warning that this is the most hated bull market in history. The entire bull run during the 1920s was 97 months and we passed that mark last April.

 

They wrote the book on When Genius Failed over the Long-Term Capital Management (LTCM) debacle. People who create models make one fatal mistake – they are cheap when it comes to data. They even won the Nobel Prize for the model that blew up in the LTCM debacle. Why did genius fail? Because their model was based on data only back to 1971 when the floating exchange rate system began.

Now we have the ECB vice-president Vitor Constancio warning of the dangers of new price bubbles on the markets. Nobody seems to understand this market and they never will without a database that stretches back at least a few hundred years. You simply have to see how the market reacts under all conditions, Here t6he Dow Jones Industrial Index we extended back to 1790. The computer bought the low in 2009 and has been adding to long-term positions.

Constancio is totally clueless. He has referred the task of investigating this bubble to the regulatory authorities, which he says are known specialists in this area. Of course, if they really knew what was going on they would tell him. They also have no actual trading experience so how are they going to judge what is taking place based upon personal opinion?

The ECB’s caution has its reason becaue they too fear what is going to happen when they exit from the bond program if they even can. The program has transformed from economic stimulus to a plain outright program to reduce the financing interest rates of the over-indebted Euro-States keeping them on life-support. If this support by the ECB is eliminated, the outbreak of a new debt crisis in Europe could send interest rates soaring and a collapse in confidence in government. Therein lies the crisis. Once capital figures out that it is the governments who are in trouble, it becomes Mario bar the door!

After the WEC, we will make available for $750 – How to Trade a Vertical Market

Cryptocurrencies & the Scam


There is a serious new fraud centering around Cryptocurrencies. There have been some trading platforms set up that are suddenly changing the rules in mid-game. People who have tried to sell t6hings like Monaco Card etc. on these platforms have discovered that their accounts are frozen because they do not have the money to pay people. The excuse is they need to now suddenly PROVE who they are to liquidate. The requirements are onerous and simply a DELAY tactic. These platforms are a FRAUD and should be reported to the SEC.

There was a company IGBE (International Gold Bullion Exchange) back in the early 1980s. They were offering selling gold bullion coins at the spot, which was below cost, but the catch was 90-day deferred delivery. They were actually not booking the gold and expected it to continue to decline.

Cryptocurrencies are no different from any other investment product. It is a misrepresentation that they offer an alternative to the dollar. No matter how much money one made on Bitcoin, they still have to sell it to realize that profit and how are they measuring that profit? In dollars of course.

Beware of the fraud in these trading platforms that are now suddenly freezing people’s accounts claiming security to prevent people from selling.

Very Swampian – Trey Gowdy: Samantha Power Did Not Make Unmasking Requests Attributed to Her…


Hmmm… obtuse swampy defense surfaces. CTH smells the strong residue of UniParty Flak and Countermeasures. Unfortunately, not necessarily surprising.

During an interview with Fox News Brett Baier, the Chairman of the House Oversight Committee, Trey Gowdy, claims former Ambassador Samantha Power did not initiate all the unmasking incidents attributed to her.  [Video Prompted – just hit play]

[04:35 Video] Brett Baier: “You are also looking, and have talked to the former Ambassador to the United Nations, Samantha Power. We reported that she requested or her officer requested 260 plus efforts to unmask, in other words, get who was talking about picked up in surveillance. How did she answer that question? Why so many?”

Trey Gowdy: “Well, I’ll tell you broadly, uh Brett, I think if she was on your show, she would say those attempt to unmask may have been attributed to her. But they greatly exceed, by an exponential factor, the requests that she actually made.  So that’s her testimony, uh, and, and she was pretty emphatic.  The surveillance community, the intelligence community, has assigned this number of requests to her – her perspective, her testimony is: ‘they may be under my name, but I did not make those requests‘.”

“So, we’ve got to get to the bottom of that; if there was someone else making requests on behalf of a principal in the intelligence community we need to know that because we are getting ready to reauthorize a program, that’s really important to the country, but also has a masking component to it.”

   

Suspicious cat remains increasingly suspicious.

Sean Hannity Discusses Uranium One Scandal With Sara Carter and John Solomon…


Fox News host Sean Hannity reveals the stunningly explosive scandal he has been hinting toward for weeks and weeks. Joined once again by fellow explosive story seller Sara Carter, Hannity outlines the most incredible, scandalous, explosive, controversy, in history.

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The thing is… It really is a scandal; and it really is a big deal; but when pitched by the same team that claim every scandal is the biggest deal in the history of big deals, well, the ‘chicken little factor’ comes into play.  Thus we accept the historic modus operandi behind controlled opposition leaks, stories and narratives from inside the swamp.

When everything is sold as a big deal, then nothing is a big deal.  As such the UniParty swamp shrugs with a subtle sneer and says:… yeah, so? …And your point?

But, wait…, wait,… So then Hannity said Bubba was getting paid – and Holder, Rosenstein, McCabe and Mueller were in charge of the investigation…

Good Morning, Little Comrades


By Tabitha Korol

 

Nikita S. Krushchev said, “Comrades! We must abolish the cult of the individual decisively, once and for all.”

Vladmir Ilyich Lenin said, “Give me four years to teach the children and the seed I have sown will never be uprooted.”

 

The teachings of the Left include discrediting the Bible and replacing religion with social justice, dishonoring America and family, controlling the schools and curricula, and normalizing promiscuity. The Left has set about “deconstructing” (breaking down) the child’s psychology, removing every facet of life that provides the sense of security needed to create a mature, stable, responsible, independent, confident, and productive adult who will contribute to a free society. And it is through today’s schools that they are deconstructing our children in order to destroy the free society.     

  • Education reformers are damaging the children’s psyche with gender redefinition, creating dysfunctional adults with confused purpose.    
  • California lawmakers are proposing SB48; radicals, elitists and pseudo-experts are selling corruption disguised as freedom, promoting homosexual lifestyles while reducing morality and responsibility.     
  • Under Common Core, fine literature that hones our comprehension and creative skills, teaching initiative and courage, are replaced with dystopian literature that adds to their sadness, immorality, and overall impairment.  Mis-education is becoming un-education.
  • Cursive writing, known to enhance creativity, is removed from curricula, and restricts the student’s ability to read our founding documents, understand their rights, and be prone to subservience to a master regime. 
  • Common core began with higher standards, intentionally designed to frustrate and make for unhappy students.  Standards were then lowered across the board, to falsely lift self-esteem, reduce achievement and raise grades, but not in keeping with maturity and ability levels. 
  • Fatherless households lead to irresponsibility, rebellion, and crime; welfare policies encourage unmarried motherhood and incomplete families.
  • Schools discredit our Judeo-Christian roots and allegiance to our country, but dwell on Islam and socialism.   
  • There is growing disrespect for police and government.
  • Limiting free speech has prevented students from hearing opposing views, and the schools from providing a genuine education. They are fed ideas of Socialism/Marxism, globalism, and Islamism, and cannot reason, understand, or face ideas not within their realm of indoctrination. 
  • Schools are creating young fascists who are taught to march, rage and destroy, yet cannot articulate their purpose.
  • The future workforce is reduced through dysfunctional children and entitlement programs, and open to replacement by migrants who bring their tyrannical way of life with them. 

And now, another assault against the children has appeared in the offing, perhaps the most egregious. A mandate that first became evident in some English schools several years ago, now seen in some Canadian and American schools, is that children should be discouraged from having “best friends.”  England’s Thomas’s Battersea school has determined, with the agreement of some (but by no means all) parents and psychologists, that group bonding would encourage inclusion of all children and prevent rejection of the few.

The strength one gets from a best-friend relationship, if removed, may be sufficient to create enough despair where the individual will seek comfort in an ever-expanding government (the Marxist purpose). As with any detrimental Leftist concept, this technique is couched as an appeal for sympathy and compassion for those who are slow to bond with a best friend, but its stealth purpose is a means of assuring equalization by removing the securities of friendship.

Of course, not all children will immediately develop warm friendships, but should that be the norm to impose on others? Our schools have already lowered standards to meet the levels of lower achievers.  Should we also remove music and the arts with deference to the less gifted, or impose a veritable “eye for an eye” on behalf of those with poorer vision?  Would not our population be better served by a sensitive teacher to help all the children overcome their timidity and fears, learn the art of conversation, and develop the social graces needed to negotiate their future?  For school personnel to reduce every student to his or her lowest common denominator is a Marxist technique.  Already implemented in grading, it guarantees equality to the masses with obedience to the authorities, and where equality is imposed, freedoms are sacrificed. 

There are many quotes about the value of friends, four of which I thought prudent to include here:

“When it hurts to look back, and you’re scared to look ahead, you can look beside you and your best friend will be there” – Anonymous.

“My best friend is the one who brings out the best in me” – Henry Ford.

“Things are never quite as scary when you’ve got a best friend” – Bill Watterson. 

“A blessed thing it is for any man or woman to have a friend, one human soul whom we can trust   utterly, who knows the best and worst of us, and who loves us in spite of all our faults” – Charles Kingsley.

The benefits of friendship are many and unique.  We are social beings and friends fill a psychological need for survival, to cope with life’s trials and to remain inspired.  A friend is an eager companion, one who provides praise and kindly given criticism, and a way for us to learn trust and support.  Friends are there for comfort and to teach us about respect, sharing, thought, discussion and debate, analysis and problem-solving; simply put, they bring us happiness. Vital for our emotional wellbeing, best friends provide what parents and teachers cannot, particularly because the adults are less than perfect or may have, themselves, been deprived of best friends.    

The lack of close friends results in emotional distress – loneliness, sadness, emptiness, withdrawal – which can also take its toll on physical health.  It is known to be the leading reason for delinquency, school dropouts, antisocial personality disorder and suicide.  In adults, loneliness precipitates depression and alcoholism, and stress with sleep disorders and multiple medical problems. Psychologist John Cacioppo of the University of Chicago concluded that social skills are crucial for mental and physical wellbeing. 

In geographic situations that contribute to isolation, but where children may turn to books of imagination, challenge and rewards, achievement and travel, one might anticipate emotional success.  But today’s educational system has removed such books and replaced them with dystopian novels, where the characters are immersed in loneliness, sadness, defeat, and an environment bereft of reason. The stories provide situations of crises from which the characters may not always extricate themselves.  Therefore, with no escape and nowhere to vent, the child can lose his individuality, creativity and the chance to form valuable coping skills, and be drawn to any available group mentality, as well as drug abuse and alcoholism.

Robbing the children of the necessary human encounter and intimacy conforms to Leftist ideologies, which intend to destroy all social, economic, and political artifacts of classical liberalism. We see disintegration of the old society and family in the history of the Soviet Union, but, significantly, there are parallels in Islam’s jihadi warriors who emerge from emotional solitude and emptiness. The Arabic term, Asabiyah, defined in Kobrin’s The Jihadi Dictionary, is comparable to group consciousness, group-think, and the loss of individuality.  By destroying intimacy, empathy and compassion, the group creates the shame-honor culture, using passive-aggressive behavior of intimidation and scapegoating.  Happin is the meaning and purpose of life, the aim and end of human existence.

The child who is friendless and isolated, bereft of independence and initiative, responds with obedience, guilt, and lying to protect himself from being ostracized.  He may then be vulnerable to joining violent Leftist movements or submitting to Islamic radicalization. 

A civilization becoming a shadow of its former greatness – this is the gift of the Left.  

 

The ECB is now Worried Who Will Buy Government Debt if they Stop?


Mario Dragi Naples 10-3-2014

 

According to RELIABLE sources behind the curtain, the crisis in Spain led to a significant amount of selling Spanish debt to the European Central Bank (ECB) which has meanwhile swelled to 2.3 trillion Euro. There are problems now emerging in Italy and the appetite for government debt at low rates is not as strong as being portrayed. The ECB’s expansive economic stimulus package of buying government debt is NOT going to be stopped so easily. At the next ECB meeting on October 26th, the bond-buying program is most likely going to continue and at best they might claim to extend the bond purchase program with a modest reduction in volume. The ECB has not commented on this position, but there are rising concerns that member states will be unable to fund their spending without the ECB or a dramatic rise in interest rates demanded from the private sector.

The crisis building is all about how will the governments keep funding their debts?