Saturday, December 20, 2008


Just as an EKG illustrates the indisputable artifact of a heart attack, the VIX displays the same for a market in severe distress. If we look back at the October 2002 lows and compared the print of the VIX then to the VIX now, we see remarkably similar emotions in the charts. See for yourself. I took the liberty of indicating where the November 13th and Nov 27th lows on the S&P would be on the 2002 VIX chart. As you can see, the final capitulation low on the S&P prints a lower VIX then the double tops.

To me it looks like the groundhog has seen his shadow and we may be in for six more weeks of winter.

Thursday, December 18, 2008

ZIRP - Helplessly Bernanke

I would like to preface this by saying I have the utmost respect for our Chairman. He's just in the wrong place at the wrong time.

With that said, some entertainment, courtesy of a version of Neil Young's Helpless, as seen through the eyes of Bernanke. A GuidePostings original production...

Wednesday, December 17, 2008

Some Perspective

The equity market's extremely weak under-performance compared to the Dollar weakness/Euro strength is quite bearish. If we are robbing from Peter to pay Paul, Paul is getting the shaft. Maybe it's a fund of funds thing... I can not really see much more strength in the Euro from here in the near term. Inquiring minds want to know.

Tuesday, December 16, 2008

Does This Look Like A Healthy Situation?

Talk about bait and switch. The pundits on CNBC high five one another while the equity markets go up a few percent and the dollar goes down the same. Robbing Peter to pay Paul. When our currency stabilizes and stops trading like a stock I will buy this market hand over fist. Until then, it's just a pink pong ball going down the stairs.

Sunday, December 14, 2008

Is Ben Bernanke Charles Ponzi's Lovechild?

All this talk about the greatest ponzi scheme of all time had me look up the real macoy - Charles Ponzi. After glancing at his mug shot for five seconds I realized who he strikingly resembled - Ben Bernanke. Granted, Mr. Bernanke is missing a few of the fuzzy traits, but the likeness is uncanny.

Where is this guy going with this you ask?

If we think that the Bernie Madoff ponzi scheme is big, just wait until the Fed and Treasury's redemptions (hello China, hello Japan, hello World) come knocking. All Bernie Madoff did was pull a page from the fiat monetary policy page book. As long as new suckers, I mean purchasers, continue to buy up our debt, the scheme, I mean American Dream, continues. When will the music stop? Go ask Chuckie Prince.