Thursday, September 15, 2011

Bankster ploys and toys

3:13 am (Hawaii) I'm out of my teeny position in FAZ. I got in late yesterday at 58.00, sold this morning in premarket for a wee little loss. It was almost funny. I saw FAZ push higher from below 57 to above 57, and gradually to 58. But precisely at 3:00 am (Hawaii), almost as if on cue, FAZ fell off the cliff right to 56 within 1 whole minute. I got out several minutes later as CNBC broke the news that the ECB is going to "conduct three new operations" of dollar liquidity in a coordinated move, which sounds like friggin laundering to me.

Whatever. This is why I don't put much into the FAZ trade here. The banksters are still in control, pulling all the puppet strings, and governments are their stooges. FAZ had no real chance of getting back to 58, let alone 57, so I took the tiny loss and walked. Sold at 56.35. FAZ now at 55.67.

This is just another maneuver by the banksters, just 30 minutes before the opening bell, with all eyes on TVs, to give the illusion of success. In the meantime, it looks like FAZ at 55 is a reality in a few minutes from now, if not seconds. 50 seems likely, too. But the reality is, there is no way for banksters in the US or Europe to eliminate all the toxic assets on their books (or off). The poison kills, and there is a stench of death that will ultimately be impossible to rid of.

For now, back to all cash. Maybe I'll fondle my little sack of gold and silver. It ain't much, but it's real and it's mine.

Update 3:56 am In hindsight, yes, it was clear yesterday when Geithner told Cramer that there is no way that a financial crisis would destroy Europe. Now we'll see how long this lasts. Anything that brings PMs and FAZ to bargain levels is to be grateful for. At some point, I'll hold my nose and buy. 

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