The Financial Markets Are A Complete Joke

Hold tight to your metals. When this thing flushes, the market crash will be spectacular and the move up in the metals will be equally spectacular. Most people in this country, regardless of how paper dollar rich they are, will be ruined.  – Dave Kranzler, Investment Research Dynamics, Golden Returns Capital

As most of you know, gold and silver were in serious rally mode yesterday (Sunday evening) after the CME Globex computer system opened, followed by India and Asia.  The metals rallied throughout the Asian physical market session, only to be sold down once Asia closed and the fraudulent London/NYC paper metal markets opened (click to enlarge):

OvernightSilver

The graph above shows the overnight action in silver. Gold traded in a similar fashion.   Conversely, the S&P 500 futures were red overnight.   After the early bad economic and geopolitical news cleared the tape, the Fed launched its SPX boosters and the S&P quickly went from down 1 to up over 8 points.

By the way, for anyone interested in taking advantage of a soon to be collapsing real estate market by shorting the stocks of homebuilders (Homebuilder Research Reports) should know that the Construction Spending report for January missed the Wall Street Einsteinian consensus estimate by huge amount.  Construction outlays plunged 1.1% vs. the .3% gain expected.  This was vs. being up 1.8% for January 2014 from December 2013. This data does not bode well for new homebuilders, which are insanely overvalued and overleveraged with debt and unsold inventory right now.

I was chatting with a well-know financial markets guru on Friday.  In his work, he chats off the record with several high profile professionals who are either directly or indirectly connected to what is going on “behind the curtain” in DC and Wall Street.  He confirmed for, based on his off the record conversations with these people, that the western Central Banks – especially and specifically the Federal Reserve – are manipulating ALL of the markets 24/7.   As my title states:   our system is a complete fraud.

7 thoughts on “The Financial Markets Are A Complete Joke

    1. Very true. I know the dealers around Denver I talk to all the time are selling A LOT of silver eagles. They’re all paying spot + $2 to buy them from sellers. 1 oz. gold Pandas are almost non-existent

  1. So what is the scenario that breaks this manipulation? I think when the 2nd hit comes in the oil market and crude will see a 20 handle it will put a lot of pressure on the FED. The US consumer appreciates lower petrol prices. But they also expect higher wages in the months to come. And this is the real driver of inflation – not so-called money printing. What will the FED do when wages go up? They had to raise interest but will do they it? So either we have a market collapse or the markets tank. Raising interest rates would strengthen the $ even further and possibly crash emerging markets. So I don’t know how this will play out. But as I see it whatever the FED does from now on is a bad decision and either one should be positive for the precious metals.

  2. Dave, just had a look at some stats from the Canadian housing market.
    Talk about a bubble! The average cost of a single detached house in Vancouver is +$83o,ooo.oo CAD! This is almost 12 times the yearly average income of an individual. The other overheated Canadian housing market in Toronto, the average price for the same house is +$560,000.00 CAD! While in northern Alberta near the tar sands at Fort MacMurray, the housing market is starting to crash.

  3. BBVA Compass helping low- and moderate-income borrowers overcome barriers to homeownership
    – New HOME program helps qualifying borrowers meet down payment, closing costs
    – It’s part of bank’s effort to support low- and moderate-income individuals, neighborhoods

    February 26, 2015

    HOME allows qualifying borrowers to finance up to 100 percent of a home’s value, with the bank contributing up to $4,500 toward certain closing costs. The program is part of BBVA Compass’ recent pledge to put $11 billion in lending, investments and services toward supporting low- and moderate-income individuals and neighborhoods, and will also include a free online homebuyer education course to help prepare borrowers for the responsibility of managing a home loan.

    http://newsroom.bbvacompass.com/2015-02-26-BBVA-Compass-helping-low-and-moderate-income-borrowers-overcome-barriers-to-homeownership

    “They’re Back” – We Have Learned Nothing In 10 Years!!
    http://www.zerohedge.com/news/2015-03-02/theyre-back-we-have-learned-nothing-10-years

    1. Ya I saw that earlier – I’ll have commentary on that either later tonight or tomorrow. It’s scheme to provide an outlet for PE firms who are now looking to dump big chunks of low-end homes purchased for rentals.

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