TraderWise

Remember the quote from How Markets Fail? During the past forty years, there have been 124 systemic banking crises around the world. These were credit-driven boom and bust cycles. There were three of them in the U.S. from 2000 to 2010. Boom and bust cycles are absolutely destined to continue, which means, for us investors:

1. Cut way back on our borrowing.

2. Focus on the worst evntuality.

+ Nouriel Roubini, the New York University professor who anticipated the financial crisis, said the U.S. growth outlook remains “very dismal.”

Much money has stayed in cash on the sidelines for fear of runaway inflation and skyrocketing interest rates. They haven’t happened. Interest rates and inflation remain historically low, despite the permabears. Two factoids:

Elizabeth Warren teaches bankruptcy law at Harvard. When companies go broke, the shareholders lose everything and the creditors take a hit. when AIG went “broke,” the government bailed the creditors out 100% and the shareholders are still alive. Latest price for AIG is $34.39. She wonders why taxpayer money was necessary to bail out AIG? I do too.

The number one problem with illiquid funds — like those called “alternative investments” — is you can’t sell them when they drop 15%.

My smart friends are loading up on TBT. It’s a double bet on long-term treasury interest rates. My smart friends believe that ultimately interest rates will skyrocket (and then they’ll clean up). Meantime, they are losing their shirts:

Everyone around is pretty depressed by:

I have been writing about the potential bearish reversal in the Shangai (China) Stock Exchange, and the need to focus on the Proshares Ultra Short China 25 (FXP).
See link here
Do you notice that probable ABC pattern ?
"C" is right above the $11 huge buy trigger

Ted Leonsis was so impressive on CNBC a few days ago I rushed out and bought a copy of his new book.