Subtitle - “How to make money when the MORONS in charged are guilty of GROSS NEGLIGENT”.
The US of A is in an Inflationary Depression. Wage depression was reported by the IRS in 2000. Inflation is due to the Housing Bubble. Housing was hyper-inflation due to the trillions of dollar$ in fraudulent mortgages courtesy of Fannie and Freddie. These fraudulent mortgages were leveraged in other parts of the financial system. Some examples are “over the counter credit market“, mortgage securities, mortgage insurance, home equity, personal loans, car loans, etc.
Scenario 1: Fed does nothing => Punt Kick to Politics.
Case A: To Big To Fail - US of A’s government continues its involvement in the financial system despite Tea Party consent. Under this case investments in Very Big Institutions will be safe aka. Buffet and Bank of America. However, regionals are vulnerable (short them). Government guarantees will have to be paid as the economy sours. The guarantees that were passed like car loans, etc. This stealing from tax payers might infuriate Tea Partiers into a blocking action on all government involvement and the usual threat of shutting down the US of A’s government when no 2012 operation budget is passed.
Case B: Tea Partiers Block Bailouts - Politics makes strange bed fellows. Short all financials and the US of A dollar and buy gold.
Scenario 2: Fed uses the discount window/special programs. Short all financials and the US of A dollar and buy gold.
Scenario 3: Fed does QE3. Aggressively (on margin) short all financials and the US of A dollar and buy gold.
Viva La Revolucion!!!!
Thursday, August 25, 2011
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