Good morning,

One of the World’s biggest Investment banks has finally marked to market with their synthetic credit risk securities whatever they are…but $2bn down the drain and I expect more to come.. the US futures markets have taken this badly so any positives out of overnight moves will evaporate..I am sure the JP Morgan guys will be amply remunerated for their efforts..one trader Bruno Ilksil amassed positions that were so huge it moved markets and the market in question was a $10 trillion market..not even sure how many zeros that is!!These guys are making Lehmans look positively conservative..I mean what is going on that one trader can amass positions this big…you have got to be kidding..this from my friends at zerohedge.com

 

Iksil’s positions in credit-derivatives have become so large that some market participants dubbed him “Voldemort,” after the villain of the Harry Potter series who’s so powerful he can’t be called by name.

 

It is comforting to sleep at night knowing these Masters are in charge of the asylum…according to one report I read if things go really bad they could lose $20bn..now we are starting to talk real money…lucky they will get bailed out so where the risk in taking these big bets…I believe it is called Moral Hazard..something the US knows a lot about!

 

Europe attempted a dead cat bounce but we will see little enthusiasm here today ..Fridays only mean one thing..Euro meetings and Politicians work on their new plan to present to us on Monday..not a time to be a hero..

 

So to our pathetic little market..we have no Bruno’s luckily…but expect a negative day today..yesterday’s Unemployment numbers were a shock and helped the market higher..now I am no economist(Astrologer) but I cannot believe that losing full time jobs and increasing part time jobs is a good thing…it cannot be good for an economy or confidence so although the headline figure of 4.9% is fantastic don’t be fooled by ‘lies: lies, damned lies, and statistics’ (Mark Twain).

 

Yesterday I went to the resource conference in Sydney..lots of people looking for money that’s for sure for projects and distinct lack of enthusiastic investors prowling the corridors and booths..there are good stories out there but apathy is running hot and no one cares too much at the moment…I listened to the GRY presentation and was impressed..stock has been trounced down to 75 cents and may be time to start to look at this West African Gold explorer…if that’s your bag baby!

My Sell in May call remains valid despite the market falling 150 odd points..we may have further to go..

Things to make you go Doh!!

 

1.US post is losing money fasting than even J P Morgan.$3.2bn in the last quarter and is talking about sacking 220,000 postal workers…

2.US posts a $59bn budget surplus in April…first in four years ..maybe JP Morgan could do with some of that!!

3.Spain need to increase its provisions for potential losses by up to 5 times current levels according to some reports..this will end badly.

4.Greece is in the death spiral..unemployment up 42% in a year ..1.1m people without a job 42% more than this time last year..this austerity is working really well..

5.Clive’Titanic ‘Palmer in $40bn project cancellation as China First Coal parts ways with our lovable goon! Shame and it was going so well.

6.Bank of England pulls its stimulus as worries start to emerge about inflation.

7.Goldman and others ,stick with their bullish forecast for Gold…1850 -2000 as only hard currency in this sea of fiat money…now fiat money is paper not the stuff that the car company prints in Italy!

8.Marc Faber known as Dr Doom predicts another 87 style crash..

9. Irish real estate prices, which have fallen about 55 percent from their peak in 2007, may fall for two to three more years and lose as much as 70 percent of their value, Danske Bank said today. Ex PM Haughey’s 100 Hectare estate in Ireland which was bought for 45m Euros at the peak is now for sale for 7.5m!!!!!

10.Kyle Sandilands admitted to hospital…let’s hope he gets well soon…real soon..2017 maybe!

Smile for the Day in this depressing World..

A turtle was walking down an alley in New York when he was mugged by a gang of snails. A police detective came to investigate and asked the turtle if he could explain what happened.

The turtle looked at the detective with a confused look on his face and replied “I don’t know, it all happened so fast.”

Have a good weekend and let’s hope we start to get some good news in the coming weeks ..like Kyle still in hospital and lost his voice!

 

Clarence

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