-------- Forwarded Message --------
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Subject:
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Holding
Humpty Dumpty Up There;
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Date:
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Mon,
14 Dec 2015 10:21:06 -0800
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From:
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To:
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{If there is one thing the Jews are desperate to do is hold that Stock market up! You could have gotten rich indeed just blindly buying the Dips on Margin since 2009. But now there seems to be some Wheel Spinning trying to hold it up at this level. L.}
[Denninger;]
If you are one
of those who believe that the markets will be ok and stocks are a "good
investment", and in particular if you've tried to hide in dividend-paying
stocks as a means to get some income, you're in trouble.
Big trouble.
Kinder-Morgan, one
of the pipeline companies paying a hefty dividend and allegedly immune
to oil price considerations since you have to move the oil
irrespective of price, has been utterly hammered,
sinking more than 5% today to a cumulative loss of nearly 66% (!) since April.
Cramer is saying
"I got it wrong" -- yeah, you sure did, you jackass. Chasing
yield got you a better
than 60% loss, a catastrophe that is
in fact worse than the 2008 crash in the broad market and that
hasn't come yet!
The bigger issue in
the broader economy is that ex-McJobs the only growth in employment,
statistically-speaking, has been in the "new energy" business
-- in the fracking-n-shale plays, in short. I warned over a year
ago that there was a serious problem building there with excessive
leverage and that these firms were dependent on high and rising
oil prices which was unlikely to continue.
Well it didn't
continue, oil prices collapsed instead, and with them the balance sheets of all
of these firms are in big trouble. They all have high debt loads and have
financed forward production predicated on a price for deliverable
product that they're not going to get. This doesn't create
an instant detonation
because producers typically sell forward product on the futures market (one of
the legitimate uses for such markets) however those sold-forward
contracts eventually expire and cannot be replaced at yesterday's
price -- only at today's.
The broader credit
risk problems are coming to the fore, and this is and will be
a process. As
with the 1980s where credit risk ultimately blew up the S&L industry there
are big, hidden losers out there today that have yet to be unmasked. That
day will come and when it does the market impact
will not be "muted" and result in a
puny little 1 or 2% sell-off.
But heh, go hide
in stocks with 1000x P/Es like Netflix and Amazon. I'm sure it will be ok
and nothing bad could possibly happen to you.....
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