Zero Hedge calls it the “most hated dead-cat bounce ever” – as economic
fundamentals, and the associated equity overvaluations – have even
perma-bullish Wall Street “throwing up all over it.” Consequently, JP
Morgan, Bank of America, and the rest of the “all’s well” crowd are actually
telling clients to “sell the rip,” instead of “buy the dip” as they have
relentlessly recommended since the dawn of time. Not that they’ll
necessarily be right – as said “experts”’ track record is not much better
than the Federal Reserve itself. Which is to say, horrible. Then
again, both institutions have the exact same raison d’etre – even if
for completely different reasons. Which is, to constantly sell “hope” –
in Wall Street’s case, to generate commissions and deals; and for the Fed, to
promote confidence in America, and its cancer-stricken dollar.
To that end, for anyone “worried” about Goldman Sachs’ recent
recommendation to not only sell, but short gold to $1,000/oz, consider
that five of their six “top trades for 2016” were stopped out less than six weeks into the year, due to
enormous losses. And as for their gold short recommendation, they are
using the oldest Wall Street trick in the book to pretend it is “right” –
which believe me, I know too well, having used it myself when I was a Salomon
Smith Barney sell-side analyst (oilfield services, drilling, and equipment)
from 1999-2005. Which is, to “post-date” the price of their
recommendation, to take advantage of the very price movement they “predict,” after
it has already occurred.
In other words, when Goldman saw the Cartel – which they are a part
of – attack paper gold on Sunday night’s “President’s Day Desperation Raid,”
they quickly cobbled together a “short” recommendation, knowing full well
that if they publish it before the equity markets open, their compliance department
would allow them to “price” the recommendation as Friday afternoon’s
close. Which, when viewed historically, gives the appearance of it
having been “right” – when in effect, they simply front-run what they knew
GLD would open at on Tuesday morning (the NYSE was closed Monday).
Thus, their “short gold” recommendation, which was published early Monday
morning – after the Cartel had already taken gold from $1,240 to
$1,210 on Sunday night – enables their analysts, already smarting from having
been so miserably wrong about their “top six trades of 2016,” to
(technically) claim having been “right” about this one. Which, I might
add, they are very likely to be decidedly wrong about in the coming
months – from $1,210, $1,240; and much higher numbers.
As for said “hated dead cat bounce,” even I demonstrated visible
anger yesterday, in not only watching a second straight day of unfathomably
blatant gold and silver suppression – at the same times of day as
always, via the same “cap and attack” algorithms; but watching the PPT
take the Dow 800 points off of Thursday morning’s lows, amidst not a shred of
positive news. Yes, said “last to go” markets have clearly become far
harder to control. But no, the PPT and Cartel have not yet lost control
entirely – as evidenced by said algorithms working their magic in the past
three days; in the “Dow Jones Propaganda Average’s” case, via Thursday’s
blatant “hail mary” rally; to Fridays’ and yesterdays’ equally transparent
“dead ringers.”
![a1](http://www.24hgold.com/24hpmdata/articles/img/Andy%20Hoffman-Deutsche%20Banks%20Death%20Throes-2016-09-08-001.gif)
![a2](http://www.24hgold.com/24hpmdata/articles/img/Andy%20Hoffman-Deutsche%20Banks%20Death%20Throes-2016-09-08-002.gif)
![a3](http://www.24hgold.com/24hpmdata/articles/img/Andy%20Hoffman-Deutsche%20Banks%20Death%20Throes-2016-09-08-003.gif)
Throw in this morning’s equally prototypical early morning Dow futures
surge – where essentially all of the stock market’s cumulative gains
of the past five years have emanated from; and 601st “2:15” AM” gold raid of
the past 688 trading days, and you can see why a temporary calm has washed
over the markets; and news media, which has gone largely silent, after
several weeks of non-stop, market-plunge driven reporting.
![a4](http://www.24hgold.com/24hpmdata/articles/img/Andy%20Hoffman-Deutsche%20Banks%20Death%20Throes-2016-09-08-004.gif)
That said, it’s going to take a lot more fake rallies – and gold
caps – to reverse the horrific technical damage incurred in the past six
months; which ironically, stair-stepped down with each major Central bank
action – from the Chinese Yuan devaluation in August; to the Fed’s December
“rate hike”; to the ECBs’ and BOJs’ respective NIRP expansions and
initiations in January and February. Let alone, the collapses of global
commodities; currencies; and in many cases, economic indicators to, near to,
or belowprevious all-time lows. Not to mention, the upside damage
caused by gold and silvers’ respective surges.
And given that said news flow has nowhere to go but down, it’s going to be
a tall order for the “powers that be’s” rapidly collapsing Ponzi scheme – in
the Cartel’s case, amidst record physical gold and silver demand; declining
production; and rapidly depleting above-ground, available-for-sale
inventories (no, there is no “typo” in the below graph). To that end,
I’m quite intrigued as to how the Fed will doctor the FOMC minutes of its
January 27th meeting to account for current market conditions, when they are
released at 2:00 PM EST today. Not to mention, as less than 12 hours
ago, we learned that foreigners sold more U.S. Treasury bonds in December
than in any month in history. To that end, it’s quite strange how
Treasury yields have, irrespective, plunged to nearly their all-time lows,
huh?
![a6](http://www.24hgold.com/24hpmdata/articles/img/Andy%20Hoffman-Deutsche%20Banks%20Death%20Throes-2016-09-08-005.gif)
Speaking of manipulative “death throes” – as best illustrated by the
People’s Bank of China first devaluing the Yuan, then depleting hundreds of
billions of dollars’ worth of reserves “controlling” it’s decline; and the
Bank of Japan unequivocally stating it would not take rates negative – only to
do so a week later, and two days afterward promise to expand its newly
launched NIRP policy with “no limits”; how about the lunacy of what’s going
on at Deutsche Bank, Europe’s largest bank and, in my view (not to mention,
the Credit Default Swaps markets’), the “next Lehman.”
To wit, it was just eleven days ago when, with its stock trading at
an all-time low, it had one of its “top analysts” pen a passionate plea to
the ECB and BOJ to stop cutting rates, accusing such policy of killing
Deutsche Bank’s $70+ trillion derivatives book “business.” In it,
without specifically citing NIRP – but instead, Central bank “easing,”
they complained that such stimulus was causing worldwide equity, commodity,
and currency declines. Which is quite ironic, given that no one has been more
vocally supported Central bank “easing” than zombified “too big to fail”
banks like Deutsche Bank, care of the massive leverage said stimulus
catalyzed.
And yet, eleven days later, with their stock “safely” 18% higher –
but still barely above its early 2009 spike bottom low – Deutsche Bank just
changed its “stance” entirely, in having a second “top analyst” publish an
article whose key point was that “without further policy intervention, there
is further downside for equities.” In other words, eleven days
ago policy intervention was bad for equities – but today, it’s systemically
necessary. Better yet, a third “top analyst,” when asked to clarify
these blatantly conflicting statements, said it was negative interest
rates that were the banks’ bane, whilst QE is decidedly
positive. I mean, how dumb is this guy, in not realizing that NIRP and
QE are exactly the same thing; particularly in places like Europe, where the
ECB is expanding QE – i.e, monetizing sovereign bonds – that already have
negative yields!
Yes, my friends, these are the death throes of a dying financial Cartel,
an imploding banking system, and a collapsing fiat currency Ponzi
scheme. To that end, do not for a second take your eye off the
ball of what’s really going on. And please, use “eye of the
hurricane” calms like todays’ to PROTECT YOURSELF from the storm’s far
nastier “back end.” I assure you, it’s too late for Deutsche Bank – and
countless dozens of other insolvent banks. But fortunately, it’s not
yet too late for you.