Meltdown Soon-Social Unrest/Revolution Shortly To Follow.

I keep hearing V-Shaped Recovery.
Lower Unemployment.
Housing Stabilization.
Loan Mods to help home owners

All of these so called green shoots to keep the masses in the dark and stupid. The same rhetoric that was spoken about in 1929-1930, just before mass chaos.

tradersutra.blogspot.com/2009/08/conspiracy-to-keep-masses-stupid-and.html

Lets be honest:

Government has failed.
Treasury Has Failed
The Fed Has Failed.
Obama has Failed.
Congress and Wall Street have long since failed.

The only ones looking better are big business's, lobbyists, politicians, and Wall Street Bankers.

tradersutra.blogspot.com/2009/07/deck-chairs-have-been-moved.html

The general mood of the people is down right bad at the moment, soon to get much worse. Most are not comforted by green shoots or v-shaped economic recoveries, both of which are crap anyway. Most Americans are saying what Dick Fuld Ex-Lehman CEO said in front of Congress: "where is my bailout"? Instead they continually see policies and politics that further reinforce the power structure that got us into this mess in the first place.

Let me be very clear. I am a former trader on Wall Street, and I don't 100% blame Wall Street for all that is wrong with society. There is plenty of blame to go around, the consumers appetite for credit is part and parcel the reason Wall Street had to create these complex derivative products.

tradersutra.blogspot.com/2009/07/chicken-or-egg.html

But remember the US Consumer was told that this was the way to live the American Dream by the powers that be. Every single thing was done so that the great economic consumption machine keeps rolling. Lower Rates makes the decision to invest rather then save very easy. Lower taxes, deregulation, massive defense build up, stupid foreign policy, exploding deficits all were created to keep consumption growing. It was classic supply side economics, but the chickens have made their long pilgrimage back to the roost.

tradersutra.blogspot.com/2009/08/more-on-trends-and-effect-on.html

tradersutra.blogspot.com/2009/07/consumer-halcyon-days-are-over.html

But knowing all of this doesn't take away peoples general anger over what is currently in vogue. Which basically is the making whole all of the losses by Wall Street by the taxpayer. Its the worst type of socialism, the type that starts revolutions. More and more people are fed up even with the market rallying some 50% since March, because they don't see any change in their own finances and they read everyday the looting of America done by Wall Street. We hear Andrew Hall of Citigroup fame and his reported $100M bonus, record profits from Goldman and JP. Steven Schwartzman from Blackstone making some $700M last year alone, and his stock is down some 70% from its IPO! People are furious at the moment that this is going on and are in a rage that it continues unabated to this day. Have we even spoken about health care yet?

Lets also add that the various stimulus programs that have been put across are not helping ordinary citizens, and have nothing to do with a sustainable recovery for the economy. Its all short term to benefit the Wall Street bonus machine that is currently governed by Geithner/Bernanke/Goldman.

Bottom Line! Americans are not going to put up with this much longer. They are starting to understand the "Great Wall Street Conspiracy" to rip off investors/taxpayers/citizens, while getting insanely more wealthy in the process. All in the while sticking us with mountains of debt our great grand children won't be able to pay.

Expect a major major house cleaning, a second American Revolution when the inevitable eventual black swan meltdown happens. Its a matter of time. I am predicting a double dip recession in 2010, that will lead to a severe depression in 2011 that will extend for years to come. There is not a chance in hell that American Taxpayers will stand/sit around passively like they did in 2008-2009 or 1930. This time the meltdown will lead people to follow similar revolutions in France and Russia.

A perfect storm will erupt as the dollar and US Treasuries will retreat and there will be no more hiding places for Wall Street and its shadowy $670 Trillion banking system. The collateral damage will be sick and hard to stomach.

The Fallout:

Lobbyists are the single most detrimental obstacle to justice and fairness in our country.

tradersutra.blogspot.com/2009/03/pacs-lobbyists-no-change-in-america.html

These people are running the country into the ground and in the process destroying our democracy. You see it today with health care. Lobbyists will get marginalized and eventually self destruct.

To Big To Fail Banks will fail and will be nationalized. The backlash of huge bonuses and then doing nothing to assist home owners will create ripple effects.

The utter nonsense that is Goldman Sachs will have far reaching consequences. These guys are so arrogant and show no humility. Nothing but hubris. Huge day of revenge in store for these cats.

Creative Destruction that is the current banking system will make Glass Steagall return, killing the Wall Street investment banking model.

The Wealth Gap that is prevalent in America today is obscene. This alone will trigger hatred of the wealthy and rich. Remember the poor have strength in numbers. Massive rebellion.

The secrecy that is currently protecting business as usual with regards to Treasury/FRB and Wall Street will come to an end, thus the end of Wall Street.

The Federal Reserve in its own right is controlling its own shadow banking system with SIVS will come crashing down.

tradersutra.blogspot.com/2009/07/maidon-lane-llc-ulimate-siv-ponzy.html

tradersutra.blogspot.com/2009/08/frb-balance-sheet-and-credit-crisis-2.html

The simultaneous death spiral of the shadow banking system, Libor, USD, and safe harbor Treasuries will create a cesspool of unbearable pain.

tradersutra.blogspot.com/2009/06/black-swans-and-unthinkable-stuff.html

tradersutra.blogspot.com/2009/07/markets-evolve-uncoilget-used-to-it.html

The reasons this will happen is for the reasons that similar revolutions happened in France and Russia. People get tired of the Affluent/Rich/Wealthy getting away with murder on the backs of the poor. Every body will come to the conclusion that the entire rescue, the bankrupting of America was aimed at banks by banks with no benefits to ordinary citizens. This was done on purpose. No accident here.

The FRB has kept interest rates low so that depositors like us get no interest on our savings, while the banks borrow at these 0 levels and pass 0 of the savings on to us. This was exactly the deranged plan that was hatched to get the banks healthy again. You would think BOFA, Wells, and JP would tend to their image of taxpayer propped institutions by somewhat sharing in their heists, but have they once offered 0 or even 1% financing? They are making an absolute killing in mortgages at the moment, all at the expense of citizens.

You hear Ken Lewis at BOFA and Jamie Dimon at JP at every turn think they have some sort of entitlement to unlimited greed. Is it that we need the banks more then they need us? Public money saved these institutions, yet they keep hiking ATM, overdraft, over limit, and credit card fees. They cut credit limits all in an effort to screw the public while they bank huge bonus payments.

These growing disconnects are happening all over the world, politicians, heads of state, and central bankers are very aware of this, but so far have done nothing.

The anger even at the moment over the absurd situation that is health care, will not come close to the rage that will be extracted on bankers and Wall Street when things spiral down again and guaranteed bonus money is contractually obligated to be paid out.

Like I said, I will be working from home while all this plays out.