Thursday, June 24, 2010
Morgan Stanley - Toast
And don't let the door hit you in the a** on the way out. I profiled Morgan Stanley's (ticker: MS) chart in a recent prior post and the anticipated break-down occurred today on decent volume. Here's a 19 month daily candlestick chart of MS thru today's close:
Now why would I be happy that a venerable American corporation may have crossed the line into a potential death spiral? Because, like many Americans still trying to work hard to get ahead, I am angry at what has happened over the past 2 years in this country. Yes, it started long before that, but Morgan Stanley has been as American as Hitler or Mussolini over the past few years. A rigged game favoring fascist/corporatist pigs benefits the few at the expense of the many. I am mature enough and aware of history enough to know that this is just how great empires end, but it still stings.
And I am glad that one of the biggest pigs feeding at the government trough is failing. I am glad because I don't want to live under this system of evolving fascism. I believe that economic freedom works, despite all the hardships it introduces and all the responsibility it entails. I want Morgan Stanley, Goldmun Sucks and JP Whore-gan to fail. I want a level playing field, no matter how juvenile and naive it is to think such a thing may happen.
The confirmed breakdown in Morgan Stanley is ominous for the entire U.S. stock market. The third biggest and baddest Wall Street firm, which is only still a company thanks to the unintended generosity of American taxpayers, is a joke. They have all the insider information, the most sophisticated research, access to free money at no interest and the fastest computers on Wall Street. And they are still losing! HAHAHAHAHAHAAAAHHHHHH!
Cronyism works until you need to be smart or agile, then it fails. Inbreeding doesn't work as a policy and only outright theft and cheating can remedy the intellectual deficits introduced by promoting the weak at the expense of the strong. As Martin Armstrong has told us from first hand experience (while he rots in jail for being smarter than the apes), it is about guaranteeing victory on Wall Street by rigging the game, not about the thrill of competition or survival of the fittest.
Two down (i.e. Bear Stearns and Lehman Brothers), three to go (i.e. MS, Goldmun Sucks, JP Whore-gan). Morgan Stanley should go first according to my charts and common sense. Wake me when Morgan Stanley's stock price hits $15/share.
The bear market is back and its job is to destroy the excesses of the prior bull market. The destruction of the U.S. Dollar as the world's reserve currency and the destruction of at least two of the three remaining financial behemoths that support it makes sense from a secular bear market perspective. I am only the messenger and as an American, I would prefer a different message needed to be conveyed. Meanwhile, Gold continues to expose the ridiculousness of our system and its corrupt, hollow core. America is not even close to the worst country in the world, it is just the one with the most to lose. It ain't good for me or the world, but that doesn't change the facts. I am ranting here as an antithesis to the controlled mainstream U.S. financial media - in other words, to speak the truth as I see it, whether good or bad.
Once the Dow to Gold ratio hits two (and we may well go below 1 this cycle), then it is time to become bullish on America again. Until then, let the rot be purged and thrown out to into the oily sea.
OK, sorry for venting, now I feel better...