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1. I’ve been saying that something is wrong with Deutsche Bank. It holds the world’s largest derivatives book. The question remains, is the risk systemic?

   The KBW chart shows a double top. The current pullback is either a huge problem or the usual resistance upon reaching prior highs. A pullback here is the norm but a failed double top is usually an indicator of a massive sell-off. Could go either way but the fundamentals are where to look.

   On the macro front, the old banking system is under enormous pressure. This pressure is from several places but can be summed as; we don’t need them anymore. Crypto, FinTech payment systems, Localized ‘wallets’ on phones and other devices, and less and less people using paper all make having huge buildings with tens of thousands of employees seem a little silly, and it is.

   The destructiveness of bailouts goes far beyond money spent and the psychology of zero consequences. Industries of all kinds go extinct. Failure forces innovation. The nimble and smart make changes, sometimes revolutionizing whole economies. Let them fail. It’s the best thing we could for our future. I say again, we don’t need them. Stop propping up the horse and buggy industry!

   And on a side note, half, more or less, of the world’s population are middle men in one form or another. The banks are no exception. Middle men do not take kindly to being cut out.

   1. Yes the risk is systemic because of the wide range of banks and institutions on the other end of all those derivatives.

   2. “The question remains, is the risk systemic”

      (laugh) the system itself is the risk. not to the owners – lots of laws and practices protecting them – but to the rest of us. that’s the whole point of the system.

2. On the article about people moving out of the Northeast, is that some of them are moving into NC where I live. What is so bad about that is, they are bringing their liberal ideals with them and changing our state from red to blue and our state is becoming like the place they left from.

   1. That is what the communist democrats from California did to Nevada…

   2. “they are bringing their liberal ideals with them and changing our state from red to blue”

      stop migrants, build the wall.

3. Randy;

   This is happening country wide where folks moving from the over populated liberal states escaping what they have helped to develop and taking just what they’re escaping and bringing their liberal politics with them.

   We saw this in my old neighborhood in the Eastern Sierra where I located in 1974 and it is visible in our new location in the Redoubt where we relocated to in 2015. We came with strong conservative and christian values and found the same.

   VOTE and have your friends and locals vote in every election.

4. I think my original comments were eaten by my computer. All the major indices are 3-5% away from their 65 day moving average. Remember we can have 300 to 500 point down days nowadays.

   There is no harm in lightening up. The market looks forward and begins its correction before all the bad news is out. The headline on MarketWatch today reads “New-home-sales plunge to a near-two-year low as housing picture deteriorates.”

   Put in stop loss orders if you think they will help.

5. Am having problems with my computer and can’t get comments up. One last try.

   The markets are looking very weak and are only 3% away from their 65 day moving averages. There is no harm in lightening up. We don’t have to wait till 2019 for a serious down market. It’s unfolding now.

   Put in stop loss orders if you think they will help.

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