Barney Frank says: Obama is a liar.

As expected, the rats are now turning on each other now that we have entered the collapse phase of the Great Debt Ponzi of the 21st century (as true history books will likely refer to it looking back).  Whereas the norm is for partisan players to say nothing when they know their team committed a foul, Barney "boy-lover" Frank (yes, he's a flamer) is out today saying that Obama lied to us about Obamacare.  He said, "Frankly, he should never have said as much as he did, that if you like your current healthcare plan, you can keep it....That wasn't true. And you shouldn't lie to people. And they just lied to people."

So, here we have Barney liberal democrat Frank calling Obama and his cronies liars.  He is not making any excuses for them, he is not beating around the bush with weasel words or explaining how we sort of misunderstood the true intentions.  He's not even saying that the lie was necessary to convince us to allow the law because we don't have the mental capacity to know what is good for us and what is not.  In other words, he's not claiming that the nanny state knows best.   He simply said that Obama and company are liars and that you shouldn't lie to people.  Period.  Not that I give two shits about lying Barney Frank but it does show that just what I said was going to happen is in fact happening right here, right now.

Barney didn't really want to say this folks.  I'm sure Obama is not happy about the defection.  But Barney is now telling us by his actions that democrats better put distance between themselves and Everything Obama because he has turned into a political pariah.  In other words, the dumb ass sheeple who voted for this fuck have woken up and they are pissed that "the one" is just another lying con man and, more to the point, Mark and Patsy think they are smart and thus their self respect is damaged by having to admit that they were conned.  As I wrote before this is what is really driving a lot of the anger.

A con game requires confidence in order to work.  Do you think all of this crap that is going down engenders confidence either at home or abroad?  I think not.  In fact, it's looking quite 3rd worldish to any truthful observer.  There is no way the markets can stay at these lofty levels now that the herd is voting no confidence in its leaders.  The dems are going to get slammed at the next polling point IMO and that brings uncertainty.  Credit leveraged markets HATE uncertainty.  That is an age old truism of stock market gambling.  Uncertainty means worse odds and if there is one thing a savvy gambler hates, it's odds that are moving against you.

Sometime next week wave 1 down will complete and then there will be a brief respite from the fear.  But after that, I expect the fear to double down.  Don't ask me what will cause it.  The talking heads will blame it on this default or that skirmish or whatever stupid thing is in front of their short sighted eyes that day.  A couple days ago, Argentina defaulted on its international debt.  Many believed that it would be a big deal but markets were already peaking according to the wave model before it happened.  Face it, Argentina is a serial defaulter and everyone should already know that.  These guys don't owe anyone enough money to bring down the global financial system.  If it came to that, the US government would slip a few billion here or there to stem the tide because let's face it, when you print it up out of thin air a couple billion is walking around money.

The truth is that the herd is simply ready to rumble.  Thus, no matter what happens, the herd will make a big deal of it when in the past when something 10x worse happens the markets barely shrugged.  When wave 1 down completes and wave 2 finishes its retracement I will mos def be all in on TVIX and on heavy margin.  There are times to go pedal to the metal in racing and wave 3 down will be like one of the straightaways at the Indy 500. 

I've been cautious and careful and yes, skittish thus far because I have not had confirmation that the trend has actually changed but the evidence is adding up by the boatload every day now.  After starting "top watch" last June, getting more serious into the end of 2014 and going into high awareness/day by day watch mode since the January pullback it is now time to get paid.  Wave 3 down should leave no doubt that the worm has turned.  We should get a bigger than 300 point down day, perhaps 500+ points.  You never know with 3rd waves, we could even get a threepeat of past one day cliff diving zingers.  For example, on Dec. 12, 1914, stocks experienced the worst one-day drop in stock market history -- 24.4% . Then on Oct. 19, 1987, the stock market lost 22.6%.  These big one day collapses are how the markets screw everyone who thought they were so light on their feet that they could wait until the last minute to exit the Ponzi.  When the collapse happens this time it can take a number of forms but I think until we see Dow 4500-5000 that we cannot even begin to consider that the pullback is done.  In fact it should go much lower according to EWI.  The level of the prior 4th wave is - get this - 400 on the DJIA.

Now before you get all crazy with thoughts of "that can't possibly happen", think about this.  Was 1985 really all that long ago??  How about  1993?  Really, are these dates ancient history?   I think not.  Yet look at the stock valuations of those periods below.  The DJIA was 1275 in 1985 and about 2500 1992-1993.  Now look at the volume spike where everyone got market mania.  Now notice how the chart went exponential despite collapsing volume.  If ever I saw a mania, this is one.  Manias end lower than where they started.  If you cannot learn from this then you are in for some real pain in the coming years because it is absolutely going to happen.  The boomers were the stock market generation and the boomers were herded into markets via honey pot scams like the 401k program.  Once people begin getting screwed out of the retirements that they foolishly think await them you will see how sleepy sheeple turn into angry water buffalo in an eye blink.