Here we go with the infighting folks... [KBE]

One thing I have clearly expect to see in the end game was massive infighting within the establishment.  When the Ponzi was young there was benefit for all the organized crime syndicate players in government and banking.  But, as predicted well in advance in these pages, the diminishing real returns on new credit pushed into the money supply would cause the big dogs to start fighting for the declining scraps. 

Today's evidence comes in the form of a massive lawsuit brought by the retirement Ponzi operators against the treasury bond operators.  It's obvious what is going on here: pension systems are massively underfunded and have ridiculous long term, "kan't miss" growth expectations of 8%.  8%!!!!  That' like the growth of China!  As ridiculous as this sounds, this is what the pension funds told their patrons would happen and they used these blown out numbers to back their promises of a fat retirement for everyone who put their money into the Ponzi scam.

Said differently, the pensions are seeing an exponential rise in people leaving the workforce and now wanting to get paid as they retire.  But, like Nixon in 1971, they don't have the money and they never will.  So the pension funds are trying to get in front of it by suing the evil banks and, by cracky, they are going to win.  You know why?  Because boomers are voters and bankers have the ability to pay.  Simple as that.  Banks are soon going to come under incredible pressure and they will be fending off attacks from every direction.  Not because they legally owe anyone anything but rather because politicians will tilt the scales against them so that the politicians don't feel the wrath of the pissed off voters.  The fines and judgements that have been brought against the banks so far have been little more than pesky annoyances and in fact are just part of the cost of doing business in an organized crime cartel.

This corrupt system has fleeced the people and the people literally have nothing left to take.  So now it is going to eat its own children in a survival of the fittest which really means survival of the most ruthless.  Coming soon to a banking industry near you!

Of course, that is the story.  Stories are fun.  They make good conversations and talking heads on TV can jabber endlessly about shit they have no understanding of and everyone will look up to them.  But the chart is what is important folks and this one is showing 5 rail bumps complete or nearly so. 


















Zooming in on just 5 of C we can see that the owl is now looking down upon the bankers ominously.  Long time readers know that this is the name I give to the declining double top that generally comes at the end of a wedge.

Yes this could go up to a slightly higher high, maybe $38 tops but that is not my top count.  I think this bitch is done.  A very nice play right here could be 2017 options on a few of the weaker banks.  KBE has options but nothing out to 2017 at present. 

Remember what the FXI chart looked like?  Remember when I called darned near the exact top on it before it began to collapse?  Remember how quickly it collapsed once it began?

I'm calling a top on KBE right here.  You can also play the short side of banks with FAZ which is currently $10.38.  Buy the dip on FAZ...  When the banks collapse FAZ will skyrocket.