The Best Trades Ever – Wall Street Underground

By Nick Guarino | April 12, 2010

I’ve explained all this to you in the past. But bubbles are always surrounded by blizzards of b.s. spin. And contrarian trades, by their nature, are bound to try your patience. So sometimes it’s good for us to review things.

But let’s not get carried away here. 95% of the time, markets are boring. That 5% is when sheer terror strikes. It can be a real titty twister.

You are right. I have been quiet lately. That does not mean I’ve been sleeping. In fact I have two red-hot stories for you. You know, the ones I tell you about first — and then 6 to 12 months later, when the information is worthless, Wall Street finally clues you in.

My job is to lead this hunting party. To see that you get there ahead of time. Don’t let Wall Street turn you into a buzzard, who gets there after the meat is long gone. Their way, all you get is the bones to pick.

The last thing you need from me is a stream of meaningless bullshit. That’s Wall Street and the teleprompter analysts’ job.

I’m here to tell you that I believe this latest round of bubbles will blow up in their sleazy faces. Probably in the next 3, 6 or 9 months. Then these markets will begin their next nose dive to the ground.

There are several reasons why. First, China has created a horrendous bubble. Entire cities there, built to house millions of people, sit abandoned. Brand new mega-factories are idle: there is no demand for their products. China will be the biggest casualty of the next wipeout.

I am finishing a very detailed report about this. In it I explain to you why the Chinese “miracle” is really the Chinese nightmare. A very dangerous nightmare indeed. Look for it on the WSI Insiders website shortly (for subscribers only).

Second, major countries the world over are now withdrawing liquidity. The Fed publicly raised rates at the Discount Window. Meaning there is no more free money for U.S. banks: the Fed privately let it be known to our banker buddies that party is over. And when (not if) the banks go broke this time, they will be liquidated. “Too big to fail” will be “bye bye extinct dinosaur.”

Central banks around the world are going further than the Fed has. They haven’t just stopped adding liquidity. They are slowly draining liquidity.

The central banks know they have been had by the world’s biggest financial institutions. Bailout buck were suppose to have been used to wind down bad loans and liquidating money losing derivatives trades. Instead they have been used for, doubling down on their losing positions, and runaway bonuses for insiders. This has really pissed off those who have not been bought off.

They realize this latest round of bubble blowing was a severe mistake. It has not mitigated the problem. It has made it worse. They know the dead-broke institutions are going to have to be put down. Even the institutions that were supposedly “too-big-to-fail.” This time they will be liquidated, and let the chips fall where they may.

They are setting the stage for this. It’s occurring before your very eyes, whether or not CNN tells you about it.

Once again, I could be wrong. If I am, the trade recos I’ve given you could cost you your investment in them. But I also could be right. In that case, you could make a not-so-small fortune. Our risk/reward ratio here is the best I’ve seen.

I really believe in these trades. When I tell you they are the best I have ever seen, I really mean it.


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