The Market Doesn't Like Uncertainty Nor Media Blackouts
July 25, 7:56 AMMonroe
Personal Finance Examiner Mary Holloway Love
At 3:30 am Saturday morning I was on my computer, and it suddenly erupted with all kinds of news and pleas for help from Laredo, TX. There supposedly was an armed incursion of Los Zetas (a particularly horrific gang of killer drug thugs) who had brazenly crossed into Sovereign United States Territory and taken over at least two ranches, For some strange reason, however, the homeowers were allowed to walk away unharmed. The traffic between the Well Regulated American Militia and the Laredo Sheriff's Department on Scene was second hand, as they talked to one of the Militia (we assumed it was he-though he never identified himself) and he relayed to information to several of us on line at Facebook. Finally, I called the Laredo non-emergency phone number (for fire, police, hazard, flood) and the phone rang 9 times and was answered by a very breathless young man. I identified myself, told him what we were hearing and that we had been told that there had been a media blackout pulled over the incident as per the White House. Could he please tell me if the Laredo ranches had been seized by the armed Mexican gangs and were still being held by them? His answer was, "I have no information to be released at this time." When pressed further, he gave me the phone number directly to the Sheriff's department. I thanked him and immediately dialed the Laredo Sheriff's Department. It was quickly answered by a Sgt, whose last name I did not catch. I told him what I knew and asked him if it were true and it there were a media blackout on the incidents occurring, as technically it was an Act of War. He replied in a terse voice that he had no information to release at this time. I asked him if that meant yes and yes, and he repeated the same tired line," I have no information to release at this time." I called him back about an hour later to tell him we had been advised that the Field Officer of the Laredo Sheriff's Office who had been outside in those surrounding one of the ranches had just called the Well Regulated American Militia and asked the Commander of it to please round up ALL certified militias and any Minutemen still in the area for assistance because it was getting grave and they needed help. This morning, Kimberly Dvorak was brave enough to run her column in the San Diego Examiner on the Laredo Ranch Takeovers with the armed incursion by the savage Mexican Drug Gang, Los Zetas, Her facts matched mine exactly, and she also had spoken to someone in the Laredo Sheriff's Office, though much later in the night, and he DID confirm for her that it WAS TRUE, though he would only do so anonymously. Another officer spoke off the record to confirm it as well. Kimberly's entire article, which goes into great detail and background can be read in the Examiner's San Diego edition.
The Markets do NOT like uncertainty and they like being duped even less. IF this entire Laredo invasion is true, it will not end well at all. The civilian population has been ordered to stay inside their homes and be prepared to defend themselves. There are Federal Law Enforcement Agencies on scene and have been since early yesterday, but with no orders to engage, supposedly. If Kimberly and I can get in under the radar and have almost identical facts from different people, how long before Reuters, or the BBC does the same thing? The BBC was SHUT DOWN yesterday except for sports scores and Chelsea's wedding. All other segments displayed the "Information not available" logos all over the page. That has NEVER happened to me before, and I get a good bit of my news from there and also the EU Times. When I checked the EU Times, they were having some trouble, and there was almost no news on the USA, mostly focused on the withdrawal of the financial rescue plan from Hungary and it's ramification.
I dare not venture even a guess as to what this type of uncertainty will do not just to our markets here at home, but to the global markets, The entire global markets system, which includes the USA, UK, EU and BRIC countries and several more, and all so interrelated that it's like a mobile above a baby's bed. Move one and the entire mobile goes into action. That is not a good thing for markets, Had the White House NOT ordered a media blackout on whatever IS happening in Laredo, the damage would not be nearly as uncertain nor frightening, as the USA economists, traders, and bankers would KNOW what we were facing and what we were fighting. The globalists overseas would have the same information, time to digest it and realize that the USA was in no danger of Sovereign collapse from a small rogue band of Mexican drug gang.
As it stands now, unless this situation is cleared before the markets open in Europe ahead of the US markets, much damage could be done that is UNNECESSARY. It is unnecessary because markets do not like not knowing what is happening and as a former trader, I can tell you it is maddening because so much of OTHER PEOPLE' s MONEY is riding on ---may as well be a magic carpet! So, when the market opens, it sets a direction one way or the other, and the economists, traders, and bankers can then still salvage something. The big question is: Do we dare go home tonight long or short any positions if we are day trading? Long term traders and dealers will not give it much thought, but those who are short term traders and even hedgers will have to answer that question with their broker.
I do look for the precious metals to profit from this fiasco. It is a safe place to run with one's money when there is this much uncertainty. The market may, in all fairness, just discard the entire affair as an unproven rumor of such magnitude that if it were true, there would be not way to keep it from being known and trade as if it were just another day, We can always hope and pray that this is the scenario that we are going to be facing at the opening bell.
http://www.examiner.com/x-55239-Monroe-Personal-Finance-Examiner~y2010m7d25-The-Market-Doesnt-Like-Uncertainty-Nor-Media-BlackoutsSo how did the markets do on Monday? I've been in a Vicodin haze since spraining my meniscus. I shall imagine no damage was done by this info.
sidebar: KoWT <g>
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