IGNORE HIS WARNING AT YOUR OWN PERIL

Michael Burry’s investors hated him from 2005 through 2008 as his big short bet kept losing money. Someone with less courage of conviction would have folded and taken his losses. But he knew he was right. Everyone else was wrong. It was a bubble and it did burst. Excessive debt always causes the bubbles to pop. This time will be no different. You’ve been warned.

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21 Comments
flash
flash
February 21, 2021 8:57 am

Curtis B Dall was not only FDR’s son-in-law and military officer , but was a stock broker on Wall Street trading on October 24, 1929 and thus knows from whence he speaks. The same enemies of the free market and all things good whom we pay to print our money, then turn around and charge us interest on own credit, also have the power to bring the entire economic edifice crashing down on our heads whenever they want. We are not a nation of laws. We are nation ran by very greedy and evil men who will destroy our families, communities and entire nation if it portends to boost their bottom line. Until the money and banking system is reformed and the evil systematically purged, the USA will never have again have a stable economy or maybe even a future.

“Two elements were quite noticeable in the Depression. One was the hopeful constructive forces, the other
representing the forces of destruction-destruction for profit, may I say.

After confidence was duly shaken, on October 24, 1929, the destruction had to be made deeper, so that the
insiders could ultimately reap a substantial harvest before the signal was given for the beginning of Operation
“reacquisition”.

Of course, it would be most important for us to learn who called the “play” of October 24, 1929. Probably
the actual date was accidental, though the month was evidently selected for the sudden withdrawal of the
normal supply of credit. My guess is that “the signal” came from abroad. Obviously, much informed selling
and short-selling of Stocks came before the actual Crash itself, as well as after it, on rallies. The feeling
around the Street, in succeeding months, was that there were, in particular, three large short-sellers of stock,
allegedly, Tom Bragg, Ben Smith, and Joe Kennedy.

Tom Bragg was just a name to me. I knew Ben Smith and saw him most every business day on the Floor.
Joe Kennedy, hailing from Boston, was a man whom I later met briefly at a Democratic gathering.
Reportedly, he was politically important active in the Boston area, and described by some as a
smooth-appearing, but very “rough” politician. I gathered that he had slightly annoyed Louis Howe and FDR
by being fairly slow to come into their personal political picture. But, he did contribute generously, Louis
said to me in due course. Perhaps that delay was for a good reason. Ponder this:

If the all-powerful European- American money-power group decided that the time was right for them to tear
down the price structure of Stocks hither and yon, for a real worthwhile profit,

a real “shearing”, as it were, and to eliminate President Herbert Hoover in so doing, they would not dare to
pick a Rothschild, a Sasoon, a Warburg, a Sieff, a Morgan, a Monteflore, a Schiff, or a Whitney to wield “the
clippers.” That not so delicate task, on the down side, must be handled by others, by a front detached, but
nevertheless quite reliable. Therefore, what better front could be provided for their extensive stock operations
on the short side than whistle up some “acceptable”, aggressive Irishmen to be aided by others in leading the
shearing of the public?

Be that as it may, the Operation was carried out with ruthless finesse and vigor. The destruction was
enormous ! ”

Franklin Delano Roosevelt FDR My Exploited Father In Law ( 1970)”
https://archive.org/details/DallCurtisB.FranklinDelanoRooseveltFDRMyExploitedFatherInLaw1970

” In short, according to Friedman and Schwartz, because of institutional changes and misguided doctrines, the banking panics of the Great Contraction were much more severe and widespread than would have normally occurred during a downturn. …

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again.

Best wishes for your next ninety years.” Ben Bernanke speaking at Milton Friedman’s 90th birthday party.

flash
flash
February 21, 2021 8:59 am

Billions for Somalia, while US infrastructure crumbles. Makes perfect sense.

Somalia Is Headed Towards Another Tragic Collapse Despite Billions In US Funding
https://www.zerohedge.com/markets/somalia-headed-towards-another-tragic-collapse-despite-billions-us-funding

Stephanie Shepard
Stephanie Shepard
February 21, 2021 9:23 am

When the DTCC did a margin call on Robinhood in the middle of the GME rally I knew we’re on the verge of the bubble bursting. I’ve watched the short ladder attacks bring down the stock 80% in the past 3 weeks and billionaires have been whining on CNBC about how this is an attack on the rich.

I'm the Man on the Silver Mountain
I'm the Man on the Silver Mountain
  Stephanie Shepard
February 21, 2021 11:17 am

The Robin Hood CEO proved himself to be nothing more than a willing pawn of hedge fund managers. His outfit wasn’t the only online trading platform involved with “pay for play” investor data as many major brokerages were in on the HFT front-running on market trades for Citadel. This means it’s an industry-wide soaking of investors of every age and income level.
I want to see the hedge fund vampires bleed, even if it takes down the whole damned system – and that’s probably what it will do.

Citadel Is Paying for Order Flow from Nine OnLine Brokerage Firms – Not Just Robinhood

Stephanie Shepard
Stephanie Shepard
  I'm the Man on the Silver Mountain
February 21, 2021 11:55 am

I haven’t passed judgement on Robinhood yet. It looks really, really, really bad from the outside. But they also could be stuck between a rock and a hard place. They’re still the little guy and they’ve only existed for 8 years. They could’ve easily been run out of business. They may have made a compromise to stay afloat. You have to realize the free commission trade that’s fueling this retail investor movement is because of Robinhood’s business models. Other brokers had to switch to free commission trades because of Robinhood. Get rid of Robinhood and they go back to charging commission which shuts down the barrier of entry to these new retail investors.

Iska Waran
Iska Waran
  Stephanie Shepard
February 21, 2021 1:30 pm

I think “commission free” just means they make their money front-running their own customers. Their customers pay – they just pay in bad execution. If you buy and hold, it’s not a huge deal if you paid $6.25 for a stock that should have cost you $6.00, but if you’re trading, it matters. Of course, 95% of people shouldn’t be “trading” anyway – the tax complications alone (matching short term capital gains against short term losses) are too much for most people, and – even worse – detract them from doing better in their real job (and their real life). That said, the media spin in places like NPR, arguing against “unregulated” trading, while true, was timed solely to deflect from the fact that the trading rules were being changed in real time by TPTB in order to save the hedge fund big boys from getting royally fucked in a short squeeze by uppity punks using Robinhood.

Stephanie Shepard
Stephanie Shepard
  Iska Waran
February 21, 2021 1:35 pm

It’s a given that it’s not literally free and I agree most people shouldn’t be trading. However, it does lower the barrier of entry and you can claim your losses on your taxes up to $3,000 dollars. I think Robinhood is being turned into the scapegoat to blame “speculators” and to demand to regulations to keep regular people out of the market.

Iska Waran
Iska Waran
  Stephanie Shepard
February 21, 2021 1:43 pm

Yup. Good points.

I'm the Man on the Silver Mountain
I'm the Man on the Silver Mountain
February 21, 2021 11:07 am

I’m watching the yield on the 10 Year. The Fed is between a rock and a hard place as government spending rises and the public debt increases. With more dollars being printed it makes sense that London exchange PM spot prices would increase, but this doesn’t seem to be the case due to COMEX manipulation. If Robin Hood/Gamestop/AMC action was any indication of how the rigged market is “working” all it would take is one or two major bullion banks being forced to cover their metal shorts and bail out the idiot over-leveraged hedgies.
Scott Minerd of Guggenheim stated at Davos that silver was a good prospect. When the liquidity comes out of an inflated market bubble it will create a big opportunity for commodities. If the Little Guy has some control over their investment funds it would be a good idea to diversify or even cash out a 401k to grab what PMs they can find before the big downdraft hits in order to have some alternative hard money.

Stephanie Shepard
Stephanie Shepard
  I'm the Man on the Silver Mountain
February 21, 2021 11:51 am

I also noticed the MSM pushing silver as the next big short and attributing it to WSB (they were never bullish on silver). What are your thoughts on BTC “suddenly” hitting $1 Trillion market cap? Seems pretty suspect to me. Another place to stuff the inflation?

Ghost
Ghost
February 21, 2021 12:22 pm

But, I got a message to expect my $1400 check anytime!

Stephanie Shepard
Stephanie Shepard
  Ghost
February 21, 2021 12:33 pm

Promises of magic beans.

Ghost
Ghost
  Stephanie Shepard
February 21, 2021 12:36 pm

AND magic beans!

Mygirl....maybe
Mygirl....maybe
  Ghost
February 21, 2021 1:45 pm

comment image

Stephanie Shepard
Stephanie Shepard
  Mygirl....maybe
February 21, 2021 1:51 pm

Magic lattes!

Stephanie Shepard
Stephanie Shepard
  Administrator
February 21, 2021 5:53 pm

GME still waiting for their jackpot:

Mygirl....maybe
Mygirl....maybe
  Administrator
February 21, 2021 8:08 pm

Hence the Cassandra nom de guerre. I’m reading a PDF of When Money Dies about the Weimar inflation and financial collapse. There are eerie parallels.
http://thirdparadigm.org/doc/45060880-When-Money-Dies.pdf

Iska Waran
Iska Waran
February 21, 2021 6:27 pm
Long Time Lurker
Long Time Lurker
February 21, 2021 6:38 pm

Sovereign debt defaults suggest otherwise. short term correction then to the moon as the rotation from bonds moves to stonks…
https://www.ask-socrates.com/Blog/GetImage/602bd9637bc98d123c168e5b