#TBT How I predicted this stock market rally back in January.

Back in January RBS came out with a call that I said, would end up to be "the worst call of 2016."

I was completely correct. And I stayed bullish throughout, even during some very scary downturns in the market when a lot of "big shots" were selling.

It was all about the flows.

The flows suck right now.

Tom O'Leary — RBS shows left must think for itself

Royal Bank of Scotland (RBS) is a publicly-owned bank. The overwhelming majority of its shares are in state hands, 73% of the equity. Yet it was the only major bank to fail outright the recent ‘stress test’ of its balance sheet conducted by the Bank of England. The bank is a basket-case. It is costing all of us money, and yet it could be a key contributor to economic recovery.

For many years the left has called for the nationalisation of the banks. This happened as a result of the financial crisis. But with very few exceptions the left had very little to say about what the public sector could do with its newly-acquired and deeply damaged assets. That was an error. Now that the left leads the Labour party and could be in position to lead the next government, it should use every lever at its disposal to produce an investment-led recovery. RBS should be seen as one of those levers.…

Public banking is not itself the answer. Management is required, and management is the weak spot of the left historically.

Socialist Economic Bulletin

RBS shows left must think for itself
Tom O'Leary

Who made this call? I did!

Back in January when the market was selling off I said that it would end up to t be a major bottom for the year. In early February when the interruption of IRS tax refunds was rectified, I issued a "Buy, Buy, Buy" recommendation and the market literally took off the day I said that.

No one else out there made these calls. In fact there were some terrible calls, like the RBS "catastrophic selloff" call that I said would go down as the worst call by by any forecaster ever made (at least this year).

How did I do this? Do I have a crystal ball? Well, yes and no. I have been looking at flows. I have been talking about flows. Without question this has given me insight into the markets that have been far more prescient than those looking at anything else, including and especially, deficits.

This blog has been more accurate than any other source of market or economic information out there. It's something to think about. We're growing and I am pleased. We have a lot of really intelligent, thoughtful, followers and contributors and commenters, but why we don't have a million readers a month is beyond me.

I guess you don't find diamonds lying around in the street. That's what makes them valuable.

We crushed it here at MNE! Sorry, no one even came close.

First I want to address a post I put up here the day of the conclusion of the Fed meeting when I said the stock rally (that day) wouldn't last and that we'd stall.

Well, that didn't happen, obviously.

However, that shouldn't diminish the fact that I said here, here, here, here and here (and probably a lot more places, but I am too lazy to look) where I said you gotta buy stocks and I gave you the reason: flows.

Two things: the flows are back and market sentiment is now shifting to very bullish.

The market is in a sweet spot now with sentiment aligned with direction (and fundamentals). It's going a lot higher and the only chance you'll have for a correction will be when the Fed raises rates. And it will. When that happens there will be some sort of bearish knee-jerk reaction and you'll have a chance to buy, however, by that time the stock market could be significantly higher.

By the way, remember all those people who were panicking and saying "sell" and there would be a catastrophe? Remember the RBS call? They were all completely and utterly wrong.

The "low hanging" fruit is probably gone. Maybe not. Depends on your definition of low hanging. I like really low hanging, like when people are selling like crazy. That's when I buy because it's like the idiots are just giving you their money. Take David Einhorn's money, remember?

There could be a "low hanging fruit" trade right now and that's shorting Treasuries. Even the idiots now think the Fed will never be able to raise. (After years of telling us how rates were going to skyrocket.) Short Treasuries. NO ONE is talking about that except, you guessed it, right here on MNE. Like, we always scoop everyone.

Which brings me to the economy. If you are thinking recession because the deficit is too small, forget it. No chance. The flows are big and this stock market rally, which will continue, will boost confidence and spending.

The people with the forecasts based on deficits for the last three years should just man up and throw in the towel.

Once again we got it all right here by looking at flows. It's all about flows or, mostly about flows anyway.

Oh yeah, how about the "oil bottom" call that I made back in January? Maybe a little early, but the market is 30% higher now. Not bad.

And what about the dollar going down? And gold rallying? Franco with metals prices bottoming, too. Jeez, I almost forgot those.

I swear, this site should have a million visitors a month. It's crazy that we don't.

Like I said, I must suck at marketing.

RBS will go down as having made the worst "call" in 2016

Forget the stupidity of the call, this hyper-frightening "recommendation" by Royal Bank of Scotland to SELL EVERYTHING before the deflationary crash, should be subject to malpractice lawsuits if it doesn't happen. (Even if it does.)

This completely ignores any perspective of markets and investing and absolutely points to the uselessness and idiocy of Wall Street and the brokerage industry. What a useless bunch of idiots.

And the guy recommends bonds even as the Fed has just begun to raise rates for the first time in nine years. They were probably saying go short Treasuries when the Fed was conducting QE.

Investors face a “cataclysmic year” where stock markets could fall by up to 20% and oil could slump to $16 (£11) a barrel, economists at the Royal Bank of Scotland have warned.

In a note to its clients the bank said: “Sell everything except high quality bonds. This is about return of capital, not return on capital. In a crowded hall, exit doors are small.” It said the current situation was reminiscent of 2008, when the collapse of the Lehman Brothers investment bank led to the global financial crisis. This time China could be the crisis point. Read more.

China "crisis point." Wow.

People, stay away from Wall Street. Stay away. Stick here, you get much better info. We may not get everything right, but we get most of it.

Remember, I said that January will be a major bottom for the year in the stock market.

Vladimir Platov — Billions of Dollars Laundered Through United Kingdom Banks

The UK National Crime Agency recently stated that “hundreds of billions of US dollars” are laundered through banks in the United Kingdom every year. London holds first place among world capitals with regard to the volume of drug trade and money laundering. Describing the global international drug trade network, Roberto Saviano, an Italian investigative journalist and author of Gomorrah, a book on the Neapolitan mafia, said a few days ago of the international drug trade that “Mexico is its heart and London is its head”. He also reminded readers of the British bank HSBC’s £1.2 billion fine for money laundering for a Mexican drug cartel in 2012.…

First appeared: http://journal-neo.org/2015/07/13/billions-of-dollars-laundered-through-united-kingdom-banks/

New Eastern Outlook
Billions of Dollars Laundered Through United Kingdom Banks

Vladimir Platov