Prepare to Reload Your Shorts- Just Not Yet.

Here is a thought. I am fuming over what happened on Friday. The deceit and manipulation continues. CNBC once again was the mechanism of this deceit. In an age where fair and objective journalism has been replaced with sensationalism and yellow journalism, it is not then surprising to see CNBC, the world's most watched financial cable TV network, take center stage once again. Instead of me running around with my head cut off crying "where are the cops?", I choose to formulate a plan to fatten my account balance.

In this schizzophrenic market, where good news is good news and bad news is even better news, it stands to reason that the current pump will continue in the short term. I cannot tell you that even astute technical analysis will help in this regard as this market trades on the side of irrationality and rumors (unsubstantiated at that). Thus even with the week full of economic data releases including heavy weights such as the PPI, GDP, consumer spending, etc... you can pretty much count on the fact that the market in the current iteration does not function on the side of efficient markets theory nor even on rationality.

The market is a consortium of mass psychology speaking as one voice. No matter how crazy that may seem, the market is pinning its hope on the following:
1. Election year rarely has a down year.
2. Bernanke will save us with more rate cuts.
3. Government intervention and bailouts, even in the form of nationalization such as Northern Rock of the UK fame, is a good thing.
4. The problems inherent with the subprime mess will magically go away because the banks and the governments are working on it.
5. We are near the bottom and the money on the sidelines will rush in to save the market.

Despite these reasons, the market continues to fall deeper into the abyss and with each passing day, the market continues its inevitable march towards the point of no return. While the banks continue to lie and deceive with their off balance tactics, and despite the fact that last quarter's earnings release related write downs were kitchen sink (where they expose everything that they have on balance sheet), I suspect that majority if not all of the banks will play "oops, sorry, I forgot to write down these."

Don't believe me? How is it that Citibank (C) (shittibank?) all of a sudden has another hedge fund that is going under for $10 billion dollars that the Citibank now has to take onto the balance sheet? Could it be that this was engineered by Citibank? For that matter, how bankrupt is Citibank anyways? Where would they borrow the next "guido" loan this time? From the Taliban? al Quaida?