Shortly after I wrote this piece, I learned that the Fed had intervened in a major way, again:

(New York: AP: ...The Fed said Friday it would boost the amount of emergency reserves it supplies to U.S. banks to $150 billion in May, from the $100 billion it supplied in April. The Fed took this action and several other moves to boost credit in coordination with the European Central Bank and the Swiss National Bank....The Fed has committed about $600 billion in loans to banks, an amount that represents perhaps half of all the distressed debt in the market, said Lehman Brothers credit strategist Amitabh Arora. This helps moderate the risk that a struggling bank might have to auction off its investments to avoid bankruptcy, he said.

Two-thirds of the Fed's balance sheet is now in worthless paper. Should the price of homes continue to fall and the foreclosure rate rise, it will not be long before the Fed's balance sheet is, for all practical purposes in terms of its use for monetary policy, worthless. In fact, after dropping the key lending rate among banks seven times in seven months from 5.25% to 2.0%, the Fed will soon have to admit that money is free -- coming on trees planted by American children who are not even born yet.

This travesty -- the continued intervention by the Fed to come to the rescue of the commercial and now investment banks -- is behind my observation in the capital market at times like this morning that prices have gone crazy. Without even knowing when or how, I see it in the current prices. Regretably, it is the bankers -- the biggest ones -- who know the when and the how, and they take advantage of it. Inside knowledge is power. The public should be saying that insider trading actions are illegal; what's good for the sheep ought to be good for the shepherd.

The capital market is no longer a free capital market where independent traders set prices in search of value. Prices today are manufactured by bankers in order to protect their interests. As the bankers' banker, the Fed, is itself almost bankrupt, the market prices we see today will continue only as long as the American people are kept dummied down to idiot level or until they wise up and collectively scream "no mas, no mas!"

I think it’s time that all of America, and owners of capital all over the world, wake up and smell kaimu’s wonderful orchids. His is a clarion call for independence. The People have been marched into slavery by bankers, and the irony is not lost on me that they seem to be turning to Barack Obama to lead them in changing the system… back to the intentions of those who penned the Constitution of the United States.

"We shall all be free. We shall all be free. We shall all be free some day."
--Martin Luther King

Have a great day. Onwards and upwards.