Bruce Krasting

Report from Europe for Friday, Sept. 4

There are a number of videos out there of angry people. In a way it is humor but it is not. There is nothing funny about it. There are many people out there that are as mad as this guy. They may not be doing Utube videos, but they are just as hot under the collar.

My guess is that something else is going to happen. Not sure what. My guess is that shortages of certain things is going to take us over the top. No sugar, no gas, no health care, no police, rising crime another recession. Something is going to give. We just have too many wobbly legs for us to miss the next bullet.

When 'that' happens we will have real anger and it just might spill over to the street.

The net result will be a wave of debt repudiation. It will become an avalanche of "no pays". Hang on, we are just starting the anger phase of this in America.

Stocks with the Highest Short Interest

This is nice data but there is something missing. What is the borrow cost of being short? Just because there is a big short interest does not mean the stock is going down (or up). There is no public info on the borrow cost. It is a very important part of the equation when looking at this stuff. For example the borrow cost of Sears was 36% per annum recently. You do not want to short that one unless your time frame is very short. If you are looking for a short name check with your broker as to the cost of borrowing. If it is a big number then caveat emptor.