Business / Economic / Financial
[ This link to a somewhat more cumulative blog posts page will precede current days news since most all topics remain current in terms of impact and longer-term effect and can be searched by topical index term more easily. The same is provided since the blog site http://alpeiablog.blogspot.com has just been censored as to size by google which is typical for google as nsa / cia / gov’t shill as more are becoming aware of. The same is true for microsoft, another co. that’s seen their best days and relies on the government to maintain their monopoly. Up to now the better page http://www.scribd.com/alpeia is provided for ease of formatting and clarity thereby while the Washington Post page is the real deal but without formatting http://www.washingtonpost.com/wp-srv/community/mypost/index.html?plckPersonaPage=PersonaComments&plckUserId=alpeia&newspaperUserId=alpeia ]
The Economy Will Not Recover Until the Economic Criminals are Prosecuted, and There Are Real Investigations Into 9/11 and Other Government Failures Trust is essential for a stable economy; Trust is currently at an all-time low; Launching criminal prosecutions and real investigations is one of the main prerequisites for an economic recovery.
Markets Hit Vertical Drop: Dave's Daily ‘Markets followed-on Monday's malaise with heavy selling tied to worries from China that inflation was getting out of control. This caused commodity markets to implode. It was reported the Chinese government was dumping stockpiles of grains and meats on markets to drive prices lower. The commodity exchanges have increased precious metals margins twice in the last week which usually stems rallies and that continued this week. Furthermore, investors are having second thoughts about the Fed's QE policies as they become more concerned with China's moves in the opposite direction. It just shows how leadership is changing in the 21st century. Emerging Market stocks well-tied to commodity markets and with more volatility anyway fell harder than other markets. Earnings were coming in roughly as expected from powerhouses like HD and WMT. Meanwhile Industrial Production was weaker than expected and the PPI was up less than expected (and, yes the laughable "core" rate was down). Bonds rallied, reversing previous declines, in perhaps a brief flight to safety. It seems clear that our DeMark sequential weekly 9 counts well illustrated here many times have once again called an exit correctly with many such views on November 5th... ‘
QE2 Is Failing: Here's Evidence Loundsbury [ I quite agree with Loundsbury (and disagree on the point by Roche, infra; viz., there are many reasons for the market to fall including the preposterousness of the failed fed approaches). There are simply an unprecedented plethora of real reasons for the market to fall; ie., overvaluation, debasement of dollar, manipulation, fraud, a clueless fed / no-recession ben shalom bernanke et als who don’t have the slightest idea what they’re doing or what to do, a structural shift away from u.s., pervasive corruption in and defacto bankruptcy of the u.s., etc.. ] ‘ I know I have seen that QE2 is failing a number of times in the last 24 hours. In support of such statements I offer the following two graphs from the 5 Min. Forecast: [charts] Since QE2 hasn't really started yet, it might be more accurate to state that the prospect of QE2 is a failure. However, I would offer the following as the most accurate statement: There have been limited changes in stocks and bonds since the plan for QE2 has been discussed. Stocks are still more than 10% higher than they were at the end of August and bonds have not changed all that much in the past few months as well. The 10-year Treasury yield at 2.85% as this is written is below the rates seen in early August. There are many possible reasons for the sharp losses in stocks and bonds the past several days. The prospects for QE2 may have contributed but, in this analyst's opinion, that affect is very marginal compared to other factors that are current active. See yesterday's article for discussion of some of these market factors. There may be several reasons to question QE2, as Steve Hansen has discussed here and here and here. But screaming that the markets have entered a judgment about QE2 effects on securities markets before it has actually started is just plain poppycock based on the current evidence…’
Broad Stock Declines Add Up to Worst Day Since August 11 Midnight Trader 4:07 PM, Nov 16, 2010 --
* NYSE down 145 (-1.9%) to 7,472.48
* DJIA down 178.5 (-1.6%) to 11,024
* S&P 500 down 19.4 (-1.6%) to 1,178
* Nasdaq down 43.9 (-1.7%) to 2,470
GLOBAL SENTIMENT
* Hang Seng down 1.39%
* Nikkei down 0.31%
* FTSE down 2.38%
UPSIDE MOVERS
(+) WMT meets with Q3, sets guidance above Street view.
(+) DKS beats with results, guidance.
(+) HD turns higher after early decline; earnings beat, revenue meets.
(+) S upgraded.
(+) URBN continues evening gain that followed earnings.
(+) BRCD upgraded.
(+) IRE remains active amid Ireland's bailout debate.
DOWNSIDE MOVERS
(-) AAPL lower in step with broader market despite reports of Beatles iTunes deal.
(-) MELA tumbles as report says more study needed on skin device.
(-) PWRD dropping despite beat.
(-) ANF beats with earnings.
MARKET DIRECTION
U.S. stock averages dropped sharply, part of a widespread global equity skid Tuesday. The DJIA's 178-point drop is its worst day in some three months. Chinese stocks fell sharply on growth concerns, much of the rest of Asia slumped in reaction, and European averages ended deep in red, impacted by China and Ireland's debt woes.
China-growth jitters, combined with a rising dollar, clipped 3% off crude-oil futures prices Tuesday. Oil for December delivery retreated $2.53 to end at $82.34 a barrel, its lowest settlement since Oct. 29.
In China, new limits were announced on the ability of foreigners to buy residential or commercial property on the Chinese mainland--signaling the latest effort in that country to contain inflation, MarketWatch reports. In Europe, concern lingered over the meaning of potential bailouts for Ireland and Portugal.
In economic data stateside, U.S. producer prices rose a weaker-than-expected 0.4% in October. Core producer prices, which exclude volatile food and energy costs, fell 0.6%, not the gain of 0.1% expected. Meanwhile, industrial production remained the same in October, which was just under economists' expectations for a 0.3% gain. Capacity utilization was just under analysts' estimates of 74.9% at 74.8%.
In company news, AstraZeneca (AZN) is said to be looking for a buyer for its Astra Tech unit, which makes dental implants for about $2 billion, Bloomberg reported, citing "three people with knowledge of the matter." JPMorgan Chase (JPM) is helping to find a buyer, the report said.
Juniper Networks (JNPR) shares were lower after saying it has a deal to acquire privately held Trapeze Networks, adding to its wireless local area network capabilities, for $152 million. The acquisition is slated to close before the end of the year, subject to regulatory reviews and customary closing conditions.
In the latest earnings news:
--Wal-Mart Stores (WMT) was higher after the retailer's third quarter results beat its own estimates. Net profit reached $3.44 billion, or 95 cents a share, up from $3.14 billion, or 82 cents a share a year ago. The company had expected earnings of 87 cents to 91 cents a share. Revenue rose 2.6% to $101.95 billion.
--Dick's Sporting Goods (DKS) shares were up more than 12%, after the retailer reports Q3 EPS of $0.22, better than expectations of $0.17 per share. Sales were $1.079 bln, ahead of analyst estimates of $1.037 bln on Thomson Reuters.
--Nordstrom Inc (JWN) was down after the department store group reported falling same-store sales at its discount division in the third quarter, even though earnings beat expectations.
--Home Depot (HD) reports Q3 EPS of $0.51, ahead of the analyst consensus of $0.48 per share on Thomson Reuters. Sales were $16.6 billion, about in line with the Street view of $16.59 billion.
--Gulf Resources Inc (GFRE) was higher as the Chinese salt maker reported strong third quarter results.’
The 17 Things Worrying Investors Right Now
LLOYD'S WALL OF WORRY
WEEK OF NOVEMBER 15-19
WORRY COUNT: 17
CHINA: Kickin’ it purely “my way or the highway.” Especially treacherous on the rest of us as they are still building their highways.
THE PIIGS: Portugal, Ireland, Italy, Greece and Spain. FYI: News of their demise has been greatly…delayed.
CALIFORNIA AND THE OTHER 49 STATES: Automakers – done. Banks – done. Next on line at the bailout window: Muni Bonds
. “Please step up to the white line.”
QE II: In the popularity ratings still more dear than a root canal but not by much.
U.S. ECONOMY: This aging heavyweight looks to be making a comeback but don’t expect any championship belts.
UNEMPLOYMENT: The good news is we added 151,000 new jobs. The bad news is that's about 100,000 less than needed to keep us from sinking deeper into the jobless quicksand pit.
TAXES: Extend and Pretend-- it ain't just for loans anymore.
HEALTHCARE REFORM: “If I were a cheese what kind of cheese would I be? Umm…that would be Swiss.” Give it a year or so.
OBAMA ADMINISTRATION PART II: “Heavy lies the crown.”
XMAS 2010: Praying the Repo Man doesn’t tow away Santa’s sleigh until after he brings some good cheer. Stack of $20s for me, KK!
CURRENCIES: No longer a race to the bottom. More like a slow bumpy roll down into death valley.
HOUSING CRISIS: The reset button doesn’t seem to be working here. Might I suggest bulldozers and bonfires?
INFLATION/DEFLATION: The Fed’s inflation wish will come true. And then, like old luggage and my gut, it will be with us for a long time.
G20 MEETING: Granted I wasn’t expecting any Gold Medals for the U.S., I wasn’t expecting a disqualification smack down either.
TERRORISM: I knew there was a reason I always hated changing the toner cartridge.
COMMODITIES: Trying to wrestle them down with higher margin requirements. You mean some people actually pay for these things?
HFT: High Frequency Trading -- a festering boil on our stock market but nothing a penny transaction tax wouldn’t clear up. Dr. SEC, we’re waiting…?
Is it Time to Bail on Stocks and Commodities? , On Tuesday November 16, 2010, 2:18 pm EST ‘According to the most recent AAII poll, 57.6% of investors are bullish, so why am I bearish? Well, one reason is that pervasive bullishness has never really paid off. It didn't before the tech-crash (NYSEArca: XLK - News) in 2000, it didn't before the real estate crash in 2005, and didn't before the financial led crash (NYSEArca: XLF - News) in 2007. But - and that's a big but - I have to admit, something is different this time around. What is it?
Does the Market See a Mirage?
It's said that the market discounts the future and looks about six months ahead. In March 2009, stocks turned up. Based on the market's foresight, the economy should have started improving no later than the end of 2009.As 2010 is coming to a close, we notice that the economy is still stuck in a rut. Yes, some indicators have improved, but in terms of aggregate net progress, there's been little over the past year.Unlike the economy, stocks are soaring. From the March 2009 lows, the Dow Jones (DJI: ^DJI) has rallied as much as 77%, the S&P (SNP: ^GSPC) as much as 84% and the Nasdaq (Nasdaq: ^IXIC) as much as 105%. What was the 'futuristic vision' that propelled stocks and left the economy in the dust?
Unexpected Doesn't mean Impossible
The disconnect between stocks and the economy was very pronounced earlier this year. By April, many measures of sentiment had reached extremes not seen since the 2007, 2000 and even 1987 market tops. On April 16, the ETF Profit Strategy Newsletter stated: 'The message conveyed by the composite bullishness is unmistakably bearish.' Referring to the low put/call ratio, the Newsletter remarked: 'Once prices do fall and investors get afraid of incurring losses, the only option is to sell. Selling, results in more selling. This negative feedback loop usually results in rapidly falling prices.'A few weeks later, a 'Flash crash' visited Wall Street and injected a healthy dose of reality. Since the market was repelled by the 61.8% Fibonacci retracement level (a common retracement level for counter trend rallies), which coincided with extremely bullish sentiment, I assumed that the April high would not be broken. But it was. Why?
Liquidity Explained
The effect of supply and demand on prices is almost as well established as the law of gravity. While it's impossible to defy gravity, there's a crafty group of people who've found a way to tamper with the law of supply and demand. As it turns out, if you artificially inflate demand, prices will rise. The only organization big enough to pull off such a stunt is the Fed. And as unethical as it may seem, the Fed is using (as in rewarding) banks (NYSEArca: KBE - News) to do just that. The image below illustrates how quantitative easing (QE2) is designed to inflate asset prices. In short, via QE2 the Federal Reserve injects fresh money into banks. Since banks are not lending (there's just been another drop in consumer loans), they use the money to buy assets across the board (the November issue of the ETF Profit Strategy Newsletter includes a detailed analysis of this process and the long-term effect on asset prices). [Chart] Trading volume has been historically low, so the effect of extra liquidity ($105 billion over the next month) is magnified. Extra liquidity is the only explanation for the rare phenomenon of all asset classes rising at the same time. Do you remember the purpose of asset allocation and diversification? Asset classes boom and bust at various cycles ... Not lately. Most asset classes rise and fall in tandem. That is as unhealthy as it is historically unusual…Is the Fed's open money spigot enough reason to turn bullish? To me it isn't. In fact, I can't think of a single government law, rule or incentive that hasn't backfired in some way, at some time. QE2 is likely to be no different. Up until last week, U.S. stocks, international stocks (NYSEArca: VT - News), emerging market stocks (NYSEArca: EEM - News), commodities (NYSEArca: GSG - News), gold (NYSEArca: GLD - News) and silver (NYSEArca: SLV - News) were rising in sync. Now, the three outrageously contrarian predictions I shared via the ETF Profit Strategy Newsletter aren't that outrageous anymore. The three predictions were: 1) A rising dollar 2) A falling or correction stock market 3) A falling or correcting commodity market…What caused and triggered the post 2007 meltdown? Easy credit fueled unsustainable growth for decades and falling real estate prices caused the collapse. The sub-prime mortgage debacle extends far beyond the mortgage market (worth about $10 trillion). Since sub-prime mortgages have been repacked, tranched, and leveraged many times over, the total problem is much bigger. The only way to recover real estate losses is for real estate prices to return to their 2006 highs. This isn't happening. Since the home buying tax credit expired, home prices have fallen 0.2% year-over-year, while the number of homes sold plummeted more than 25% compared to last quarter. In addition to rising real estate prices, I'd need to see falling unemployment. Not just the media's favorite headline jobless number (currently 9.6%), but real unemployment. The main reason unemployment has at least been stable is due to a shrinking labor pool, otherwise even the rosy 9.6% would be above 10%. Since a recovery in real estate prices and a decline in unemployment would not completely deal with the issue of over valuation, I would only become a cautious bull.
How to Navigate this Market
No doubt, the Fed's outright manipulation of the market is more than just a tempest in a teapot.' Various indicators (in particular sentiment) seem to have been skewed by the massive inflow of indiscriminate dollars. Nevertheless, as the post April 2010 performance shows (including the 'Flash Crash'), the market has not become entirely immune to its own forces. The Fed is simply creating a bigger … bubble…’
Market Sell-Off: The Realization That QE Is Not Inflationary Roche [ Again, Mr. Roche is not quite correct as to why, but correct as to the fed’s failure and sell-off nevertheless, the reasons for which are still extant and further downside in the offing. ] ‘The QE trade is unwinding in dramatic fashion as the market slowly realizes that QE is not in any way inflationary. As I mentioned last week the smart money markets (fixed income and FX) were foreshadowing this as early as last week. The air pocket created by Ben Bernanke created an incredible trading opportunity for investors who weren’t blinded by confidence in the Federal Reserve. Just two weeks ago I said:
Would add (to shorts) into any move over 1200. Would LOVE to see 1220.
My position is that the market is misinterpreting the economic impact of QE in the long-term. My market position has always been that we could rally to these levels and that at these levels the market has become overly optimistic. If I am wrong I will lose some money and move on. It’s part of the business.
Like clockwork the market touched 1220, bounced and sold-off. The carnage across markets is broad. The only thing rallying is volatility, USD and US treasuries. In essence, the leveraged QE inflation trade is collapsing. You can thank Ben Bernanke for this. When you create distortions in the market you get volatility, uncertainty and ultimately a collapse in prices. Keeping market prices “higher than they otherwise would be” is not a recipe for economic growth. The most worrisome development is dissension inside the EMU. Austria is now threatening to withhold their contribution to the Greek bailout unless Greece can prove that they have fulfilled their requirements for aid:
The cost of insuring against default by Greece and the premium investors demand to hold the country’ bonds rather than lower-risk German Bunds jumped on Tuesday after Austria said Athens had not met aid commitments.
Five-year credit default swaps were 100 bps wider on the day at 950 bps, according to monitor Markit, while the 10-year yield spread between Greek and German government bonds was 15 bps wider at 923 bps.
Greece has not fulfilled commitments for its European Union-backed aid package, Austrian finance minister Josef Proell said on Tuesday, adding that Vienna had not yet submitted its contribution for December.
That’s not the only concern in the markets. Municipal bonds in the US continue to crash as a market that was priced for perfection now begins to price in some risk. Commodity markets are being crushed under the pressure of failing QE and tighter monetary policy in China. And ultimately U.S. stocks have finally succumbed to reality.
click to enlarge images
chart1…out (Figure 1)
chart2 (Figure 2)
chart3 (Figure 3) …‘
Lynn Reaser: Significant Profit-Taking Ahead
Ron Paul on Supervising the Fed You Tube | Rep. Ron Paul, (R-TX), on why he wants an audit of the Federal Reserve.
Weaker Dollar Seen as Unlikely to Cure Joblessness CNBC | The declining value of the dollar may not help the United States increase economic growth as much as it might have in the past.
NY Fed: New York state manufacturing plunges ‘unexpectedly’ AFP [ Yeah, right! That global hub of manufacturing activity, sinkhole new york … Unexpected … riiiiight! … There must have been a slowdown in fraudulent paper securities production! ] | New York state manufacturing unexpectedly plunged in November, the first contraction since July 2009 when the US economy exited recession.
Fed Easing Is Not Aimed at Weakening US Dollar: Dudley [ It doesn’t matter what they say … you can’t believe a word they say, like no-recession ben shalom bernanke … and, contrary to rhetoric, their intent was as preceding the last crash was to inflate earnings to froth the stock market (to create the all too familiar bubble for wall street frauds and insiders to commission with high frequency churn-and-earn trade programs and sell into ) by debasing the fiat Weimar dollar currency. ] New York Fed President Bill Dudley, in one of the first Fed interviews since the central bank’s policy came under attack at the G20 meetings in Seoul, said critics were “off base” to believe the aim of the policy is to weaken the U.S. dollar.
Weaker Dollar Seen as Unlikely to Cure Joblessness A weakening currency traditionally helps a country raise its exports and create more jobs for its workers. But the declining value of the dollar may not help the United States increase economic growth as much as it might have in the past.
Inflation rises unexpectedly to four-month high Bank of England Governor Mervyn King has had to dig out his headed notepaper once more to write a letter to the Chancellor explaining why UK inflation is too high.
Ireland told: Take EU bailout or trigger crisis An increasingly isolated Irish government was coming under mounting pressure tonight to seek an EU or International Monetary Fund bailout within 24 hours amid fears that contagion from its crippled banking sector might spread through the weaker eurozone countries.
The Early Evidence: QE Does More Harm Than Good Roche What exactly has QE “lite” and the expectations of QE2 done for markets and the economy so far? Two months following the initial rumors of of QE2 and well into QE “lite” we can make some early conclusions:
1) Equity markets have rallied, but this is of little significance. There is no evidence supporting an equity market “wealth effect” according to Robert Shiller (see here) and James Bianco (see here). Bianco’s research actually finds that the corresponding commodity price increases are more likely to be a net negative for consumers. And even if there is a “wealth effect” it only helps the rich because the middle class are only minority holders of equities on the whole. Of course, this isn’t a crisis of the wealthy so this looks like another case of failing trickle down economics at best. It’s also worth nothing that stock prices are nominal wealth so intentionally distorting prices from fundamentals is no recipe for sustained wealth. Keeping equity prices “higher than they otherwise would be” only diminishes the Fed’s credibility while also creating distortions in markets.
2) The 10 year bond yield is HIGHER since the Jackson Hole speech. The 30 year bond yield is up 50 bps since the Jackson Hole speech. Therefore, there is unlikely to be a sustained refinancing effect and no increased demand to take on more debt (not that this would work in a balance sheet recession anyhow, but Mr. Bernanke fails to acknowledge that this is a demand side problem). 74% of all consumer debt is mortgage based so it’s baffling that they are targeting the short end of the yield curve. Bernanke wants to stimulate borrowing, but his actions aren’t backing up his talk. He is focusing his efforts on the short end of the curve where rates are already very low – astoundingly confusing and misguided policy.
3) Many commodities have rallied in recent weeks which will do nothing but put pressure on input costs and ultimately make life more difficult for the US consumer (assuming these costs even get passed along, which is unlikely due to weak end demand). The consumer will either be hit with higher costs which they can’t afford to sustain or US corporations will continue to be hesitant to hire the millions that need jobs because they are too busy protecting their margins. On the one hand, this one of the few certainties we have regarding QE – it hurts corporate margins by causing a speculative ramp up in commodity prices. [chart]
4) QE IS NOT MONEY PRINTING [ It is here where Mr. Roche goes awry and is not quite correct. An analogous example (of enabling), though not perfect, would be if the fed was purchasing worthless driftwood at the base of the Mississippi or tumbleweeds in Texas reflected only by accounting book entries does not change the effect of ever more worthless Weimar dollar creation. ] so there is no reason to believe that it will cause anything more than expectations of future inflation. When the Fed implements a policy of QE they are merely purchasing an asset that already existed and swapping it with a deposit. There is some debate over the price changes before these transactions take place and whether the Fed is buying at higher prices, but this is offset by the fact that the Fed is removing a high yielding asset for a lower yielding asset. In this case, they are removing 1.2% paper (on average) in exchange for reserves that will earn just 0.25%. Remember, in QE1 the Fed removed over ~$47.5B in interest income from the private sector. So if anything, this has a marginal deflationary impact.
5) Borrowing didn’t pick-up after QE1 and there’s certainly no signs of a borrowing boom in recent data. Of course, with real estate in the midst of a double dip there’s unlikely to be a surge in borrowing in the coming quarters anyhow. As Robert Shiller detailed, the “wealth effect” of a housing boom can be quite substantial. With home prices now declining again we’re actually seeing the opposite of a “wealth effect”. In other words, the majority of Americans don’t feel better because Wall Street rallies each and every day. They feel worse because the asset they come home to every night, the asset that accounts for the majority of their net worth, has declined in value. [chart]
So just what exactly does QE do for the economy? Even the people who are advocates of it don’t seem to know and certainly can’t back up their claims with any positive evidence. Meanwhile the media and its misguided punditry are falling all over each other to spread falsehoods and inaccuracies regarding this policy as they shower Ben Bernanke with praise for trying something. I am not sure why Mr. Bernanke is worthy of any praise. He did not foresee this crisis. He responded too late when it was clear that a crisis was on our doorstep. And when he finally did respond he saved the banking system and left the American public out to dry. Thus far the evidence surrounding his latest tool looks poor at best and it in fact appears as though it could be causing more harm than good.
As for the markets, there has been some interesting action in recent weeks. It looks like the smart money markets (FX and fixed income) have slowly started coming around to the fact that QE won’t cause a dollar crash (because there is no interest rate effect and no “printed money”). Meanwhile, risk markets (equities and commodities) are on fire as “buy the dip” and “don’t fight the Fed” become the motto on every trading desk. The divergence here won’t last and given the early evidence it looks to me like a whole lot of investors are deep into the risk trade without the fundamentals to back it up. They’ve placed a bet on a Fed Chief who has failed at nearly every step of his tenure. A great deal of leveraged optimism has been priced into the market based on this “non-event“. I do not know if I have ever seen the market rally so much around an event that involved more misguided and inaccurate analysis.
Mr. Bernanke has created dangerous distortions in many markets over a policy that appears to have no real economic impact. He is playing games with the markets in an effort to give the appearance that he has not run out of policy tools. This not only calls into question the independence of the Federal Reserve, but has to very seriously make one wonder whether Mr. Bernanke is fit to run the world’s most important Central Bank? I have long maintained that he was never fit for this position and in my opinion the early evidence of QE only further confirms that belief.
How to Protect Yourself From the Crash of 2011 Lichtenfeld ‘There’s going to be a massive stock and bond market selloff in the first half of 2011.Not only that, the selloff could cause a worldwide financial disaster, global market crashes and the destruction of wealth that will make the popping of the dotcom and housing bubbles feel like a mild inconvenience.
Why?
Because, quite simply, America is playing a dangerous game of “chicken” with its national debt. And the ramifications are extraordinary. I’m going to explain the situation and give you three ways to protect yourself from this mess before it’s too late…
Debt Doomsday: Coming in May 2011
America’s debt ceiling currently stands at $14.3 trillion. This is the level that, by law, the government’s debt is not allowed to exceed.
Trouble is, the government’s present debt has swelled to $13.7 trillion.
This means that at the current rate, we’re on course to smash through that $14.3 trillion ceiling around May 2011 (although it might happen a month or two later, depending on what budget cuts are enacted in the next few months and how quickly they’re implemented).
So what will the government do about this? Same thing it’s done almost every year since 1962: Raise the debt ceiling so America can pay its bills.
Congress really has no choice in the matter either. If the ceiling isn’t raised, we’ve got a problem. A very big one.
A Fistful of Dominos
Without Congressional approval for additional debt, the U.S government cannot pay its bills – most notably, interest payments on treasury bonds, bills and notes.
If America defaults on those payments, or even misses them by just one day, the domino effect would be brutal…
* Domino #1: The country would lose its AAA credit rating and those bonds, bills and notes would no longer enjoy their status as the safest investments on the planet.
* Domino #2: In turn, a lower credit rating would mean that the United States would pay higher interest on its bonds in order to attract investors. Result?
* Domino #3: A tidal wave of selling through fixed income markets, driving interest rates higher still.
* Domino #4: Social Security would be hit hard, as its funds are invested in Treasuries. Suddenly, Social Security would have far less resources than just a day or two earlier.
* Domino #5: If money is pouring out of so-called “safe” investments, you can bet that in that kind of environment, the demand for riskier investments would be next to nil. Stocks and financial markets around the globe would plummet.
So why is this year’s Congressional raising of the debt limit different than every other?
To Raise or Not to Raise?
Simple: This year, some members of Congress have said they won’t vote to raise the debt ceiling. And they may be serious this time.
Earlier this year, 38 Republican Senators voted against raising the ceiling. However, they did so, knowing full well that they’d be outvoted and that the limit would be raised despite their “objections.” That way, they could return to their Congressional districts, claiming some semblance of fiscal responsibility.
Their vote didn’t matter so much back then… but with the Republicans having wrestled control of the House of Representatives last week, it sure does now.
It throws up an interesting dilemma. The Republicans – and particularly the Tea Party candidates who ran on a platform of cutting spending and the deficit – will have a very difficult choice to make. Either go back on their word and vote for an increase in the debt ceiling, or vote against it and run the risk of financial calamity.
It’s still early, but some Senators are already threatening to vote “no.”
* Senator-elect Rand Paul of Kentucky has indicated that he won’t vote in favor of raising the debt ceiling.
* South Carolina Senator Jim DeMint said he won’t vote to raise the limit unless it’s combined with some plan to balance the budget, return to 2008 spending levels and repeal President Obama’s healthcare plan.
* When asked if he’d vote against a debt ceiling increase, even if it leads to a government shutdown, Utah Senator-elect Mike Lee answered, “It’s an inconvenience. It would be frustrating to many people and it’s not a great thing, yet at the same time, it’s not something we can rule out.”
* And Republican National Committee Chairman Michael Steele told CNN, “We’re not going to compromise on raising more debt or the debt ceiling.”
This may be a dangerous political strategy…
History Repeating? Not Likely…
In 1995, the Republicans threatened President Clinton with shutting down the government if he didn’t agree to their budget. Clinton vowed that he’d never agree to it, even if his approval rating fell to 5%.
He won, too. The government did in fact shut down and the Republicans were the focal point of America’s anger. President Clinton’s approval numbers actually went up.
Flash forward to today. President Obama is likely aware of this history. And while he may be willing to negotiate on spending cuts, he will not repeal healthcare reform, which is the hallmark of his Presidency.
For Obama, though, the situation in 2011 will be much worse than it was for Clinton in 1995. I’m talking about a meltdown in the stock and bond markets.
Bill Busting… Washington Style
Bruce Bartlett, a former advisor to President Reagan and deputy assistant secretary for economic policy at the Treasury Department under President George H.W. Bush, recently stated, “You introduce even the tiniest little bit of doubt into the minds of ultra-conservative investors and that’s potentially disastrous. It hurts our ability to raise money without a risk premium.”
Representative John Boehner, the new Speaker of the House, appears to be more realistic than his colleagues in the Senate. He’s indicated that he’d vote for raising the debt ceiling as long as it accompanies spending reductions.
The bottom line, though, is this: The Senate likely doesn’t have the votes to defeat a bill to raise the debt ceiling, while the House does.
And in the end, it doesn’t matter. The bill doesn’t have to be defeated. A filibuster accomplishes the same thing. Don’t forget, this bill must be passed by the date we hit the ceiling, otherwise the government goes into default. It’s not something that can be put off until later.
So, in fact, a filibuster is even more powerful than a “no” vote. And the mere threat of a filibuster could spook investors badly enough to sell first and ask questions later.
You need to go about protecting yourself as soon as possible…
Protect Yourself From America’s Debt Showdown
There are a few investments that will likely do well in the chaotic environment I just described…
* Gold: The resilient yellow metal should soar as the U.S. dollar sinks and investors flee to safety. If you don’t want to own the metal itself, you can buy the SPDR Gold Shares Trust (NYSE: GLD) ETF, which serves as a close proxy to the price of gold bullion.
* Short Treasuries (Option 1): Consider the ProShares Short 20+ Year Treasury (NYSE: TBF), which aims for a 100% inverse correlation to the Barclays 20+ Year U.S. Treasury Bond Index.
* Short Treasuries (Option 2): If you’re a more aggressive investor, take a look at the ProShares UltraShort 20+ Year Treasury (NYSE: TBT). It seeks to obtain results that are double the inverse daily performance of the Barclays 20+ Year U.S. Treasury Bond Index. So if the index falls 10%, the ETF should gain about 20%...'
Contrarian Ideas Are Starting to Show 'Teeth' , On Wednesday November 10, 2010, 7:25 pm EST If you've lost money over the past 10 years, this statement may seem like a personal assault: 'Timing the market is easy and profitable.' That's the implied conclusion from a recent TrimTabs study. What's the recipe? A recent Wall Street Journal article drew this lesson from the study: 'Over the past decade, it was actually quite simple to time the market. All you had to do was buy when the public was selling and sell when the public was buying.' Naturally, going against the crowd is easier said than done. That's why it's often said that successful investing is simple, but it isn't easy. Good investment opportunities come along only so often. Now seems to be the time. A good opportunity offers more profit potential than risk of losses.
Do the Opposite 'Buy when the public was selling and sell when the public was buying,' was the Wall Street Journal's conclusion. So, what's the public doing right now? The public - this includes individual investors and Wall Street - is buying everything. Look around you, the S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), Nasdaq (Nasdaq: ^IXIC), small caps (NYSEArca: IWM - News), mid caps (NYSEArca: MDY - News), international stocks (NYSEArca: EFA - News), emerging markets (NYSEArca: EEM - News), bonds (NYSEArca: AGG - News), gold (NYSEArca: GLD - News), silver (NYSEArca: SLV - News), and many other commodities (NYSEArca: DBC - News) are up, up, up. Meanwhile, the U.S. dollar (NYSEArca: UUP - News) is down. According to Wall Street and the media, the investment universe is full of profit sweet spots. Stocks right now are a win-win scenario, at least so they say. Any bad news is viewed to bring about more quantitative easing and is, therefore, good news and good news is good news anyway. Gold is another sweet spot. There's no need to worry about inflation or deflation. Gold is sure to profit either way, or so they say. From a fundamental point of view, gold is as sound an investment today as real estate was a few years ago. Of course with gold, this time is different. Isn't it always? The U.S. dollar is doomed because more quantitative easing (more dollars in circulation) will reduce the value of the current dollars in the system. The government doesn't care if the dollar falls to oblivion, so why should you?
Engrained Opinions Actually, there's a good reason to watch what's going on with the dollar. All the assets mentioned above (stocks, bonds and commodities) are denominated in dollars. A cheap dollar means higher prices and vice versa. Over the past five months, the U.S. Dollar Index dropped as much as 15%. Interestingly, it's after a 15% slide that the greenback has become despised. Investors dislike the dollar as much today as they did in late 2009 when it was about to lose its reserve currency status. At that time, the ETF Profit Strategy Newsletter went out on a limb and predicted a major U.S. dollar rally. From November 2009 to June 2010, the dollar soared as much as 20%, a diabolical move for currencies. In June, when fears about Europe and a crumbling euro currency made the rounds (and optimism surrounding the dollar was plentiful), the newsletter called for a dollar correction.
Prediction #1 - The Dollar will Rally This correction has morphed into a decline pervasive enough to push dollar sentiment to an extreme that, historically, has foreshadowed significant turnarounds. The notion of a trend reversal is confirmed by technical indicators. The October 21 Technical Forecast (part of the ETF Profit Strategy Newsletter) stated: 'Last week's dollar action was encouraging as the U.S. Dollar Index finished with a green candle low on Friday and since pushed above the lower acceleration band. That's what bottoms are made of.' Since then, the U.S. Dollar Index has rallied above its middle acceleration band. (chart) As far as a candle formation goes, those are the initial stages of a trend reversal. Once again, a rising dollar is bad for stocks and commodities.
Prediction #2 - Commodities (Including Gold and Silver) Will Decline Not only is the dollar way oversold, the commodity rally is stretched to a point where a sharp and prolonged reversal could happen any moment. Net speculative positions in many commodities are at record highs, as is the percentage of bullish traders. We've seen time and again that extreme optimism is unhealthy for any market. Albeit not a short-term timing tool, it's a big red flag. Once underway, the selling pressure should affect nearly all commodities, including oil (NYSEArca: USO - News) and agricultural commodities (NYSEArca: DBA - News).
Prediction #3 - Nasdaq Should Lead Equity Decline Largely due to Apple's stellar performance, the Nasdaq has been outperforming the broad market. The Nasdaq's performance from here will be very telling.The Wall Street Journal just reported that: 'No hype: Tech is again a market star.' Let's see if the tech index can maintain it's star status. If it doesn't, watch out for a Nasdaq-led decline.
Third One 'Free' - QE2 Won't Work If you took a poll on Wall Street, 8 out of 10 Ivy League educated, Armani wearing, Mercedes driving Wall Street Banksters would probably tell you that QE2 will work.The media agrees. When September's jobless numbers went public, the figures were much worse than expected, but stocks surged. Why? Associated Press headline: 'Faith in Fed pushes Dow past 11,000.'When stocks slid on October 14, hope of QE2 kept things from getting worse. AP headline: 'Stocks dip; Likely Fed move keeps losses in check.'QE2 may end up working for Wall Street, but it seems not to have worked for the economy. If it did work, why would we need QE2?Obviously, the rumor of QE2 was enough to drive up stocks. Will the actual news deliver the steak or just the sizzle?
In POMO They Trust The fact is that the Federal Reserve's Permanent Open Market Operation (POMO) purchases of Treasuries have had a direct and delayed effect on the market's performance. Certain purchases translated into positive performance 89% of the time (a detailed performance analysis and schedule of future POMO purchases is available in the November issue of the).
Should You Fight the Fed? Will the Fed win the tug-of-war against sentiment, valuations, and technical analysis, all of which point towards a correction?If history is a guide, the market will win ... sooner or later. One way of navigating the current uncertainty is via support and resistance levels. A break through overhead resistance is likely to result in higher prices, while slicing through support may open the floodgates.
Who Will Any Form of Intermediate Term Wealth Effect Really Help? [ The so-called ‘wealth effect touted by no-recession helicopter ben‘ is just a continuation of the fraudulent wall street bailout / subsidization churn-and-earn scam / fraud. Bill Fleckenstein Has Some Thoughts On QE2: “These Idiots Think We Can Print Our Way To Prosperity” ( I disagree! I believe they are well aware of the folly of their fraudulent and ultimately disastrous approach but are, as in the last debacle, creating a fraudulent bubble for the wall street frauds and insiders to sell into, which they are indeed doing as we speak. (INSIDER SELLING IS AT RECORD HIGHS) (Another Nobel Economist Says We Have to Prosecute Fraud Or Else the Economy Won’t Recover As economists such as William Black and James Galbraith have repeatedly said, we cannot solve the economic crisis unless we throw the criminals who committed fraud in jail. ) ] Fed to pump $600B into the economy (Washington Post) [ Listen to this total, absolute b*** s*** … from no-recession-helicopter ben shalom or b.s. for short, bernanke, with green shoots wilting on the vine … to his recent ‘better to try and fail than to do nothing at all’ … Balderdash! … I hearken back to a distinction made by the brilliant Peter Drucker who in emphasizing the distinction between efficiency and effectiveness states that being effective means doing the right things, clearly not the case here … other than frothing that fraudulent wall street market with high-frequency programmed trades and debased dollars he can’t seem to print enough of, and for all but wall frauds churn and earn profits as they retain their fraudulent gains from the last debacle and this one, his policies are nothing short of disaster for this nation and the world. That money going into wall street pockets has to come from somewhere … guess. Remember, america’s defacto bankrupt and the consequences for those continuing frauds on wall street don’t justify the irretrievable costs! ] In addition to a question for Bloomberg TV anchor Betty Lui, who asked Bill to “admit” that “the markets were in a better mood yesterday after QE2,” which is simply this: “Betty? Betty? Betty? How about in summer 2008, 2007, were the markets in a good mood? Were the markets in a good mood then?” Quite right! The same pattern that preceded the last crash. Falling dollar, high volume programmed high frequency trades to the upside creating an even larger, gravity-defying bubble for the wall street frauds and insiders to sell into. They’re not too big or important to fail and jail! Prospective economic health depends on that reality! ]
John Hussman: Bubble, Crash, Bubble, Crash, Bubble... [ This really is the story and far worse than the bad scenario presented herefter by Hussman in light of the debased dollar and the inflated earnings and lower P / E ratios thereby, etc. ] Excerpt from the Hussman Funds' Weekly Market Comment (11/8/10):
‘We will continue this cycle until we catch on. The problem isn't only that the Fed is treating the symptoms instead of the disease. Rather, by irresponsibly promoting reckless speculation, misallocation of capital, moral hazard (careless lending without repercussions), and illusory "wealth effects," the Fed has become the disease ... It is difficult to interpret Bernanke's defense of QE2 as anything else but an attempt to replace the recent bubble with yet another - to drive already overvalued risky assets to further overvaluation in hopes that consumers will view the "wealth" as permanent. The problem here is that unlike housing, which consumers had viewed as immune from major price declines, investors have observed two separate stock market plunges of over 50% each, within the past decade alone. While investors have obviously demonstrated an aptitude for ignoring risk over short periods of time, it is a simple fact that raising the price of a risky asset comes at the sacrifice of lower long-term returns, except when there is a proportional increase in the long-term stream cash flows that can be expected from the security. As a result of Bernanke's actions, investors now own higher priced securities that can be expected to deliver commensurately lower long-term returns, leaving their lifetime "wealth" unaffected, but exposing them to enormous risk of price declines over the intermediate (2-5 year) horizon. This is not a basis on which consumers are likely to shift their spending patterns. What Bernanke doesn't seem to absorb is that stocks are nothing but a claim on a long-term stream of cash flows that investors expect to be delivered over time. Propping up the price of stocks changes the distribution of long-term investment returns, but it doesn't materially affect the cash flows. This reckless policy has done nothing but to promote further overvaluation of already overvalued assets. The current Shiller P/E above 22 has historically been associated with subsequent total returns in the S&P 500 of less than 5% annually, on average, over every investment horizon shorter than a decade ... We are betting on the wrong horse. When the Fed acts outside of the role of liquidity provision, it does more harm than good. Worse, we have somehow accepted a situation where the Fed's actions are increasingly independent of our democratically elected government. Bernanke's unsound leadership has placed the nation's economic stability on two pillars: inflated asset prices, and actions that - in Bernanke's own words - should be "correctly viewed as an end run around the authority of the legislature" (see below). The right horse is ourselves, and the ability of our elected representatives to create an economic environment that encourages productive investment, research, development, infrastructure, and education, while avoiding policies that promote speculation, discourage work, or defend reckless lenders from experiencing losses on bad investments.’
Insiders selling (into the bubble as preceded last crash), this is an especially great opportunity to sell / take profits! Suckers’ rallies to keep suckers suckered (easy for the wall street frauds to do with just a mouse click / push of the button – and, they know all those technical trade lines that are easy to program in this current phase of the scam/fraud with the debased dollar). Keep in mind, the totally mindless blather from the ‘cottage industries’ of and fraudulent wall street itself in talking up lower P/E multiples when the same is a direct result of the debasement of the dollar and the consequent manipulation / translation (not real, see Davis, infra) which preceded the financial crisis / last crash. Unemployment, trade, deficit, etc., numbers continue decidedly worse than expected along with other negative data (and in the ‘wrong direction’, that spin accorded ‘down but not as bad as before’ b*** s*** ) yet the market has rallied like no tomorrow with used home foreclosure / distressed sales, though abated owing to ‘foreclosuregate’, the other ‘heralded’ good news. Moreover, the dumbo lemmings of Europe have jumped on the fraudulent defacto bankrupt american crazy train propelled to the precipice also as if no tomorrow. This is about keeping the suckers sucked in with the help of a market-frothing pre-election debased dollar for favorable currency translation and paper (but not real when measured in, ie., gold, etc.) profits which preceded the last crisis, inflating a bubble as in the last crisis to facilitate the churn-and-earn, particularly with computerized (and high frequency) trades and which commissions they’ll get again on the way down. There is nothing to support these overbought stock prices, fundamentally or otherwise. These are desperate criminals ‘at work’. Even wall street shill, the senile Buffett is saying we’re still in a recession (depression) [ Davis: ‘… all profits are inflated by 10% (from falling, debased dollar) and that 10% is the E that gets divided from the P and gives us a much better price/multiple to hang our hats on and that gets investors to BUYBUYBUY …’ The bull market that never was / were beyond wall street b.s. when measured in gold ] This is a great opportunity to sell / take profits (these lower dollar, hyperinflationary currency manipulations / translations to froth paper stocks will end quite badly as in last crash)! This is a global depression. This is a secular bear market in a global depression. The past up moves were manipulated bull (s***) cycles (at best) in a secular bear market. This has been a typically manipulated bubble as has preceded the prior crashes with great regularity that the wall street frauds and insiders commission and sell into. This is a typical wall street ‘programmed computerized high-frequency churn and earn pass the hot potato scam / fraud as in prior crashes ( widely reported, high-frequency trading routinely accounts for more than 50% of daily U.S. equity trading volume and regularly approaches 70%. )’. This national decline, economic and otherwise, will not end until justice is served and the wall street frauds et als are criminally prosecuted, jailed, fined, and disgorgement imposed.The Stock Market's Long Decline Has Begun Smith ]
(11-16-10) Dow 11,023 -178 Nasdaq 2,469 -44 S&P 500 1,178 -19 [CLOSE- OIL $82.34 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.00 (reg. gas in LAND OF FRUITS AND NUTS $3.15 REG./ $3.29 MID-GRADE/ $3.39 PREM./ $3.79 DIESEL) / GOLD $1,332 (+24% for year 2009) / SILVER $25.23 (+47% for year 2009) PLATINUM $1,635 (+56% for year 2009) / DOLLAR= .74 EURO, 83 YEN, .62 POUND STERLING, ETC. (How low can you go - LOWER)/ 10 YR NOTE YIELD 2.65% …..… AP Business Highlights ...Yahoo Market Update... T. Rowe Price Weekly Recap – Stocks / Bonds / Currencies - Domestic / International This Is a Secular Bear Market and The End of Buy and Hold … and Hope MARKET MANIPULATION AND HOW THE LATEST BUBBLE-FRAUD PRE-COMING CRASH IS BEING ACCOMPLISHED 3-11-10 6 Theories On Why the Stock Market Has Rallied 3-9-10 [archived website file] Risks Lurk for ETF Investors The bull market that never was/were beyond wall street b.s. when measured in gold Property Values Projected to Fall 12% in 2010 Jan 31, 2010 The Week Ahead: Risk Is Off the Cliff; Unwind Has Begun Jan 31, 2010 01-13-10 Forecast for 2010 from Seeking Alpha Contributor THE COMING MARKET CRASH / CORRECTION 1-28-10 Maierhofer (01-15-10) 11 Clear Signs Economy Sinking Economic Black Hole 1-22-10: 20 Reasons Why The U.S. Economy Is Dying And Is Simply Not Going To Recover Current Economic / Fiscal Charts Trendsresearch.com forecast for 2009 1-7-10 Crash is coming! ‘WORST ECONOMIC COLLAPSE EVER’ Must Read Economic / Financial Data This Depression is just beginning The coming depression… thecomingdepression.net MUST READ: JEREMY GRANTHAM’S QUARTERLY UPDATE 25 January 2010 (850 on the S&P) by TPC The Next Wave of Collapse is Coming Sooner than you think Sliding Back Into the Great Depression ABSOLUTELY, ABSURDLY, RIDICULOUS! SELL / TAKE PROFITS WHILE YOU CAN SINCE MUCH, MUCH WORSE TO COME!
NATIONAL / WORLD
U.S. Justice System Doesn’t Actually Dispense Justice … It Just Serves the Powers-That-Be, Like the Other Branches of Government. Is anyone so foolish and naïve as to doubt this reality?
The horrible truth starts to dawn on Europe’s leaders The entire European Project is now at risk of disintegration, with strategic and economic consequences that are very hard to predict.
Greek deficit much bigger than estimate Greece’s goal of reducing its gargantuan debt received a fresh blow today when the EU statistics agency announced that the country’s 2009 budget deficit was much worse than first thought.
Euro under siege as now Portugal hits panic button The euro is facing an unprecedented crisis after another country indicated on Monday night that it was at a “high risk” of requiring an international bail-out.
Bloomberg Shills Carbon Tax to Fight Terrorism Kurt Nimmo | Is Bloomberg worried about terrorists in Canada?
Infowars’ TSA Abuse Story Number 1 Worldwide Aaron Dykes | Following a top headline on the Drudge Report, the shocking news story by Paul Joseph Watson & Alex Jones has gone completely viral, reaching #1 on Alexa.com’s “Hot Pages.”
TSA Now Putting Hands Down Fliers’ Pants Paul Joseph Watson & Alex Jones | Big Sis turns up the heat: New enhanced pat-down more invasive.
Ireland: Join the IMF-EU Borg Hive or Face the Abyss Kurt Nimmo | Ireland has yet to crawl to the IMF with hat in hand.
TSA Targets Tyner In Effort To Chill Nationwide Backlash Paul Joseph Watson | New CBS poll shows vast majority oppose groping measures.
Nato chief says there is no alternative to staying in Afghanistan Telegraph [ Oooooh! Sounds like a plan! ]| Anders Fogh Rasmussen said NATO would commit the alliance to train and support Afghan troops battling the Taliban in substantial numbers through to the 2014 deadline for local forces to take over security.
Britain’s top soldier: al-Qaeda cannot be beaten SINA.com | Violence across Afghanistan is at its worst since the Taliban were overthrown by US-backed Afghan forces nine years ago, with civilian and military casualties at record levels despite the presence of about 150,000 foreign troops.
Cash-hungry US war Ind stays armed as schools & clinics close Russia Today | Republicans were elected in mid-term elections on a promise to reduce the budget, yet they explicitly exempt the defense budget [ Which of course is totally preposterous … and self-destructive! ].
The Food Inflation Nightmare Is About To Hit 40% Of The World’s Population Overnight, the threat of further Chinese tightening multiplied as a result of food price inflation. A basket of 18 key vegetables saw their prices increase by 62.4%, year-over-year, in the first 10 days of November.
George W. Bush Confronted on 9/11 & war crimes in Florida We Are Change | George Bush Jr. comes to Florida to promote his new book , “Decision Points”,memoirs, we are change tampa confront him on 9/11,torture and him being a war criminal.
Dr. Kelly was murdered: British experts Press TV | Drugs experts leading an inquiry into the death of Britain’s former weapons inspector in Iraq, David Kelly, say his death was “murder” and not suicide.
Euro under siege as now Portugal hits panic button Montreal Gazette | The euro is facing an unprecedented crisis after another country indicated on Monday night that it was at a “high risk” of requiring an international bail-out.
Drudgereport: START ON STOP!
RANGEL GUILTY...
Old razzle dazzle doesn't save 20-term Dem...
Rioters attack UN peacekeepers in Haiti...
SHOCK POLL: ONLY 26% OF PUBLIC THINKS OBAMA WILL BE REELECTED...
Emanuel: I never believed in bipartisanship...
Woman becomes nation's 1st transgender trial judge... OAKLAND, Calif. – ‘A 49-year-old California patent lawyer has been elected as the nation's first openly transgender trial judge. Alameda County elections officials say Victoria Kolakowski beat prosecutor John Creighton 51 to 48 percent — a margin of nearly 10,000 votes — in the Nov. 2 election to fill the vacancy in California's Superior Court …’
Witnessing the birth of a black hole (Washington Post) [ Geeh! And here I thought this was a story about that sinkhole new york / wall street /nyc metropolitan area including jersey, ct, etc.. And here’s a good one … The New York Fed's Comic Book Explaining Monetary Policy [ Wow! This is at once both scary and tragic; and as well, a total joke. They are serious … criminals / jokesters / fraudsters! The sinkhole new york fed? … Where’s that missing $4 trillion, etc.? Here’s an archived website copy for your records. http://albertpeia.com/comic_monetary.pdf ] ]
Petraeus warns Afghans about Karzai's criticism of U.S. war strategy (Washington Post) [ Riiiiight! It would be so foolish of them to argue with or question such a nation-bankrupting / destroying failed strategy (by even his own prior, stated, unmet standards / criteria.) ]
Study: Million-dollar college presidents are on the rise (Washington Post) [ I think the more correct question must be, ‘what isn’t over-priced / overvalued in america? … Certainly executives who lay-off , ie., 10% of their workforce and bonus themselves hundreds of millions (ie., fiorina, whitman, etc.), or unprosecuted frauds on wall street with their continued frauds / scams and churn-and-earn high-frequency trading, etc., are over-priced / overvalued.. Then there’s the results, which though difficult to quantify, certainly must compare globally because indeed, to some extent, beyond the hype (ivy league vegetable gardens, etc.), some management authorites would say you’re but ‘paying the job’. ] Nationwide, 30 chief executives of private colleges earned more than $1 million in total pay and benefits in 2008, according to a report released Sunday.
Hopes of holiday hires hinge on spending (Washington Post) [ Come on! Does anybody at all realize how desperately preposterous it is to be talking up temporary holiday hires as some kind of a significant and potentially auspicious development, panacea, etc.? What it does mean is how great a failure no-recession ben shalom bernanke, et als have been and continue to be. They haven’t even got a clue!] Retail has been a haven for workers seeking flexible schedules, but that safety net has grown increasingly crowded since the recession.
E.U. considers bailout for Ireland (Washington Post) [ Sounds like a plan … Then there’s Greece's deficit revised to largest in E.U. , and, closer to home, California: America's Greece ‘There is no state in our union suffering a bigger fiscal fiasco than California, with its structural budget deficit, $500 billion unfunded pension liability, and double-digit unemployment rate…’ ]
The Economy Will Not Recover Until the Economic Criminals are Prosecuted, and There Are Real Investigations Into 9/11 and Other Government Failures Trust is essential for a stable economy; Trust is currently at an all-time low; Launching criminal prosecutions and real investigations is one of the main prerequisites for an economic recovery.
Guy Lerner's Bear Signal or Why Investors Should Be Cautious Now Loundsbury ‘ Guy Lerner offers a market timing service at The Technical Take. He has just put out a bear signal alert. Here are some of the things he is looking at:
· Insider selling has moved to an extreme.
· Rydex market timing funds are extremely bullish (contrary indicator)
· His Dumb Money Indicator has gone very bullish (contrary indicator)
He also has a Smart Money Indicator which he has not commented on in his latest release.
Here is a quote:
The "Dumb Money" indicator (see figure 1) looks for extremes in the data from 4 different groups of investors who historically have been wrong on the market: 1) Investors Intelligence; 2) Market Vane; 3) American Association of Individual Investors; and 4) the put call ratio. The "Dumb Money" indicator remains extremely bullish for the fifth week in a row.
And, to put what Lerner is saying in perspective:
Our buy signal was issued on August 19, 2010, when market participants were fearful, and with market participants bullish to an extreme degree a bear signal is being issued here. If the market hasn't topped out already, it should do so within a couple of percent of the recent highs. Rallies should be sold and stops tightened up. The market is prone to sudden sell offs. There will be better risk adjusted opportunities to buy in the future.
Here is Lerner's Figure 1 (Dumb Money Indicator): [chart]
Additional perspective can be obtained from the following observations:
· The Dumb Money Indicator has a weaker signal now than in April and, more importantly, is weaker than much of the time from the March 2009 bottom to January 2010 when a historic rally was in full swing.
· The Rydex indicator is well below the levels reached in January and April this year.
· The insider indicator is issuing a far stronger signal than anything seen in the last three years.
So two of the three indicators Lerner has released are making relatively weak calls, while the third is sending a very strong signal.
It is interesting that the AAII (American Association of Individual Investors) investor sentiment survey reached 57.6% bullish, the highest level since January 2007. This is widely believed to be a contrary indicator and is one of the four parts of Lerner's Dumb Money Indicator. However, analysis has shown that the track record for the AAII Sentiment reading as a contrary indicator, while it does have some merits, shows some variability in past results when bearish sentiment correlations were tracked.There are a number of reasons why investors should remain cautious in coming weeks, independent of the investor sentiment market timing calls. Among these are rumors of Chinese monetary tightening, resurgent sovereign debt issues in Europe, a crashing muni bond market in the U.S., an over-extended U.S. stock market following an 18%+ rise in little more than two months, a steepening downturn in the U.S. housing market, an earnings and outlook shock from tech bellwether Cisco (CSCO) and worries that monetary policy can not make a significant difference to the lagging U.S. economy. And that is probably only a partial list of things weighing on the U.S. stock market right now and probably for several weeks to come.’
The New York Fed's Comic Book Explaining Monetary Policy [ Wow! This is at once both scary and tragic; and as well, a total joke. They are serious … criminals / jokesters / fraudsters! The sinkhole new york fed? … Where’s that missing $4 trillion, etc.? Here’s an archived website copy for your records. ]
Bulls Blow A Huge Chance: Here's What You Need To Know Weisenthat ‘Hard to imagine bulls being too happy about today, when it looked like there could be a decisive break from last week's hard selling. But first, the scoreboard:
Dow: -10.52
NASDAQ: -3.44
S&P 500: -0.5
And now, the top stories:
- After a furious end to last week, the overnight scene was fairly quiet. There wasn't huge news out of Asia, where stocks generally gained on little news. Japanese GDP did surpass expectations, which was refreshing.
- There had been a fair amount of talk about an Irish bailout over the weekend, but it didn't materialize. Instead Ireland, for now, seems content to let the ECB supply its banks with liquidity, while hoping that things improve before it has to tap the markets next year. Despite the lack of news yields narrowed. There was also chatter Portugal needing a bailout, not no huge reaction anywhere.
- At 8:30, we got a hotly anticipated retail sales report. It was very strong on the headline, though excluding auto it was ho-hum. It didn't move the markets much. Also at 8:30 we got a disastrous Empire Manufacturing Index survey, but... that didn't move markets much either.
- On the macro front, the day was characterized by dollar strength and heavy selling in Treasuries. JPY and EUR continue to come way off their highs, and gold is pretty meh.
- One interesting micro piece: Caterpillar is buying mining equipment maker Bucyrus, dropping nearly $8 billion in an ongoing bet on commodity bullishness.’
ETF Data Daily: SPY Bleeds $1.14 Billion, On Monday November 15, 2010, 11:00 am EST ‘Investors pulled $1.14 billion out of the SPDR S&P 500 ETF (NYSEArca:SPY - News) on Friday, as stocks and bonds pulled back for various reasons, not the least of which is growing doubts about whether the Federal Reserve’s plan to buy $600 billion in Treasurys will truly come to pass.The small-cap iShares Russell 2000 ETF (NYSEArca:IWM - News) meanwhile suffered $115.2 million in redemptions, and the PowerShares DB Agriculture ETF (NYSEArca:DBA - News) had $86.7 million, rounding out the top three funds in terms of outflows.Overall, U.S. ETFs had $546.9 million in outflows, which, along with the stock market’s losses, lowered total assets in U.S. ETFs to $966.33 billion.The Dow Jones industrial average fell on Friday 90.52 points to 11,192.58, and lost 2.2 percent in the whole week. Concerns weighing on stocks ranged from China slowing its growth to control inflation, Ireland’s poor fiscal situation growing worse and views that the Fed’s “quantitative easing” plans would debase the dollar and would thus face opposition from U.S. legislators and global leaders.
Creations
On the flip side, most of the new money flowed into two State Street sector ETFs. The Financial Select Sector SPDR (NYSEArca:XLF - News) and Consumer Discretionary Select Sector SPDR (NYSEArca:XLY - News) gathered $201.9 million and $163.9, respectively. Rounding out the top three funds was the broad-based SPDR Dow Jones Industrial Average ETF Trust (NYSEArca:DIA - News), which gathered $112.2 million.
Top 10 Creations (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| XLF | Financial Select Sector SPDR | 201.87 | 7,199.14 | 3% |
| XLY | Consumer Discretionary Select Sector SPDR | 163.93 | 1,945.70 | 9% |
| DIA | SPDR Dow Jones Industrial Average ETF Trust | 112.15 | 7,989.65 | 1% |
| XLE | Energy Select Sector SPDR | 91.19 | 7,142.63 | 1% |
| VXX | iPath S&P 500 VIX Short-Term Futures ETN | 87.76 | 1,947.55 | 5% |
| IVV | iShares S&P 500 | 78.39 | 23,419.16 | 0% |
| XLK | Technology Select Sector SPDR | 57.24 | 5,772.11 | 1% |
| IVE | iShares S&P 500 Value | 48.06 | 3,915.57 | 1% |
| FXE | CurrencyShares Euro | 47.78 | 457.31 | 12% |
| EWD | iShares MSCI Sweden | 43.08 | 376.96 | 13% |
Top 10 Redemptions (All ETFs)
| Ticker | Name | Net Flows ($,mm) | AUM ($, mm) | AUM % Change |
| SPY | SPDR S&P 500 | -1,135.78 | 87,104.38 | -1% |
| IWM | iShares Russell 2000 | -115.19 | 14,128.53 | -1% |
| DBA | PowerShares DB Agriculture | -86.65 | 2,327.88 | -4% |
| QQQQ | PowerShares QQQ | -86.63 | 23,017.67 | 0% |
| XRT | SPDR S&P Retail | -71.42 | 352.64 | -17% |
| FXI | iShares FTSE/Xinhua China 25 | -62.41 | 8,515.12 | -1% |
| EWG | iShares MSCI Germany | -57.28 | 1,832.95 | -3% |
| TZA | Direxion Daily Small Cap Bear 3x | -36.40 | 856.85 | -4% |
| IYR | iShares Dow Jones U.S. Real Estate | -35.68 | 2,994.37 | -1% |
| IWV | iShares Russell 3000 | -24.92 | 3,030.07 | -1% |
ETF Daily Flows By Asset Class
|
| Net Flows ($, mm) | AUM ($, mm) | % of AUM |
| U.S. Equity | -627.68 | 413,084.27 | -0.15% |
| International Equity | 80.16 | 271,637.23 | 0.03% |
| U.S. Fixed Income | -51.23 | 137,365.91 | -0.04% |
| International Fixed Income | - | 6,766.88 | 0.00% |
| Commodities | -12.97 | 95,336.44 | -0.01% |
| Currency | 39.94 | 4,893.35 | 0.82% |
| Leveraged | 22.74 | 11,618.35 | 0.20% |
| Inverse | -82.44 | 20,800.85 | -0.40% |
| Asset Allocation | - | 487.12 | 0.00% |
| Alternatives | 84.59 | 4,340.37 | 1.95% |
| Total: | -546.89 | 966,330.77 |
|
Top 10 Volume Surprises, Funds >$50 mm AUM
| Ticker | Name | Average Volume | 1-Day Volume | % of Average |
| TAO | Guggenheim China Real Estate ETF | 64,763 | 699,190 | 1080% |
| DAG | PowerShares DB Agriculture Double Long ETN | 482,931 | 4,039,250 | 836% |
| IEI | iShares Barclays 3-7 Year Treasury Bond | 161,369 | 1,107,325 | 686% |
| IEZ | iShares Dow Jones U.S. Oil Equipment & Services | 147,107 | 971,034 | 660% |
| IDV | iShares Dow Jones International Select Dividend | 264,758 | 1,499,877 | 567% |
| IHE | iShares Dow Jones U.S. Pharmaceuticals | 13,781 | 75,862 | 550% |
| EWD | iShares MSCI Sweden | 322,013 | 1,653,594 | 514% |
| FXS | CurrencyShares Swedish Krona | 14,039 | 72,024 | 513% |
| IWV | iShares Russell 3000 | 326,511 | 1,521,712 | 466% |
| BIL | SPDR Barclays Capital 1-3 Month T-Bill | 626,274 | 2,913,964 | 465% |
Top 10 1-Day Performers, Excluding Leverage/Inverse Funds and >1,000 Shares Traded
| Ticker | Name | 1-Day Performance | 1-Day Volume | AUM ($, mm) |
| VXX | iPath S&P 500 VIX Short-Term Futures ETN | 4.78% | 18,696,979 | 1,947.55 |
| VXZ | iPath S&P 500 VIX Mid-Term Futures ETN | 3.03% | 338,366 | 995.85 |
| TFI | SPDR Barclays Capital Municipal Bond | 2.05% | 499,515 | 970.24 |
| HYD | Market Vectors High-Yield Municipal | 1.91% | 160,947 | 213.53 |
| PZA | PowerShares Insured National Municipal Bond | 1.03% | 304,607 | 621.45 |
| IPD | SPDR S&P International Consumer Discretionary Sector | 0.63% | 57,429 | 19.81 |
| ITM | Market Vectors Intermediate Municipal | 0.46% | 45,609 | 229.45 |
| BSCH | Guggenheim BulletShares 2017 Corporate Bond ETF | 0.44% | 2,360 | 9.64 |
| AGZ | iShares Barclays Agency Bond | 0.41% | 42,772 | 366.06 |
| ZROZ | PIMCO 25+ Year Zero Coupon U.S. Treasury | 0.35% | 12,473 | 41.11 |
Bottom 10 1-Day Performers, Excluding Leverage/Inverse Funds and >1,000 Shares Traded
| Ticker | Name | 1-Day Performance | 1-Day Volume | AUM ($, mm) |
| SGG | iPath Dow Jones-UBS Sugar Subindex Total Return ETN | -10.24% | 430,455 | 60.70 |
| AGF | PowerShares DB Agriculture Long ETN | -8.30% | 6,850 | 3.22 |
| FUD | UBS E-TRACS CMCI Food Total Return ETN | -6.50% | 22,618 | 8.54 |
| JJN | iPath Dow Jones-UBS Nickel Subindex Total Return ETN | -6.15% | 32,522 | 14.69 |
| DBS | PowerShares DB Silver | -5.93% | 189,625 | 165.33 |
| SLV | iShares Silver | -5.87% | 57,133,074 | 9,229.36 |
| SIVR | ETFS Physical Silver | -5.83% | 717,474 | 376.26 |
| USV | UBS E-TRACS CMCI Silver Total Return ETN | -5.69% | 1,350 | 6.26 |
| UAG | UBS E-TRACS CMCI Agriculture Total Return ETN | -5.53% | 4,390 | 8.42 |
| FUE | ELEMENTS MLCX Biofuels Total Return ETN | -5.48% | 11,211 | 2.62 |
Disclaimer:All data as of 6 a.m. Eastern following the day noted in the headline. Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.’
John Hussman: The Cliff Excerpt from the Hussman Funds' Weekly Market Comment (11/15/10):
‘Last week, the return/risk profiles that we estimate for stocks, bonds and even gold declined abruptly, based on the metrics we track. We don't know how long this shift will persist, but at present, investment risk appears to have spiked considerably, and our estimates of prospective market returns have deteriorated. The abruptness of the shift in market conditions is exemplified by the weakness observed in Irish, Greek and Spanish debt, as well as the plunge in municipal bonds (particularly, as Barry Ritholtz observes, in CA issues - see the chart below), which was steep enough to erase nearly a full year of progress in just three days. [chart]
On the NYSE, hundreds of stocks achieved new 52-week highs, but ended down on the week, with technical evidence suggesting a uniform reversal from a "high pole" buying climax. The percentage of bullish investment advisors reached 48.4% - the highest since the April peak, while the AAII sentiment poll shot to 57.6% bulls - the highest since 2007. Our bond market measures shifted to an unfavorable status for yield pressures, putting the stock market in an overvalued, overbought, overbullish, rising-yields conformation despite QE2, which as anticipated, has been met with fairly eager offers from bondholders. ...
I've reviewed the valuation conditions of the stock market extensively in recent months, emphasizing that stocks are not a claim on a single year's earnings, but rather on a whole stream of future cash flows that will be delivered to investors over time. At present, investors and analysts who focus on simple price/earnings multiples (rather than modeling the entire stream of cash flows) are placing themselves at tremendous risk, because simple P/E multiples are being distorted by unusually wide profit margins. Part of this can be traced to weak employment conditions, which have held down wages and salaries. But there is more to the story - the rebound in profit margins also reflects a heavy contribution from financials (which may be more indicative of accounting factors than sustainable earnings), as well as the tail-end of stimulus spending.
The chart below underscores the relationship between high current profit margins and poor subsequent earnings growth. The blue line shows U.S. corporate profits as a percentage of GDP (left scale), which is currently just over 8% and at the highest level since 2007. The red line depicts subsequent 5-year growth in profits, but on an inverted right scale (higher values are more negative). In effect, it should not be a surprise if present levels of corporate profits are followed by negative profit growth over the coming 5 years. Indeed, the 2009 burst of stimulus spending is most probably the only factor that has prevented profit growth from being negative over the most recent 5-year period. [chart] ‘
Lynn Reaser: Significant Profit-Taking Ahead
The Economy Will Not Recover Until the Economic Criminals are Prosecuted, and There Are Real Investigations Into 9/11 and Other Government Failures Trust is essential for a stable economy; Trust is currently at an all-time low; Launching criminal prosecutions and real investigations is one of the main prerequisites for an economic recovery.
NY Fed: New York state manufacturing plunges ‘unexpectedly’ AFP | New York state manufacturing unexpectedly plunged in November, the first contraction since July 2009 when the US economy exited recession.
The Media Is Already Blaming the Tea Party For the Coming Economic Collapse EndoftheAmericanDream.com | The mainstream media in both the United States and in the UK are placing blame for an economic collapse that hasn’t even happened yet on the Tea Party movement and on opponents of the Federal Reserve.
Economists Send Fed Open Letter Warning of QE2′s Perils Kurt Nimmo | Bernanke’s QE2 will rival all past QE2s and will build upon past efforts to inflate the money supply.
Obama Says Federal Reserve’s Easing Wasn’t Aimed at Affecting Dollar Value Bloomberg | President Barack Obama said the U.S. Federal Reserve’s second round of quantitative easing is designed to boost growth.
Gonzalo Lira And The Boiling Frog: Effects Of QE2 On The Bottom 80% Of The U.S. Population Zero Hedge | I’ve been arguing that the unpayable Federal government debt, coupled with irresponsible Federal Reserve policies, will inevitably lead to a hyperinflationary event and currency collapse.
U.S. Debt Proposal Would Cut Social Security, Medicare Bloomberg | The government is projected to run $8 trillion in deficits over the next 10 years, which would push the national debt up to more than $20 trillion.
U.S. Pushes China for Yuan Appreciation Before Hu’s January Visit to Obama The U.S. called on China to let the yuan rise before President Hu Jintao’s planned January trip to Washington, setting a deadline for results after Group of 20 leaders failed to reach a broad agreement on currencies.
Bernanke’s worst nightmare: Ron Paul Ben Bernanke has had his hands full since his first day on the job as Federal Reserve chairman nearly five years ago. It’s about to get even tougher.
Here’s How to Stop Market Manipulation and Show Too Big To Fail Banks Like JP Morgan Who Is Boss Leading economists and financial experts say that our economy cannot recover until the too big to fails are broken up.
No change: Wall Street finds loophole in financial reform US banks have found a way to continue betting their own money on some investments, despite a new law’s restrictions on proprietary trading, the Financial Times reported on Thursday, citing Wall Street executives.
Fed Must Abandon $600 Billion Stimulus: Economists A group of Republican-leaning economists will launch a campaign this week calling on U.S. Federal Reserve Chairman Ben Bernanke to drop his plan to buy $600 billion more in Treasury bonds, the Wall Street Journal reported on Monday.
Ambrose Evans-Pritchard: ECB Could Trigger Great Depression Unless the ECB takes fast and dramatic action, it risks destroying the currency it is paid to manage, and allowing a political catastrophe to unfold in Europe.
James Turk: Gold 8000, Hyperinflation sure, Prohibition possible For James Turk its quite clear, that the price of gold is maniupulated. “By doing so it makes the Dollar look better because gold is the only natural competitor towards the Dollar. If you keep the goldprice low it makes the Dollar look better then it really is”.
Is Gold In a Bubble … And If So, How Much Further Can It Rise Before It Pops? When everyone from Jim Cramer to Mr. T is hawking gold – and when the price has risen to all-time highs – it sure feels like a bubble.
Currencies Flashing Major Warning Signs for a Significant Correction
Prepping for the Opening Bell: Pain and Sobriety Return to the Markets, Waters Remain Choppy
National / World
Economists Send Fed Open Letter Warning of QE2′s Perils Kurt Nimmo | Bernanke’s QE2 will rival all past QE2s and will build upon past efforts to inflate the money supply.
America at War: The Missing Election Issue Americans have voted, and voted for change. Real change. Yet the most important area requiring change is one that received virtually no attention on the campaign trail: foreign policy.
British demand US data on ‘nukes’ in Iraq British protesters call on the US government to disclose data on where in Iraq its army had used weapons containing depleted uranium (DU).
Does TSA Behavior Fall under Definition of Terrorism? Are agents of the Transportation Security Administration engaging in behavior that falls under the Patriot Act’s definition of domestic terrorism? The question may sound preposterous until you consider the following.
Military spending, collapse of US empire The military industrial complex continues to rev its engine even as the US economy continues to struggle. Pro-defense Republicans are already shouting to use their party’s newfound legislative power to boost the Pentagon budget. Paul Craig Roberts points out that the government only cares about the military industrial complex and lacks compassion for its people.
Candid Treason [ This is really quite remarkable when you consider the precarious state of pervasively corrupt, defacto bankrupt america’s affairs, domestically, internationally / geopolitically, economically, and financially! ] Last week, the new House Majority Leader Rep. Eric Cantor (R-Va.) met with Israeli Prime Minister Benjamin Netanyahu in New York City to privately discuss U.S. sanctions against Iran, U.S.-Palestinian relations, the United Nations, the Republican smackdown in the recent election, and various subjects dealing with Israel and America’s special relationship.
Big Sis Caught Lying To American People Steve Watson | Propaganda piece attempts to quell massive backlash against naked body scanners, TSA molestation.
Flashback: TSA Goon Molests 3 Year Old Kurt Nimmo | Child throws tantrum as TSA goon attempts intrusive patdown.
TSA Caves On Molesting Pilots Paul Joseph Watson & Alex Jones | Feds beginning to back down in face of national outrage, but no word on ordinary travelers being subjected to airport oppression.
Call of Duty: Black Ops Shows Good Guys Using Torture Infowars | The newest edition of the series, with a plot that heavily involves biochemical engineering (bioweapons), features a scene where you torture someone by sticking a shard of glass in their mouth and punching them repeatedly.
CBS News: Obama’s G-20 Performance an ‘Embarrassing Disappointment’ President Obama arrived at the G-20 economic summit confident that his free trade agreement with South Korea was in the bag. But as Chip Reid reports, the president walked away empty-handed after South Korea refused to open its market to U.S. automobiles.
The Economy Will Not Recover Until the Economic Criminals are Prosecuted, and There Are Real Investigations Into 9/11 and Other Government Failures Trust is essential for a stable economy; Trust is currently at an all-time low; Launching criminal prosecutions and real investigations is one of the main prerequisites for an economic recovery.
Karzai wants U.S. to reduce military operations in Afghanistan KABUL- President Hamid Karzai said on Saturday that the United States must reduce the visibility and intensity of its military operations in Afghanistan and end the increased U.S. Special Operations forces night raids that aggravate Afghans and could exacerbate the Taliban insurgency.
Nazis Were Given ‘Safe Haven’ in U.S., Report Says A secret history of the United States government’s Nazi-hunting operation concludes that American intelligence officials created a “safe haven” in the United States for Nazis and their collaborators after World War II, and it details decades of clashes, often hidden, with other nations over war criminals here and abroad.
Germany Was Right When It Called Our Financial Policy “Clueless” It’s never a good thing when another country calls your financial policy clueless. It’s particularly bad if that other country is one of the world’s leading economies, and if it also happens to be right.
Timetable Abandoned: U.S. And NATO To Wage Endless War In Afghanistan The mainstream news media and alternative sources alike have seized on a recent revelation – though it is hardly such – published by McClatchy Newspapers that “The Obama administration has decided to begin publicly walking away from what it once touted as key deadlines in the war in Afghanistan in an effort to remove emphasis from Barack Obama’s pledge that he would begin withdrawing US forces in July 2011.”
G-20 Worries About Everything But What It Should Greg Hunter | There is a “new normal.”
Poll Shows Overwhelming Opposition to Naked Body Scanners, Patdowns Kurt Nimmo | “I do not accept being thoroughly groped and squeezed.”
America conducts subversive activities in friendly territories Sergei Balmasov and Vadim Trukhachev | Why is America conducting subversive activities in foreign territories, including, apparently friendly countries?
Geraldo Rivera changes mind on AE911Truth and BuildingWhat AE911truth | Geraldo Rivera surrenders his attitude against AE911Truth and BuildingWhat on building 7.
TSA Encounter at San Diego International Airport Johnny Hedge | I had my phone recording audio and video of much of these events.
TSA security officers flunk physics Mike Adams | It’s almost like we need to walk through the airport now with a book called Physics 101.
General Mcinerney: “I am absolutely certain that is not an aircraft” More information on the recent sighting off the coast of California has once again confirmed the unidentified flying object as a missile.
TSA Ejects Man, Threatens Lawsuit For Refusing “Groin Check” After he described the pat down, I realized that he intended to touch my groin. After he finished his description but before he started the pat down, I looked him straight in the eye and said, “if you touch my junk, I’ll have you arrested.” He, a bit taken aback, informed me that he would have to involve his supervisor because of my comment.
CNN Reports Growing Outrage Against Porno Scanners The Drudge Report, Infowars.com, Prison Planet.com, and the alternative media have forced CNN and the corporate media to cover this
Airport ‘pat-downs’ cause growing passenger backlash Airport travelers call it groping, prodding or just plain inappropriate – a pat-down that probes places where the sun doesn’t shine. The Transportation Security Administration calls it the new reality of airport security.
‘Naked scanners’: Lobbyists join the war on terror The degradations of passing through full-body scanners that provide naked pictures of you to Transportation Security Administration agents may not mean that the terrorists have won — but they do mark victories for a few politically connected high-tech companies and their revolving-door lobbyists.
Hero Pilot Opposes Naked Body Scanners Hero Bay Area pilot Sully Sullenberger is adding his voice to growing opposition among pilots and flight attendants to those airport body scanners.
Big Sis Slaps Pilots, Industry Leaders In Face Over TSA Revolt Big Sis has slapped travel and pilots associations in the face after a meeting designed to address the burgeoning backlash surrounding naked body scanners as well as new invasive groping measures ended in nothing more than a glib Homeland Security press release that failed completely to offer any reasonable response to the national outrage against the TSA.
Drudgereport: DANGER: NY Fed: 'State manufacturing plunges'...
PRAVDA: America conducts subversive activities in friendly territories...
THE TERRORISTS HAVE WON
Airport body-scan radiation under new scrutiny...
Government in our pants...
TSA agents eject man from airport for opting out of 'groin check'...
'You touch my junk and I'm going to have you arrested'...
BIG SIS DOUBLES DOWN: Scanners are safe, pat-downs discreet...
POLL: Are new security screenings affecting your decision to fly?
MAG: Abolish the TSA...
VIDEO: Nude Protest in Germany...
Social Security judges facing more violent threats...
Irish 'in bailout talks with EU'... Gov't denies... ...young flee abroad
Greece admits breach of bailout as audit begins...
CA COURT: Illegal aliens entitled to in-state tuition...
Petraeus lashes out at Karzai's criticism...
Toll from Afghan clash rises to 5, worst in 6 months...
Postal Service reports $8.5 billion loss for year (Washington Post) [ Let’s get real … the u.s.p.s. is essentially a jobs program for the otherwise unemployable … and the attitudes … you’d think by their ‘tude they were doing you a favor by ‘working there and getting paid’. Drudgereport: US postal service delivers less mail, loses $8.5 billion ... [ The u.s.postal service is totally unreliable ‘… *The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same…’ ] ]
As Iraqis forged agreement, U.S. remained influential, administration says (Washington Post) [ Wow! u.s. remained influential; kind of says it all … brings to mind that destructive character, Sluggo, on the ‘Mr. Bill Show’ of SNL fame. Thanks but no thanks!. ] Agreement leaves some Iraqis bitter The mood in Baghdad's Sunni neighborhood of Adhamiyah was one of quiet but bitter resignation Friday, a day after Iraq's Shiite incumbent prime minister kept his post during a chaotic parliamentary session marred by a walkout. U.S. says it remained influential
In China, a fierce battle for tourism dollars (Washington Post) With revenue from local tourism estimated to reach $172 billion this year, Chinese towns are scrambling to lay claim to historical and even fictional characters to attract visitors.
Melinda Gates resigns from the Post Co. board(Washington Post) [ I think that’s a good thing for The Washington Post but will say no more than that. ] Wife of billionaire Microsoft co-founder Bill Gates did not give a reason for stepping down.
U.S. stock market follows Asian stocks downward (Washington Post) [ Blame the decline on the ‘yellow man’. Brings to mind the acclaimed documentary, ‘Sad Song of Yellow Skin: Important Film on 1970s Saigon - Viet ...’ http://www.vietworldkitchen.com/blog/2010/04/sad-song-of-yellow-skin-amazing-film-on-1970s-saigon.html … Just kidding … actually, this sounds like a job for Rosanne Rosanna Danna formerly of SNL fame, as night follows the day, to chime in with a reminder as her mama always used to say, ‘it’s always something’ … but unfortunately, that somethin’ is not reality. Reality is that the u.s. market needs no help from Asia to fall but here in the states they love for you to think that. The fact is that the u.s. market is way over-valued / over-bought, floating on air and b*** s*** alone. ] The Dow Jones industrial average fell 0.8 percent to 11,192.58, while the Standard & Poor's 500-stock index - a broad gauge of the U.S. stock market - fell 1.2 percent to 1199.21.
G-20 nations agree to agree (Washington Post) [ I’d say they ‘agree to agree to disagree’! After all, despite all the one-world-globalization rhetoric, joint and several interests of the various nations have never been more disparate. ]Major economies agree to abide by common standards that could reverse some of China's export dominance and help put americans back to work.
Five myths about the Fed (Washington Post) [ Clearly, Mr. Ip is but a blip in the realm of reality-based economics. The fed has proven itself detrimental to all but the frauds on wall street and the fed’s own ‘bootstrap’ (some would say not even legitimate and actually an illegal usurpation of what otherwise is even at present a non-delegable constitutional function) existence / raison d’etre. He’s not the only one who misperceives the fed fallacy. See generally, infra; but remember, there is no new alchemy that creates something out of thin air or nothing, without a corresponding debit to a credit, action / reaction, etc.. What ultimately is the impetus for this scam is to enable the frauds on wall street / banksters to get hard currency for worthless paper / securities / toxic assets which disparity in value must ultimately be made up somewhere, viz., treasury, taxpayers, etc.. Moreover, much of the fluff has wound up on wall street where the frothed market bubble thereby is sold into by insiders / wall street frauds and eaten away by programmed high-frequency computerized churn-and-earn scams and hence the bubble/bust, bubble/bust scenarios we’re now seeing where money’s coming out of the real economy (ie., main street) to make up for the disparity in real value, which is essentially a fraudulent wealth transfer to the perpetrators of the last, continuing, and current frauds. The fact of temporary delay does not change the inevitability / reality of same which is easily if not exactly discounted to present. See #4 by Roche that follows. ] Much of what the Fed and its chairman, Ben Bernanke, have done is shrouded in misperceptions. [ The Early Evidence: QE Does More Harm Than Good Roche What exactly has QE “lite” and the expectations of QE2 done for markets and the economy so far? Two months following the initial rumors of of QE2 and well into QE “lite” we can make some early conclusions:
1) Equity markets have rallied, but this is of little significance. There is no evidence supporting an equity market “wealth effect” according to Robert Shiller (see here) and James Bianco (see here). Bianco’s research actually finds that the corresponding commodity price increases are more likely to be a net negative for consumers. And even if there is a “wealth effect” it only helps the rich because the middle class are only minority holders of equities on the whole. Of course, this isn’t a crisis of the wealthy so this looks like another case of failing trickle down economics at best. It’s also worth nothing that stock prices are nominal wealth so intentionally distorting prices from fundamentals is no recipe for sustained wealth. Keeping equity prices “higher than they otherwise would be” only diminishes the Fed’s credibility while also creating distortions in markets.
2) The 10 year bond yield is HIGHER since the Jackson Hole speech. The 30 year bond yield is up 50 bps since the Jackson Hole speech. Therefore, there is unlikely to be a sustained refinancing effect and no increased demand to take on more debt (not that this would work in a balance sheet recession anyhow, but Mr. Bernanke fails to acknowledge that this is a demand side problem). 74% of all consumer debt is mortgage based so it’s baffling that they are targeting the short end of the yield curve. Bernanke wants to stimulate borrowing, but his actions aren’t backing up his talk. He is focusing his efforts on the short end of the curve where rates are already very low – astoundingly confusing and misguided policy.
3) Many commodities have rallied in recent weeks which will do nothing but put pressure on input costs and ultimately make life more difficult for the US consumer (assuming these costs even get passed along, which is unlikely due to weak end demand). The consumer will either be hit with higher costs which they can’t afford to sustain or US corporations will continue to be hesitant to hire the millions that need jobs because they are too busy protecting their margins. On the one hand, this one of the few certainties we have regarding QE – it hurts corporate margins by causing a speculative ramp up in commodity prices. [chart]
4) QE IS NOT MONEY PRINTING [ It is here where Mr. Roche goes awry and is not quite correct. An analogous example (of enabling), though not perfect, would be if the fed was purchasing worthless driftwood at the base of the Mississippi or tumbleweeds in Texas reflected only by accounting book entries does not change the effect of ever more worthless Weimar dollar creation. ] so there is no reason to believe that it will cause anything more than expectations of future inflation. When the Fed implements a policy of QE they are merely purchasing an asset that already existed and swapping it with a deposit. There is some debate over the price changes before these transactions take place and whether the Fed is buying at higher prices, but this is offset by the fact that the Fed is removing a high yielding asset for a lower yielding asset. In this case, they are removing 1.2% paper (on average) in exchange for reserves that will earn just 0.25%. Remember, in QE1 the Fed removed over ~$47.5B in interest income from the private sector. So if anything, this has a marginal deflationary impact.
5) Borrowing didn’t pick-up after QE1 and there’s certainly no signs of a borrowing boom in recent data. Of course, with real estate in the midst of a double dip there’s unlikely to be a surge in borrowing in the coming quarters anyhow. As Robert Shiller detailed, the “wealth effect” of a housing boom can be quite substantial. With home prices now declining again we’re actually seeing the opposite of a “wealth effect”. In other words, the majority of Americans don’t feel better because Wall Street rallies each and every day. They feel worse because the asset they come home to every night, the asset that accounts for the majority of their net worth, has declined in value. [chart]
So just what exactly does QE do for the economy? Even the people who are advocates of it don’t seem to know and certainly can’t back up their claims with any positive evidence. Meanwhile the media and its misguided punditry are falling all over each other to spread falsehoods and inaccuracies regarding this policy as they shower Ben Bernanke with praise for trying something. I am not sure why Mr. Bernanke is worthy of any praise. He did not foresee this crisis. He responded too late when it was clear that a crisis was on our doorstep. And when he finally did respond he saved the banking system and left the American public out to dry. Thus far the evidence surrounding his latest tool looks poor at best and it in fact appears as though it could be causing more harm than good.
As for the markets, there has been some interesting action in recent weeks. It looks like the smart money markets (FX and fixed income) have slowly started coming around to the fact that QE won’t cause a dollar crash (because there is no interest rate effect and no “printed money”). Meanwhile, risk markets (equities and commodities) are on fire as “buy the dip” and “don’t fight the Fed” become the motto on every trading desk. The divergence here won’t last and given the early evidence it looks to me like a whole lot of investors are deep into the risk trade without the fundamentals to back it up. They’ve placed a bet on a Fed Chief who has failed at nearly every step of his tenure. A great deal of leveraged optimism has been priced into the market based on this “non-event“. I do not know if I have ever seen the market rally so much around an event that involved more misguided and inaccurate analysis.
Mr. Bernanke has created dangerous distortions in many markets over a policy that appears to have no real economic impact. He is playing games with the markets in an effort to give the appearance that he has not run out of policy tools. This not only calls into question the independence of the Federal Reserve, but has to very seriously make one wonder whether Mr. Bernanke is fit to run the world’s most important Central Bank? I have long maintained that he was never fit for this position and in my opinion the early evidence of QE only further confirms that belief.
5 Long-Term Consequences Of The Recession [ Actually this great recession that wasn’t going to happen as per b.s. bernanke is actually a depression which continues despite manipulation and spin and definitional niceties. Those continuing ‘consequences’ are merely a reflection of this fact. ] Simpson ‘Whenever the word “recession” comes up, people expect a certain amount of damage, and damage of a certain type. Everybody knows that there will be job losses and a general sense of gloom and malaise. Most people also seem to expect the government to “do something” to end the recession. Along the way, the stock market falls, interest rates drop and overall economic activity slows down. It is never pleasant, but it is a relatively routine part of the economic cycle.The Great Recession that officially ended a year ago may be different with consequences that could run deep and last for many years…
“I Love You, But …”
This recession seems to be having a definite impact on family life. Industrial production is not the only “production” that has fallen; birth rates have dropped to record lows as people delay having children in the face of the economic troubles. What’s more, there is the expected increase in divorces – not surprising, given that monetary issues are a common root cause of divorce and tough economic times sharpen those problems – as well as a big spike in prenup agreements.
Losing the Future
One of the saddest under-reported consequences of recession is the different impacts it can have on young people. Grim as it is, recessions lead to higher rates of child malnutrition, and there is ample evidence that points to serious long-term consequences to such malnutrition, including stunted development and academic under-achievement.Even for kids who have enough to eat, the impacts can still be serious. Less money in the pockets of parents can have a direct impact on the kids’ education and enrichment opportunities. Too many high school kids are finding college slipping out of reach due to a combination of parents who cannot help with tuition and banks that will not lend. What’s more, it is fair to wonder what the psychological impact may be of seeing mom and/or dad lose a job and be out of work for years – does it inspire unproductive emotions like resentment or fatalism? (For more, see The 6 Worst Student Loan Mistakes You Can Make.)
More Anger, More Distrust
Recessions have a way of stapling a “kick me” sign to the back of whatever government is in charge during the troubles. This recession feels a bit different though, as almost everybody seems angry about something. One side of the aisle is livid at what they see as untrammeled expansion and intrusion of government; the other side chastises the government for not getting involved enough and solving the problem!With a festering pit of rancor to exploit, some politicians are apparently looking to score points with constituents by stirring the pot instead of working with their colleagues to create long-term solutions for national policy. In turn, that may mean that this recession has the long-term side effect of distracting the political process and creating so many bad feelings that important work goes undone and problems become even more serious down the line.
A New World of Jobs and Housing
It seems likely that this recession will have a long tail in terms of its impact on jobs and housing. Individuals who thought their portfolio and/or the value of their house meant that retirement was imminent may now be facing a decade or more of additional working years. That could be bad on several levels, as it will block new entrants from the job market and will mean higher employment costs for companies. Ironically, the government may stand to benefit, as it could increase the spread of time where these workers contribute to the Social Security system before taking benefits.It is not unusual for housing prices to decline in a recession, but the role of housing in this Great Recession is clearly a little different than past examples. With so many people trapped in unsellable houses, the normal migration from areas with no jobs to areas with jobs has been stymied. Moreover, so many people have learned a harsh lesson regarding the fallacy of houses making great investments.What could this mean for the future? It is not unthinkable that politicians may reconsider whether it really is good to aggressively promote home ownership and whether Congress ought to roll back certain incentives. It may also be the case that former homeowners either decide that the hassles of home ownership are not worth the risks, or that they cannot get mortgages again in the future. In either case, houses may lose their luster and the recovery in housing prices could turn into a multi-decade slog. (For more, see Boomers: Twisting The Retirement Mindset.)
Huge Debts to Pay
In an ironic twist, a recession that came about in large part because of excessive consumer debt and excessive financial leverage in the system may yet end with far too much debt on balance sheets. As the Fed has determinedly pushed rates down to near-nothing, corporations (and the federal government) have gorged on the cheap paper.Savvy companies will no doubt put this capital to work and make substantial returns on the leverage. The problem is, it is never the savvy companies that cause reason to worry. It’s the “me too” companies led by reckless or inept managers who will cause the trouble. Sooner or later, these companies will have a tough time paying their debts, and that will lead to a whole new cycle of worry, distress, job loss and so on. Likewise, without a buoyant economy to bail out the federal government, this high public debt burden could lead the way to higher taxes, higher inflation and other unpleasant consequences.’
Correction Continues As Street Slides Schaefer ‘Stocks flail Friday as market pulls back sharply.
Stocks stumbled to close out a red week on Wall Street as the major indexes dropped more than TK over five days.Some pullback was certainly to be expected after a two-month rally culminated in last week's surge punctuated by the Federal Reserve's plan to purchase $600 billion in Treasury debt through June 2011., a plan that got off to a rocky start Friday as technical difficulties forced the central bank to extend the window for its first round of purchases.
The Fed's action has drawn criticism from around the world since last week, leading up to the G20 meeting in South Korea this week that has been marked thus far by sniping whether QE2 is intended to artificially depress the value of the dollar. Another wrinkle comes from China, where inflation hit a two-year high and sparked concerns that the central bank there could try to tamp down growth and in turn slow the global recovery.
All that combined with continued weakness from technology stocks on the heels of a cautious outlook from Cisco Systems ( CSCO - news - people ) Wednesday. The sector was not a complete basket case Friday – its losses were in line with the broader market thanks partly to a dividend hike from Intel ( INTC - news - people ) – but the Technology SPDR ETF ( XLK - news - people ) was still down 1.4%.
The Dow Jones industrial average lost 91 points to 11,193, while the S&P 500 fell 14 points to 1,199 and the Nasdaq sank 37 points to 2,518. For the week the indexes were down 2.2%, 2.2% and 2.4%, respectively. Commodities were also reeling on the news out of China, with gold down more than $30 to below $1,370 an ounce and oil dropping to less than $85 a barrel.
Boeing ( BA - news - people ) was among the culprits behind the Dow's decline, sliding 3.5% amid fresh concerns over delays on its 787 Dreamliner. Analysts at Bernstein cut the aircraft maker to market perform, citing worries that challenges for the 787 could offset positive demand trends, according to TradeTheNews.com.’
Obama Says Federal Reserve’s Easing Wasn’t Aimed at Affecting Dollar Value Bloomberg | President Barack Obama said the U.S. Federal Reserve’s second round of quantitative easing is designed to boost growth.
Gonzalo Lira And The Boiling Frog: Effects Of QE2 On The Bottom 80% Of The U.S. Population Zero Hedge | I’ve been arguing that the unpayable Federal government debt, coupled with irresponsible Federal Reserve policies, will inevitably lead to a hyperinflationary event and currency collapse.
U.S. Debt Proposal Would Cut Social Security, Medicare Bloomberg | The government is projected to run $8 trillion in deficits over the next 10 years, which would push the national debt up to more than $20 trillion.
No change: Wall Street finds loophole in financial reform US banks have found a way to continue betting their own money on some investments, despite a new law’s restrictions on proprietary trading, the Financial Times reported on Thursday, citing Wall Street executives.
The Fed Trashes The Dollar If it is the first responsibility of the Federal Reserve to protect the dollars that Americans earn and save, is it not dereliction of duty for the Fed to pursue a policy to bleed value from those dollars? For that is what Chairman Ben Bernanke is up to with his QE2, or “quantitative easing.”
John Taylor Predicts Euro Collapse Now that Ben Bernanke has re-introduced quantitative easing (QE2) to a mostly incredulous world and, across the ocean, the Eurozone has begun unraveling again, our thoughts should turn to the parlous state of the world and the risks ahead. These are amazing times and seem to grow more so every day.
We’re On The Brink Of The End Of King Dollar For a very long time I have been calling for, expecting and otherwise anticipating the day that the Federal Reserve would begin openly monetizing government debt. I knew the day would come intellectually, but in my heart I hoped it wouldn’t.
National / World
Obama Says Federal Reserve’s Easing Wasn’t Aimed at Affecting Dollar Value [ Come on! What does wobama know about such things; least of all, what the fed’s doing or why; then there’s the wall street froth / fraud / churn-and-earn thing! ] President Barack Obama said the U.S. Federal Reserve’s second round of quantitative easing is designed to boost growth, not affect the value of the dollar, rebuffing charges that America is seeking a weaker exchange rate.
DHS chief tells pilot, tourism reps scans and patdowns will continue Aaron Dykes & Alex Jones | Homeland Security head Janet Napolitano rebuffed industry concerns at a White House meeting today, frustrating pilot and tourism representatives worried an about economic backlash and traveler revolt.
‘Revolt Against TSA’ hits #1 on Google Trends Aaron Dykes | A surge in criticism against the TSA’s increasingly violating practices along with extensive coverage on the Drudge Report has resulted in an all-out “Revolt Against TSA.”
DHS May Turn To Body Scanners That Store Biometrics Paul Joseph Watson & Kurt Nimmo | Devices ultimately intended to be used to control access to shopping malls, banks and even apartment blocks in frightening new Minority Report-style surveillance grid.
World Battles The Invasion Of The Naked Body Scanners Steve Watson | Scientists, pilots, flight attendants, privacy groups, parents, Muslim groups and everyday passengers all rebelling against airport tyranny.
TSA Desktop Image Makes Joke of Cavity Searching Children Kurt Nimmo | A Flickr photo shows a computer in a TSA airport office with a desktop image of a satirical book entitled “My First Cavity Search.”
Council on Foreign Relations panel advises Obama to scale back Afghan occupation AFP | The task force of the CFR largely backed the Obama administration’s plan of intensifying military operations against the Taliban and starting a withdrawal in mid-2011.
Timetable Abandoned: U.S. And NATO To Wage Endless War In Afghanistan The mainstream news media and alternative sources alike have seized on a recent revelation – though it is hardly such – published by McClatchy Newspapers that “The Obama administration has decided to begin publicly walking away from what it once touted as key deadlines in the war in Afghanistan in an effort to remove emphasis from Barack Obama’s pledge that he would begin withdrawing US forces in July 2011.”
41 Facts About The History Of Central Banks In The United States That Our Children Are No Longer Taught In School [ Oh come on! Only fools could possibly take american history as written by americans seriously! ] Today, most American students don’t even understand what a central bank is, much less that the battle over central banks is one of the most important themes in U.S. history.
Council on Foreign Relations panel advises Obama to scale back Afghan occupation Influential US experts on Friday painted a grim picture of the Afghanistan war, calling on President Barack Obama to consider scaling back the military mission without signs of progress.
Drudgereport: Obama's economic view rejected on world stage...
NYT: Obama’s Glow Dims on Trip to Asia...
UPDATE: G-20 refuses to back US push on China's currency...
Sarkozy questions dollar’s dominant role in world...
IMF Shadow Looms; Irish Take Pay Cuts to Avoid Bailout...
Airport body-scan radiation under new scrutiny...
PILOTS, PASSENGERS RAGE AT NEW NAKED SCANNERS, PATDOWNS...
MUSLIM GROUP TELLS WOMEN WEARING HIJABS: REFUSE FULL-BODY SEARCH...
US postal service delivers less mail, loses $8.5 billion ... [ The u.s.postal service is totally unreliable ‘… *The foregoing and as indicated therein was previously send 9-14-10 but delivery confirmation was flawed as set forth below and my inquiries to the u.s. postal service rebuffed (I believe tampered with inasmuch as your office could not locate same). This cover letter (9-13-10) is on the 3 disks with navigable hyperlinks to the subject files for ease of reference, including the files in the RICO action as indicated. (10-15-10) I spoke with Rose, FBI, ADIC Secretary, who indicates once again that your office has not received the aforesaid and which can reasonably be presumed to have been tampered with, and hence, a violation of the federal statute concerning same…’ ]
Pelosi's bid carries pros and cons (Washington Post) [ That’s pro’s and cons in the more literal sense of the words; viz., pros_titutes and cons / criminals / frauds. No mystery here! ]
Sunnis' walkout mars political talks in Iraq (Washington Post) [ It’s … be…ginning to look a lot like Christmas, everywhere pervasively corrupt ‘little israel’ defacto bankrupt war criminal nation america goes (to the tune of that Christmas song) … Nothing like creating the anti-Christian sentiment through failed policy to keep the war machine greased with money defacto bankrupt america doesn’t really have (and aren’t the jews / israelis by definition ‘anti-Christ and hence anti-Christian’) ] One chaotic parliamentary session reflects challenges facing U.S. efforts to leave behind a stable Iraq with a representative government. Attack on Karachi police building kills 18 (Washington Post) About six militants open fire on a criminal investigations office in the "red zone," a highly secured area within Pakistan's largest city that houses the provincial minister's residence and the U.S. Consulate. [Visiting U.S. senators praise Afghan progress, say drawdown date is unrealistic (Washington Post) [ I’ll tell you what’s unrealistic: having compromised senators ( ie., non-war-heroe senile mccain, closet homosexual graham, incompetent zelig zionist lieberman, new york sinkhole slug Kirsten Gillibrand chided As 'Schumer's (zionist) Little Girl' ) stay the course with already failed pervasively corrupt, defacto bankrupt american policy … Paul Craig Roberts: Government Abandoned Vietnam POWs Kurt Nimmo | John McCain worked overtime to make sure Vietnam POWs never came home. I think the even bigger story vis-à-vis mccain is: http://www.albertpeia.com/heroenot.htm ‘Did you know that that so-called "american heroe" john mccain was referred to by his fellow pows in Vietnam as something akin to the "songbird" inasmuch as he was constantly "singing" to his Viet-Cong captors to curry favor and better treatment? This has been documented with authority by Colonel David Hackworth. The same violates military code/protocol (other soldiers have been court-martialed for far less) click Here, Here. [ http://www.albertpeia.com/hackworth.htm ] But, you see, this covered up scenario, compromizing the false facade of far less than a heroe, is exactly what a criminal (lie of a) nation as america loves and encourages (get everyone's hands dirty so no-one dares to rectify same, ie., bush, sr., clinton, bush, jr.). That is, "toe the (corrupt, propagandized) line", become a criminal, or be exposed, prosecuted, and/or ruined; and, hasn't anyone asked how "wall street" has been "spared the spotlight" (and even was accorded protective legislation from their criminal culpability) and focus of inquiry, attention, and prosecution despite being the primary beneficiaries financial and otherwise of these scams (you know the wall street motto, "churn and earn"; huge conflicts of interest if not outright fraud)…’…Oh and they so can afford it Deficit panel proposes huge cuts (Washington Post) [ Cuts? I heard the corrupt, incompetent lawmakers were giving themselves a raise. They actually deserve at least a 10% paycut and abolition of those lifetime appointments / permanent corrupt bureaucracies. Nothing succeeds like failure and crime in pervasively corrupt, defacto bankrupt america! ] Lawmakers propose curbs on Social Security, cuts in spending and tax hikes if long-term goals aren't met. ]
Cisco's shortfall an omen for rest of tech world (AP)
Eviction backlog piling up (Washington Post) Amid mess, a populist foreclosure revolt Photos: Thousands of foreclosures are put on hold Full coverage: Foreclosure chaos [ Chaos, rioting in light of pervasively corrupt america’s defacto bankruptcy, fraud, depression, complicity in old and now new wall street fraud without prosecutions, perpetual wars, etc., have been predicted for quite some time (links on this site, trendsresearch, infowars, etc.. (INSIDER SELLING IS AT RECORD HIGHS) (Another Nobel Economist Says We Have to Prosecute Fraud Or Else the Economy Won’t Recover As economists such as William Black and James Galbraith have repeatedly said, we cannot solve the economic crisis unless we throw the criminals who committed fraud in jail. ) ]
G-20 agrees to broad guidelines (Washington Post) [ Defacto bankrupt, corrupt and fallen america loves company (like misery) … Drudgereport: Lula: World headed for 'bankruptcy'... G-20 deals prove elusive... Gonzalo Lira And The Boiling Frog: Effects Of QE2 On The Bottom 80% Of The U.S. Population Zero Hedge | I’ve been arguing that the unpayable Federal government debt, coupled with irresponsible Federal Reserve policies, will inevitably lead to a hyperinflationary event and currency collapse. U.S. Debt Proposal Would Cut Social Security, Medicare Bloomberg | The government is projected to run $8 trillion in deficits over the next 10 years, which would push the national debt up to more than $20 trillion. Bernanke Confirms That The Key Goal Of The Fed, And QE2, Is To Boost Stock Prices Zero Hedge | So much for the Fed’s two mythical mandates of promoting “maximum employment” and maintaining “price stability.” China lashes Fed easing as risk to global recovery China said on Thursday that the U.S. Federal Reserve’s move to ease monetary policy risked undermining the global economic recovery, adding that Washington “should not force others to take medicine for its own disease”. ] Nations defer substance of the work amid uncertainty about how effective the effort will prove in practice.
Dems criticize possible tax deal (Washington Post) [ Well, isn’t that what parties out of power do … criticize … for the record … for the next election … or whatever (they never did stop those wasteful illegal wars, nation’s still defacto bankrupt, huge wall street fraud still unprosecuted, etc.). Besides, their motto’s still as always on capital hill, why sacrifice today when you can sacrifice tomorrow … you know, as derived from those profound philosophers, classic rocksters of old, The Grassroots, ‘La, La, La,La, La, LET’S LIVE FOR TODAY’, ‘La, La, La,La, La, LET’S LIVE FOR TODAY’, ‘and don’t worry ‘bout tomorrow, ‘La, La, La,La, La, LET’S LIVE FOR TODAY’ ] Report indicates that President Obama is likely to back a temporary extension of tax cuts for households with income over $250,000 a year.
Leonardo DiCaprio on tigers (Washington Post) [ This article which warranted frontpage treatment must have been buried inasmuch as I woud have commented before closure. But this is indeed an item of such global importance so as to warrant ‘ better late than never’ treatment. ]By Leonardo DiCaprio and Carter S. Roberts Sunday, November 7, 2010 ‘Tigers have long provoked awe in the human imagination, symbols of untamed nature whose "fearful symmetry," in the words of William Blake, has inspired everything from art to advertising…’
Sentiment Indicators Are Screaming Sell-Off Hedge Fund Live ‘As we have witnessed a solid run up from 1140 and a break to new highs in both the S&P 500 and NASDAQ Composite sentiment indicators are hitting levels we witnessed in January and April which resulted in dynamic sell-offs. The latest indicator comes from Mark Hulbert who keeps a 30+ year sentiment indicator which tracks the mood of newsletter editors for equities, bonds, and gold. As of yesterday the Hulbert Stock Newsletter Sentiment index (S&P 500) is at 60.8% which is about a 40% point jump from September 2010. 60.8% is just below Hulbert’s line in the sand of 65% whcih has coincided with numerous market tops. In April, his indicator topped at 65.5% and in January at 65.2%. Hulbert’s NASDAQ indicator, which has a more volatile range due to the speculative nature of the index, is at 73%. In April 2010 Hulbert’s NASDAQ indicator topped out at 80%. Hulbert’s index isn’t perfect, for instance in Oct. 2006 his index read 67.8%, but, shrugged off the outsized bullishness and continued to rally until Feb. 2007. All in all, the majority of indicators tell you we are overbought and if managers need to chase performance into year-end we should see a rally into year-end, but these are facts and according to Hulbert’s study we could very well see a sell-off.’
Go to following pages for above links:
http://www.albertpeia.com/currentopics2ndqtr10108.htm
http://www.albertpeia.com
http://www.scribd.com/alpeia
http://alpeiablog.blogspot.com
http://www.albertpeia.com/alresume.htm
http://www.albertpeia.com/wallstreetlunacy2ndqtr10108.htm
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