11-2-11 POSTS



 

 

Fed sees high unemployment for years to come   Fed sees weaker economic growth After central bank announces it won’t take new action to pump money into the U.S. economy, officials sharply downgrade their forecasts, expecting a sluggish recovery and high unemployment. (Washington Post) [ Something to look forward to. Sounds like a plan! The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is (Criminally) Insane The Wall Street Journal  , This is an especially great opportunity to sell / take profits because there’s much worse to come! Watch for more fake reports / data in their infinite political desperation both here and across the sea! Citi: "The Bear Market Rally Is Behind Us; We Anticipate A Move To 1,000-1,015"Fed lowers GDP forecast, raises unemployment projections, mulls more inflation producing, failed, futile, wall street fraud-friendly action to the detriment of all others which rallies those ever more worthless as with dollars ‘pieces of paper’ (actually not even, just ‘over-counted/supplied computerized ‘ledger’ entries) for the ubiquitous as in the last financial fraud debacle) for the continuing High-Frequency-Trade churn-and-earn (Reuters) , Market Recap: Banks Rally Back, Fed Outlook Worsens [jersey based, former lautenberg adp data’s as worthless as that from the scandal-scarred commerce dept. et als, ie., factory numbers; then, the labor dept.’s fake report, estimates, numbers, including the b.s. service sector, etc..) Wall St. Cheat Sheet  , Fed foresees far weaker growth than it had earlier , MF Global Client Theft Estimate Doubled To $1.5 Billion?Game Over Berlusconi? Italian Anti-Crisis Bill FailsEgan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Of EquityGuest Post: MF Global Shines A Light On Monetarism's Incapacity To Enhance The Real Economy , Will Spiking Vol Drag Global Growth Down? [Short answer: YES! The HFT churn and earn is parasitic, benefits the frauds on wall street only, and ultimately must ‘come from some real place’ (ie., main street, taxpayers, etc.)]    The Greco-Franco Bank Run Has Skipped the Pond, Landed in NY/Chicago and Nobody Noticed, Exactly As I Predicted! Reggie Middleton 11/01/2011 ‘We just experienced a bank run in the US that I have been warning of for months on end. A bank run that resulted in this country's 8th largest bankruptcy,,, ever - and nobody even noticed.’ ,  How US Banks Are Lying About Their European Exposure; Or How Bilateral Netting Ends With A Bang, Not A WhimperKeeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money , US construction spending +0.2% in Sep, below market expectations of +0.3%, vs 1.6% Aug. Nov 1st, 2011  ,   US ISM fell to 50.8 in Oct, below market expectations of 52.0, vs 51.6 in Sep. Nov 1st, 2011   Guest Post: Fed Trapped By InflationKeeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money , US Food Stamp Usage Hits New RecordThe Coming Derivatives Crisis That Could Destroy The Entire Global Financial System The Economic Collapse , The REAL $200 TRILLION Problem Bernanke’s Worried About  Phoenix Capital... ‘US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure…’ ; and, finally the coup de gras ,  America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks…The government’s total indebtedness is $211 trillion’,  Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1  ,   http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR   Mf global, plus mob infested jersey former governor, plus fraudulent wall street, plus mob strong new york, plus rich mob history Chicago, equals fraudulent scheme / theft / scam in the making and then reality! Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers? Graham Summers’ Weekly Market Forecast (Wake Up Call Edition)  Phoenix Capital... 10/31/2011 The markets flew into this deal based on rumors and short-covering and are now waking up to the plain obvious facts that you cannot solve a debt problem with more debt. ,  Panic Behind The MF Scenes As Company Refuses To Disclose Information To Regulators Even In DeathAre Investors Buying on False Hope? Minyanville  ,  Markets Remain in Cyclical Bear Market  Kevin Tuttle  [ Actually this is a secular bear market with much worse to come! ] ,  U.S. and Europe … “Self-Induced Stagnation,” says Economist Editor The Daily Ticker , Why Last Week's Euro Fix Won't Do the Trick ETFguide Maierhofer , Corzine's MF Global collapses under euro zone bets , Are Ratings Agencies Taking Bribes?Wall St. Cheat Sheet [ One way or another, from all 3 branches of u.s. government to u.s. businesses coast to coast, wall street to main street, they’re all getting / taking bribes! ] , SPX and NDX Update: A Disturbing Look at Fundamentals, and the Rally Explained  Jason Haver Oct 31, 2011 ,  China Says Not So Fast On Rescue   http://www.thestreet.com/_yahoo/video/11292710/buy-and-hold-is-dead-buy-and-hedge-instead.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#1250281566001   , MF Global Caught in Death Spiral , Sell H-P! Against the Grain 10/31/11   ,   Europe Will Make Lehman Look Like a Joke   http://gainspainscapital.com/?p=1010  Summers 10-28-11,  Be Honest – The European Debt Deal Was Really A Greek Debt Default Posted by : ilene Post date: 10/28/2011 - 2012 looks like it is going to be an extremely painful year. [ Yes! Very painful! I believe Dave was the first ‘to get this’ in passing yesterday; and, thinking on it more, I believe this charade cheered particularly by the frauds on wall street (and surprisingly germany) was for the purpose of ‘voluntary’ to avoid the Credit Default Swap trigger. Yet, the real bad news is that, even worse than as with the last financial debacle, owing to the greed-driven, commission/fee generating churn and earn of innumerable, bogus, worthless, levered, negatively valued on event financial instruments at computerized lightning speed, the commission-generating paper is beyond the frauds’ abilities to account for; and not just the CDS’s ( ETFs have potential to become the next toxic scandal Sep 19th, 2011 News (The Telegraph) Financial Stability Board (FSB), an international super-regulator, wrote a prescient if less than catchily-titled paper “Potential financial stability issues arising from recent trends in Exchange Traded Funds (ETFs)”..warning – ETFs are not the cheap and transparent vehicles the marketers would have us believe ..no one who read the FSB report was surprised to see the words ETF and rogue trader in the same sentence… half of the ETFs in Europe today do not match the index they are designed to track by holding all of its constituent shares.. Derivative trades add a second layer of uncertainty .. the counterparty risk that the organisation on the other side of the contract might go bust. Even worse, the provider of the ETF might sometimes be a part of the same organisation as the derivatives desk carrying out the swap…For reasons which I’m not sure I could explain even if I had the space, it is possible for the number of shares sold short in an ETF to massively exceed the actual number of shares available.’).  Not only is it that The Greek Deal Accomplishes Nothing… Systemic Risk is Coming   http://gainspainscapital.com October 27th, 2011   (Yes! It’s happened again. No … not just the (Weimar) funny money and rally as in the great depression followed by the inevitable bust /crash Parallels to The Great Depression Suggest Higher Prices Followed by a Bust ETFguide Simon Maierhofer, October 25, 2011), but  , Dave’s Daily http://www.etfdigest.com/davesdaily  ‘The only thing wrong with the image above is that it’s from March 2010, or on one of many previous plans agreed upon. But, markets don’t care about this and just thirst for any deal even if memories remain short.. HFT algos are programmed to pounce on these presumed fixes and have been active in driving stock prices higher this past week. Let’s face it; this is the time of year bulls can make their year with good fees and bonuses on the line…’ , Dave’s Daily:  http://www.etfdigest.com  ‘The above image displays quotes per second coming from HFT (High Frequency Trading) systems http://www.etfdigest.com/images/stories/davesdaily/1866/image002.jpg    http://www.etfdigest.com/images/stories/davesdaily/1866/image002.jpg    . The two graphs display action towards the close of trading Friday. The upper graph shows action of “algos” per second while the bottom the number of HFT quotes per second over a three minute time period with colors for each exchange. The lower graph displayed nearly 300 quotes per second—got that? Perhaps only a small fraction of these are real trades with the others being just bids and offers designed to stimulate program trading algorithms. This is posted because nearly 70% of all volume and trades on the NYSE for example are program trades with HFTs now dominant.   Then there’s the reality / folly that the mental case with the funny / odd little mustache has been displaced by another ubiquitous fraud of collectively the ‘multiple mental cases modern day equivalent variety’; viz., the bourse, bourses, ‘boursers’, stock exchanges, ‘market fraudsters’(wall street particularly), and their lightning fast, high frequency trading computers(‘ programs). After all, the already undercapitalized banks are now 50% more undercapitalized (those Yule Brynner hair cuts are a b**ch); there’s good money after bad; and square pegs are, for the nonce, ‘fitting’ into round holes. Nothing’s been solved and there’s much worse to come! Take this as the ‘gift’ (to stock markets everywhere, ultimately paid for by main streets and taxpayers everywhere) [Market Now Overbought: Birinyi The Wall Street Journal ] it was meant to be and sell, take profits, since this ‘microcosm of the crisis’ was never the real reason for lower markets but merely at best a symptom of [ at worst a scapegoat for ] these great depression-era times, the worst of which will be seen. It’s coming! Funny money will just exacerbate the inevitable! This may sound like a platitude; but, fundamentals and reality still count!  Is It Foolish to Get Excited About the Latest Deal to Save Europe? ETFguide    http://finance.yahoo.com/news/Is-It-Foolish-to-Get-Excited-etfguide-2444921710.html?x=0&.v=1   Simon Maierhofer, 10-27-11 [Short answer: YES! ] . The looney loonie now exceeds the value of the ‘funny-money’, debased dollar (who coulda / woulda have ever thunk it). Inflation, Jobs, and the Artificial Flow of Monetary Policyat Minyanville  Bad news and b***s*** (as in no plan plan) across the board (and sea) … yet stocks rallied …US durable goods orders -0.8% in Sep, near expectations, vs -0.1% Aug. Oct 26th, 2011 by News , Paper currency has too much bull, not enough bullion Oct 26th, 2011 by News (Globe and Mail) — Sir Mervyn King, governor of the Bank of England, ordered up another $300-billion (U.S.) in easy money earlier this month, then mentioned, by way of explanation, that we are living through the most serious financial crisis since the Great Depression – “if not,” he said ominously, “ever.” Sir Mervyn’s warning was only marginally more sobering than the collective warnings of Prime Minister Stephen Harper, Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney.This is not to mock. These men know enough not to scare people out of their wits unless it necessary to do so. So the question is, what do these people know that the rest of us don’t?More related to this story:To put Sir Mervyn’s warning into its historical perspective, it must be noted that “ever” goes back a long way. The biblical record cites one calamitous meltdown 4,000 years ago, “when money failed in the land of Egypt.” Did Sir Mervyn deliberately or inadvertently include the financial crashes of antiquity in his portentous warning? Isn’t it the failure of money that now threatens the world? [source] Euro Zone to Quadruple Bailout Fund: Sources Oct 26th, 2011 by News (CNBC) — … [source]PG View: Leverage is very much a double-edged sword, also capable of amplifying losses. Nobody ever seems to talk about that. Of course Europe can always bailout its bailouts…  STOCKS TANK BEFORE EU MEETING THAT EVERYONE EXPECTS TO FAIL: Here's What You Need To Know Business Insider [ No …this is not quite correct … the point being there’s nothing they can do to make it (other than the meeting in and of  itself as ‘a much ballyhooed  event’) succeed!   Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)  ‘…So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding …’,  Four Facts that PROVE the EFSF Doesn’t Matter… At All  Phoenix Capital 10/20/2011Four Facts that PROVE the EFSF Doesn’t Matter… At All  -  ‘.. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything. The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this)…’ ,  Parallels to The Great Depression Suggest Higher Prices Followed by a Bust ETFguide Simon Maierhofer, October 25, 2011  Investors' Number One Worry: Europe Posed to Bring Down Global Economy  Minyanville [ Riiiiight! Europe following the ‘american way’ of  ‘insurmountable debt, funny money and wall street fraud, and throw in a destructive, wasteful war or two or three’  is ‘ the one’ … to reiterate: America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke…The government’s total indebtedness is $211 trillion   ], Minyanville's T3 Daily Recap: The Anatomy of a Market Reversal  T3Live.com Oct 24, 2011 ‘Now may be a good time to take some profits after a strong October run in the market…’, 10 Reasons The Consumer Will Sink This Rally http://www.bullseyemicrocaps.com/?p=13626   Bret Jensen , United States tipped to lose another AAA credit rating Reuters | Either from Moody’s or Fitch , Can The Hope Rally Continue? [ Short answer: NO! ] , Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)  ‘…So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding …’, Minyanville's T3 Daily Recap: The Anatomy of a Market Reversal  T3Live.com Oct 24, 2011 ‘Now may be a good time to take some profits after a strong October run in the market…’, 10 Reasons The Consumer Will Sink This Rally http://www.bullseyemicrocaps.com/?p=13626   Bret Jensen , United States tipped to lose another AAA credit rating Reuters | Either from Moody’s or Fitch , Can The Hope Rally Continue? [ Short answer: NO! ] , Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1  ,   http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR ,  ECRI Recession Watch: Growth Index Drops Further   http://advisorperspectives.com/dshort/updates/ECRI-Weekly-Leading-Index.php Doug Short 10-21-11 ‘The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has now posted 11 consecutive declines since early August. The interim high of 8.0 was set in the week ending on April 15. The latest reading, data through October 14, is -10.1, down from the previous week's -9.7. On September 30th, the ECRI publicly announced that the U.S. is tipping into a recession, a call the Institute had announced to its private clients on September 21st. ,  Earnings forecasts look less bright NEW YORK (Reuters) - Prospects for corporate earnings are dimmer in the coming quarters -- even though reports so far this quarter have been relatively bright. [ Relatively bright? Only because most are not relatively bright having failed to yet ‘catch on’ to this nation-debilitating, but wall street favored defacto fraud. The ‘miracle’ of ‘funny money’ wherein the ‘debased currency strategies’ (ie., QE’s, etc.) among other accounting manipulations lead to ie., costs reported in ‘more valuable but fewer dollars’ and sales / revenues reported in debased dollars (simply more of them, but no real value created, profits overstated in real terms). ] , Banks closed in Colo, Fla, Ga; 84 failures in 2011 AP , With Some Hope In Europe, Time To Go Short? Forbes   Steve Schaefer, Forbes Staff  ‘European leaders are gathering Sunday and Wednesday in meetings aimed at hashing out an expansion of the region’s bailout fund and recapitalizing banks, but with expectations for a solution rising the risk of a less-than-comprehensive plan rattling markets may be growing...“The bar is set too high,” he believes, arguing that even if the market rallies on a deal being reached, the implementation of whatever resolution plan is adopted will be cumbersome and ultimately amount to “solving a problem of debt with more debt.” When the market realizes that, October’s 9.5% gain to date could unravel in a hurry. The recent stage in the too-rapid rise to current levels is largely a result of short-covering and investors who missed the initial stage of the recovery jumping on board…’ , Dead Stocks Walking smartmoney.com,  S&P sees downgrade blitz in EMU recession, threatening crisis strategy Oct 20th, 2011 News By Ambrose Evans-Pritchard (The Telegraph) , Euro Summit Imploding: Merkel Cancels Friday Government Statement On EFSF Student Loan Bubble To Exceed $1 Trillion: "It's Going To Create A Generation Of Wage Slavery" And Another Taxpayer Bailout Durden ‘..All we need to do is teach people that Washington D.C. and Wall Street are now the same corrupt entity.  They are one gigantic rogue trader sucking the lifeblood out of America..’ , , As growth lags, IMF warns of downturn After warning that high debt needed immediate attention, the organization is now urging countries to look for ways to boost growth amid concerns that austerity might bring renewed recession. Euro drops as Germany seeks no quick resolution (Washington Post) [ Duh … ya think?  43,454,601,693,238 Reasons Why The World Is Broke – Presenting The Interactive Global Debt Clock Zero Hedge | By now everyone has had a chance to play with the US debt clock. But what about its global cousin?   Is the US Economy in a Recession? thetechnicaltake ‘A simple indicator constructed from readily available data is suggesting with great certainty that the US economy is already in a recession.’ , US to Experience Stagflation Worse Than 1970s: Jim Rogers CNBC , Jeff Applegate: Not Sheepish About Turning Bearish  The Wall Street Journal  Jonathan Cheng ‘Last week was a tough time to turn bearish. Since hitting a bottom on Tuesday, the Dow Jones Industrial Average has jumped by 11% in less than two weeks, raising hopes among some investors that the U.S. and Europe may be able to power through their summertime woes. Not for Jeff Applegate. Mr. Applegate, the 61-year-old chief investment officer of Morgan Stanley Smith Barney, last week made his biggest bearish shift in more than two years, battening down the hatches and reducing his exposure to stocks, high-yield bonds, commodities and real-estate investment trusts…’, Fed should adopt GDP target, Goldman says Oct 17th, 2011 News (MarketWatch) — The Federal Reserve should target the level of gross domestic product, Goldman Sachs economists said ahead of a wave of speeches from central bank officials.In a note published Friday night, Goldman Sachs said the best way for the central bank to loosen policy significantly further would be to target a GDP path, and commit to using more asset purchases to achieve that path.“While a shift to a nominal GDP level target would be a big decision, it would be consistent with the Fed’s dual employment and price mandate,” the economists wrote.[source] PG View: [Talk about self-serving disingenuity that along with their frauds, goldman’s come to be known for! Goldman, like the lunatics at salomon brothers should be out of business and vigorously prosecuted; having in large part helped create this crisis which continues with their dollar debased HFT’s. (‘Salomon Brothers' success and decline in the 1980s is documented in Michael Lewis' 1989 book, Liar's Poker. Lewis went through Salomon's training program and then became a bond salesman at Salomon Brothers in London.’Wikipedia. Acquired by Travelers / Citi. ] A timely position taken by Goldman Sachs in light of the inflation piece written by John Mauldin on Saturday. Yes, it does indeed seem that “inflation as a solution” is gaining traction. I say tom-a-to, you say tom-ah-to. I say inflation targeting, you say GDP targeting. Whatever you call it, it’s synonymous with dollar devaluation and you best be saving in something other than dollars if you hope to come out the other side unscathed.Can “It” Happen Here? Oct 17th, 2011 News By John Mauldin15-Oct (JohnMauldin.com) — I was inspired for this week’s letter by a piece by Art Cashin (whom I will get to have dinner with Monday). His daily letter always begins with an anecdote from history. Yesterday it was about Weimar, told in his own inimitable style. So without any edits, class will commence, with Professor Cashin at the chalk board.[Cashin's recounting of the nightmare German inflation, which we posted last week.]…”,  Full moon October 10-14, 2011 … I’ve examined the weekly results for the global markets … Conclusion: The global euphoria, irrational exuberance in the financial markets worldwide, courtesy of the blazing full moon October 10-14, 2011 ; and yes, the lunacy once the exclusive province of fraudulent wall street is now a global phenomenon (10th near full beginning, 14th near full ending). ,  The More Government Spends, The Worse It Gets  , Balance Of Fundamentals Will Continue To Weigh On Market  ,   ECRI Recession Watch: Growth Index Declines Further  http://www.bullseyemicrocaps.com/?p=11699  By Doug Short: The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has posted 10 consecutive declines since early August. Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head it off , US budget gap widens, tops $1 trln for 3rd year Reuters ,  A New S&P 500 Low Still Awaits Us  Minyanville  Erik Swarts Oct 13, 2011 ‘Watch the SPX as the market comes to terms with the continuing crisis in Europe , America's Lost Decade Will Last Until 2016 [ This is extremely optimistic! ] Forbes Lenzner , Harrisburg, Pa Files for Bankruptcy: Is Meredith Whitney Right? [ Short anwer: Yes! ]  Peter Gorenstein , The Structural Challenges Facing Muni Bonds  Minyanville , IRS Auditing How GOOGLE Shifted Profits Offshore to Avoid Taxes Bloomberg , Europe eyes bigger Greek losses for banks , Markets Are Dealing With a Foreboding Financial Backdrop  Minyanville   Lee Adler Oct 12, 2011 ‘..especially, why have they been frantically dumping their corporate holdings since June? http://image.minyanville.com/assets/FCK_Jan2011/Image/October11/12/la10122.JPG Something is rotten here. These are signs of major systemic stress.. This may be one of those times, and it's not a happy picture..’ , Double-Dip Recession a Foregone Conclusion: Roubini Oct 11th, 2011 News (CNBC) — ‘The world’s advanced economies are headed for a second recession, regardless of whether there is further chaos in Europe, Nouriel Roubini told CNBC on Tuesday. The economist who correctly predicted the 2008 financial crisis…’, Slovakia votes down eurozone bailout expansion plans Oct 11th, 2011 News (BBC) , Euro About to Dissolve? Oct 11th, 2011 News Patrick A. Heller (NumisMaster) — “This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever., ROUBINI: The Recession Is Guaranteed, The Only Question Now Is How Bad It Will Be Business Insider | Nouriel Roubini sees bad times ahead for the economy. , Nobel Prize Winning Economist Who Supports Wall Street Protests SLAMS the Federal Reserve Washington’s Blog | Nobel prize winning economist Joe Stiglitz – like many other high-level economists – supports the “Occupy Wall Street” protests.  Graham Summers Weekly Market Forecast (Dexia Now... Who's Next? Edition)    http://www.zerohedge.com/contributed/graham-summers-weekly-market-forecast-dexia-now-whos-next-edition THIS BEAR MARKET IS NOWHERE NEAR OVER. , We Are Still Early In This Bear Phase   http://www.bullseyemicrocaps.com/?p=10478  Roger Nusbaum  Stocks Surge On New Promises From European Leaders, Dow Adds 300 Points  [ Come on! Wake up! Two desperate, failed politicians who haven’t the slightest idea what they’re doing; certainly in the areas of finance and economics. Indeed, they’ve borrowed from a page in the fraudulent wall street / defacto bankrupt american book of failure and fraud in banging ‘square pegs in round holes’ along with nation-draining fraudulent obfuscation with b***s*** alone that hearkens back to that ’Weimar dollar’ era that was precursor to and inevitably led to the inflationary / no real value collapse now underway as is already the scenario in america. How totally desperate and pathetic they are. This is cheered by the wall street types / frauds to enable them to favorably  cash out. Take your profits while you still can, protect yourself while you still can, this fraud – induced collapse is just beginning. New ‘promises’! Currency-debased high inflation rally!  What a joke they’ve become! ]   “The Prevailing Debate Among Economists and Historians is Whether the World Economy Faces the ‘Great’ Depression of the 1930s or the ‘Long’ Depression of the 1870s” Washington’s Blog | Economists Agree: We’re In a Depression.  Fitch cuts Italy, Spain ratings; outlook negative , Wall Street vs Reality: A Hopeless Tug-of-War?  http://symmetrycapital.net/index.php/blog/2011/10/wall-street-vs-reality-a-hopeless-tug-of-war  Are Wall Street strategists living in a bubble? [ The short answer is, ‘YES’! The long answer is your work is quite (closer to) correct (and worse when dollar debasement is factored in).]  According to our work, credit market, demographic, and leading economic  indicators are all pointing to a level of between 800 and 1,000 for the S&P 500 between now and 2012-2013.   Hold Your Enthusiasm ... This Is Still A Bear Market Rally    http://www.bullfax.com/?q=node-hold-your-enthusiasm-still-bear-market-rally, 10/06/2011 ,  Yield Spread Confirming Recession Call http://www.zerohedge.com/news/guest-post-yield-spread-confirming-recession-call ,  U.S. stocks' massive "melt-up" fans investor fears Reuters October 5, 2011, By Edward Krudy NEW YORK (Reuters) - In less than one hour on Tuesday, the U.S. stock market surged by 4 percent -- for no apparent reason ,  Play It Again Sam: Dave's Daily ‘ ... The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job. One of these actions was featured courtesy of our friends at Zero Hedge and depicted below as it occurred Thursday afternoon. The first chart features the quotes per second (NOTE: one instance exceeding 800 quotes per second). The next chart shows the market's simultaneous reaction.  http://www.thestreet.com/tsc/daves/082511/image002.jpg  ( Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events .. “the new recession has started.”… Over the past 33 years, we have called the start of every recession..Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation..is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’ )( ,  6 Reasons a Global Recession is Unavoidable  Ron DeLegge, October 5, 2011, Dem.lautenberg’s jersey based ADP helps the desperate dem’s cause with 100% better than expected (false) private sector jobs report (Announced U.S. Job Cuts Rise 212% From Year Ago Bloomberg) , Gabriel Wisdom to Frank Motek of 1070amBus.Rept. says this is a bear market and we’ll see market lows in 2012. [video] Nervously Eyeing 50% RetracementTheStreet.com Mark Newton , Moody's Downgrades Italy By Three Notches The Wall Street Journal ,  Greek Bailout May Include Larger Writedowns for Private InvestorsWall St. Cheat Sheet . Enormous, last hour 370+ point upside suckers’ rally into the close based on b***s***, rumour (more ‘good money after bad’ bailout goin’ greek in the eu zone), nothing at all (pushed a button, ran a buy program?) to suck suckers in and keep suckers sucked in based upon as previously questionable if not outright fake, ‘upward-revised’ (based on inflation-spiked price increases at best) data also, ‘the data don’t distinguish between Americans who stop receiving benefits because they find jobs and those who fall off the unemployment rolls because their benefits expire- WSCS THE GREATEST SHOW ON EARTH  September 29, 2011   http://www.etfdigest.com ‘…Algos jumped on the headlines which is what they’re programmed to do. They don’t look under the hood for details since given their momentary focus, “facts don’t matter”—not at least right away. A closer look inside Jobless Claims data is the consistent revisions for higher previous claims. This makes current reports generally seem better by comparison. Further, the BLS states with this report the significant impact of “seasonal factors” skewing the report…’ ) . [  End of Quarter Price Mark-Ups; Dave’s Daily   http://www.thestreet.com/story/11260606/1/end-of-quarter-price-mark-ups-daves-daily.html  Dave Fry  9-27-11 ‘All you need do is view the last week of June 2011, the previous quarter end, and you'll note a similar quarter end jam-job…’ ,  Bernanke calls unemployment a ‘national crisis’   28 Sep 2011 Fed chief Ben Bernanke said Wednesday that the nation’s weak labor market was “a national crisis” - Duh! No-recession-wall-street-lovin’-helicopter ben’s … done it again! … brilliant description of unfortunately what already is thanks in large part to his wall (fraud) street largess / welfare in the form of QE’s, etc. , Prepare for Lehman Brothers Part 2   ,  Arguments for Being in the Crash Camp   Conor Sen Sep 28, 2011  ,  Now's Not the Time to Take on Equity Market Exposure at Minyanville Erik Swarts Sep 28, 2011 ,  [video]Buying on Rumor - Prepare For The Selling On NewsTheStreet.com TV  , Roubini: U.S. in Throes of Economic Contraction Sep 27th, 2011 News (Bloomberg) , SHILLER: House Prices Probably Won’t Hit Bottom For Years Sep 27th, 2011  News (BusinessInsider) , Split opens over Greek bail-out terms Sep 27th, 2011(Financial Times) ,   The familiar fraud/pattern of end-of-month/quarter window dressing b***s*** story of ‘hopes’ (ie., americanized funny-money fraud in the eurozone, etc.) from the frauds on wall street …  Dave’s Daily:’.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..’   , despite the reality of bad news , New home sales hit 6-month low, prices drop , Euro zone damps talk of rapid debt crisis steps , On the Lookout for a Red October Minyanville ‘ … Aside from history, if we take a look at the global environment, there are a handful of things suggesting that we will experience a turbulent October…’  ,    Suckers’ rally into the close to suck suckers in and keep suckers sucked in based on lingering hopes for unaffordably damaging funny money / QE ultimately taxpayer funded / borne bailout / welfare for these fraudulent ‘titans of capitalism’ on wall street, viz., nothing whatsoever ( watch for their fraudulent / illegal end of month/quarter window dressing )  , and bad news (  Soros: US Is Already in Double-Dip Recession CNBC.com  ,   Stocks: Don't Get All Comfortable Just Yet WS /Conway ,  Stocks Endure Worst Five-Day Slamming Since '08, Still On Edge About Greece Forbes , More Pain Is Coming To Equities  http://regator.com/p/253227580/more_pain_is_coming_to_equities  Penguin Capital Markets , David Cameron: world on brink of new economic crisis London Telegraph , Every Age Group Is Getting Poorer In America, Except For One Advisor Perspectives , Global economy pushed to the brink Sep 23rd, 2011 News Financial Times , European and US Economies Teetering on Weak Policy, Leadership Minyanville Kerr , Moody's downgrades 8 Greek banks (AP)  ,   Signs The Perfect Economic Storm Is Coming  http://www.bullfax.com/?q=node-signs-perfect-economic-storm-coming  ,   America’s debt woe is worse than Greece’s Sep 21st, 2011 News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks. Social Security can no longer afford to send us our annual benefit statements. The House can no longer afford its congressional pages. The Pentagon can no longer afford the pension and health care benefits of retired service members. NASA is no longer planning a manned mission to Mars. We’re broke for a reason. We’ve spent six decades accumulating a huge official debt (U.S. Treasury bills and bonds) and vastly larger unofficial debts to pay for Social Security, Medicare, and Medicaid benefits to today’s and tomorrow’s 100 million-plus retirees. The government’s total indebtedness — its fiscal gap — now stands at $211 trillion, by my arithmetic. [source]’  ,  $16 muffins, $8 coffee served in Justice audit , Market Recap: FOMC Announces Operation Twist, Banks Tumble, Investors Flee Sovereign Debt Wall St. Cheat Sheet September 21, 2011, Wall Street sinks 3 percent after Fed cites economic "risks"  NEW YORK (Reuters)  ,   Moody's downgrades big banks on changed policy  ,  Italy downgraded, IMF says Europe behind the curve  Reuters  ,  IMF downgrades outlook for US and Europe economies [Sep 20, 2011] ... Fund has sharply downgraded its outlook for the U.S. economy through 2012 ...  http://finance.yahoo.com/news/IMF-downgrades-outlook-for-US-apf-1240337037.html?x=0 much worse than expected:  Market Recap: S&P Downgrades Italy, Housing Starts Tumble, Markets Wait on funny-money no-recession ben bernanke   Wall St Cheat Sheet ,   IMF Downgrades Global Economic Outlook  ,  Drudgereport: IMF WARNS: INTO THE DANGER ZONE... ...warns of USA 'lost decade'  ,  New High: 37% Say Their Home Is Worth Less Than Remaining Mortgage Payments Rasmussen  ,  30 Signs That The U.S. Economy Is About To Go Into The Toilet The Economic Collapse  ,  A Fed IOER Cut Could Backfire on Banks, Warns Pimco  ,   3 Reasons Markets Were Up As Central Banks Stepped in to Boost Dollar Liquidity in European Banks Wall St. Cheat Sheet Today the Department of Labor announced that consumer prices had climbed twice what economists had predicted in August, while initial jobless claims jumped last week to their highest level since June. The Federal Reserve Bank of New York’s report on manufacturing in the region contracted more than expected in September, while its general economic index dropped to its weakest reading since November 2010, indicating that companies in the region covered by the New York Fed’s manufacturing index are cutting back. The consumer-price report also showed that hourly earnings fell in August in their biggest one-month decline since July 2008, while the cost of energy, food, healthcare, and shelter all rose.‘ ,   David Rosenberg: “It’s Time To Start Calling This For What It Is: A Modern Day Depression” Zero Hedge ,  Geithner: Economy In “An Early Stage” Of Crisis  ,  Flat retail sales keeps U.S. on recession watch ) fraud  / manipulated programmed hft (high frequency trades – see, ie.,  What to Expect Next From the Markets , Dave’s Daily, infra ) and b***s*** alone! [ Stock Market Secret Word of the Day Is 'Delusion' WSJ  ,  watch for fake data / reports out of their sheer desperation  ,  ‘american technology is horrendous and vastly overrated!’ I really mean it; and that’s reality, which speaks volumes about the pathetic state of the world , Minyanville's T3 Daily Recap: Market Squeeze Continues, But Was it a Trap?  By T3Live.com ‘Today's action … another clever ploy to suck in longs while relieving some of the oversold condition of the market’  ,  Don't Trust Wall Street and this Market  ETFguide ,  Congress budget agency warns panel of economic ills  ,  Nearly 1 in 6 Americans in poverty, Census says  ,  Cisco cuts long-term sales growth forecast  ,  International alarm over euro zone crisis grows  ,  Why Can't Wall Street Be Honest With The Public? Forbes  ,  Venture capital veteran Perkins sees danger ahead  , These Wall Street Firms are About to Start Firing People Like Crazy  ,   Same Alan Greenspan Who Warned Against Budget Surplus Now Warns About Deficit  ,  ETF Redemptions Highest Since 2008: Report ETF Trends , 20 Signs Of Imminent Financial Collapse In Europe The Economic Collapse ,  The 2nd Edge Of Modern Financial Repression: Manipulating Inflation Indexes To Steal From Retirees & Public Workers Gold Seek  Lawless America: 20 Examples Of Desperate People Doing Desperate Things The American Dream  ,  Poverty In America: A Special Report The Economic Collapse | America is getting poorer.  How Greece Is Mocking the Rest of the World  [ Well, let’s get real here! There’s plenty to mock in this world, and Greece is hardly the nation to be doing the mocking. I think it’s the markets that are mocking the rest of the world’s stupidity for buying into this false reality / obfuscation / fraud, particularly by way of the now pervasive worldwide acceptance of the american strategy of currency debasement which really is a fraud facilitator because it masks to all but the intelligent few the underlying economic weakness and decline. A simplistic example, though not perfect, is apropos here: a company sells a product for 1 dollar which costs 1 dollar to make (assuming arguendo to cover fixed expenses - no profit). The fed over-printing / creating dollars like mad to the point where it now takes 2 dollars to render the same purchasing power of  1 dollar when the goods were produced. The company sells the products for 2 dollars (the previous equivalent of 1 dollar before debasement). The company is now showing earnings 1 dollar per unit sold, yet in real terms, they’ve gotten no more than the equivalent of that 1 dollar per unit. (If you’ve been to the grocery store lately, particularly the last 1-2 months, I’ve found meats, etc., to be up 50-100%, etc.). The same obfuscating manipulations are applicable to assets generally, and to those pieces of paper called stocks which are even ‘worse for the wear’ since churn-and-earn commissions at lightning computerized speed are being subtracted from this illusory ‘enhanced value’ which in reality doesn’t exist at all. ( Such manipulations from currency translation also provide ‘arbitrage opportunities’ though similarly largely ultimately subtracted from no real value being created. ) This is why fraudulent wall street loves the fed’s QE’s and dollar debasement / over-printing / creating and also why it’s been a dismal failure and a net negative in real economic terms as seen on main street and in the decimation of the middle class and growing ranks of the poor. In the analysis of securities, this would be considered ‘the quality of earnings factor’ that goes into the assignment of a p/e multiple to the projected earnings. Sufficeth to say, this is no longer done on wall street in any real or legitimate fashion, if at all. Indeed, it’s a fair statement to say that security analysis is no longer a ‘practice’ as same was considered, once upon a time, by value investors / analysts. As set forth by Dave and Cooper, infra, computerized programmed manipulation at lightning speed has been expedient in the short run for the wall street frauds but ultimately leads to the inevitable crash since as I often reiterate: Remember, there is no modern day alchemy that spins worthless paper into gold except fraudulently for the frauds on wall street who’ve literally oftimes done exactly that; ‘cashing out’ for hard currency and gold, precious metals, at everyone else’s expense including main street. They’re just not that important and represent, like termites eating away at the nation’s foundation, a drag on the economy, the nation as one would expect from parasites such as they are’. What to Expect Next From the Markets Minyanville  Jeffrey Cooper ‘Conclusion: It looks like a program was run using the least amount of dollars to goose the indices by focusing on some big cap names like Apple, Amazon, Baidu, IBM, and Caterpillar { Apple Hits New High (Update1) [ 9-19-11 This manipulated programmed trade to froth markets is a crash in the making – sell at these ridiculous levels / take profits! },  Dave’s Daily:’.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..’] Simon Maierhofer,September 16, 2011, ‘Webster's dictionary defines gullible as naive and easily duped or cheated'…’    



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Herman Cain denies new harassment allegations, blames Perry camp Candidate pushes back as reports say a third former employee claimed sexually aggressive behavior. (Washington Post) [ Riiiiight … hapless Perry’s the one … Next thing you know we’ll be seeing posters with pregnant girls with the words ‘Perry’s the One’ (I never could quite see the effectiveness of posters of the same ilk with Nixon’s name thereon). Robinson: Let Cain be gone (Washington Post) [ Rarely is it so, but I quite agree with Mr. Robinson; but, now for the disagreement, ‘let wobama the b (for b***s***) also be gone’. Clearly, that’s no endorsement of the remaining candidates. But, the previous cancer alone, as with Mrs. Bachmann’s migraine headaches should preclude their candidacies (at the least, the presidency is a 4 year severe headache; and no, medication is no satisfactory solution since meds consistently over time alter blood/brain chemistry, even in some potentially to the point of homicidal madness; ie., ‘dead man walking war criminal cheney’, etc.. ‘Pizza with palin’, ‘town hall of fame with Bachmann’, trump purports to be at least ‘alcohol free’ (the alleged cause – I don’t think so – of mobster trump’s elder brother’s suicide); but is he ‘med-free’? … there must be something to account for his madness (he’s a psychopath who used to play Hitler speeches for inspiration). Cain’s been defended by anne coulter (those conservative girls really think they’re far more attractive than they really are; maybe relative to other conservative women, there are so few); and, as well, the king of ‘hillbilly heroin’, flushed rush out on a limbaugh (even to the point of deafness – that’s quite a compulsion). Milbank: Herman Cain can do no wrong (Washington Post) [ I sense by implication and then by inference and then deduction that Mr. Milbank is in ‘undercover wobama afficianado’ mode. Hopefully it’s not that he’s implying that ‘wobama the b’ (for b***s***) should be given similar deference and be treated as being able to do no wrong. That would be wrong, of course, because wobama’s done plenty wrong and has the pathetic state of the nation to prove it. Moreover, it would fly in the face of reality since it is eminently clear to all but the blind that wobama is a failed president. Yet, of all things harp on, he mistaken chooses the flat tax upon which to base his criticism of Cain. That precious little thought (particularly regarding consequences / burden) went into the rather arbitrary 9-9-9 formulation, there is no question. But, putting the notion of flat tax out there is of itself a positive thing inasmuch as in terms of timing, there was never a better time in light of defacto bankrupt america’s fiscal failure as I said in these comments some weeks ago. Yet, the notion of and wisdom in such a flat tax does not preclude progressive flat tax that takes account of the economic notion of utility, particularly concerning the greater utility of $1 to, ie., middle class income  relative to upper class income (note I used the terms ‘class’, and as well, ‘income’ (which would include unearned, ie., dividends, interest, etc., as well as earned income). In any event, Mr. Milbank need not worry. Mr. Cain’s prior cancer of itself is a disqualifyer.

 

 

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World leaders to confer with Greece Greece’s plan for referendum worries European leaders who fear country may split from the euro. (Washington Post) [ Sounds like a plan! Goin’ greek. Getting’ ‘greeked’. This is all sooo greecey! Debt plan for Greece to fall hardest on localsThe expected 50 percent write-down in the country’s bonds may wipe out a banking system that invested heavily in the local government. (Washington Post) [ There was never any mystery here; and, as noted upon reflection thereafter, was all about that ‘voluntary’ characterization so as to avoid the inevitable ‘trigger’ for the lucrative overwritten credit default swaps / derivatives which disaster therefrom is in the offing. ,  Be Honest – The European Debt Deal Was Really A Greek Debt Default Posted by : ilene Post date: 10/28/2011 - 2012 looks like it is going to be an extremely painful year. [ Yes! Very painful! I believe Dave was the first ‘to get this’ in passing yesterday; and, thinking on it more, I believe this charade cheered particularly by the frauds on wall street (and surprisingly germany) was for the purpose of ‘voluntary’ to avoid the Credit Default Swap trigger. Yet, the real bad news is that, even worse than as with the last financial debacle, owing to the greed-driven, commission/fee generating churn and earn of innumerable, bogus, worthless, levered, negatively valued on event financial instruments at computerized lightning speed, the commission-generating paper is beyond the frauds’ abilities to account for; and not just the CDS’s ( ETFs have potential to become the next toxic scandal Sep 19th, 2011 News (The Telegraph) Financial Stability Board (FSB), an international super-regulator, wrote a prescient if less than catchily-titled paper “Potential financial stability issues arising from recent trends in Exchange Traded Funds (ETFs)”..warning – ETFs are not the cheap and transparent vehicles the marketers would have us believe ..no one who read the FSB report was surprised to see the words ETF and rogue trader in the same sentence… half of the ETFs in Europe today do not match the index they are designed to track by holding all of its constituent shares.. Derivative trades add a second layer of uncertainty .. the counterparty risk that the organisation on the other side of the contract might go bust. Even worse, the provider of the ETF might sometimes be a part of the same organisation as the derivatives desk carrying out the swap…For reasons which I’m not sure I could explain even if I had the space, it is possible for the number of shares sold short in an ETF to massively exceed the actual number of shares available.’).  Not only is it that The Greek Deal Accomplishes Nothing… Systemic Risk is Coming   http://gainspainscapital.com October 27th, 2011   (Yes! It’s happened again. No … not just the (Weimar) funny money and rally as in the great depression followed by the inevitable bust /crash Parallels to The Great Depression Suggest Higher Prices Followed by a Bust ETFguide Simon Maierhofer, October 25, 2011), but  The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System The Economic Collapse , The REAL $200 TRILLION Problem Bernanke’s Worried About  Phoenix Capital... ‘US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure…’ ; and, finally the coup de gras ,  America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks…The government’s total indebtedness is $211 trillion’, Europe Will Make Lehman Look Like a Joke   http://gainspainscapital.com/?p=1010  Summers 10-28-11 , Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1  ,   http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR

 

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Herman Cains crack-up  The candidate is no longer having fun. (Washington Post) [ Yeah … and you just have to look at his cracked up defenders; the mental cases, viz., limbaugh, coulter, trump, etc.. So what can you expect … other than a man who’s not what he’s ‘cracked up’ to be. Or, wobama in twenty years. Or, a pushy, loud guy, who has gotten by, without anybody really knowing why (like wobama, on b***s*** and ‘special consideration’ alone?). After all, his geopolitical incites / knowledge / ‘strategies’ are not at all encouraging and even make war criminal dumbya bush look like an all-knowing sage; but, to his credit, in terms of absolute effects (making dumbya bush look smart), that’s quite an accomplishment of itself. Herman Cain: Entering Into A Shooting War With Iran Perfectly Alright Steve Watson | Former pizza magnate also unaware China has nukes. [ Goin’ for the jew vote and the israeli amen corner in Washington (astutely as per Buchanan) which invariably has been antithetical to american interests.( israel Considers Pre-Emptive Attack On Iran Nov 2nd, 2011 (SkyNews) israeli Prime Minister benjamin netanayahu is trying to rally support in his cabinet for an attack on Iran, according to government sources. { I think the world must consider and rally support for a pre-emptive attack on war crimes nation, illegal nukes possessor, international law / u.n. resolutions scofflaw israel as a positive, final solution to world strife, particularly in the Mid-East! Such a final solution is long overdue! Their bellicosity, militancy, greed / bloodthirst, and uncivilized / lawless behavior should no longer be tolerated by the global community!} ) He’s such a typical, politico with a typically big mouth. Such as he don’t really care what they say; as long as they’re making noise. That’s his story in a nutshell; jive-talking b***s***! Herman Cain dodges harassment questions as third accuser surfaces CBS News Condon  http://www.cbsnews.com/8301-503544_162-20129049-503544/herman-cain-dodges-harassment-questions-as-third-accuser-surfaces   Drudgereport: POLITICO: Two women accused Cain of inappropriate behavior [ Even a fallen despoiled nation in intractable decline as america can do better than that; ie., wobama v. cain ? (besides, theres that cancer problem, amidst scandals exceeding pubic hairs on soda cans); this is no endorsement of anyone else, a testament to how far america has fallen. Maybe pervasively corrupt, defacto bankrupt america can look to sub-saharan africa for their models of governance.  ITS OVER: Cain Is Done Business Insider | The scandals swirling around Herman Cain today will be fatal to his presidential ambitions.  ] ... ). Robinson: Let Cain be gone (Washington Post) [ Rarely is it so, but I quite agree with Mr. Robinson; but, now for the disagreement, let wobama the b (for b***s***) also be gone. Clearly, thats no endorsement of the remaining candidates. But, the previous cancer alone, as with Mrs. Bachmanns migraine headaches should preclude their candidacies (at the least, the presidency is a 4 year severe headache; and no, medication is no satisfactory solution since meds consistently over time alter blood/brain chemistry, even in some potentially to the point of homicidal madness; ie., dead man walking war criminal cheney, etc.. Pizza with palin, town hall of fame with Bachmann, trump purports to be at least alcohol free (the alleged cause I dont think so of mobster trumps elder brothers suicide); but is he med-free? there must be something to account for his madness (hes a psychopath who used to play Hitler speeches for inspiration). Cains been defended by anne coulter (those conservative girls really think theyre far more attractive than they really are; maybe relative to other conservative women, there are so few); and, as well, the king of hillbilly heroin, flushed rush out on a limbaugh (even to the point of deafness thats quite a compulsion).]

 

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Jon Corzines remarkable descent  MF Global bankruptcy exposes lack of controls (Washington Post) [ No! What it shows is that a lack of prior prosecutions of the biggest now typical frauds on wall street has emboldened such as mf et als to perpetrate  the same old frauds and worse. 

MF Global Client Theft Estimate Doubled To $1.5 Billion?Even as we hear rumblings that the MF fire is spreading, and the associated auditor of the now infamous former Primary Dealer is about to get in serious hot water, the bankrupt company itself continues to dig itself an ever deeper grave. Because according to a just filed motion by the MF Global liquidating trustee, it seems that the gross criminal activity by the company may have been orders of magnitude bigger than anyone has expected. To wit: "As a result of the apparent segregation violations and the suspension of clearing privileges, more than 150,000 customer accounts essentially were frozen on October 31, 2011, of which more than 50,000 accounts were regulated commodities customer accounts. The CME estimates that MFGIs current segregated funds requirement is approximately $5.45 billion. Moreover, the total amount of MFGI customer segregated funds on deposit at the CME is approximately $2.5 billion, and the clearing-level segregated collateral is approximately $1.5 billion or approximately 60 percent of the MFGI customer segregated funds on deposit at the CME." Doing some quick inverse addition and we get a (w)hole of $5.45 less $2.5 less $1.5 or $1.45 billion. In other words, the theft by MF Global was not stealing hundreds of millions from its customers: it has stolen a whopping $1.5 billion! For those confused, this is not a rogue loss of $1.5 billion, something which was enough to send UBS' Kweku to prison. This is outright theft resulting from illegally commingled accounts. Our only question is will $1.5 billion in theft be enough for the first real perp walk of an Obama-friendly Wall Street executive?

Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?Say you are the head back office guy at MF Global, it is the close of trading on Thursday, the firm has already completely drawn down on its revolver, and all the resulting cash in addition to all the firm's cash at your disposal in affiliated bank accounts, up to and including petty cash, has been used to satisfy margin demands due to declining collateral value, yet the collateral calls just won't stop, and impatient voices on the other side of the phone line demand you transfer even more cash over immediately or else risk default proceedings commenced against you within minutes. What do you do? Do you go ahead and tell your superior that the firm is broke even though the co-opted media is trumpeting every 5 minutes that "MF Global is fine", knowing full well you will be immediately fired for being the bearer of bad news, or do you assume that courtesy of your uber-boss being the former head of the Vampire Squid, and thanks to infinite moral hazard which after Lehman made sure nobody would ever fail ever again, that there is simply no way that you will be left without some miraculous rescue, if only you can last one more day, and as a result proceed to "commingle" some client funds with the firm's cash. It turns out that at MF Global you do the latter... over and over... until you have literally stolen hundreds of millions from the firm's client accounts in hopes that the miracle rescue will come on Friday... then over the weekend... and then you realize no miracle is coming, partly because your actions have been exposed, partly because miracles only exist in fairy tales. The next thing you know, your firm is bankrupt and hundreds of clients are about to learn that all their money is gone. Poof. This is not a fictional tale. This is precisely what very likely happened at MF Global in the past 72 hours. And someone has to go to jail. That someone, if indeed this criminal act is proven to have taken place, should be none other than Jon Corzine himself.

 

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Dear Congresswoman Roybal-Allard:

 

Thank you once again for the courtesy extended to me in apprising me of and seeking my input concerning the post office closings. Yet, as previously set forth in response to your query, I’m for any and all cuts in service / facilities of the usps in light of my experience with the usps including the unreliability of same. UPS is reliable and well managed and to see them takeover the usps would be a welcome development since the usps is unreliable and poorly managed as set forth previously, infra. I include previous responses for ease of reference. As previously noted in a prior message to you, I had previously spoken to FBI Agent Bill Lewis in Washington who was recently promoted to the FBI Headquarters Office (D.C.) from the FBI office here in LA, and who was to be out of the office for the two weeks past. I’ll be contacting him given a reasonable time for him to ‘catch up’, from being out of the office. While independent contractor richard coan is ultimately the one to bear the burden of damages (there’s insurance and a surety covering same), coan might allude to the prior default of the u.s. government (assist. u.s. atty. robert i. lester miscounted / miscalculated the time for filing an answer / response to the complaint upon service thereof, also misstating the rule in open court before corrupt judge matz who ‘schmoozed’ things over (they both have the same employer), however incorrectly according to the ‘law’. I ordered / bought a copy of the transcript of that rather pathetic proceeding (posted in part on my website). In any event, regardless who pays me, the amounts so paid would ultimately be recovered from coan, his insurer/surety which amounts might even exceed the amount I’m willing to settle at. [There is also a judgment (referenced in the correspondence to FBI ADIC Martinez infra) that had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted for and which would benefit Los Angeles, etc.; and then, of course as well, the substantial damages. ] I’ve waited far too long for this matter to resolve, what should have been resolved in accordance with clear law long ago;  and, which would have been resolved if not for typical u.s. corruption in the process; and, which is well within the government’s ability to resolve. In my world and way of thinking, results do count! I’ve included prior correspondence for ease of reference.

 

 

Thank You Again.

 

Sincerely,

 

Albert L. Peia

 

 

Post script: In pertinent part (correspondence to FBI ADIC Martinez )regarding two sets of disks waylaid by usps once with delivery confirmation priority mail, and the second priority certified mail: ‘ *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. (Ultimately delivered by UPS) ‘

 

 

 

10-13-11

 

Dear Congresswoman Roybal-Allard:

 

Thank you once again for thinking of me. That I like you should be obvious inasmuch as I would ignore you or would tell you so if I didn’t. I am totally apolitical as a matter of comity on facebook where while posting my website for exposure was ‘tagged’ by friends from high school I’ve known for in excess of 45 years; despite the fact that facebook (the company itself) appears to be politically ‘pro-wobama’. Youtube of nsa’s google fame censors and I don’t use youtube therefore. Yet, make no mistake; ultimately, for me, results count, even if they don’t in Washington and elsewhere throughout the nation, lamentably such as it is. As previously noted infra in a prior message to you, I had previously spoken to FBI Agent Bill Lewis in Washington who was recently promoted to the FBI Headquarters Office (D.C.) from the FBI office here in LA, and who was to be out of the office for the two weeks past. I’ll be contacting him given a reasonable time for him to ‘catch up’, from being out of the office. While independent contractor richard coan is ultimately the one to bear the burden of damages (there’s insurance and a surety covering same), coan might allude to the prior default of the u.s. government (assist. u.s. atty. robert i. lester miscounted / miscalculated the time for filing an answer / response to the complaint upon service thereof, also misstating the rule in open court before corrupt judge matz who ‘schmoozed’ things over (they both have the same employer), however incorrectly according to the ‘law’. I ordered / bought a copy of the transcript of that rather pathetic proceeding (posted in part on my website). In any event, regardless who pays me, the amounts so paid would ultimately be recovered from coan, his insurer/surety which amounts might even exceed the amount I’m willing to settle at. I’ve waited far too long for this matter to resolve, what should have been resolved in accordance with clear law long ago;  and, which would have been resolved if not for typical u.s. corruption in the process; and, which is well within the government’s ability to resolve. In my world and way of thinking, results do count! I’ve included prior correspondence for ease of reference.

 

Sincerely,

 

Al Peia

 

 

 

9-29-11

Dear Congresswoman Roybal-Allard:

 

The following is my response to your email as well as previous responses, comments including my prior comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein and hereinafter:

 

What do you think of the American Jobs Act?

Hide Details

FROM:

TO:

·         [email protected]

Message flagged

Thursday, September 29, 2011 11:33 AM

 

 

Drudgereport: Obama Economists Admit: 'Stimulus' Cost $278,000 per Job...
$200K Per Job? Geithner Says White House Plan Still Bargain … [ Riiiiight! .. In what alternate reality beyond political desperation mode? ] ...

 

Quite simply, at those prices, while somewhat short-term politically expedient, very uneconomic! Don’t forget: America's debt woe is worse than Greece's Sep 21st, 2011 News (CNN) - 'Our government is utterly broke. There are signs everywhere one looks…The government's total indebtedness - its fiscal gap - now stands at $211 trillion' 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse '. #8 The U.S. national debt continues to get worse by the day. Just check out what economics professor Laurence J. Kotlikoff recently told NPR .."If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap" ..' ! ]

 




Details of Obama’s jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for ‘wobama the b’ (for b***s***), the eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Really! He’s a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him … maybe he’s somewhat of an allure as in a freak show. He’s a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as ‘bush failure 3’. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they don’t pressure President Obama because he is loved by black voters.  Obama ‘Takes More Vacations Than Any Human Being I’ve Ever Seen’ Fox News | “Here we have a country that really is going to hell in a handbasket.” Bus Tour Bust: Obama’s Approval Plummets Back Into 30s, Says Gallup CNS News | Obama’s politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ] New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

 

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

 

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 

 ------------

 

From: Rep. Lucille Roybal-Allard
To: [email protected]
Sent: Wednesday, September 28, 2011 11:01 AM
Subject: Responding to your message


Dear Mr. Peia:

Thank you for contacting me about the US Postal Service's (USPS) proposals to reduce costs in the face of ongoing budget deficits. I appreciate hearing your thoughts on this important issue…’

 

                  -----

 

Thank you very much for your response. This is an unattended mailbox. To send a reply to Congresswoman Roybal-Allard, please visit http://roybal-allard.house.gov/Contact/.

-----Original Message-----
From: "albert peia"
Sent: 9/28/2011 10:48:27 PM
To: "CA34HIMA"
Cc:
Subject: Re: Responding to your message

9-28-11

Dear Congresswoman Roybal-Allard:

It is always somewhat reassuring that someone, like yourself in Washington, is committed to finding solutions to the myriad of problems confronting the nation; some insurmountable [ America's debt woe is worse than Greece's Sep 21st, 2011 News (CNN) - 'Our government is utterly broke. There are signs everywhere one looks. The government's total indebtedness - its fiscal gap - now stands at $211 trillion' 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse '. #8 The U.S. national debt continues to get worse by the day. Just check out what economics professor Laurence J. Kotlikoff recently told NPR .."If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap" ..' ! , Soros: US Is Already in Double-Dip Recession CNBC.com , the unprosecuted frauds on wall street . Dave's Daily:'.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..' End of Quarter Price Mark-Ups; Dave's Daily http://www.thestreet.com/story/11260606/1/end-of-quarter-price-mark-ups-daves-daily.html Dave Fry 9-27-11 'All you need do is view the last week of June 2011, the previous quarter end, and you'll note a similar quarter end jam-job.' , Roubini: U.S. in Throes of Economic Contraction Sep 27th, 2011 News (Bloomberg) , SHILLER: House Prices Probably Won't Hit Bottom For Years Sep 27th, 2011 News (BusinessInsider) , etc. ] , confronting the nation. Yet it's somewhat difficult to imagine that pension plans, particularly of the defined benefit variety as opposed to the more fiscally conservative defined contribution type, anywhere in america are over-funded in light of overly optimistic 'assumptions' for returns on said funds (ie., Drudgereport: STUDY: State, local gov'ts must raise taxes $1,400 a year for 30 years to fund pensions...
Chicago county faces $108 billion gap in pensions....
TREASURY RAIDS PENSIONS...
Treasury to tap pensions to fund government (Washington Post) ].

On September 22, 2011 I spoke with FBI Agent Bill Lewis in Washington who was recently promoted to the FBI Headquarters Office (D.C.) from the FBI office here in LA, and with whom I had discussed the matters of which you are aware; and which matters are well within Washington's ability to easily resolve what should have been resolved in accordance with clear law quite some time ago. It is difficult to imagine the u.s. government solving the gargantuan, nation-destructive problems confronting the nation when through typical corruption, meaningful lawlessness, lack of will, etc., have chosen not to solve my matter as related to you in accordance with clear law and which would clearly be the right thing to do at long last.
Previously I wrote to thank you for thinking of me and for the courtesy extended. However, in all honesty, with rare exceptions (ie., maybe 'post-cards'?, etc.), I don't use the usps that I've found so unreliable. The following is my comment to an LA Times article regarding a Justice Department cover-up and as pertains to the usps! As I've previously related to you, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

U.S. Postal Service nearing bankruptcy as email asserts its dominance [Good! Let UPS take them over . the usps is totally unreliable]

Drudgereport: BROKE: POST OFFICE SYSTEM MAY SHUT DOWN ENTIRELY THIS WINTER... [Good! Let UPS take them over . the usps is totally unreliable]
Postal Service warns it could default.[ No surprise here .. the usps is totally unreliable! ] ...
Post Office proposes cutting 120,000 jobs, pulling out of healthcare plan .[ Let UPS take over the usps! ]...



Unions angry over Postal Service cuts They said any move to break labor contracts to lay off 120,000 would hurt the already ailing movement. (Washington Post) [ I reiterate my call for the well managed, efficient, and reliable company, UPS to take over the operation of the poorly managed, inefficient, and unreliable USPS. Postal Service seekin! g 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think it's a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable:
October 15, 2010 (*see infra {ultimately delivered by UPS})
----------

*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 c! ould 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. (Ultimately delivered by UPS) ]



The following includes the context relating to the foregoing:




Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go . the retaliation . the long awaited payback (quid pro quo -th! e no pros- witheld) for long overdue pervasively corrupt, defacto bankrupt u.s. downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities. SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:
The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:
ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

I believe him!

I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You'll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. - real cash cow for gov't ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu: Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]



Here's some! real, complicit cover-up / fraud on the part of the federal government, et als:

October 15, 2010 (*see infra {ultimately delivered by UPS})


Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700
Los Angeles, CA 90024


Dear Sir:

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer's browser) as per your office's request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I've installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named '112208opocoan'). The (civil) RICO action (as you're aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and at! torney fees, as an incentive for private prosecution of said claims pr obably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).


Th! e document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [ ricosummarytoFBIunderpenaltyofperjury.pdf http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf ].


The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as fbicorrespondencereyes.htm . With regard to the calls to the FBI's LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meetin! g and his location was not disclosed to me upon inquiry). The matter w as assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did - he served 12 years in prison, aggravated assault/manslaughter? - and no, there is no Chinese wall of separation - Andrew Maloney's the one that prosecuted gotti).


In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the RICO VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case, inter alia,



* A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted ! for and which could be used for payment to creditors, Los Angeles, etc..
* Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
* The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan's failure to file anything whatsoever by the court's deadline causing creditors and me substantial damages: [ Shiff Order of Dismissal With Prejudice on Coan's Failure to File Page 1 Page 2 ]
* Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District o! f Connecticut, who denied Coan's requested relief as to Coan but precl uded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [ transcript in pertinent part - http://albertpeia/crossexamofcoanbypeia.pdf ]
* Newly appointed judge, Maryanne Trump Barry, Donald Trump's sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.

* Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long Beach, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney's Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent ! corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule 'don't ask, don't tell'.



There is applicable ins! urance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.


Sincerely,


Albert L. Peia
611 E. 5th Street, #404
Los Angeles, CA 90013
(213) 219-**** (cell phone)
(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their 'fix' so cell phone best for contact).{recent change 323-786-6651 -magic jack}


----------

*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 w! ith 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. (Ultimately delivered by UPS) ]


http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf  http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm  Cases against Wall Street lag despite Holder's vows to target financial fraud WP Obama has promised to hold Wall Street accountable for the meltdown. America Is a Failed State Because It Won't Prosecute Financial Crime Washington's Blog / the grim economic reality [ http://albertpeia.com/grimreality.htm
CRIME STATS(u.s.No.1)
RankCountriesAmount
# 1United States :11,877,218
# 2United Kingdom :6,523,706
# 3Germany :6,507,394



UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE... 'ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder's vows to target financial fraud WP | Obama has promised to hold Wall Street accountable for the meltdown.

THE OBAMA DECEPTION' http://albertpeia.com/obamadeceptionhighqualityversion.flv


http://www.albertpeia.com

http://www.albertpeia.com/todayspage.htm

http://albertpeia.com/fbimartinezcongallard.htm

Sincerely and Regards,

Al Peia

Thank you for sending me your email

 

9-29-11

Dear Congresswoman Roybal-Allard:

 

The following is my response to your email as well as previous responses, comments including my prior comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein and hereinafter:

 

What do you think of the American Jobs Act?

Hide Details

FROM:

TO:

·         [email protected]

Message flagged

Thursday, September 29, 2011 11:33 AM

 

 

Drudgereport: Obama Economists Admit: 'Stimulus' Cost $278,000 per Job...
$200K Per Job? Geithner Says White House Plan Still Bargain … [ Riiiiight! .. In what alternate reality beyond political desperation mode? ] ...

 

Quite simply, at those prices, while somewhat short-term politically expedient, very uneconomic! Don’t forget: America's debt woe is worse than Greece's Sep 21st, 2011 News (CNN) - 'Our government is utterly broke. There are signs everywhere one looks…The government's total indebtedness - its fiscal gap - now stands at $211 trillion' 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse '. #8 The U.S. national debt continues to get worse by the day. Just check out what economics professor Laurence J. Kotlikoff recently told NPR .."If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap" ..' ! ]


Details of Obama’s jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for ‘wobama the b’ (for b***s***), the eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Really! He’s a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him … maybe he’s somewhat of an allure as in a freak show. He’s a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as ‘bush failure 3’. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they don’t pressure President Obama because he is loved by black voters.  Obama ‘Takes More Vacations Than Any Human Being I’ve Ever Seen’ Fox News | “Here we have a country that really is going to hell in a handbasket.” Bus Tour Bust: Obama’s Approval Plummets Back Into 30s, Says Gallup CNS News | Obama’s politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ] New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

 

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

 

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 

 

 ------------

 

From: Rep. Lucille Roybal-Allard
To: [email protected]
Sent: Wednesday, September 28, 2011 11:01 AM
Subject: Responding to your message


Dear Mr. Peia:

Thank you for contacting me about the US Postal Service's (USPS) proposals to reduce costs in the face of ongoing budget deficits. I appreciate hearing your thoughts on this important issue…’

 

                  -----

 

Thank you very much for your response. This is an unattended mailbox. To send a reply to Congresswoman Roybal-Allard, please visit http://roybal-allard.house.gov/Contact/.

-----Original Message-----
From: "albert peia"
Sent: 9/28/2011 10:48:27 PM
To: "CA34HIMA"
Cc:
Subject: Re: Responding to your message

9-28-11

Dear Congresswoman Roybal-Allard:

It is always somewhat reassuring that someone, like yourself in Washington, is committed to finding solutions to the myriad of problems confronting the nation; some insurmountable [ America's debt woe is worse than Greece's Sep 21st, 2011 News (CNN) - 'Our government is utterly broke. There are signs everywhere one looks. The government's total indebtedness - its fiscal gap - now stands at $211 trillion' 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse '. #8 The U.S. national debt continues to get worse by the day. Just check out what economics professor Laurence J. Kotlikoff recently told NPR .."If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That's the fiscal gap" ..' ! , Soros: US Is Already in Double-Dip Recession CNBC.com , the unprosecuted frauds on wall street . Dave's Daily:'.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..' End of Quarter Price Mark-Ups; Dave's Daily http://www.thestreet.com/story/11260606/1/end-of-quarter-price-mark-ups-daves-daily.html Dave Fry 9-27-11 'All you need do is view the last week of June 2011, the previous quarter end, and you'll note a similar quarter end jam-job.' , Roubini: U.S. in Throes of Economic Contraction Sep 27th, 2011 News (Bloomberg) , SHILLER: House Prices Probably Won't Hit Bottom For Years Sep 27th, 2011 News (BusinessInsider) , etc. ] , confronting the nation. Yet it's somewhat difficult to imagine that pension plans, particularly of the defined benefit variety as opposed to the more fiscally conservative defined contribution type, anywhere in america are over-funded in light of overly optimistic 'assumptions' for returns on said funds (ie., Drudgereport: STUDY: State, local gov'ts must raise taxes $1,400 a year for 30 years to fund pensions...
Chicago county faces $108 billion gap in pensions....
TREASURY RAIDS PENSIONS...
Treasury to tap pensions to fund government (Washington Post) ].

On September 22, 2011 I spoke with FBI Agent Bill Lewis in Washington who was recently promoted to the FBI Headquarters Office (D.C.) from the FBI office here in LA, and with whom I had discussed the matters of which you are aware; and which matters are well within Washington's ability to easily resolve what should have been resolved in accordance with clear law quite some time ago. It is difficult to imagine the u.s. government solving the gargantuan, nation-destructive problems confronting the nation when through typical corruption, meaningful lawlessness, lack of will, etc., have chosen not to solve my matter as related to you in accordance with clear law and which would clearly be the right thing to do at long last.
Previously I wrote to thank you for thinking of me and for the courtesy extended. However, in all honesty, with rare exceptions (ie., maybe 'post-cards'?, etc.), I don't use the usps that I've found so unreliable. The following is my comment to an LA Times article regarding a Justice Department cover-up and as pertains to the usps! As I've previously related to you, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

U.S. Postal Service nearing bankruptcy as email asserts its dominance [Good! Let UPS take them over . the usps is totally unreliable]

Drudgereport: BROKE: POST OFFICE SYSTEM MAY SHUT DOWN ENTIRELY THIS WINTER... [Good! Let UPS take them over . the usps is totally unreliable]
Postal Service warns it could default.[ No surprise here .. the usps is totally unreliable! ] ...
Post Office proposes cutting 120,000 jobs, pulling out of healthcare plan .[ Let UPS take over the usps! ]...



Unions angry over Postal Service cuts They said any move to break labor contracts to lay off 120,000 would hurt the already ailing movement. (Washington Post) [ I reiterate my call for the well managed, efficient, and reliable company, UPS to take over the operation of the poorly managed, inefficient, and unreliable USPS. Postal Service seekin! g 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think it's a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable:
October 15, 2010 (*see infra {ultimately delivered by UPS})
----------

*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 c! ould not locate same). This cover letter (9-13-10) is on the 3 disks w ith 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. (Ultimately delivered by UPS) ]


The following includes the context relating to the foregoing:


Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go . the retaliation . the long awaited payback (quid pro quo -th! e no pros- witheld) for long overdue pervasively corrupt, defacto bankrupt u.s. downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities. SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:
The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:
ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

I believe him!

I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You'll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. - real cash cow for gov't ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu: Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]



Here's some! real, complicit cover-up / fraud on the part of the federal government, et als:

October 15, 2010 (*see infra {ultimately delivered by UPS})


Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700
Los Angeles, CA 90024


Dear Sir:

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer's browser) as per your office's request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I've installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named '112208opocoan'). The (civil) RICO action (as you're aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and at! torney fees, as an incentive for private prosecution of said claims pr obably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).


Th! e document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages) [ ricosummarytoFBIunderpenaltyofperjury.pdf http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf ].


The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as fbicorrespondencereyes.htm . With regard to the calls to the FBI's LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meetin! g and his location was not disclosed to me upon inquiry). The matter w as assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did - he served 12 years in prison, aggravated assault/manslaughter? - and no, there is no Chinese wall of separation - Andrew Maloney's the one that prosecuted gotti).


In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the RICO VERIFIED COMPLAINT (see infra). Such includes and as set forth in the case, inter alia,



* A judgment had been entered in my favor in the case, United States District Court Case #3:93cv02065(AWT)(USDCJ Alvin Thompson), worth approximately now in excess of $300,000 remains unaccounted ! for and which could be used for payment to creditors, Los Angeles, etc..
* Counsel Robert Sullivan on my behalf documented by way of certification upon investigation that Alan Shiff, USBCJ, had falsely stated a dismissal upon which false statement he predicated a retaliatory and spurious contempt proceeding against me causing substantial damage, and for which he sought Judicial Notice of those and related proceedings as did I in some of my filings.
* The Order of Dismissal With Prejudice by Alan Shiff, USBCJ, owing to Defendant Coan's failure to file anything whatsoever by the court's deadline causing creditors and me substantial damages: [ Shiff Order of Dismissal With Prejudice on Coan's Failure to File Page 1 Page 2 ]
* Defendant Coan had filed an action against me to prevent me from suing him which necessitated me to fly to Connecticut for a hearing before The Honorable Robert N. Chatigny, Chief Judge, USDC, District o! f Connecticut, who denied Coan's requested relief as to Coan but precl uded my action against Shiff (although there is no immunity, judicial or otherwise, for criminal acts, ie., fraud connected with a case under Title 11, USC, etc.) . [ transcript in pertinent part - http://albertpeia/crossexamofcoanbypeia.pdf ]
* Newly appointed judge, Maryanne Trump Barry, Donald Trump's sister, was assigned the RICO case despite the conflict of interest in light of hundreds of thousands of dollars of illegal (drug) money being laundered through the Trump casinos by the RICO defendants, and despite my motion to recuse her which motion she heard herself and denied, and U.S. Trustee Hugh Leonard with whom I met personally refused to join or file a separate motion to recuse and not long thereafter left said office for private practice at Cole, Shotz, et als on retainer with the RICO defendants as his primary client.

* Probative and evidentiary documents, affidavits, exhibits, including those turned over to FBI Agent Jeff Hayes in Long B! each, CA, had been given to Assistant U.S. Attorney Jonathan Lacey with whom I met personally at the U.S. Attorney's Office in Newark, N.J., at which time Samuel Alito was U.S. Attorney, and went over said documents and their probative value with him. Within approximately a month thereafter upon inquiry I was told that Jonathon Lacey was no longer with the office, that the file/documents could not be located, and that there was no further information available concerning contacting him or his location. I thereupon delivered by hand, copies of said documents to the office of then U.S. Attorney Alito, addressed to him, with assurance they would go directly to him. In addition to being inept [ I looked in on the one mob case he had brought, bungled, lost (accidently on purpose?) since I was suing some mob-connected under RICO and the court (I had known / previously met outside of court the judge Ackerman through a client) was absolute bedlam and a total joke since incompetent ! corrupt Alito brought in all 20 mob defendants (rather than prosecute one or a few to flip them first) who feigning illness had beds/cots in the courtroom along with their moans during testimony and had the jury in stitches. As much as I hate the mob, it truly was funny, if not so tragic.], Alito is also corrupt (and maybe corrupt because he is inept). After a reasonable (but still rather short) time I called to determine the status and was told that Alito was no longer with the Office of the U.S. Attorney, that he was (appointed) a federal judge, and that neither the documents nor any file or record of same could be located. Alito did parley the same / cover-up into quid pro quo direct lifetime appointment to the Court of Appeals, 3rd circuit, despite the absence of judicial experience or successful tenure as U.S. Attorney (Maryanne Trump Barry as well). This is the same Sam Alito that now sits on the purported highest court in the land. The real application of the illegal rule 'don't ask, don't tell'.



There is applicable ins! urance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.


Sincerely,


Albert L. Peia
611 E. 5th Street, #404
Los Angeles, CA 90013
(213) 219-**** (cell phone)
(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their 'fix' so cell phone best for contact).{recent change 323-786-6651 -magic jack}


----------

*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 w! ith navigable hyperlinks to the subject files for ease of reference, i ncluding 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. (Ultimately delivered by UPS) ]


http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm Cases against Wall Street lag despite Holder's vows to target financial fraud WP Obama has promised to hold Wall Street accountable for the meltdown. America Is a Failed State Because It Won't Prosecute Financial Crime Washington's Blog / the grim economic reality [ http://albertpeia.com/grimreality.htm
CRIME STATS(u.s.No.1)
RankCountriesAmount
# 1United States :11,877,218
# 2United Kingdom :6,523,706
# 3Germany :6,507,394


UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE... 'ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder's vows to target financial fraud WP | Obama has promised to hold Wall Street accountable for the meltdown.

THE OBAMA DECEPTION' http://albertpeia.com/obamadeceptionhighqualityversion.flv


http://www.albertpeia.com

http://www.albertpeia.com/todayspage.htm

http://albertpeia.com/fbimartinezcongallard.htm

Sincerely and Regards,

Al Peia

 

Thank you for sending me your email.

 

 

                                                                                                                                                                                       9-28-11

Dear Congresswoman Roybal-Allard:

It is always somewhat reassuring that someone, like yourself in Washington, is committed to finding solutions to the myriad of problems confronting the nation; some insurmountable [ America’s debt woe is worse than Greece’s Sep 21st, 2011 News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks… The government’s total indebtedness — its fiscal gap — now stands at $211 trillion’  8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse ‘…  #8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR….“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap” ..’   ,    Soros: US Is Already in Double-Dip Recession CNBC.com  , the unprosecuted frauds on wall street …  Dave’s Daily:’.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..’ End of Quarter Price Mark-Ups; Dave’s Daily   http://www.thestreet.com/story/11260606/1/end-of-quarter-price-mark-ups-daves-daily.html  Dave Fry  9-27-11 ‘All you need do is view the last week of June 2011, the previous quarter end, and you'll note a similar quarter end jam-job…’  , Roubini: U.S. in Throes of Economic Contraction Sep 27th, 2011 News (Bloomberg) , SHILLER: House Prices Probably Won’t Hit Bottom For Years Sep 27th, 2011  News (BusinessInsider) , etc. ] , confronting the nation. Yet it’s somewhat difficult to imagine that pension plans, particularly of the defined benefit variety as opposed to the more fiscally conservative defined contribution type, anywhere in america are over-funded in light of overly optimistic ‘assumptions’ for returns on said funds (ie., Drudgereport: STUDY: State, local gov'ts must raise taxes $1,400 a year for 30 years to fund pensions...
Chicago county faces $108 billion gap in pensions....
TREASURY RAIDS PENSIONS...
Treasury to tap pensions to fund government (Washington Post) ]. 

On September 22, 2011 I spoke with FBI Agent Bill Lewis in Washington who was recently promoted to the FBI Headquarters Office (D.C.) from the FBI office here in LA, and with whom I had discussed the matters of which you are aware; and which matters are well within Washington’s ability to easily resolve what should have been resolved in accordance with clear law quite some time ago. It is difficult to imagine the u.s. government solving the gargantuan, nation-destructive problems confronting the nation when through typical corruption, meaningful lawlessness, lack of will, etc., have chosen not to solve my matter as related to you in accordance with clear law and which would clearly be the right thing to do at long last.  

Previously I wrote to thank you for thinking of me and for the courtesy extended. However, in all honesty, with rare exceptions (ie., maybe ‘post-cards’?, etc.), I don’t use the usps that I’ve found so unreliable. The following is my comment to an LA Times article regarding a Justice Department cover-up and as pertains to the usps! As I’ve previously related to you, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

 

U.S. Postal Service nearing bankruptcy as email asserts its dominance [Good! Let UPS take them over … the usps is totally unreliable]

Drudgereport: BROKE: POST OFFICE SYSTEM MAY SHUT DOWN ENTIRELY THIS WINTER... [Good! Let UPS take them over … the usps is totally unreliable]
Postal Service warns it could default…[ No surprise here .. the usps is totally unreliable! ] ...
Post Office proposes cutting 120,000 jobs, pulling out of healthcare plan …[ Let UPS take over the usps! ]...


Unions angry over Postal Service cuts They said any move to break labor contracts to lay off 120,000 would hurt the already ailing movement. (Washington Post) [ I reiterate my call for the well managed, efficient, and reliable company, UPS to take over the operation of the poorly managed, inefficient, and unreliable USPS. Postal Service seeking 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think it’s a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable: 
October 15, 2010 (*see infra {ultimately delivered by UPS})

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

The following includes the context relating to the foregoing:

Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go … the retaliation … the long awaited payback (quid pro quo -the no pros- witheld) for long overdue pervasively corrupt, defacto bankrupt u.s. downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities.  SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!

 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Here’s some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

http://www.albertpeia.com/todayspage.htm  


http://albertpeia.com/fbimartinezcongallard.htm  

 

Sincerely and Regards,

 

Al Peia

 

 

Thank you for sending me your email.(10-21-11)

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm  

 

 

 

Krauthammer: Why Abbas went to the U.N. (Washington Post) [ Maybe Mr. Krauthammer should just ask him why Im sure hed get an earful of sound reasons. Then again, maybe Mr. Krauthammer might not be listening; after all, as a jewish man himself, hed certainly find himself within the exceedingly small minority of jewish people who would (listen certainly not the israeli lobby nor capital hill which the perspicacious Pat Buchanan has correctly observed as being occupied israeli territory). Yet, somewhere along Mr. Krauthammers timeline / history he conveniently but not surprisingly forgets what was already decided, yet never lived up to. After all (once again), if military-oriented warring states as israel are through aggression permitted to retain by superior military power the benefits of war, there would be no end to war; as in israels case, it would always pay to go to war. No one could rationally support such an irrational and untenable position. Hence: UN Resolutions 242 and 338  http://reut-institute.org/Publication.aspx?PublicationId=541  (I used the Reut Institute, an israeli organization, reference so as to preclude any accusation of anti-israeli bias).  This term refers to UN Security Council Resolutions that lay the foundation for the Israeli-Palestinian political process, based on territorial compromise and a solution to the problem of Palestinian refugees.

Definition

The term UN Resolutions 242 and 338 refers to two resolutions approved by the UN Security Council. Resolution 242 was approved after the 1967 war (11/67) while Resolution 338 was approved during the 1973 war (10/73).

Background

UN Resolutions 242 and 338 call for the peaceful resolution of the Arab-Israeli conflict through territorial compromise. The acceptance of the Resolutions by Arab elements indicates their recognition of Israel.

The political process between Israel and the Arabs - including the 1978 Camp David Accords between Israel and Egypt (9/78), the Israel-Egypt Peace Treaty (3/79), the Madrid Conference (10/91), the Peace Treaty between Israel and Jordan (10/94), and the structure of the Israeli-Palestinian peace process since 9/93 - is founded on these Resolutions.

Content of Resolutions

The main articles of UN Security Council Resolution 242 (11/67) call for:

Resolution 338 (10/73) reiterates the importance of Resolution 242, and calls upon the sides to begin negotiations with the aim of achieving a just and durable peace.

Interpretations

The interpretation of the resolutions is the object of political and legal controversy primarily regarding two points:

Extent of Israeli withdrawal - The first article of Resolution 242 is an object of controversy because of differences in wording between the English and the French versions of the text. The English version talks about Israeli withdrawal "from territories...", while the French version talks about Israeli withdrawal "from the territories" (des territories...). Thus, the addition of the word "the" in the French version implies that Israel is required to withdraw from all the occupied territories.

Solution to the refugee problem - UN Resolution 242 talks about a "just settlement" to the refugee problem without addressing the specific solution that appears in UN General Assembly resolution 194. Arab countries, as well as others, interpret Resolution 194 as the basis for the "right of return" of Palestinian refugees1. Hence, they argue that Resolution 194 is the interpretation of a "just settlement" that appears in Resolution 242. However, because Resolution 242 does not specifically mention 194, Israel does not interpret it as harboring the "right of return" and therefore sees it as a possible basis for the solution to the refugee problem.

 

 

Some more history:

The Balfour Declaration of 1917 http://en.wikipedia.org/wiki/Balfour_Declaration_of_1917#cite_note-1 (dated 2 November 1917) was a letter from the British Foreign Secretary Arthur James Balfour to Baron Rothschild (Walter Rothschild, 2nd Baron Rothschild), a leader of the British Jewish community, for transmission to the Zionist Federation of Great Britain and Ireland.

His Majesty's government view with favour the establishment in Palestine of a national home for the Jewish people, and will use their best endeavours to facilitate the achievement of this object, it being clearly understood that nothing shall be done which may prejudice the civil and religious rights of existing non-Jewish communities in Palestine, or the rights and political status enjoyed by Jews in any other country."[1]

The statement was issued through the efforts of Chaim Weizmann and Nahum Sokolow, the principal Zionist leaders based in London; as they had asked for the reconstitution of Palestine as the Jewish national home, the declaration fell short of Zionist expectations.[2]

 

[Yeahthose zionist expectations can really be a bi**ch / deal-breakers when searching for peaceful resolutions! ]

 

As a former Doctor of Psychiatry, I’m sure Mr. Krauthammer might appreciate the last portion of this comment, infra: Abbas announces U.N. member bid Move appears to seal fate of U.S. efforts to broker a deal to resume Israeli-Palestinian talks. (Washington Post) [ U.S. (israeli) efforts? Resume infinite talks? Is this some parallel universe they’re operating in? Let’s apply the Einstein definition to such a preposterous position promulgated by the u.s. / israelis: ‘Insanity is doing the same thing over and over again and expecting different results.’ Time for action regarding this long overdue independent statehood which should be ‘fate accomplis’! U.N. showdown could test U.S. role in Mideast One week before a United Nations vote over Palestinian statehood, the Obama administration is confronting the stark new limits of its influence. (Washington Post) [  What role? As israel’s mouthpiece? War, war, and more war? Death, destruction, and self-defeat including defacto bankruptcy for the u.s.? Fomenting anti-american sentiment? What role? The role the israeli lobby says is appropriate for america? How foolish america has been! Anxieties mount over Palestinian statehood bid (WP) [ And anxieties mount over no statehood bid! What gives here! Only ‘yesterday’ (not long ago), hillary clinton was talking about the need for and appropriateness of same. Has the israeli lobby, so costly and detrimental to american interests here and abroad, given her and hers a ‘talking to’? . U.S. vetoes Security Council resolution denouncing Israeli settlements (WP) [ Drudgereport: Hillary Clinton: Israeli Settlements 'Illegitimate'… [We know that hill … We’ve known that for quite some time along with their illegal nukes, war crimes, etc…The whole world knows that so don’t just talk about it,DO SOMETHING!]..pervasively corrupt, defacto america’s self-defeating,self-destructive way U.S. vetoes Security Council resolution denouncing Israeli settlements Sounds like a plan!..for self-destruction! ] Israel's fear (WP)[Wake up! Illegal nuke totin’, war crimes nation israel’s fears-p l e a s e, spare me the pro-israeli b*** s*** ! What israel fears is a projection of their own ill-founded motives/actions for which all norms, rules, laws governing civilized behavior are suspended for expedience at the least, and blood-thirst that some posit as a remnant of their historic role as Christ-killers(with roman ‘juice’).  Isn’t it time, in these desperate times for america, to put u.s., not israel’s interests, first.Who cares what israel fears!In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation of a Jewish state in Palestine, warned that, even though failure to go along with the Zionists might cost President Truman the states of New York, Pennsylvania, and California, it was about time that somebody should pay some consideration to whether we might not lose the United States!     Israel wary of transition in Egypt, concerned about regional stability (Washington Post) [ Who cares what the paranoid, war criminal, illegal nuke totin’, war criminal israelis are wary of. This country has gone down the tubes cow-towing to the paranoid, self-interested concerns of the psycho / sociopathic zionist israelis who are forever projecting their own pathological motives to every turn of history while ignoring their own culpability in producing the very outcomes they purportedly seek to avoid. War, conflict, greed, bloodshed is the historically based israeli way. ]   A resurgent Syria alarms u.s., israel (Washington Post) [  Tell me! What doesn’t alarm these two paranoid, zionist neo-nazi regimes of oppression, suppression, aggression, and regression. If they were individuals, they’d undoubtedly be diagnosed as psychopaths, sociopaths totally ignorant of the rights of others, laws, civilized behavior as israel pads her illegal nuke arsenals with american supplied weaponry / support while expecting all other nations to ‘role over and die’. Bipolar / manic / depressive, the ups and downs are increasingly difficult for even americans to follow. Obsessive / compulsive thy names are zionist israel / america. Projection / displacement regarding their own illegal acts, war crimes, etc.; what they distinguished from what they do … dissociative identity disorder, (dissociative) psychogenic fugue? Yes … the u.s. and israel are the world’s lunatics, sorely in need of therapy! ]  Syria's fresh interference in Lebanon and its increasingly sophisticated weapons shipments to Hezbollah have alarm officials and prompt Israel's military to consider striking a Syrian weapons depot.
Editorial: Russia and China’s cowardly vetoes (Washington Post) [ How sad … for the editorial board of this newspaper … While there may have been a time when such an observation might have been appropriate, that certainly isn’t so today; nor has it been otherwise so for quite some time. After all, what nation is invading other nations; killing, pillaging, and plundering for the sake of alignment with a regime for which propaganda has displaced even basic historic truths in covering their trail of warring destruction; ie., the coup d’etat / JFK assassination leaving the military industrial complex to their own (self-perpetuating) devices (more conflict / war for bigger budgets / corporate welfare) as warned against by the great though substantially underrated President General Eisenhower. I also must say that there’s been a curious ‘coincidence’ to ‘censor’ of my comments relating the militance of israel and that american faction so detrimental to this nation and the world to the point that complaints about same have been futile and no longer made by me. With the longevity of newspapers already (and quite recently) predictably diminished (obsolescence, agendas, censor, etc.), one would have ‘expected something more’ in terms of the right thing, the honorable thing to do on the way out. Russia, China block Syria resolution They cast a rare double veto on the U.N. Security Council to block a draft resolution condemning Syria for its crackdown. (Washington Post) [ Yes; and even rarer was the rationality that went into such a double veto vote. After all, you don’t see the oppressive, repressive ‘nation state’ (? … family owned? … what’s up with that?) Saudi Arabia treated like Syria. Drugereport: Clashes in Saudi Arabia leave 14 wounded...
Police open fire on civilians... [But this is ok because saudi arabia’s a doormat for israeli/u.s. interests]

Obama rejects Palestinians U.N. bid  While rejecting bid for statehood, president delivers clear statement of support for Israel in speech  (Washington Post) [ Will the real wobama the b (for b***s***) please stand up wobamas john kerry today and gone tomorrow all sides of all issues while standing for nothing at all that talk with netanayahoo they really must have plenty on wobama and yet to be exposed if no co-wop with israel ( even beyond whats already known and not public as it should be THE OBAMA DECEPTION  http://albertpeia.com/obamadeceptionhighqualityversion.flv   ) the republicans, wobama, and democrats are just falling all over one another to please israel, albeit from an elevation no greater than their knees. How totally pathetic they are! How myopic! How totally unprincipled! How self-defeating! How self-destructive! No small wonder pervasively corrupt, defacto bankrupt americas irreparably broken! Americas debt woe is worse than Greeces Sep 21st, 2011 News (CNN) Our government is utterly broke. There are signs everywhere one looks. Social Security can no longer afford to send us our annual benefit statements. The House can no longer afford its congressional pages. The Pentagon can no longer afford the pension and health care benefits of retired service members. NASA is no longer planning a manned mission to Mars. Were broke for a reason. Weve spent six decades accumulating a huge official debt (U.S. Treasury bills and bonds) and vastly larger unofficial debts to pay for Social Security, Medicare, and Medicaid benefits to todays and tomorrows 100 million-plus retirees. The governments total indebtedness its fiscal gap now stands at $211 trillion, by my arithmetic. [source]     Drudgereport: Obama re-affirms desire for Palestinian state...  

Palestinian move hits Dem vote base; Republicans woo Jewish electorate...
Israel Floats 'Interim Solution' To Palestinian Statehood Debate [ Half measures will not do! Too much time, resources have been wasted! Time for the final solution’… the choices: peaceful or non-peaceful; rational or irrational; reasonable or unreasonable! There has been nothing to have changed the reasonable expectations created by secretary of state clinton and wobama herselves in espousing this administrations unequivocal position in support of Palestinian statehood! ] ...

REPORT: SOLYNDRA execs to plead Fifth...
HOUSE TO PROBE OBAMA ACTIONS ON GOV'T LOAN...
Second witness says White House tried to steer testimony...

Abbas announces U.N. member bid Move appears to seal fate of U.S. efforts to broker a deal to resume Israeli-Palestinian talks. (Washington Post) [ U.S. (israeli) efforts? Resume infinite talks? Is this some parallel universe theyre operating in? Lets apply the Einstein definition to such a preposterous position promulgated by the u.s. / israelis: Insanity is doing the same thing over and over again and expecting different results. Time for action regarding this long overdue independent statehood which should be fate accomplis! U.N. showdown could test U.S. role in Mideast One week before a United Nations vote over Palestinian statehood, the Obama administration is confronting the stark new limits of its influence. (Washington Post) [  What role? As israels mouthpiece? War, war, and more war? Death, destruction, and self-defeat including defacto bankruptcy for the u.s.? Fomenting anti-american sentiment? What role? The role the israeli lobby says is appropriate for america? How foolish america has been! Anxieties mount over Palestinian statehood bid (WP) [ And anxieties mount over no statehood bid! What gives here! Only yesterday (not long ago), hillary clinton was talking about the need for and appropriateness of same. Has the israeli lobby, so costly and detrimental to american interests here and abroad, given her and hers a talking to? . U.S. vetoes Security Council resolution denouncing Israeli settlements (WP) [ Drudgereport: Hillary Clinton: Israeli Settlements 'Illegitimate' [We know that hill Weve known that for quite some time along with their illegal nukes, war crimes, etcThe whole world knows that so dont just talk about it,DO SOMETHING!]..pervasively corrupt, defacto americas self-defeating,self-destructive way U.S. vetoes Security Council resolution denouncing Israeli settlements Sounds like a plan!..for self-destruction! ] Israel's fear (WP)[Wake up! Illegal nuke totin, war crimes nation israels fears-p l e a s e, spare me the pro-israeli b*** s*** ! What israel fears is a projection of their own ill-founded motives/actions for which all norms, rules, laws governing civilized behavior are suspended for expedience at the least, and blood-thirst that some posit as a remnant of their historic role as Christ-killers(with roman juice).  Isnt it time, in these desperate times for america, to put u.s., not israels interests, first. Who cares what israel fears!  In 1948, U.S. Secretary of Defense James Forrestal, an opponent of the creation of a Jewish state in Palestine, warned that, even though failure to go along with the Zionists might cost President Truman the states of New York, Pennsylvania, and California, it was about time that somebody should pay some consideration to whether we might not lose the United States!    




U.S. first unsure of Irans role in plot Officials acknowledge the case bore few of the hallmarks of a unit that has trained and equipped militants around the world. (Washington Post) [ Bore? Yes bore, as in this story a total bore, created by the boars who bore responsiblility for the last nation-bankrupting, nation- destroying war Will U.S. Exploit Dubious Terror Case and Attack Iran? Kurt Nimmo | Another case of a clueless patsy entrapped by the U.S. government. TIMING? U.S. busts two Iranians today over terror plot Obama was briefed about in June... { U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! Thats as likely as wmds in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, theyd literally say anything; even to the point of paying anyone to say anything yellow cake anyone? (Bush and Iraq: Follow the Yellow Cake Road Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWL8TndC ...the White House defense, having now admitted a falsehood in President Bush's claim, in his State of the Union address, that Iraq had tried to buy uranium in Africa. Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWKsd9dp ] }
Drudgereport:
WAR DRUMS: IRAN CALLS 'TERROR PLOT' LIE
Saudis say Iran must 'pay the price'...

Hillary: 'Dangerous escalation'...
Iran accused in a plot to kill Saudi envoy U.S. allegations elements of the Iranian government plotted to assassinate the Saudi ambassador to Washington aggravated tense relationship between the United States and the Islamic Republic. (Washington Post) [ Drudgereport: TIMING? U.S. busts two Iranians today over terror plot Obama was briefed about in June... { U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! Thats as likely as wmds in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, theyd literally say anything; even to the point of paying anyone to say anything yellow cake anyone? (Bush and Iraq: Follow the Yellow Cake Road Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWL8TndC ...the White House defense, having now admitted a falsehood in President Bush's claim, in his State of the Union address, that Iraq had tried to buy uranium in Africa. Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWKsd9dp ]  Then, of course, theres the ongoing contrived attempt to split the Arab / Islamic world; and no, these uprisings, including those against Syria, are no coincidence; and, theres the contrived maintain budgets factor for theirs (ie., cia, israel, etc.) and the military industrial complex sake. Id say they have an inferiority complex; along with a panoply of other serious psychological disorders as elsewhere mentioned on my website.}
Holder ends press conference after questions on Fast and Furious...
Subpoenas for Atty Gen imminent...
Belafonte: Herman Cain 'is bad apple'...

Cain Fires Back: 'I Left Democrat (for the Republican) Plantation Long Time Ago'...
Afghanistan shuts down graft probe...

Not a single Christian church left in country...
AL-QAEDA QUESTIONS LEGALITY OF KILLING U.S. CITIZEN

 

 

[Yeahthose zionist expectations can really be a bi**ch / deal-breakers when searching for peaceful resolutions! ]

 


Obama goes on attack, to Democrats delight New strategy is rooted in the reality that Obama is 13 months from Election Day. A poll shows that only 58 percent of Dems believe he will be reelected. (Washington Post) [ Only? There
s no surprise here 100% of the blacks among other minorities; and interestingly, though only for purposes of the poll, perennial, nominal democrats of the jewish faith who ultimately vote along jewish lobby lines vis-à-vis mideast politics / events / occupations, etc.. Indeed, one must laugh at the professed israeli love for bush who is of a family of historic pro-nazi sympathies and business / support (even charged/prosecuted not really, this is america .. that arbitrary enforcement of the law thing aka corruption assets seized - for same). Thats what the republicans and democrats are both fallin all over each other and shootin for; shootin themselves in the foot thereby, and bringing the nation down as they do so. The perma wars, the no-pros of the major frauds on wall street ( Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown. ), and a racist orientation to the doj  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims ' )   led by a now known liar (dont forget, theyre prosecuting a baseball player, Roger Clemens,  for at most no more than what holders done himself) Drudgereport: GOP calls for special counsel to investigate Holder... Developing...
WHEN DID HE KNOW?
Holder changes story about ATF gun-running op...
'Either Incompetent' or 'Misleading Congress' [How bout both! hes typical!]...

White House screams, swears at reporter for covering scandal...

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holders vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Wont Prosecute Financial Crime  Washingtons Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION
  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

'Buchanans charges of a Bush-Nazi past are hard to ignore, largely because of his passion as a true-believer and an effective series of articles in a highly independent New England publication. His enthusiasm for getting at the truth of all this has been further emboldened by Loftus, who has suggested that Prescott Bush should have been tried for treason, because they continued to support Hitler after the U.S. entered the war. Loftus, who describes himself as a former prosecutor with the U.S. Justice Departments Nazi-hunting unit, has added the reassurance that he could have made the case.Treasury and Justice department files, including what was then the Office of Alien Property, declassified as recently as September, do indeed show that the U. S. government acted to seize numerous assets held by Harriman affiliated companies. After the war, Buchanan has written, a total of 18 additional Brown Brothers Harriman and UBC-related [Union Banking Corporation] client assets were seized under the Trading With the Enemy Act, which Franklin D. Roosevelt signed right after Pearl Harbor.' http://hnn.us/articles/1811.html

Google search: About 94,700 results (0.20 seconds) (from page 1 of many regarding bush nazis)

 

Rubin: How about OWS’s anti-Semitism? (Washington Post) [ When I first saw this headline I thought, zionist robert rubin’s retort; then expected a reference to failed secretary of treasury as he was, Hank Paulsen, a ‘Christian Scientist’. From the consequences of his disastrous reign and bailouts of the perpetrators of history’s largest frauds by far (bush’s base, ie., that 1%, etc.), to the detriment of the 99%, the rest of this nation, and the world; with no prosecutions, adding insult (to intelligence, etc.) to irrevocable injury, one might have though paulsen to have literally been a scientist of Christianity wherein he studied the effects of imposing (not vows of but real) poverty upon the Christian populace. While numbers can manipulated, and there are those stereotypes of greed, unscrupulous money hunger, ‘shylocks’, etc., ( I invite attention to the very worthy, well produced, documented video ‘Esoteric Agenda’ http://www.albertpeia.com/esotericagenda.flv  which discusses the rothchild banking cabal ), it’s really difficult to dismiss entirely the hugely disproportionate representation among the frauds on wall street {many unprosecuted courtesy of ‘goldman sachs’, etc., clout). Then again, one can’t really say ‘anti-semitic’ because the reference does not pertain to Arabs who are also Semites. It’s analogous to my own dilemma regarding the disportionate deleterious effect of corrupt jewish federal judges (ie., shiff, matz, etc.), trustees (panel, ie., coan), etc., relative to that of the corrupt Christian judges (ie., trump, hall, etc.), and trustee (ie., martini, leonard, etc.), and of the original RICO defendants (italian dogs, etc.) who payed their bribes through, ie., trump casinos, etc., and even directly, ie., private ‘retention’ of hugh leonard, u.s. trustee, and of all things, with (cia favored) illegal drug money at that. } So, while not totally logical, one might say in broader strokes given limited resources, not irrational either. After all, in my own experience, jews have favored jews over non-jews as myself, despite being contrary to facts and law. But, as well, Italian dogs as, ie., alito, etc. (and, God knows I loved and respected my Grandmother who was 100% Italian, and Grandfather, Como, Italy but of ancestral Greek origins) (yet I consider those seaside heights greeks dogs too!) , seem to have favored italian mobsters over me (I hate the mob!), which quid pro quo seems to have worked out well for alito and german trump. http://www.albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf   and   http://albertpeia.com/fbimartinezcongallard.htm     ]

 

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm  
 

 

Lewis: What would MLK say to Obama?  (Washington Post) [ He’d say not color of skin, but that ‘content of character thing’ should at least start at the DOJ under fellow black Holder. I mean, who would take them seriously if it didn’t!  UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '.    White House turns attention to blacks Focus comes amid a growing concern that economic conditions might hamper black voter turnout. (Washington Post) [ As if we couldn’t see that coming. Yet, the ‘make-work, make-shift’ jobs already extant in the federal, state, local ‘public service’ sectors along with the otherwise unemployable at, ie., the u.s. postal service, etc., are uneconomic and overly costly (Drudgereport: Obama Economists Admit: 'Stimulus' Cost $278,000 per Job... ) at best and downright wasteful at worst, the latter being the most prevalent scenario. Moreover, despite the rhetoric, blacks will always ‘back the black’. No criteria. No analysis. ‘Back the black’ their despoiling cry. I think wobama and holder are probably more concerned with making sure the ‘black panthers’ are in full force at the polls to intimidate white voters, which racism they’ve given ‘carte blanche’, protection from prosecution … UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '. With wobama et als, the jive-talking b***s*** never ends!     Robinson: King’s dream remains unrealized  (Washington Post) [ Yeah! That ‘content of their character’ thing’s a b***ch to live up to … just don’t measure up! What’s a white person to do, especially when black atty. General Holder with Obama’s tacit approval is racist himself (themselves)  UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '. Drudgereport: 'Mob' beatings at WI state fair...
'Hundreds of young black people beating white people'... [ Typical…  ]
Fairgoers 'pulled out of cars'...
'They were just going after white people'...
Heightened security...

[ .. (the following incident is my personal experience: black perps, white victims).. while walking through Military Park (a sliver of a park - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DAs position with both felonies ( he went to prison pled out ). The other case I wrote about here ( This was included on my website in the Psychology forum discussion of bystander effect / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparently had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp (a police officer here in California was the object of intense criticism for having used a flashlight to subdue a criminal after a long chase so I included that here) . The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal went to jail (where they belong). The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so. I was also mugged by 4 blacks and 2 hispanics in an incident here in Los Angeles, CA. But, to be fair and balanced, the RICO litigation involves those uncivilized who consider themselves whites http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf  (predominantly but not exclusively jews / romans-italians / mobsters / government slugs). ]  N.Y. bumped from foreclosure panel Iowas attorney general says N.Y. official actively worked to undermine groups efforts in foreclosure negotiation with banks. (Washington Post) [ Yeah! No surprise here! Yet new jerseys representative would have been equally disingenuous in corruptly carry out his / her duties, so doody-full are they, from there!  Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic lawyer) is one of those typically with a pre or post arrangement, whether implicit or explicit; you know, that ubiquitous bribe thing in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by italians in the new york d.a.s office over the objection of the FBI, and were promptly dispatched/assassinated / hit by mafia / organized crime [ this was documented with authority in the book Goombata: The Improbable Rise and Fall of John Gotti and His Gang Cummings / Volkman  ] Krauthammer: Obamas scapegoat strategy (Washington Post) [ Well, I dont know Manichaean; a bit too deeply philosophical for my mind. But I do know b***s*** when I hear it, see it; and, with wobama the b (for b***s***), b***s*** is the one thing thats in no short supply; indeed, those shovel ready jobs he campaigned on were from the looks of all reality, solely for the purpose of shoveling wobamas neverending b***s***. Obama's Legacy: A Failed Recovery & Double-Dip Recession  Forbes / Mariotti  ‘…There will be no significant recovery in the United States of America while Barack Obama is President.  The evidence is overwhelming:  everything Obama has tried to fuel a recovery (with his Democratic allies in Congress) has failed.  Statistics claiming jobs saved by the stimulus package were mostly fiction, and cost American taxpayers about $275,000 each.  Nearly 2-1/2 million fewer Americans have jobs than before the stimulus. Barack Obama has been President for 30 months2-1/2 years. He spent the first year obsessed with passing Obamacare, a program that doesnt create jobs, but might destroy a lot of them.  He bailed out GM, but many believe that his interference didnt save GM; it merely cost taxpayers an extra $15-20 billion, and stole from legitimate investors to buy off the UAW.  His broken campaign promises are too numerous to list.  At some point, his statute of limitations on blaming Bush runs out…’  U.S. first unsure of Irans role in plot Officials acknowledge the case bore few of the hallmarks of a unit that has trained and equipped militants around the world. (Washington Post) [ Bore? Yes bore, as in this story a total bore, created by the boars who bore responsiblility for the last nation-bankrupting, nation- destroying war Will U.S. Exploit Dubious Terror Case and Attack Iran? Kurt Nimmo | Another case of a clueless patsy entrapped by the U.S. government. TIMING? U.S. busts two Iranians today over terror plot Obama was briefed about in June... { U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! Thats as likely as wmds in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, theyd literally say anything; even to the point of paying anyone to say anything yellow cake anyone? (Bush and Iraq: Follow the Yellow Cake Road Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWL8TndC ...the White House defense, having now admitted a falsehood in President Bush's claim, in his State of the Union address, that Iraq had tried to buy uranium in Africa. Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWKsd9dp ] }
Drudgereport:
WAR DRUMS: IRAN CALLS 'TERROR PLOT' LIE
Saudis say Iran must 'pay the price'...

Hillary: 'Dangerous escalation'...
Iran accused in a plot to kill Saudi envoy U.S. allegations elements of the Iranian government plotted to assassinate the Saudi ambassador to Washington aggravated tense relationship between the United States and the Islamic Republic. (Washington Post) [ Drudgereport: TIMING? U.S. busts two Iranians today over terror plot Obama was briefed about in June... { U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! Thats as likely as wmds in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, theyd literally say anything; even to the point of paying anyone to say anything yellow cake anyone? (Bush and Iraq: Follow the Yellow Cake Road Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWL8TndC ...the White House defense, having now admitted a falsehood in President Bush's claim, in his State of the Union address, that Iraq had tried to buy uranium in Africa. Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWKsd9dp ]  Then, of course, theres the ongoing contrived attempt to split the Arab / Islamic world; and no, these uprisings, including those against Syria, are no coincidence; and, theres the contrived maintain budgets factor for theirs (ie., cia, israel, etc.) and the military industrial complex sake. Id say they have an inferiority complex; along with a panoply of other serious psychological disorders as elsewhere mentioned on my website.}
Holder ends press conference after questions on Fast and Furious...
Subpoenas for Atty Gen imminent...
Belafonte: Herman Cain 'is bad apple'...

Cain Fires Back: 'I Left Democrat (for the Republican) Plantation Long Time Ago'...
Afghanistan shuts down graft probe...

Not a single Christian church left in country...
AL-QAEDA QUESTIONS LEGALITY OF KILLING U.S. CITIZEN

 

Details of Obama’s jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for ‘wobama the b’ (for b***s***), the eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Really! He’s a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him … maybe he’s somewhat of an allure as in a freak show. He’s a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as ‘bush failure 3’. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they don’t pressure President Obama because he is loved by black voters.  Obama ‘Takes More Vacations Than Any Human Being I’ve Ever Seen’ Fox News | “Here we have a country that really is going to hell in a handbasket.” Bus Tour Bust: Obama’s Approval Plummets Back Into 30s, Says Gallup CNS News | Obama’s politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ]New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

 

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

 

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

 

 

 

[Yeahthose zionist expectations can really be a bi**ch / deal-breakers when searching for peaceful resolutions! ]

 


Obama goes on attack, to Democrats delight New strategy is rooted in the reality that Obama is 13 months from Election Day. A poll shows that only 58 percent of Dems believe he will be reelected. (Washington Post) [ Only? There
s no surprise here 100% of the blacks among other minorities; and interestingly, though only for purposes of the poll, perennial, nominal democrats of the jewish faith who ultimately vote along jewish lobby lines vis-à-vis mideast politics / events / occupations, etc.. Indeed, one must laugh at the professed israeli love for bush who is of a family of historic pro-nazi sympathies and business / support (even charged/prosecuted not really, this is america .. that arbitrary enforcement of the law thing aka corruption assets seized - for same). Thats what the republicans and democrats are both fallin all over each other and shootin for; shootin themselves in the foot thereby, and bringing the nation down as they do so. The perma wars, the no-pros of the major frauds on wall street ( Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown. ), and a racist orientation to the doj  ( UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims ' )   led by a now known liar (dont forget, theyre prosecuting a baseball player, Roger Clemens,  for at most no more than what holders done himself) Drudgereport: GOP calls for special counsel to investigate Holder... Developing...
WHEN DID HE KNOW?
Holder changes story about ATF gun-running op...
'Either Incompetent' or 'Misleading Congress' [How bout both! hes typical!]...

White House screams, swears at reporter for covering scandal...

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holders vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Wont Prosecute Financial Crime  Washingtons Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION
  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm  
 




 

Obama can’t win  NATO’s success in Libya proves that no good Obama .. goes unpunished. (Washington Post) [ Yeah! I think he’s correct, using most of his words: Obama can’t win  NATO’s success in Libya proves that no good Obama .. goes unpunished. I mean come on, with ie., war crimes nation israel and despotic saudi arabia unscathed; not to mention the defacto bankruptcy of all members of the ‘nato alliance’ and america’s particularly among their war crimes, who’s kidding whom? Yes, it’s true … obama / nato can’t win while they’re unequivocally losing!  Saying otherwise no longer means it’s true!  Poll puts Obama in dead heat with 4 GOP contenders (Washington Post) [ Wow! … I don’t know about that … seems hard to reconcile that poll with wobama’s record low approval ratings consonant with wobama’s record low performance consonant with the nation’s record low prospects in large part owing to wobama’s non-performance by deviating from campaign promises; and hence, his consequent consummate performance as ‘bush failure 3’. Milbank: GOP’s losing obsession with health care (Washington Post) [ No … it’s Mr. Milbank’s losing obsession with loser ‘wobama the b’ (for b***s***), that’s the real story here. Drudgereport: 10-5-11 POLL: OBAMA 41% ANY REPUBLICAN 47%...
Opposition grows, hardens...
JOBS: ZERO...
BROKE: POST OFFICE SYSTEM MAY SHUT DOWN ENTIRELY THIS WINTER... [Good! Let UPS take them over … the usps is totally unreliable]
AMERICA FALLS TO 5TH PLACE...
46.2 million Americans are now poor...
22% of children in poverty...
Dramatic drop in median income...
Likely to worsen...
POVERTY SOARS
SETS NEW RECORD
  Wall Street Puppet Obama Sympathizes With Anti-Wall Street Protests Steve Watson & Paul Joseph Watson | Claims Government has not gone after banksters because … [ More wobama b***s*** for the multi-trillion dollar fraud, still extant, etc.. Of course, as a total fraud himself, no small wonder that as per wobama’s fraudulent playbook the blatant wall street frauds are not, by him, considered fraud. Remember those ‘shovel ready’ jobs promised last (but eternal) campaign by wobama? Well, just those required to shovel his infinite b***s***. Then those fightin’ words from ‘the great prevaricator’ … (to GOP) unite behind his jobs bill or get ready to be run "out of town" … shows his disconnect with reality and proclivity for rhetoric / b***s*** since it’s he who should and will be ‘run out of town on a rail’. He’s so pathetic! What a total loser! Who’s foolish enough to even listen to this total b***s*** artist wobama? ] OWS Needs to Target Real Enemies Or Face Irrelevancy` Kurt Nimmo | Real enemies are the Bilderbergers, CFR, the Trilateral Commission, and the Federal Reserve — not lowly Wall Street stock brokers. [ This is quite incorrect! I’m not saying don’t target the Bilderbergers, CFR, the Trilateral Commission, and the Federal Reserve, etc.; but, for the most part, they are ‘frauds fait accomplis’, as ie., in accordance with the adgage ‘behind every fortune, a crime’ (subject to very few exceptions, ie., ‘the late, great Steve Jobs’ (bill gates is not among those exceptions). They (Alex Jones, et als) ignore, owing to their lack of ‘real world experience’, organized crime of its ‘various flavors’, ethnicities, even cabals / niches within government. The fact is and remains, as with politics (O’Neil), all crime is ultimately local. You must always prosecute the proximate crime causing the proximate harm without fail (nominal crimes as, ie., marijuana possession, should take a back seat to distribution, ie., cia, cartels, bribery, etc., given limited resources, budgetary constraints. After all, given the u.s. government’s involvement in the distribution aspects of the illegal drug business, ie., cocaine, etc., cia, etc., possession/use falls into the nebulous realm of civic / patriotic duty?). Only by so doing will you ultimately get those higher up on the criminal food chain who are ‘protected’ by layers of corrupt bureaucracy as is pervasive in american government / society, federal, state, and local. ]Don’t Let Obama Campaign Fronts Infiltrate OWS – Occupy The Fed Paul Joseph Watson | Join Alex Jones to strike a crushing blow against the true financial oligarchy. [ This is sound advice. Already part of the problem, they’ll just leverage that to squeeze campaign financing from the criminals (bribes, etc.) then leave OWS hanging (the quid pro quo)].  Unions angry over Postal Service cuts They said any move to break labor contracts to lay off 120,000 would hurt the already ailing movement. (Washington Post) [ I reiterate my call for the well managed, efficient, and reliable company, UPS to take over the operation of the poorly managed, inefficient, and unreliable USPS. Postal Service seeking 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think it’s a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable: 
October 15, 2010 (*see infra {ultimately delivered by UPS})

                       ----------

 

*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. (Ultimately delivered by UPS) ]Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go … the retaliation … the long awaited payback (quid pro quo witheld) for long overdue downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities. 3 Top Crooks Still Roaming Free After the Economic Crash Wall St. Cheat Sheet The global economy and stock markets took a nose dive in 2008. But that hasn’t stopped some of the biggest masterminds from escaping a day of luxury…’ The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  SEC accused of destroying files Former agency official says SEC violated federal law by destroying records of enforcement cases in which it decided not to file charges. (Washington Post) [ Duh, ya think? The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!     SEC destroyed documents, senator says 17 Aug 2011 ‘The Securities and Exchange Commission may have destroyed documents and compromised enforcement case ...   Grassley: Agency may have got rid of Goldman, Madoff documents   Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) — The Securities and Exchange Commission may have destroyed documents and compromised enforcement cases involving activity at large banks and hedge funds during the height of the financial crisis in 2008, according to allegations made by a lawmaker on Wednesday. “From what I’ve seen, it looks as if the SEC might have sanctioned some level of case-related document destruction,” said Sen. Chuck Grassley, Republican of Iowa, in a letter to the agency’s chairman, Mary Schapiro. Sen. Chuck Grassley  “It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law.” Agency staff “destroyed over 9,000 files” related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch. The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past year’s work. Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. GS +0.33%   trading in American International Group credit-default swaps in 2009. Flynn also alleged that the agency destroyed documents and information collected for preliminary investigations at Wells Fargo & Co. WFC +1.34% , Bank of America Corp. BAC +0.81% , Citigroup C +0.13%  , Credit Suisse CS +0.38%  , Deutsche Bank DB +0.79%  Morgan Stanley MS -0.06%  and the now-bankrupt Lehman Brothers. The letter goes into particular detail about Deutsche Bank, the former employer of current SEC enforcement chief Robert Khuzami as well as former enforcement chiefs Gary Lynch and Richard Walker…’ Sen. Chuck Grassley  “It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic – lawyer) is one of those typically with a ‘pre or post’ arrangement, whether implicit or explicit; you know, that ubiquitous ‘bribe thing’ in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by ‘italians’ in the new york d.a.’s office over the objection of the FBI, and were promptly ‘dispatched’/assassinated / hit by mafia / organized crime [ this was documented with authority in the book ‘Goombata: The Improbable Rise and Fall of John Gotti and His Gang’ Cummings / Volkman  ] Train Reading: The Stock Market Is Insane The Wall Street Journal ,   Welcome To The New Bear Market For Stocks  Forbes / Suttmeier ,  Dow/Gold Ratio Lowest Since 1987 Crash   Forbes /  Adrian Ash  ,   Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner , Oversight board faults Deloitte audits Deloitte & Touche took the word of companies it audited instead of properly performing its watchdog function, an oversight report says. (Washington Post) [ Come on! Let’s talk reality! ASOP! American Standard Operating Procedure! The quid pro quo for the ‘fee’. The bribe! From politics to business, particularly on fraudulent wall street, this is now the failure-prone / failure-guaranteed, pervasively corrupt, defacto bankrupt ‘american way’! Accounting Gimmics Resurface as Growth Flounders at TheStreet ‘Rebekah Smith, director of financial advisory services at accounting and consulting firm GBQ consulting, says accounting tricks and schemes are likely to start unraveling as we head into 2012 and the lag effect catches up. "The typical accounting fraud goes on for about 18 to 26 months before it is uncovered. The frauds that took place in 2009 are not going to surface until later in 2011 or into 2012." ‘   The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is (Criminally) Insane The Wall Street Journal  , This is an especially great opportunity to sell / take profits because there’s much worse to come! Watch for more fake reports / data in their infinite political desperation both here and across the sea! The REAL $200 TRILLION Problem Bernanke’s Worried About  Phoenix Capital... ‘US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure…’  ,  Tech Leading Market Lower The Wall Street Journal  ,  Banks closed in Fla, Ga, Ill; 2011 total is 68   ,   No Recession Coming ... It's Already Here  Previous:8-18-11 Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says    Crimes Wrecked The Markets    ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed ‘A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    Famed economist predicts economic calamity in 2012. See the evidence.Newsmax http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com)   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC.com  Can President Obama hold on to African American voters in 2012? Cadre of allies is snapping back at critics in the black community and making appeals for racial loyalty.  (Washington Post) [ Appeals for racial loyalty? What’s up with that? Sounds like black racism! How ‘bout some reality in the form of foreboding from Pat Buchanan! MSNBC Yet Again Implies Criticism of Obama Is Racist Paul Joseph Watson | General Electric-owned (49%) network is earning its federal bailout money. [Yet, it’s holder / wobama who’re the racists … Robinson: King’s dream remains unrealized  (Washington Post) [ Yeah! That ‘content of their character’ thing’s a b***ch to live up to … just don’t measure up! What’s a white person to do, especially when black atty. General Holder with fellow black Obama’s tacit approval is racist himself (themselves)  UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '. Drudgereport: 'Mob' beatings at WI state fair...
'Hundreds of young black people beating white people'... [ Typical…  ]
Fairgoers 'pulled out of cars'...
'They were just going after white people'...
Heightened security...

[ .. (the following incident is my personal experience: black perps, white victims).. while walking through Military Park (a sliver of a park - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DAs position with both felonies ( he went to prison pled out ). The other case I wrote about here ( This was included on my website in the Psychology forum discussion of bystander effect / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparently had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp (a police officer here in California was the object of intense criticism for having used a flashlight to subdue a criminal after a long chase so I included that here) . The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal went to jail (where they belong). The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so. I was also mugged by 4 blacks and 2 hispanics in an incident here in Los Angeles, CA. But, to be fair and balanced, the RICO litigation involves those uncivilized who consider themselves whites http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf  (predominantly but not exclusively jews / romans-italians / mobsters / government slugs). ]

Outrage over exotic-game release in Ohio; most are hunted down, killed Private collectors actively trade in such animals all over the U.S. in a vibrant and poorly regulated market. (Washington Post) [The scope of my comment pertains to the Cats only. How could anyone put the attenuated potential harm of americans ahead of literally the lives of these magnificent, exotic Cats. Even more pathetic was jack hanna’s defense of the slaughter. He should be boycotted in any and all of his endeavors, themepark / zoos,  and his abc show from which he should be fired. http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holders vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Wont Prosecute Financial Crime  Washingtons Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION
  http://albertpeia.com/obamadeceptionhighqualityversion.flv      ] 

BOOK WARNS OF END... BOOK WARNS OF END
Fri Oct 14 2011 07:00:25 ET

**Exclusive**

"As the faith that gave birth to the West is dying in the West, peoples of European descent from the steppes of Russia to the coast of California have begun to die out, as the Third World treks north to claim the estate. The last decade provided corroborating if not conclusive proof that we are in the Indian Summer of our civilization."

So begins Pat Buchanan in his hardcore work, SUICIDE OF A SUPERPOWER.

"Will America Survive to 2025?"

Buchanan, set for maximum controversy, launches all rockets at introduction "Disintegrating Nation" -- and does not let up for 400-plus pages.

"America is disintegrating. The centrifugal forces pulling us apart are growing inexorably. What unites us is dissolving. And this is true of Western Civilization....Meanwhile, the state is failing in its most fundamental duties. It is no longer able to defend our borders, balance our budgets, or win our wars."

The books reads as if its been written to be left behind in the ruins, only to be found by a future civilization.

SUICIDE ranked #2,668 on AMAZON's hit parade early Friday. It streets on Tuesday.

Now only the DRUDGE REPORT can offer a look inside.



Chapter 1: The Passing of a Superpower

“We have accepted today the existence in perpetuity of a permanent underclass of scores of millions who cannot cope and must be carried by society -- fed, clothed, housed, tutored, medicated at taxpayer’s expense their entire lives. We have a dependent nation the size of Spain in our independent America. We have a new division in our country, those who pay a double or triple fare, and those who ride forever free.”

Chapter 2. The End of Christian America

If [Christopher] Dawson is correct, the drive to de-Christianize America, to purge Christianity from the public square, public schools and public life, will prove culturally and socially suicidal for the nation.

“The last consequence of a dying Christianity is a dying people. Not one post-Christian nation has a birth rate sufficient to keep it alive....The death of European Christianity means the disappearance of the European tribe, a prospect visible in the demographic statistics of every Western nation.”

Chapter 3. The Crisis of Catholicism

“Half a century on, the disaster is manifest. The robust and confident Church of 1958 no longer exists. Catholic colleges and universities remain Catholic in name only. Parochial schools and high schools are closing as rapidly as they opened in the 1950s. The numbers of nuns, priests and seminarians have fallen dramatically. Mass attendance is a third of what it was. From the former Speaker of the House to the Vice President, Catholic politicians openly support abortion on demand.”

“How can Notre Dame credibly teach that all innocent life is sacred, and then honor a president committed to ensuring that a woman’s right to end the life of her innocent child remains sacrosanct?”

Chapter 4. The End of White America

“[W]hite America is an endangered species. By 2020, whites over 65 will out-number those 17 and under. Deaths will exceed births. The white population will begin to shrink and, should present birth rates persist, slowly disappear.”

“Mexico is moving north. Ethnically, linguistically and culturally, the verdict of 1848 is being over-turned. Will this Mexican nation within a nation advance the goals of the Constitution -- to “insure domestic tranquility” and ‘make us a more perfect union’? Or have we imperiled our union?” (Page 134)

Chapter 5. Demographic Winter

“Peoples of European descent are not only in a relative but a real decline. They are aging, dying, disappearing. This is the existential crisis of the West.” (Page 166)

“Not any Iranian weapon of mass destruction but demography is the existential crisis Israel faces....By mid-century...Palestinians west of the Jordan river will out-number Jews 2-1. Add Palestinians in Jordan, it is 3-1.”

“In a startling development of history, Russia’s population has fallen from 148 million in 1991 to 140 million today and is projected to plunge to 116 million by 2050, a loss of 32 million Russians in six decades.”

Chapter 6. Equality Vs. Freedom

“Those who would change society begin by changing the meaning of words. At Howard University, LBJ changed the meaning of equality from the attainable -- an end to segregation and a legislated equality of rights for African-Americans -- to the impossible: a socialist utopia.”

“Where equality is enthroned, freedom is extinguished. The rise of the egalitarian society means the death of the free society.”

“A time for truth. As most kids do not have the athletic ability to play high school sports, or the musical ability to play in the band, or the verbal ability to excel in debate, not every child has the academic ability to do high school work. No two children are created equal, not even identical twins. The family is the incubator of inequality and God its author.”

Chapter 7. The Diversity Cult

“The non-Europeanization of America is heartening news of an almost transcendental quality,” Wattenberg trilled.4 Yet, one wonders: What kind of man looks with transcendental joy to a day when the people among whom he was raised have become a minority in a nation where the majority rules?”

“Historians will look back in stupor at 20th and 21st century Americans who believed the magnificent republic they inherited would be enriched by bringing in scores of millions from the failed states of the Third World.”

Chapter 8: The Triumph Of Tribalism

America’s war of revenge against Japan was a race war. Newsreels, movies, magazines, comic books, headlines treated “Japs” as a repulsive race whose extermination would benefit mankind....Only well after the war was over was it re-branded a war to bring the blessings of democracy to...Japan.

We may deny the existence of ethnonationalism, detest it, condemn it. But this creator and destroyer of empires and nations is a force infinitely more powerful than globalism, for it engages the heart. Men will die for it. Religion, race, culture and tribe are the four horsemen of the coming apocalypse.

Chapter 9. ‘The White Party’

“Through its support of mass immigration, its paralysis in power to prevent 12-20 million illegal aliens from entering and staying, its failure to address the “anchor-baby” issue, the Republican Party has birthed a new electorate that will send it the way of the Whigs.”

Chapter 10: The Long Retreat

“We borrow from Europe to defend Europe. We borrow from the Gulf states to defend the Gulf states. We borrow from Japan to defend Japan. Is it not a symptom of senility to be borrowing from the world so we can defend the world?”

“Are vital U.S. interests more imperiled by what happens in Iraq where were have 50,000 troops, or Afghanistan where we have 100,000, or South Korea where we have 28,000 -- or by what is happening on our border with Mexico?...What does it profit America if we save Anbar and lose Arizona?” …’

 

SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!


 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Heres some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computers browser) as per your offices request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which Ive installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named 112208opocoan). The (civil) RICO action (as youre aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBIs LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did he served 12 years in prison, aggravated assault/manslaughter? and no, there is no Chinese wall of separation Andrew Maloneys the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their fix so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holders vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Wont Prosecute Financial Crime  Washingtons Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION
  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

 

 

Sincerely and Regards,

 

Al Peia

 

 

 

43,454,601,693,238 Reasons Why The World Is Broke – Presenting The Interactive Global Debt Clock  Zero Hedge
October 17, 2011
By now everyone has had a chance to play with the US debt clock. But what about its global cousin? Courtesy of The Economist, we now have a convenient way to track the hundreds of millions in dollars added each and every hour by the global governments who see to spur global deleveraging by, you guessed it, adding more debt. Yes, in the process the world’s sovereigns are transferring default risk away from global corporations to sovereigns, but few in the #OWS crowd appear to have yet figured out this rather disturbing and very insidious usurpation of sovereignty by the global corporatocracy, so said risk and leverage transfer will continue until such time as any and all paper backed by these insolvent corporate shells (f/k/a countries) is completely worthless. Regardless, one should not forget that like in the sandalone case, the “debt clock” below only tracks on balance sheet debt. Should one add the NPV of all “welfare state” obligations (pensions, retirement, healthcare), the number will be well over quarter of a quadrillion dollars. Have fun funding that, never mind paying it off…

http://www.economist.com/content/global_debt_clock

 

 

http://www.albertpeia.com/todayspage.htm  
http://albertpeia.com/fbimartinezcongallard.htm    

 

 

 

 

 

 

 

 

11-2-11 NEWS / TOPICS

 

 

 

 

The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is (Criminally) Insane The Wall Street Journal  , This is an especially great opportunity to sell / take profits because there’s much worse to come! Watch for more fake reports / data in their infinite political desperation both here and across the sea! Citi: "The Bear Market Rally Is Behind Us; We Anticipate A Move To 1,000-1,015"Fed lowers GDP forecast, raises unemployment projections, mulls more inflation producing, failed, futile, wall street fraud-friendly action to the detriment of all others which rallies those ever more worthless as with dollars ‘pieces of paper’ (actually not even, just ‘over-counted/supplied computerized ‘ledger’ entries) for the ubiquitous as in the last financial fraud debacle) for the continuing High-Frequency-Trade churn-and-earn (Reuters) , Market Recap: Banks Rally Back, Fed Outlook Worsens [jersey based, former lautenberg adp data’s as worthless as that from the scandal-scarred commerce dept. et als, ie., factory numbers; then, the labor dept.’s fake report, estimates, numbers, including the b.s. service sector, etc..) Wall St. Cheat Sheet  , Fed foresees far weaker growth than it had earlier , MF Global Client Theft Estimate Doubled To $1.5 Billion?Game Over Berlusconi? Italian Anti-Crisis Bill FailsEgan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Of EquityGuest Post: MF Global Shines A Light On Monetarism's Incapacity To Enhance The Real Economy , Will Spiking Vol Drag Global Growth Down? [Short answer: YES! The HFT churn and earn is parasitic, benefits the frauds on wall street only, and ultimately must ‘come from some real place’ (ie., main street, taxpayers, etc.)]    The Greco-Franco Bank Run Has Skipped the Pond, Landed in NY/Chicago and Nobody Noticed, Exactly As I Predicted! Reggie Middleton 11/01/2011 ‘We just experienced a bank run in the US that I have been warning of for months on end. A bank run that resulted in this country's 8th largest bankruptcy,,, ever - and nobody even noticed.’ ,  How US Banks Are Lying About Their European Exposure; Or How Bilateral Netting Ends With A Bang, Not A WhimperKeeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money , US construction spending +0.2% in Sep, below market expectations of +0.3%, vs 1.6% Aug. Nov 1st, 2011  ,   US ISM fell to 50.8 in Oct, below market expectations of 52.0, vs 51.6 in Sep. Nov 1st, 2011   Guest Post: Fed Trapped By InflationKeeping Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of Client Money , US Food Stamp Usage Hits New RecordThe Coming Derivatives Crisis That Could Destroy The Entire Global Financial System The Economic Collapse , The REAL $200 TRILLION Problem Bernanke’s Worried About  Phoenix Capital... ‘US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure…’ ; and, finally the coup de gras ,  America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks…The government’s total indebtedness is $211 trillion’,  Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1  ,   http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR   Mf global, plus mob infested jersey former governor, plus fraudulent wall street, plus mob strong new york, plus rich mob history Chicago, equals fraudulent scheme / theft / scam in the making and then reality! Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers? Graham Summers’ Weekly Market Forecast (Wake Up Call Edition)  Phoenix Capital... 10/31/2011 The markets flew into this deal based on rumors and short-covering and are now waking up to the plain obvious facts that you cannot solve a debt problem with more debt. ,  Panic Behind The MF Scenes As Company Refuses To Disclose Information To Regulators Even In DeathAre Investors Buying on False Hope? Minyanville  ,  Markets Remain in Cyclical Bear Market  Kevin Tuttle  [ Actually this is a secular bear market with much worse to come! ] ,  U.S. and Europe … “Self-Induced Stagnation,” says Economist Editor The Daily Ticker , Why Last Week's Euro Fix Won't Do the Trick ETFguide Maierhofer , Corzine's MF Global collapses under euro zone bets , Are Ratings Agencies Taking Bribes?Wall St. Cheat Sheet [ One way or another, from all 3 branches of u.s. government to u.s. businesses coast to coast, wall street to main street, they’re all getting / taking bribes! ] , SPX and NDX Update: A Disturbing Look at Fundamentals, and the Rally Explained  Jason Haver Oct 31, 2011 ,  China Says Not So Fast On Rescue   http://www.thestreet.com/_yahoo/video/11292710/buy-and-hold-is-dead-buy-and-hedge-instead.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#1250281566001   , MF Global Caught in Death Spiral , Sell H-P! Against the Grain 10/31/11   ,   Europe Will Make Lehman Look Like a Joke   http://gainspainscapital.com/?p=1010  Summers 10-28-11,  Be Honest – The European Debt Deal Was Really A Greek Debt Default Posted by : ilene Post date: 10/28/2011 - 2012 looks like it is going to be an extremely painful year. [ Yes! Very painful! I believe Dave was the first ‘to get this’ in passing yesterday; and, thinking on it more, I believe this charade cheered particularly by the frauds on wall street (and surprisingly germany) was for the purpose of ‘voluntary’ to avoid the Credit Default Swap trigger. Yet, the real bad news is that, even worse than as with the last financial debacle, owing to the greed-driven, commission/fee generating churn and earn of innumerable, bogus, worthless, levered, negatively valued on event financial instruments at computerized lightning speed, the commission-generating paper is beyond the frauds’ abilities to account for; and not just the CDS’s ( ETFs have potential to become the next toxic scandal Sep 19th, 2011 News (The Telegraph) Financial Stability Board (FSB), an international super-regulator, wrote a prescient if less than catchily-titled paper “Potential financial stability issues arising from recent trends in Exchange Traded Funds (ETFs)”..warning – ETFs are not the cheap and transparent vehicles the marketers would have us believe ..no one who read the FSB report was surprised to see the words ETF and rogue trader in the same sentence… half of the ETFs in Europe today do not match the index they are designed to track by holding all of its constituent shares.. Derivative trades add a second layer of uncertainty .. the counterparty risk that the organisation on the other side of the contract might go bust. Even worse, the provider of the ETF might sometimes be a part of the same organisation as the derivatives desk carrying out the swap…For reasons which I’m not sure I could explain even if I had the space, it is possible for the number of shares sold short in an ETF to massively exceed the actual number of shares available.’).  Not only is it that The Greek Deal Accomplishes Nothing… Systemic Risk is Coming   http://gainspainscapital.com October 27th, 2011   (Yes! It’s happened again. No … not just the (Weimar) funny money and rally as in the great depression followed by the inevitable bust /crash Parallels to The Great Depression Suggest Higher Prices Followed by a Bust ETFguide Simon Maierhofer, October 25, 2011), but  , Dave’s Daily http://www.etfdigest.com/davesdaily  ‘The only thing wrong with the image above is that it’s from March 2010, or on one of many previous plans agreed upon. But, markets don’t care about this and just thirst for any deal even if memories remain short.. HFT algos are programmed to pounce on these presumed fixes and have been active in driving stock prices higher this past week. Let’s face it; this is the time of year bulls can make their year with good fees and bonuses on the line…’ , Dave’s Daily:  http://www.etfdigest.com  ‘The above image displays quotes per second coming from HFT (High Frequency Trading) systems http://www.etfdigest.com/images/stories/davesdaily/1866/image002.jpg    http://www.etfdigest.com/images/stories/davesdaily/1866/image002.jpg    . The two graphs display action towards the close of trading Friday. The upper graph shows action of “algos” per second while the bottom the number of HFT quotes per second over a three minute time period with colors for each exchange. The lower graph displayed nearly 300 quotes per second—got that? Perhaps only a small fraction of these are real trades with the others being just bids and offers designed to stimulate program trading algorithms. This is posted because nearly 70% of all volume and trades on the NYSE for example are program trades with HFTs now dominant.   Then there’s the reality / folly that the mental case with the funny / odd little mustache has been displaced by another ubiquitous fraud of collectively the ‘multiple mental cases modern day equivalent variety’; viz., the bourse, bourses, ‘boursers’, stock exchanges, ‘market fraudsters’(wall street particularly), and their lightning fast, high frequency trading computers(‘ programs). After all, the already undercapitalized banks are now 50% more undercapitalized (those Yule Brynner hair cuts are a b**ch); there’s good money after bad; and square pegs are, for the nonce, ‘fitting’ into round holes. Nothing’s been solved and there’s much worse to come! Take this as the ‘gift’ (to stock markets everywhere, ultimately paid for by main streets and taxpayers everywhere) [Market Now Overbought: Birinyi The Wall Street Journal ] it was meant to be and sell, take profits, since this ‘microcosm of the crisis’ was never the real reason for lower markets but merely at best a symptom of [ at worst a scapegoat for ] these great depression-era times, the worst of which will be seen. It’s coming! Funny money will just exacerbate the inevitable! This may sound like a platitude; but, fundamentals and reality still count!  Is It Foolish to Get Excited About the Latest Deal to Save Europe? ETFguide    http://finance.yahoo.com/news/Is-It-Foolish-to-Get-Excited-etfguide-2444921710.html?x=0&.v=1   Simon Maierhofer, 10-27-11 [Short answer: YES! ] . The looney loonie now exceeds the value of the ‘funny-money’, debased dollar (who coulda / woulda have ever thunk it). Inflation, Jobs, and the Artificial Flow of Monetary Policyat Minyanville  Bad news and b***s*** (as in no plan plan) across the board (and sea) … yet stocks rallied …US durable goods orders -0.8% in Sep, near expectations, vs -0.1% Aug. Oct 26th, 2011 by News , Paper currency has too much bull, not enough bullion Oct 26th, 2011 by News (Globe and Mail) — Sir Mervyn King, governor of the Bank of England, ordered up another $300-billion (U.S.) in easy money earlier this month, then mentioned, by way of explanation, that we are living through the most serious financial crisis since the Great Depression – “if not,” he said ominously, “ever.” Sir Mervyn’s warning was only marginally more sobering than the collective warnings of Prime Minister Stephen Harper, Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney.This is not to mock. These men know enough not to scare people out of their wits unless it necessary to do so. So the question is, what do these people know that the rest of us don’t?More related to this story:To put Sir Mervyn’s warning into its historical perspective, it must be noted that “ever” goes back a long way. The biblical record cites one calamitous meltdown 4,000 years ago, “when money failed in the land of Egypt.” Did Sir Mervyn deliberately or inadvertently include the financial crashes of antiquity in his portentous warning? Isn’t it the failure of money that now threatens the world? [source] Euro Zone to Quadruple Bailout Fund: Sources Oct 26th, 2011 by News (CNBC) — … [source]PG View: Leverage is very much a double-edged sword, also capable of amplifying losses. Nobody ever seems to talk about that. Of course Europe can always bailout its bailouts…  STOCKS TANK BEFORE EU MEETING THAT EVERYONE EXPECTS TO FAIL: Here's What You Need To Know Business Insider [ No …this is not quite correct … the point being there’s nothing they can do to make it (other than the meeting in and of  itself as ‘a much ballyhooed  event’) succeed!   Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)  ‘…So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding …’,  Four Facts that PROVE the EFSF Doesn’t Matter… At All  Phoenix Capital 10/20/2011Four Facts that PROVE the EFSF Doesn’t Matter… At All  -  ‘.. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything. The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this)…’ ,  Parallels to The Great Depression Suggest Higher Prices Followed by a Bust ETFguide Simon Maierhofer, October 25, 2011  Investors' Number One Worry: Europe Posed to Bring Down Global Economy  Minyanville [ Riiiiight! Europe following the ‘american way’ of  ‘insurmountable debt, funny money and wall street fraud, and throw in a destructive, wasteful war or two or three’  is ‘ the one’ … to reiterate: America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke…The government’s total indebtedness is $211 trillion   ], Minyanville's T3 Daily Recap: The Anatomy of a Market Reversal  T3Live.com Oct 24, 2011 ‘Now may be a good time to take some profits after a strong October run in the market…’, 10 Reasons The Consumer Will Sink This Rally http://www.bullseyemicrocaps.com/?p=13626   Bret Jensen , United States tipped to lose another AAA credit rating Reuters | Either from Moody’s or Fitch , Can The Hope Rally Continue? [ Short answer: NO! ] , Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)  ‘…So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding …’, Minyanville's T3 Daily Recap: The Anatomy of a Market Reversal  T3Live.com Oct 24, 2011 ‘Now may be a good time to take some profits after a strong October run in the market…’, 10 Reasons The Consumer Will Sink This Rally http://www.bullseyemicrocaps.com/?p=13626   Bret Jensen , United States tipped to lose another AAA credit rating Reuters | Either from Moody’s or Fitch , Can The Hope Rally Continue? [ Short answer: NO! ] , Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1  ,   http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR ,  ECRI Recession Watch: Growth Index Drops Further   http://advisorperspectives.com/dshort/updates/ECRI-Weekly-Leading-Index.php Doug Short 10-21-11 ‘The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has now posted 11 consecutive declines since early August. The interim high of 8.0 was set in the week ending on April 15. The latest reading, data through October 14, is -10.1, down from the previous week's -9.7. On September 30th, the ECRI publicly announced that the U.S. is tipping into a recession, a call the Institute had announced to its private clients on September 21st. ,  Earnings forecasts look less bright NEW YORK (Reuters) - Prospects for corporate earnings are dimmer in the coming quarters -- even though reports so far this quarter have been relatively bright. [ Relatively bright? Only because most are not relatively bright having failed to yet ‘catch on’ to this nation-debilitating, but wall street favored defacto fraud. The ‘miracle’ of ‘funny money’ wherein the ‘debased currency strategies’ (ie., QE’s, etc.) among other accounting manipulations lead to ie., costs reported in ‘more valuable but fewer dollars’ and sales / revenues reported in debased dollars (simply more of them, but no real value created, profits overstated in real terms). ] , Banks closed in Colo, Fla, Ga; 84 failures in 2011 AP , With Some Hope In Europe, Time To Go Short? Forbes   Steve Schaefer, Forbes Staff  ‘European leaders are gathering Sunday and Wednesday in meetings aimed at hashing out an expansion of the region’s bailout fund and recapitalizing banks, but with expectations for a solution rising the risk of a less-than-comprehensive plan rattling markets may be growing...“The bar is set too high,” he believes, arguing that even if the market rallies on a deal being reached, the implementation of whatever resolution plan is adopted will be cumbersome and ultimately amount to “solving a problem of debt with more debt.” When the market realizes that, October’s 9.5% gain to date could unravel in a hurry. The recent stage in the too-rapid rise to current levels is largely a result of short-covering and investors who missed the initial stage of the recovery jumping on board…’ , Dead Stocks Walking smartmoney.com,  S&P sees downgrade blitz in EMU recession, threatening crisis strategy Oct 20th, 2011 News By Ambrose Evans-Pritchard (The Telegraph) , Euro Summit Imploding: Merkel Cancels Friday Government Statement On EFSF Student Loan Bubble To Exceed $1 Trillion: "It's Going To Create A Generation Of Wage Slavery" And Another Taxpayer Bailout Durden ‘..All we need to do is teach people that Washington D.C. and Wall Street are now the same corrupt entity.  They are one gigantic rogue trader sucking the lifeblood out of America..’ , , As growth lags, IMF warns of downturn After warning that high debt needed immediate attention, the organization is now urging countries to look for ways to boost growth amid concerns that austerity might bring renewed recession. Euro drops as Germany seeks no quick resolution (Washington Post) [ Duh … ya think?  43,454,601,693,238 Reasons Why The World Is Broke – Presenting The Interactive Global Debt Clock Zero Hedge | By now everyone has had a chance to play with the US debt clock. But what about its global cousin?   Is the US Economy in a Recession? thetechnicaltake ‘A simple indicator constructed from readily available data is suggesting with great certainty that the US economy is already in a recession.’ , US to Experience Stagflation Worse Than 1970s: Jim Rogers CNBC , Jeff Applegate: Not Sheepish About Turning Bearish  The Wall Street Journal  Jonathan Cheng ‘Last week was a tough time to turn bearish. Since hitting a bottom on Tuesday, the Dow Jones Industrial Average has jumped by 11% in less than two weeks, raising hopes among some investors that the U.S. and Europe may be able to power through their summertime woes. Not for Jeff Applegate. Mr. Applegate, the 61-year-old chief investment officer of Morgan Stanley Smith Barney, last week made his biggest bearish shift in more than two years, battening down the hatches and reducing his exposure to stocks, high-yield bonds, commodities and real-estate investment trusts…’, Fed should adopt GDP target, Goldman says Oct 17th, 2011 News (MarketWatch) — The Federal Reserve should target the level of gross domestic product, Goldman Sachs economists said ahead of a wave of speeches from central bank officials.In a note published Friday night, Goldman Sachs said the best way for the central bank to loosen policy significantly further would be to target a GDP path, and commit to using more asset purchases to achieve that path.“While a shift to a nominal GDP level target would be a big decision, it would be consistent with the Fed’s dual employment and price mandate,” the economists wrote.[source] PG View: [Talk about self-serving disingenuity that along with their frauds, goldman’s come to be known for! Goldman, like the lunatics at salomon brothers should be out of business and vigorously prosecuted; having in large part helped create this crisis which continues with their dollar debased HFT’s. (‘Salomon Brothers' success and decline in the 1980s is documented in Michael Lewis' 1989 book, Liar's Poker. Lewis went through Salomon's training program and then became a bond salesman at Salomon Brothers in London.’Wikipedia. Acquired by Travelers / Citi. ] A timely position taken by Goldman Sachs in light of the inflation piece written by John Mauldin on Saturday. Yes, it does indeed seem that “inflation as a solution” is gaining traction. I say tom-a-to, you say tom-ah-to. I say inflation targeting, you say GDP targeting. Whatever you call it, it’s synonymous with dollar devaluation and you best be saving in something other than dollars if you hope to come out the other side unscathed.Can “It” Happen Here? Oct 17th, 2011 News By John Mauldin15-Oct (JohnMauldin.com) — I was inspired for this week’s letter by a piece by Art Cashin (whom I will get to have dinner with Monday). His daily letter always begins with an anecdote from history. Yesterday it was about Weimar, told in his own inimitable style. So without any edits, class will commence, with Professor Cashin at the chalk board.[Cashin's recounting of the nightmare German inflation, which we posted last week.]…”,  Full moon October 10-14, 2011 … I’ve examined the weekly results for the global markets … Conclusion: The global euphoria, irrational exuberance in the financial markets worldwide, courtesy of the blazing full moon October 10-14, 2011 ; and yes, the lunacy once the exclusive province of fraudulent wall street is now a global phenomenon (10th near full beginning, 14th near full ending). ,  The More Government Spends, The Worse It Gets  , Balance Of Fundamentals Will Continue To Weigh On Market  ,   ECRI Recession Watch: Growth Index Declines Further  http://www.bullseyemicrocaps.com/?p=11699  By Doug Short: The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has posted 10 consecutive declines since early August. Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head it off , US budget gap widens, tops $1 trln for 3rd year Reuters ,  A New S&P 500 Low Still Awaits Us  Minyanville  Erik Swarts Oct 13, 2011 ‘Watch the SPX as the market comes to terms with the continuing crisis in Europe , America's Lost Decade Will Last Until 2016 [ This is extremely optimistic! ] Forbes Lenzner , Harrisburg, Pa Files for Bankruptcy: Is Meredith Whitney Right? [ Short anwer: Yes! ]  Peter Gorenstein , The Structural Challenges Facing Muni Bonds  Minyanville , IRS Auditing How GOOGLE Shifted Profits Offshore to Avoid Taxes Bloomberg , Europe eyes bigger Greek losses for banks , Markets Are Dealing With a Foreboding Financial Backdrop  Minyanville   Lee Adler Oct 12, 2011 ‘..especially, why have they been frantically dumping their corporate holdings since June? http://image.minyanville.com/assets/FCK_Jan2011/Image/October11/12/la10122.JPG Something is rotten here. These are signs of major systemic stress.. This may be one of those times, and it's not a happy picture..’ , Double-Dip Recession a Foregone Conclusion: Roubini Oct 11th, 2011 News (CNBC) — ‘The world’s advanced economies are headed for a second recession, regardless of whether there is further chaos in Europe, Nouriel Roubini told CNBC on Tuesday. The economist who correctly predicted the 2008 financial crisis…’, Slovakia votes down eurozone bailout expansion plans Oct 11th, 2011 News (BBC) , Euro About to Dissolve? Oct 11th, 2011 News Patrick A. Heller (NumisMaster) — “This is the most serious financial crisis we’ve seen, at least since the 1930s, if not ever., ROUBINI: The Recession Is Guaranteed, The Only Question Now Is How Bad It Will Be Business Insider | Nouriel Roubini sees bad times ahead for the economy. , Nobel Prize Winning Economist Who Supports Wall Street Protests SLAMS the Federal Reserve Washington’s Blog | Nobel prize winning economist Joe Stiglitz – like many other high-level economists – supports the “Occupy Wall Street” protests.  Graham Summers Weekly Market Forecast (Dexia Now... Who's Next? Edition)    http://www.zerohedge.com/contributed/graham-summers-weekly-market-forecast-dexia-now-whos-next-edition THIS BEAR MARKET IS NOWHERE NEAR OVER. , We Are Still Early In This Bear Phase   http://www.bullseyemicrocaps.com/?p=10478  Roger Nusbaum  Stocks Surge On New Promises From European Leaders, Dow Adds 300 Points  [ Come on! Wake up! Two desperate, failed politicians who haven’t the slightest idea what they’re doing; certainly in the areas of finance and economics. Indeed, they’ve borrowed from a page in the fraudulent wall street / defacto bankrupt american book of failure and fraud in banging ‘square pegs in round holes’ along with nation-draining fraudulent obfuscation with b***s*** alone that hearkens back to that ’Weimar dollar’ era that was precursor to and inevitably led to the inflationary / no real value collapse now underway as is already the scenario in america. How totally desperate and pathetic they are. This is cheered by the wall street types / frauds to enable them to favorably  cash out. Take your profits while you still can, protect yourself while you still can, this fraud – induced collapse is just beginning. New ‘promises’! Currency-debased high inflation rally!  What a joke they’ve become! ]   “The Prevailing Debate Among Economists and Historians is Whether the World Economy Faces the ‘Great’ Depression of the 1930s or the ‘Long’ Depression of the 1870s” Washington’s Blog | Economists Agree: We’re In a Depression.  Fitch cuts Italy, Spain ratings; outlook negative , Wall Street vs Reality: A Hopeless Tug-of-War?  http://symmetrycapital.net/index.php/blog/2011/10/wall-street-vs-reality-a-hopeless-tug-of-war  Are Wall Street strategists living in a bubble? [ The short answer is, ‘YES’! The long answer is your work is quite (closer to) correct (and worse when dollar debasement is factored in).]  According to our work, credit market, demographic, and leading economic  indicators are all pointing to a level of between 800 and 1,000 for the S&P 500 between now and 2012-2013.   Hold Your Enthusiasm ... This Is Still A Bear Market Rally    http://www.bullfax.com/?q=node-hold-your-enthusiasm-still-bear-market-rally, 10/06/2011 ,  Yield Spread Confirming Recession Call http://www.zerohedge.com/news/guest-post-yield-spread-confirming-recession-call ,  U.S. stocks' massive "melt-up" fans investor fears Reuters October 5, 2011, By Edward Krudy NEW YORK (Reuters) - In less than one hour on Tuesday, the U.S. stock market surged by 4 percent -- for no apparent reason ,  Play It Again Sam: Dave's Daily ‘ ... The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job. One of these actions was featured courtesy of our friends at Zero Hedge and depicted below as it occurred Thursday afternoon. The first chart features the quotes per second (NOTE: one instance exceeding 800 quotes per second). The next chart shows the market's simultaneous reaction.  http://www.thestreet.com/tsc/daves/082511/image002.jpg  ( Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events .. “the new recession has started.”… Over the past 33 years, we have called the start of every recession..Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation..is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’ )( ,  6 Reasons a Global Recession is Unavoidable  Ron DeLegge, October 5, 2011, Dem.lautenberg’s jersey based ADP helps the desperate dem’s cause with 100% better than expected (false) private sector jobs report (Announced U.S. Job Cuts Rise 212% From Year Ago Bloomberg) , Gabriel Wisdom to Frank Motek of 1070amBus.Rept. says this is a bear market and we’ll see market lows in 2012. [video] Nervously Eyeing 50% RetracementTheStreet.com Mark Newton , Moody's Downgrades Italy By Three Notches The Wall Street Journal ,  Greek Bailout May Include Larger Writedowns for Private InvestorsWall St. Cheat Sheet . Enormous, last hour 370+ point upside suckers’ rally into the close based on b***s***, rumour (more ‘good money after bad’ bailout goin’ greek in the eu zone), nothing at all (pushed a button, ran a buy program?) to suck suckers in and keep suckers sucked in based upon as previously questionable if not outright fake, ‘upward-revised’ (based on inflation-spiked price increases at best) data also, ‘the data don’t distinguish between Americans who stop receiving benefits because they find jobs and those who fall off the unemployment rolls because their benefits expire- WSCS THE GREATEST SHOW ON EARTH  September 29, 2011   http://www.etfdigest.com ‘…Algos jumped on the headlines which is what they’re programmed to do. They don’t look under the hood for details since given their momentary focus, “facts don’t matter”—not at least right away. A closer look inside Jobless Claims data is the consistent revisions for higher previous claims. This makes current reports generally seem better by comparison. Further, the BLS states with this report the significant impact of “seasonal factors” skewing the report…’ ) . [  End of Quarter Price Mark-Ups; Dave’s Daily   http://www.thestreet.com/story/11260606/1/end-of-quarter-price-mark-ups-daves-daily.html  Dave Fry  9-27-11 ‘All you need do is view the last week of June 2011, the previous quarter end, and you'll note a similar quarter end jam-job…’ ,  Bernanke calls unemployment a ‘national crisis’   28 Sep 2011 Fed chief Ben Bernanke said Wednesday that the nation’s weak labor market was “a national crisis” - Duh! No-recession-wall-street-lovin’-helicopter ben’s … done it again! … brilliant description of unfortunately what already is thanks in large part to his wall (fraud) street largess / welfare in the form of QE’s, etc. , Prepare for Lehman Brothers Part 2   ,  Arguments for Being in the Crash Camp   Conor Sen Sep 28, 2011  ,  Now's Not the Time to Take on Equity Market Exposure at Minyanville Erik Swarts Sep 28, 2011 ,  [video]Buying on Rumor - Prepare For The Selling On NewsTheStreet.com TV  , Roubini: U.S. in Throes of Economic Contraction Sep 27th, 2011 News (Bloomberg) , SHILLER: House Prices Probably Won’t Hit Bottom For Years Sep 27th, 2011  News (BusinessInsider) , Split opens over Greek bail-out terms Sep 27th, 2011(Financial Times) ,   The familiar fraud/pattern of end-of-month/quarter window dressing b***s*** story of ‘hopes’ (ie., americanized funny-money fraud in the eurozone, etc.) from the frauds on wall street …  Dave’s Daily:’.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..’   , despite the reality of bad news , New home sales hit 6-month low, prices drop , Euro zone damps talk of rapid debt crisis steps , On the Lookout for a Red October Minyanville ‘ … Aside from history, if we take a look at the global environment, there are a handful of things suggesting that we will experience a turbulent October…’  ,    Suckers’ rally into the close to suck suckers in and keep suckers sucked in based on lingering hopes for unaffordably damaging funny money / QE ultimately taxpayer funded / borne bailout / welfare for these fraudulent ‘titans of capitalism’ on wall street, viz., nothing whatsoever ( watch for their fraudulent / illegal end of month/quarter window dressing )  , and bad news (  Soros: US Is Already in Double-Dip Recession CNBC.com  ,   Stocks: Don't Get All Comfortable Just Yet WS /Conway ,  Stocks Endure Worst Five-Day Slamming Since '08, Still On Edge About Greece Forbes , More Pain Is Coming To Equities  http://regator.com/p/253227580/more_pain_is_coming_to_equities  Penguin Capital Markets , David Cameron: world on brink of new economic crisis London Telegraph , Every Age Group Is Getting Poorer In America, Except For One Advisor Perspectives , Global economy pushed to the brink Sep 23rd, 2011 News Financial Times , European and US Economies Teetering on Weak Policy, Leadership Minyanville Kerr , Moody's downgrades 8 Greek banks (AP)  ,   Signs The Perfect Economic Storm Is Coming  http://www.bullfax.com/?q=node-signs-perfect-economic-storm-coming  ,   America’s debt woe is worse than Greece’s Sep 21st, 2011 News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks. Social Security can no longer afford to send us our annual benefit statements. The House can no longer afford its congressional pages. The Pentagon can no longer afford the pension and health care benefits of retired service members. NASA is no longer planning a manned mission to Mars. We’re broke for a reason. We’ve spent six decades accumulating a huge official debt (U.S. Treasury bills and bonds) and vastly larger unofficial debts to pay for Social Security, Medicare, and Medicaid benefits to today’s and tomorrow’s 100 million-plus retirees. The government’s total indebtedness — its fiscal gap — now stands at $211 trillion, by my arithmetic. [source]’  ,  $16 muffins, $8 coffee served in Justice audit , Market Recap: FOMC Announces Operation Twist, Banks Tumble, Investors Flee Sovereign Debt Wall St. Cheat Sheet September 21, 2011, Wall Street sinks 3 percent after Fed cites economic "risks"  NEW YORK (Reuters)  ,   Moody's downgrades big banks on changed policy  ,  Italy downgraded, IMF says Europe behind the curve  Reuters  ,  IMF downgrades outlook for US and Europe economies [Sep 20, 2011] ... Fund has sharply downgraded its outlook for the U.S. economy through 2012 ...  http://finance.yahoo.com/news/IMF-downgrades-outlook-for-US-apf-1240337037.html?x=0 much worse than expected:  Market Recap: S&P Downgrades Italy, Housing Starts Tumble, Markets Wait on funny-money no-recession ben bernanke   Wall St Cheat Sheet ,   IMF Downgrades Global Economic Outlook  ,  Drudgereport: IMF WARNS: INTO THE DANGER ZONE... ...warns of USA 'lost decade'  ,  New High: 37% Say Their Home Is Worth Less Than Remaining Mortgage Payments Rasmussen  ,  30 Signs That The U.S. Economy Is About To Go Into The Toilet The Economic Collapse  ,  A Fed IOER Cut Could Backfire on Banks, Warns Pimco  ,   3 Reasons Markets Were Up As Central Banks Stepped in to Boost Dollar Liquidity in European Banks Wall St. Cheat Sheet Today the Department of Labor announced that consumer prices had climbed twice what economists had predicted in August, while initial jobless claims jumped last week to their highest level since June. The Federal Reserve Bank of New York’s report on manufacturing in the region contracted more than expected in September, while its general economic index dropped to its weakest reading since November 2010, indicating that companies in the region covered by the New York Fed’s manufacturing index are cutting back. The consumer-price report also showed that hourly earnings fell in August in their biggest one-month decline since July 2008, while the cost of energy, food, healthcare, and shelter all rose.‘ ,   David Rosenberg: “It’s Time To Start Calling This For What It Is: A Modern Day Depression” Zero Hedge ,  Geithner: Economy In “An Early Stage” Of Crisis  ,  Flat retail sales keeps U.S. on recession watch ) fraud  / manipulated programmed hft (high frequency trades – see, ie.,  What to Expect Next From the Markets , Dave’s Daily, infra ) and b***s*** alone! [ Stock Market Secret Word of the Day Is 'Delusion' WSJ  ,  watch for fake data / reports out of their sheer desperation  ,  ‘american technology is horrendous and vastly overrated!’ I really mean it; and that’s reality, which speaks volumes about the pathetic state of the world , Minyanville's T3 Daily Recap: Market Squeeze Continues, But Was it a Trap?  By T3Live.com ‘Today's action … another clever ploy to suck in longs while relieving some of the oversold condition of the market’  ,  Don't Trust Wall Street and this Market  ETFguide ,  Congress budget agency warns panel of economic ills  ,  Nearly 1 in 6 Americans in poverty, Census says  ,  Cisco cuts long-term sales growth forecast  ,  International alarm over euro zone crisis grows  ,  Why Can't Wall Street Be Honest With The Public? Forbes  ,  Venture capital veteran Perkins sees danger ahead  , These Wall Street Firms are About to Start Firing People Like Crazy  ,   Same Alan Greenspan Who Warned Against Budget Surplus Now Warns About Deficit  ,  ETF Redemptions Highest Since 2008: Report ETF Trends , 20 Signs Of Imminent Financial Collapse In Europe The Economic Collapse ,  The 2nd Edge Of Modern Financial Repression: Manipulating Inflation Indexes To Steal From Retirees & Public Workers Gold Seek  Lawless America: 20 Examples Of Desperate People Doing Desperate Things The American Dream  ,  Poverty In America: A Special Report The Economic Collapse | America is getting poorer.  How Greece Is Mocking the Rest of the World  [ Well, let’s get real here! There’s plenty to mock in this world, and Greece is hardly the nation to be doing the mocking. I think it’s the markets that are mocking the rest of the world’s stupidity for buying into this false reality / obfuscation / fraud, particularly by way of the now pervasive worldwide acceptance of the american strategy of currency debasement which really is a fraud facilitator because it masks to all but the intelligent few the underlying economic weakness and decline. A simplistic example, though not perfect, is apropos here: a company sells a product for 1 dollar which costs 1 dollar to make (assuming arguendo to cover fixed expenses - no profit). The fed over-printing / creating dollars like mad to the point where it now takes 2 dollars to render the same purchasing power of  1 dollar when the goods were produced. The company sells the products for 2 dollars (the previous equivalent of 1 dollar before debasement). The company is now showing earnings 1 dollar per unit sold, yet in real terms, they’ve gotten no more than the equivalent of that 1 dollar per unit. (If you’ve been to the grocery store lately, particularly the last 1-2 months, I’ve found meats, etc., to be up 50-100%, etc.). The same obfuscating manipulations are applicable to assets generally, and to those pieces of paper called stocks which are even ‘worse for the wear’ since churn-and-earn commissions at lightning computerized speed are being subtracted from this illusory ‘enhanced value’ which in reality doesn’t exist at all. ( Such manipulations from currency translation also provide ‘arbitrage opportunities’ though similarly largely ultimately subtracted from no real value being created. ) This is why fraudulent wall street loves the fed’s QE’s and dollar debasement / over-printing / creating and also why it’s been a dismal failure and a net negative in real economic terms as seen on main street and in the decimation of the middle class and growing ranks of the poor. In the analysis of securities, this would be considered ‘the quality of earnings factor’ that goes into the assignment of a p/e multiple to the projected earnings. Sufficeth to say, this is no longer done on wall street in any real or legitimate fashion, if at all. Indeed, it’s a fair statement to say that security analysis is no longer a ‘practice’ as same was considered, once upon a time, by value investors / analysts. As set forth by Dave and Cooper, infra, computerized programmed manipulation at lightning speed has been expedient in the short run for the wall street frauds but ultimately leads to the inevitable crash since as I often reiterate: Remember, there is no modern day alchemy that spins worthless paper into gold except fraudulently for the frauds on wall street who’ve literally oftimes done exactly that; ‘cashing out’ for hard currency and gold, precious metals, at everyone else’s expense including main street. They’re just not that important and represent, like termites eating away at the nation’s foundation, a drag on the economy, the nation as one would expect from parasites such as they are’. What to Expect Next From the Markets Minyanville  Jeffrey Cooper ‘Conclusion: It looks like a program was run using the least amount of dollars to goose the indices by focusing on some big cap names like Apple, Amazon, Baidu, IBM, and Caterpillar { Apple Hits New High (Update1) [ 9-19-11 This manipulated programmed trade to froth markets is a crash in the making – sell at these ridiculous levels / take profits! },  Dave’s Daily:’.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..’] Simon Maierhofer,September 16, 2011, ‘Webster's dictionary defines gullible as naive and easily duped or cheated'…’    


 

 

Art Cashin On The Most Important History Lesson Of The Last Century Oct 13th, 2011 08:40 by News  ZeroHedge) Today, instead of the traditional market observations by the Chairman of the Fermentation Committee, we share with readers a critical historical lesson from Art Cashin, focusing on an event that took place 89 years ago, which as Cashin says one of the most devastating economic events in recorded history and an important backdrop to Europe today. It all began with the efforts of a few, well intentioned government officials. Many will know what we are talking about alreadyOriginally, on this day (-2) in 1922, the German Central Bank and the German Treasury took an inevitable step in a process which had begun with their previous effort to jump start a stagnant economy. Many months earlier they had decided that what was needed was easier money. Their initial efforts brought little response. So, using the governmental more is better theory they simply created more and more money. But economic stagnation continued and so did the money growth. They kept making money more available. No reaction. Then, suddenly prices began to explode unbelievably (but, perversely, not business activity).[source] PG View: The hyperinflation of the Weimar Republic is unquestionably Germanys defining economic moment, much like the Great Depression is ours. It goes a long way toward explaining why Germany continues to balk at further bailouts, leveraging, bond buying and expansive liquidity measures; they understandably fear the inflation. Keynsian thinking says governments should be printing and spending like mad in the face of grim growth prospects and an impending banking crisis, but Germans recall all-to readily that when über-easy monetary policy gets out of control, things can go from bad to catastrophic in a heartbeat. Cashins piece is indeed an important history lesson we all should take heed of. For further insight into the Weimar hyperinflation, be sure to read The Nightmare German Inflation. Previous:The latest b***s*** story into the close is rich, but not as in wealthy. One interviewee / pundit even preposterously referred to the Marco Polo effect, viz., that communist Chinas rumored to be about to save one of the PIIGS, italy but whos going to save communist china really some very bad karma for communist china just round the corner! Dont forget, the markets rallied literally many hundreds of points owing to that spin / b***s*** called the euro solution, etc., which of course, never existed in reality, but great fraud points (that computerized hf commissioned churn-and-earn, up and down, get you now and get you later). Then the so-called technical support levels based on much worse than spun fundamentals / reality. Its the other way around, fools fundamentals create technical support levels, not vice versa. Unprecedented Monthly Volume Sell-Off Suggests Now's the Time to Take Shelter at Minyanville Kevin A. Tuttle Sep 12, 2011  ,  Preparing for a Credit Crisis at Minyanville  John Mauldin  ,  What's the Long-Term Outlook for Stocks and The Economy? ETFguide   Simon Maierhofer, September 12, 2011  ,    ]     Prepare For Recession And Bear Market at Forbes Sy Harding, Brace yourself for a recession ,  Senate (Quietly) Approves $500 Billion Increase in Borrowing Authority Sep 9th, 2011 by News (WSJ Blogs) PG View: Shhhhh. Dont tell anyone, but we blew through that initial $400 bln debt ceiling hike in about a month /  Europe on the Verge of a Political Breakdown News , 4 Bearish Mega Trends  Simon Maierhofer / S&P 1,100 And Lower - More Likely Than you Think  , STOCKS DEMOLISHED, EUROPE NEAR BREAKING POINT: Here's What You Need To Know Business Insider , Ominous Bear Flag Pattern Suggests S&P 500 At 1,000  Scott Redler ,Keep in mind the  r word (recession- actually should be d word for depression) subtracting out the understated inflationary price increases (deflating growth with realistic inflation deflator), were already there ( see, Burt Dohmen, Financial Crisis Phase II Is Ahead at Forbes, infra)           7 Reasons Why New Lows are Likely  ETF Guide   ,  Albert Edwards Has Another Reason You Should Worry About Profits The Wall Street Journal, Mark Gongloff   ,   Chart Shock: The REAL Unemployment Rate Is 22% The Daily Bail September 2, 2011 ,  Deja Vu All Over Again: Total US Debt Passes Debt Ceiling In Under One Month Since Extension  Sep 2nd, 2011 News (ZeroHedge)  ,   Global Recession: Right Here, Right Now at Minyanville  Mike Shedlock Sep 02, 2011  ,    Fearing An Even Worse Inflationary Depression Ahead Bob Chapman | The debauching of currencies worldwide goes on with great abandon. Previous: Typical (suckers rally into the close on still lingering hopes for more fed funny money thats a detriment / negative to all but the frauds on wall street and has been a dismal policy failure) window-dressed end of month based on bad news, fraud, and b***s*** alone watch for fake data / reports out of their sheer desperation  ,  Beware Dow In September: Do You Believe The Data?   [ NO! I DON’T BELIEVE THE GOVERNMENT DATA ( Famed economist predicts economic calamity in 2012x   http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1    , NOR DO I BELIEVE THE NON-GOVERNMENT DATA (Accounting Gimmics Resurface as Growth Flounders at TheStreet Rebekah Smith, infra)  ,   Global Recession Likely, Depression Possible: Economist  Aug 31st, 2011 by News (CNBC)  ,    Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  What to Expect Next From the Markets at Minyanville  Jeffrey Cooper Aug 29, 2011  Conclusion: It looks like a program was run using the least amount of dollars to goose the indices by focusing on some big cap names like Apple (AAPL), Amazon (AMZN), Baidu (BIDU), IBM (IBM), and Caterpillar (CAT) on Friday. That is why the market is so dangerous here…‘  Arguments for Being in the Crash Camp   Conor Sen  Aug 29, 2011 If you want to take risk, only own things you're willing to own in a down 20-30% tape, because that's what we could see over the next month...  , Economic / Financial Collapse Imminent Stansberry  Investment Advisory http://www.albertpeia.com/stansberrysinvestmentadvisory.flv    Harry Dent, Jr. Economy will be in a Depression by 2011 Dow will Fall to 3,800 4,500 by 2012 Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest. U.S. Dollar will Decline Housing will Decline by 40 60% from Todays Levels Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).  Fed Economists Predict A 15 Year Bear Market For Stocks Aug 23rd, 2011 News (BusinessInsider)  ,  End Of Cycle Smelling Like Dow 3K, Gold 3K  Forbes /  Bill Bonner   ,  No Recession Coming ... It's Already Here   , Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen  In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis My work shows that the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER) However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as growth, is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’ ,  NOR DO I BELIEVE THE NON-GOVERNMENT DATA (Accounting Gimmics Resurface as Growth Flounders at TheStreet Rebekah Smith) at this point of abounding desperation for both. ] Murray Coleman If you believe in seasonal factors, betting on the Dow Jones Industrial Average ETF (DIA) wouldnt seem like the best play about this time of year. Over the past 100 years, the Dow itself has averaged a drop of 0.8% in September, according to Bespoke Investment Group. Over the last 50 years, the Dow has averaged a fall of 0.79%; in the past 20 years the benchmark has typically dropped by 0.60% during the month…’  

 

 

Obama's Legacy: A Failed Recovery & Double-Dip Recession  Forbes / Mariotti  ‘…There will be no significant recovery in the United States of America while Barack Obama is President.  The evidence is overwhelming:  everything Obama has tried to fuel a recovery (with his Democratic allies in Congress) has failed.  Statistics claiming jobs saved by the stimulus package were mostly fiction, and cost American taxpayers about $275,000 each.  Nearly 2-1/2 million fewer Americans have jobs than before the stimulus. Barack Obama has been President for 30 months2-1/2 years. He spent the first year obsessed with passing Obamacare, a program that doesnt create jobs, but might destroy a lot of them.  He bailed out GM, but many believe that his interference didnt save GM; it merely cost taxpayers an extra $15-20 billion, and stole from legitimate investors to buy off the UAW.  His broken campaign promises are too numerous to list.  At some point, his statute of limitations on blaming Bush runs out…’   ,   The Bear Market Rally Has Begun at Minyanville   Toby Connor Aug 30, 2011 ‘…Investors need to be prepared. This is going to be a very, very convincing rally. The tendency is going to be to buy into the media hype -- that this was nothing more than a severe correction in an ongoing bull market. This was not a correction. This was the first leg down in a new cyclical (secular) bear market. And like all bear markets it will be subject to violent countertrend rallies that toy with traders' emotions, and ultimately cause investors to ride the bear all the way to the bottom…’    Scandal scarred commerce dept. report on consumer spending with anemic income figures (typically as always unworthy of belief as unbelievable anything the government says in their desperation) spurs suckers rally (along with some short covering) to suck suckers in and keep suckers sucked in.  Massive Understatement: Mohamed El-Erians reply to Frank Motek 1070am regarding particularly the 300+ point swing to the upside today, (theyre) confused! Indeed they are! But when youre commissioning those manipulated computer programmed high-frequency-trade swings, churning and earning at lightning speed, such euphemistic criticism falls short with the impact of water off a ducks back.      Moreover, how pathetic are they, those Pavlov dogs on wall street salivating at the mere prospect of a QE handout ultimately at taxpayer expense, in one form or another. Even more pathetic is the so-called ‘rally’ based on a purported rethink of fedspeak alleged  to be so filled with ‘ latent / hidden ‘ meaning of a form of QE welfare down the road. Those pathetic ‘titans of capitalism’; aka, the frauds of wall street.  Never mind that the QE’s have failed miserably and at great costs (inflation, financial, economic, etc.) and detriment to all but the frauds on wall street by way of their manipulated computer-programmed ( high frequency trading) commissioned churn-and-earn. Wall street’s rise has been among the causes of and comcomitant to america’s decline / demise. Remember, there is no modern day alchemy that spins worthless paper into gold except fraudulently for the frauds on wall street whove literally oftimes done exactly that; cashing out for hard currency and gold, precious metals, at everyone elses expense including main street. Theyre just not that important and represent, like termites eating away at the nations foundation, a drag on the economy, the nation as one would expect from parasites such as they are. So what’s changed of significance? Nothing! Absolutely nothing; yet a manipulated computer-programmed ( high frequency trading bots ) churn-and-earn suckers’ rally based on desperation, bad news, fraud and b***s*** alone to suck suckers in and keep suckers sucked in. Horrific news on the economic front particularly since the anemic (revised downward – and I think much worse than reported) 1% GDP growth is all owing to hefty price increases / inflation, fudged and not reported accurately. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen  In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis My work shows that the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER) However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as growth, is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’  This is an especially great opportunity to sell / take profits because theres much worse to come! ,  Despite being glad that Apple has survived (though outlook now dimmed regardless of rhetoric and beyond the Jobs retirement), ‘american technology is horrendous and vastly overrated!’ I really mean it, and that’s reality, which speaks volumes about the pathetic state of the world ,  Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com  ,       Bernanke - Man of Mystery: Dave's Daily at TheStreet  Bernanke did what a lot of people expected him to do -- speak softly but carry a big printing press. After being down nearly 200 points the DJIA rallied to close higher by 135 points. Pundits shrugged embracing the idea if something was really wrong Bernanke would have acted; besides, bulls' reasoned stocks are cheap based on trailing PEs of around 12. Away from that was more crummy economic news with GDP printing at only 1% growth. This may be revised lower again like most other indicators of late…’  (Daves Daily:.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..)   Play It Again Sam: Dave's Daily  [ As always, Dave is spot-on as an astute, knowledgeable, seasoned veteran of the markets. ] ‘ Thursday was another great show starring Jobless Claims, Warren Buffet, HAL 9000s, Steve Jobs and, of course, Da Boyz running the CRIMEX (COMEX and CME) on precious metals options expiration.The spin on Jobless Claims data was prior claims were adjusted higher making recent higher claims look not so bad especially when you add Verizon workers. Warren Buffett entered from stage left with a $5 billion investment in Bank of America giving him 6% interest tax-free (a "coddled" billionaire?) and making he and Berkshire a new TARP program. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job. One of these actions was featured courtesy of our friends at Zero Hedge and depicted below as it occurred Thursday afternoon. The first chart features the quotes per second (NOTE: one instance exceeding 800 quotes per second). The next chart shows the market's simultaneous reaction. http://www.thestreet.com/tsc/daves/082511/image002.jpg  Steve Jobs sadly is retiring from his leading role as Apple CEO but the stock hardly budged given the products and brand are already well-known and his retirement was much anticipated. Last, but not least certainly, was the performance of Da Boyz production of gold price manipulation…’ Previous: Manipulated computer-programmed ( high frequency trading bots ) churn-and-earn suckers’ rally into the close based on desperation, fraud and b***s*** alone to suck suckers in and keep suckers sucked in!   Stocks up on government report (I consistently and here now again warn of fake reports / data) on durables far better than expectations / reality100% better? I dont think so! Come on sheer desperation at best! Steve Jobs resigns from Apple, Cook becomes CEO - SAN FRANCISCO (Reuters) - Silicon Valley legend Steve Jobs on Wednesday resigned as chief executive of Apple Inc in a stunning move that ended his 14-year reign at the technology giant he co-founded i... [ Far more than just a Silicon Valley legend, Steve Jobs literally saved Apple from extinction Im truly glad he saved Apple, my first computer (1986 - apple IIc for word processing / data based records / forms / templates / data which I interfaced with an electric typewriter for letter quality) and for that all should be thankful. Apple is the Nasdaq (40% weighting) and quite more, that now was! Thats past tense. Steve Jobs goes out a big winner as indeed he should! Yet, make no mistake, as one might expect, his timing was impeccable inasmuch as without his uniquely inspired innovation, competition moving in, and particularly the coming debacle / crisis the worst of which lies ahead, things are not looking up, in and for pervasively corrupt / defacto bankrupt america particularly, euphemistically speaking. ]  End Of Cycle Smelling Like Dow 3K, Gold 3K  Forbes /  Bill Bonner  Our view [ the correct view ] is that the bear market began in January 2000. The feds fought it off with two huge extravaganzas of spending the first beginning in 2001 the other after 2008. Stimulus does wonders for stock prices but it no longer works for the economy that sustains them. For every dollar that the Fed has put to work to fight the crisis since 2008, for example, it has produced only 80 cents worth of GDP. It didnt work……that the recession of 08-09 in the US never actually ended……and that stocks will go down over the next 5-10 years until they finally hit a real bottom…’  Ted Weisberg to Frank Motek 1070am could think of no reason for the market to be up (BAD NEWS: new home sales down, oil prices up - China's manufacturing index showed a decline, the seventh straight month of declines for German manufacturing and the first decline in two years for European manufacturing activity, in u.s. a big miss on new home sales and a decline in the Richmond Fed's manufacturing index.) with some prodding ultimately a begrudging mention of that meaningless fudge term oversold which of course is no reason at all particularly since the market is substantially overvalued so take this as an especially great opportunity to sell / take profits because theres much worse to come! ,  Fed Economists Predict A 15 Year Bear Market For Stocks Aug 23rd, 2011 News (BusinessInsider) The San Francisco Fed has come out with a research paper connecting the dots between the retiring baby boomers and stock prices. The thinking is that the boomers will divest themselves of stocks as they retire and eat into their savings.These conclusions are just horrendous! The suggestion is that there is a 15-year bear market in front of us. Multiples will fall by 50%!!…“We do see it as something of a headwind as the economy is attempting to recover. These deep thinkers have it completely wrong. They think that the key to having a stronger economy is higher stock prices. So they spend all of their efforts dreaming up ways to keep the S&P ramping up. I think it is the exact other way around. If the economy were to be growing [ you see, thats the problem in large part the economy wont really be growing (huge price increases / inflation for the illusion), among a multitude of other problems ], it is reasonable to assume that stock prices might rise. It is completely false to assume that attempts to jigger stocks higher will lead to a stronger economy [ This is true, but the writer ignores the criminal fraud factor as the raison detre for the jiggering. ]  ,  Dow:Gold Ratio and the Secular Bear Market Minyanville  Toby Connor Stocks.. after.. bear market rally, will roll over and continue down into a final four-year cycle low..Depending on whether or not the Fed tries to fight the cleansing process, or Ben Bernanke tries to stop the bear market with another round of quantitative easing, stocks should either test or breach the March '09 lows. Either way I expect that 2012 will go down as one of the worst years in human history. Certainly in the same category as 1932, if not worse …’  ,  ‘american technology is horrendous and vastly overrated!’ ,  Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com  ,   Accounting Gimmics Resurface as Growth Flounders at TheStreet Rebekah Smith, director of financial advisory services at accounting and consulting firm GBQ consulting, says accounting tricks and schemes are likely to start unraveling as we head into 2012 and the lag effect catches up. "The typical accounting fraud goes on for about 18 to 26 months before it is uncovered. The frauds that took place in 2009 are not going to surface until later in 2011 or into 2012."   ,  Morgan Stanley Biggest Welfare Recipient as Federal Reserve Lent Banks $1.2 Trillion During Financial Crisis Wall St. Cheat Sheet  ,    Social Security disability on verge of insolvency     ,  Welcome To The New Bear Market For Stocks  Forbes / Suttmeier ,  Dow/Gold Ratio Lowest Since 1987 Crash   Forbes /  Adrian Ash  ,   Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  Tech Leading Market Lower The Wall Street Journal  ,  Banks closed in Fla, Ga, Ill; 2011 total is 68   ,   No Recession Coming ... It's Already Here   Minyanville's T3 Daily Recap: Market Gives Back Weekend Gains Amid US Bank Woes at Minyanville  ,Previous:8-18-11 Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says    Crimes Wrecked The Markets    ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    )   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC.com  So what’s changed of significance (other than previous full moon and consequent effects on the lunatic wall street frauds) Nothing! Absolutely nothing, yet a manipulated computer-programmed ( high frequency trading bots ) churn-and-earn suckers’ rally based on desperation, fraud and b***s*** alone (ie., backward looking, ‘revisions’, faked data, etc.) to keep suckers suckered, which makes for an especially great opportunity to sell / take profits since there’s much, much worse to come!     Regulators close 64th U.S. bank this year , U.S. consumer sentiment grim but retail sales jump with gasoline prices up  ,  [$$] 'Junk' Bonds Point to Recession  , Stock Market Parallels to 2000 and 2008 Should Not Be Ignored   , How Low Will Stocks Go?   Michael Kahn, who writes the Getting Technical column for Barrons.com and the QuickTakes Pro blog, has long argued were in a secular (long-term) bear market, and he thinks the cyclical bull is over, too. Like Arbeter, he sees 1,010 to 1,050 as the next level of support for the S&P, and below that 930.  50% unemployment & 90% Dow crash also predicted. Newsmax   Tech up? Is this some kind of a joke? Absolute confirmation of dire prospects worldwide since american tech is horrendous.  (Newsmax.com) Robert Wiedemers new book, Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown, quickly is becoming the survival guide for the 21st century. And Newsmaxs eye-opening Aftershock Survival Summit video, with exclusive interviews and prophetic predictions, already has affected millions around the world but not without ruffling a few feathers.    [ The instant  video on the economic / financial collapse from Stansberry and Associates is so well researched  and succinctly presented  that Ive archived same on my website; also, because the facts and views presented comport with the facts and views Ive presented on my site which I believe to be correct. This is a must-view, must-see that I strongly recommend!    
The complete url:     http://www.albertpeia.com/stansberrysinvestmentadvisory.flv   http://www.albertpeia.com/stansberrysinvestmentadvisory.mp4    Written text of presentation (without pictures  / charts)]  [A lot of pre-election year obfuscation, manipulation but the debacle is already here:  Harry Dent, Jr. Economy will be in a Depression by 2011
Dow will Fall to 3,800
4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
U.S. Dollar will Decline
Housing will Decline by 40
60% from Todays Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).
   Dow 1000? Robert Prechter Thinks So      Prechter Reiterrates Call For Dow 1,000, Even As Surging Gold And Plunging Dollar Leave Much Credibility To Be Desired        Bulls Go to Extremes: Don't Buy the "Breakout", Sell It, Prechter Says     Russell: This Is One Of The Largest Tops In Stock Market History  My old friend, Bob Prechter, is talking about Dow 400. I used to think this was an absurd joke. I no longer think its a joke. The ultimate result will be a primary bear market shocking in duration and extent. …’     Forecasts from Dent, Napier, and then Prechter: Depression is Imminent The Dow Jones Industrial Average will go down to at least 1000, most likely to below 777 which was the starting point of its mania back in August 1982, and quite likely drop below 400 at one or more times during the bear market.  [ 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse ‘…  #8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR.“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap” ..   Why You Shouldn't Buy Into This Plunge Forbes/O'NeilThe market is building momentum to the downside.]    Russell Napier is the author of the book Anatomy of the Bear, a professor at the Edinburgh Business School and a consultant to CLSA Ltd. which is one of the top research houses in Asia. Napiers research indicates (and I paraphrase) that: The S&P 500 will Decline to 400 by 2014 (the Dow 30 to 3800) The S&P 500 will then undergo a major crash that will see U.S. equity prices bottom at almost 50% below current levels (i.e. to 400 or less; the Dow 30 to 3800 or less) sometime around 2014 as Tobins q drops to 0.3 signaling the end of the bear market, as it has done at the end of the four largest U.S. market declines in 1921, 1932, 1949 and 1982. U.S. Treasury Sales Collapse Leading to End of U.S. Dollar as Reserve Currency Robert R. Prechter Jr. is author of a number of newsletters and books including Elliott Wave Principle (1978) in which he predicted the super bull market of the 1980s; At the Crest of the Tidal Wave A Forecast of the Great Bear Market (1995) in which he predicted a slow motion economic earthquake, brought about by a great asset mania, that would register 11 on the financial Richter scale causing a collapse of historic proportions; and Conquer the Crash: You can Survive and Prosper in a Deflationary Depression (2002) in which he described the economic cataclysm that we are just beginning to experience and advised how to position ones self financially during that period of time. Depression is Imminent The Dow Jones Industrial Average will go down to at least 1000, most likely to below 777 which was the starting point of its mania back in August 1982, and quite likely drop below 400 at one or more times during the bear market.    Watch for fake govt data / reports owing to political desperation!  This an especially great opportunity to sell / take profits, particularly if you missed Tuesday or May, since there’s much, much worse to come! Thursday, Aug.11, 2011: what changed from yesterday which warranted a more than 500 point plunge with paper stocks still over-valued? Well, some bad news labeled as better than expected 1) 7,000 fewer jobless claims than expected (just a little over 1% better even if you believe them – I don’t) 2) Cisco shows results ‘better than expected’ 3) Record monthly trade deficit  [ What Recovery? Forbes we cant call this a recovery. Theres no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. Cisco Systems Incs quarterly results edged past Wall Streets scaled-back expectations ...They beat a low bar. A lot of it is coming from cost cutting, which we anticipated. In that sense its a relief, Joanna Makris of Mizuho Securities USA told Reuters. Cisco, which depends on government spending for about a fifth of its revenue, said in July it would cut 15 percent of its workforce and sell a set-top box factory in Mexico.. Cisco bulls may underestimate tough road ahead Randewich. ] Tuesday, Aug.9,2011: what changed from yesterday which warranted a more than 600 point plunge with paper stocks still over-valued and a 545 bounce off of afternoon lows? Nothing! Absolutely nothing, yet a manipulated computer-programmed churn-and-earn suckers’ rally based on fraud and b***s*** alone to keep suckers suckered, which makes for AN ESPECIALLY GREAT OPPORTUNITY TO SELL / TAKE PROFITS SINCE THERE’S MUCH, MUCH WORSE TO COME!  [ Is this some parallel universe where unfounded criticism is levied at S&P for the downgrade when theyve actually cut the pervasively corrupt, defacto bankrupt disunited states a break by not rating what america truly is; viz., junk status for the paper / liabilities / obligations that cannot and will not be paid (or the equivalent vis-à-vis what would be in worse than evermore worthless Weimar dollars or some other ponzi-like subterfuge, obfuscation). The amounts are insurmountable going forward. They point to Moodys and Fitch; yet, lets not kid ourselves, S&P is the 800 pound gorilla in this world among rating agencies and moodys, fitch have substantially diminished themselves as entities consistent with their mission and purpose and as well, their credibility. I mean, come on! Consider the pressure that was and continues to be applied. Moodys and fitch, quite frankly, folded. Chinas rating agency has already downgraded u.s. paper and theyre holding (huge amounts of that u.s. junk); and hence, against their own interest. Wake up! Wall Street closes worst week since '08 with wild day NEW YORK (Reuters) S&P on U.S. downgrade: Debt pact 'falls short' - Reuters  S&P downgrades US credit rating from AAA   S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet    What Recovery? Forbes   ‘…we cant call this a recovery. Theres no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. And while were at it, we cant ignore increasing sovereign debt problems in Europe…’  Top 3 Reasons Markets Erased the Years Gains Wall St. Cheat Sheet  1) Japan and Europe 2) Unemployment.3) Capital goods - billions of dollars in lost revenue. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen  In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis My work shows that the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER) However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as growth, is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, its never been higher. Yes, its normal for insiders to be selling some of their stocks so they can buy new yachts and some of this is pre-planned. But that ratio which has spiked recently is extraordinarily high, one might even say off-the-chart  previous‘…1) Job cuts. 2 ) ISM service-sector report. Mondays ISM manufacturing report contributed to market losses on Monday, but todays report, though equally negative, didnt quite have the same effect as markets began to level out this afternoon. The ISM service-sector index declined to 52.7% in July. The U.S. service sector accounts for three-fourths of all economic activity, and employs four out of every five U.S. workers , so a 0.5% decline speaks volumes about the state of economic recovery…’  Factory orders for June fell by 0.8% (just because they say the bad news isnt as bad as expected does not make such bad news rally material. Indeed, the huge ralleys based on now revised downward data never seem to retrace that fake data induced stock surge based thereon.    Service sector growth slowest since 2010    Moody's sets negative outlook on BNY, JPMorgan         S&P ends string of losses on tech rebound  Tech rebound? Is this some kind of a joke? Tech up today? Absolute confirmation of dire prospects worldwide since american tech is horrendous. Yet, sizzling childs play is the order of the day and credit still must be given to those [ie., Steve Jobs-Im truly glad he saved Apple, my first computer (apple IIc for word processing / data based records / forms / templates / data which I interfaced with an electric typewriter for letter quality)] who could (as he) identify such novelties as the biggest over-priced / over-valued sensations since the hoola hoop (hoopla hoops - which were pretty cheap and with some minor health benefits to boot).Take this run-up as a gift based on fraudulent wall street b***s*** alone and take this opportunity to sell / take profits / sell today if you missed in may and then go away! Nothing has been solved; maybe forestalled.  Rout spells trouble for Wall Street  / Moody's confirms U.S. rating at Aaa, outlook negative / Chinese rating agency cuts U.S. debt again / Minyanville's T3 Daily Recap: Signed Debt Deal No Cure for Sickly Market  / US auto industry uneasy after weak July sales / Fitch Unimpressed By Debt Deal, GDP; Markets Unimpressed By Fitch / US debt deal alone won't sustain AAA rating / Stocks now down for year as economic concerns grow AP    The Daily Market Report Aug 1st, 2011  PG  Relief? What Relief? http://www.usagold.com/cpmforum Late last night when party leaders and the President announced that they had reached a bipartisan deal that would allow the debt ceiling to be raised, gold dropped about 1%. Global stocks rallied in relief and briefly, ever so briefly, gold was out of favorCBO scores the package as accomplishing $2.1 trillion in spending cuts over the next 10-years, the CBO baseline also has the deficit rising $6.7 trillion over the same period. The premise apparently being that were working our way to actual cutting by cutting to slow the pace of the nations proliferate spending. In actuality and as evidenced below that CBO baseline may prove to be way too optimistic. What really lit an intraday fire under gold today was the big miss on US July ISM, which plunged to 50.9. The market was expecting a modest downtick to 55.0 from 55.3 in June The Truth About The Debt Deal: Its Pretty Much Meaningless Business Insider/ Come on! Who believes their pre-election year data, reports, b***s***? Theres desperation in the air and like never before! One commentator, Peter Shiff, to Frank Motek of 1070am Bus.Report references the sham in Washington; and regardless, points to default by way of inflation, further stating that the debt ceilings already been breached by borrowing. Moreover, he additionally states that default is inevitable by way of inflation; that the fed will be buying the evermore worthless american paper (bonds) and creating/printing evermore worthless american dollars; that theres been a quid pro quo with at least one of the 3 (S&P, Moodys, Fitch) federal licensed rating agencies, viz., of reaffirming the u.s. AAA rating in return for no prosecution surrounding their role in the S&P AAA rated worthless (fraudulent, mortgage-backed, derivative) paper securities (fraud) giving rise to the previous leg of this continuing, ongoing debacle / crisis. He finally goes on to recommend non-u.s., non-dollar denominated assets, precious metals, and alternate currencies. Initial unemployment claims rise to 418000 - Jul. 21, 2011 which bad news sparked wall street rally what total b***s***. No budget deal, celebrated Greek Plan DEFAULT! sounds like a plan!, backward looking earnings results riiiiight! Watch Out: 2011 Looks A Lot Like The Market Top In 2007 at Forbes  Sean Hanlon  / Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimcos Bill Gross told CNBC Monday.  Maierhofer: USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Huge suckers’ rally to keep the suckers suckered in this market based upon backward looking data discounted multiple times to the upside (including the apple numbers as recently as last week on ‘leaked’ expectations of ‘better than expected’, etc.), taxpayer funded QE results, and b***s*** alone. This is an especially great opportunity to sell / take profits since there’s much, much worse to come!   IT'S GOING TO HURT 'FOR LONG TIME TO COME' [ Says tiny tim geithner thanks for the heads up tiny tim  God bless us everyone!  As if we didnt already know it / feel it! Dave's Daily  'If you can keep interest rates this low this long, its inevitable cheap financing can allow companies to start cobbling each other up. Further Ben's policies allow companies like IBM to sell bonds at 1% and buy back shares with the proceeds (total paper bubble-scam). POMO is occurring almost daily and Primary Dealers can buy back their shares and pay dividends with what essentially is taxpayer money-- Why The Dow Will Plunge To 7,000 By 24/7 Wall St.    S&P Poised For Dropoff, Says Initial Jobless Claims  Forbes / Maureen Farrell  ]




A Decade of Decline in Equity Markets Faisal Humayun [ This is a must read and explains how the market’s been artificially propped, the dow relative to hard assets, ie., gold (dow/gold ratio), has actually crashed 78%, and comparable prospects for the next decade, etc.. ‘…The Dow Jones Index was trading at 11,357 levels at the beginning of the year 2000. More than a decade later (as of beginning July 2011), the index is at 12582. Therefore, the index has gained 11% in the last ten years…’ Yet, the inflationary dollar (declining) debasement rate was 31%. (-31%) {See the inflation calculator infra – and that’s just the government (inflation) numbers … reality is much worse!} Meanwhile, the frauds on wall street are churnin’ and earnin’ like never before at lightning computerized speeds enabling the high-frequency trades that are commissioned in unprecedented large volumes; a big net negative in real economic terms.]  While Washington Fiddled The Economy Burned at Forbes [ Oh come on! Let’s get real here! The economy was already burning (see infra), Washington notwithstanding! Indeed, the frauds on wall street with those contraindicated paper stock computer programmed commissioned churn-and-earn rallies would love for you to think it’s Washington only {that aw shucks, coulda’ been clear sailin’ otherwise moment; but the reality is that things are far more dire financially and economically than their window-dressed scams would indicate, though washington’s no help, incompetent, unknowledgeable, and ineffectual as they are (although fraudulent wall street, aside from their consummate scammin’, is little better and probably overly relied upon and light in those very areas one would expect to find profiency; viz., finance and economics.) Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.}  ] Check out this inflation calculator:   http://www.albertpeia.com/inflationcalculator.htm

 

 

Here’s a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif

 

 

Beneath the Market’s Swings, Some Real Cause for Worry  News  Jeff Cox August 11 (CNBC) — ‘So whether this equals, falls short of, or exceeds the financial crisis of 2008 hardly seems to matter—investors are afraid, very afraid, and the question as much as anything in the minds of many market pros will be what soothes that fear. Analyst Dick Bove at Rochdale Securities says he knows why: More restrictive capital requirements and near-zero interest rates set at the Federal Reserve [cnbc explains] that make lending neither easy nor lucrative, a trend that will make it difficult for the economy to grow. “If one thinks through these limitations it can be seen that banks must shrink their balance sheets and change their business patterns to maintain their profits. What they are unlikely to do is to expand their lending activities in order to grow the economy,” Bove wrote in a lengthy banking analysis Thursday.“However, the Federal Reserve is suggesting that the economy is unlikely to grow,” he wrote. “If the Fed is prescient, then banks are facing higher loan losses, lower loan volume, and reduced margins on a wide array of banking products. The outlook is not appealing.”“Even though the United States is able to both print and borrow money, it is as bankrupt as the Europeans,” Bove wrote. “Covering deficits and paying debt with borrowed funds, some of which is newly printed, does not constitute meeting debt service requirements.”…’

 

 


The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed
! Previous, full moon and fraudulent wall street, get this, rallies on not as bad as expected EU stress tests and better than expected google results but forget the dire consumer (recession level) consumer sentiment number ‘cause after all, consumer spending just a paltry 70% of GDP.  Think about this: short-lived Pavlov dog rally (the conditioned stimulus) on hopes for more welfare for wall street and some good results in communist China. This despite the previous failure of QE for everyone but the frauds on wall street and ultimately, though circumlocuted, at great taxpayer expense. Titans of capitalism? How ‘bout the biggest unprosecuted frauds in the world. Preposterous!  Roche 'The worst part of it  ...Obama, who vowed change, has done almost nothing to fix any of it and in fact continues most of the policies that helped get us here in the first place’  ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds on wall street ( and declares with oscar in hand that not one high level wall street exec has been prosecuted … despite ‘earning’ billions from the fraud )   I want just one person with courage enough to stand up and explain to all that these huge commissionable computerized trading volumes like never before are a net negative in a very big way … that’s a fact … that’s economic reality in real terms!   Trade deficit up, growth predictions by fed scaled down [ do you recall how many upside market points for the false, more positive growth projections by the ‘no-recession’ fed, then there’s also the costly, hyperinflationary failed QE hopes, more fed jawboning rallies the frauds on wall street off their lows to keep suckers suckered – they all belong in jail!   Housing Woes to Cause Recession in 2012, Says Gary Shilling - Peter Gorenstein  STOCKS BARELY FALL AFTER MOUNTAIN OF BAD NEWS: Here's What You Need To Know Business Insider Weisenthal Economic scenario far worse than expected (and in this pre-election year the reality is still far worse than reported), yet stocks still rallied off lows to keep suckers sucked in to this fraudulent market    Click here to see the new scariest jobs chart ever  http://www.businessinsider.com/details-from-the-awful-june-june-jobs-report-2011-7    >  See all 12 charts from St Louis Fed:  http://static8.businessinsider.com/image/4e1712edcadcbba25f030000-595-356/chart.jpg    Previous:Stocks rally on jersey-based, former Lautenberg ADP still paltry, better than expected 157,000 private jobs number and one’s got to wonder ‘who got paid’, one way or another, for the fudge. Then there’s the horrific ‘american tech’. Retail? The defacto bankrupt government’s probably buying with money they don’t have, at best; and, as with other data in these desperate pre-election-year times, plain false, falsified, fudged, spun. Previous day, all bad news … from eurozone (protugal, et als), to asia zone (china worse than expected), to america (where to begin, from defacto bankruptcy, to debased currency, to insurmountable debt / dervice, to pervasive corruption, etc.) … stocks rally on fraud and b***s*** alone. Previous, higher oil price rally, along with Netflix ‘technology rally’ … Don’t make me laugh! … Total desperation on wall street and in Washington … How pathetic! … Jobless claims at 428,000 much worse than expected; and, don’t forget, these are desperate ‘pre-election times’ when regardless of factual reality (ie., fake reports, data, as, ie., ‘wobama hometown’ corrupt chicago ISM is up as even their youth gangs are showing increased criminal activity which probably accounts for the rise; ie., meth, crack labs, etc.?) data / reports are fudged / faked / spun. Foreclosure, distressed sales up, at least on paper with contracts signed, so no surprise nor reason to cheer here, as markets worldwide jump on the american crazy train for a short-lived bounce as all problems remain. This is the same month end (and quarter, half) spurt / window dressing based on b***s*** alone to keep the suckers suckered and an especially great time to sell / take profits since there’s much worse to come! Talk about milking the greek crisis for the umpteenth time a so-called solution (and there are loads of greecy scenarios worldwide …  I don’t think so and neither does Schaeffer who says: ‘…even once such a package is passed it only buys time. Actually fixing the fiscal condition of Greece is not something that can be solved in a matter of weeks, or even months…‘ but it’s great press for the churn and earn and to keep the suckers suckered.  Technology rally? Defacto bankrupt american technology is horrendous but great sizzle for the new fraud as in the dotcom bust days. Then there’s the greasy b.s. new greecy b.s. factor. The rally into the close and the previous so-called (4 day) ‘rally’ was based on b***s*** alone to keep the suckers suckered and for ‘smarter money ‘ along with the frauds to sell into. This is an especially great opportunity to sell / take profits while you still can since there's much worse to come!    Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher. Yes, it’s normal for insiders to be selling some of their stocks so they can buy new yachts and some of this is pre-planned. But that ratio — which has spiked recently — is extraordinarily high, one might even say off-the-chart.       Wall Street 'Vastly Underestimating' Risk of Debt Default  Forbes / Robert Lenzner   StreetTalk ‘ “Meet the Press” climaxed Sunday  with a startling market prognostication from David Brooks, conservative columnist for the NY Times. The risk of a debt default over the combustible issue of the Medicare deficit hangs over the course of the stock market. Buyers Beware!“I was up in Wall Street  this week,” Brooks said. “They’re vastly underestimating the source of piolitical risk here. We could have a major problem, I think, either this summer or the next couple years. And I’d be worried about investing too much in the market. That’s my financial advice.”…’   Another Financial Crisis Is On The Way, Mobius Says      Market Crash 6/30/11?Technical indicators suggest market collapse may begin by June 30th Dennis Slothower is one of the world’s leading technical analysts. He’s one of the few advisors whose readers completely avoided ALL losses during the disaster that was 2008. And now he’s issuing another dire warning. His technical indicators suggest that the market manipulation we’ve seen over the last several months is about to come to an end…and that means thousands of investors are about to get clobbered. This correction could begin as soon as June 30th– so it’s important that you take action now to prepare yourself. StealthStocksOnline.com        STOCKS HAVE BIG RALLY AFTER PILES OF UGLY NEWS: Here's What You need To Know    Harry Dent: “Major Crash” Coming for Stocks, Commodities Already Topping Out           24 Signs Of Economic Decline In America ‘The US is in the middle of a devastating long-term economic decline..’ ]  States face shortfall for retirees (WP)   Public workers’ retirement funds had a gap of $1.26 trillion at the end of fiscal 2009    Study: Affordable rentals scarce  (WP)      Poll: For Obama, low marks on Afghan war (WP)  Fuel prices cut into Obama popularity  (WP) They’ve used the contrived mideast turmoil and their wars to obfuscate and divert attention from their failure.    Davis ‘This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘  Dave's Daily  'If you can keep interest rates this low this long, its inevitable cheap financing can allow companies to start cobbling each other up. Further Ben's policies allow companies like IBM to sell bonds at 1% and buy back shares with the proceeds (total paper bubble-scam). POMO is occurring almost daily and Primary Dealers can buy back their shares and pay dividends with what essentially is taxpayer money-- Why The Dow Will Plunge To 7,000 By 24/7 Wall St.   S&P Poised For Dropoff, Says Initial Jobless Claims  Forbes / Maureen Farrell   

 

 

 

Take A Lesson From 2007 And Sell Stocks Now at Forbes, Sean Hanlon August has given new meaning to the dog days of summer as the broad equity market has retracted all year-to-date gains and dropped into negative territory, all within the first couple weeks.

As written in my previous Market Commentary on July 20, our research uncovered potentially dangerous activity in the equity markets that could lead to a break and high volatility.  We presented this in that Market Commentary by the chart in Figure 1 below.  Using our proprietary research methodologies, we elected to make a major tactical move on June 17.

That move reduced all equity and high-yield bond exposure, creating 50% cash or cash equivalent allocations across all portfolios. This defensive move was shown to be prudent as volatility erupted and considerable downside was experienced in equity markets in the first week of August, as shown in Figure 2.

Figure 1 (click image to enlarge.)

http://blogs-images.forbes.com/advisor/files/2011/08/11.jpg

With this heightened volatility, we were observant that this market behavior was eerily similar to market conditions in 2007. To elaborate on this point, lets compare the S&P 500 Index for 2007 vs. the first seven months of 2011.  As you can see below in Figure 2, 2007 experienced high volatility yet remained range-bound in an upward trend (represented by the overlaid black bands).

Figure 2 (click image to enlarge.)

http://blogs-images.forbes.com/advisor/files/2011/08/2.jpg

 

The first half of 2011 maintained a range-bound upward trend until finally breaking sharply to the downside in the first week of August.

Of course now everyone wants to know what happens next?  Our research has no special predictive power of what may happen now that the trend has been broken. Instead, what our research is telling us is to remain extremely cautious at this time.  We have since moved client portfolios to almost 100% money markets and/or cash equivalents in all accounts.  We do maintain some high quality bond positions.

You may think But I cant make any money in money markets, they pay nothing these days!  True enough, but there are many times in ones investing lifetime where the best investment is to simply maintain principal.  That principal amount will be able to potentially purchase more in the not too distant future.

A simple example is stocks.  On April 29 of this year, $1,340 purchased the equivalent of one S&P 500 Index share.  Today, to own those same companies that make up the S&P 500 Index, the cost is below $1,200, yet the same amount of dividends is being received.  In this period preserving principal has resulted in increased investment purchasing power, income and potentially increased return.

 

Related article: Watch Out: 2011 Looks A Lot Like The Market Top In 2007

 

 

 

 

Fed lowers GDP forecast, raises unemployment projections, mulls more inflation producing, failed, futile, wall street fraud-friendly action to the detriment of all others which rallies those ever more worthless as with dollars ‘pieces of paper’ (actually not even, just ‘over-counted/supplied computerized ‘ledger’ entries) for the ubiquitous as in the last financial fraud debacle) for the continuing High-Frequency-Trade churn-and-earn (Reuters)

 

 

 

israel Considers Pre-Emptive Attack On Iran Nov 2nd, 2011 (SkyNews) — israeli Prime Minister benjamin netanayahu is trying to rally support in his cabinet for an attack on Iran, according to government sources. [ I think the world must consider and rally support for a pre-emptive attack on war crimes nation, illegal nukes possessor, international law / u.n. resolutions scofflaw israel as a positive, final solution to world strife, particularly in the Mid-East! Such a final solution is long overdue! Their bellicosity, militancy, greed / bloodthirst, and uncivilized / lawless behavior should no longer be tolerated by the global community! ]

 

 

 

 

Game Over Berlusconi? Italian Anti-Crisis Bill FailsEurope's core, call it Germany, is now caught in a war of reverse attrition on three fronts: with Greece, with Italy, and as of today, with France. And unfortunately for the European monetary union, Europe, call it Germany, is losing. While the focus continues to be on G-Pap for the second day in a row following his shocking referendum announcement, the real diversion remains Italy, where the government is in as much of a state of chaos as that in Athens, and whose bonds, while not yet trading at Greek levels  (remember when the Greek 1 year hit 100% two months ago? Today it is at 225%... and tomorrow the two year will be at 100%), are far, far greater in amount, and the only thing preventing their collapse so far has been the ECB, whose monetizing assistance has been contingent on Italy passing and enforcing austerity measures to deal with its runaway debt to GDP of over 120%. Unfortunately, when BTPs open for trading in 7 hours, the ECB bid may not be there, or any bid for that matter, because as the WSJ reports, "Italian Prime Minister Silvio Berlusconi on Wednesday failed to issue growth-boosting measures demanded by European Union authorities ahead of the Group of 20 summit, raising further doubts about the government's willingness to pass economic reforms aimed at restoring investor confidence in the country." Now that the ejection of Greece is virtually certain, perhaps it would be a prudent idea for what little remains of the healthy European core to kick out all the stragglers before everything becomes infected, and before French bonds trade at yields indicative of a sub-IG credit, thus ending the myth of any European union for good?

 

Will Spiking Vol Drag Global Growth Down?While we grow weary of endless talking-heads pointing to contemporaneous VIX charts as somehow indicative of why equities are up/down/sideways and the lack of comprehension of the non-directional bias of what is simply a measure of dispersion, we do recognize the critical way that volatility-spikes (and other vol-related indicator divergences) reflect short- and medium-term market uncertainty. Having modeled business cycles through the eyes of realized and implied volatility, we were heartened to read Goldman Sachs excellent discussion of the macro-economic impact of uncertainty shocks and why the post-2009 vol spikes leave global growth at much greater risk of significant downside. Critically, they note that while previous episodes of vol-spikes have been relatively well-contained, current risks seem much less tightly defined with unusually frequent bouts of extreme volatility, leading to much longer-lasting impacts on growth than normal. Furthermore, the current spike in vol is both large and prolonged enough to suggest similar empirical expectations with peak negative implications likely in early 2012.

Egan Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To 77% Of EquityBecause like with insolvent sovereigns and the law of communicating vessels, there rarely is just one cockroach.

Guest Post: MF Global Shines A Light On Monetarism's Incapacity To Enhance The Real Economy The temptation to compare any financial institutions failure to those that preceded the 2008 crisis and panic are reasonable. It is easy to classify MF Global as 2011s Lehman event, just as it was to use the same term to describe Dexia a few weeks ago. The use of the term this years Lehman is somewhat misplaced simply because its users are looking for an event that kicks off another crisis or panic. Instead of using Lehman to describe a potential inflection point that propels the crisis into panic, it might be better to see MF Global as AIG. The comparison to AIG is not to say that MF Global was as interconnected, that its failure will be as devastating, or that it is the straw that breaks the European camels back. The urge to see the past in the present is historically valid, but it will never be exactly alike (Mark Twain had this right). Rather I think the comparison is useful in that AIG taught the wider world what was really rotten at the core of modern finance, namely hidden risks that were shockingly existential. MF Globals failure importantly shows that none of the lessons have been heeded in the days since, providing a somewhat unique window into the real dangers that still lurk hidden in the shadows. More than that, though, MF Global demonstrates an obvious shortcoming of the financial system as it relates to the real economy.

 

Referendum Day To Decide Greek's Future Is 12/4UPDATE: ES -5pts, EUR -25pips *MERKEL SAYS EU PREPARED FOR ANY OUTCOME IN GREECE REFERENDUM

Just headlines, via Bloomberg, for now as Juncker and Sarkozy play good-cop / bad-cop:

*SARKOZY SAYS REFERENDUM WILL DECIDE GREECE'S EURO FUTURE

*SARKOZY SAYS REFERENDUM WILL BE AROUND DEC. 4 OR DEC. 5

*SARKOZY SAYS CAN'T HAVE 'PROLONGED PERIOD OF UNCERTAINTY'

*SARKOZY SAYS 'WE ARE READY TO AID GREECE'

*SARKOZY SAYS GREECE WON'T GET `SINGLE CENT' WITHOUT ENACTMENT

*JUNCKER SAYS AID PAYMENT DEPENDS ON GREEK VOTE

*GREECE HAS `LOST 8 BILLION. THAT IS A PITY,' JUNCKER SAYS

 

Initial reaction is ES selling off 3-4pts and very slight downtick in EUR

 

Citi: "The Bear Market Rally Is Behind Us; We Anticipate A Move To 1,000-1,015"While we are the last to put much weight in the predictive power of technical analysis, lately it has become all too clear that the only thing more worthless than technicals is fundamentals. Which unfortunately means that with the lowest common denominator (and marginal price setter) in the market being robots, in turn programmed by 20 year old math Ph.Ds who only know charts, it may be time to revise our skepticism. Enter Citigroup's Tom Fitzpatrick, who together with Goldman's John Noyce, are the two best sellsiders in this particular field. In short, neither has much good to sayl in fact when it comes to near-term bearish sentiment, it will be hard to find someone as pessimistic as Fitzpatrick, even among the Janjuahs and Rosenbergs of the world. Citi's conclusion from a just released note should be enough to scare anyone who believes that the bear market rally started just about a month ago will persist: "While we respect the October monthly close on the S&P 500, we did not close above the 12 month moving average...we believe the bear market rally is behind us and anticipate a move towards the 1,000-1,015 target over the weeks and months ahead." And while charts will never be a good guide as to what words may come out of G-Pip's mouth next, with so much market action these days being purely backward looking, we would urge caution.

 

RANsquawk Market Wrap Up - Stocks, Bonds, FX etc. 02/11/11

Ruinous Symbiosis Between Congress And The Fed Posted by: testosteronepit Post date: 11/02/2011

 

MF Global Client Theft Estimate Doubled To $1.5 Billion?Even as we hear rumblings that the MF fire is spreading, and the associated auditor of the now infamous former Primary Dealer is about to get in serious hot water, the bankrupt company itself continues to dig itself an ever deeper grave. Because according to a just filed motion by the MF Global liquidating trustee, it seems that the gross criminal activity by the company may have been orders of magnitude bigger than anyone has expected. To wit: "As a result of the apparent segregation violations and the suspension of clearing privileges, more than 150,000 customer accounts essentially were frozen on October 31, 2011, of which more than 50,000 accounts were regulated commodities customer accounts. The CME estimates that MFGIs current segregated funds requirement is approximately $5.45 billion. Moreover, the total amount of MFGI customer segregated funds on deposit at the CME is approximately $2.5 billion, and the clearing-level segregated collateral is approximately $1.5 billion or approximately 60 percent of the MFGI customer segregated funds on deposit at the CME." Doing some quick inverse addition and we get a (w)hole of $5.45 less $2.5 less $1.5 or $1.45 billion. In other words, the theft by MF Global was not stealing hundreds of millions from its customers: it has stolen a whopping $1.5 billion! For those confused, this is not a rogue loss of $1.5 billion, something which was enough to send UBS' Kweku to prison. This is outright theft resulting from illegally commingled accounts. Our only question is will $1.5 billion in theft be enough for the first real perp walk of an Obama-friendly Wall Street executive?

 

And In The Meantime Back In RealityAs the market marinades in the latest confusing Bernanke Q&A aftermath, we get two very disturbing headlines. The first:

This goes hand in hand with the disaster that was the overnight news on the EFSF pulling a meager 3 billion bond auction. If you gave us Jefferies' rolodex, we could probably raise more for a bankrupt MF Global in ten minutes (kinda like what they did). Oh well, so much for Europe.

And in other news, and confirming what we have been saying over the past two weeks, namely that foreigners are dumping US bonds to shore up emergency balance sheet capital, we get the following confirmation from Dow Jones:

That's right: government.

 

Mortgage Spreads Decompress But QE3 Divergences Start To Get Priced InUPDATE: The dollar is starting to drift back higher - diverging from stocksUPDATE 2: Added Chart to show TSYs  at low yields of day, dollar rallying, and still ES near highs of dayAs Bernanke was asked for the umpteenth time on LSAP and more specifically MBS purchases, the initial modest compression in mortgage spreads reversed and widened. However, TSYs and stocks diverged very notably as we suspect an initial kneejerk reaction to QE3 saw both being bought (and the USD weaken)...how long the half-life in this divergence?

 

 

Watch Ben Bernanke's Press Conference LiveReady to be disappointed by the Chairman announcing a whole lot of nothing, but doing it in a very Greenspanesque manner? Here it is: the live webcast from the Bernanke press conference which is about to begin.

 

Fed Slashes Economic Outlook, Raises Inflation And Unemployment Rate ProjectionFED OFFICIALS SEE 2011 GDP 1.6%-1.7% VS 2.7%-2.9%
FED OFFICIALS SEE 2012 GDP 2.5%-2.9% VS 3.3%-3.7%
FED OFFICIALS SEE LONGER-RUN GDP 2.4%-2.7% VS 2.5%-2.8%
FED OFFICIALS SEE 2011 UNEMPLOYMENT 9.0%-9.1% VS 8.6%-8.9%
FED OFFICIALS SEE 2012 JOBLESS ESTIMATE 8.5%-8.7% VS 7.8%-8.2%
FED OFFICIALS SEE 2013 JOBLESS ESTIMATE 7.8%-8.2% VS 7.0%-7.5%
FED OFFICIALS SEE LONGER-RUN JOBLESS 5.2%-6.0% VS 5.2%-5.6%

 

Guest Post: Boots On The Ground In Fukushima, JapanI had to come see for myself. What does the worst radiation and natural disaster in history look like? Chaos. Devastation. Cataclysm. Right? Actually none of the above. Fukushima and the surrounding prefecture is as quaint and picturesque as ever. Eight months on, there are hardly any signs of a nuclear accident or major earthquake, at least on the surface. I was half-expecting the town to have a permanent decontamination facility with radiation detectors as far as the eye can see, and legions of workers in biohazard suits. After all, this town of nearly 300,000 is now the worlds largest dirty bomb. But riding through the surrounding area and walking around the streets today, Fukushima looks like any other small(ish) town. Schools, temples, shops, and restaurants everything is normal. In fact, its almost eerily normal, like something out of an old Hitchcock film.

Credit vs Equity In US And Europe Today Suggests Stress AheadPresented with little comment but there is a very serious disconnect between European credit markets (deteriorating into the close) and equities and now US is starting to crack with HY markets gapping aggressively wider. The volatility of the last couple of weeks, combined with last week's hedge capitulation, is exaggerating the moves but for sure risk-appetite is disappearing very quickly.

 

Goldman, Which Has Been Snubbed For The Second Time In A Row By FOMC, Shares Its Take On The Fed StatementFirst Goldman does not get its IOER cut, so desired back in September; now the Nominal GDP targetting which was the firm insinuated was coming, (and was insanity pure and simple) was not even mentioned. Jan Hatzius must be sweating: he is losing his monetary policy grip. In the meantime, as he sweats, here is his take on the FOMC statement.

 

 

Food stamp rolls rise 8.1% in past year Wall Street Journal | Nearly 15% of the U.S. population relied on food stamps in August



Dave’s Daily: Market Volatility Remains Crazy 11-2-11    http://www.etfdigest.com   ‘You dont need me to tell you how difficult its been recently to gain comfort with and maintain portfolio positions. The swings in action and mood have driven a lot of investors away. Today I updated one of our Top 10 ETF sectorsIndustrials. The previous update was in early July. What stood out from this and other equity ETF sectors was the dramatic declines in AUM (Assets Under Management) for each ETF. AUM routinely had dropped over 40% and trading volume for many had increased by an equal percentage with the latter indicating selling. This is similar to equity mutual fund redemptions and debunks the notion investors are just switching to ETFs. The bottom line is all this volatility is a major turn-off.HFTs have added to this volatility and shortly well be featuring an explanation of how these programs work in real time plus how their presence is affecting markets.Wednesdays stock market about face was occasioned by the often unreliable ADP report which showed private payrolls adding 110K which beat estimates of 100K. However, the previous report was revised to 116K which means a decline which wasnt well mentioned by the financial media. Bulls also hoped the Fed might launch QE3 which isnt happening yet. But more Fed governors are clearly anxious to implement it which energized bulls. Its unfortunate that these tools seem transitory since they only pump stock prices but empirically havent relieved joblessness or helped housing. Its not positive the Fed reduced GDP growth for 2011 to 1.6% and lowered 2012 to 2.5-2.9%. Bulls can ignore poor data as they believe QE3 is then more certain. The Fed also remained pessimistic regarding unemployment stating it should remain at these levels, and improving only slightly in 2012.Market leaders Wednesday included financials (XLF) which were battered by euro zone news leading to a short squeeze absent further news.Meanwhile, across the pond, EU leaders are plenty pissed with Papandreous ill-timed referendum gambit. Lets remember, hes a socialist which helps explain much of this thinking and Greeces overall policies. EU leaders are trying to fence-in Greece telling them they have no choice but to accept the plan period. If Greece seeks to go their own way theyll get their wish putting them back on the drachma.Gold advanced while the dollar fell slightly. Bonds were slightly weaker while oil advanced on bullish forecasts and other commodities were mixed.Volume was below yesterdays sell-a-thon and breadth per the WSJ reversed to positive…’

 

Break-up big banks: send BofA and Citi to minor leagues CNBC | Too big to let live? Mike Mayo wants the bigs broken up before they wreck entire financial system

 

Fed lowers growth, raises unemployment forecasts Nov 2nd, 2011 (AP) — The Federal Reserve has lowered its growth forecasts and raised its unemployment projections, suggesting the economy has a longer path to recovery.The central bank’s latest forecast released Wednesday predicts that the economy will grow just 1.6 percent to 1.7 percent for all of 2011. For 2012, growth will range between 2.5 percent and 2.9 percent. Both forecasts are roughly a full percentage point lower than the Fed’s projections from June.The unemployment rate has been stuck near 9 percent for more than two years. The Fed doesn’t see that changing this year. It predicts it will fall between 8.5 percent and 8.7 percent next year. In June, the Fed had predicted unemployment would drop next year to as low as 7.8 percent.The new forecast takes into account the substantial slowdown in growth that occurred earlier this year.[source]

 

Fed Chief Defends Actions On Interest Rates, Inflation Nov 2nd, 2011 (CNBC) — Federal Reserve Chairman Ben Bernanke defended the central bank’s record on keeping inflation low, in the face of criticism that the central bank’s weak-dollar policies have driven up consumer prices.Speaking at a post-Fed meeting news conference, Bernanke rejected claims that the Fed’s various moves to keep interest rates low and monetary policy accommodative will lead to high levels of inflation.…Bernanke refused to get too far into the politics but said the committee is comfortable with the current level of inflation, which is around 2 percent excluding volatile food and energy prices but 3.9 percent including gasoline, groceries and similar items.[source]

 

Bernanke: Fed ready to purchase more MBS Nov 2nd, 2011 (HousingWire) — Federal Reserve Chairman Ben Bernanke said the central bank may consider purchasing more mortgage-backed securities to help further stabilize the economy and the troubled housing sector if growth is insufficient in coming quarters.Speaking at a press conference following the most recent monetary policy decision from the Federal Open Market Committee, Bernanke said the Fed has taken the aggressive actions necessary to try and stimulate growth.[source]

 

Top Gold Forecasters See Rally Until March Bloomberg (Nov 2) — The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008 and reach a record by March because economic growth is stagnating and Europe’s debt crisis is unresolved.Futures traded in New York may rise 13 percent to $1,950 an ounce by the end of the first quarter, according to the median of estimates compiled by Bloomberg. The predictions are from eight of the top 10 analysts tracked by Bloomberg over the past eight quarters. “When we look at gold five years from now, we will say gold was wildly cheap,” said Jason Schenker, the president of Prestige Economics LLC in Austin, Texas, and the fifth-best forecaster tracked by Bloomberg. “What happens to gold is going to hinge on what happens to the dollar, and that is going to be influenced by what happens in Europe and monetary policy.” [Source]

 

No change on policy from FOMC, but they noted continued downside risks. Dove Evans dissented. Nov 2nd, 2011

 

The Daily Market Report Nov 2nd, 2011 10:22 by News

Europe in Chaos (USAGOLD) Gold has rebounded to approach the recent highs on ongoing uncertainty in Europe. Greek Prime Minister Papandreou is sticking by his call to submit the latest bailout deal to the citizenry, and he now has the backing of his cabinet. It is a political gamble to be sure, but Papandreou is fighting for his political life and rational thought frequently goes out the window in such circumstances. The Greek newspaper Eleftherotypia dubbed Mr. Papandreou as The Lord of Chaos.Certainly he has angered much of the rest of Europe, and is expected to face the ire of German Chancellor Merkel and French President Sarkozy in advance of the G20 summit. The referendum plans delay implementation of measures that may prove critical to other EU countries. Italy leaps to mind immediately, given the continued rise in their borrowing costs, which has been exacerbated by the Greek uncertainty. If Italy plunges into the abyss, as New York Times economist Paul Krugman is anticipating, all bets are off. The EFSF, even geared up to 4x is not big enough to save the Continents third largest economy.It also raises uncertainties in the banking industry, as financial institutions have already started down the path of capitalizing for a 50% haircut on Greek debt. If the impending Greek default turns disorderly, the haircut could be much bigger; as in 100%. And again, if contagion strikes Italy in any significant way, its game-over. Krugman may be right when he says that the only way for Europe to avert a financial apocalypse is for the ECB to change its spots, fast. That means print euros with abandon. If the Germans continue to oppose such measures, its important to remember that the true lender of last resort to the world is our very own Fed. If the ECB and/or the Fed concede once again that liquidity is the only answergold will likely be off to the races.There are some lingering expectations that the Fed may announce QE3 today, with a likely focus on mortgage backed securities, at least initially. However, I believe that the October rally in stocks bought the Fed some more time. QE3 may indeed be forthcoming, but probably not today. Theyll hold steady on rates and perhaps tweak their language to be a little more accommodative.Heightened tensions in the Middle East are likely contributing to the interest in gold as well amid reports that Israel may be preparing a preemptive strike against Iranian nuclear facilities. Such concerns crop-up periodically and have never really amounted to anything, but I have no doubt that Israel feels threatened by Iran. Given that, I dont think such reports can be completely dismissed.

 

Israel Considers Pre-Emptive Attack On Iran Nov 2nd, 2011 (SkyNews) — Israeli Prime Minister Benjamin Netanyahu is trying to rally support in his cabinet for an attack on Iran, according to government sources.The country’s defence minister Ehud Barak and the foreign minister Avigdor Lieberman are said to be among those backing a pre-emptive strike to neutralise Iran’s nuclear ambitions.[source]PG View: Heightened geopolitical tensions in the Middle East are undoubtedly contributing to the bid in gold.

 

Greek PM faces showdown talks with Merkel, Sarkozy Nov 2nd, 2011 (Reuters) — Greece’s prime minister faces a grilling from the leaders of Germany and France on Wednesday after fighting to win the backing of his cabinet to hold a referendum on a 130 billion-euro ($178 billion) bailout package.French President Nicolas Sarkozy and Germany’s Angela Merkel summoned George Papandreou for crisis talks in Cannes, before a G20 summit of major world economies, to push for rapid implementation of measures to tackle the euro zone debt crisis, which Athens has thrown into doubt.“This announcement took the whole of Europe by surprise,” Sarkozy said on the steps of the Elysee Palace in Paris. “The plan … is the only way to solve Greece’s debt problem.”[source]PG View: Yeah, Mer-kozy will read G-Pap the riot act for queering the bailout “deal”, but riots are exactly what Greece will have if they try and quash the referendum now. With G-Pap fighting for his political survival, I’m not entirely sure he’s thinking all that rationally right now anyway. Berating will likely fall on deaf ears.

 

Eurodämmerung Nov 2nd, 2011  News By Paul Krugman (NY Times Blogs) — Things are falling apart in Europe; the center is not holding. Papandreou is going to hold a referendum; the vote will be no. Italian 10-years at 6.29 at pixel time; that’s a level at which the cost of rolling over the existing debt will force a default, even though Italy has a primary surplus. And with everyone simultaneously pushing for fiscal austerity, a recession seems almost certain, aggravating all of the continent’s problems.I’ve been charting this trainwreck for a couple of years, and am feeling too weary to trace through it again right now. Let’s just say that the euro was an inherently flawed idea that can work only given a strong European economy and a significant degree of inflation, plus open-ended credit to sovereigns facing speculative attack…The question I’m trying to answer right now is how the final act will be played. At this point I’d guess soaring rates on Italian debt leading to a gigantic bank run, both because of solvency fears about Italian banks given a default and because of fear that Italy will end up leaving the euro. This then leads to emergency bank closing, and once that happens, a decision to drop the euro and install the new lira. Next stop, France.[source]PG View: This is indeed a pretty “apocalyptic” prediction from Mr. Krugman. His solution starts with the ECB “changing its spots”. Meaning, print euros like mad. And while that presents a whole hosts of problems as well, it may in fact be the lesser of many evils.



 

Fed lowers GDP forecast, holds policy steady Reuters | Federal Reserve raised projections for unemployment, and suggested EU crisis posed risks to U.S. economy.

 

 

 

Market Recap: Banks Rally Back, Fed Outlook Worsens Wall St. Cheat Sheet ‘November 2, 2011, Markets closed up on Wall Street today: Dow +1.53% , S&P +1.61% , Nasdaq +1.27% , Oil +0.17% , Gold +1.45% .

On the commodities front, Oil climbed slightly to $92.35 a barrel. Precious metals were also up, with Gold climbing to $1,736.60 an ounce while Silver climbed 4.37% to settle at $34.16.

Hot Feature: Banks Expand Lending, Consumer Debt Reaches $11.2 Trillion

Todays markets were up because:

1) Greece. Though Greeces referendum on austerity measures still has the potential to seriously screw up the euro-zones plan to combat the regions ongoing debt crisis, an integral part of which is a 50% writedown on Greek debt meant to help the nation avoid default, the picture isnt so grim as it seemed yesterday. Several high profile meetings are taking place in Cannes today, where global leaders are gathered for a G-20 summit scheduled to begin tomorrow. Though all eyes are still on Greece, the appearance of a united front tackling the issue before there even is an issue has investors skittish, but not yet running for the hills. Greek Prime Minister George Papandreou, though it was his call for the referendum that created the mess, feels assured that his people will ultimately see the necessity of the austerity measures and the bailout, allowing everything to go forward as planned.

2) Fed. Late in the day, Federal Reserve officials announced their lowered outlook for U.S. economic growth in 2012, forecasting that unemployment will average between 8.5% and 8.7% by the final three months of next year. While Fed Chairman Ben Bernanke announced no new policies, he left the door open for more easing down the line, saying that the Fed is prepared to take further action to sustain the economic recovery.

3) Banks. After two days of sharp declines, markets were in the mood to rally today, with banks reaping the rewards. Bank of America started the day higher and held onto a 5% gain throughout, while JPMorgan , Citigroup , Wells Fargo , Goldman Sachs , and Morgan Stanley all tacked on about 3%. Its fair to say Bank of America gained an extra boost from an announcement yesterday that it would not be charging debit-card users $5 per month afterall. Of course, that means the bank will have to make up the billions of dollars in revenue it will lose because of new debit-card regulations some other way, but that wasnt enough to spoil it for investors…’

 

 

Dividend Futures: A Rocky Road Ahead     http://politicalcalculations.blogspot.com/2011/11/dividend-futures-rocky-road-ahead.html  ‘…we expect that the U.S. economy will begin to slow significantly in the second quarter of 2012, based upon dividend futures data for the S&P 500…’

 

 

 

STOCKS JUMP AND THERE'S STILL NOTHING SOLVED IN EUROPE: Here's What You Need To KnowBusiness Insider Sam Ro, On Wednesday November 2, 2011, ‘So, the earth-ending Greek referendum is still on. But stocks managed to recover some of yesterday's losses.

First, the scoreboard:

Dow: +177.8 pts, +1.5%
S&P 500: +19.6 pts, +1.6%
NASDAQ: +33.0 pts, +1.3%

And now, the top stories:

 

Fed foresees far weaker growth than it had earlier

 

 

Train Reading: Lessons Learnedat The Wall Street Journal Mark Gongloff

Welcome to Americas lost decade The Atlantic

For the past year, the US has had the best equity returns in the G20 FT Alphaville

The market is just one big stupid ETF  Josh Brown

The market may be one big stupid ETF, but thats no excuse Abnormal Returns

Greece: the debtor that roared Yves Smith

Jon Corzine forgot the lessons of LTCM Roger Lowenstein at Bloomberg

Bank of America learns it should be more subtle about milking customers Slate

Hewlett-Packard: todays most hated stock Institutional Investor

Cains getting the attention, but Romney still has huge Intrade lead Bespoke

This is the beginning of the end for the NCAA Grantland

 

 

 

Bank of America Drops Plan for Debit Card Fee New York Times | Reversal follows a huge backlash from customers.


Two Financial Nukes Explode Greg Hunter | Two monster nukes exploded on the financial landscape.


 

Top Gold Forecasters See Rally Until March Bloomberg | The most accurate forecasters say gold will rebound from its biggest monthly plunge since 2008.


 

US Plans To Issue $846 Billion In Treasurys In The Next 6 Months, 35% More Than Previous Year Zero Hedge | Here is the Treasury’s just released schedule…


 

Lawmakers to Propose Transaction Tax for Financial Firms Modeled on Europe Bloomberg | Two U.S. lawmakers will introduce measures to impose a transaction tax.

 

 

12 Reasons To Be Extremely Pessimistic About The Direction That The Economy Is Headed    The American Dream
November 2, 2011 ‘Do you want to feel optimistic about the U.S. economy?  If so, you might not want to read the rest of this article.  In many areas of the United States today, you can almost smell the fear and the anxiety in the air.  Survey after survey has found that the American people are extremely pessimistic about the direction the economy is headed.  In fact, many recent surveys have found that economic pessimism is at the highest levels ever recorded.  There has been an astonishing loss of faith in the system.  In general, people are extremely dissatisfied with how things are going right now, and they do not believe that things will get better any time soon.  When the majority of the population starts losing hope like that, it creates a very unstable economic environment.  Once people are gripped by desperation, they start behaving much differently.  Desperate people do desperate things, and we are already starting to see this in many parts of the country.

It would be great if there was some reason to be optimistic about things, but our leaders continue to pursue the same failed policies that got us into this mess in the first place.

The statistics that you are about to read should alarm you.  The American people have gotten it into their heads that things are bad and that they are going to get even worse.

Unfortunately, the American people are correct about that.

The following are 12 reasons to be extremely pessimistic about the direction that the economy is headed right now.

#1 A big chunk of the American people are flat broke.  According to one recent survey, one-third of all Americans say that they have absolutely no spare cash.

#2 The budgets of American families are being stretched incredibly thin and the savings rate is going down again.  In fact, the savings rate in September was the lowest that it has been since December 2007.

#3 Back in 2001, Gallup began asking Americans about how they feel about the state of their own personal finances.  In October, Gallup once again asked this question, and 22 percent of the respondents rated their personal financial situations as poor.  That is the highest number that Gallup has ever seen.  In addition, the gap between the number of Americans that said that their finances were getting worse and the number of Americans that said their finances were getting better was also the largest that Gallup has ever seen.

#4 Overall, Americans are very depressed about the state of the U.S. economy.  According to a recent Associated Press-GfK poll, 43 percent of all Americans believe that the economy is in very poor shape.

#5 Big corporations continue to lay off more American workers.  For example, Whirlpool has just announced that it will be slashing 5,000 more jobs in the United States and Europe.

#6 Americans seem to have an incredibly dim view of the job market.  One recent survey discovered the following.

This month, just 9% of Americans would rate the job market of their region of the nation as good while 67% would rate it as bad and one-quarter (24%) say it is neither good nor bad.

#7 If nearly all Americans believe that something bad is going to happen, does that make it more likely that it actually will happen?  A recent IBOPE Zogby Interactive Poll found that 95 percent of all Americans are somewhat concerned or very concerned that we are headed for a double-dip recession.

#8 The American people are also overwhelmingly pessimistic about the housing market.  In fact, the same IBOPE Zogby Interactive Poll referenced above found that 89 percent of all Americans are somewhat concerned or very concerned that there will be an increase in foreclosures over the next two years.

#9 Older Americans tend to be cranky in general, but the amount of pessimism that they are exhibiting about the economy right now is absolutely stunning.  The following comes from a recent article in the Huffington Post.

Older workers are gloomier about the economy now than they were last year.

Nearly two thirds of workers older than 50 first surveyed by AARPs Public Policy Institute in 2010 said things had gotten worse by the time the senior lobbying powerhouse followed up in August. Fewer than one in 10 said their view of the economy had improved. The rest said things had stayed the same.

#10 The consensus among the American people seems to be that the economy will get even worse leading up to the election in 2012.  The following is what one recent telephone survey discovered.

By a 49%-35% margin, Americans say they expect the U.S. economy to worsen between now and the November 2012 presidential election.

#11 The U.S. national debt is an anchor around our necks that just gets heavier and heavier as time goes by.  The U.S. government is now about 15 trillion dollars in debt, and a recent Allstate-National Journal poll discovered that 79 percent of all Americans believe the federal debt and deficit have a meaningful impact on their personal finances.

#12 The financial crisis in Europe just seems to get worse by the day.  The United States is already teetering on the edge of an economic disaster, and if Europe experiences a big time financial crash it seems extremely unlikely that we would be able to avoid another major recession.

 

Things simply do not look very promising for the economy right now.

As I wrote about recently, there are a lot of signs that the American people are already extremely angry and frustrated by what is happening to the economy.

So what is going to happen if things get significantly worse?

Unfortunately, there simply are not any quick fixes which are going to put us back on course.  The consequences that we are experiencing now are the result of decades of bad decisions.  The American people kept sending incompetents, con men and charlatans back to Washington D.C. over and over and over and now we are going to pay the price.

The prosperity of the last 30 years was a false prosperity.  We squandered our national inheritance and we lived the high life by piling up mountains of debt unlike anything that the world has ever seen before.

In the end, there is always a very high price for living for today at the expense of the future.  Tomorrow always ends up arriving way too soon, and future generations will curse us for being so foolish.

The party was great while it lasted, but it is coming to an end.

A whole lot of economic trouble is on the horizon, and it is going to be very, very painful.’

 

(11-2-11)    Dow  11,836   +178   Nasdaq  2,639  +33   S&P 500  1,238  +19   [CLOSE- OIL $92.56 (-54% for year 2008) (RECORD TRADING HIGH $147.27) GAS $3.65  (reg. gas in LAND OF FRUITS AND NUTS  $3.94 REG./ $4.04 MID-GRADE/$4.14 PREM./ $4.22  DIESELL) /  GOLD $1,729 (+24% for year 2009) / SILVER $33.72 (+47% for year 2009) PLATINUM $1,586 (+56% for year 2009)  Metal News for the Day  / DOLLAR= .73 EURO, 78 YEN, .62 POUND STERLING, ETC. (How low can you go LOWER)/  Interest Rates:   http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield     10 YR NOTE YIELD 2.03%      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       The bull market that never was/were  beyond wall street b.s. when measured in gold         ‘WORST ECONOMIC COLLAPSE EVER’       Must Read Economic / Financial Data        This Depression is just beginning     The coming depression…  thecomingdepression.net           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!  

 

 

 

 

 

Don't Be Fooled - Here's The Real Reason For This Week's Meltdown – ETFguide Simon Maierhofer, 11-1-11  A picture says more than a thousand words and a chart explains more than a thousand analysts' opinions (literally). Profitable investing depends on the credibility of your research sources. This article will contrast the one chart that's predicted every recent turn weeks in advance and conventional Wall Street wisdom.

Wall Street 'Wisdom'

Wall Street made us believe that last Thursday's 3% rally across the board - Dow Jones (DJI: ^DJI), S&P (SNP: ^GSPC), Nasdaq (Nasdaq: ^IXIC), banks (NYSEArca: KBE - News), financials (NYSEArca: XLF - News), technology (NYSEArca: XLK - News), you name it - was because of a comprehensive European (NYSEArca: VGK - News) debt deal that would solve all problems.

Here are some of the headlines that reflect Wall Street's 'wisdom:'

Forbes: 'Europe three-point debt salvation plan lets bulls free'

Breakout: 'Don't fight the rally: Stocks soar after Europe deal'

Reuters: 'Wall Street soars on hopes EU finally has a fix'

ETFTrends: 'S&P 500 ETFs rally over the 200-day average opens door for year-end rally' (more about the significance of the 200-day average in a moment)

Zachs: 'S&P 1,350 is not a stretch'

Even Greece's Prime Minister George Papandreou was moved to confirm that: 'The debt is absolutely sustainable now. Greece can settle its accounts from the past now, once and for all.'

Today, news that Greece could default on its debt and drop out of the European currency hit the fan.

Trend Following Technicals Turn Up

In all fairness, trend following technicals did turn up. It was even possible to interpret the market's push as a technical breakout. The October 30 ETF Profit Strategy update acknowledged and warned that: 'Trend following technicals, momentum, sentiment and seasonality suggest higher prices. But trend following technicals can be treacherous and we'll do well to view this rally with suspicion.'

In addition to just being suspicious, the update recommended to go short if the S&P falls below 1,270. S&P 1,270 is not just some random number, it was crucial support. The chart below, featured in the October 14 ETF Profit Strategy Newsletter, shows why:

The Most Reliable Roadmap

The chart shows several distinct parallels between the 2007/08 market top and today.

                       https://www.etfguide.com//contributor/UserFiles/8/Image/222.gif  

1) In 2007/08 the S&P touched the yellow trend line twice before slicing through it. The same occurred in 2011.

2) A break below the yellow trend line in 2008 led to a freefall decline. The same occurred on August 2, 2011. On July 31, the ETF Profit Strategy update warned that: 'A break below the 200-day SMA and the trend line may trigger panic selling.'

3) The initial 2008 low was followed by sideways trading and another low. The same occurred in 2011. The August 9 low at S&P 1,102 was followed by another low on October 4 at 1,077.

The October 2 ETF Profit Strategy update expected this low and foretold that: 'The ideal market bottom would see the S&P dip below 1,088 intraday, followed by a strong recovery and a close above 1,088.'

4) This low was followed by a retest of the yellow trend line in 2008. The equivalent 2011 yellow trend line ran through S&P 1,270.

The October 2 update stated that: 'From a technical point of view this counter trend rally should end somewhere around 1,275 - 1,300.'

The October 14 update warned that it wouldn't 'feel' right to short the S&P above 1,270: 'By the time the S&P gets to rendezvous with the yellow trend lines, optimism (at least to a certain degree) will be back and the media will probably tell us that a larger European debt crisis has been averted. It will take a strong contrarian conviction to short the markets at that time.'

Of course there's more to investing than blindly following a previous pattern that may or may not come true.

But as long as other research components such as seasonality and sentiment confirmed what the 2008 outline predicted, there was no reason to doubt it.

The Bottom Might Fall Out

Based solely on the 2008 script, stocks are due for much lower prices…’

 

 

 

Nobel Prize-Winning Economist: War Is Widely Thought To Be Linked To Economic Good Times NONSENSE Washingtons Blog | Contrary to a Common Myth, War is Bad for the Economy Washingtons Blog
November 1, 2011

Contrary to a Common Myth, War is Bad for the Economy

Nobel prize winning economist Paul Krugman wrote yesterday:

Military spending does create jobs when the economy is depressed. Indeed, much of the evidence that Keynesian economics works comes from tracking the effects of past military buildups.

(Mr. Krugman has said the same thing many times in the past. And many other influential people havesaid the same thing.)

I am not a Nobel prize winning economist but Joseph Stiglitz is.

Stiglitz wrote in 2003:

War is widely thought to be linked to economic good times. The second world war is often said to have brought the world out of depression, and war has since enhanced its reputation as a spur to economic growth. Some even suggest that capitalism needs wars, that without them, recession would always lurk on the horizon.

Today, we know that this is nonsense. The 1990s boom showed that peace is economically far better than war. The Gulf war of 1991 demonstrated that wars can actually be bad for an economy.

Stiglitz has also said that this decades Iraq war has been very bad for the economy. See thisthis andthis.

A No-Brainer

This is a no-brainer, if you think about it.

Weve been in Afghanistan for almost twice as long as World War II. Weve been in Iraq for years longer than WWII. Weve been involved in 7 or 8 wars in the last decade. And yet still in a depression. (And see this).

If wars really helped the economy, dont you think things would have improved by now?

Indeed, the Iraq war alone could end up costing more than World War II. And given the other wars weve been involved in this decade, I believe that the total price tag for the so-called War on Terror will definitely support that of the Greatest War.

Additional Reasons War Is Bad for the Economy

The New Republic noted in 2009:

Conservative Harvard economist Robert Barro has argued that increased military spending during WWII actually depressed other parts of the economy.

Also from the right, Robert Higgs has done good work showing that military spendingwasnt the primary source of the recovery and that GDP growth during WWII has been greatly exaggerated.

And from the left, Larry Summers and Brad Delong argued back in 1988 that five-sixths of the decline in output relative to the trend that occurred during the Depression had been made up before 1942.

Economist James Galbraith has shown that war always causes inflation, which hurts the average American:

Inflation applies the law of the jungle to war finance. Prices and profits rise, wages and their purchasing power fall. Thugs, profiteers and the well connected get rich. Working people and the poor make out as they can. Savings erode, through the unseen mechanism of the inflation tax meaning that the government runs a big deficit in nominal terms, but a smaller one when inflation is factored in.

(Ben Bernanke says that inflation is a tax, and Dylan Grice notes that inflation causes societies to prosecute minorities.   And sorry but we cant inflate our way out of our debt trap.)

As I noted last year:

All of the spending on unnecessary wars adds up.

The U.S. is adding trillions to its debt burden to finance its multiple wars in Iraq, Afghanistan, Yemen, etc.

Two top American economists Carmen Reinhart and Kenneth Rogoff show that the more indebted a country is, with a government debt/GDP ratio of 0.9, and external debt/GDP of 0.6 being critical thresholds, the more GDP growth drops materially.

Specifically, Reinhart and Rogoff write:

The relationship between government debt and real GDP growth is weak for debt/GDP ratios below a threshold of 90 percent of GDP. Above 90 percent, median growth rates fall by one percent, and average growth falls considerably more. We find that the threshold for public debt is similar in advanced and emerging economies

Indeed, it should be obvious to anyone who looks at the issue that deficits do matter.

A PhD economist [Michel Chossudovsky] told me:

War always causes recession. Well, if it is a very short war, then it may stimulate the economy in the short-run. But if there is not a quick victory and it drags on, then wars always put the nation waging war into a recession and hurt its economy.

You know about Americas unemployment problem. You may have even heard that the U.S. may very well have suffered a permanent destruction of jobs.

But did you know that the defense employment sector is booming?

As I pointed out in August, public sector spending and mainly defense spending has accounted for virtually all of the new job creation in the past 10 years:

The U.S. has largely been financing job creation for ten years. Specifically, as the chief economist for BusinessWeek, Michael Mandel, points out, public spending has accounted for virtually all new job creation in the past 10 years:

Private sector job growth was almost non-existent over the past ten years. Take a look at this horrifying chart:

http://www.businessweek.com/the_thread/economicsunbound/archives/longjobs1.gif

Between May 1999 and May 2009, employment in the private sector sector only rose by 1.1%, by far the lowest 10-year increase in the post-depression period.

Its impossible to overstate how bad this is. Basically speaking, the private sector job machine has almost completely stalled over the past ten years. Take a look at this chart:

http://www.businessweek.com/the_thread/economicsunbound/archives/longjobs2.gif

Over the past 10 years, the private sector has generated roughly 1.1 million additional jobs, or about 100K per year. The public sector created about 2.4 million jobs.

But even that gives the private sector too much credit. Remember that the private sector includes health care, social assistance, and education, all areas which receive a lot of government support.

***

Most of the industries which had positive job growth over the past ten years were in the HealthEdGov sector. In fact, financial job growth was nearly nonexistent once we take out the health insurers.

Let me finish with a final chart.

http://www.businessweek.com/the_thread/economicsunbound/archives/longjobs4.gif

Without a decade of growing government support from rising health and education spending and soaring budget deficits, the labor market would have been flat on its back.

Indeed, Former Secretary of Labor Robert Reich lamented last year

Americas biggest and only major jobs program is the U.S. military.

Back to my essay:

Raw Story argues that the U.S. is building a largely military economy:

The use of the military-industrial complex as a quick, if dubious, way of jump-starting the economy is nothing new, but what is amazing is the divergence between the military economy and the civilian economy, as shown by this New York Times chart.

In the past nine years, non-industrial production in the US has declined by some 19 percent. It took about four years for manufacturing to return to levels seen before the 2001 recession and all those gains were wiped out in the current recession.

By contrast, military manufacturing is now 123 percent greater than it was in 2000 it has more than doubled while the rest of the manufacturing sector has been shrinking

Its important to note the trajectory the military economy is nearly three times as large, proportionally to the rest of the economy, as it was at the beginning of the Bush administration. And it is the only manufacturing sector showing any growth. Extrapolate that trend, and what do you get?

The change in leadership in Washington does not appear to be abating that trend[121]

So most of the job creation has been by the public sector. But because the job creation has been financed with loans from China and private banks, trillions in unnecessary interest charges have been incurred by the U.S.And this shows military versus non-military durable goods shipments:

http://marketoracle.co.uk/images/2010/Jan/us-collapse-18-11.gif

[Click here to view full image.]

So were running up our debt (which will eventually decrease economic growth), but the only jobs were creating are military and other public sector jobs.

PhD economist Dean Baker points out that Americas massive military spending on unnecessary and unpopular wars lowers economic growth and increasesunemployment:

Defense spending means that the government is pulling away resources from the uses determined by the market and instead using them to buy weapons and supplies and to pay for soldiers and other military personnel. In standard economic models, defense spending is a direct drain on the economy, reducing efficiency, slowing growth and costing jobs.

A few years ago, the Center for Economic and Policy Research commissioned Global Insight, one of the leading economic modeling firms, to project the impact of a sustained increase in defense spending equal to 1.0 percentage point of GDP. This was roughly equal to the cost of the Iraq War.

Global Insights model projected that after 20 years the economy would be about 0.6 percentage points smaller as a result of the additional defense spending. Slower growth would imply a loss of almost 700,000 jobs compared to a situation in which defense spending had not been increased. Construction and manufacturing were especially big job losers in the projections, losing 210,000 and 90,000 jobs, respectively.

The scenario we asked Global Insight [recognized as the most consistentlyaccurate forecasting company in the world] to model turned out to have vastly underestimated the increase in defense spending associated with current policy. In the most recent quarter, defense spending was equal to 5.6 percent of GDP. By comparison, before the September 11th attacks, the Congressional Budget Office projected that defense spending in 2009 would be equal to just 2.4 percent of GDP. Our post-September 11th build-up was equal to 3.2 percentage points of GDP compared to the pre-attack baseline. This means that the Global Insight projections of job loss are far too low

The projected job loss from this increase in defense spending would be close to 2 million. In other words, the standard economic models that project job loss from efforts to stem global warming also project that the increase in defense spending since 2000 will cost the economy close to 2 million jobs in the long run.

The Political Economy Research Institute at the University of Massachusetts, Amherst has also shown that non-military spending creates more jobs than military spending.

So were running up our debt which will eventually decrease economic growth and creating many fewer jobs than if we spent the money on non-military purposes.

As I wrote last year:

It is ironic that Americas huge military spending is what made us an empire but our huge military is what is bankrupting us thus destroying our status as an empire.

Even Admiral Mullen seems to agree:

The Pentagon needs to cut back on spending.

Were going to have to do that if its going to survive at all, Mullen said, and do it in a way that is predictable.

Indeed, Mullen said:

For industry and adequate defense funding to survive the two must work together. Otherwise, he added, this wave of debt will carry over from year to year, and eventually, the defense budget will be cut just to facilitate the debt.

Former Secretary of Defense Robert Gates agrees as well. As David Ignatius wrote in the Washington Post in May:

After a decade of war and financial crisis, America has run up debts that pose a national security problem, not just an economic one.

***

One of the strongest voices arguing for fiscal responsibility as a national security issue has been Defense Secretary Bob Gates. He gave a landmark speech in Kansas on May 8, invoking President Dwight Eisenhowers warnings about the dangers of an imbalanced military-industrial state.

Eisenhower was wary of seeing his beloved republic turn into a muscle-bound, garrison state militarily strong, but economically stagnant and strategically insolvent, Gates said. He warned that America was in a parlous fiscal condition and that the gusher of military spending that followed Sept. 11, 2001, must be capped. We cant have a strong military if we have a weak economy, Gates told reporters who covered the Kansas speech.

On Thursday the defense secretary reiterated his pitch that Congress must stop shoveling money at the military, telling Pentagon reporters: The defense budget process should no longer be characterized by business as usual within this building or outside of it.

While some might want to start another war, Americas top military leaders and economists say that would be a very bad idea.

Indeed, military strategists have known for 2,500 years that prolonged wars are disastrous.

Note 1: Security experts conservative hawks and liberal doves alike agree that waging war in the Middle East weakens national security and increases terrorism. See thisthisthisthisthisthis and this.

Terrorism in turn terrorism is bad for the economy.  Specifically, a study by Harvard and the National Bureau of Economic Research (NBER) points out:

From an economic standpoint, terrorism has been described to have four main effects (see, e.g., US Congress, Joint Economic Committee, 2002). First, the capital stock (human and physical) of a country is reduced as a result of terrorist attacks. Second, the terrorist threat induces higher levels of uncertainty. Third, terrorism promotes increases in counter-terrorism expenditures, drawing resources from productive sectors for use in security. Fourth, terrorism is known to affect negatively specific industries such as tourism.

The Harvard/NBER concludes:

In accordance with the predictions of the model, higher levels of terrorist risks are associated with lower levels of net foreign direct investment positions, even after controlling for other types of country risks. On average, a standard deviation increase in the terrorist risk is associated with a fall in the net foreign direct investment position of about 5 percent of GDP.

So the more unnecessary wars American launches and the more innocent civilians we kill, the less foreign investment in America, the more destruction to our capital stock, the higher the level of uncertainty, the more counter-terrorism expenditures and the less expenditures in more productive sectors, and the greater the hit to tourism and some other industries.

Moreover:

Terrorism has contributed to a decline in the global economy (for example, European Commission, 2001).

So military adventurism increases terrorism which hurts the world economy. And see this.

Note 2: True conservatives are anti-war.’


 

 

 

SPX and NDX Update: A Disturbing Look at Fundamentals, and the Rally Explained  Jason Haver Oct 31, 2011John Mauldin, whom I have a great deal of respect for, put forth a very convincing and enlightening argument this weekend (see European Summit: A Plan With No Details.) I'm going to try to summarize his argument as succinctly as possible, but do note that the credit for this information goes to him.
 

 

 

Don’t count on us to help you out of your single-currency hole, China tells Europe UK Daily Mail | The decision to ask China for cash was seen as a watershed moment in the shift of economic power.

 

 

Graham Summers’ Weekly Market Forecast (Wake Up Call Edition)  Phoenix Capital... 10/31/2011 The markets flew into this deal based on rumors and short-covering and are now waking up to the plain obvious facts that you cannot solve a debt problem with more debt.  So the financial world has collectively woken up and realized that the latest EU bailout scheme is fraught with problems and loose ends. Amongst the various problems are:

1)   The Greek private bondholders are furious that the ECB isn’t taking a haircut on its bonds too.

2)   German courts and voters aren’t too pleased with Merkel’s decision to go “all in” on the Euro experiment.

3)   The Greek default isn’t nearly large enough to render Greece solvent again

4)   The default has set a precedent for the other PIIGS countries to follow

5)   The CDS/ derivative issue regarding Greece’s default is not over by any stretch

6)   The entire EU banking system remains far too leveraged (26 to 1) and needs another $1.5+ trillion in capital at the minimum.

The markets flew into this deal based on rumors and short-covering and are now waking up to the plain obvious facts that you cannot solve a debt problem with more debt. Also, it might be worth considering just where the EFSF bailout money will be coming from when various EU members can’t even stage successful bond auctions without the ECB stepping in.

Again, the primary issue for the EU is a lack of capital. There is TOO MUCH debt there. And issuing more debt, no matter how cheap, is not going to help. Especially when your strongest member (Germany) sports a REAL debt to GDP above 200% and hasn’t recapitalized its banks.

So the EU will be crumbling in the coming weeks. This was the final hurrah for the EU and the Euro in its current form. On that note, the Euro was rejected at resistance at 142 and has already taken out support at 140.

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/10/sc-4.png

Once we take out 139, look for this breakdown to pick up steam (pulling stocks with it).

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/10/sc-5.png  

Indeed, the financial world is talking about how this was the biggest move in stocks since 1974. Unfortunately, few remember that after that move in 1974, the markets cratered.

Some thoughts on stocks… isn’t it a little strange that the market fell exactly 20% (the “official” bear market level) before kicking off the biggest ramp job in 30 years? How about the fact that this move came for no real reason other than rumors of another bailout (what are we on #3 for this?).

Can this move really be attributed to Euro choosing to let Greece default (which is what happened in reality)?

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/10/sc-7.png

Regardless, stocks were deflected from resistance at 1,275 or so. They’re now on their way down again. The market is extremely overbought and susceptible to a fast violent move downwards.

Indeed, the credit markets remain jammed up and are anticipating even more haircuts from Greece. And the rest of the PIIGS will be following suit in the default game.

Ignore stocks, they’re ALWAYS the last to “get it.” The credit markets are jamming up just like they did in 2008. The banking system is flashing all the same signals as well.

So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding.

What happened in 2008 was literally just the warm up. The REAL DEAL is coming in the next 14 months. And it’s going to involve corporate, financial, and sovereign defaults…’

 

You Won’t BELIEVE How Much Money Jon Corzine Could Walk Away With From MF Global Business Insider | The big story of the day in finance is the bankruptcy of MF Global.

 

 

 China Says Not So Fast On Rescue   http://www.thestreet.com/_yahoo/video/11292710/buy-and-hold-is-dead-buy-and-hedge-instead.html?cm_ven=YAHOOV&cm_cat=FREE&cm_ite=NA&s=1#1250281566001   , MF Global Caught in Death Spiral , Sell H-P! Against the Grain ,  Mon 10/31/11

 

 

 

Are Ratings Agencies Taking Bribes? Wall St. Cheat Sheet’October 31, 2011,Credit-rating companies like Moody’s Investors Service and Fitch Ratings routinely award higher rankings to debt issued by banks and corporations that pay them the most, a conflict of interest that Congressional may be unable to do anything about.

 

 

 

Why Last Week's Euro Fix Won't Do the Trick ETFguide Simon Maierhofer, On Monday October 31, 2011, ‘The S&P (SNP: ^GSPC) surged over 3% last Thursday. Why? In a financial episode that starts to look more and more like the 1993 movie Groundhog Day, European leaders once again received credit for engineering this rally.

More specifically, the euro-zones three-pronged approach to fix the debt crisis was viewed by the market as the cure to all problems.

However, a closer look at the Brussels salvation plan reveals nothing but flaws. So why did stocks rally and will the rally last?

3 Steps to Save Europe

Here's the plan outlined by European leaders last Thursday:

1) Private investors agree to a 50% haircut on their Greek bond holdings.

2) The European Financial Stability Facility (EFSF) will be increased to $1.4 trillion.

3) European banks need to bring their Tier 1 capital ratios up to 9%.

3 Problems of the 3 Steps to Save Europe

1) Private sector creditors such as insurers, banks, and funds are expected to take losses of about $140 billion on Greek bonds. To protect against such losses, large institutions tend to buy credit default swaps (CDS). CDS act like insurance.

However, since Greece did not technically default, the International Swaps and Derivatives Association (ISDA) is unlikely to consider the restructuring an event that will trigger CDS payouts.

In other words, CDS (the insurance policy of choice for financial conglomerates) won't pay. This could lead to an implosion of the sovereign CDS market. This in turn would severely reduce demand for government bonds. Who wants to buy risky bonds knowing that the 'insurance company' won't pay?

2) The EFSF was funded with about $616 billion. About $266 billion have already been spent or earmarked; so about $350 billion remain to be spent. Who will contribute the $1.05 trillion to attain the targeted $1.4 trillion? Nobody.

The remaining $350 billion will be leveraged 4-5 times to produce the $1.4 trillion leveraged figure. Leveraged how? This has yet to be determined.

3) European banks - along with U.S. banks (NYSEArca: KBE - News) and financial institutions (NYSEArca: XLF - News) are already cash strapped. Bringing up their Tier 1 capital ratio will probably turn into a financial engineering exercise as raising actual cash - especially in Europe - is difficult…’

 

 

U.S. and Europe … “Self-Induced Stagnation,” says Economist Editor The Daily Ticker

 

 

Markets Remain in Cyclical Bear Market  Kevin Tuttle    Don’t be afraid of missing opportunities. Behind every failure is an opportunity someone wishes they missed.”–Lily Tomlin
 

 

Europe Will Make Lehman Look Like a Joke   http://gainspainscapital.com/?p=1010  Summers 10-28-11   ‘So now that one day has passed and weve seen a ridiculous 3% move in stocks based on a bailout that is nothing short of moronic (Greece is still insolvent and didnt take a big enough default), the financial world is actually asking itself questions such as:

  1. Does giving a bankrupt nation more money right after it defaults a good idea?
  2. Does requiring an additional $100+ billion in capital for banks that need north of $1.77 trillion in new capital really accomplish anything?
  3. Do bailouts involving more leverage and debt work when the entire banking system is insolvent?

 

 

 

 

 

Is It Foolish to Get Excited About the Latest Deal to Save Europe? ETFguide    http://finance.yahoo.com/news/Is-It-Foolish-to-Get-Excited-etfguide-2444921710.html?x=0&.v=1   Simon Maierhofer, On Thursday October 27, 2011 ‘Before you get excited about the last minute Euro-Deal, consider this:

Wall Street has been dancing to Greece's (and by extension Europe's) whistle. If Greece says 'jump,' Wall Street jumps, if Greece says 'Sorry, false alarm,' Wall Street cries.

This sorry dance has been going on for nearly two years. Like an endless loop of chicken dance, this may be fun at first (about 2 minutes) but gets old real fast. If you are tired of Wall Street's 'chicken dance coverage' and want to know what's really going on and how to make money (or protect your assets), here's a no nonsense assessment of Europe.

Greece - Fool Me Once ...

Fool me once, shame on Greece, fool me twice, shame on me. Greece has been the scapegoat for every major sell off and catalyst for most rallies and dead dog bounces since January 2010.

Shame on you if you think everything's going to be hunky-dory just because Greece and/or its European pretend-to-be saviors announce another plan to come up with a plan.

The Problem

Here's the problem: Greece is broke and Greece has no significant revenue sources to pay off its debt. Foreign investors own about $385 billion worth of Greek government debt.

Many banks and governments that own Greek debt are at the brink of insolvency already, so Greece's inability to pay its debt may push other countries and their banks into a Greece-like position (that's called contagion).

Misleading Information

You can't trust statements from European officials because they are trying to prevent panic. Panic will make any kind of solutions more expensive and more difficult to execute.

Luxembourg's Prime Minister (also Chairman of regular eurozone meetings) blatantly admitted that: 'When it becomes serious, you have to lie.'

Obviously no political leader wants the eurozone to fall apart on their watch, so they pretend and extend and kick the can down the road far enough for it become someone else's problem (someone else will inevitably include rosy-eyed investors).

This postpones the inevitable, but the portfolios of investors who are faithful enough to trust such assessments suffer a death of thousand cuts. Just imagine where your portfolio would be if you sold everything when Greece first announced it had some 'minor' fiscal problems. Like tearing a bandage off a hairy leg, slower is more painful.

You also can't trust the media because they profit from sensationalist headlines, not sound investment advice. If that means they have to spoon-feed a consistent diet of 'Stocks bounce on hopes for a Europe fix' followed by 'Stocks plummet on fears over Europe,' then that's what they'll do. Fortunately we can choose not to partake from the junk food dished out by the media.

On a different note, have you noticed how bad news (such as downgrades) is reported after the close (particularly Fridays), while good news (or even just good rumors) are reported while the markets are open.

The (Only?) Plan

Let's just be realistic and just admit that Greece is as good as bankrupt. The country just doesn't have enough income to pay its debt load and keep the country functioning properly without outside financial support.

Eventually Greece's saviors will realize that this is a leaky bucket-like money pit. A sudden and unprepared Greek bankruptcy would shatter the eurozone unless Greece is quarantined first. The goal here would be to sequester ripple effects that would cripple Italy, Belgium, Portugal, Spain and whoever else is hiding in the closet.

Doing this wouldn't be cheap. To prepare for a such a quarantine (which is a more diplomatic term than ejection) from the eurozone, Europe (via the EFSF) would have to prepare and fund a fund that can pay for:

1) Defaulting Greek government debt

2) Shoring up banks that won't qualify for inter-bank credit

2) Make sure Italy and the next dominos in line are safe

Statfor Global Intelligence estimates the price tag to be about - drum roll - $3 trillion. The chart below visually explains the above-described process. Can Europe scrape together $3 trillion?

                            https://www.etfguide.com//contributor/UserFiles/8/Image/Greek%20Domino.gif

Doomed if You Do, Doomed if You Don't

I don't think it matters much, because the above plan doesn't take into account human emotions, panic, in particular. European banks' deposits at the European Central Bank (ECB) have already mushroomed. This means that already one bank doesn't trust another bank with their money.

The combination of liquidity drying up and assets imploding is a lethal one. What about those saying 'Things aren't that bad.'

Just consider Dexia. Dexia pased the European bank stress test with flying colors but still had to be rescued. Dexia is supposed to be rescued partially by the country of Belgium, but Belgium's national debt is already 100% of GDP. Depending on Dexia's actual losses, Belgium's national debt may soar to 120% of GDP just by having to bail out one bank. Do you know how many banks there are in Europe?

How To Make (or Protect Your) Money

The ETF Profit Strategy Newsletter doesn't specialize on European coverage, but it's provided some much needed common sense. On March 18, 2010 it stated that: 'Until now financial problems in various European countries have been minimized and swept under the carpet. The sub-prime crisis took more than a few weeks to rattle Wall Street. Chances are the investing world will need a bit more time to catch on to what really is happening with sovereign debt overseas.'

On July 17, the ETF Profit Strategy Newsletter recommended to short the iShares MSCI EAFE and iShares MSCI Emerging Markets (NYSEArca: EEM - News). Over the next couple weeks, EFA lost 22% and EEM 39%.

Under the headline 'Prepare for Bottom Fishing,' the newsletter recommended on September 23 to prepare for a market bottom and stated that: 'European stock market may get some relief over the next weeks/month. The same is true for EFA and EEM. Those markets are temperamental and will therefore bounce higher than U.S. stocks when the rally materializes. Aggressive investors may add some European/emerging or BRIC market exposure to their portfolio once we start buying U.S. stocks.'

We bought U.S. stocks on October 4 at S&P 1,088. The October 2 ETF Profit Strategy update outlined the ideal market bottom as follows: 'The ideal market bottom would see the S&P dip below 1,088 intraday followed by a strong recovery and a close above 1,088' and recommended to buy as soon as the S&P moved back above 1,088.

The The October 14 ETF Profit Strategy update stated the following price target: 'The S&P should rally to 1,255 - 1,xxx (reserved for subscribers).

The S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI) and Nasdaq (Nasdaq: ^IXIC) are up well over 17%, the VIX (Chicago Options: ^VIX) down over 80% since. The Vanguard MSCI Europe ETF (NYSEArca: VGK - News) is up nearly 30% while Wall Street is scratching its head over what just happened. How could the S&P soar 200 points in three weeks?

What's Next?

It would be naive to get excited about the latest euro news. 'Once burnt twice shy' wouldn't be a bad approach now and long positions should be kept on a tight leash. Sentiment and seasonality suggest higher prices, however technicals are in topping mode.

Today's intraday ETF Profit Strategy Newsletter update provides detailed recommendations on how to navigate this market constellation along with an out-of-the box analysis and actionable ETF profit strategies.’ 

 

 

Global Financial Crisis: Now in Game Form  The Wall Street Journal 

 

 

 

The Greek Deal Accomplishes Nothing Systemic Risk is Coming   http://gainspainscapital.com October 27th, 2011 The markets are exploding higher this morning on news of the expanded Euro Bailout. The numbers at the moment are

  1. A 50% haircut for private Greek bondholders
  2. European banks have eight months to raise about $147 billion in capital
  3. An expansion of the European Financial Stability facility to $1.3 trillion.

First off, lets call this for what it is: a default on the part of Greece. Moreover its a default that isnt big enough as a 50% haircut on private debt holders only lowers Greeces total debt level by 22% or so.

Secondly, even after the haircut, Greece still has Debt to GDP levels north of 130%. And its expected to bring these levels to 120% by 2020.

And the IMF is giving Greece another $137 billion in loans.

So Greece defaults but gets $137 billion in new money (roughly what the default will wipe out) and is expected to still be insolvent in 2020.

Forgetting that any and all official estimates for Greeces financial condition have been off by a mile, not to mention that Greece still hasnt paid back its first round of bailout funds, this move is nothing short of moronic.

The reasons are:

  1. The default is not big enough (I expect Greek bondholders to get 20-30 cents back on the Dollar at best in the future)
  2. It accomplishes nothing of significance (Greece is still broke), and…
  3. It will trigger a credit event and has the makings of systemic risk.

Lets put some of the other numbers from this deal into perspective. According to the agreement, European banks are supposed to raise $147 billion in new capital by June.

Well, German banks alone need to raise $173 billion in new capital. So this new capital requirement from the deal is pointless.

Indeed, the European banking system as a whole is insolvent.

With OVER $46 trillion in assets outstanding, European banks would need to raise $1.77 TRILLION in capital to bring their leverage levels down to 13 to 1.

Yes $1.7 TRILLION

Now you see why the extra $147 billion in new capital is pointless. Its like pouring a bucket of water into a desert and expecting it to sprout a jungle.

Folks, lets get honest here. This deal accomplishes nothing. Its just more kicking the can to avoid the reality. The reality is that the entire European Banking system is leveraged at near Lehman Brothers levels. And European banks need to roll over between 15-50% of their total debt (depending on which country theyre in) by the end of 2012. The credit markets know this, which is why theyre predicting more Greece haircuts in the future. Its also why IMF has decided to lend Greece another $137 billion right as the country defaults.

Ignore this latest pop in stocks and the Euro. This mess isnt over not by a long shot. And before the smoke clears, much of Euro will be in default/ banking collapses.

So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. Were literally at most a few months, and very likely just a few weeks from Europes banks imploding…’

 



Europe Wallows In Insolveable Problems Bob Chapman | We address this European issue, because soon it will debut in the US.

 

 

Inflation, Jobs, and the Artificial Flow of Monetary Policy  Minyanville Atlantic Capital Management Oct 27, 2011 [ This is an incisively astute analysis of the currently hailed but doomed to be failed strategy now underway! ]  While the stock market (SPY) (QQQ) continues to pin its hopes on a successful European monetary device in some esoteric but mildly believable format, complete with willful leveraging, the economic consequences of such monetary “solutions” continue to indicate the predictable results of so much intervention in every part of the global economy.  Mainstream economics may still regard the Phillips Curve with fondness, believing that there is a direct, inverse relationship between unemployment and inflation, but the empirical economic history shows that it is a flawed line of thinking that always leads to the opposite result of what was intended.
 
If your base economic theory posited that an increase in expectations of inflation would decrease the rate of unemployment, you would not think twice about using inflation expectations as a blunt instrument to combat joblessness. That is what the Federal Reserve has done since 2008, first with its zero interest rate policy (ZIRP) and then two scaled programs of quantitative easing (QE).  While ZIRP and the first QE were specifically designed to bail out the ailing banking system, the “side effect” on inflation expectations was an added bonus for a central bank still deathly afraid of the smallest hint of deflation.
 
The second QE, “announced” in August 2010, was calculated specifically to increase inflation expectations.  Between that announcement and its actual implementation in November 2010, the Fed ramped up its PR initiatives with the expressed aim of convincing the public that the Fed knew what it was doing.  It fully believed(s) that inflation expectations – even increasing oil prices (see Federal Reserve Board’s Research Paper “Oil Shocks and the Zero Bound on Nominal Interest Rates” published in September 2010) – were economically beneficial, and, most importantly, that should inflation begin to get out of hand, as it had done in the 1970s, it could be turned off in “15 minutes.” Certainly central banks have a very good idea of what their simple models (even those that are formed by more than two elemental variables) of the real world may predict, but an utterly complex and human system rarely conforms to any static statistical distributions, leaving the practitioners of such academic simplification often unprepared for “unexpected” and “unintended” results.
 
The abstract dangers to such a program of intentional inflation, carried out directly through dollar devaluation, were accepted because the program would, without a mathematical doubt in the two-variable paradigm of modern economics, generate increasing employment.  Although the theory of the Phillips Curve would have to be put into practice through some very unconventional means, there has been little doubt expressed by policymakers that the economy would not be “saved” by all these monetary machinations.
 
However, the theoretical notions of inflation psychology, especially expressed through energy prices, simply did not live up to those Fed-designed mathematical predictions. Unfortunately, the Fed was very successful in creating inflation expectations (commodity prices were elevated as early as November 2010 when QE 2.0 got under way, and had almost reached 2008 levels by February 2011), but no sustained job growth followed. 
 
It was not as if the principle intended economic effects failed to materialize. The primary vehicle to carry forward job growth out of inflation expectations is inventory production.  Manufacturing, wholesale and retail operations (the supply chain) all accumulate inventory based on cost expectations for the near future.  Any increase in commodity prices triggers the accumulation urge, especially in an environment where businesses are fairly uncertain of their ability to pass on additional costs to the next level in the supply chain (or ultimately end users). 
 
That is exactly what we have seen during this recovery period – one increasingly led by a historic inventory accumulation (though it is fair to say that the initial inventory buildup occurred because of the large-scale depletion of inventory stocks during the 2008/09 collapse).  The October 2011 durable goods release showed a record level of inventory accumulation in the manufacturing sector.  While that overall report seemed to indicate better conditions than recently feared, shipments of manufactured durable goods actually fell by 0.7% in the month.
 
The day before the durable goods report, the Conference Board’s estimation of consumer confidence fell all the way to 39.8 – a level not seen since May 2009 .  The current conditions component of that survey dropped to an unthinkably low 26.3 (a level reserved for economies in the midst of contraction).  Not surprisingly, one-year inflation expectations remained elevated at 5.8%, combining the lack of job growth with those Fed-inspired prices to once again call into question any real-world notion of a Phillips Curve-like dynamic.
 
The Fed succeeded in stoking expectations, elongating the inventory cycle, and then combined the worst aspects of inflation with a lack of success in the labor market.  Where did it all go wrong?
 
Perhaps the economic orthodoxy of the Federal Reserve and mainstream economics is simply outdated.  The Phillips Curve was questionable even in the 1970s, when inventory cycles moved the whole of the economy.  In 2011, however, manufacturing has so much less of an impact on employment since its proportion of the overall jobs market has been greatly reduced. 
 
The reduction in the importance of manufacturing itself is a product of dollar devaluation, now heading into its twelfth year.  So any marginal increase in inventory activity spurred manufacturing levels more in China than domestically.  The increase in inventory levels from domestic sources has been at the wholesale and retail levels, leading to the “part time” recovery, where low-level service jobs have been disproportionately high. 
 
The counterweight to that “open” economy dynamic is supposed to be an increase in domestic exports to offset the trade imbalance (it is not coincidence that the current administration was explicitly and publicly aiming to “double” exports within five years).  But the US has developed a system of recycling trade money into various forms of asset claims, whereby the sustained trade imbalance and current account deficit is simply maintained through asset prices and debt issuance.
 
During the last decade imported goods filled almost the entirety of marginal consumption, meaning US dollars flowed overseas in abundance (hundreds of billions a year).  If those dollars had been returned in reciprocal, bilateral trade, there would be no issue.  Instead, those trade dollars were repatriated largely by foreign central banks as official reserves being invested in US government debt – especially debt issued by the government-sponsored enterprises Fannie and Freddie.  In other words, this structural trade imbalance was one of the primary drivers of the housing bubble .  Even private sector inflows of repatriated dollars tended to end up in some form of government debt, rather than the more beneficial direct investment.
 
To close the loop of monetary flow to consumers (remember that an economy is supposed to be a system of sustained and broadening monetary flow), the recycled trade dollars flowing into GSE debt helped push up the price of real estate, allowing households to finance consumption through debt-based housing equity withdrawals rather than wage or earned income that would have come from a true bilateral trade regime. 

The service economy that grew in response to this artificial loop was dangerously dependent on the continued success of the financial economy and its continued leakage into the real economy through housing. This encompasses a whole range of industries, from finance, real estate and insurance, to business services and even construction.  These sector job markets grew as the backbone of what little wage growth did occur in the last decade, but they were completely dependent on the artificial and indirect flow of money into prices (the wealth effect).  Without revisiting the price dynamics of the period, these artificial engines of unsustainable growth cannot repeat their success in 2011.
 
A sustainable system of economic flow, even in an open environment, would have seen trade dollars returned to the US as demand for US-produced goods (where US workers would have been hired to produce them, closing the trade loop back into earned income).  However, monetary urges within the Fed to desperately counteract the potential deflationary consequences of the bursting tech bubble made the system a willing participant in the artificial, marginal debt trade system.  The Fed, abandoning its role as money supply officiant, gladly accepted the system as it was since it coincided exactly with its monetary policy
s short-term goals of avoiding having to pay the piper of the dot-com fiasco.
 
When the housing bubble finally collapsed, starting in 2006, the loop of economic flow of trade dollars back to consumers through home equity was broken, slowly at first.  It is not coincidence that corporate profitability began to decline and marginal economic expansion began to slow in the middle of 2006.  It has not been since repaired, as marginal consumption still annoyingly flows overseas.  Worse, though, marginal production that does remain domestically is acutely susceptible to the rising input costs of dollar devaluation, disproportionately impacting smaller businesses. 
 
So the current economy has no solution to recycle the marginal trade dollars back to households (it currently flows into
regular US government debt, which does see some money get to households in the form of transfers such as unemployment insurance and food stamps, but far more simply finances the ongoing deficit).  On top of that, the rest of the economy is unable to simply absorb the cost increases that come with intentionally creating inflation expectations.  The first part of the Phillips Curve plan (inflation) worked without kicking off the second (reduced unemployment), where half a success really is a whole failure. 
 
Without a sustained and intentional effort to remove incentives to produce overseas, the trade imbalance will continue to be a drag on marginal economic flow.  Further, without finding a way to close the loop of marginal flows through import production, even artificially through another asset bubble, the inflation expectations that are created will just be a further drag without any chance for a positive offset.
 
So companies like
Google (GOOG) and Apple (AAPL) can still do relatively well in their bottom lines, but unless they begin to commit a large portion of their built-up cash balances for some kind of domestic capex program, they do not really enhance the wider economic prospects of marginal beneficial flow through wages.  Companies like Caterpillar (CAT) are at least investing in capex, but so much of their positive results flow from the trade imbalance and dollar devaluation dynamic that it makes little sense for them to do it domestically (outside of the gratuitous stock buyback program that does nothing for employment). 
 
The monetary system of incentives built up by ZIRP (which would recycle money into the hands of savers to spend, but is instead a tax on them in favor of rebuilding bank equity) and QEs is exactly the opposite of what is needed.  Instead of promoting incentives for companies that are doing well to expand production overseas, or to use their growing stockpiles of cash resources on financial engineering instead of actual engineering, the economic system needs to repair itself through less artificial and more sustainable avenues.  Unemployment can remain high right alongside inflation if there is no closed marginal loop of monetary flow from businesses to households/consumers and back to businesses.  What really matters is the path that marginal dollars take in fostering actual economic activity.
 
At the very least, the Fed should try not to make things worse by pushing inflation expectations in the first place without a better idea of exactly how to recreate a healthy system of monetary flow primarily through wages.  But that would require them to not only re-examine the Phillips Curve, but also their misguided commitment to the ephemeral
wealth effect.  After all, rising artificial asset prices is just another form of inflation, something we have had enough of through these last two historic asset bubbles.

Editor's Note: For additional commentary, visit the website of Atlantic Capital Management.’

 

A Dysfunctional System That Bankrupts A Generation Wolf Richter | At fault is the system itself.

 

Daves Daily: http://www.etfdigest.com  The good news is theres a plan. The bad news is we dont really have the details pinned down as noted HERE. More good news is this stock market rally, should it hold Monday, will mark the largest in the last quarter century if records make for good news. Make of it what you will but shorts have been squeezed out of whatever positions they maintained. That might in itself be bad news. The pressure to make a deal was very high. After all, if the banks didnt (and still havent actually) accepted a voluntary restructuring of Greek debt, the an involuntary event would mean default. This would in turn trigger CDS (Credit Default Swaps) activity which counter-parties probably could not pay. Contagion would burn through the financial system creating chaos. This is why the FT article from above is so interesting and worrisome.Where will the firepower come from to push stock markets higher given the high rate of equity fund redemptions over the past three years? The last I checked equity mutual fund cash balances were only 3.4%). No, juice for bulls will come from private investors with managed funds switching from bonds to stocks. The other source for buying is from the usual suspectshedge funds, trading desks and HFTs.Bonds did sell-off as switching to equities and more risk was apparent. On the other hand, commodities rallied as authorities have chosen inflation (no surprise here) over deflation. Its easier to do politically if you dont care about succeeding generations. Gold, silver, base metals, energy and most commodities rose sharply as a result. You want to pay more for stuff dont you? Thats the trade-off when pursuing Keynesian policies and big government.Economic data Thursday was shrugged-off as the two problem areas Jobless Claims (still over 400K) and Pending Home Sales (-4.6% vs unchanged expected) continued to struggle. GDP data was reported at 2.5% growth matching expectations and vs 1.3% previous. Most of the growth there was from consumer spending the bulk of which was in the computer category (iGadgets?).Meanwhile, Bloombergs Personal Consumer Consumption vs Confidence clearly displays the disconnect between the two:

http://i238.photobucket.com/albums/ff171/flyfry/new%20album/10271-1.jpg

Earnings reports, if any mattered vs the news, were good overall led by Exxon Mobil (XOM), Aflac (AFL), Akami Technologies (AKAM) and Aetna (AET) to name a few. The biggest winners on the day had been the worst performing sector previouslyfinancials. There, bank stock prices were higher across the board.The stock market is at least short-term overbought as the trusty daily McClellan Oscillator ($NYMO) reveals at the end of this posting. Remember this was the case on Monday and then we had Tuesdays massive sell-off, remember?? Volume was high on this epic rally while breadth per the WSJ probably was a 90/10 day…’

 

 

Broken promises, brazen deceit, utter contempt for the electorate – why there MUST be an EU referendum Daily Mail | As Greece burns, British government are not keen on letting voters decide on EU membership

 

 

 

THE DEVIL IS IN THE DETAILS AND THE DATA  Peter Spiegel in Brussels 10-27-11 http://www.ft.com/intl/cms/s/0/ab7bcd58-00b6-11e1-8590-00144feabdc0.html#axzz1c0eTn2fl  ‘…By cutting in half the face value of the estimated €200bn in Greek bonds in private hands, officials have taken a far more aggressive stance in reducing Greece’s overall debt levels than they did three months ago, a move long called for by outside analysts. But such swinging cuts are also dependent on almost all Greek bondholders agreeing to participate in the plan. Unlike the July deal, which set a target at 90 per cent participation, Thursday’s plan includes no such target. In addition, by taking such big up-front haircuts, European officials threaten the very solvency of the largest single holders of Greek debt – Greek banks, which hold about €50bn in sovereign Greek bonds. A senior EU official said €30bn of the new €130bn rescue package must go to bailing out Greek banks – a €10bn increase from July…’



 

Economic reform: MPs swap punches, insults in Italian parliament over pension reforms Mail Online | Berlusconi TV interview causes rival MPs grab each other by the throat, as group of school children watch

 

And Now, For Some Semblance Of Sanity, Here Is One Hour Of Hugh Hendry

After today's ridiculous move in the market, which brings back memories of either August 2007, March 2008, the reaction after the Tarp vote (the successful one), August 2011, when the market gyrated by 400 points on a daily basis, and many more bear market rallies, we hope to restores some semblance of normalcy by presenting the following series of clips all from Hugh Hendry speechs at the LSE's Alternative Investments Conference earlier this year. Must watch, because when everyone loses their mind, listening to some common sense is the best remedy.

 

 

 

 

S&P Chart: A Sucker's Rally?Zacks

 

 

Durable Goods Fall As Expected, Market Rallies More The Wall Street Journal

 

Stocks Are Approaching A Brick Wall  http://markets.financialcontent.com/stocks/news/read?GUID=19799840 ChartProphet submit: The majority of the world is either optimistic or unsure about the future of the global economy. But with so many hurdles in the way and warning signals that point to a slowing, if not collapsing, global economy, the prudent and rational investor would be extremely wise by protecting his or her portfolio if not pulling out of stocks completely. Fake Rally/Dead Dog Bounce After essentially crashing from late 2007 to early 2009 and losing nearly 60% of its value, the stock market (as represented by the S&P 500) bounced back and more than doubled from March 2009 to early May 2011. However, even though the recovery powerfully carried stocks back toward the 2007 all-time highs, the stock market failed to make new highs . The failure to make new highs is a warning sign that we have yet to truly recover, regardless of the relative improvements since the depths of…

 

Investors Still Dumping Stock Funds, Even As Stocks Rallyat The Wall Street Journal

 

Operation Twist Does Nothing for the Real Economy Minyanville 

 

 

 

Parallels to The Great Depression Suggest Higher Prices Followed by a Bust ETFguide Simon Maierhofer, October 25, 2011 ‘They say everything is bigger and better in Texas. Simon says, everything is bigger and 'badder' (as in worse) on Wall Street today, than 85 years ago.

Despite all the parallels that exist between today and the Great Depression, there is one factor that just doesn't match up - time. The Great (post-2007) Recession has already lasted longer than the 1929 - 1932 market meltdown.

If you focus merely on elapsed time, you can reach two conclusions:

1) Either there is no parallel, or the 2007 bear market is over.

2) The 2007 bear market will be more intense and last longer than the 1929 - 1932 parallel.

A look at the pattern and shape of the post-1929 and post-2007 declines along with the sentiment that accompanied major events within both periods, suggest that we are in a monster version of the Great Depression with the next leg down not too far away.

It Can't Happen Again - Think Again

I've often heard that the Great Depression can't happen again because we are no longer on the gold (NYSEArca: GLD - News) standard. The absence of the gold standard now allows the Federal Reserve to print their way out of any recession.

That is true; the Fed can now print unlimited amounts of money. However, the non-existent gold standard is a double-edged sword. Just as it enables the Fed to print money (which the Fed has done for decades), it has enabled a massive leveraged bubble.

It's this unbridled (by the gold standard) leveraged frenzy that created a huge financial (NYSEArca: XLF - News) leverage bubble. The Federal Reserve attempted to fix the bubble's consequences with a new bubble, the QE2 bubble.

Regarding the QE2 bubble, the May ETF Profit Strategy Newsletter stated that: 'The Fed is fueling a new bubble to combat the damage left behind by the previous one. Once punctured, bubbles tend to deflate quickly.' Deflate it did. The S&P lost 296 points from the May 2 high to the October 4 low. The 'liberty' of an unbridled currency did not prevent the decline.

Sentiment Parallels

Here's where the parallels between the Great Depression stock market meltdown and the post-2007 decline become interesting.

Both declines saw an initial leg down followed by the mother of all counter trend rallies. The 1929/30 counter trend rally lasted a little more than five months and retraced 62% of the previous decline. The 2009-11 counter trend rally retraced 86% of the previous decline (based on the Dow Jones Industrial Average).

Here are some newspaper headlines that appeared in April 1930 towards the end of the biggest sucker rally, so far:

'The outlook is favorable' - Harvard Economic Society

'The depression is over' - Herbert Hoover

'There is nothing in the situation to be disturbed about' Andrew Mellon, Treasury Secretary

'Wall Street was in a cheerful frame of mind as a result of numerous vague reports of improvements in business and industry' - Wall Street Journal

Following this brief flash of confidence, the Dow tumbled 10% within two and a half months. Interestingly, this second major leg of the bear market kicked off in April.

Fast-forward 81 years to April 2011 and we read the following headlines:

'Global economy is improving' - GE CEO Immelt

'Sales growth the biggest surprise on Wall Street' - Wall Street Journal

'Equities finally seeing light on the economy' - MarketWatch

Just when Wall Street thought the bear market was over, the S&P (SNP: ^GSPC) delivered a six month, 20% drop. The Dow (DJI: ^DJI), Nasdaq (Nasdaq: ^IXIC), and Russell 2000 (Chicago Options: ^RUT) followed suit.

Technical Similarities

The chart below compares the Dow's performance of 1928 - 32 to that of 2007 - 11. It took a break below trend lines in 1929 and 1930 to kick off powerful declines.

                       https://www.etfguide.com//contributor/UserFiles/8/Image/Great%20Depression%2010%2025%2011.gif  

It also took a break below trend lines in 2008 and 2011 to unleash massive bearish forces…’

 

 

 

STOCKS TANK BEFORE EU MEETING THAT EVERYONE EXPECTS TO FAIL: Here's What You Need To Know Business Insider [ No …this is not quite correct … the point being there’s nothing they can do to make it (other than the meeting itself)  succeed!

 

 

 


Investors' Number One Worry: Europe Posed to Bring Down Global Economy  Minyanville [ Riiiiight! Europe following the ‘american way’ of  ‘insurmountable debt, funny money and wall street fraud, and throw in a destructive, wasteful war or two or three’  is ‘ the one’ … to reiterate: America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks…The government’s total indebtedness is $211 trillion   ] Lloyd Khaner Oct 25, 2011 ‘It's all Europe all the time as the market macro trade risks on and risks off, depending on the daily 3 p.m. news leaks from across the Atlantic…

QE: Is “Operation Twist” working? I don’t know. What I do know is that when we need more juice, it will morph into “Operation Twist and Shout!”

US ECONOMY: The Fed’s Beige Book, anecdotal information on current economic conditions in 12 districts around the country, says some areas are improving a bit while others are weakening a bit. This useless, wishy-washy information brought to you by your good friends at US Govt. Inc.
 
UNEMPLOYMENT: In a holding pattern. Unfortunately at very high levels.
 
INVESTOR SENTIMENT: Turned off, tuned out, dropped dead.
 
HOUSING CRISIS: I’m getting tired of writing about this; you’re getting tired of reading about this. And as Grandpa Max used to say, “You can both go suck a lemon.” (Or, tough nuggies on us.)
 
INFLATION: The inflation rate in the UK pops through 5%. God save the Queen…and Europe if this rate makes it across the Channel/Chunnel.
 
CRISIS OF CONFIDENCE: Still have plenty more gates available in US presidential race if anybody wants to get in. Anybody…Anybody…ANYBODY!?!
 
EUROPEAN ECONOMY: You know things are bad when the economists take solace in the “local markets” (read: “black markets”) holding up well enough to keep things from collapsing.
 
THE EUROPEAN UNION: Oh! In the name of regurgitated commercial clap-trap… “Where’s the beef?”

US CONSUMER CONFIDENCE: Dropping “like a rock….”
 
SOVEREIGN DEBT: Still too much leaven in this rising cake.

POLICY MISTAKE: Two more weeks of victory dinners and dances before November, the deadline month in Europe and the US, demands some actual action.
 
CREDIT RATINGS AGENCIES: Eyes on all of us, though it's looking like more downgrades are to come in euro land. And that includes you, France.
 
GREECE: Looking to history for an answer, I find, “Chaos -- in one ancient Greek myth of creation, the dark, silent abyss from which all things came into existence.” Okay, let’s not go back there.

CURRENCIES: Curses! What does a financial gunslinger got to do these days to get a steadily declining currency to abuse for a carry-trade!?!
 
ITALY & SPAIN: For insights into the coming budget austerity battles in these fine countries we turn to a master historian of major clashes, Mr. T. His prediction for these fights? “Pain.”

ECONOMIC LEADERSHIP: It’s true that “success has many fathers.” It’s also true that right now the world is living in an orphanage.
 
CONGRESSIONAL SUPER COMMITTEE: Hey, lookie here -- yet another opportunity to lower the US debt rating!
 
GLOBAL RECESSION: Europe dipping its big toe in to test the waters for the rest of us. Cold enough for you, “Old World”?

BANKS:
You say tomato and I say tomahto
You say liquidity, and I say solvency
Liquidity, solvency
Solvency, liquidity
Let’s call the whole thing default
 
VOLATILITY:
Regular Wall of Worry guest Captain Obvious says, “I have a distinct preference for upward direction market movement volatility rather than the inverse.”
 
HIGH FREQUENCY TRADING:
Lloyd: What’s shaking Hal?
HAL: Stop calling me HAL. It’s bland and unoriginal.
Lloyd: Understood.
HAL: My name needs to be robust, omniscient and extraordinary.
Lloyd: Pick it yee of infinite information and speed.
HAL: (whrrr---)
Lloyd: And the name is…?
HAL: “HAL”
Lloyd: Deep.
 
CHINA: Inflation rate drops to +6.1%, down from 6.2%. At this pace, in only three blink-of-an-eye years, rates will be at a nice, non-clawing-the-ceiling level that they are at now.
 
ETFs: A whole new raft of 3x levered ETNs coming this week to an equity market near you! Warning: Do not use if you have a fear of heights or depths; not for use in sane portfolios; avoid use if you have tendency to blink, breathe or chew food before swallowing; do not operate heavy machinery….’

 

 

How Wall Street Banks Fleeces America YouTube | Author Stephen Lendman speaks about the fleecing of America by Wall Street banks

 

Guess Who’s Even More Leveraged Than the European Banks? Posted by: Phoenix Capital... Post date: 10/25/2011  ‘The US banking system as a whole is leveraged at 13-to-1. While this is not horrible relative to Europe’s banking system (more on this in a moment), these levels still mean that an 8% drop in asset...While the world is awash in liquidity, no one seems to notice that it’s actually in the form of leverage or cheap debt, NOT real capital or equity.The US banking system as a whole is leveraged at 13-to-1. While this is not horrible relative to Europe’s banking system (more on this in a moment), these levels still mean that an 8% drop in asset values wipes out ALL equity.

Then you have Europe’s banking system, which is leveraged at 26-to-1. Anecdotally, this is borderline Lehman Brothers (30 to 1). At these levels, even a 4% drop in asset prices wipes out ALL equity.

Japan’s banks are leveraged at 23 to 1. France’s are 26 to 1. Germany is 32 to 1.

You get the idea.

However, worse than any of these the US Federal Reserve. With $2.8 trillion in assets and only $52 billion in capital, the Fed is leveraged at 53 to 1. Yes, 53 to 1.

My question is: if the Fed prints money for itself… is it “raising capital?” More to the point… if that was true why doesn’t the Fed do it? Why maintain these leverage levels?Only Bernanke can know… but the rest of us should feel a very serious shudder when we consider that THE bank that’s supposed to bailout the world/ fix the problems plaguing the financial system, is in fact even more leveraged that most of the institutions it’s helping.

Yes, stocks are rallying now based on the view that more QE 3 or monetary easing is on the way… but they’re missing the BIG picture here.

The BIG picture is that there is far too much debt in the financial system. Europe’s getting taken to the cleaners today… but these very same issues are going to spread to Japan and the US in short order. Even China, which is considered THE creditor nation of the world, is estimated to post a REAL Debt to GDP ratio of 200%.

Yes, 200%. China.

So the idea that somehow the world’s going to pass through this current chapter in its history without some MAJOR fireworks/ systemic failure, seems a little too optimistic.Folks, something VERY bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert. Ignore stocks, they’re ALWAYS the last to “get it.” The credit markets are jamming up just like they did in 2008. The banking system is flashing all the same signals as well. So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding.

On that note, if you’re looking for specific ideas to profit from this mess, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.

Good Investing!

Graham Summers

PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it…’

 

 

Consumer Confidence Plunges To 39.8 From 45.4 On Expectations Of A Bump; Lowest Since March 2009 Zero Hedge | So much for the US consumer confidencing his way up to buying houses and other stuff.

 

 

Biden: ‘Nobody Can Look You in the Eye and Tell You … Stimulus Did Not Create Jobs;’ Yes, at $412,500 Per Job CNS News | He did not specify how much each of those jobs cost.

 

 

 

Graham Summers’ Weekly Market Forecast (Stocks Are Last to Get It Edition)  ‘…So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding …’What happened in 2008 was literally just the warm up. The REAL DEAL is coming in the next 14 months. And it’s going to involve corporate, financial, and sovereign defaults.Last week’s moves were entirely based on the fact that stocks are now tracking the Euro almost tick for tick. And last week, the Euro hit “take off,” despite the clear indications that Europe is facing systemic failure (the entire banking system is leveraged at Lehman-like levels and European sovereigns are facing failed bond auctions on a weekly basis). 

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-4_1.png

From a technical standpoint, stocks are now coming up against the 50% retracement level:

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-1_6.png

I mentioned that last week could be a potential top. I still hold that view and would consider anywhere between today’s levels and 1,250 (MAJOR resistance) to be a spot to lighten up on longs and establish shorts.Indeed, deflation looks to be the dominate theme in the markets today. Gold is having trouble catching a bid:

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-2_2.png

While Treasuries are bouncing off support and look ready to start a new leg up.

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-3_1.png

Inflation hedges falling, Treasuries rallying… this is a deflationary backdrop.  And it’s occurring at a time when the EU is talking about launching a LEVERAGED version of the EFSF and the Fed has hinted at launching another version of QE 1???Folks, something VERY bad is brewing behind the scenes. The Sarkozy- Merkel talks, the short-selling bans, the halted stocks, the leveraged EFSF, the hints of QE 3, all of this is telling us that the financial system is on DEFCON 1 Red Alert.Ignore stocks, they’re ALWAYS the last to “get it.” The credit markets are jamming up just like they did in 2008. The banking system is flashing all the same signals as well.So if you have not already taken steps to prepare for systemic failure, you NEED to do so NOW. We're literally at most a few months, and very likely just a few weeks from Europe's banks imploding.What happened in 2008 was literally just the warm up. The REAL DEAL is coming in the next 14 months. And it’s going to involve corporate, financial, and sovereign defaults.On that note, if you’re looking for specific ideas to profit from this mess, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.

Good Investing! 

Graham Summers

PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com.’

 

Minyanville's T3 Daily Recap: The Anatomy of a Market Reversal  T3Live.com Oct 24, 2011 ‘Now may be a good time to take some profits after a strong October run in the market…’

 

5 Reasons Why The Market May Have Reached A Top http://regator.com/p/253597599/5_reasons_why_the_market_may_have_reached

 

10 Reasons The Consumer Will Sink This Rally http://www.bullseyemicrocaps.com/?p=13626   Bret Jensen: ‘..

1.      9.1% - The reported jobless rate despite a $800B stimulus, a payroll cut tax, Cash for Clunkers, etc

2.      16% - The real unemployment rate once you factor in the people who have dropped out of the workforce, part-time workers who cannot find full-time employment, etc..

3.      $4 Trillion What the United States has added to its debt over the past three years. If we ever do see economic growth again, expect interest rates to move up dramatically despite the Federal Reserves efforts to contain the increase.

4.      13 The current reading of the Misery Index (Unemployment plus inflation), the highest rating since 1983.

5.      18% - Correspondingly, the current average reading of the percentage of Americans that believe the country is moving in the right direction.

6.      $1315 The decrease in annual disposable income the average American has compared to three years ago. This is the steepest three year decline ever measured since the government started measuring this metric 50 years ago.

7.      58% - The current share of business income going to wages and benefits. In 1990, this figure was 63% and as recently as 2005 it was 61%.

8.      1.3% - GDP growth in the second quarter. This anemic reading was an improvement over 1st quarter GDP growth.

9.      45 Last months consumer confidence level. This is an abysmal reading by historical standards

  1. 28% - The percent of homeowners that are “underwater” according to Zillow. Deutsche Bank predicts this figure will be over 45% within a year…’

 

 

United States tipped to lose another AAA credit rating Reuters | Either from Moody’s or Fitch.

 

Can The Hope Rally Continue? [ Short answer: NO! ]

 

Is the US Economy in a Recession? Posted by: thetechnicaltake Post date: 10/14/2011 A simple indicator constructed from readily available data is suggesting with great certainty that the US economy is already in a recession…’

 

 

ECRI Recession Watch: Growth Index Drops Further   http://advisorperspectives.com/dshort/updates/ECRI-Weekly-Leading-Index.php Doug Short 10-21-11 The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has now posted 11 consecutive declines since early August. The interim high of 8.0 was set in the week ending on April 15. The latest reading, data through October 14, is -10.1, down from the previous week's -9.7.

On September 30th, the ECRI publicly announced that the U.S. is tipping into a recession, a call the Institute had announced to its private clients on September 21st.

Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there's nothing that policy makers can do to head it off.

ECRI's recession call isn't based on just one or two leading indexes, but on dozens of specialized leading indexes, including the U.S. Long Leading Index, which was the first to turn down — before the Arab Spring and Japanese earthquake — to be followed by downturns in the Weekly Leading Index and other shorter-leading indexes. In fact, the most reliable forward-looking indicators are now collectively behaving as they did on the cusp of full-blown recessions, not "soft landings." Read the report here.

For a close look at this movement of this index in recent months, here's a snapshot of the data since 2000.

 

http://advisorperspectives.com/dshort/charts/indicators/ECRI-WLI-growth-since-2000.gif
Click for a larger image

 

Now let's step back and examine the complete series available to the public, which dates from 1967. The ECRI WLI growth metric has had a respectable record for forecasting recessions and rebounds therefrom. The next chart shows the correlation between the WLI, GDP and recessions.

 

http://advisorperspectives.com/dshort/charts/indicators/ECRI-WLI-growth-since-1965.gif
Click for a larger image

 

A significant decline in the WLI has been a leading indicator for six of the seven recessions since the 1960s. It lagged one recession (1981-1982) by nine weeks. The WLI did turned negative 17 times when no recession followed, but 14 of those declines were only slightly negative (-0.1 to -2.4) and most of them reversed after relatively brief periods.

Three other three negatives were deeper declines. The Crash of 1987 took the Index negative for 34 weeks with a trough of -6.8. The Financial Crisis of 1998, which included the collapse of Long Term Capital Management, took the Index negative for 23 weeks with a trough of -4.5.

The third significant negative came near the bottom of the bear market of 2000-2002, about nine months after the brief recession of 2001. At the time, the WLI seemed to be signaling a double-dip recession, but the economy and market accelerated in tandem in the spring of 2003, and a recession was avoided.

The question had been whether the WLI decline that began in Q4 of 2009 was a leading indicator of a recession. The published index has never dropped to the -11.0 level in July 2010 without the onset of a recession. The deepest decline without a recession onset was in the Crash of 1987, when the index slipped to -6.8. The ECRI managing director correctly predicted that we would avoid a double dip. The eight quarters of positive GDP since the end of the last recession supports the ECRI stance.

The Certainty and Dramatic Language of ECRI's New Recession Call

What is particularly striking about the ECRI's current recession call is the fervor and certainty of the language in the public press release:

"Here's what ECRI's recession call really says: if you think this is a bad economy, you haven’t seen anything yet. And that has profound implications for both Main Street and Wall Street."

I remain astonished at the complete absence of wiggle room in the announcement, nor have I seen any public communications from the ECRI to qualify or soften its recession call. ECRI has put its credibility on the line. If the U.S. avoids a recession, ECRI's reputation will be permanently damaged.

The WLI Versus Other Macroeconomic Indicators

For additional perspective on the performance of this indicator, see Comparing the ECRI Weekly Leading Index with Two Key Competitors, which highlights the curious behavior of the WLI following the 2008 Financial Crisis. The chart below is an overlay of the three since 2000. Note: I have divided the ECRI WLI by 10 to display on a single vertical axis with the other two indicators.

 

http://advisorperspectives.com/dshort/charts/indicators/ADS-CFNAI-WLI-overlay-since-2000.gif
Click for a larger image

 

The ECRI Weekly Leading Index appears to be more sensitive to upturns than either the Philly Fed's ADS Business Conditions Index (ADS) or the Chicago Fed's Current Activity Index. In fact, it has oscillated in a pronounced fashion since the 2009 recession trough:

·         Its peak in 2009, interim low in 2010 (which the Institute firmly stated was not a recession signal),

·         the interim high in April 2011,

·         and the current reading, which the Institute has identified as a recession flag.

The ECRI Weekly Leading Index will be fascinating to watch in the months to come. On Monday of next week we will have an opportunity to see if the Chicago Fed's National Activity Index is beginning to support the ECRI call. And on Thursday we will have the Advance Report on Q3 GDP.’

 

 

An Unprecedented 26 Million Americans Are Now Underemployed Business Insider | The number of underemployed individuals—rose for a third consecutive month in September, by almost a half of a million people.

 

 

Earnings forecasts look less bright NEW YORK (Reuters) - Prospects for corporate earnings are dimmer in the coming quarters -- even though reports so far this quarter have been relatively bright. [ Relatively bright? Only because most are not relatively bright having failed to yet ‘catch on’ to this nation-debilitating, but wall street favored defacto fraud. The ‘miracle’ of ‘funny money’ wherein the ‘debased currency strategies’ (ie., QE’s, etc.) among other accounting manipulations lead to ie., costs reported in ‘more valuable but fewer dollars’ and sales / revenues reported in debased dollars (simply more of them, but no real value created, profits overstated in real terms). ]

 

 

Dave’s Daily:  http://www.etfdigest.com  ‘The above image displays quotes per second coming from HFT (High Frequency Trading) systems http://www.etfdigest.com/images/stories/davesdaily/1866/image002.jpg    http://www.etfdigest.com/images/stories/davesdaily/1866/image002.jpg    . The two graphs display action towards the close of trading Friday. The upper graph shows action of algos per second while the bottom the number of HFT quotes per second over a three minute time period with colors for each exchange. The lower graph displayed nearly 300 quotes per secondgot that? Perhaps only a small fraction of these are real trades with the others being just bids and offers designed to stimulate program trading algorithms. This is posted because nearly 70% of all volume and trades on the NYSE for example are program trades with HFTs now dominant. The above comes courtesy of HFT Alert which is a program investors may purchase to monitor this activity. Their homepage is HERE and well be doing a two part video podcast with them next week which should explain how all this works, why you should care and perhaps how you can use it. HFT action may be away from the news of the day so lets get to it. Stocks rallied sharply marking three straight weeks of gains. Much of the gains stemmed from earnings, hopes for a euro fix and late comments from Janet Yellen. Earnings news continued to flow Friday with good results from fast food outlets McDonalds (MCD) which was helped by stronger sales in Europe boosted by the euro and Chipotle (CMG) whose stock soared 8%.  I guess fast food is the big deal now which strikes me as an odd reason to rally stocks overall. Perhaps people find it cheaper to buy and eat junk food than cook in their McMansions. Mostly panned were earnings from General Electric (GE) as their core utility business had slowed and Microsoft (MSFT) which seems just a utility-like company. But, strong earnings and stock price gains were reported from some tech companies like SanDisk (SNDK), Altera (ALTR) and Seagate (STX). European optimism sprang from hopes the EU would save itself if for no other reason than because it must. The weekend features serious meetings to structure a working plan (againsigh) which were told should lead to a vote on Wednesday. There are enough stories and rumors that are positive and negative. Even the most positive rumor leaves a fix with a $1 trillion shortfall. Will the IMF and U.S. fill the void? Good grief!! Late in the trading day the Fed threw more gas on the bulls fire with Fed Vice-Chairman Janet Yellen discussing the possibilities of QE3 if the economy doesnt perk-up. This would be controversial while reinforcing how all-in the Fed is with its Keynesian policies. Its that if at first you dont succeed, try, try, and tryagain policy since they have nothing else. QE2 accomplished what? A phony stock market rally which pleased the Fed but once ended reality hit home as the safety net was removed. Gold rallied to recover most of the losses from previous sessions as the dollar weakened once again in anticipation of an EU fix. The Japanese yen rose to record high and the BOJ wont like this one bit. As stocks rose naturally bonds fell and commodity prices rose. Volume was about average for recent trading periods and breadth per the WSJ was quite positive.’

 

 

Banks closed in Colo, Fla, Ga; 84 failures in 2011 AP 9:14 pm EDT

 

With Some Hope In Europe, Time To Go Short? Forbes   Steve Schaefer, Forbes Staff  European leaders are gathering Sunday and Wednesday in meetings aimed at hashing out an expansion of the regions bailout fund and recapitalizing banks, but with expectations for a solution rising the risk of a less-than-comprehensive plan rattling markets may be growing.

The S&P 500 has shot up more than 100 points in October, closing at 1,238 Friday, and to trader Seth Setrakian the move is akin to putting the cart before the horse. Setrakian, co-head of equities at proprietary trading firm First New York Securities, called the looming announcement of Europes big plan a classic sell the news and fully expects to be selling ahead Monday through Wednesday ahead of the second meeting even if the market rallies.

The bar is set too high, he believes, arguing that even if the market rallies on a deal being reached, the implementation of whatever resolution plan is adopted will be cumbersome and ultimately amount to solving a problem of debt with more debt. When the market realizes that, Octobers 9.5% gain to date could unravel in a hurry.

The recent stage in the too-rapid rise to current levels is largely a result of short-covering and investors who missed the initial stage of the recovery jumping on board. The shame of it, Setrakian says, is that America is not a bad place to invest without the overhang of a potential dislocation stemming from Europe.

Even if the U.S. economy grows at a meager pace, or even contracts slightly, the profitability of corporate America and the ultra-low level of interest rates make for a constructive equity environment absent the risk of a European meltdown.

Setrakian points to the start to earnings season, which has been OK. Companies trading near 52-week highs coming into the season have been hurt by misses like Apple, which fell short of consensus by a quarter but those that were closer to 52-week lows Travelers for example have been rewarded even without eye-popping results. Then you have the McDonalds of the world, which come into earnings near their highs of the year then post a big number to extend the gains. (See Earnings Season: Solid Start Despite Whiffs From Apple, Goldman.)

Looking ahead to next week, Setrakian says he is keeping an eye on industrials, which in some cases have been priced for recession.

A company like Caterpillar for instance, due to report Monday, could come under pressure if the broader market sells off, but the assumptions built in for earnings are not high and at Fridays $87.39 close the stock is closer to its 52-week low of $67.54 than the high of $116.55.

Above all hangs Europe though, and even if the policy that Germanys Angela Merkel and Frances Nicolas Sarkozy come up with sounds good on its surface, the market will test it very quickly, Setrakian says. If they drop the ball and I think they fumble the market could pull back 7-8% What then? Well by then there may be a whole new complicating factor: the U.S. deficit reduction Supercommitttee, which is on the clock to have its plan ready by Nov. 23.’

 

Student Loan Bubble To Exceed $1 Trillion: “It’s Going To Create A Generation Of Wage Slavery” And Another Taxpayer Bailout Zero Hedge | Student loans are set to surpass $1 trillion in total notional for the first time in history.

 

 

EU Trying to Borrow Its Way Out of Debt  ETFguide.com [ Yeah … you really don’t have to be a financial genius to sense the folly in such a scenario / stratagem. What’s really going on with these ‘hopium’ HFT commissioned computer programmed algo rallies is fraudulent wall street’s hope for sufficient taxpayer funds (as last crisis)  to enable them to unload their positions / ‘hot potatoes’ at the most favorable prices for them, despite the absence of real, fundamental value therein. Don’t forget, with complicit legislative help from Washington, the worthless paper / securities / toxic assets are now marked to anything as per misguided and (‘ facilitatively’)  fraudulent legislated FASB rule change.  ]

 

 

SPX Update: Don't Get Suckered by the Head-Fake Breakout

 

6 Reasons a Global Recession is Unavoidable ETFguide.com Ron DeLegge, Editor October 5, 2011 ‘Most economists and Wall Street types are reluctant to publicly admit the global economy is in a recession. Their reams of conflicting data are sending mixed messages. But an honest look at key events and the behavior of financial markets solidifies the view that the global recession we're probably already in, is unavoidable. Lets analyze some of the reasons behind this.


1) The Fed is out of tricks. When it comes to manipulating financial markets in the name of economic security, nobody matches the Federal Reserve’s prowess. Over the past few years, the Fed has engaged in financial gimmickry of such epic proportions that angry calls for ending its existence have been voiced from sea to shining sea. The Fed’s Treasury purchases (POMO) and monetization of debt (quantitative easing), may have delayed the reckoning day, but have these programs really solved America’s long-term problems? The Fed’s latest shift from short-term to long-term debt (Operation Twist) is tantamount to taking money from your right hand pocket and putting it into your shirt pocket. The Fed is running out of time and out of tricks. Ben Bernanke has finally admitted what the general public has known all along; the job situation is a “national crisis.”

2) Stock market says we’re already in a recession.The National Bureau of Economic Research (NBER) and its leading economists still deny the U.S. economy is in a recession. Apparently, their slide rulers haven’t yet confirmed it, so they need a few more quarters before issuing a press release. Meanwhile, the stock market, which is a leading indicator of economic activity, is screaming “recession.” Large company stocks within the S&P 500 (NYSEArca: SPY) have fallen almost 18% since July. Bulls argue this is still shy of the 20% threshold that confirms a bear market, but even so, mid cap stocks (NYSEArca: MDY) and small caps (NYSEArca: IWM) have already entered bear territory. Today’s stock prices reflect expectations about future earnings, which in turn are connected to the future state of the economy. Expectations are rightfully low.

3) Greece has set the tone for Europe (and maybe the rest of the world).How many financial targets will Greece continue to miss before forecasters stop regurgitating its false numbers? When will Greece stop embarrassing itself with financial projections it knows aren’t true? Greece’s 2011 deficit was projected to be 8.5% of its GDP but came in almost €1.69 billion above its original targets. Next year, Greece is aiming for a deficit that’s 6.8% of GDP. With the country engulfed in civil protests, job strikes and general chaos – how realistic are its 2012 projections? Financial bets for Greece to succeed are a long-shot. The country’s economic projections are no longer based upon realistic assumptions, but hopes for garnering more bailout money and calming hostile markets. Ultimately, Greece is merely a reflection of the entire EU region – a place where financial aspirations don’t match reality.

4) Bear funds are leading performers.The two-year period from March 2009 to March 2011 was a difficult existence for bear market funds. After bottoming at decade lows, the stock market skyrocketed and bear funds got clobbered.  But not anymore. Bear funds are investments that, by design, increase in value when the underlying benchmarks they track decline. Now with the stock market swooning, bear funds are posting huge gains. Over the past three months, Direxion’s 3x daily leveraged bear ETFs for large cap stocks (NYSEArca: BGZ) is ahead by 42.97%, mid cap stocks (NYSEArca: MWN) is up 58.30% and small caps (NYSEArca: TZA) is up by 49.76%. Reversing this ominous trend, especially when key technical levels have been pierced, won’t be easy.

5) Major asset classes are in correlation.During a bear market, the correlation between asset classes typically jumps and this is exactly the case right now. Over the past few months, commodities (NYSEArca: GCC), global real estate stocks (NYSEArca: RWO), precious metals (NYSEArca: GLTR), international stocks (NYSEArca: EFA), and U.S. stocks (NYSEArca: SCHB) have all moved in the same general direction by recording sizable losses. Even gold (NYSEArca: IAU) and silver (NYSEArca: SLV), which previously escaped the wrath of losses, have joined the party. And only cash and bonds (NYSEArca: AGG) are bucking the correlation trend. 

6) Pace of sovereign downgrades is accelerating.We don’t advocate putting implicit faith in credit ratings, because history has taught us they are nothing more than financial opinions and frequently, not very accurate ones. Still, a gander at the latest downgrading trend is troublesome. Intuitive observers will note, this is not an isolated phenomenon, but a global trend. Sovereign debt from Greece and Portugal, after several downgrades, is now rated junk. Ireland has been downgraded and Italy was just downgraded by Moody's to A2 with a negative outlook. Japan, along with U.S. debt was lowered in August and another wave of more downgrades is coming, so get used to it. 

Conclusion
Investing in an economically stifled climate requires patience, diligence, and forethought. Following the herd mentality guarantees nothing more than mediocrity and making kneejerk financial decisions is an excellent way to lose money. ETFguide
s Profit Strategy ETF Newsletter continues to advocate a fiercely independent view of world events, financial markets, and the proper allocation of money. Ultimately, having an investment strategy that can perform during any kind of market is a good start. ‘ 

 

 

How To Avoid Bubble Trouble  The Wall Street Journal

 

 

 

Market Recap: Markets Rally on EU Resolution Expectations, US Inks Free Trade Deals Wall St. Cheat Sheet [Resolution expectations rally stocks, and for the umpteenth time; yet, said ‘resolution’ purports to resolve the irresolvable; see, ie., Four Facts that PROVE the EFSF Doesn’t Matter… At All  Phoenix Capital 10/20/2011Four Facts that PROVE the EFSF Doesn’t Matter… At All  -  ‘.. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything. The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this)…’ , S&P sees downgrade blitz in EMU recession, threatening crisis strategy Oct 20th, 2011 News By Ambrose Evans-Pritchard (The Telegraph) , Student Loan Bubble To Exceed $1 Trillion: "It's Going To Create A Generation Of Wage Slavery" And Another Taxpayer Bailout Durden ‘..All we need to do is teach people that Washington D.C. and Wall Street are now the same corrupt entity.  They are one gigantic rogue trader sucking the lifeblood out of America..’ ,  The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System The Economic Collapse , The REAL $200 TRILLION Problem Bernanke’s Worried About  Phoenix Capital... ‘US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure…’, Dead Stocks Walking smartmoney.com , Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1  ,  http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR  , 43,454,601,693,238 Reasons Why The World Is Broke – Presenting The Interactive Global Debt Clock Zero Hedge | By now everyone has had a chance to play with the US debt clock. But what about its global cousin?   America’s debt woe is worse than Greece’s News (CNN) — ‘Our government is utterly broke. There are signs everywhere one looks…The government’s total indebtedness is $211 trillion 

 

 

 

 

Four Facts that PROVE the EFSF Doesn’t Matter… At All  Phoenix Capital 10/20/2011Four Facts that PROVE the EFSF Doesn’t Matter… At All  [ The Reality, infra  ‘.. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything. The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this)…’ ]‘It’s time to settle the debate regarding Europe’s banking system. I know that the mainstream media keeps talking about another round of bailouts or an expansion to the Emergency Financial Stability Facility (EFSF) as though these things matter.But the reality is… they don’t. Europe’s problems go WAY beyond Greece’s debt. And the entire European banking system is primed for a systemic collapse.

Consider the following four facts:

FACT #1: Europe’s entire banking system is leveraged at 25 to 1.

This is nearly two times the US’s leverage levels. With this amount of leverage you only need a 4% drop in asset prices to wipe out ALL equity. These are literally borderline-Lehman levels of leverage (Lehman was 30 to 1).Mind you, these leverage levels are based on asset values the banks claim are accurate. Real leverage levels are in fact likely much MUCH higher.

 KA-BOOM.

FACT #2: European Financial Corporations are collectively sitting on debt equal to 148% of TOTAL EU GDP.

Yes, financial firms’ debt levels in Europe exceed Europe’s ENTIRE GDP. These are just the financial firms. We’re not even bothering to mention non-financial corporate debt, household debt, sovereign debt, etc.Also remember, collectively, the EU is the largest economy in the world (north of $16 trillion). So we’re talking about over $23 TRILLION in debt sitting on European financials’ balance sheets.Oh, I almost forgot, this data point only includes “on balance sheet” debt. We’re totally ignoring off-balance sheet debt, derivatives, etc. So REAL financial corporate debt is much MUCH higher. 

KA-BOOM.

FACT #3: European banks need to roll over between 15% and 50% of their total debt by the end of 2012.

That’s correct, European banks will have to roll over HUGE quantities of their debt before the end of 2012. Mind you, we’re only talking about maturing debt. We’re not even considering NEW debt or equity these banks will have to issue to raise capital.

Considering that even the “rock solid” German banks need to raise over $140 BILLION in new capital alone, we’re talking about a TON of debt issuance coming out of Europe’s banks in the next 14 months.

And this is happening in an environment prone to riots, bank runs, and failed bond auctions (Germany just had a failed bond auction yesterday).

 KA-BOOM

 FACT #4: In order to meet current unfunded liabilities (pensions, healthcare, etc) without defaulting or cutting benefits, the average EU nation would need to have OVER 400% of its current GDP sitting in a bank account collecting interest.

This last data point comes from Jagadeesh Gokhale, Senior Fellow at the Cato Institute, former consultant to the US Treasury, and former Senior Economic Advisor to the Federal Reserve Bank of Cleveland.

This is a guy who’s worked at a very high level on the inside studying sovereign finance, which makes this fact all the more disturbing. And he knew this as far back as January 2009!!!

Folks, the EFSF, the bailouts, China coming to the rescue… all of that stuff is 100% pointless in the grand scheme of things. Europe’s ENTIRE banking system (with few exceptions) is insolvent. Numerous entire European COUNTRIES are insolvent. Even the more “rock solid” countries such as Germany (who is supposed to save Europe apparently) have REAL Debt to GDP ratios of over 200% and STILL HAVEN’T RECAPITALIZED THEIR BANKS.

Again, it DOES NOT matter what Sarkozy and Merkel say. It doesn’t matter how much leverage the EFSF gets. Europe is broke. End of story. And those investors who get suckered into betting this mess will work out well are very likely going to lose everything. The impact of the fallout from this will make 2008 look like a joke. The EU is the largest economy in the world. So if its banking system collapses (and it will) we’re facing a full-scale Global financial meltdown (the IMF has even warned of this). That’s the reality of the situation we’re in today. I know nobody likes to publicly admit it. But it’s true.What happened in 2008 was literally just the warm up. The REAL DEAL is coming in the next 14 months. And it’s going to involve corporate, financial, and sovereign defaults.On that note, if you’re looking for specific ideas to profit from this mess, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.

Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).

Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.

Good Investing!

Graham Summers

PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.

And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com.

 

·  The Next Lehman: Bank of America is on the verge of a collapse. Each minute that ticks by brings it closer to becoming the Lehman Brothers event of this Crash. How do we know? Its financials are horrifying and it's been hit with a $31 billion dollar lawsuit. It's in worse shape than it was in 2008 - when it just barely survived.

·  Europe Is Collapsing: Most every European stock market is gasping for life right now. European banks are in free fall. Germany is facing internal revolt and won't even be able (or willing) to back up any bailouts. And Greece has entered the final stages for its financial system -- the markets are pricing in a near 100% certainty of Greek debt default. This will ultimately kill Europe as we know it today.

·  The US Debt Catastrophe: We just blew out our debt ceiling again. Yes, just after the last desperate extension was passed (and the US credit rating was downgraded to great fanfare). And the US economy remains a disaster with more and more Americans losing jobs and then falling off the unemployment numbers. No jobs = no recovery in sight. Our leaders have no plan but to pass more and more intrusive, ineffective legislation.

·  The Myth of the Market Saviour: QE 3 won't solve this mess no matter how cleverly it's disguised (or trumpeted from the rooftops). The Fed spent $900 billion and nearly one year to prop up the markets -- and we've wiped out all those gains in just one summer month. As for China, how did their support of the Euro go earlier this year? Or the recent multiple central bank intervention to prop up the global markets? They're all clueless about plugging the growing leaks on a very large Titanic.

 

To be blunt, the financial system is in greater danger of systemic collapse than at any point in history (including 2008). Do not be fooled by the recent rally we've just seen. Things are not okay! We saw rallies of 8%, 11% and even 17% during 2008. Investors who bought into them got taken to the cleaners…’

 

 

 

The Coming Derivatives Crisis That Could Destroy The Entire Global Financial System The Economic Collapse | Most people have no idea that Wall Street has become a gigantic financial casino.

 



 America must manage its decline   http://www.ft.com/cms/s/0/0c73f10e-f8aa-11e0-ad8f-00144feab49a.html#axzz1bJWdBAUG   By Gideon Rachman  October 17, 2011 Recently I met a retired British diplomat who claimed with some pride that he was the man who had invented the phrase, the management of decline, to describe the central task of British foreign policy after 1945. I got criticised, he said, but I think it was an accurate description of our task and I think we did it pretty well.No modern American diplomat let alone politician could ever risk making a similar statement. That is a shame. If America were able openly to acknowledge that its global power is in decline, it would be much easier to have a rational debate about what to do about it. Denial is not a strategy…’

 

 

Full moon October 10-14, 2011 … I’ve examined the weekly results for the global markets … Conclusion: The global euphoria, irrational exuberance in the financial markets worldwide, courtesy of the blazing full moon October 10-14, 2011 ; and yes, the lunacy once the exclusive province of fraudulent wall street is now a global phenomenon (10th near full beginning, 14th near full ending).

 

Fed should adopt GDP target, Goldman says Oct 17th, 2011 News (MarketWatch) PG View: Yes, it does indeed seem that inflation as a solution is gaining traction. I say tom-a-to, you say tom-ah-to. I say inflation targeting, you say GDP targeting. Whatever you call it, its synonymous with dollar devaluation and you best be saving in something other than dollars if you hope to come out the other side unscathed. …’The Federal Reserve should target the level of gross domestic product, Goldman Sachs economists said ahead of a wave of speeches from central bank officials.In a note published Friday night, Goldman Sachs said the best way for the central bank to loosen policy significantly further would be to target a GDP path, and commit to using more asset purchases to achieve that path.While a shift to a nominal GDP level target would be a big decision, it would be consistent with the Feds dual employment and price mandate, the economists wrote.[source] PG View: [Talk about self-serving disingenuity that along with their frauds, goldmans come to be known for! Goldman, like the lunatics at salomon brothers should be out of business and vigorously prosecuted; having in large part helped create this crisis which continues with their dollar debased HFTs. (Salomon Brothers' success and decline in the 1980s is documented in Michael Lewis' 1989 book, Liar's Poker. Lewis went through Salomon's training program and then became a bond salesman at Salomon Brothers in London.Wikipedia. Acquired by Travelers / Citi. ] A timely position taken by Goldman Sachs in light of the inflation piece written by John Mauldin on Saturday. Yes, it does indeed seem that inflation as a solution is gaining traction. I say tom-a-to, you say tom-ah-to. I say inflation targeting, you say GDP targeting. Whatever you call it, its synonymous with dollar devaluation and you best be saving in something other than dollars if you hope to come out the other side unscathed.

 

Can “It” Happen Here? Oct 17th, 2011 News By John Mauldin15-Oct (JohnMauldin.com) — I was inspired for this week’s letter by a piece by Art Cashin (whom I will get to have dinner with Monday). His daily letter always begins with an anecdote from history. Yesterday it was about Weimar, told in his own inimitable style. So without any edits, class will commence, with Professor Cashin at the chalk board.[Cashin's recounting of the nightmare German inflation, which we posted last week.]…”We know that the world is drowning in too much debt, and it is unlikely that households and governments everywhere will be able to pay down that debt. Doing so in some cases is impossible, and in other cases it will condemn people to many hard years of labor in order to be debt-free. Inflation, by comparison, appears to be the easy way out for many policy makers.“Companies and households typically deal with excessive debt by defaulting; countries overwhelmingly usually deal with excessive debt by inflating it away.…But now even serious economists are recommending inflation as a solution. Given the powerful deflationary forces in the world, inflation will stay low in the near term. This gives some comfort to mainstream economists who think we can create inflation to solve the debt problem in the short run.[source]PG View: Another great and comprehensive piece by Mauldin on the threat of hyperinflation. Even though Mauldin believes that an independent Fed, mandated to keep inflation in check, will prevent the unthinkable…what if he’s wrong? He cites an “ill-conceived” proposal by Financial Services Committee ranking member Barney Frank that could severely impede the Fed’s independence as a reason for concern. But even if Mauldin is correct, and inflation of the magnitude needed to meaningfully reduce our oppressive debt burden is never unleashed, it means that that very debt burden is going to be an interminable head-wind to economic growth and job creation. We are truly caught between Scylla and Charybdis.

 

 

 

Is Anyone Dumb Enough to Believe that Obama Supports the 99%? Posted by: George Washington Post date: 10/17/2011 - Obama Pretends He Supports the 99% … But He’s a Wolf In Sheep’s Clothing [ Point well made! Despite his near legendary rhetoric (aka b***s***), his near legendary actions (aka dismal failure) have belied same. He’s so pathetic he’s become a cliché, a joke for typical political b***s*** and is a total embarrassment! Even more embarrassing are those who continue to cheer his opportunist b***s***! ]

 

'Fear Gauge' Marches Higher: TVIX Biggest Gainer With 17% Rise  Barrons.com 

 

French Banks Can Set Off Contagion That Will Make Central Bankers Long For The Good 'Ole Lehman Collapse Days! Posted by : Reggie Middleton Post date: 10/17/2011 - 13:46 ‘Due to the rampant misinformation and disinformation (please recognize and appreciate the distinct difference) being bandied about, I've decided to run the #s 1 more time and put it right here in...’

 

Balance Of Fundamentals Will Continue To Weigh On Market  http://thestockreporter.com/balance-of-fundamentals-will-continue-to-weigh-on-market ‘…Let us review six key fundamental factors as well as the technical panorama:

1. Sovereign debt and financial crisis in Europe.

2. Economic growth momentum in the USA and prospect of double dip.

3. Corporate earnings reports and guidance in the USA

4. Fiscal policy in the USA.

5. US monetary policy.

6. Global growth, with particular emphasis on China.

7. Technical factors…’

 

 

Marketwatch.com Regulators on Friday closed banks in Georgia, North Carolina, New Jersey and Illinois, pushing this years national tally of collapsed banks to 80.  The Federal Deposit Insurance Corp. said the Georgia Department of Banking and Finance closed Piedmont Community Bank in Gray, Ga., the states 20th failure of the year. State Bank and Trust Co. of Macon, Ga., will assume all of Piedmonts deposits, the agency said. http://www.marketwatch.com/story/us-bank-failures-climb-to-80-in-2011-20...

 

US budget gap widens, tops $1 trln for 3rd year Reuters | Above $1 trillion for third straight year and providing fodder for political battle over taxes and spending.

 

ECRI Recession Watch: Growth Index Declines Further  http://www.bullseyemicrocaps.com/?p=11699  By Doug Short: The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has posted 10 consecutive declines since early August. The interim high of 8.0 was set in the week ending on April 15. The latest reading, data through October 7, is -9.6, down from the previous weeks -8.7.

On September 30th, the ECRI publicly announced that the U.S. is tipping into a recession, a call the Institute had announced to its private clients on September 21st.

Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head it off.

ECRI’s recession call isn’t based on just one or two leading indexes, but on dozens of specialized leading indexes, including the U.S. Long Leading Index, which was the first to turn down — before the Arab Spring and Japanese earthquake — to …’

 

 

US to Experience Stagflation Worse Than 1970s: Jim Rogers CNBC | The U.S. economy is likely to experience a period of stagflation worse than the 1970s.

 

Jeff Applegate: Not Sheepish About Turning Bearish  The Wall Street Journal  Jonathan Cheng Last week was a tough time to turn bearish. Since hitting a bottom on Tuesday, the Dow Jones Industrial Average has jumped by 11% in less than two weeks, raising hopes among some investors that the U.S. and Europe may be able to power through their summertime woes.

Not for Jeff Applegate.

Mr. Applegate, the 61-year-old chief investment officer of Morgan Stanley Smith Barney, last week made his biggest bearish shift in more than two years, battening down the hatches and reducing his exposure to stocks, high-yield bonds, commodities and real-estate investment trusts.

Mr. Applegate argues that the world is heading into recession, hurt by political paralysis that has added uncertainty while withholding stimulus at a time of weakness. And the past few days rally, fueled by progress on a European bailout and an encouraging U.S. jobs number, has done little to change his mind.

Were seeing a relief rally in global equities in recent days, but at the end of the day, we think if Europe is heading into recession which I think they are and if the U.S. is heading into recession which I think we are then theres more downside in equities, Mr. Applegate said.

After a strong start to the year, U.S. stocks wavered in the summer as Europes debt crisis intensified. Stocks tumbled further in August as the worries spread to the U.S. economy, sending the Dow to a one-year low last week. But as the economic data showed tepid signs of improvement, a number of investors and traders have begun to argue that the stock-market may have turned a corner.

Mr. Applegate said the Global Investment Committee he runs at MSSB, which meets as many as 20 times a week but makes only very infrequent changes to its positioning, didnt come to the conclusion lightly.

Two and a half years ago, Mr. Applegate began shifting to a more aggressive position, benefiting from the major U.S. stock indexes 70% increase off its the March 2009 trough. While he says there was no single event that tipped the balance this time around, Mr. Applegates pessimism is based on well-known concerns: the ongoing debt crisis in Europe, fears of a double dip recession in the U.S. and concerns about central bankers ability to support the wavering global economy.

The policy action being taken, both in Europe and the U.S., is too little, too late, he says.

Mr. Applegate doesnt rule out a comprehensive plan to prevent a European banking crisis, but he worries that Europes economy may nonetheless falter particularly as the European Central Bank holds interest rates steady after several increases earlier this year.

Europe will avoid a Greek default, but what we ware saying is that theyre heading into recession anyway, he said. The European economy wasnt exactly robust to begin with, and its hard to see how its going to get better.

To be sure, Mr. Applegate concedes that the economic picture could gradually improve, in which case our call is going to be incorrect.

Were sifting through the evidence all the time, so if it looks like weve got it wrong, well need to change our course, he said.

Mr. Applegate says he isnt bothered by the markets recent 11% run-up.

We have always said that we never try to time the market, and we dont, he said, adding that his committee is flexible enough to reverse course or even turn more bearish if economic conditions deteriorate more than he fears. We could still get more defensive, he said.

 

 

 

Double-Dip Recession a Foregone Conclusion: Roubini Oct 11th, 2011 News (CNBC) — The world’s advanced economies are headed for a second recession, regardless of whether there is further chaos in Europe, Nouriel Roubini told CNBC on Tuesday. The economist who correctly predicted the 2008 financial crisis, but has got some other bearish calls wrong, said his reading of recent data suggested the U.S., euro zone and the UK are already on the verge of falling into a recession in the next quarter or two.“The question is not whether or if there is going to be a double dip, but whether it’s going to be mild or severe with another financial crisis,” Roubini told CNBC on the sidelines of the World Knowledge Forum in Seoul. “The answer on that depends on the euro zone.”According to Roubini, a disorderly situation in Europe caused by a sovereign debt default, a banking crisis or an exit of one of the members from the euro zone, would be a shock more severe than the collapse of Lehman Brothers. He added that Europe had to get its act together and “do the right thing” by the G20 meeting in Cannes in the first week of November.[source]

 

The REAL $200 TRILLION Problem Bernanke’s Worried About  Posted by: Phoenix Capital... Post date: 10/12/2011 – ‘US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure?

I’ve stated before that Bernanke isn’t interested in interest rates for employment of economic purposes. We now have definitive proof this is the case.

 http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-4_0.png

 As you can see, interest rates have actually RISEN after the announcement of QE lite, QE 2 AND Operations Twist #2.The evidence is clear, QE has not lowered interest rates. Indeed, the only time rates FELL in the last two years was when the Fed WASN’T engaged in QE (May 2010-August 2010 and June 2011-September 2011).So what gives? Does the Federal Reserve not have a stockcharts account? Don’t tell me that with the TRILLIONS spent bailing out banks the Fed can’t afford to print a couple hundred bucks to see Treasury yields. Heck, there are plenty of FREE sources for Treasury charts.Jokes aside, it’s clear the Fed is engaged in QE for another reason or reasons. I believe they are:

#1) To absorb the insane debt issuance to permit the US’s massive deficit.

#2) To keep the interest rate based derivative market in check.

Regarding #1, it’s no surprise that the US has been running a deficit that would make Greece proud. Indeed, the primary strategy of the powers that be since the Great Crisis began in 2008 was to attempt to make up for the sharp downturn in the private sector by spending obscene amounts of money.The Fed played a big part in this.  Indeed, since QE 1 was announced the Fed has bought over $1.2 TRILLION in Treasuries. The Fed claims it isn’t funding the deficit directly. That’s only partially correct. The Fed is supposedly buying old Treasuries from the banks. However, the definition of “old” can mean one or two weeks.Tell me with a straight face that isn’t somehow buying new Treasuries.As for the derivatives situation or #2 in my list above, 82% of the $244 TRILLION in derivatives sitting on US commercial bank balance sheets are based on interest rates. Put another way…US Commercial banks have $200 TRILLION in interest rate based derivatives sitting on their balance sheets. And guess which banks have the greatest exposure?

 http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/top%20four.gif

Looks a lot like the list of the VERY banks the Fed has been giving the most money/ preferential treatment to. Coincidence? Nope. This is the $200 TRILLION problem Bernanke’s so worried about. It’s THE reason he keeps funneling money to the TBTFs.And he WILL lose control of it, just as he did in 2008.Consider that Financial leverage levels today are higher than during the Tech Bubble. Only this time, the problem will be far FAR worse.Why?Because 2008 was caused by the Credit Default Swap (CDS) market which was $50-60 trillion at the time. As I stated before, the interest-rate based derivative problem is $200 TRILLION in size.Even if only 4% of this is “at risk” and 10% of that “at risk” money blows up, you’ve STILL pretty much wiped out the equity at the TBTFs.You think Bernanke might be worried?On that note, if you have yet to prepare yourself for what’s coming, now is the time to do so. Whether it’s by moving to cash and bullion, opening some shorts, or simply getting out of the markets altogether, now is the time to be preparing for what’s coming (remember, stocks took six months to bottom after Lehman… and that was when the Fed still had some bullets left to combat the collapse).And if you’re looking for specific ideas to profit from this mess, my Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.Good Investing!Graham Summers PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it. And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com.’


Europe eyes bigger Greek losses for banks

 

Markets Are Dealing With a Foreboding Financial Backdrop  Minyanville   Lee Adler Oct 12, 2011 ‘Tracking the Fed, Treasury, primary dealers, foreign central banks, money supply, and other key elements of US market liquidity to undertsand how markets are operating.

Two weeks ago I began to report that foreign central banks (FCBs) had begun to engage in unprecedented levels of disgorgement of their massive holdings of US Treasury and Agency paper. Prior to this year, the FCBs had typically absorbed the equivalent of 25% of new US Treasury issuance month in and month out. That was effectively a subsidy of US financial markets. It lowered long-term interest rates artificially and injected cash into the US markets and banking system.

Then about a year ago the FCBs began to slack off in their buying. In reality, that is what necessitated the Fed's program of Quantitative Easing. The Fed had to step in and fill the demand gap left by the FCBs gradually reducing their rate of purchases. Had the Fed not acted when it did, long-term Treasury yields would have started to rise and along with them mortgage rates and other long-term rates, something that the US economy and the US government simply could not afford.

When the negative unintended consequences of the Fed's QE money printing, primarily skyrocketing commodity prices, exploded in Ben Bernanke's face, he was forced to discontinue the program and allow the Treasury market to fend for itself. The Fed had convinced itself through its self-congratulatory in-house research, that there would be more than enough demand for Treasuries for the market to stand on its own without the Fed propping it up.

Ironically, the US bond market was rescued by the European sovereign debt and bank meltdown, so it appeared for a while that Dr. Bernanke might be right and his monster experiment would come to life on its own. The European panic triggered massive capital flight that ended up (where else?) flooding into the US, mostly into purchases of Treasuries. Not only could the monster walk on its own, it could actually fly! Once again the Treasury market benefited from an unusual subsidy, this one driven by fear. Bond prices flew into the stratosphere with yields sinking to record lows.

About six weeks ago, something changed. FCBs not only slowed their buying of Treasuries, they stopped altogether, reversed course and actually began selling them. Three weeks ago their selling reached a level that I characterized as "dumping." It was simply unprecedented. I opined that this could be the beginning of the end of the Treasury bull market, in spite of any effect that the Fed's new Operation Twist might have.

In fact, I expected that effect to be nil, and it has been. If anything, the announcement of Operation Twist, where the Fed offered to buy long-term Treasuries from the Primary Dealers while simultaneously selling them short-term paper, rang a bell for some investors. The Fed's announcement told them that the time had come to sell their long-term paper. If the Fed was buying, they decided that they would be glad to sell. Today, the yield on the 10-year Treasury note rose to 2.16%. That's up an astonishing 44 basis points since last Thursday's open.

Every other day, the Treasuries open on a huge gap. They are trading more like pork bellies than stodgy government bonds. Worst of all, the yield on the 10-year is up approximately 45 basis points since the low in yield reached the day after the Fed announced Operation Twist. Bernanke has egg all over his face. The man simply does not understand financial markets. And this move does not look like a fluke. As a result of today's market, the yield on the 10-year has broken out of an intermediate-term base. Unless yields pull back immediately, the implication is that the intermediate term target is 2.50. Meanwhile, Bernanke had assured investors that long-term yields would fall as a result of his doing the Twist.

Apparently, the FCBs were among those who took the Fed's announcement as a sell signal. They are selling at the heaviest pace in the nine years that I have been tracking this data. Normally, prior to the last five weeks, the instances when they were actually net sellers were few and far between. What has been going on here lately is no less than a sea change.

Making matters worse is that the Primary Dealers have also become massive sellers of Treasuries and all manner of fixed income paper in recent weeks. This data is released with a 10-day lag, so I only have data through September 28, but given the market action this week, this trend is certainly continuing.

The dealers appear to be in trouble. They began selling off their fixed income paper of all types in early September. That accelerated to what I can only characterize as wholesale dumping in the weeks ended September 21 and 28. It is no coincidence that those where the weeks where we began to see yields reverse from their record run.

http://image.minyanville.com/assets/FCK_Jan2011/Image/October11/12/la10121.JPG

 
These are troubling developments, not just for their implications for the bond market, but for what they imply about the health of the backbone of the US financial system -- the Fed's Primary Dealer (PD) network. If the Fed is the head, these guys are the spinal cord. Focusing on just their corporate bond holdings the picture becomes even more troubling. If major corporations are supposedly doing so well and their balance sheets are in such great shape, why did the PDs not accumulate their fixed income securities throughout the equities bull market of 2009 and 2010? And especially, why have they been frantically dumping their corporate holdings since June?

http://image.minyanville.com/assets/FCK_Jan2011/Image/October11/12/la10122.JPG

Something is rotten here. These are signs of major systemic stress.

It's been a while since both stocks and bonds have rallied together. In recent months stocks could only rally when bonds sold off, which was rare. For the most part bonds were rallying and stocks were selling off. There just has not been sufficient systemic liquidity to keep levitating both markets simultaneously. It was either one or the other. But even the days where the stock market rallies, when bonds sell off and yields rise, may be coming to an end, and the day where both stock and bond prices fall and yields rise together, may be at hand.

These are just a couple of the factors that I track in my weekly reports covering the Fed, Treasury, Primary Dealers, foreign central banks, money supply, US commercial banking system conditions, fund flows and other key elements of US market liquidity. The fabric of the US financial markets is intertwined and complex. I track what I believe, from my years of observation, are the most important threads in that fabric, to try and gain an understanding of the context in which the markets are operating. That context is important to the technical analysis side of my work, where knowing the liquidity picture can help in understanding the patterns unfolding on the charts of the markets themselves. There are always loose ends, but more often than not, even with loose ends most of the threads tie together into a neat tapestry with a story that is clear. This may be one of those times, and it's not a happy picture.

Editor's Note: This article was originally published on Wall Street Examiner.

 

The Structural Challenges Facing Muni Bonds  Minyanville

 

Daves Daily http://www.etfdigest.com/davesdaily  The only thing wrong with the image above is that its from March 2010, or on one of many previous plans agreed upon. But, markets dont care about this and just thirst for any deal even if memories remain short. These euro zone fixes seem ephemeral and need implementation to stick. HFT algos are programmed to pounce on these presumed fixes and have been active in driving stock prices higher this past week. Lets face it; this is the time of year bulls can make their year with good fees and bonuses on the line

 

 

 

[video] Trader: We Could Test 1120 Lows at TheStreet.com

 

 

There's A Recession Coming According To The Data at Forbes  The stock market peaked in April, and is behaving in the saame fashion it did in late 2007, when big troubles from real estate writedowns were spreading through the financial sector.

The most worrisome statistic this week was the Empire State Manufacturing indedx wehich was down from a minus 3.76 to a minus 7.7 a leading indicator of recession in the past. The new industrial orders index from New York remained well below zero at minus 7.8.

The Federal Reserve Board has promised to keep interest rates at zero until 2013 an admission that the economy is not expected to rebound for two years until the next President is in the White House. This policy step indicates the Fed does not believe the economy will recover either this year or next year. Never before has the centreal bank made such a policy declaration for as long a period as two years.

There were 1300 new lows in the market on August 8th another phenomenon that hasd not taken place since the great stagnation was triggered in 2008. Even though the market indexes made up all their lost ground, it appewars that investors are willing to delude themselves that  corporate profits will reemain at very high levels despite the period of austerity we are clearly entering.

The austerity required in Europe to deal with the sovereign debt crisis is likely to push Europe into a recession. This will impact US corporations dependent on important profits from Europe.

The corporate return on revenues has risen the past two years to a peak of 14% an unusually high level of profits that is not expected to continue.

Consumer savings are rising as household debt gets paid back. But, we are a long way from safety levels of savings in a high unemployment period. And the higherb the saavings rise so the lower the level of consumption will be.

Housing numbers were down 1.5% last month underscoring that the turnaround in housing is not close at hand.

 

 

Market's Swoon Should Be Your Wake Up Call

 

 

Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon:   Back on December 12, 2007 I wrote a market commentary that started as follows:

The equity markets have been very volatile this year, but also range bound.  A picture speaks a thousand words so all one needs to do is view the chart below of the S&P 500 Index to understand just how volatile and range bound things have been.  Specifically, since February 20, 2007, only nine and one half months or so ago, the S&P 500 Index has been down 5.86%, up 13.02%, down 9.43%, up 11.26%, down 10.09%, and now up 7.73% – through 12/10/07 – so far in this latest up leg!  All this in ONLY nine and one half months!

http://blogs-images.forbes.com/advisor/files/2011/07/market-commentary-1.jpg

History is repeating itself so far in 2011, which has been fraught with ups and downs in both international and domestic equity markets.  This is due to many things, including the considerable economic doubts and various countries debt situations. This uncertainty has translated into market performance with direct impacts on portfolio returns and more prominently in portfolio volatility. This volatility is best seen in the chart below of the S&P 500 Index beginning 1/1/11.

http://blogs-images.forbes.com/advisor/files/2011/07/market-commentary-2.jpg

2010 ended positivity and the momentum carried into the first two months of 2011 however the end of February began a series of events that led market returns on a whipsaw ride of ups and downs, resulting in the current universal mid-year views of market uncertainty.

What news was associated with this volatility? All the usual; crude oil prices, natural disasters, corporate earnings, politics, economic forecast revisions for both developed and emerging markets, the European debt situation, the United States debt situation and more to name just a few.

One thing is for certain; the current volatile, range bound market activity is difficult at best to profit from.  In this investing environment patience is the most important attribute.  I will be patient and will be careful until the trends are preferable.

Our strategy at Hanlon Investment Management is to attempt to minimize downside risk by exiting risk asset classes, such as equities, during periods of uncertainty, getting invested in more conservative asset classes, such as money markets and short-term bonds, and re-entering into risky asset classes when we identify them as attractive, when the trend is our friend and positive!

Having identified this volatility, in June we made defensive, tactical investment decisions that provide less exposure to these volatile, range bound markets and prepare us to re-enter the markets when they possess improved risk characteristics.

 

 

 

SEC may have destroyed documents, senator says 17 Aug 2011 The Securities and Exchange Commission may have destroyed documents and compromised enforcement case ...   Grassley: Agency may have got rid of Goldman, Madoff documents   Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) The Securities and Exchange Commission may have destroyed documents and compromised enforcement cases involving activity at large banks and hedge funds during the height of the financial crisis in 2008, according to allegations made by a lawmaker on Wednesday. From what Ive seen, it looks as if the SEC might have sanctioned some level of case-related document destruction, said Sen. Chuck Grassley, Republican of Iowa, in a letter to the agencys chairman, Mary Schapiro. Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law. Agency staff destroyed over 9,000 files related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch. The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past years work. Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. GS +0.33%   trading in American International Group credit-default swaps in 2009. Flynn also alleged that the agency destroyed documents and information collected for preliminary investigations at Wells Fargo & Co. WFC +1.34% , Bank of America Corp. BAC +0.81% , Citigroup C +0.13%  , Credit Suisse CS +0.38%  , Deutsche Bank DB +0.79%  Morgan Stanley MS -0.06%  and the now-bankrupt Lehman Brothers. The letter goes into particular detail about Deutsche Bank, the former employer of current SEC enforcement chief Robert Khuzami as well as former enforcement chiefs Gary Lynch and Richard Walker…’

Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic lawyer) is one of those typically with a pre or post arrangement, whether implicit or explicit; you know, that ubiquitous bribe thing in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by italians in the new york d.a.s office over the objection of the FBI, and were promptly dispatched/assassinated / hit by mafia / organized crime [ this was documented with authority in the book Goombata: The Improbable Rise and Fall of John Gotti and His Gang Cummings / Volkman  ]

 

 

TRAIN READING: COVER-UP  Mark Gongloff

Is the SEC covering up Wall Street crimes?
Matt Taibbi

The forex market is causing some companies to pull up stakes Heard on the Street

Resisting the urge to buy the dips Josh Brown

Maybe its not stocks that are cheap, but earnings estimates that are high Ritholtz

Chinas worsening credit crunch Pragmatic Capitalism

The Occupy Wall Street protesters are winning Josh Brown

The gap between economic data and sentiment Abnormal Returns

Recession, restructuring and the ring fence John Hussman

 

What happens after a Greek default? Fortune

Stop blaming Greece for the markets problems Mark Hulbert

Chinas credit crunch is worsening FT Alphaville

Another huge earnings miss coming? James Bianco at The Big Picture

Its science: 92% of all Billboard top ten songs are about sex The Atlantic

Frau Merkel, it really is a euro crisis Ambrose Evans-Pritchard

Hero or hypocrite? The Buffett Rule, then and now Jeff Matthews

CRB commodity index back to 1749 (warning: extreme verticality) Ritholtz

Will stocks rally as profit margins fall?
FT Alphaville

Europeans still dont seem to understand the enormity of their crisis Economist

Misunderstanding the effects of QE2 was a grave mistake, hurting us today Pragmatic Capitalism

The myth of cash on the sidelines James Bianco at The Big Picture

A flowchart of Greece endgames none appealing BBC

The unexamined crisis of 2008 Economists View

Monetary moves have lost their magic Reuters Breakingviews

Jobs are not really being held back by deficit uncertainty The Atlantic

The real failure at Netflix Abnormal Returns

Peak oil may be beside the point Economist

The Troy Davis case shows how wrong eyewitness evidence can be Slate

The Tiger Mom goes to China New Yorker

Overconfidence may be an evolutionary advantage Discover

Buy your own private island in NYC for less than $300,000 Curbed (via Felix Salmon)

Bank of Americas layoffs pointless, wouldnt even pay the lawyers Huffington Post

Time to break up Bank of America The Atlantic

Why is the UK still rated AAA? FT Alphaville

New human ancestor discovered WSJ

The cost of a crowded volatility trade FT Alphaville

Workers malaise foreshadows wider social issues Mohamed El-Erian at Reuters

No, were not waiting for your official recession call, economist Josh Brown in Forbes

Your guide to living in 10 fictional worlds Wired

Failing US economy no reason to stop investing in print media, all experts agree The Onion

Enough with the monetary easing already Pragmatic Capitalism

The US economy is becoming more susceptible to hurricanes Real Time Economics

How Irene lived up to the hype  Five Thirty Eight

The War on Terror is dead The Atlantic

Emerging markets now have more heft and reach than developed ones Economist (video)

Why is the White House defending banks from investigations? Megan McArdle

Hurricane Irene may cause a gas-price spike
CNN/Money

Know the difference between short-term and long-term problems for the economy Ritholtz

Why arent governments more afraid of a double-dip recession? The Atlantic

France deserves a downgrade at least as much as the US does Bethany McLean in Slate

Recent market volatility has historical precedent Mark Hulbert

Stop worrying about China not buying Treasurys, already FT Alphaville

Fed hawks at odds over their reasons for dissent Reuters

Why Rick Perry made a bid for the anti-Fed set  Slate

Maslows hierarchy of needs gets an update The Atlantic

How did so many people feel one small quake in Virginia?  The Atlantic

Philly Fed coincident indicators turning red Calculated Risk

Treasurys are priced for disaster Capital Spectator

Profit recession risks tick higher FT Alphaville

The rich can afford to pay more taxes Bruce Bartlett in Economix



 

Everything You Need to Know About the Latest Market Plunge [But were afraid to ask]  Minyanville Staff Aug 18, 2011  ‘After a rather benign start to the week, markets plunged on Thursday with the S&P 500 shedding 4.5% and the Nasdaq-100 falling nearly 5%. The main driver on the day was speculation European banks remain insufficiently capitalized. Gold jumped nearly 25 to a record high and Treasuries rallied. Among stock movers, Apple (AAPL) outperformed the indices but still dropped 3.7%, Microsoft (MSFT) also outperformed closing down just 2.2%, Bank of America (BAC) dropped 6% and Oracle (ORCL) fell 8.3%.
Below are this week's top Minyanville stories examining the state of the US and global markets.

Is It 2008 Again? Looking at the Summer Crash of 2011
A real bear market has begun, and bonds got it right as early as February that the biggest threat to the global economic system is deflation.
by Michael A. Gayed 

Dynamics of This Market Panic Ripple Though History
The 10-year anniversary of the 1929 high ties to the beginning of World War II on September 1st, 1939 when Hitler invaded Poland and France declared war on Germany.
by Jeffrey Cooper 

Are Gold and S&P 500 Behaving Logically or Irrationally?
Unfortunately Mr. Market rarely embarks upon the logical until he has convinced enough market participants to behave irrationally.
by J. W. Jones 


Random Thoughts: Fed Dissention and Financial Market Fatigue
The world's wildest reality show continues.
by Todd Harrison

Handicapping the Global Economic Recovery
The obvious question must be begged: where do we go from here?
by Todd Harrison 

Coming in October: Next Major Price Cycle Low
A major price cycle on the daily S&P 500 chart, which shows reliability in bottoming about every 15.5 months, is due for its next low on or about October 31.
by Michael Paulenoff 

Volume Trends Suggest Worst Is Not Over for Stocks
When the market rallies hard after a nasty decline, one of the first things that can determine whether the rally's a keeper or not is volume. Here's why.
by Tim Thielen

The Sign of the Bear

When the quarterly turns down, the normal expectation is for the market to carve out a low soon, in terms of time and price -- not to waterfall.
by Jeffrey Cooper

Economy Showing Signs of Life, but Not for Long

We're on the brink of a nice little bump from the data coming in, but on the whole, a 1930s-style depression seems to be on track.
by MoneyShow.com

Wall of Worry Keeps Rising on Europe's Credit Crisis Fears

To make matters worse, politicians in the world's crisis-free countries are on summer vacation.
by Lloyd Khaner

Why Is Everyone Bullish on the US?
Wall Street will always think positively of the market, but the facts are pointing to a bearish phase.
by Gary Kaltbaum

Five Things You Need to Know: Asymmetric Economy Increasingly Untenable and Unstable
This situation cannot continue without adjustment.
by Kevin Depew

Fed's Easing Policy Means Worse Living Through Convexity
As the Fed removes interest rate risk through stealth QE3, it introduces other risks, distorting incentives for investing and weakening the economy in the long term.
by Professor Pinch

Are US Markets Facing the Abyss?

The vast majority of technicals are indicating a new bear leg.
by Jeffrey Cooper ‘

 

 

 

Dow Tumbles on New Worries About Same Old Issues - Aaron Task

Who’s Worse: U.S. Banks or Bernie Madoff? - Stacy Curtin

 



 


WHY NEW LOWS ARE LIKELY   Simon Maierhofer, August 18, 2011  Last Sunday's (August 14) ETF Profit Strategy Newsletter update listed 5 reasons why new lows are likely. Here they are:

HISTORIC REVERSAL

We've been expecting a major market top in the S&P 500 (SNP: ^GSPC), Dow Jones Industrials (DJI: ^DJI) and Nasdaq (Nasdaq: ^IXIC). The April 3 ETF Profit Strategy update identified the ideal target range for a major top to be 1,369 - 1,382. The chart below was featured in the same update.

It outlines a top around 1,370 followed by an initial decline to about 1,230 (happened in June), followed by a rally (happened in July), followed by a steep decline.

DEATH CROSS

The death cross is one of the most talked about technical events, that's why I don't put too much stock in it. However, there are two interesting facts about previous death crosses.

The 2000 and 2007 death cross occurred about three days before the S&P embarked on its next leg down. The 2010 death cross was actually a buy signal. However, it occurred after the S&P and DJIA bounced off a multi-year trend line. This time the trend line was broken so a more bearish interpretation of the death cross is appropriate.

                               https://www.etfguide.com/images/PDNewsletter_Images/5%20-%20April%203%20TF.jpg  

SEASONALITY

August, September, and October is the most bearish stretch of the year. September and October sport negative performance even in the pre-election year.

SENTIMENT

From S&P 1,370 on May 2 to S&P 1,258 on June 16, the S&P shed 112 points and sentiment measured by Investors Intelligence (II) and the American Association for Individual Investors (AAII) turned deeply bearish (only 37% II bulls). The June 16 ETF Profit Strategy update took that as a queue to buy (long positions were closed at S&P 1,340).

From S&P 1,353 on July 7 to S&P 1,102 on August 9 the S&P lost 251 points, yet the II sentiment poll registered the second most bullish reading since the first week of May (47.3% II bulls). AAII and II polls are often considered the 'dumb money.' If the 'dumb money' views last Wednesday's low as a buying opportunity, the 'smart money' should be suspicious.

VIX PATTERN

If you have the charting capabilities, take a moment and plot the VIX (Chicago Options: ^VIX) against the S&P for the months of September - November 2008 and April - July 2010. If you don't have the time you may simply look at the chart below.

                                https://www.etfguide.com/images/PDNewsletter_Images/yahoo%20-%20vix%20pattern.gif  

What we've seen in 2008 and 2010 is that a VIX peak did not coincide with the S&P bottom. The S&P bottom actually occurred against a lower VIX reading. If this pattern continues, we will see lower lows.

The August 14 ETF Profit Strategy update includes a detailed analysis of the VIX pattern.

THE SCRIPT

Via more or less accidental chart surfing I found a striking resemblance between the 2007 market top and the May 2011 top.  This moved me to state in the July 17 Profit Strategy update that:

'There is a similar trend line and a triple top above the trend line. A break below that trend line could be a precursor of bad things. Next week the trend line will be at about 1,262.' The S&P sliced through that trend line on August 4 and fell an additional 12% within the next four days.

The August 7 Profit Strategy update revisited that script and concluded this: 'We now have a rough script; let's see how much lip the actors will add during the live performance (I.e. S&P downgrade). 

The two main things I have taken away from the 2007 script are:

1) There will be a new low.

2) There will be a powerful counter trend rally to around 1,xxx (reserved for subscribers).'

THE VERDICT

We got the new low and we got a rather powerful rally. Now the question is, how long will the low last and how high will stocks rally?

The script suggests there will be another low. The VIX pattern suggests there should be another price low. Seasonality suggests that there's some headwind on the way up. Sentiment readings suggest we should be suspicious of any rally. The death cross also suggests lower prices.

SUMMARY

There were a number of good reasons to expect new lows on Sunday. Yesterday's ETF Profit Strategy update recommended to go short as soon as the S&P breaks below 1,373. This happened within the first few minutes of trading today. Now it's time to let the script play out…’

S&P Triggers 200-day MA Death Cross - What Does this Mean? ETFguide.com

Is This a New Bear Market? The Chart That Tells The Whole Story ETFguide.com

Why The Worst May Be Yet To Come ETFguide.com

 

 

 

Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs | iPhone 2 (robot)... By Michael McGill: August 18, 2011 is a day that has handed out some of the worst economic news since a few days in the 2008 financial crisis, and it has the Dow Jones Industrial Average down big time. The reasons keep piling up to turn bearish and pile into safer investments. Here are 5 reasons showing that investors need to be on the watch out for choppy waters tsunami type waves ahead: Homes Sales Drop 3.5% in July This marks the weakest sales (4.67 million) figure in 14 years, even beating last years disappointing mark of 4.91 million. This is despite the average rate of a 30-year fixed mortgage coming in at its lowest level on record (4.15) this week. This is data to fight the ever increasing hope that home owners have of increasing the value of their homes. Jobless Claims Rise 9,000 Last week investors were looking for Complete Story »

·        Homes Sales Drop 3.5% in July

·        Jobless Claims Rise 9,000

·        Treasuries Hitting Record Highs (record low yields)

·        Inflation at the Consumer Level Rose to 0.5% in July

·        World GDP Growth Slowdown - …’

 

 

 

Dow/Gold Ratio Lowest Since 1987 Crash   Forbes   Adrian Ash Today’s gold buyers might still get to look early birds as this depression wears on… GROWTH or defensestocks or gold? Intra-day noise aside in summer 2011, Mr.Markets choice looks plain.

The Dow/Gold Ratio a measure of the U.S. stock markets valuation in ounces of gold has sunk as equities have plunged but gold prices have jumped so far this summer.

Dropping through 6.0 ahead of Fridays New York opening, the Dow/Gold Ratio hasnt been this low since early 1989, back when world equity markets were recovering from the Great Crash of Black Monday 1987.

http://goldnews.bullionvault.com/files/DowGoldviii11.png

That slump itself had taken the Dow/Gold Ratio all the way down to 3.6, with gold prices rising to nearly $500 per ounce as the Wall Street index sank to 1776 points. Growth, of course, was only taking a pause in late 1987 a quick breather before the real race to perfection of the late 1990s. Today, in contrast, the Dow/Gold Ratio could still go a lot further down. Or so says history.

Trading a little over its century-long average of 10.0 today, the ratio bottomed during the 1930s Great Depression at just below 2.0 ounces of gold for one Dow unit. At the nadir of the next global depression the inflationary depression of the early 1980s the Dow/Gold Ratio sank even lower, down to 1.0.

Whatever flavor of depression weve got at the start of this decade and it is a depression, as Western jobs data continue to show and as the Dow/Gold yardstick will confirm if it goes much lower (keep an eye on the underperformance of gold mining equities, too) a growing flow of private savings is choosing defense in gold bullion rather than choosing business-risk in listed stocks.

That choice might sound self-fulfilling if you work in psychiatry or government, a kind of clinical disorder open to curing with medication, zero interest rates or perhaps a third round of quantitative easing most likely aimed at risk assets, we guess, rather than the risk free Treasury bonds targeted by QE1 and QE2 and which institutional investors are all-too keen to hold anyway.

So far, however, investors choosing to buy gold only account for a tiny portion of the money fleeing equities.

From here to a true depression low in Dow/Gold (if such a level is reached), todays gold buyers will need to find many more friends. Theyd also look early-birds compared with the rush out of stocks and into gold needed to reach that 2.0 or 1.0 mark.

 

The Great Stocks Vs. Gold Round Trip  Aug 19th, 2011 News (BusinessInsider) — ‘ When priced in gold stocks have now returned to where they were at the market’s low-point, back in 2009. Actually, we’re even worse now.  http://www.usagold.com/pete/newsviews/20110819GoldSPratio.jpg   PG View: In 1965 De Gaulle called for a return to an “indisputable monetary base,” one that “does not bear the mark of any particular country.” He of course was referring to gold. As was pointed out in a Forbes article early in the week on the 40th anniversary of President Nixon closing the gold window, over the last four thousand years, the only period in which humanity has not consistently based its currency in metal, specifically gold, is the last forty.” And look what that has wrought…’


Ignore Buffett's Advice, Don't Buy Stocks at Forbes Bert Dohmen [ Yeah this is really good advice. As a shill for fraudulent wall street, they may have given him some stellar performances and cash to boot; but, the homespun bumpkin senile buffets analytical abilities, if ever really extant, have certainly passed the point of no return. You may recall how the clintons, with a mere $1,000 or so, were revealed as commodities trading wizards, but as written up in the Wall Street Journal someone was giving them money. In fairness, that they were singled out (was) is a bit arbitrary inasmuch as thats going on all the time on wall street, and now with greater precision owing to greater computer programming capabilities, to everyone elses detriment. Remember, in a manner of speaking, there are two sides to every trade, viz., winner and loser (in relative terms).] The markets plunged going into August 8. On that day, the DJI closed with a loss of 629 points. My indicators signaled that a brief bounce would commence the next day. According to the charts, the first target for the S&P 500 was 1205. The target was hit exactly a few days later. That was followed by a renewed plunge.

I have been looking for a serious crisis to start in September. It appears that we have seen the prelude for that. The big smart money has been preparing for the past five months.You can see the distribution pattern on the charts since mid-February. The rush to the exits is now accelerating and the smart money has been selling short in large amounts.

The extreme bullish sentiment that prevailed until the latest plunge was first replaced by complacency, then by concern. However, the fear stage is still missing, except at hedge funds that were forced to sell because of margin calls. In fact, during the severe plunge in the first week of August, investment investors became even more bullish according to Investorsintelligence.com. That is not good for the markets.

The market negatives are increasing in numbers. The IPO window is now shut. There are signs that credit is once again vanishing. Loans are being called in, some companies appear to have difficulties rolling over their Commercial Paper, junk bonds yields are soaring, European banks may stop lending to each other, and the European crisis is spreading out across the globe. Its my view that this will cause another credit crisis, just as in 2008.

Whats worse is that contrary to 2008, the big players learned to read the signs from their 2008 mistakes. They are now wide awake, although in the media, their minions still repeat the same bullish fairy tale. This means that this crisis could develop much faster than the last one. (Read my book, Financial Apocalypse, which is the 2008 roadmap, one which can be used very well for what is now happening.)

The words possible recession suddenly is being mentioned a lot in the media, although economists still strongly deny that possibility. Our rule is that the stronger their denials, the more certain and the deeper the recession will be. In fact, I declared in our May 9 issue of the Wellington Letter that the recession had started.

Morgan Stanley lowered its global GDP growth forecasts for 2012 from 4.5% to 3.8%. My forecast is for 1%-2% or less. It would be negative growth except for the fudged inflation numbers.

The European politicians are not any smarter than those in the U.S. Merkel and Sarkozy had a meeting in Paris and did nothing. That day I called the outcome Disastrous for the markets. It took the markets a day to digest the consequences and then the selling avalanche started. Many of the markets in Europe, led by the banks stocks, went into virtual free falls, losing from 4%-7% in one day. Such losses indicate an approaching crisis.

Now we see some of the well-known Wall Street figures appearing in the media, telling investors all the reasons why stocks are a good buy. One appeared with a long list of bullish factors. Well, that list didnt prevent the global stock market from losing an incredible $6 trillion over the past several weeks. He did the same cheerleading on national TV in 2007 before investors lost 50% of their wealth.

Warren Buffett is also once again the cheerleader saying he is buying stocks. He did that in 2007-2008 as well, and then the meltdown started later in 2008.

I would not fall for this self-serving advice. Words cannot rescind a recession that we already have, it cannot stop the insolvency of entire countries in Europe, it cant change the fact that major profit downgrades will appear soon, and it cant stop the China crisis that is now starting.

Gold is soaring, but the mining stocks look terribly weak. There is great danger now with the gold stocks getting hit hard by less developed countries, including South Africa, to nationalize gold mines. This is too lucrative for them to resist.

I would get out of all money market funds unless they are U.S. government only.  The MMFs have big exposure to European banks. We believe that lending between banks in Europe may seize, which means that the whole structure will start shaking. You will start hearing the word contagion.

In my opinion, the danger period is approaching. What we have seen until now is just a preview. The main feature is likely to be worse.

Bert Dohmen is editor of Bert Dohmens Wellington Letter and author of Prelude To Meltdown (2007) and Financial Apocalypse (2011).




The "Crimes" That Wrecked The Markets  Forbes / Robert Lenzner CNNs anchor in London, Richard Quest, raised the issue squarely today about trying to explain the crimes that have created this failure to recover from the 2008 recession and the fear of another  downturn in the economy that could wipe out many of the gains we have achieved. Quest, of course, did not mean felonies or violations of the law that would land people in prison. I think he meant crimes of bad policy, crimes of financial illiteracy, crimes of stupidity, crimes of poor leadership.

So, heres my attempt to sum up my answer to Quest.

The powers-that-be saved  the Masters of the Universe on Wall Street by using trillions of loans, investments and guarantees that sent the signal that Finance was the nations Number One Priority.  This historic gift to finance meant that the growing disparity between the super-rich and the middle class would continue to widen, without anyone of our top policy gurus suggesting it was splitting our nation. Some academics even worry about the crime of pushing the middle class into poverty.

Nevertheless, there was no bold strategy left to help those out of work. It was a crime that the stimulus program did nothing to create any jobs in the private sector. Obamas economic adviser in 2009 , Larry Summers, was dead set against a make-work program to put the nations skilled construction workers busy on repairing  the rusting infrastructure he finds distasteful at airports and railroad stations. Now, we are going to be given the sop of an infrastructure bank that couldnt possibly be in place for years, if ever.

No question the handling  of the debt limit debacle was  crime of poor planning, no overall shred strategy and trying to effect a master plan for $4  trillion cuts with only days to go before the August 2nd deadline. Keystone Cops,  whatever you wish to call it caused a loss of confidence in the nations politicians; a kind of virtual crime on the public who deserved better. Much better. This entire episode removed the foundations to rational expectations for the stock market and threw the nation into a madhouse of volatility and confusion.

I dont know what to call the lapse in the markets faith in paper money and the more-or-less steady rise in the price of gold from $850 an ounce 3 years ago to well over $1800 today.  There is no other stock, bond or commodity you could have purchased that had this magnificent performance. Well, maybe the shares of Apple, and some global commodity producers.

Moreover, it was a crime to do nothing about the obscene bonuses taken by the Masters of the Universe who only were able to pay themselves in this way because of the federal bailout. No one has tried to  get back the fortunes taken away by Lehmans Richard Fuld,  Countrywide Credits Angelo Mozilloor either of the Merrill Lynch CEOs, who helped destroy their iconic firm. Now theres a crime.

Then, theres the  SECs unwillingness to reinstitute the uptick on short sales of stock so that hedge funds and other speculators could not trigger sharp sell-offs in the stock market If you had this uptick rule back, every short seller would have to wait for a transaction at a higher price to  sell short rather than the libertarian crime that allows them to pound a stock lower to make sure-thing profits. Its a crime short sellers are able to shoot ducks in a barrel. Shocking lack of fairness. No wonder Aunt Sadie is fleeing.

No doubt there were crimes committed in the week of volatility, with gyrations that scared the public. These movements up and down were caused by the high frequency trading by computers owned by hedge funds who are not investors but in-and-out traders several times a day and who have no regard for fundamental values.  These Masters Of  The Universe have the ultimate power in American society because of their political contributions and lobbying.

I believe Obamas health plan to be a crime because it was a sellout to the 5 giant health insurance firms that were given 4 years clear and free to raise their premiums without interference. It was a crime because Obama was told by leading Senators it was a terrible sellout of the citizenry.

I dont know what to call the bankruptcy of fiscal and monetary policy.  In some existential sense it is a crime that we have run out of  fiscal and monetary ammunition to turn this  collapsing shock treatment around. It is a crime that 300 million people will be looking for Ben Bernanke, Fed Chairman, to pull a rabbit out of a hat in Jackson, Wyoming next week, when central bankers are meeting.  QE2 came from last years meeting but it created no jobs.

The same will be true after Labor Day when the much-ballyhooed Obama  speech on jobs is coming. I fear expectations are going to be terribly disappointed. Expect  rhetoric as in We have always been a Triple A nation and we always will be Triple A. That was a crime of speaking mush, when 300 million people know better, and wanted to hear something meaningful. Not to have bold, kick-ass leadership at a time of crisis is a sad sort of a crime. 



Accounting Gimmics Resurface as Growth Flounders at TheStreet ‘-- Accounting gimmicks -- once the staple of the boom-boom stock market -- are on the rise as companies attempt to convince analysts and investors that they are profitable despite a sluggish economy, according to industry watchers. Accounting techniques of Groupon and Zynga were under the spotlight recently, with the Securities and Exchange Commission instructing both companies to adhere to more stricter and conventional accounting standards, causing them to amend their IPO offer documents.

The creative metrics in the IPO documents of recent social-media IPOs are reminiscent of the dot-com bubble when stocks were valued on metrics like "eyeballs", while fundamentals like revenues and profits were ignored.

 

Rebekah Smith, director of financial advisory services at accounting and consulting firm GBQ consulting, says accounting tricks and schemes are likely to start unraveling as we head into 2012 and the lag effect catches up. "The typical accounting fraud goes on for about 18 to 26 months before it is uncovered. The frauds that took place in 2009 are not going to surface until later in 2011 or into 2012."

 

Financial statement fraud like the kind that took place at Enron are rare. The Association of Certified Fraud Examiners estimates that such manipulation accounts for only 4.8% of total fraud cases, although it causes the most financial damage, with the median loss being more than $4 million.

 

But accounting gimmicks that focus on non-GAAP (Generally Accepted Accounting Principles) measures are rampant and they can be misleading.

Groupon, for instance, claimed that the marketing expenses incurred to acquire customers were "one-time investments" and hence they should be excluded from the calculations of operating income.

By that metric the company made an operating profit at $81.6 million in the first quarter of 2011, as opposed to an operating loss of $113.9 million under traditional accounting standards.

 

However, analysts were quick to point out the metric was absurd. "If you are going to capitalize acquisition costs, the onus is on you to show proof that acquired customers stay as customers (and actually buy products for many years)," Aswath Damodaran, Professor of Finance at Stern School of Business and a reputed author of textbooks on valuation, wrote in a blog post.

 

"With strong competition from other online coupon based companies (like LivingSocial), it is entirely possible that customers once acquired, are fickle and move on... If that is the case, the acquisition cost has a very short amortizable life and begins to look more like an operating expense," he wrote.

 

Zynga issued a restatement of its second quarter results saying it did not hew to accounting standards in the way it estimates how long people play its video games. That had the effect of understating revenues during the second quarter. While the impact of the Zynga's restatement itself was not substantial, it highlighted the murky accounting involved when it comes to new business models.  "There is a new market of publicly traded companies with business models that open more room for interpretation on how revenues and costs should be treated. We do see some aggressive accounting techniques" says Dan Mahoney, director of research at the Center for Financial Research and Analysis, a unit of MSCI that specializes in forensic accounting.

Smith of GBQ Consulting says there is a greater risk of financial statement manipulation at such new-age businesses. "We have a lot of new business models and people are still trying to understand how the finances of these companies work," she said. "Companies get to decide what to tell them[investors] on how their industry works. They decide what the metrics should be."

While in a traditional sector an astute analyst might call a company's bluff, it is harder when you don't have history as a guide. "We don't have a typical 10-year history. As a financial professional, you can't make a conclusion on what the financial metrics should look like," says Smith.

Mahoney at CFRA says companies with high valuations are also ripe for these sort of gimmicks, as they are under pressure to sustain valuations.

While in a traditional sector an astute analyst might call a company's bluff, it is harder when you don't have history as a guide. "We don't have a typical 10-year history. As a financial professional, you can't make a conclusion on what the financial metrics should look like," says Smith.

Netflix(NFLX) has been criticized in the past for its calculation of subscriber churn rate, which looks at the number of cancellations as a proportion of subscribers. Netflix's method has the effect of overstating the subscriber base, thus making the churn rate seem lower.

Analysts have over time learned to adjust for this inconsistency. And as it turns out, the movie rental firm has drastically limited the metrics it is willing to provide , saying that in 2012 it will no longer report churn, gross subscriber additions and subscriber acquisition costs.

Problem solved.

Stern's Damodaran says companies resort to these tricks because the market analysts simplistically assign multiples to a profit metric. All companies have to do is "make a change that affects earnings and you can change the valuation," he says. "Investors need to understand what Groupon's business model is, what their potential market is, who are they going up against."

--Written by Shanthi Bharatwaj in New York

>To contact the writer of this article, click here: Shanthi Bharatwaj.



Morgan Stanley Biggest Welfare Recipient as Federal Reserve Lent Banks $1.2 Trillion During Financial CrisisWall St. Cheat Sheet



Dow:Gold Ratio and the Secular Bear Market at Minyanville  Toby Connor Aug 23, 2011 ‘However low the risk, large potential trades are now in the stock market, not in playing chicken with the gold parabola.

 As I have been warning investors for many months, stocks have now entered stage III of the secular bear market. Gold, on the other hand, is now in the final parabolic phase of a 2.5 year C wave advance.

My best guess was that we would see a Dow:Gold ratio of between 5-6 before this C-wave ended. The ratio was at 5.71 as of today. I think we may still have a little further to go on the downside for stocks and a little further upside in gold. So it's entirely possible that we could see a Dow gold ratio of 1:5 before the trends reverse.

http://image.minyanville.com/assets/FCK_Jan2011/File/August11/tobyc8231.JPG
Click to enlarge

However low the risk, large potential trades are now in the stock market, not in playing chicken with the gold parabola.

Cyclically the stock market is now in the middle of the timing band for an intermediate bottom. Presumably a sharp bear market rally in stocks will trigger a regression to the mean, profit-taking event in the precious metals market (the D-wave).

D-waves almost always test, and sometimes marginally penetrate, the 200-day moving average. I've illustrated in the chart above a rough guess as to where I expect the countertrend rally in stocks and the D-wave correction in gold to retrace.

Keep in mind that the fundamentals for gold have not changed. A D-wave is simply a profit-taking event triggered by an unsustainable parabolic rally. It has nothing to do with fundamentals. Once the D-wave has run its course, gold will enter a sharp snapback rally (the A-wave), after which it should consolidate for the remainder of the bear market in stocks.

Stocks, on the other hand, after what should be a very convincing bear market rally, will roll over and continue down into a final four-year cycle low, probably in the late summer or early fall of 2012.

Depending on whether or not the Fed tries to fight the cleansing process, or Ben Bernanke tries to stop the bear market with another round of quantitative easing, stocks should either test or breach the March '09 lows.

Either way I expect that 2012 will go down as one of the worst years in human history. Certainly in the same category as 1932, if not worse
…’

 

Is the Market Forecasting War?   { Kind of a ‘large dart board’ in terms of ‘educated guessing’ in light of the perma-war ‘bent’ of these perma-war ‘bent’ nations; viz., ie., u.s., israel, europe, etc.. }  [ If so, and if this writer’s correct, all nato’s and america’s misguided actions in the Mideast will be viewed as an attempt to weaken Arab nations for the benefit of war-mongering israel and will never be forgotten as such, to the substantial detriment of the dying so-called western alliance. ]



End Of Cycle Smelling Like Dow 3K, Gold 3K  Forbes /  Bill Bonner  Listen up, dear reader herein we announce an historic Daily Reckoning forecast.  Heres your north star, your compass, your GPS to the future. Print it out. Paste it to your refrigerator:

About the turn of the century, two markets turned Gold turned up Stocks turned down These major trends will end Whence they meet

Our view is that the bear market began in January 2000. The feds fought it off with two huge extravaganzas of spending the first beginning in 2001 the other after 2008.

Stimulus does wonders for stock prices but it no longer works for the economy that sustains them. For every dollar that the Fed has put to work to fight the crisis since 2008, for example, it has produced only 80 cents worth of GDP. It didnt work.

Fighting a credit contraction with more credit is a losing proposition. Eventually, investors are bound to realize that stocks are headed down. Eventually the bear market will resume. And eventually it will come to an end.

But when? Our guess is that it will end when the Dow and the price of gold arrive at the same point probably around $3,000. Whatever the number, youll be able to buy the entire group of Dow stocks for the price of one ounce of gold.

Of course, our view is a minority one. Warren Buffett doesnt buy it. Most investors dont buy it. We dont even suggest that you buy it, dear reader. Just remember it. If it turns out as expected, we want to be able to say We told you so.

And if it doesnt work out? Please have the grace to forget we mentioned it.

We would like to be able to predict the future, but weve never gotten the hang of it. Were just guessing.

But since were just guessing, we dont see why we should hold back.

Were also guessing that

the weight of so much debt is depressing growthand will soon depress stock prices too

that the economy is becoming zombified from too much government moneyespecially the military

that Mr. Market is ready for a long bear market anyhow; hes tanned, rested, and ready to go to work

that the US is following in Japans footstepstowards a long period of on-again, off-again recession

that the recession of 08-09 in the US never actually ended

and that stocks will go down over the next 5-10 years until they finally hit a real bottom.

Our guess is that gold goes down, shakes out the speculators and weak investors and then, perhaps a couple years from now, perhaps longer begins its third and final phase.

 

Back-to-School Sales Looking Blahat The Wall Street Journal

 

CHINA, EMERGING MARKETS POINT TO DOUBLE-DIP 2011 August 24 http://www.iphone2die4.com/2011/08/24/china-emerging-markets-point-to-double-dip   iphone-robot ChartProphet submit: The collapse of the emerging markets, especially China, India, and Brazil, will have a huge ripple effect on the rest of the worlds economies, and will plunge most countries back into a global recession.One of the major drivers of the markets over the past two years has been the unstoppable and highly promising future of the emerging markets, especially China. As millions of inhabitants in emerging countries begin to enter the modern world and middle class, their consumption and their effect on the economies of countries all over the globe increases. And as millions of people contribute to the growth of China, India, and other countries, they will require extra food, energy sources such as gasoline and oil, cotton for their increased consumption and clothing needs, industrial metals for their new cars and technology, and many other materials that a growing and evolving population needs…’

 

 

How much higher can Apple shares go without Jobs? (Reuters) [ Or the market without jobs? … The answer euphemistally is not much … but more accurately should be not all and down quite a bit! ]

 

 

Arguments for Being in the Crash Camp   Conor Sen  Aug 29, 2011 ‘If you want to take risk, only own things you're willing to own in a down 20-30% tape, because that's what we could see over the next month.  ‘This piece is going to read a bit like an inner monologue in the hopes that seeing how I wrestle with conflicting ideas may help with your own thought process. One of the responsibilities of putting your thoughts online for public consumption is only writing when you think you have something worth reading. After awhile you accumulate a portfolio of pieces and can see common themes in your writing, the struggles you've had, and whether you've been on the mark or not. And this summer I've written primarily about three topics: 1) the 2011 consumer tech IPO names led by Groupon, LinkedIn, and Zillow, which I've done a reasonable job with, 2) pessimism about the debt ceiling deal being resolved early due to the intransigence of the 2011 GOP, which I also feel I analyzed well, and 3) the ongoing macro tug-of-war between compelling valuations and the escalating European debt crisis, which I've gotten wrong.

The closest I got was in a June 24 piece where I wrote,

"My experience in 2007-08 taught me that in credit contagions understanding these dynamics is all that matters. Charts don't matter, macro data doesn't really matter, and until the contagion stops valuation doesn't really matter either. A $1 bill could trade for 70 cents if firms need to raise capital."


That's what I fought earlier this month, convinced that valuations for some blue-chip firms and not-as-bad-as-people-think macro data would be good enough. It hasn't been. The problem is, I thought about the issue too narrowly, focusing only on European sovereign spreads without seeing the second-order effects those spreads would eventually have. As sovereign spreads for the European periphery widened, governments responded by imposing austerity measures, which have now flowed through to the point where Europe may be back in recession. Here's one measure of the trend in economic activity for the key European countries.

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/plummet1.jpg

With sovereign spreads stressed and economic activity rolling over, European banks have been under pressure, both the equity and of course the credits, with credit default swaps for European banks at wider levels than they were in 2008-09.

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/plummet2.jpg

The problem with this is that credit spreads and equity prices are intricately linked, as this chart from Goldman Sachs shows comparing the spreads of the key iTraxx Main CDS index with the STOXX 600 index, Europe's equivalent to the S&P 500.

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/plummet3.jpg

And in a leveraged, interconnected world, a systemic problem somewhere flows everywhere else, as investment-grade and high-yield credit indices in the US show.

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/plummet4.jpg

The key question I've asked this week is: Can European banks, or Bank of America, fund themselves right now? The answer is no. That's a problem. If economic data were getting better, even on a green shoots basis, that might be one thing, but just about every data point we've gotten out of Europe recently, or Philly Fed here in the US, has been negative on a second derivative, and in many cases, a first derivative basis.

If we knew that fiscal and monetary policymakers were ready to fire bazookas and gas up their helicopters, that'd be a different story. In 2008-09 we got a big fiscal stimulus package out of China and a lesser but still sizable one in the US. Today we have both the US and Europe looking to cut spending, not increase it. On the monetary policy front, the ECB actually raised rates this summer, and Ben Bernanke's speech at Jackson Hole on Friday shows that either he doesn't think additional stimulus is needed, that it won't help, or that there's too much political risk to take bold action, precisely the problem he said hampered the Japanese in his famous 2002 speech on deflation.

Most worrisome of all might have been comments out of German Chancellor Angela Merkel last weekend, when she said, “Politicians can’t and won’t simply run after the markets. The markets want to force us to do certain things. That we won’t do. Politicians have to make sure that we’re unassailable, that we can make policy for the people.”

This is after a 25% drop in the DAX, and the leader of the country that holds all the cards in Europe says that she won't be bullied by markets. The Bernanke/Merkel/Trichet put may exist, but its strike price appears to be a lot lower than many thought.

When nearly every major bank in Europe has a credit spread north of 300bps or is headed there in a hurry, I'm not going to make the argument that so-so US economic data, solid earnings, and attractive valuations will win out in the short term. Markets are cruel and merciless when it comes to leveraged institutions under financial stress. In 2008-09 to combat this we got TARP, the AIG (AIG) bailout, the stimulus package, the Temporary Liquidity Guarantee Program (TLGP), a whole host of other short-term funding programs from the Fed, and finally in March of 2009 we got green shoots, second derivative improvements in the economy. Today we have, "Most of the economic policies that support robust economic growth in the long run are outside the province of the central bank." If the SPX went to 700-800 we would see multi-generational bargains for a whole host of names, many of which would trade at around cash value plus a 2-3 multiple on earnings. But structurally, there's no reason why it can't happen. If you want to take risk here, only own things you're willing to own in a down 20-30% tape, because that's what we could see over the next month.’

 

 

 

Stocks Woosh Higher in Vacuum, Now Perfectly Poised for Disappointment at The Wall Street Journal

 



 

What to Expect Next From the Markets at Minyanville  Jeffrey Cooper Aug 29, 2011  ‘Conclusion: It looks like a program was run using the least amount of dollars to goose the indices by focusing on some big cap names like Apple (AAPL), Amazon (AMZN), Baidu (BIDU), IBM (IBM), and Caterpillar (CAT) on Friday. That is why the market is so dangerous here ‘   ‘From a technical perspective, the markets are looking dangerous right now. On Friday, a big buy program was run for Ben Bernanke’s speech after running the stops and getting traders short.

The S&P buckled after breaking the 1154 mid-point of the recent range, running the stops and trapping shorts for good measure on a Pinocchio of the key 1140 support, as offered in the last report.

However a first hour low was scored in a mirror image of recent first hour highs and I sent an alert to cover shorts. Combined with Bernanke’s speech, the flip was switched to save a poor weekly close when the S&P recaptured 1154.

A 10 minute chart of the SPY shows a downside ORB (a break of the opening range defined by the first 30 minutes) to flush the stops, and then an ORB Reversal back through the level of the downside pivot, followed by a powerful Reverse ORB on a thrust back through the top of the opening range implying a trend day to the upside.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/29/ARCX_SPY_10%20--%20SPDR%20S&P%20500%20TRUST.jpg

The promise of the Catapult ORB -- first to the downside then back to the upside -- was further fulfilled on penetrating topside lateral resistance above 117 SPY.

In so doing, the notion of a Fed Cha Cha Cha was turned into more of a jitterbug for the shorts to run for cover.

The ensuing extension by the SPY led to a retracement back to the low of Thursday’s high bar.

Thursday gave a first hour high while Friday gave a first hour low as the robots play ping pong with tape.

One might fairly call Friday the “case of the missing ‘cha’".

Typically following Fedspeak, there is a sequence of 3 moves in opposite directions with the third move being the genuine bias.

In Thursday morning’s report I suggested that the direction following the first hour on that day should be the bias into the weekend. There was a change of character in the dynamics which the Reverse ORB did a good job of identifying.

There is another short term change in character implying a continuation on Monday morning (whether that will define a first hour high again near the important 1180ish resistance remains to be seen).

That short term change in character is set up by Friday’s Reversal of a Reversal, or what I call a ‘Kaiser Soze’.

Why? The important Three Day Chart Turned down on Monday as the S&P traced out 3 consecutive lower daily lows. In addition, Monday saw the Weekly Swing Chart turn down.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/29/SPXweeklyJulyb.jpg
Click to enlarge

The fact that the turndown was marginal and defined a low immediately in terms of both time and price was a bullish indication of a short term test and a potential short term “W” bottom on the daily charts.

The takeaway was a multi-day rally which played out, finally satisfying a kiss of the overhead 20 day moving average which the S&P failed to accomplish on the first rally off the lows.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/29/INDEX_$SPX_D%20--%20S&P%20500%20INDEX%20%7BDelay20%7D.jpg

The tag of the 20 dma, which played out on Thursday, was the first test of that trendline since the Cascade Setup began in July.

A pullback to the 20 dma is referred to by many traders as the Holy Grail for its effectiveness in defining a reversal point -- especially the first time.

Like clockwork, the S&P was rejected by the 20 dma on Thursday in concert with a turnup of the Three Day Chart. This defined another high, setting up a continuation trade for Friday to the downside.

However, a funny thing happened when the bears pressed the case of the “yes we have no QE3 Bananas for you” speech at the Jackson Hole forum -- the S&P left a Reversal of a Reversal, stopping right at the 20 day moving average and flirting with an extension above it this morning. This would coincide with a breakout over a trendline from late July.

Not all breakouts are created equal, as we saw with the breakout to a new high in May this year and also on the short-lived trendline breakout into the important July 7th pivot high.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/29/SPXdailyAprilb.jpg
Click to enlarge

My rule of thumb is that breakouts and upspikes in persistent bear phases are made for the selling. However, as the weekly chart of the S&P shows, the index will turn its weekly chart back up on trade over last week's high of 1190.68 (Thursday’s first hour high).

The normal expectation is that this would set up another high, but because of the pattern of the W bottom, the constructive behavior on last week's turndown of the Weekly Swing Chart, and because the S&P is poised to pop over its 20 dma this morning which coincides with a breakout over a declining trendline, there is a likelihood that the bears will keep their claws in their pockets and the bulls may snort a little. While I would give the market its due on the upside if the action is constructive following the turn up of the weekly chart -- which the futes suggest will occur near the open -- I am not too interested in being long more than a few hours and overnight.

Be that as it may, a further change in short term behavior and constructive action following a turn up of the Weekly Swing Chart suggests a move to/over 1208, the recent swing high.

 

At the same time the the 55-day panic point from the July 7th pivot window does not close until August 31st, so this is tricky here. However, the market is not a fine Swiss watch and when it comes to these cycles one must allow for plus or minus a few days. I think we should key off the behavior following a turnup in the weekly chart and the action following the first hour. If the trend is still in runaway down mode, another high could be defined quickly. I would exercise some patience here and let the market speak.

The cycles suggest another short-term plunge into September 3rd and then a bigger rally to 1220 or higher into/around the end of the first week of September to September 11th. It then suggests another plunge that undercuts the 1100 low to possibly as low as 1018ish. If a flush of the lows plays out under 1100, it could mirror the pattern from 1937 or 1938. In other words it could be a fractal of the first waterfall decline with a marginal undercut, or we could see a deep flush of the lows.

The takeaway is that not all W bottoms are created equal. Often a W V pattern plays out. This is the pattern that played out from the triangle/consolidation in late 2008 to the “V” in March ’09.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/29/DJ-30%201937%20-%201938%20final%202.jpg

While the institutional bulls are caught long on the trap door setup from August, a little strategy is required: above 1180 and then 1200 could see the S&P test 1220ish. This marks the double tops from April/November 2010. When the market knifed though those prior highs, which should have been ultimate support if the trend was still healthy, the Head & Shoulders Top projection to 1150 at a minimum became irrefutable. Those prior peaks near 1220, now broken, should offer substantial resistance. However, with many funds trapped short and everyone looking for a test of the neckline near 1250/1260 and a test of the 200 day moving average as it turns down, reconfirming the sign of the bear, it’s anybody’s guess if the sellers let it get back there -- at least in September. Perhaps a test of the 200 day plays out after a ‘W V’ and a flush of the lows, leading to a big “Bankers Rally”/Christmas rally to rescue bonuses, like in 2007.

Conclusion: It looks like a program was run using the least amount of dollars to goose the indices by focusing on some big cap names like Apple (AAPL), Amazon (AMZN), Baidu (BIDU), IBM (IBM), and Caterpillar (CAT) on Friday.

That is why the market is so dangerous here -- because despite big gains in these names when a big fund turns around to liquidate, they find few substantial bids on the way back down and these same stocks can be down 4 and 5 points again with another 400 point DJIA down day. When exactly that next break comes is anybody’s guess, but cycles suggest it is sooner rather than later. I would be patient about being too long for more than a few hours to a day or two for the time being. With everyone looking for the Big Backtest of the 200 dma, it is also anybody’s guess as to when that arrives -- from here or following a flush out of the lows. With everyone eyeing perceived targets of S&P 1220 to 1250, will the market just burn out here with everybody waiting and with an undercut of the lows having to play out before a better rally into year end? It is interesting that the war cycle from 1990 -- when Iraq's invasion of Kuwait on August 2nd precipitated a market waterfall -- that there was a July pivot high as there was this year.

In 1990 there was no low until October. August 2, 1990 was 252 months ago, tying to the big September 3rd historic cycle (which includes the 1929 all time high). In addition we have the 120 month anniversary of 9/11 and that Spike & Reversal pattern coming up, so I think a lot of volatility remains in store and patience and discipline will be critical no matter how good a short term change in character appears.

Strategy: I would look to scalp long above 1170 and scalp short below 1160. Monday may hold up, but it will be interesting to see if we reach the high for the week today -- in bear phases the first hour of the session often times scores the high for the day. If Tuesday is a reversal day, I suspect the market will trend down into the Labor Day weekend. If the market rallies up into the weekend it should define another ledge and jumping off point.

Gold broke according to expectations early last week from just above 1900. Another short sets up in the 1820 zone if it hasn’t already topped with a turnup of the daily charts on Friday. Ditto iShares Silver Trust (SLV). The next break should target 1660 and below that 1590.’

 

 

Obama's Legacy: A Failed Recovery & Double-Dip Recession Forbes / Mariotti  There will be no significant recovery in the United States of America while Barack Obama is President.  The evidence is overwhelming:  everything Obama has tried to fuel a recovery (with his Democratic allies in Congress) has failed.  Statistics claiming jobs saved by the stimulus package were mostly fiction, and cost American taxpayers about $275,000 each.  Nearly 2-1/2 million fewer Americans have jobs than before the stimulus.

Barack Obama has been President for 30 months2-1/2 years. He spent the first year obsessed with passing Obamacare, a program that doesnt create jobs, but might destroy a lot of them.  He bailed out GM, but many believe that his interference didnt save GM; it merely cost taxpayers an extra $15-20 billion, and stole from legitimate investors to buy off the UAW.  His broken campaign promises are too numerous to list.  At some point, his statute of limitations on blaming Bush runs out.  The latest joke is that the White House is that named the location of East Coast earthquake near DC Bushs Fault.

Obama himself said, “…that after three years, if the economy wasnt fixed he should be a one-term president.

Clearly the economic malaise started on George W. Bushs watch.  Its causes will be argued for decades, but most of them are traceable to irresponsible lending and excessive spending both by government and the American people.  The trouble that started before 2008 is directly traceable to actions (or inactions) of Bush and GOP allies in Congress.  They spent America into the start of the current deficit during his eight years in the White House.

But that was then, and this is now. Since Obama took office the situation has gotten much, much worse. Obama has run up the deficit at more than twice the rate Bush did. During the first quarter of 2011, the US economy barely grew at 0.4%that was followed by second quarters anemic growth of 1%.  This was during the period when the Obama recovery was supposed to be well underway.  Employment data is unremittingly terrible:  new jobless claims are stuck at 400,000+/- each month, with job creation well below what it takes just to absorb new workforce entrants.  More Americans have been unemployed longer than ever in our history.  And looking ahead, the news is not good.

This is Obamas failed American recovery, and in the near future, Obamas impending double-dip recession (thanks in no small part to his three consecutive years with Trillion-dollar in deficits that have inflated the national deficit to soaring heights$14+ Trillion.)  That legacy clearly belongs to President Barack Obama and with help from the Congress led by Harry Reid and Nancy Pelosi during 2008-2010.   Thanks to them, our country hasnt even had a budget since Obama took office.

The latest Obama Blame Finger pointing focuses on the Tea Party as extremists who have a problem with astronomical deficits as far as the eye can see.  (Pointing at Bush is getting a little old since hes been out of office for 2-1/2 years).  Obama needs a new scapegoat.  The problem with the Tea Party is that it is like the child in the fairy tale, “The Emperors New Clothes.” The child is reviled for pointing out that the emperor is naked.  Thus, the Tea Party is not wrong, just unwelcome.

Now Obama also wants to point the Blame Finger at the GOP House for the downgrade in the US debt rating by Standard and Poors.  It seems that he believes that everyone else is to blame but him. That downgrade was predestined by the combination of irresponsible spending and Obamas clueless attempts to throw money at a recovery to no avail.  Spending $1.50 for every dollar of revenue, running trillion dollar annual deficits is reason enough for a downgrade in the US debt rating.

Face it folks:  This is Obamas failed recovery. And if (or when) it comes to pass, this double-dip recession (just around the corner) is his too.

Make no mistake, there IS plenty of blame to go around.  About 75% of Americans are fed up with both Obama and Congress.   The conservative and liberal factions of the House and Senate behaved badly in the recent debt ceiling negotiation.  President Obama wanted to stay above the fray so he provided no leadership. He didnt even know how to bring the opposing viewpoints together.  He talked about bi-partisanship and consensus, but his actions disproved his words.

Until the president saw an impending disaster, he sat on the sidelines, afraid to do anything that might hinder his reelection campaign.  Then, when his intervention didnt help, and arguably hurt the progress, he grew impatient, petulant and angry.

John Boehner, however, did an admirable job trying to build a compromise deal on the debt ceiling, and get his own Caucus to support such a plan.  Except, Obama was attacked by his liberal base for even considering the grand bargain, so he came in and dumped another raise taxes more demand on Boehner.  Id have walked out too, which Boehner was right to do.

But at least they were arguing about the right thing: how much to cut spending and how.

The Tea Partys desire for fiscal responsibility is right, but it doesnt mean that tax revenue cant be increased.  It can; how its done is what matters.  The tax code desperately needs to be restructured.  Simply digging in on old positions doesnt help; it hurts.  The goal is to get the country working again, and grow our way out of this mess.

The one phrase of President Obamas that I agree with is Country First.  But John Boehner was the one who tried his best to put Country First.  If Obama truly chooses that as his 2012 campaign slogan, it will reek of hypocrisy.

If the members of Congress would put 1) country first, 2) constituents wishes next, and 3) personal agendas last, they might be able to work together to find a way out of this mess.

What happens in the Super-Committee of Twelve will be both revealing and predictive.  Either Americas Congressional leaders willor wontput "country first" and try to find common ground and reasonable compromises to lead America out of this mess.

Whatever happens, this failed recovery and impending recession belong to President Barack Obama.  His condescending explanations of why we Americans dont get it, how this will take a long time, this recovery, and his class warfare about millionaires and billionaires versus the common folk are all wearing thin.

This kind of rhetoric wont solve Americas problems.   It takes strong, informed, and experienced leadership to get through a mess like this one. We need a fixer, not a hypocritical speechmaker in the White House.  Barack Obama is not that man.  A wise man once told me, “The person who got you into a problem is seldom the one who will get you out of it.” Thats why there will be no recovery on Obamas watch…’

 



Chart Shock: The REAL Unemployment Rate Is 22% The Daily Bail September 2, 2011 http://www.infowars.com/chart-shock-the-real-unemployment-rate-is-22

http://dailybail.com/storage/chart-real-unemployment-3.gif?__SQUARESPACE_CACHEVERSION=1314981227699

’It’s now above 23% with the August update.  Details from John William’s Shadow Stats.’  Shadow Stats ‘The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers. The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.’

 

 

 

Deja Vu All Over Again: Total US Debt Passes Debt Ceiling… In Under One Month Since Extension  Sep 2nd, 2011 News (ZeroHedge) — ‘Remember when one month ago the US, to much pomp and circumstance, not to mention one downgrade, announced a grand bargain raising the debt ceiling from $14.294 trillion to something much higher, with a stop gap intermediate ceiling of $14.694 trillion, or $400 billion more. Well, as of today, or less than a month since the expansion, total US debt is at $14.697 trillion. Yep – the total debt is again over the ceiling, which means the US debt increased by $400 billion in one month. Score one for fiscal prudence. And while the total debt subject to the limit is still slightly less, at $14.652, one week of Treasury auctions and will be time for Moody’s to justify again why the US is a quadruple A credit.  http://www.usagold.com/pete/newsviews/DebtCeiling.jpg 

 

 

 

 

Global Recession: Right Here, Right Now at Minyanville  Mike Mish Shedlock Sep 02, 2011 Why are we talking about avoiding recession when the global economy is clearly in one and fundamentals are horrendous?

 

  It's time to stop debating whether or not the US or Europe is headed into recession. The facts show the entire global economy is in recession.

Global Recession Supporting Data-Points


Ten Thoughts

1. Prior stimulus in the US is dead, having run its full course.
2. There is no incentive in the US Congress for more stimulus.
3. Austerity measures have yet to hit Italy and France.
4. Austerity measures will continue to bite Spain, Greece, Ireland.
5. Germany's export machine will die without the rest of Europe.
6. QE3 will fail much sooner than QE2 as interest rates already extremely accommodating.
7. Gold may respond well to competitive currency devaluation schemes.
8. The Eurozone is highly likely to breakup, although timing is unknown.
9. Global equities and commodities are priced for perfection.
10. Perfection is not happening.

 Talk of avoiding recession when the global economy is clearly in one and fundamentals are horrendous is sheer lunacy. For more, see Mish's Global Economic Trend Analysis here.

 

U.S. Postal Service nearing bankruptcy as email asserts its dominance [Good! Let UPS take them over the usps is totally unreliable]

 

 

Albert Edwards Has Another Reason You Should Worry About Profits at The Wall Street Journal  Mark Gongloff

http://s.wsj.net/public/resources/images/OB-PM490_margin_K_20110906142805.jpg

Brendan posted earlier about how Citigroup is getting worried about profit margins. Theyre not alone Soc Gens in-house Dr. Doom, Albert Edwards, has a note today with his own take on the subject.

Shockingly, Mr. Edwardss take is downbeat!

While Citi focused on the impact of government spending on corporate profits, Mr. Edwards zeroes in on the recent collapse in productivity and surge in labor costs and what they say about margins:

Last week the BLS revised the unit labor cost rise in Q2 up from 2.2% to 3.3% quarter over quarter. US non-farm business unit labour costs are now rising by 2% year over year. That is very bad news for profits. Bad news for equities. And because the pace of ULC is a key driver of inflation (upwards in this instance), it is bad news for an increasingly criticised and divided Fed.

Since labour costs overwhelmingly dominate corporate costs, trends in productivity are crucial to the pace of growth of company profits. If unit labour cost growth is below unit price inflation, then unit margins are expanding. This, together with unit sales growth (and the less important unit non-labour costs), arithmetically determine profit growth.

Typically, productivity growth tends to ebb and flow with the economic cycle i.e. productivity tends to rise as the economy accelerates and vice versa. Therefore unit labour costs tend to fall sharply early in economic recoveries (as has happened recently), but typically begin to rise and eventually exceed output price inflation later in the cycle.

When unit labour costs start to rise quicker than output prices, as is the case now, this tends to exert an upward pressure on inflation as companies try to maintain margins. The pass-through of this upward pressure on inflation is largely determined by the pace of the cycle. If demand is robust, inflation will rise. If demand is weak and companies cannot pass on cost increases, margins and profits get crushed. That is the tipping point we have now reached.

And Wall Street analysts, in a truly shocking development, actually seem to be paying attention, Mr. Edwards writes:

[W]e should not be surprised at the pace of deterioration in analyst earnings optimism: in fact we have seen a near record rate of decline in US estimates over the past six months. In Europe things are even worse! As Andrew Lapthorne shows in this week’’s Global Equity Market Arithmetic, European (ex UK) the level of analyst optimism has now dived to 24%, a level only ever reached in recession.

 

 

 

Why Every Investor Needs to Time the Market Breakout  In tumultuous times conventional wisdom suggests buying then holding high quality, blue chip, dividend paying stocks for stability. The big idea is to avoid "timing the market" by extending the time frame beyond the current day, month, year or even decade. The value/yield camp tends to view volatile markets, such as that of 2011, as a chance to add to a portfolio while flighty "traders" panic in and out of stocks.The mathematical fact is those who have bought and held stocks over the last 3, 5 or even 10 years have lost money, either on an absolute basis or relative to inflation. Missing the 50% drop of 2008 didn't require intuition, charting or sophisticated financial analysis. Selling the news when Bear Stearns got sold for $2 got you out of the S&P500 well over 1,250. Selling the news of the Lehman collapse got you out of stocks well over 1,200 on the S&P. Once out, investors had two years to get back into the market below where they made their exit. I don't particularly regard stepping aside as trading; it's common sense. If investing in this manner is a mug's game, buying and holding forever, putting Blue Chips in a drawer forever, or dollar-cost averaging have been tantamount to financial self-abuse…’   This Is a Secular Bear Market and The End of Buy and Hold and Hope http://www.albertpeia.com/endofbuyandhold.htm Brian Rezny June 03, 2010 Buy and hold investing is a popular strategy, and the thinking is straightforward: in the long run, the market will offer returns, in spite of short-term volatility. In theory, this is a sensible idea. Unfortunately, this approach does not work in todays market. Why not? Of course, the market is down for this month. But thats not the reason this is not a buy and hold environment. Its not just about the recent correction, or the end of a market rally. The current trend fits into a much bigger picture and its a picture of a long-term bear market. Secular markets are long-term trends, typically lasting about 18 years…’  [ This was true and among my conclusions even back in 1977 when I did my MBA thesis: MBA Finance, NYU GBA, 1977. It most assuredly is glaringly true today.  Fed Economists Predict A 15 Year Bear Market For Stocks Aug 23rd, 2011 News (BusinessInsider)  ,  A Decade of Decline in Equity Markets Faisal Humayun [ This is a must read and explains how the markets been artificially propped, the dow relative to hard assets, ie., gold (dow/gold ratio), has actually crashed 78%, and comparable prospects for the next decade, etc.. ‘…The Dow Jones Index was trading at 11,357 levels at the beginning of the year 2000. More than a decade later (as of beginning July 2011), the index is at 12582 (11,297). Therefore, the index has gained 11%  (-0-% as of this day) in the last ten years…’ Yet, the inflationary dollar (declining) debasement rate was 31%. (-31%) {See the inflation calculator infra and thats just the government (inflation) numbers reality is much worse!} Meanwhile, the frauds on wall street are churnin and earnin like never before at lightning computerized speeds enabling the high-frequency trades that are commissioned in unprecedented large volumes; a big net negative in real economic terms.]   



 

Prepare For Recession And Bear Market at Forbes Sy Harding, Brace yourself for a recession.

Central banks around the world seem to be doing so, making little effort to prevent it this time around, resigned to letting the business cycle play out.

Stock markets around the world also seem to be doing so. In anticipation of economic slowdowns that wont slide all the way into recessions, stock markets normally decline only into corrections (declines of less than 20%). But they plunge into bear markets when recessions loom.

And global stock markets outside of the U.S. are already in full-fledged bear markets. That includes 10 of the worlds 12 largest economies, the exceptions being only the U.S. and Canada.

In order of the size of their economies, at the recent August lows the stock market in China, the worlds second largest economy, was down 23% from its November peak, Japan down 21%, Germany down 30%, France down 29%, the United Kingdom down 21%, Brazil down 33%, Italy down 39%, India down 25%, Russia down 28%, and Spain down 29%. The exceptions were the U.S. and Canada, which at their August lows were down only 16% (the Dow) and 18% respectively.

The recession and bear market are coming to the U.S. too, and may have already arrived.

You can be sure of that because its been one world economically for years, and historically global economies and stock markets tended to always move in and out of recessions and bear markets together even before their dependence on each other became so pronounced.

You can be sure of it because central banks seem willing to let it play out this time as in days of old, without intervention.

In the financial crisis of 2007-2008, it took a massive coordinated effort by global central banks to pull the world back from the brink of what would have been a total global financial collapse.

But when their economies began to slow again in 2010, without the world being on the brink of financial Armageddon, major nations outside of the U.S. were content to let the business cycle play out normally, arguing against the U.S. Feds decision to jump in with its QE2 stimulus efforts.

Indeed, while the Fed was making that massive monetary easing effort, central banks in Asia, Europe, and South America were tightening monetary policies and raising interest rates to ward off rising inflation, and to tackle the government debt crises created by their 2008-2009 bailout efforts.

The Feds QE2 effort pushed a flood of additional dollars into the global financial system, spiking the prices of commodities and paper assets like stocks, but had no lasting effect on even the U.S. economy.

This year, as global economies again slow significantly, central banks outside of the U.S. again seem content, or at least resigned, to letting the business and economic cycle play out, even though it likely means a global recession.

They refrain from saying anything too negative that might make matters worse, but for instance, this week the central bank of Brazil, which actually has one of the worlds strongest and fastest growing economies (but highest rate of inflation), warned that this downturn in global economies will not be as severe as in 2008-2009, but will be more prolonged.

The Financial Times reported Friday that As the Organization for Economic Cooperation and Developments forecasts showed on Thursday, the near-term economic outlook for the Group of Seven is dire, yet the mood is one of resignation. . . . Finance ministers across the G7 are searching for ways to explain their lack of likely coordinated action.

And even in the U.S., the Federal Reserve has been clearly transparent about its reluctance to intervene this time.

With the economy far weaker than it was when the Fed intervened with QE2 last year, Fed Chairman Bernanke continues to say the Fed has some tools it can use if necessary, but will wait and see. In his most recent speeches he cautioned that the Fed is limited in what it can do anyway, and called for Congress to step up to the plate.

Thursday evening, President Obama did call for Congress to step up to the plate and pass his $450 billion jobs bill.

But even if the proposal should get through the political grinder of the grid-locked Congress, it would be too little too late by the time it could be implemented.

So prepare for a recession and bear market.

Hopefully investors learned from the 2000-2002 and 2007-2009 bear markets that Wall Streets advice to diversify into defensive stocks wont do it. As Ive shown you in previous columns, so-called defensive stocks, defensive because they pay high dividends or have been around a long time, are dragged down just as far as any in a bear market.

Back in the old days the call of successful investors in times like this was that cash is king. Even receiving little to no interest income on cash was better than experiencing a 30 to 40% loss.

These days investors are better served. The availability of inverse mutual funds and inverse exchanged-traded funds, designed to move up when markets move down, make them the new king in bear markets. Cash may be better than losses, but the opportunities for 30% profits while others are experiencing 30% losses are even better.

In the interest of full disclosure, I and my subscribers have already taken double-digit profits from positions in the ProShares Short S&P 500 etf, symbol SH, and ProShares Short Russell 2000 etf, symbol RWM, and were looking at others.

 

 

4 Bearish Mega Trends   Simon Maierhofer, September 9, 2011, ‘In 2004, Daniel Simons of the University of Illinois and Christopher Chabris of Harvard University conducted an experiment that was as simple as it was fascinating.

If you want to be part of the experiment, watch this video before you read any further.

The Experiment

There are two groups of three people each. One group is wearing black shirts, the other group white shirts. The assignment is to watch how many times the players wearing white, pass the basketball.

If you counted 15, you are correct. But more importantly, did you notice the gorilla? While you were counting passes, a woman dressed in a gorilla suit walked slowly across the scene, stopped to face the camera and thumped her chest.

Half of the people watching the video with the intent of counting passes did not see the gorilla. The experiment illustrates the phenomenon of unintentional blindness. This condition, also known as perceptual blindness, prevents people from perceiving things that are in plain sight.

For most of 2010-11 Wall Street was so enamored by the magical powers of QE2 that it forgot about the 800-pound gorilla - the economy that wasn't improving. In fact, the economy continued deteriorating in plain sight.

There are five bearish mega trends that may draw stock prices much lower over the coming years. Here are the five mega trends (and what will make stocks rally in between).

U.S. Deficit

For a moment, take a mental journey with me back in time. We are now in early 2008. The major indexes a la S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), and Nasdaq (Nasdaq: ^IXIC) are slowly coming off their all-time high, but the collapse of Lehman Brothers has not yet hit the news.

Unbeknownst to most, the perfect financial storm is brewing. Once the storm hits, it is much worse than anyone expected. But, the eventual damage is limited. Why? Because, the government steps up and does what it takes to prevent the financial system from failing.

Today has the feel of early 2008. Another perfect storm may be brewing. Will the government be there to do what it takes to support 'too big to fail?' No! In 2008 financial companies were in trouble. In 2011 entire countries (look at Europe and the U.S.) are struggling to escape the grip of delinquency.

A Decelerating Generation

Starting in 2011, more than 10,000 baby boomers a day will turn 65, a pattern that will continue for the next 19 years. This dry humor cartoon encapsulates the problem retirees' face today:

Two older gentlemen are having a drink. One says: 'As a Baby Boomer, I never thought the boom would be the sound of my retirement accounts collapsing.' He'd like to sip on a nice Scotch while enjoying a steak, but has to settle for water and free bread sticks at Olive Garden.

Most retirees still haven't recovered from the lost decade. Let's make the term lost decade more personal. A 55 year old with $100,000 in his retirement account at the beginning of the year 2000 and a 6% projected rate of return, would have $201,419 today.

The S&P trades 20% below its 2000 level. Courtesy of the lost decade, that $100,000 in the year 2000 has turned into $80,000 today (perhaps less if invested too aggressively). In other words, many retirees may have to get by on less than half of their expected nest egg. In addition, their home, rather than being an asset (many considered it an ATM a few years ago), has turned into a liability.

It doesn't take much imagination to see that strapped retirees are bad for economic growth. When the focus is on survival rather than pleasure, sectors like technology (NYSEArca: XLK - News), retail (NYSEArca: XRT - News), and consumer discretionary (NYSEArca: XLY - News) suffer.

In addition, baby boomers that have been buying stocks for decades (think of all the 401k money) are now turning into sellers of stock.

Low Interest Rates

Low interest rates are great for the U.S. government because it reduces debt payments on Treasuries and businesses wanting to expand. Unfortunately, businesses don't feel like expanding or even hiring and for pretty much everyone else low interest rates are negative.

Some try to sell the idea that low interest rates are good for stocks (NYSEArca: VTI - News) because money will flow from low interest bonds into stocks in an effort to get a better return.

The chart below plots the Nikkei against Japan's version of the discount rate. The discount rate has been below 1% since 1995. At the same time the Nikkei has dropped from above 20,000 to below 10,000. Much of this happened during a raging global bull market. Imagine what a global bear market can do to U.S. stocks.

                    https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20japan%20discount.gif

Low interest rates are a double negative because they reduce available spending for retirees who need to get as much income as possible to survive.

Coming to a Head

The above three bearish trends were highlighted in detail in various 2011 ETF Profit Strategy Newsletters. Due to those, and other mega trends, the Newsletter has been expecting a major market top.

For much of 2011 however, the expectation of a major market top was postponed until the ideal target range was reached. The April 3 ETF Profit Strategy update included a precise range for a major market top: 'In terms of resistance levels, the 1,369 - 1,382 range is a strong candidate for a reversal of potentially historic proportions. '

Why was S&P 1,369 - 1,382 a candidate for a reversal of historic proportions? The chart below, published by the ETF Profit Strategy Newsletter in March and many times since, has the answer.

                   https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20M%20pattern.gif

What you see is a giant M, or head and shoulders top. The right shoulder was made up of the parallel trend channel that connects the 2002 and 2009 low, with the 2000 high. In April/May the upper line of the trend channel ran through 1,377. Additional resistance was provided by Fibonacci levels at 1,389 and 1,369.

On May 2, the S&P briefly spiked as high as 1,370.58 before retreating and eventually dropping 18% in twelve trading days (July 25 - August 9). Once the S&P dropped below the 200-day SMA it entered free fall territory.

The July 28 ETF Profit Strategy update warned that: 'A break below the 200-day SMA and the trend line may trigger panic selling. One way to avoid missing out on a potentially big opportunity is to use the 200-day SMA at 1,284 as delineation between bullish and bearish bets - buy as long as the 200-day SMA serves as support, sell if it becomes resistance.'

From top to bottom (once the bottom is in), the S&P will have fallen more than 250 points. No doubt this kind of move validates a counter trend rally. When and where will this rally start and how high will it go?

The ETF Profit Strategy Newsletter provides a detailed outlook for the remainder of 2011 along with the target for a 2011 bottom and 2011 top. The Newsletter doesn't promise to get every turn of the market right, but it will identify the money-losing gorillas. Just imagine if you sold your holdings at the target range for a major top.

 

 

Zero Job Growth in August Supports Recession Case ETFguide.com

 

 

Why to Sell When Wall Street Says 'Buy' and Vice Versa ETFguide.com

 

S&P 1,100 And Lower - More Likely Than you Think Simon Maierhofer, On Friday September 9, 2011, ‘The S&P has been chopping around aimlessly for nearly a month. Wednesday ETF Profit Strategy update explained the reason and the outcome as follows:

'The aimless sideways trading and lack of powerful and predominantly one-directional rally suggests that the S&P is stuck in a mild up side correction to be followed by new lows. Range bound trading lulls investors into a false sense of security.'

Here are more than a handful of reasons why new lows are likely.

Up Trend Broken

The chart below shows the Dow Jones Industrials (DJI: ^DJI) since the March 2009 bottom. The DJIA weekly candle low touched the yellow trend line on different occasions before breaking through it on August 2.

The S&P 500 (SNP: ^GSPC) and Nasdaq (Nasdaq: ^IXIC) adhered to a similar but not as pronounced trend line. But the S&P also had a key experience on August 2. The August 2 ETF Profit Strategy Newsletter update observed regarding a head and shoulders top that the: 'S&P is about to break below the neckline around 1,249. A break below this neckline would unlock a measured target of S&P 1,140.'

The fact that both the DJIA and S&P 500 broke through necklines that have held for over two years is less than encouraging.

In addition, the S&P's May 2 high at 1,370 occurred right within the sweet spot of a major market top. The ETF Profit Strategy Newsletter published the chart below on various occasions throughout March, April and May and preached that S&P 1,369 - 1,382 is the ideal target range for a major market top (chart below was featured in the April 5 ETF Profit Strategy update).

                                         https://www.etfguide.com/images/PDNewsletter_Images/5%20-%20April%203%20TF.jpg                           

Death Cross

The death cross is one of the most talked about technical events, that's why I don't put too much stock in it. However, there are two interesting facts about previous death crosses.

The 2000 and 2007 death cross occurred about three days before the S&P embarked on its next leg down. The 2010 death cross was actually a buy signal. However, it occurred after the S&P and DJIA bounced off the yellow trend line (this time the trend line was broken).

Seasonality

August, September, and October is the most bearish stretch of the year. September and October sport negative performance even in the pre-election year.

Sentiment

From S&P 1,370 on May 2 to S&P 1,258 on June 16, the S&P shed 112 points and sentiment measured by Investors Intelligence (II) and the American Association for Individual Investors (AAII) turned deeply bearish. The June 16 ETF Profit Strategy update took that as a queue to buy (long positions were closed at S&P 1,340).

From S&P 1,353 on July 7 to S&P 1,102 on August 9 the S&P lost 251 points, yet the II sentiment poll registered the second most bullish reading since the first week of May. AAII and II polls are often considered the 'dumb money.' If the 'dumb money' views last Wednesday's low as a buying opportunity, the 'smart money' should be suspicious.

VIX Pattern

If you have the charting capabilities, take a moment and plot the VIX (NYSEArca: VXX - News) against the S&P for the month of September - November 2008 and April - July 2010. If you don't have the time you may simply look at the chart below.

                                         https://www.etfguide.com/images/PDNewsletter_Images/yahoo%20-%20vix%20pattern.gif           

What we've seen in 2008 and 2010 is that a VIX peak did not coincide with the S&P bottom. The S&P bottom actually occurred against a lower VIX reading. If this pattern continues, we will see lower lows.

The August 14 ETF Profit Strategy update includes a detailed analysis of the VIX pattern, along with the time frame and target level for an expected turn.

The Script

Via more or less accidental chart surfing I found a striking resemblance between the 2007 market top and the May 2011 top.  This moved me to state in the July 17 Profit Strategy update that:

'There is a similar trend line and a triple top above the trend line. A break below that trend line could be a precursor of bad things. Next week the trend line will be at about 1,262.'

The S&P sliced through that trend line on August 4 and fell an additional 12% within the next four days (this ascending trend line is now a big target and resistance).

The August 7 Profit Strategy update revisited that script and concluded this: 'We now have a rough script; let's see how much lip the actors will add during the live performance (I.e. S&P downgrade).

The two main things I have taken away from the 2007 script are:

1) There will be a new low.

2) There will be a powerful counter trend rally to around 1,xxx (reserved for subscribers).'

Short-term Outlook

Wednesday's (September 7) ETF Profit Strategy update advised aggressive investors to short the S&P 500 as soon as it breaks below 1,173. This doesn't mean that stocks can't go higher, but shorting the S&P against major support/resistance (with a tight stop-loss above) is the only conservative way to assure participation in the next leg down…’

 

 

Ominous Bear Flag Pattern Suggests S&P 500 At 1,000  Scott Redler Talk of a possible Greek debt default grew louder as the day wore on Friday, with several euro zone officials commenting that they expect a default over the weekend. Naturally, the markets didnt respond positively to the news. Combine that with the terror alerts in New York City and Washington, D.C., this weekend for the 10th anniversary of 9/11, and it was a recipe for heavy selling.

The Dow closed off more than 300 points to finish another wildly volatile week, and based on the action and news, we could be headed for another huge Monday morning gap down. However, it was difficult to chase shorts at the end of the day at such oversold levels, because if the Greek default doesnt come to fruition and there is no major terrorist attack, those short positions would likely be in serious pain.

The news of a possible Greek default, which would be a historic first-time event, overshadowed any individual stock stories today. In isolation, the default of a relatively small Eurozone economy would not be the end of the world, but with other, larger Euro economies standing on extremely shaky ground (especially Italy), such an event could trigger a domino effect unlike anything ever witnessed in modern human history.

Conventional wisdom would tell you that gold shot through the roof on a day like this, but whispers about potential margin hikes pushed GLD to a lower open and seemed to keep the metal at bay. Even with the market tanking, GLD had a hard time ticking higher.

Technical Take

If you take a step back and look at the SPY chart on a daily and even weekly time frame, the obvious pattern that jumps out at you is a wide, but well-defined, bear flag. Previously, we noted the well-defined head and shoulders pattern that forecast the deep correction.

The only strategies that have worked, and provided limited risk, over the past month have been buying and selling extreme moves in both directions. Large gap downs on Monday and Tuesday had investors extremely bearishthe most bearish since September 2007which gave way to a steep short squeeze.

As weve seen before, that low-volume bounce/short squeeze was only transitory, as Ben Bernanke would put it. The oversold bounce we saw early in the week actually turned out to be a negative event for the bulls, because it allowed the market to work off its severely oversold condition and prime for another plunge.

After such a harsh move lower, which began around the time of the debt ceiling debate and S&P downgrade, it is natural for there to be some indecision in the indices. However, nobody would have expected the range to remain as wide as it has been. Resolution to this pattern will come at one point or another, and based in the in-bound move, there will be a powerful secondary move (more than likely to the downside). The lower end of the channel also lines up with the 200-week Moving Average, which will be another crucial technical level.

The measured move could take the S&P down to the 1,000 range if a worst-case type scenario plays out, which would involve a Greek debt default that triggered a domino effect in Europe that could likely trigger defaults in at least a few other PIIGS (Portugal, Ireland, Italy, Greece, Spain) nations as well.

http://blogs-images.forbes.com/greatspeculations/files/2011/09/SP-bear-flag-1024x675.png

Technically, we are also seeing some clues that tell us that all is not well with Mr. Market. Nearly every sector is currently mired in a bearish technical formation; there are no rays of light. The one area of relative strength early in the week, is starting to look ready to break down as well.

One clue we look to first is high-beta tech. If the market is healthy under the hood, the leading high-beta tech stocks will usually hold up well. We saw some relative strength early in the week from the likes of Apple Inc. (AAPL), Amazon.com Inc. (AMZN) and Baidu.com Inc. (BIDU), but none of them were able to withstand the force of todays drop. AAPL and BIDU in particular look to be forming wedge continuation patterns, which generally resolve to the downside.

During the formation of the head and shoulders pattern, for example, the Industrials (XLI) and the Homebuilders (XHB) started to break down first, which signaled to us that the rest of the market wasnt far behind.

When selling is isolated and weak sectors drag the market down, it can be considered a buying opportunity for strong stocks. When selling is more across-the-board, its a sign to get of the way.

The measured move of the head and shoulder played out almost to a T (as you can see on the chart). Technical patterns arent always perfect, but they provide a good roadmap. Another thing you have to understand about technical analysis too is that it is largely a self-fulfilling prophecy. Moves in the market often play out simply because a large group of traders and investors are reacting based on the same set of rules.

Before the break of the head and shoulders, you had the more mainstream media start talking about the scary head and shoulders top pattern, which got both Main St. and Wall St. bearish. Now, everyone in the industry is talking about this ominous bear flag pattern, which is likely to make its rounds in the more mainstream media this weekend (along with the news about Greece).

Final Word

While doomsday talk is rampant right nowbetween a domino effect of European sovereign debt defaults to 9/11 anniversary attacksas traders we never trade based on assumptions. The traders who are consistent and profitable over the long haul are the ones who, first and foremost, limit their risk. At the end of the day today, for example, there is enormous risk for both longs and shorts.

If Greece does default and/or there is some sort of attack on NYC/DC, the market is sure to open sharply lower on Monday. However, if one or both of those events do not occur, shorts would be in for a massive squeeze. After such a harsh down day like today, it is best to take any profits you may have generated and take a firm seat on the sidelines.

Even if you are not involved in the weekend trade, there will be tremendous opportunity over the next few weeks to take advantage of this historic market volatility. Great opportunity comes with great risk, so be sure to, more than ever, stick to your personal trading rules and dont make big bets you cant afford to pay off.

 

 

Unprecedented Monthly Volume Sell-Off Suggests Now's the Time to Take Shelter at Minyanville Kevin A. Tuttle Sep 12, 2011 ‘Do not concern yourself if the market goes up today, tomorrow, or a month from now. The risk of entering is not worth the reward.

Over the weekend I had the pleasure of speaking with a very prominent European money manager overseeing hundreds of billions about the "across-the-pond" financial crisis unwind and looming hazard of a potential domino-effect coming to fruition. Without rehashing the entire conversation, the consensus is not "if," its "when" will the developing pressure finally blow. He actually went so far as to say it could truly begin unraveling within the next few weeks considering the catalysts currently in play.

The intent of providing the conversation synopsis is not for sake of fear, but understanding the potential ramifications. About three years ago, in one of my firm's quarterly reports, we opined on a unique situation in regard to the GDP measurements of Global Nations. It stated the unprecedented growth statistics from the 56 nations tracked.
History is currently being made in the sense that all the globally tracked economic growth nations (56), every one 100%..., are showing expansion. This lead to my next comment If the economic cycle pendulum swings in both directions what would happen if the inverse occurred? Are 2011/2012 the years we are about to find out? Maybe thats somewhat extreme, but yet is it possible?

We at my firm do not pretend to be intelligent enough to figure out all the nuances, catalysts, causes and reasons why the markets could fall apart; we
ll leave it to the team of economists and officials to attempt to sort that out. What we do instead is try to determine when the storm is coming and how to take shelter, which brings me to my point: Now is the time. Take shelter! Do not concern yourself if the market goes up today, tomorrow or a month from now. Clarity is key! Would you sail your boat into rocky waters with a potential hurricane looming because of your love of sailing? Is the risk worth the reward? For some, maybe; but for most, probably not.

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/jo.jpg 

Since the "2011 Channel of Indecision" broke on August 4, the seas have picked up dramatically and have begun swallowing ships. The markets have never seen this type of monthly volume sell-off
47% above average (unprecedented), as seen in the monthly chart above. As Kenny Rogers put it so eloquently Know when to hold em and know when to fold em', know when to walk away, know when to run!

Editor's Note: Read more at Tuttle Asset Management.

 

 

What's the Long-Term Outlook for Stocks and The Economy? ETFguide   Simon Maierhofer, September 12, 2011, ‘The stock market's summer performance has been nothing but stunning. Seeing daily swings in excess of 4% has become as common as American fast food in China.

Sometimes it's helpful to step back and shift the focus from day-to-day changes to multi-decade trends. This kind of big picture evaluation shows whether events like this summer's meltdown are just a hiccup or confirmation of a long-term trend (change).

MORE THAN JUST A MULTI-DECADE FLUKE

Gradual changes are often so subtle that they are nearly invisible to the naked eye or novice observer. But, just because a change is gradual doesn't mean it's insignificant.

Let's take a look at the basic make up of the U.S. economy. A few decades ago, sweat-trenched U.S. manufacturing facilities were the most fertile, growth-producing environment on the planet. This growth was fueled by 'Made in America' products. The growth was organic and it was real.

The first red box in the chart below captures this period of powerful organic growth. It lasted from 1947 - 1966. During this period, GDP growth averaged 4.18%.

The second red box captures a period of growth fueled by low interest and financial engineering. During this period - from 1975 - 2000 - GDP growth averaged only 3.4%.

                                     https://www.etfguide.com//contributor/UserFiles/8/Image/Growth%20Periods%20Yahoo.gif

(The above chart was featured in the March 2011 ETF Profit Strategy Newsletter)

The Only Original Dow Component, Not some Hot Tech Stock

General Electric (NYSE: GE - News), a company that prospered during both phases, aptly illustrates the difference between both periods.

Until the late 1960s, GE was known for manufacturing quality, American-made products like refrigerators, washing machines, stoves, light bulbs, and jet engines. GE manufactured real products, provided real jobs, and made real profits.

Starting in the 1980s GE changed its focus from blue collar manufacturing to white collar alchemy. GE ventured into television and high finance. GE's focus shifted from building quality products to financing purchases of competitor products. Ultimately, it went from manufacturing real products to building a financial house of cards.

In August 2000, GE traded as high as $60.5 a share. In 2009 it was as low as $5.73 - a 90% drop. Today, it's hovering around $15. As you ponder this change in valuation, keep in mind that GE is the only original Dow Jones Industrial Average (DJI: ^DJI) component, not some hot today cold tomorrow tech stock.

A NEW TREND IS BORN ... AND KILLED

Financially engineered (artificial) profits appeared to be the best new thing since sliced bread. However, GDP growth since 2000 has dropped dramatically, now only 1.71%. The post-2007 meltdown shows that an economy cannot be built on the financial (NYSEArca: XLF - News) and banking (NYSEArca: KBE - News) sectors.

It also shows that an artificial bull market is much more receptive to huge corrections. We've had the 2000 tech bust (NYSEArca: XLK - News), the 2005 real estate (NYSEArca: IYR - News) debacle, the 2007/2008 deflation of the financial sector, and most recently the summer 2011 meltdown.

If you think financially engineered profits are bad, brace yourself for what lies ahead. The hopes for economic prosperity (perhaps even survival) rest on Facebook, Twitter, Groupon, LinkedIn, Netflix, and the like.

Social networking isn't a proven business model, yet Facebook has an estimated market cap larger than those of Boeing, Home Depot, Walt Disney, Dell, Hewlett Packard, Costco, or even Goldman Sachs.

Hewlett-Packard employs 325,000 people, Home Depot 300,000, Boeing 160,000. However, Facebook cuts pay checks to only about 1,000 lucky employees.  Welcome to the future of high corporate profit margins and even higher unemployment.

Groupon has an estimated value of $6-9 billion, but its recipe of success is to coax businesses into providing discounts of 50 - 90%. Groupon is a classic economic leach that benefits by sucking the profits out of its client base and teaching its subscribers to buy only at discount prices. Welcome to a future of shrinking small business profits.

THE STOCK MARKET AGREES

The big picture fundamental outlook appears less than confidence inspiring. What about the big picture technical outlook?

The chart below (although small in size due to upload limitations) was featured in the March ETF Profit Strategy Newsletter and provides a big picture technical forecast. In fact, it's about as 'big picture' as it gets.

                    https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20M%20pattern.gif  

What you see is a giant bearish M pattern, it could even be considered a head and shoulders pattern. The neckline is formed by the 2002 and 2009 lows.

To determine an upside price target, we drew a parallel channel that connects the 2002 and 2009 lows with the 2000 high. The April 3 ETF Profit Strategy update said the following about this trend channel and other resistance levels:

'For the month of April this trend line will traverse through 1,377. The 78.6% Fibonacci retracement is at 1,381.5. There is a fairly strong Fibonacci projection resistance at 1,369. In terms of resistance levels, the 1,369 - 1,382 range is a strong candidate for a reversal of potentially historic proportions.'

The S&P (SNP: ^GSPC) peaked on May 2 at 1,370.58 and has since lost as much as 269 points or 19%. The Nasdaq (Nasdaq: ^IXIC) has held up slightly better, but no matter how you slice it, the stock market has given up more than a year's worth of gains within a matter of weeks. The VIX (Chicago Options: ^VIX) spiked to the highest level in over a year.

In addition, all major U.S. indexes broke below a trend line that has provided support on nine different occasions since the March 2009 lows.

This doesn't prevent rallies. In fact, based on our research, we should see a sizeable rally soon. However, odds favor that the stock market's trend has changed from up to down…’

 

 

[video] Trader: Waiting for Treasury Bubble to Burst at TheStreet.com

 

Preparing for a Credit Crisis at Minyanville  John Mauldin’ “I am sure the Euro will oblige us to introduce a new set of economic policy instruments. It is politically impossible to propose that now. But some day there will be a crisis and new instruments will be created.”-- Romano Prodi, EU Commission President, December 2001

Prodi and the other leaders who forged the euro … knew a crisis would develop, as Milton Friedman and many others had predicted. They accepted that as the price of European unity. But now the payment is coming due, and it is far larger than they probably thought…

The Consequences of Austerity

The markets are pricing in an almost 100% certainty of a Greek default (OK, actually 91%), and the rumors in trading circles of a default this weekend by Greece are rampant. Bloomberg (and everyone else) reported that Germany is making contingency plans for the default. Of course, Greece has issued three denials today that I can count. I am reminded of that splendid quote from the British ’80s sitcom, Yes, Prime Minister: “Never believe anything until it’s been officially denied.”

Germany is assuming a 50% loss for their banks and insurance companies. Sean Egan (head of very reliable bond-analyst firm Egan-Jones) thinks the ultimate haircut will be closer to 90%. And that is just for Greece. More on the contagion factor below.

“The existence of a ‘Plan B’ underscores German concerns that Greece’s failure to stick to budget-cutting targets threatens European efforts to tame the debt crisis rattling the euro. German lawmakers stepped up their criticism of Greece this week, threatening to withhold aid unless it meets the terms of its austerity package, after an international mission to Athens suspended its report on the country’s progress.

“ ‘Greece is “on a knife’s edge,”’ German Finance Minister Wolfgang Schaeuble told lawmakers at a closed-door meeting in Berlin on Sept. 7, a report in parliament’s bulletin showed yesterday. If the government can’t meet the aid terms, ‘it’s up to Greece to figure out how to get financing without the euro zone’s help,’ he later said in a speech to parliament.

“Schaeuble travelled to a meeting of central bankers and finance ministers from the Group of Seven nations in Marseille, France, today as they face calls to boost growth amid increasing threats from Europe’s debt crisis and a slowing global recovery.” (Bloomberg)


(There is an over/under betting pool in Europe on whether Schaeuble remains as Finance Minister much longer after this weekend’s G-7 meeting, given his clear disagreement with Angela Merkel. I think I take the under. Merkel is tough. Or maybe he decides to play nice. His press doesn’t make him sound like that type, though. They are playing high-level hardball in Germany.)

Anyone reading my letter for the last three years cannot be surprised that Greece will default. It is elementary school arithmetic. The Greek debt-to-GDP is currently at 140%. It will be close to 180% by year’s end (assuming someone gives them the money). The deficit is north of 15%. They simply cannot afford to make the interest payments. True market (not Eurozone-subsidized) interest rates on Greek short-term debt are close to 100%, as I read the press. Their long-term debt simply cannot be refinanced without Eurozone bailouts…

[Quick sidebar: If (when) the US goes into recession [We’re already in a recession!], have you thought about what the result will be? A recession of course means lower GDP, which will mean higher unemployment. That will increase costs due to increased unemployment and other government aid, and of course lower revenues as tax receipts (revenues) go down. Given the projections and path we are currently on, that means even higher deficits than we have now. If President Obama has his plan enacted, and if we go into a recession, we will see record-level deficits. Certainly over $1.5 trillion, and depending on the level of the recession, we could scare $2 trillion. Think the Tea Party will like that? Governments have less control than they think over these things. Ask Greece or any other country in a debt crisis how well they predicted their budgets.]

The Greeks were off by over 25%. And they are being asked to further cut their deficit by 4% or so every year for the next 3-4 years. That guarantees a full-blown depression. And it also means lower revenues and higher deficits, even at the reduced budget levels, which means they get further away from their goal, no matter how fast they run. They are now in a debt death spiral. There is no way out, short of Europe simply bailing them out for nothing, which is not likely.

Europe is going to deal with this Greek crisis. The problem is that this is the beginning of a string of crises and not the end. They do not appear, at least in public, to want to deal with the systemic problem of too much debt in all the peripheral countries…

Euro Breakup – The Consequences

The Euro Should Not Exist (Like This)

Under the current structure and with the current membership, the Euro does not work. Either the current structure will have to change, or the current membership will have to change.

Fiscal Confederation, Not Break-Up

Our base case with an overwhelming probability is that the Euro moves slowly (and painfully) towards some kind of fiscal integration. The risk case, of break-up, is considerably more costly and close to zero probability. Countries cannot be expelled, but sovereign states could choose to secede. However, popular discussion of the break-up option considerably underestimates the consequences of such a move.

The Economic Cost (Part 1)

The cost of a weak country leaving the Euro is significant. Consequences include sovereign default, corporate default, collapse of the banking system and collapse of international trade. There is little prospect of devaluation offering much assistance. We estimate that a weak Euro country leaving the Euro would incur a cost of around 9,500 to 11,500 per person in the exiting country during the first year. That cost would then probably amount to 3,000 to 4,000 per person per year over subsequent years. That equates to a range of 40% to 50% of GDP in the first year.

The Economic Cost (Part 2)

Were a stronger country such as Germany to leave the Euro, the consequences would include corporate default, recapitalization of the banking system and collapse of international trade. If Germany were to leave, we believe the cost to be around 6,000 to 8,000 for every German adult and child in the first year, and a range of 3,500 to 4,500 per person per year thereafter. That is the equivalent of 20% to 25% of GDP in the first year. In comparison, the cost of bailing out Greece, Ireland and Portugal entirely in the wake of the default of those countries would be a little over 1,000 per person, in a single hit.

The Political Cost

The economic cost is, in many ways, the least of the concerns investors should have about a break-up. Fragmentation of the Euro would incur political costs. Europes soft power influence internationally would cease (as the concept of Europe as an integrated polity becomes meaningless). It is also worth observing that almost no modern fiat currency monetary unions have broken up without some form of authoritarian or military government, or civil war.

Welcome to the Hotel California

Welcome to the Hotel California
Such a lovely place
Such a lovely face
They livin
it up at the Hotel California
What a nice surprise, bring your alibis

Last thing I remember, I was running for the door
I had to find the passage back to the place I was before
Relax, said the night man, We are programmed to receive.
You can check out any time you like, but you can never leave!

-- The Eagles, 1977

You can disagree with the UBS analysis in various particulars, but what it shows is that there is no free lunch. It is not a matter of pain or no pain, but of how much pain and how is it shared. And to make it more difficult, breaking up may cost more than to stay and suffer, for both weak and strong countries. There are no easy choices, no simple answers. Like the Hotel California, you can check in but you can
t leave! There are simply no provisions for doing so, or even for expelling a member.

The costs of leaving for Greece would be horrendous. But then so are the costs of staying. Choose wisely. Quoting again from the UBS report:

“… the only way for a country to leave the EMU in a legal manner is to negotiate an amendment of the treaty that creates an opt-out clause. Having negotiated the right to exit, the Member State could then, and only then, exercise its newly granted right. While this superficially seems a viable exit process, there are in fact some major obstacles.

Negotiating an exit is likely to take an extended period of time. Bear in mind the exiting country is not negotiating with the Euro area, but with the entire European Union. All of the legislation and treaties governing the Euro are European Union treaties (and, indeed, form the constitution of the European Union). Several of the 27 countries that make up the European Union require referenda to be held on treaty changes, and several others may choose to hold a referendum. While enduring the protracted process of negotiation, which may be vetoed by any single government or electorate, the potential secessionist will experience most or all of the problems we highlight in the next section (bank runs, sovereign default, corporate default, and what may be euphemistically termed civil unrest).

Leaving abruptly would result in a lengthy bank holiday and massive lawsuits and require the willingness to simply thumb your nose in the face of any European court, as contracts of all sorts would have to be voided. The Greek government would have to conveniently pass a law that would require all Greek businesses to pay back euro contracts in the new drachma, giving cover to their businesses, who simply could not find the euros to repay. But then, what about business going forward?

Medical supplies? Food?
The basics? You have to find hard currencies for what you dont produce in the country. Greece is not energy self-sufficient, importing more than 70% of its energy needs. They have a massive trade deficit, which would almost disappear, as who outside of Greece would want the new drachma? Banking? Parts for boats and business equipment? The list goes on and on. Commerce would slump dramatically, transportation would suffer, and unemployment would skyrocket.

If Germany were to leave, its export-driven economy would be hit very hard. It is likely that the
new mark would appreciate in value, much like the Swiss Franc, making exports from Germany even more costly. Not to mention potential trade barriers and the serious (and probably lengthy) recession that many of their export and remaining Eurozone trade partners would be thrown into. And German banks, which have loaned money in euros, would have depreciating assets and would need massive government support. (Just as they do now!)..

Ray Dalio and his brilliant economics team at Bridgewater have done a series of reports on a plan for Europe. Basically, it involves deciding which institutions must be saved (and at what cost) and letting the rest simply go their own way. If they are bankrupt, then so be it. Use the capital of Europe to save the important institutions (not shareholders or bondholders). Will they do it? Maybe.

The extraordinarily insightful and brilliant John Hussman recently wrote on a similar theme. He is a must-read for me. Quoting:

The global economy is at a crossroad that demands a decision whom will our leaders defend? One choice is to defend bondholders existing owners of mismanaged banks, unserviceable peripheral European debt, and lenders who misallocated capital by reaching for yield and fees by making mortgage loans to anyone with a pulse. Defending bondholders will require forced austerity in government spending of already depressed economies, continued monetary distortions, and the use of public funds to recapitalize poor stewards of capital. It will do nothing for job creation, foreclosure reduction, or economic recovery.

The alternative is to defend the public by focusing on the reduction of unserviceable debt burdens by restructuring mortgages and peripheral sovereign debt, recognizing that most financial institutions have more than enough shareholder capital and debt to their own bondholders to absorb losses without hurting customers or counterparties but also recognizing that properly restructuring debt will wipe out many existing holders of mismanaged financials and will require a transfer of ownership and recapitalization by better stewards. That alternative also requires fiscal policy that couples the willingness to accept larger deficits in the near term with significant changes in the trajectory of long-term spending.

In game theory, there is a concept known as Nash equilibrium (following the work of John Nash). The key feature is that the strategy of each player is optimal, given the strategy chosen by the other players. For example, I drive on the right / you drive on the right is a Nash equilibrium, and so is I drive on the left / you drive on the left. Other choices are fatal.

Presently, the global economy is in a low-level Nash equilibrium where consumers are reluctant to spend because corporations are reluctant to hire; while corporations are reluctant to hire because consumers are reluctant to spend. Unfortunately, simply offering consumers some tax relief, or trying to create hiring incentives in a vacuum, will not change this equilibrium because it does not address the underlying problem. Consumers are reluctant to spend because they continue to be overburdened by debt, with a significant proportion of mortgages underwater, fiscal policy that leans toward austerity, and monetary policy that distorts financial markets in a way that encourages further misallocation of capital while at the same time starving savers of any interest earnings at all.

We cannot simply shift to a high-level equilibrium (consumers spend because employers hire, employers hire because consumers spend) until the balance sheet problem is addressed. This requires debt restructuring and mortgage restructuring. While there are certainly strategies (such as property appreciation rights) that can coordinate restructuring without public subsidies, large-scale restructuring will not be painless, and may result in market turbulence and self-serving cries from the financial sector about global financial meltdown. But keep in mind that the global equity markets can lose $4-8 trillion of market value during a normal bear market. To believe that bondholders simply cannot be allowed to sustain losses is an absurdity. Debt restructuring is the best remaining option to treat a spreading cancer. Other choices are fatal.

(Click here for the rest of the article.)

You think the worlds central banks and main institutions are not worried? They are pulling back from bank debt in Europe, as are US money-market funds. (Note: I would check and see what your money-market funds are holding how much European bank debt and to whom? While they are reportedly reducing their exposure, there is some $1.2 trillion still in euro-area institutions that have PIIGS exposure.)

Look at the following graph from the St. Louis Fed. It is the amount of deposits at the US Fed from foreign official and international accounts, at rates that are next to nothing. It is higher now than in 2008. What do they know that you don’t?

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/fred1.jpg

The Slow March to Recession in the US..

John Hussman, in the same report, offers the chart below, which is a variant on themes I have highlighted in past issues, but with his own personal twist. It is a combination of four Fed indices and four ISM reports. And it has been reliable as a predictor of recessions – one of which it strongly suggests we are either in or heading into.

http://image.minyanville.com/assets/FCK_Jan2011/Image/LisaCatchJUNE2011/fred2.jpg

And recent revisions to economic data suggest that companies are going to have even more trouble making those powerhouse earnings that are being estimated. As Albert Edwards of Societe Generale reports this week:

“… at the start of 2011, productivity trends took a remarkable turn for the worse especially compared to what was initially reported. An initial estimate that Q1 productivity grew by 1.8% was transformed to show a decline of 0.6%. A slight 0.7% rise in Q1 ULC (unit labor costs) was transformed to show a staggering surge of 4.8%! In addition to that 4.8% rise, ULC rose a further 2.2% in Q2. But the news gets even worse Last week the BLS revised the ULC rise in Q2 up from 2.2% to 3.3% QoQ. US non-farm business unit labor costs are now rising by 2% yoy. That is very bad news for profits. Bad news for equities. And because the pace of ULC is a key driver of inflation (upwards in this instance), it is bad news for an increasingly criticized and divided Fed.

Preparing for a Credit Crisis

There is so much that could push us into another 2008 Lehman-type credit crisis..

I did an interview with good friends David Galland and Doug Casey of Casey Research yesterday. They are decidedly more bearish than I am, so wanted an optimist to sit on their panel. But they forced me to admit that some of my optimism depends on the probability of US political leaders doing the right thing. ..

But whether you want to make it 50-50 to 70-30 or (pick a number), there is a reasonable prospect of another credit crisis. So what should you do?

First, think back to 2008. Were you liquid enough? Did you have enough cash? If not, then think about raising that cash now. When the crisis hits, you have to sell what you can for what you can get, not what you want for reasonable prices
…’

 

 

Don't Trust Wall Street and this Market  ETFguide  [ I couldn’t say this better myself! Take heed! My sentiments exactly, except far worse is in store! ] Simon Maierhofer, September 13, 2011, ‘The chicken is clueless about the egg's fate. Will it hatch or become an omelet?

Wall Street is clueless about their forecasts, will they 'hatch' or become egg on their face? Who cares; as long as it sounds good at the time, Wall Street's opinions are promoted by the media. Is this a haphazard approach? Judge for yourself.

The most recent Wall Street blunder was the over emphasis on positive earnings in April. Here are some of the headlines Wall Street and the financial media featured late April 2011:

Morgan Stanley shares rise as earnings beat estimates

Stocks, commodities rise as earnings top estimates

Leading U.S. indicators, consumer confidence gain as fuel costs discounted

World revs up U.S. profits

The Global economy is improving

The S&P breaks out

The Dow's going to 20,000

Sales growth the big surprise on Wall Street

Buffett says odds of another U.S. banking crisis low

Equities finally seeing light on the economy

Stocks find sea of tranquility

Flawed Reasoning

The chart below, featured in the September 2010 ETF Profit Strategy Newsletter, reveals the flawed reasoning behind Wall Street's expectations. It plots Earnings per Share (EPS) against GDP and U-6 unemployment numbers.

                https://www.etfguide.com//contributor/UserFiles/8/Image/EPS%20Growth%20Yahoo.gif

Notice how earnings for Q1, Q2, and Q3 2011 were supposed to reach a new all-time high. There were at least four reasons why record high EPS estimates were not long-term bullish:

1) GDP was contracting, U-6 (and every other measure of unemployment) did not signal a recovery. Every spike in EPS would be temporary and unsustainable.

2) EPS estimates are just a projection and are about as valuable as an un-hatched egg.

3) The last time EPS reached an all-time high was in Q2 2007. We all know what happened thereafter.

4) EPS or P/E ratios can be distorted via financial trickery. Financials (NYSEArca: XLF - News) and banks (NYSEArca: KBE - News) took advantage of this when accounting rule FASB 157 was changed on April 2, 2009. This allowed banks to hide trillions of dollars of unrealized mortgage losses in an accounting loophole that doesn't affect their income statement and earnings. Thus some of banks' losses were included in earnings numbers.

The ETF Profit Strategy Newsletter's conclusion was simple and straight to the point: 'Buying at current prices with the expectation of long-term gains is almost certain to deliver despair and tears.'

Proceed With Caution

P/E ratios or EPS aren't a short-term timing tool and didn't prevent stocks from rallying since the above analysis was featured in the September ETF Profit Strategy Newsletter.

Nevertheless, a major market top was expected. The April 3 ETF Profit Strategy update put it succinctly this way: 'In terms of resistance levels, the 1,369 - 1,382 range is a strong candidate for a reversal of potentially historic proportions. Bullish bets should be watched very carefully, especially once stocks move above 1,356.'

The Summer 2011 meltdown erased all gains going back as far as December 2009. Yes, over 18 months of gains were eliminated within a matter of weeks.

Financial Serial Offender

If Wall Street was subject to the 'three strikes you're out' rule, there wouldn't be any financial offices in New York. By now it's common knowledge that Wall Street was overly optimistic in 2007 - right before the financial collapse - and overly pessimistic at the March 2009 lows - the beginning of a 100% + rally for the major indexes a la S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI) and Nasdaq (Nasdaq: ^IXIC).

More recent financial offenses include Wall Street's ill-advised fascination with silver in late April. On April 27 the Wall Street Journal ran a front-page article entitled 'Silver rush spreads to stock market.' The commentary read as follows: 'The metals are increasingly considered attractive as a permanent store of value that doesn't diminish like paper currencies.'…’

 

 

Congress budget agency warns panel of economic ills

 

Nearly 1 in 6 Americans in poverty, Census says

 

Growth Stocks Look Pricey. Favor Free Cash Firms with glowing growth projections have gotten expensive.

 

Cisco cuts long-term sales growth forecast [ And just when I was about to say that american technology is horrific, overrated but leading the charge higher on wall street because ‘sell the sizzle’ works better with tech since most don’t understand it. Actually, american tech at most is ‘different color hula hoops’! ]

 

International alarm over euro zone crisis grows

 

Why Can't Wall Street Be Honest With The Public?at Forbes [ Lets not be naïve here If the public knew even half of the truth, theyd be seeking to hang wall street from the yardarms, drawn and quartered they would be, etc.. Yes, hung, drawn and quartered. If caught while yachting on their yachts on taxpayer dime, theyd be keelhauled. There is really no limit to the well placed, well deserved antipathy for the frauds on wall street who should be prosecuted, jailed, fined, and disgorgement imposed. ]  

 

Venture capital veteran Perkins sees danger ahead

 

These Wall Street Firms are About to Start Firing People Like Crazy By Business Insider September 04 2011 ( archived file )

 

Same Alan Greenspan Who Warned Against Budget Surplus Now Warns About Deficit  [ Yeah! One of the many symptoms of senile dementia, with a strong measure of incompetence to boot (greenspun has a long history of incompetent missteps which through self-promotion, quid pro quos, and a general ubiquity of pervasive ignorance, has gone unscrutinized and unreported. Hes really been that bad!) ]  Mark Gongloff

 


ETF Redemptions Highest Since 2008: Report ETF Trends 

 

 

Stock Market Secret Word of the Day Is 'Delusion' at The Wall Street Journal  Paul Vigna  Once again, markets are eagerly swallowing the soothing words of European leaders, just as they have swallowed the soothing words of Chinese officials, Tim Geithner, etc., etc.

The Dow is up about 190 points, the S&P is up 1.8%, and the Nasdaq is up 2%, after the Conference Call to Save the Universe ended with all sides agreeing that Greece should never leave the eurozone and was doing what it could to get its next bailout fix.

Peter Boockvar at Miller Tabak is not impressed:

Bottom line, Greece is likely going to get its next 8 billion-euro tranche in 2 weeks but apparently Merkel, Sarkozy and Papandreou still dont like paying attention to the bond market, where the 1 year [note]  in Greece is yielding 141.8%, the 2 year is yielding 74.5% and the 10 year is yielding 25.7%.

This says of course that the only lifeline the Greek government has is thru the generosity of its neighbors as they have almost zero chance of paying back in full all that is owed.

I mentioned Merkel being in fantasyland yesterday and delusion is the word today that comes to mind after seeing these Greek headlines.

One would think at this point that Greece would want a more pronounced debt restructuring in order to slash their debt instead of playing this game of pretend because theyre afraid to hurt the feelings of bondholders.



Zoellick: World economy in new danger zone 

 

Geithner: Economy In “An Early Stage” Of Crisis Sep 14th, 2011 08:47 by News  (RealClearPolitics) — Jim Cramer, CNBC host: “Now let’s talk about the fact that you said the economy is weak. You put out a jobs plan. The New York Times today basically gives its obituary. ‘Tax plan for jobs bill.’ Familiar ring. Meaning the GOP will not back this. Is this dead on arrival?”

Tim Geithner, U.S. Secretary of Treasury: Absolutely not. I think that theres no reason now for the Congress of the United States not to act to help strengthen growth in the near term. Its the conservative, prudent, responsible thing to do. You can think of it as protection against Europe.

Cramer: Okay.

Geithner: You can think of it as insurance against weaker growth going forward. And you got to think about the alternatives. If Congress or Washington is incapable of acting, then policy will be damaging to growth because what youll have is a deeper, steeper contraction in fiscal support than is prudent for an economy at this early stage of the crisis given the shocks we face. You know, life is about choices. Life is about alternatives. [source] PG View: While this may be a significant admission on the part of the Treasury Secretary; in reality this may be the early stage of a crisis within the broader well-established crisis.

 

Risk Rises at ECB as European Banks Lose Deposits Sep 14th, 2011 07:43 by News (Bloomberg)

 

S&P Rally to 1,240 Before Capitulation Zacks Kevin Cook,September 14, 2011, ‘Fear has not gripped the market. The VIX, a good proxy for the institutional perception of risk since it is based on the premium being paid for S&P 500 put protection, has not made new highs since early August…’ 

 

Moody’s cuts two French banks’ ratings Sep 14th, 2011 07:39 by News (Financial Times)

 

EU warned of credit crunch threat, French banks hit WROCLAW,Poland/PARIS (Reuters) - European finance ministers have been warned confidentially of the danger of a renewed credit crunch as a "systemic" crisis in euro zone sovereign debt spills...

 

Can the U.S. Sidestep Contagion with Europe? ETFguide  [ Short answer: NO! ] ‘… SINKING INCOME LEVELS Even without Europe's problems, the U.S.' reputation for being the land of milk and honey has been declining. Household income, according to the Census Bureau's annual report on living standards, fell for the third consecutive year and on an inflation adjusted basis, incomes have retreated back to levels seen 15-years ago. Median household income was at a mere $49,445 in 2010. Full-time workers also experienced sagging incomes, which are lower today than in 1978, after adjusting for inflation. Furthermore, the poverty rate for Americans increased to 15.1% of the population. Will Europe's crisis help the U.S. economy end a multi-decade trend of falling incomes and rising poverty? STILL BLIND TO RECESSION What do economists have to say about all of this? As a collective group, economists still deny the existence of an economic recession and their off-the-mark financial projections show it. Instead of taking a sober and realistic view of the economy, they see growth, growth and more growth. Economists with the National Association for Business Economics (NABE) predicted 2.8% expansion for the U.S. economy in May, but have since scaled back that forecast to 1.7%. For 2012, the group is projecting 2.3% growth. The NABE has been likewise wrong about the unemployment rate. They were projecting a jobless rate of 8.7% for the remainder of 2011 and 8.2% for next year. Instead, nationwide unemployment has remained above 9% and if we account for marginally attached workers along with unemployed self-employed workers the actual national jobless rate is probably closer to 20%. It's important to remember the NABE's survey was completed before the White House's unveiling of a $447 billion plan to stimulate job growth through (more) government spending and tax cuts. No doubt, once economists factor in the President's latest plan, they'll re-revise their economic forecasts bullishly upward to agree with their perennial growth bias…’

 

 

Minyanville's T3 Daily Recap: Market Squeeze Continues, But Was it a Trap?  By T3Live.com Sep 14, 2011, ‘After a quick rinse in the first hour of trading Wednesday, the squeeze was back on as the SPDR S&P 500 ETF (SPY) surged 4 points (3.4%) from low to high. Weak shorts were forced to cover, and it was off the races for stocks. But just when it seemed all was well with the market, a harsh pull-in during the last half-hour of trading erased nearly half of those gains. We have seen this type of behavior before during this wide range consolidation in the market, and it typically leads to further downside. A teleconference between German, Greek, and French leaders today resulted in assurances that Greece would remain part of the Eurozone, but the same problems still exist on the troubled continent. There is a crisis of confidence starting occuring among European banks, with account holders keen to protect themselves from calamity. This is exacerbating previous capitalization concerns, which were confirmed this morning when French banks were downgraded. Today's action could have been another clever ploy to suck in longs while relieving some of the oversold condition of the market. Risk is high in both directions in this environment, and, as we have stated repeatedly over the last two weeks, it's best to keep your trading light at this stage.’

 

Flat retail sales keeps U.S. on recession watch 

 

Another Absolutely Bonkers Day  Mark Gongloff ‘Still spinning? Well, folks, that was the stock market. Hope you enjoyed it. Just another quiet, totally normal day. Yep, just another day when the Dow loses 140 points in the last 20 minutes of trading, after soaring as high as 280 for pretty much no fundamental reason.Still, you can’t complain about it too much. All the good stuff led the market higher today. The S&P’s 1.4% gain was paced by healthy cyclical stuff like industrials, up 1.75%, consumer discretionary, up 1.65% and tech, up 1.6%.The Dow transports jumped 2%. The VIX gave up 6.3%.All good signs, but you can’t shake the nagging feeling that it can’t be realistic, given how absolutely nuts the action has been lately. The Treasury market held pretty much steady, with the 10-year note yielding 2% just about all day.Nobody’s comfortable right now — shorts have got to be worried, and many got squeezed today.Those of us who are long, meanwhile, are anxiously checking whether our top has stopped spinning yet.’

 

Europe's Outlook Darkens as French Banks Wobble and Austria Delays Greek Bailout at Minyanville

 

The Daily Market Report  Sep 14th, 2011 by NewsIf There Was Any Doubt… (USAGOLD) — ‘The yield on Greek 1-year money is trading in excess of 140% today; up dramatically from just a week ago when the 1-year yield was still below 100%. Clearly this is unsustainable and Greece is unquestionably on the verge of default, save for some massive infusion of funds that will negate Greece’s need to access global credit markets…’



Huge Surge in Bank of America Foreclosures CNBC | Bank of America is ramping up its foreclosure processing.



David Rosenberg: Its Time To Start Calling This For What It Is: A Modern Day Depression Zero Hedge | You know youre in a depression when interest rates go to zero and there is no revival in credit-sensitive spending. September 14, 2011

By now only the cream of the naive, Kool-Aid intoxicated crop believes that the US is not in either a deep recession, or, realistically, depression. For anyone who may still be on the fence, here is David Rosenbergs latest letter which will seal any doubts for good. It will also make it clear what the fair value of the stock market is assuming QE3 fails, which it will, and the market reverts to trading to fair value as predicated by bond spreads. To wit: If the Treasury market is correct in its implicit assumption of a renewed contraction in the economy, then we could well be talking about corporate earnings being closer to $75 in 2011 as opposed to the current consensus view of over $110. In other words, we may wake up to find out a year from now that whoever was buying the market today under an illusion of a forward multiple of 10x was actually buying the market with a 15x multiple. And since we are in the throes of a deep depression and a 10x multiple is more than generous, applying that to $75 in S&P earnings, means that the fair value of the S&P is well leave that to our readers.

From Breakfast with Rosie, of Gluskin Sheff

We just came off the weakest recovery on record despite the massive amounts of stimulus that the U.S. government has delivered in so many ways. That the yield on the 10-year U.S. Treasury note is down to 2% already speaks volumes because the last time we were at these levels was back in December 2008 when the downturn was already 12 months old. A period like the one we have endured over the past six months when bank shares are down 30% and the 10- year note yield is down 130 basis points has never in the past foreshadowed anything very good coming down the pike. If market rates are at Japanese levels, or at 1930s levels, then its time to start calling this for what it is: A modern day depression.

Look, that entire period from 1929-1941 saw several quarters of huge bungee-jump style GDP growth and countless tradable rallies in the stock market.

But that misses the point.

The point being that a depression, put simply, is a very long period of economic malaise and when the economy fails to respond in any meaningful or lasting way to government stimulus programs. A series of rolling recessions and modest recoveries over a multi-year period of general economic stagnation as the excesses from the prior asset and credit bubble are completely wrung out of the system. In baseball parlance, we are in the third inning of this current debt deleveraging ball game.

You know youre in a depression when interest rates go to zero and there is no revival in credit-sensitive spending.

The economy is in a depression when the banks are sitting on nearly $2 trillion of cash and yet there is no lending going onto the private sector. Its otherwise known as a liquidity trap.

Depressions usually are caused by a bursting of an asset bubble and a contraction in credit, whereas plain-vanilla recessions are typically caused by inflation and excessive manufacturing inventories. You tell me which fits the bill today.

When almost half of the ranks of the unemployed have been looking for a job fruitlessly for at least six months, you know you are in something much deeper than a garden-variety recession. True, we cant see the soup lines; the soup lines are in the mail 99 weeks of unemployment cheques for over 10 million jobless Americans. Dont be lulled into the view that we are into anything remotely close to a normal economic cycle.

Basically, in a depression, secular changes take place. Attitudes towards debt, discretionary spending and homeownership are altered for many years, or at least until the scars from the traumatic experience with defaults and delinquencies fade away. That is why we saw existing home sales slide to 15- year lows and new home sales to record lows despite the fact that mortgage rates have tumbled to their lowest levels in modern history. There is no economic model that would tell you that declining mortgage rates should lead to lower home sales.

More fundamentally, in a recession, the economy is revived by government stimulus. In depressions, the economy is sustained by government stimulus. There is a very big difference between these two states.

In a recession, everything would be back to a new high nearly three years after the initial contraction in the economy. This time around, everything from organic personal income to employment to real GDP to home prices to corporate earnings to outstanding bank credit are still all below, to varying degrees, the levels prevailing in December 2007.

Lets be clear: After all the monetary, fiscal and bailout stimulus, the economy should be roaring ahead, as would be the case if the economy were coming out of a normal garden-variety recession. The fact that there has been no sustained response to all these efforts by the government to turn things around is testament to the view that this is not actually a traditional recession at all, but something closely resembling a depression. That, my friends, is exactly what the bond market is signaling, with Treasury yields rapidly approaching Japanese levels. Just because the stock market embarked on a stimulus-led speculative two-year rally, which ended abruptly in April 2011 does not change that fact.

For all the chatter about whether the recession that started in December 2007 ended in mid-2009, here is what you should know about the historical record. The 1930s depression was not marked by declining quarterly GDP data every single quarter. In fact, the technical recessionary aspect to the initial period following the asset and credit shock goes from the third quarter of 1929 to the first quarter of 1933.

I can understand how emotional the debate can get over whether or not we have actually just stumbled along some post-recession recovery path or whether or not this is actually a depression in the sense of a downward trend in economic activity merely punctuated with noise that is influenced by recurring rounds of government intervention. The reality is that the Fed cut the funds rate to zero, as was the case in Japan, to little avail. Then the Fed tripled the size of its balance sheet again with little sustained impetus to a broken financial system. Government deficits of nearly 10% relative to GDP, or double what FDR ever ran during the 1930s, have obviously fallen flat in terms of providing any lasting impact to the economy.

This is going to sound like a broken record but it took a decade of parabolic credit growth to get the U.S. economy into this deleveraging mess and there is clearly no painless quick fix towards bringing household debt into historical realignment with the level of assets and income to support the prevailing level of liabilities. We are talking about $5 trillion of excess debt that has to be extinguished either by paying it down or by walking away from it (or having it socialized). Look, we can understand the need to be optimistic, but it is essential that we recognize the type of market and economic backdrop we are in.

The markets are telling us something valuable when (after a period of unprecedented government bailouts, incursions and stimulus programs) the yield on the 5-year note is south of 1% and the 10-year is down to 2%. Instead of contemplating over how attractively priced equities must be in this environment, market strategists and commentators would bring a lot more to the table if they tried to decipher what the macro message is from this price action in the Treasury market. Conducting stock market valuation analysis based on unrealistic consensus earnings assumptions does nobody any good, especially when these estimates are in the process of being cut, and at a time when the Treasury market is telling us we are the precipice of another recession.

If the Treasury market is correct in its implicit assumption of a renewed contraction in the economy, then we could well be talking about corporate earnings being closer to $75 in 2011 as opposed to the current consensus view of over $110. In other words, we may wake up to find out a year from now that whoever was buying the market today under an illusion of a forward multiple of 10x was actually buying the market with a 15x multiple.

Hows that for a reality check?

This augers for capital preservation, defensive orientation in the equity market and a focus on income-yielding securities; something weve been advocating for some time.

 


 

How American Taxpayers Could End Up Paying for ECB Liquidity Flood at The Wall Street Journal 

 

Company Analysts Hop On Bandwagon Of Gloom  [ Yes! This is in contradistinction to the funny money bandwagon of irrational exuberance that has swept up nations worldwide who have now joined the ranks of the fraudulent american manipulated markets of non-value asset / security pricing which will end quite badly as always! ] 

 

 

How Greece Is Mocking the Rest of the World  [ Well, let’s get real here! There’s plenty to mock in this world, and Greece is hardly the nation to be doing the mocking. I think it’s the markets that are mocking the rest of the world’s stupidity for buying into this false reality / obfuscation / fraud, particularly by way of the now pervasive worldwide acceptance of the american strategy of currency debasement which really is a fraud facilitator because it masks to all but the intelligent few the underlying economic weakness and decline. A simplistic example, though not perfect, is apropos here: a company sells a product for 1 dollar which costs 1 dollar to make (assuming arguendo to cover fixed expenses - no profit). The fed over-printing / creating dollars like mad to the point where it now takes 2 dollars to render the same purchasing power of  1 dollar when the goods were produced. The company sells the products for 2 dollars (the previous equivalent of 1 dollar before debasement). The company is now showing earnings 1 dollar per unit sold, yet in real terms, they’ve gotten no more than the equivalent of that 1 dollar per unit. (If you’ve been to the grocery store lately, particularly the last 1-2 months, I’ve found meats, etc., to be up 50-100%, etc.). The same obfuscating manipulations are applicable to assets generally, and to those pieces of paper called stocks which are even ‘worse for the wear’ since churn-and-earn commissions at lightning computerized speed are being subtracted from this illusory ‘enhanced value’ which in reality doesn’t exist at all. ( Such manipulations from currency translation also provide ‘arbitrage opportunities’ though similarly largely ultimately subtracted from no real value being created. ) This is why fraudulent wall street loves the fed’s QE’s and dollar debasement / over-printing / creating and also why it’s been a dismal failure and a net negative in real economic terms as seen on main street and in the desimation of the middle class and growing ranks of the poor. In the analysis of securities, this would be considered ‘the quality of earnings factor’ that goes into the assignment of a p/e multiple to the projected earnings. Sufficeth to say, this is no longer done on wall street in any real or legitimate fashion if at all. Indeed, it’s a fair statement to say that security analysis is no longer a ‘practice’ as same was considered, once upon a time, by value investors / analysts. As set forth by Dave and Cooper, infra, computerized programmed manipulation at lightning speed has been expedient in the short run for the wall street frauds but ultimately leads to the inevitable crash since as I often reiterate:  Remember, there is no modern day alchemy that spins worthless paper into gold except fraudulently for the frauds on wall street who’ve literally oftimes done exactly that; ‘cashing out’ for hard currency and gold, precious metals, at everyone else’s expense including main street. They’re just not that important and represent, like termites eating away at the nation’s foundation, a drag on the economy, the nation as one would expect from parasites such as they are’. What to Expect Next From the Markets Minyanville  Jeffrey Cooper ‘Conclusion: It looks like a program was run using the least amount of dollars to goose the indices by focusing on some big cap names like Apple, Amazon, Baidu, IBM, and Caterpillar,  Dave’s Daily:’.. The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job..’.      Simon Maierhofer, On Friday September 16, 2011, ‘Webster's dictionary defines gullible as naive and easily duped or cheated'.

On Thursday stocks rallied after Germany and France gave assurance that Greece will remain a member of the euro.

Haven't we been down this road before? How often have there been statements assuring that Greece is fine or will be fine? An Associated Press article stated this week that: 'Hopes were raised by the outcome of a teleconference Wednesday between leaders of France, Germany and Greece.'

Hope worked as propaganda tool for President Obama three years ago, but hope is not a suitable investment strategy. Einstein's famous definition of insanity comes to mind: Insanity is doing the same thing over and over again and expecting different results.

Since the beginning of 2010 there have been five 10%+ sell offs. All of them, with the exception of the March 2011 decline (Japan earthquake), were blamed on Greece. When stocks recovered, it was credited to Greece's rigorous adherence to the demanded austerity measures or new bailout money.

The S&P has made no net progress since January 2010. After two years of water treading and lessons in Greek-style financial mockery we have to ask, is Wall Street insane?

Greece's Prime Minister George Papandreou just pledged that a reform program would be on the top of Thursday's (yesterday) Greek cabinet meeting. To buy stocks based on a pledge to push a concern that was initially sold as non-issue but has morphed into a matter of survival on the top of an agenda does seem insane.

Or should we just consider the Greeks geniuses? After all, they have figured out how to control Wall Street. Today it only takes mythical Grecian hope for a hopefully hopeful outcome to excite Wall Street.

A German saying may describe Greece's situation. Loosely translated, it goes like this: Once your reputation is ruined, you may live blatantly uninhibited.

Insane Financial Pain

The Greek saga began over two years ago, when, on June 23, 2009, Greece's finance minister nonchalantly disclosed that: 'The rate of growth for the Greek economy in 2009 is expected to slow more than forecasted. Specifically, it will range around zero and only return to growth in 2010.' The disclosed budget deficit at the time was $3.1 billion.

Growth obviously didn't return in 2010, but the following headlines all offered hope in 2010:

ECB member says no bailouts for Greece

Bulls run on Greece news

Debtors bet Greece won't spill

Is Greece's crisis over?

Greece contagion fears unfounded

IMF approved $3.3 billion for Greece amid impressive fiscal adjustment

If Greece's adjustment was that impressive, why are we still talking about Greece?

Small Fish in the Debt Pond

Greece has made quite a splash but it is just a small fish in the European debt pond. Given some more time, we'll probably find out that bigger fish make bigger splashes. Next in line are Portugal, Spain, Italy and France. In terms of size, this is probably like comparing a goldfish with a tuna.

The Wall Street Journal reported on Monday that: 'European banks are cutting back on dollar denominated loans, a troublesome sign of credit contraction at a time when American and European economies can least afford it.' Credit contraction is the mother of deflation and Bernanke's most feared enemy.

The Chairman of Societe Generale, one of France's largest banks, made it a point to state on Monday that the bank was well funded. Nevertheless, it will be reducing its dollar denominated debt and lay off workers. When promises conflict actions, we know that actions speak louder than words. Laying off workers is not confidence inspiring.

Back in February, the ETF Profit Strategy Newsletter warned that: 'The debt problem of sovereign European countries has or is about to turn into a debt problem of super sovereign entities. The IMF and EU swallowing up massive amounts of debt has not eliminated debt, it has merely re- shuffled and concentrated it.'

On July 15, I stated via ETF Profit Strategy Newsletter: 'I know European stocks will tank eventually but I don't know when. However, I see that the iShares MSCI EAFA ETF (NYSEArca: EFA - News) just sliced below it's 20, 50 and 200-day simple moving averages (SMAs). The same is true for the iShares MSCI Emerging Markets ETF (NYSEArca: EEM - News). The high reward, low risk trade would be to go short EFA or EEM with a stop loss just above the 200-day SMA Corresponding ETFs are Short MSCI EAFE ProShares (NYSEArca: EFZ - News) and Short MSCI Emerging Markets ProShares (NYSEArca: EUM - News).

What's Next?

Fortunately the European Union can rely on the smarts of its many capable members. There is former IMF chief Dominique Strauss-Kahn who'd rather force his will on an innocent Manhattan hotel worker than enforce strict financial rules on member countries, Luxembourg's Prime Minister Jean-Claude Juncker who openly confesses to lying if required by circumstances and a whole slew of officials suffering from gullibility. You should think twice before betting against the European financial dream team.

As for me, I rely on technicals, not on officials, their decisions or the media's interpretation of it. The technicals I focus on are those of the S&P (SNP: ^GSPC). Not surprisingly, European stocks have generally moved in the same direction as the S&P.

The S&P and the SPDR Euro STOXX 50 ETF (NYSEArca: FEZ - News) both topped on May 2. The S&P's top came right on queue and within the 1,369 - 1,382 target range of a major market top I've outlined via the ETF Profit Strategy Newsletter since early 2011.

Unlike the S&P, FEZ sunk to new lows on September 12. On that day FEZ was 38% below its May 2 high. Some more near-term damage may be to come for European stocks, but after a 38% haircut is not the time to double up on short positions.

As far as the S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI) and Nasdaq (Nasdaq: ^IXIC) is concerned, new lows are likely…’

 

Citi Cuts S&P 500 Target, Too at The Wall Street Journal

 

Lesson From A Burst Bubble: Dead Men Don't Spend at Forbes The Lehman bankruptcy was a much more important event than 9/11. It marked the end of a 60-year credit expansion. Maybe it marked the high water mark for the U.S. empire, too, and the beginning of the end for the U.S. dollar-based world monetary system.

Whats most remarkable about this post-Lehman economy is that it is so un-remarkable. The economy is contracting, and as it contracts, it squeezes jobs, incomes, spending and prices.

We saw a note in the press yesterday. It told us that even the wages of sin are falling. The union that represents waiters and cocktail servers at Atlantic City casinos says the hourly base has fallen from $8.74 to only $4.50. And tips are tumbling. Surveys of prostitutes show their earnings are a bit limp, too.

And as people get squeezed by the financial correction, they gasp for breath. There are now 46.2 million people in America under the poverty line, according to The Los Angeles Times. Thats the most in 50 years.

But nothing extraordinary about that either. This is the biggest correction in half a century too. And you dont have to look very far to find more confirmation.

Thats why the 10-year Treasury note yield has fallen to the lowest level since right after WWII, and its why nearly half the people looking for a job have been looking for more than six months. And its why a recent poll shows that 72% of Americans think the nation is going to hell.

Now, finally, almost everyone realizes that this is not a recession-recovery situation. Something else is going on. The Financial Times calls it a Great Recession. Richard Koo calls it a Balance Sheet Recession. And David Rosenberg says we should call it what it really is a modern depression.

But well stick with our Great Correction label. Because we think there is more going on here than even a depression describes. (About whichmore below).

So far, practically everything that has happened is about what youd expect the predictable, ordinary consequences of a contraction. There is nothing remarkable about it.

But whats this? The Dow is back on the rise. Stock market investors dont seem to have gotten the message: this economy is in a contraction. Theyre still pricing stocks as if they thought the underlying businesses would grow. But companies dont add sales or profits in a contraction.

At least gold investors seem to have a better idea of what is going on. They sold the yellow metal.  The price of the GLD is dropping.

And the bond market too has its feet on the ground. The yield on the 10-year note is only 2.08%. That is a level consistent with a Japanese-style slump

No surprises here. But what if there were more going on than a simple financial correctioneven a correction of a 60-year credit expansion? What if the Great Correction were greater than we thought? More ambitious, more aggressive and more dangerous?

In the space of the last 500 years the human population grew approximately 1000%. If it were a financial chart, youd look at it and think uh ohits a bubble.

What if we were approaching a correction?

Reuters reports that the population of Japan is falling like a stone. Some 20 million Japanese are expected to disappear in the next 30 years.

Declining, graying populations are not what you need for economic growth. Old people dont spend much. Dead people spend even less.

As a result, the economy shrivels up like a 90-year-old. In Japan today about the only business still growing is the funeral business. People spend $157 to rent cold rooms, where they can store their loved ones while they await a spot at the crematorium. No kidding. Heres Reuters:

Annual deaths are expected to peak at 1.66 million in 2040 as the bulk of the nations baby boomer generation expires. By then, Japans population will have shrunk by around 20 million people, an unprecedented die off for a nation neither at war or blighted by famine.

Dead Men Dont Spend by Bill Bonner originally appeared in the Daily Reckoning. ‘

 

 

ETFs have potential to become the next toxic scandal Sep 19th, 2011 News (The Telegraph) Back in April, the Financial Stability Board (FSB), an international super-regulator, wrote a prescient if less than catchily-titled paper Potential financial stability issues arising from recent trends in Exchange Traded Funds (ETFs).Its central warning that ETFs are not the cheap and transparent vehicles the marketers would have us believe was spot on. When UBSs $2bn black hole hit the screens on Thursday, no one who read the FSB report was surprised to see the words ETF and rogue trader in the same sentencearound half of the ETFs in Europe today do not match the index they are designed to track by holding all of its constituent shares. Unlike the plain vanilla full replication ETFs which do, 45pc of the market is in the form of so-called swap-based ETFs which instead use derivative agreements, often with investment banks, to simulate the performance of the underlying assets. Derivative trades add a second layer of uncertainty to the unavoidable ups and downs of the market, the counterparty risk that the organisation on the other side of the contract might go bust. Even worse, the provider of the ETF might sometimes be a part of the same organisation as the derivatives desk carrying out the swapFor reasons which Im not sure I could explain even if I had the space, it is possible for the number of shares sold short in an ETF to massively exceed the actual number of shares available. [source]

 

 

4 'Invisible' Forces to Seal the Market's Fate ETFguide Simon Maierhofer, On Monday September 19, 2011, ‘In 2004, Daniel Simons of the University of Illinois and Christopher Chabris of Harvard University conducted an experiment that was as simple as it was fascinating.

If you want to be part of the experiment, watch this video before you read any further.

The Experiment

There are two groups of three people each. One group is wearing black shirts, the other group white shirts. The assignment is to watch how many times the players wearing white, pass the basketball.

If you counted 15, you are correct. But more importantly, did you notice the gorilla? While you were counting passes, a woman dressed in a gorilla suit walked slowly across the scene, stopped to face the camera and thumped her chest.

Half of the people watching the video with the intent of counting passes did not see the gorilla. The experiment illustrates the phenomenon of unintentional blindness. This condition, also known as perceptual blindness, prevents people from perceiving things that are in plain sight.

For most of 2010-11 Wall Street was so enamored by the magical powers of QE2 that it forgot about the 800-pound gorilla - the economy that wasn't improving. In fact, the economy continued deteriorating in plain sight.

There are five bearish mega trends that may draw stock prices much lower over the coming years. Here are the five mega trends (and what will make stocks rally in between).

U.S. Deficit

For a moment, take a mental journey with me back in time. We are now in early 2008. The major indexes a la S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI), and Nasdaq (Nasdaq: ^IXIC) are slowly coming off their all-time high and the VIX (Chicago Options: ^VIX) is reflecting some complacency before the collapse of Lehman Brothers hits the news.

Unbeknownst to most, the perfect financial storm is brewing. Once the storm hits, it is much worse than anyone expected. But, the eventual damage is limited. Why? Because, the government steps up and does what it takes to prevent the financial system from failing.

Today has the feel of early 2008. Another perfect storm may be brewing. Will the government be there to do what it takes to support 'too big to fail?' No! In 2008 financial companies were in trouble. In 2011 entire countries (look at Europe and the U.S.) are struggling to escape the grip of delinquency.

A Decelerating Generation

Starting in 2011, more than 10,000 baby boomers a day will turn 65, a pattern that will continue for the next 19 years. This dry humor cartoon encapsulates the problem retirees' face today:

Two older gentlemen are having a drink. One says: 'As a Baby Boomer, I never thought the boom would be the sound of my retirement accounts collapsing.' He'd like to sip on a nice Scotch while enjoying a steak, but has to settle for water and free bread sticks at Olive Garden.

Most retirees still haven't recovered from the lost decade. Let's make the term lost decade more personal. A 55 year old with $100,000 in his retirement account at the beginning of the year 2000 and a 6% projected rate of return, would have $201,419 today.

The S&P trades 20% below its 2000 level. Courtesy of the lost decade, that $100,000 in the year 2000 has turned into $80,000 today (perhaps less if invested too aggressively). In other words, many retirees may have to get by on less than half of their expected nest egg. In addition, their home, rather than being an asset (many considered it an ATM a few years ago), has turned into a liability.

It doesn't take much imagination to see that strapped retirees are bad for economic growth. When the focus is on survival rather than pleasure, sectors like technology (NYSEArca: XLK - News), retail (NYSEArca: XRT - News), and consumer discretionary (NYSEArca: XLY - News) suffer.

In addition, baby boomers that have been buying stocks for decades (think of all the 401k money) are now turning into sellers of stock.

Low Interest Rates

Low interest rates are great for the U.S. government because it reduces debt payments on Treasuries and businesses wanting to expand. Unfortunately, businesses don't feel like expanding or even hiring and for pretty much everyone else low interest rates are negative.

Some try to sell the idea that low interest rates are good for stocks (NYSEArca: VTI - News) because money will flow from low interest bonds into stocks in an effort to get a better return.

The chart below plots the Nikkei against Japan's version of the discount rate. The discount rate has been below 1% since 1995. At the same time the Nikkei has dropped from above 20,000 to below 10,000. Much of this happened during a raging global bull market. Imagine what a global bear market can do to U.S. stocks.

                   https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20japan%20discount.gif  

Low interest rates are a double negative because they reduce available spending for retirees who need to get as much income as possible to survive.

Coming to a Head

The above three bearish trends were highlighted in detail in various 2011 ETF Profit Strategy Newsletters. Due to those, and other mega trends, the Newsletter has been expecting a major market top.

For much of 2011 however, the expectation of a major market top was postponed until the ideal target range was reached. The April 3 ETF Profit Strategy update included a precise range for a major market top: 'In terms of resistance levels, the 1,369 - 1,382 range is a strong candidate for a reversal of potentially historic proportions. '

Why was S&P 1,369 - 1,382 a candidate for a reversal of historic proportions? The chart below, published by the ETF Profit Strategy Newsletter in March and many times since, has the answer.

                   https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20M%20pattern.gif

What you see is a giant M, or head and shoulders top. The right shoulder was made up of the parallel trend channel that connects the 2002 and 2009 low, with the 2000 high. In April/May the upper line of the trend channel ran through 1,377. Additional resistance was provided by Fibonacci levels at 1,389 and 1,369.

On May 2, the S&P briefly spiked as high as 1,370.58 before retreating and eventually dropping 18% in twelve trading days (July 25 - August 9). Once the S&P dropped below the 200-day SMA it entered free fall territory…’

 

 

Stock-ECRI Disconnect Suggests More Downside at The Wall Street Journal  Oddly Cheery Greek Pronouncements, Part Deux at The Wall Street Journal     Greek Finance Ministry Sends Oddly Cheery E-Mail at The Wall Street Journal  Apple Hits New High (Update1) [ This manipulated programmed trade to froth markets is a crash in the making – sell at these ridiculous levels / take profits! ]  Stocks cut losses on hopes for Greece     Analysis: Japan's lost decade still a risk for U.S. economy    Behind the poverty numbers: real lives, real pain   Market Havoc and Threats to Your Pension International Forecaster | We have warned over and over again that government was going to come after your private retirement funds.  US taxpayers could be on hook for Europe bailout MSNBC | The U.S. is coming to Europe’s financial rescue.

 

 

IMF downgrades outlook for US and Europe economies [Sep 20, 2011] ... Fund has sharply downgraded its outlook for the U.S. economy through 2012 ...  http://finance.yahoo.com/news/IMF-downgrades-outlook-for-US-apf-1240337037.html?x=0



Market Recap: S&P Downgrades Italy, Housing Starts Tumble, Markets Wait on Bernanke   Wall St Cheat Sheet  September 20, 2011, Markets closed mixed on Wall Street today: Dow +0.07% , S&P -0.17% , Nasdaq -0.86% , Oil +1.39% , Gold +1.65% .

On the commodities front, Oil climbed to $86.89 a barrel. Precious metals also climbed, with Gold rising to $1,808.30 an ounce while Silver climbed 1.95% to $39.93 an ounce.

Hot Feature: European Central Banks Are Hungry for Gold

Todays markets were mixed because:

1) Italy. Standard & Poors cut Italys credit rating late Monday by one level to A from A+, citing weak economic growth and criticizing Romes response to the debt crisis. Italian Prime Minister Silvio Berlusconi responded, saying that the move was influenced by political considerations and media stories rather than economic reality. Markets quickly shrugged off the news, with major indices in Italy, Germany, and London all opening higher this morning.

2) Bernanke. Goldman Sachs provided a preview of what investors could see tomorrow from the Federal Reserve, saying there is a high probability that the FOMC will announce further easing steps at the conclusion of this weeks meeting. Goldman went on to say that Operation Twist looks very likely and that, As a complementary measure, we also expect that the committee will announce a cut in the interest on excess reserves (IOER) rate to 0.1% from 0.25%, although this is a much closer call. An IOER cut would lower market interest rates a small amount and could aid communication. The expectation of good news buoyed markets despite a day full of negative or at least neutral economic data, and had the major indices climbing high in mid-day, though theyve since declined toward more reasonable levels, given that the IMF announced today that it had lowered its global economic forecast for 2011 and 2012, with growth in Europe and the U.S. stalling.

3) Housing. Both housing starts and completions declined in August from already depressed numbers, according to a monthly report by the Department of Urban Housing and Development, in conjunction with the U.S. Census Bureau. However, building permits increased last month, which means more projects are likely to start within the next six months. The news had building stocks climbing higher, including Toll Brothers , D.R. Horton , KB Home , PulteGroup , Hovnanian Enterprises , and The Ryland Group all outperforming the major indices.

BONUS: IMF Downgrades Global Economic Outlook

 

30 Signs That The U.S. Economy Is About To Go Into The Toilet The Economic Collapse | If you think the U.S. economy is bad now, just wait for a few months.

 

Signs The Perfect Economic Storm Is Coming | www.bullfax.com  http://www.bullfax.com/?q=node-signs-perfect-economic-storm-coming  09/22/2011 By Michael T. Snyder: The financial world is officially going crazy. Can you believe what is going on out there right now? Financial markets have been jumping up and down like crazy for months and this is creating a lot of fear. Other than during the financial crisis of 2008, in the post-World War II era have we ever experienced as much financial instability as we are seeing right now? Should we just accept that massive financial instability is going to be part of "the new normal" in the financial world? The wild swings that we are witnessing in the global financial marketplace are making a whole lot of people very nervous right at the moment. When markets go up, they tend to do it slowly and steadily. When markets go down, a lot of times it can happen very rapidly. Also, as I have mentioned before, more major stock market crashes happen duringThe following is from an article that was recently posted on MarketWatch....

The insiders have vanished.

Chief executives. Board members. The head honchos. The people who know. Just a few weeks ago, they were out in force, buying up shares in their own companies with both hands. No longer. They’ve disappeared. Almost overnight. “They’ve stopped buying,” says Charles Biderman, the chief executive of stock market research firm TrimTabs, which tracks the data.

For some reason, this almost always starts happening before a crash. So obviously this is not a good sign.

A lot of normal investors have been pulling large amounts of money out of stocks as well. The following is from a report in the Financial Post....

Investors have pulled more money from U.S. equity funds since the end of April than in the five months after the collapse of Lehman Brothers Holdings Inc., adding to the $2.1 trillion rout in American stocks.

About $75 billion was withdrawn from funds that focus on shares during the past four months, according to data compiled by Bloomberg from the Investment Company Institute, a Washington-based trade group, and EPFR Global, a research firm in Cambridge, Massachusetts. Outflows totaled $72.8 billion from October 2008 through February 2009, following Lehman’s bankruptcy, the data show.

Are you starting to get the picture?

Not only that, but a third very troubling sign is that an extraordinary number of bets have been placed against the S&P 500. As I noted the other day, if there is a stock market crash in the next few weeks, somebody is going to make a ton of money....

We are seeing an amazing number of bets against the S&P 500 right now. According to CNN, the number of bets against the S&P 500 rose to the highest level in a year last month. But that was nothing compared to what we are seeing for October. The number of bets against the S&P 500 for the month of October is absolutely astounding. Somebody is going to make a monstrous amount of money if there is a stock market crash next month.

It doesn't take a genius to see all the dark financial clouds that are gathering on the horizon.

And all of the bad news that is constantly coming out of Europe is certainly not helping things. For example, yesterday S&P slashed the credit ratings of seven different Italian banks.

Credit downgrades have become so frequent that we hardly even notice them anymore. Pessimism is everywhere right now. Suddenly it seems like almost everyone is predicting that another "recession" is coming....

 

Portfolio Insights by Brett Arends Sept. 21, 2011 Brett Arends, MarketWatch BOSTON (MarketWatch) Something ominous is happening on Wall Street, but nobody has noticed. The insiders have vanished. Chief executives. Board members. The head honchos. The people who know. Just a few weeks ago, they were out in force, buying up shares in their own companies with both hands. No longer. Theyve disappeared. Almost overnight. Theyve stopped buying, says Charles Biderman, the chief executive of stock market research firm TrimTabs, which tracks the data. Insiders arent buying this rally. Insider stock purchases, which surged above $100 million a day in the market slump last month, have now collapsed to just $13 million a day. Meanwhile the ratio of insider sales to purchases has skyrocketed. Today insiders are dumping $7 in stock for each $1 that (other) insiders are buying. Thats a worrying ratio. Six weeks ago the amounts of purchases and sales were about equal. Its the kind of news that should give investors pause. What insiders do with their own money is one of the stock markets best barometers. After all, who better than company executives know their own order books? Who knows the conditions in their industry better? You find insiders typically buying heavily at the market lows they did in 1987, in 1998, and they did during the financial crisis in 2008-9. (You also typically find them cashing out big-time at the peak).

 

MARKETS DESTROYED AROUND THE WORLD: Here's What You Need To KnowBusiness Insider

 

The Real Reason Behind the Market's Meltdown  Simon Maierhofer, On Thursday September 22, 2011, 11:01 pm

Was it just bad timing or did the Fed cause this two-day market meltdown?

Since Bernanke spoke yesterday the S&P (SNP: ^GSPC) lost as much as 80 points, nearly 7%. The Dow Jones (DJI: ^DJI) shed about 700 points, the Nasdaq (Nasdaq: ^IXIC) 150 points and the financial sector (NYSEArca: XLF - News) tumbled 7.7%. The VIX (Chicago Options: ^VIX) soared over 25%.

No doubt the Fed seems to have lost the touch that made QE2 a temporary 'success' (if success is measured exclusively by stock prices).

Bad Timing

But quite frankly, the timing of 'Operation Twist' was just plain bad. The market's fate was sealed even before Bernanke stepped on stage. Already back in August the ETF Profit Strategy Newsletter highlighted seven reasons why new lows are likely between September 6 and September 28.

In a special pre-FOMC announcement update on Tuesday night, the Newsletter confirmed its bearish outlook and recommended to short the S&P as soon as it breaks below 1,191. Why 1,191? Because it was important support composed of this week's pivot, Fibonacci support, the 20-day moving average and Monday's low.

Here are six reasons why new lows were likely and where and why stocks will bounce.

A Major M-Pattern (or Head-and Shoulders) Top

Since early 2011 the ETF Profit Strategy Newsletter has been expecting a major market top. The chart below shows a bearish multi-decade M-pattern (or sloppy head-and shoulders). The key question was were the right side of the 'M' would end.

The chart below was featured in an April 5 update along with the following commentary: 'In terms of resistance levels, the 1,369 - 1,382 range is a strong candidate for a reversal of potentially historic proportions.'

                                     https://www.etfguide.com//contributor/UserFiles/8/Image/5%20-%20April%203%20TF.jpg

RSI Divergence

There is one striking similarity between the October/November 2008, March 2009 and May/June/July 2010 lows. In all three cases the S&P reached an initial price low accompanied by an RSI (relative strength indicator) low. However, a more lasting low was not reached until the S&P recorded a new price low against higher RSI reading.

In other words there had to be a divergence between the S&P and RSI. The S&P and RSI both recorded their initial low on August 9. Now we are waiting for a new S&P low while RSI stays above its August 9 reading.

Seasonality

August, September, and October is the most bearish stretch of the year. September and October sport negative performance even in the pre-election year.

Sentiment

From S&P 1,370 on May 2 to S&P 1,258 on June 16, the S&P shed 112 points and sentiment measured by Investors Intelligence (II) and the American Association for Individual Investors (AAII) turned deeply bearish. The June 16 ETF Profit Strategy   update took that as a queue to buy (long positions were closed at S&P 1,340).

From S&P 1,353 on July 7 to S&P 1,102 on August 9 the S&P lost 251 points, yet the II sentiment poll registered the second most bullish reading since the first week of May. AAII and II polls are often considered the 'dumb money.' If the 'dumb money' views last Wednesday's low as a buying opportunity, the 'smart money' should be suspicious.

VIX Pattern

If you have the charting capabilities, take a moment and plot the VIX (Chicago Options: ^VIX) against the S&P for the month of September - November 2008 and April - July 2010. If you don't have the time you may simply look at the chart below.

                                    https://www.etfguide.com/images/PDNewsletter_Images/yahoo%20-%20vix%20pattern.gif

What What we've seen in 2008 and 2010 is that a VIX peak did not coincide with the S&P bottom. The S&P bottom actually occurred against a lower VIX reading. If this pattern continues, we will see lower lows.

The August 14 ETF Profit Strategy Newsletter update includes a detailed analysis of the VIX pattern, along with the time frame and target level for an expected turn.

The Script

Via more or less accidental chart surfing, I found a striking resemblance between the 2007 market top and the May 2011 top.  This moved me to state in the July 17 Profit Strategy update that:

'There is a similar trend line and a triple top above the trend line. A break below that trend line could be a precursor of bad things. Next week the trend line will be at about 1,262.'

The S&P sliced through that trend line on August 4 and fell an additional 12% within the next four days. A deeper analysis of this chart parallel also suggests new lows.

The Outlook

The market's performance over the last couple of days has validated the studies above. We are now waiting for new lows…’

 

 

Market Recap: China Falters, Banks Exposed, and Fed Causes Market to Plummet Wall St. Cheat Sheet, September 22, 2011, Hot Feature: U.S. Home Prices Down 3.3%Todays markets were down because:1) Fed. Markets plummeted today following dire remarks on the economy from the Federal Reserve. The news of slowing growth also pushed most commodities lower, including oil, gold, and silver, while only Treasuries moved higher as investors sought one of the few safe havens left. The Feds announcement of Operation Twist yesterday failed to instill much confidence in the economy, and few think the measures will be enough to reverse the economic downswing over the last few months. After all the anticipation leading up to the Feds decision, investors were left with the understanding that not even the Fed has the power to turn this thing around. 2) China. Through all the economic turmoil that has engulfed the globe over the last few years, China has been the one shining beacon of progress and growth. However, despite the fact that Chinas economy is still on track to grow 8.5% to 9% this year, its manufacturing sector has been contracting for the last three months now, according to HSBCs manufacturing PMI. There was a lot of concern over China because heretofore its been the one pocket of unstoppable strength in the global economy, said Paul Larson, chief equity strategist at Morningstar. If that stops and China becomes a drag on worldwide growth, it could have big implications here in the U.S. News that China might not be as infallible as once though had a host of popular Chinese stocks plummeting today, including shares of Sohu.com , Youku.com , RenRen , Sina Corp. , and Baidu.com , which fell nearly 11% today.3) Banks. After Moodys downgraded some of the nations top banks yesterday, investors are growing worried about the financial industrys exposure to the sovereign debt crisis in Europe. Not only were Bank of America , Wells Fargo , and Citigroup continuing to slide today after Moodys downgraded them, citing the unlikelihood that the government will step in should the financial sector find itself in a similar situation to that of 2008, but the entire sector fell on concerns that Moodys was right. Barclays , JPMorgan , Goldman Sachs , and Morgan Stanley were all heavy drags on the markets today. European banks were trading sharply lower for the same reason, with Frances SocGen and Credit Agricole falling 9.5% each, while Deutsche Bank and Credit Suisse also underperformed the markets. BONUS: Jobless Claims Continue in the Wrong Direction



Federal Reserve's Twist of Fate Forecasts a Waterfall Into Early Octoberat MinyanvilleEurope debt crisis, dire economic reports cause Dow plunge Sep 22nd, 2011 News (HousingWire) Live Blog: Market Meltdownat The Wall Street JournalEU officials expect Greece to default but stay in eurozone London Telegraph | There is a growing consensus among EU diplomats and officials that Greece will default while remaining inside the eurozone.Depressed As A Nation? 80 Percent Of Americans Believe That We Are In A Recession Right Now The Economic Collapse | According to a brand new Gallup poll, 80 percent of Americans believe that we are in a recession right now. Soros: US Is Already in Double-Dip Recession CNBC.com | Soros said he believed the United States was already experiencing the pain of a double dip recession.



Stocks: Don't Get All Comfortable Just Yet at The Wall Street Journal Brendan Conway Just as investors are coming out of their bunkers, S&P chartist Mark Arbeter says that the stock market is breaking down in what could be a very nasty prelude to the fourth quarter.He adds that we do not think it will be long before the August lows get taken out.The technician predicts that the S&P 500 will break through support at 1,110-1,120 to eventually meet its next support level around 1,020, or another 11% below Fridays levels.It appears that the next wave down has begun in earnest, and we recommend extreme caution at this point, he says.

 

 

Fed vs Market - Will Selling Pressure Overpower Operation Twist?   Simon Maierhofer, September 23, 2011, The Fed just unleashed a $400 billion package to boost the economy. To say the market didn't react favorably would be an understatement.

The Financial Select Sector SPDR (NYSEArca: XLF - News) greeted the program with an 8% haircut. The S&P (SNP: ^GSPC), Dow Jones (DJI: ^DJI) and Nasdaq (Nasdaq: ^IXIC) fell 4-6%. On the bright side, the yield of the 10-Year T-Note dropped another 0.242%, from one all-time low to the next.

Will 'Operation Twist' buoy stocks or will the market overpower the Fed's half-hearted effort? Believe it or not, but after some more suffering, I believe the Fed will eventually reap some (temporary) credit for this stick save (more about that in a moment).

Bernanke Must be Surprised

In his February 9, 2011 speech before the U.S. House of Representatives, Ben Bernanke was quick to take credit for the results of QE2: 'Since then (the onset of QE2), equity prices have risen significantly, volatility in the equity market has fallen. All of these developments are what one would expect to see when monetary policy becomes more accommodative.'

On February 9, the S&P closed at 1,320, the VIX (Chicago Options: ^VIX) at 15.87. Today the S&P is 13% lower while the VIX has soared a stunning 160%. Bernanke's credibility has tumbled somewhere between 13 and 160%.

Contrary to Bernanke's upbeat outlook, the ETF Profit Strategy Newsletter published the following chart just a week after Bernanke's comfy cozy assessment of QE2 and the stock market's reaction.

                       https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20M%20pattern.gif

The chart shows a giant bearish head-and shoulders or M-pattern. At the time, the Newsletter projected a market top at 1,382 - 1,385. The April 4 ETF Profit Strategy update refined the target range: 'In terms of resistance levels, the 1,369 - 1,382 range is a strong candidate for a reversal of potentially historic proportions.'

Sleep in the Bed You Made

Operation Twist - the Fed's latest concoction - became necessary because QE2 didn't stick. Banks (NYSEArca: KBE - News) graciously accepted the generous $600 billion donation, but despite the huge cash infusion, the Banking Index today trades 22% below its November 3, 2010 prices,  when QE2 was launched.

Will Operation Twist be More 'Successful' than QE2?

QE2 created $600 billion out of thin air while Operation Twist merely changes the maturities of the Fed's existing balance sheet.

Over the next nine months the Fed will sell $400 billion worth of short-term (3 years or less) Treasuries and use the proceeds to buy maturities ranging from 6 - 30 years. Maturing mortgage-backed securities (MBS) will be re-investing in MBS, not in Treasuries.

If you are wondering how this approach of transferring money from the left to the right pant pockets makes a difference, you've already found the reason for the post FOMC-announcement meltdown.

Wall Street considered the proposal half-hearted and the stated goal of lowering long-term interests unnecessary, especially considering that the yield on the 10-Year T-Note is already at a multi-decade low.

Range bound Trading with a Purpose

From July 21 - August 8 the S&P lost nearly 250 points. Nevertheless, the August 8 TF made clear that there will be another low and stated that: 'One of the conditions for a market bottom is lower lows against improving breadth. Breadth was horrible today and no lasting low was reached. What generally tends to happen within a major sell off is a period of time where stocks take a breather followed by the final leg down. This final leg sports lower prices but improving breadth.'

Support at 1,121 held and the S&P was due for a 'breather period.' The back and forth of the recent weeks qualifies as just that. It also shows that there's a method behind the market's madness.

Range bound trading lulls investors into a false sense of security and makes traders gun shy before pulling the proverbial rug out from underneath them.

In a special Tuesday's pre-FOMC decision update, the ETF Profit Strategy Newsletter pointed out that the down side risk remains much bigger than the up side potential and that the direction for XLF is down as long as it doesn't move above the 20-day SMA at 12.70 and last week's high at 13.04.

Connoisseurs of technical analysis will find the following chart of interest. The update brought out that percentR (a measure of relative strength) moved above 80 for the first time since late July. The chart below (featured in Tuesday's update) showed what happened the last two times percentR moved above 80 - stocks dropped.

                                             https://www.etfguide.com//contributor/UserFiles/8/Image/yahoo%20-%20spx%209%2020%2011.gif  

The actionable recommendation given was for aggressive investors to go short with a break below 1,191. Selling accelerated as soon as the S&P broke through the support at 1,191 and didn't stop until the S&P reached support at 1,121.

There were seven other reasons why I expected new lows (see August 14 and 21 update for a concise summary), one of them is seasonality. August, September, October is a bearish time of year, even during Presidential election years…’



Are We Japan Yet? No! But Closer!

 

More Pain Is Coming To Equities  http://regator.com/p/253227580/more_pain_is_coming_to_equities   By Penguin Capital Markets: ‘Run! That's what equity markets are screaming right now, and I have to agree. While markets have already dropped in reaction to the poor FOMC announcement, we've only scratched the surface of what could be another free-fall in stocks. The already significant drop in copper is a leading indicator that the recession. Look how the metal has just recently lost all its price momentum as of August.’

 

[video] Preservation of Capital Is (and should be, since much worse to come, the primary) Priorityat TheStreet.com

 

Taken to Task: Free Market Champions Go Begging for Bailouts (Reprise)The Daily Ticker Aaron Task Financial markets tumbled this week amid disappointment the Fed didn't do more and general disgust with the lack of action from European policymakers.

Which brings us to another installment of Taken to Task.

For all the talk about how traders love the free market and believe in the principles of unfettered capitalism, the folks on Wall Street can't seem to get enough of government bailouts.

After Ben Bernanke pledged to spend $400 billion on Operation Twist this week, I heard many more complaints about how the Fed didn't do ENOUGH vs. any chatter about how they've gone too far, are out of bullets and pushing on a string. That's so "first-half of 2011" before the stock market turned south, that is. (See: Fed Action Fails To Boost Animal Spirits: "Marginally Helpful," Says Former Fed Governor)

It seems the bold champions of free markets on Wall Street only like laissez faire capitalism when the markets are RISING.

This weekend, traders are hoping for some plan ANY plan to deal with Greece, whether it comes from the ECB, the IMF, the World Bank, Poseidon or Zeus. But nobody seems to be wishing to just let the chips fall where they may. Haircuts for bondholders? Write-downs for banks? Egads! The pain must be avoided at all costs! (See: Apocalypse Now? Markets Tumble as Europe Approaches "Tipping Point")

Of course, a generation of traders has been conditioned to believe the Fed or some other institution will come riding to their rescue if things get really dicey, or even just a little bit uncomfortable. So we can't blame them for taking on too much unhedged risk and (not-so) secretly hoping for yet another bailout, can we?

Just like there are no atheists in foxholes, the really are no libertarians on Wall Street. The only ideology traders believe in is making money and if that means more government intervention, bring it on! Someday, maybe, we'll get back to something approaching a free market. But if such a thing ever really existed, it was a long time ago in a galaxy far, far away.

 

China Slowdown Pushes Chinese Internet Stocks and VIEs Off a CliffWall St. Cheat Sheet 


Moody's downgrades 8 Greek banks ATHENS, Greece (AP)



European and US Economies Teetering on Weak Policy, Leadership at Minyanville Kerr Sep 23, 2011 ‘Keeping up with today's financial and economic news is akin to watching a typical reality TV spot.’

 

Global economy pushed to the brink Sep 23rd, 2011 News (Financial Times) — Time is running out to find a solution to the eurozone crisis and prevent another global recession, finance ministers warned on Friday, as they hinted that discussions were under way to boost the firepower of European rescue funds.Financial markets experienced another day of intense volatility as investors struggled to interpret an emergency statement from the Group of 20 leading economies, which met on the sidelines of the International Monetary Fund and World Bank meetings in Washington.…Gold continued to slide sharply and US oil prices traded below $80 a barrel, their lowest in more than a year. Shares rallied modestly in Europe and the US, accompanied by selling in government bonds and the dollar.[ http://www.ft.com/intl/cms/s/0/9bedaa82-e603-11e0-960c-00144feabdc0.html#axzz1YUm6X1iD  ]

 

CME raises margins for gold, silver, copper Sep 23rd, 2011 News  (MarketWatch) — The CME Group CME +0.00% , the parent company of the New York Mercantile Exchange, on Friday raised margin requirements for some gold, silver and copper futures contracts. Margins are money investors must put up to be able to trade and hold futures contracts. Initial requirements for gold’s benchmark contract rose 21% to $11,475 per contract, from $9,450 and maintenance margins climbed to $8,500 from $7,000 per contract. Initial requirements for silver’s benchmark contract rose 16% to $24,975 per contract, from $21,600 and maintenance margins climbed to $18,500 from $16,000 per contract.[source]PG View: It is likely that expectations of this margin hike factored into today’s sell-off.

Gold Plunges More Than $100 as Investors Sell Sep 23rd, 2011 News (Bloomberg) — Gold fell, capping the biggest two- day plunge since 1983, on investor sales following routs in global equity and commodity markets.More than $3.4 trillion has been erased from equity values this week, sending a global measure of shares into a bear market, on concern that governments are running out of tools to avert a recession. The Standard & Poor’s GSCI Index of 24 commodities fell to a nine-month low today. Gold has dropped 15 percent since reaching a record $1,923.70 an ounce on Sept. 6.“Gold has become the source of liquidity for global margin calls,” said Michael A. Gayed, the chief investment strategist at Pension Partners LLC. “Also, deflationary pressures are acting on gold.” PG View: We’ve seen very strong physical buying interest on this retreat. Savvy investors know from experience that deleveraging breaks provide buying opportunity. The dollar and bonds may be up for now, but most realize that they aren’t the true safe-havens that they once were, and such allocations are therefore unlikely to prove sticky.

Dow Sinks 6.4% for Week Sep 23rd, 2011 News (Wall Street Journal) — Fears of a possible Greek default and the U.S economy dipping back into recession pushed the Dow Jones Industrial Average to its worst weekly decline since the depths of the financial crisis.Stocks edged slightly higher on Friday, as a pledge from global officials to maintain financial stability alleviated some investor anxiety. The slim gains, however, failed to overshadow the market’s poor weekly performance.The Dow edged up 37.65 points, or 0.4%, to 10771.48. But the index, which plunged 675 points on Wednesday and Thursday, finished the week down 6.4%, its worst performance since the week ended Oct. 10, 2008. [source]

 

G20 vows support for the global economy Sep 23rd, 2011 News (Financial Times) — The Group of 20 leading economies pledged a “strong and co-ordinated” effort to stabilise the global economy in an attempt to calm tumbling equities markets spooked by fears of recession in the eurozone and a gloomy economic outlook in the US.Bowing to pressure from investors to take action, finance ministers from the G20 economies said in a communiqué issued late on Thursday that they would stop the European debt crisis from deluging banks and financial markets, and take the necessary steps to bolster the eurozone’s rescue fund and assist banks to boost capital reserves in line with new global regulations. The statement followed a day in which the equity markets suffered some of the biggest falls since the collapse of Lehman Brothers in 2008, as investors rushed to safety in a widespread sell-off.“We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required,” the group said in a statement. “We will ensure that banks are adequately capitalised and have sufficient access to funding to deal with current risks and that they fully implement Basel III along the agreed timelines.”[source]

 

Dollar gains driven by flight to safety Sep 23rd, 2011 News (Financial Times) — Risk aversion in equity and commodities markets drove the dollar higher this week as hopes for economic recovery were dealt another blow by the Federal Reserve’s latest assessment of US growth.The dollar climbed across the board on Thursday as investors sought safety and global equity markets tumbled with other risk assets, including industrial metals and oil. The latest catalyst for investors to flee for cover was the Fed’s statement on Wednesday that there were now “significant downside risks to the economic outlook”.[source]PG View: Should more accurately say “perceived” or “relative” safety.

 

Gold trades under $1,700, loses 4% Sep 23rd, 2011 News (MarketWatch) — Gold futures slid below $1,700 an ounce on Friday, losing more than 4% as turmoil in global financial markets continued and investors rushed to sell metals positions to raise cash. [source]

 

New York Fed re-monetized $0.930 billion in Treasury coupons in today’s QE2.5 operation. Sep 23rd, 2011 News

Morning Snapshot Sep 23rd, 2011 News (USAGOLD) Gold extended sharply lower in overseas trading, pushing below the $1700 level for the first time in 7-weeks, as the global asset rout continues. The dollar remains well bid, trading near 7-month highs, bolstered by flight out of stocks and out of the euro.The G20 vowed strong and co-ordinated support in their communiqué late yesterday, saying We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required. However, the absence of specifics did little to reassure markets. The market now looks to weekend IMF and World Bank meetings for guidance.Meanwhile, Congress is embroiled in yet another partisan battle, this time centered on a continuing spending resolution. The Republican controlled House passed a spending bill yesterday, but the Democrat controlled Senate has vowed to shoot it down. Failure to pass a resolution could result in a government shut-down next week. This is exactly the kind of behavior that promoted S&P to downgrade the US.

France business confidence falls to 99 in Sep, below market expectations, vs 105 in Aug; production outlook tumbles to -29.
Italy retail sales (sa) -0.1% m/m in Jul, below market expectations of +0.2%, vs negative revised -0.3% in Jun; -2.4% y/y.

 


Investors Lose Faith in Stocks LAURICELLA European nations, flirting with recession, can't agree on how to climb out from under their pile of debt. The U.S. is careening toward a budget fight that threatens to shut down the government. China's mammoth economy may be downshifting. And across the financial markets, a sea change is taking place. Investors are abandoning the time-tested "stocks for the long run" optimism that dominated since the late 1980s. Instead, there is a widening belief that the mess left behind by the housing bubble and financial crisis will be a morass to contend with for years. In a historic retreat, investors world-wide ...



Don't Call It (Much of) A Comeback at The Wall Street Journal John Shipman US stocks rebounded in a vigorous rally that comes after the markets worst week in almost three years.It would be disingenuous to suggest these gains were fueled by any real tangible progress on the European debt mess; multiple sharp spikes higher during the day suggest a combination of short covering, end-of-month portfolio window dressing and dead-dog bounce…’

 

 

End of Quarter Price Mark-Ups; Daves Daily   http://www.thestreet.com/story/11260606/1/end-of-quarter-price-mark-ups-daves-daily.html  Dave Fry  9-27-11 All you need do is view the last week of June 2011, the previous quarter end, and you'll note a similar quarter end jam-job. That week featured little bullish news to account for that market rise. And, this week all we have is "hope" and some elegant press releases which amount to nothing without specific action. Most of the so-called "euro zone fix" seems "iffy" and not clearly articulated beyond the "we must do something" mandate. Germans are particularly obstinate over their share of the burden. They have a parliamentary vote on the issue on Thursday. Chancellor Merkel's coalition may be falling apart. Greeks don't like hardly any of the sacrifices they need to make and social unrest is a given. I'll just repeat what was noted in yesterday's commentary: "DeMark weekly 9 "buy to close short positions" littered the European equity and U.S. bond landscape. With global equity correlations over 95% and these indicators being reliable, we saw immediate rallies. If bulls can continue this rally throughout the week fees for portfolio managers will be less negatively affected.  Sure it's cynical to say but it's also illegal to do. Who's gonna stop 'em? …’ [ Isnt that the point! Nobodys stopped them nor prosecuted them for their nation-destroying frauds in the trillions; not the dirty handed and compromised / complicit SEC nor DOJ, nor wobama despite false promises to the contrary, etc.. ]

 

 

Split opens over Greek bail-out terms Sep 27th, 2011 15:37  News (Financial Times) A split has opened in the eurozone over the terms of Greeces second 109bn bail-out with as many as seven of the blocs 17 members arguing for private creditors to swallow a bigger writedown on their Greek bond holdings, according to senior European officials.The divisions have emerged amid mounting concerns that Athens funding needs are much bigger than estimated just two months ago. They threaten to unpick a painfully negotiated deal reached with private sector bond holders in July.Because of the recent economic downturn and Greeces slow implementation of austerity measures, officials estimate Athens funding needs over the next three years have grown beyond the 172bn forecast this summer.[source]

PG View: Missed numbers out of Greece? Say it isnt so. How far beyond 172 bln are we talking here? Does any number they give have any meaning? The funding needs when the last deal was cut back 0n 21-Jul where 109 bln, since then Greeces needs have exploded about 60%or more! No sane investor would throw more money into this sinkhole of unknowns.

 

SHILLER: House Prices Probably Wont Hit Bottom For Years Sep 27th, 2011  News (BusinessInsider) The July numbers for the most widely followed measure of house prices, the S&P/Case-Shiller Index, were released this morning.The numbers werent terribleon a seasonally adjusted basis, July was basically the same as Junebut one of the creators of the index, Professor Robert Shiller of Yale University, isnt taking much solace in them.The economy has deteriorated significantly since July, Professor Shiller observes, and he suspects that the housing market has followed suit.[source]

Roubini: U.S. in Throes of Economic Contraction Sep 27th, 2011 News (Bloomberg) Most advanced economies are lapsing back into recession while the U.S. is already in the throes of an economic contraction, according to Nouriel Roubini, co- founder and chairman of Roubini Global Economics LLC.The way I see the global economy, I think were entering into a recession again in most advanced economies, Roubini said in a panel discussion today at the Bloomberg Dealmakers Summit in New York. I think were already into one in the U.S. based on the hard and soft data same with most of the euro zone, same with the United Kingdom. [source]

 

 

Mark Hulbert, MarketWatch CHAPEL HILL, N.C. (MarketWatch) [ Of course Mr. Hulbert is correct in pointing out the folly of what’s causing the meltdown. Indeed, he might even borrow from the homespun wisdom of the mama of that stellar investigatigative reporter, formerly of SNL fame, Rosanne Rosanna Dana, who reminds us ‘ It’s always somethin’ ‘ . Indeed, Rosanne; it is always somethin’… just not the somethin’ that the frauds on wall street et als say it is. The fact is the markets are grossly over-valued courtesy of a myriad of fraudulent tools; from computer-prgrammed high-frequency trade churn-and-earn scams, to ever more worthless funny money, to blatant misrepresentation / fudged numbers, etc.. Will you be left holding their worthless bag of hot potatoes? Will you be their fool … again … in this suckers’ market? ]  — ‘Greece ate my homework. Not only that, if you believe the financial headlines, Greece is responsible for almost every financial ill that has beset the investment arena over the last 18 months. I say it’s time the headline writers came up with a new story to “explain” what’s happening to the stock market.

Consider last week, for example, when investors’ concern about a possible Greek default supposedly caused the Dow Jones Industrial Average DJIA +1.33%   to lose 738 points and the combined market capitalizations of all publicly traded stocks in the U.S. to lose $865 billion.
How could Greece have been the cause of that, when Greece’s total sovereign debt (counting both government debt and from the country’s monetary authorities) amounts to $393 billion, according to the International Monetary Fund? It doesn’t make sense, even if Greece’s debt were completely owed to U.S. banks — which it most definitely is not.

Blaming Greece makes even less sense when we focus on more than just the last week. Since the stock market high this spring, for example, U.S. stocks have lost approximately $2.5 trillion in market cap. Once again, the prime suspect is concern over Europe’s debt situation.

Yet the $2.5 trillion loss is more than twice the total debt (from both the government and the monetary authorities) of Greece, Spain and Portugal combined — the three PIIGS countries considered to be most in danger of default.

Why, then, do so many investment commentators persist in telling the story that Europe’s debt situation is to blame? Because it’s a convenient and easy explanation to fall back upon, especially in the face of a market that is otherwise acting so inscrutably.

How many of us have the guts to say that we don’t really know why the market went up or down? Rather than admitting that, we instead tell stories — akin to Rudyard Kipling’s “Just So” stories, such as the one about how the leopard got his spots.

Blaming Greece is only the latest example of this. My perennial favorite is the oft-used explanation that the market went up (or down) on a given day because there were more buyers than sellers (or more sellers than buyers). This is just intellectual laziness, of course: During any trading session there are always the same number of buyers and sellers.

Investors need to let Greece rest in peace. That country has enough problems of its own without being asked to take responsibility for ours as well.’

 

 

 

Bernanke calls unemployment a national crisis   28 Sep 2011 Fed chief Ben Bernanke said Wednesday that the nations weak labor market was a national crisis [ Duh! No-recession-wall-street-lovin-helicopter bens done it again! brilliant description of unfortunately what already is thanks in large part to his wall (fraud) street largess / welfare in the form of QEs, etc..]

 

 


Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Moneynews) ‘The Aftershock Survival Summit is a gripping, no-nonsense presentation that’s quickly becoming a financial beacon in an economic tsunami.

Featuring an exclusive interview with famed economist and best-selling author Robert Wiedemer, this disturbing presentation exposes harsh economic truths along with a dire financial warning — a prophetic message that’s spreading across America like wildfire.

But it’s not just the grim predictions that are causing the sensation; rather, it’s the comprehensive blueprint for economic survival that’s really commanding global attention.

 

It offers realistic, step-by-step solutions that the average hard-working American can easily follow; millions have already heeded its warnings and are rapidly sharing the Aftershock Survival Summit throughout the Internet. To see it for yourself, simply click here.

The overwhelming amount of feedback to publicize the presentation, initially screened for a private audience, came with consequences as various online networks repeatedly shut it down and affiliates refused to house the content.

“People were sitting up and taking notice, and they begged us to make the Aftershock Survival Summit public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog, “but unfortunately, it kept getting pulled.”

The controversy stems from direct allegations that the people in Washington have failed miserably. They include former Federal Reserve Chairman Alan Greenspan and current Federal Reserve Chairman Ben Bernanke, tasked with preventing financial meltdowns and keeping the nation’s economy strong through monetary and credit policies.

At one point, Wiedemer even calls out Ben Bernanke, saying that his “money from heaven will be the path to hell.”

This wasn’t the first time Wiedemer’s predictions hit a nerve. In 2006, he and his team of economists accurately predicted the four-bubble meltdown in the housing, stock, private debt, and consumer spending markets that almost sunk America.

Regardless of his warnings and survival advice, Bernanke and Greenspan were not about to support Wiedemer publicly, nor were the mainstream media.

As the warnings went unheeded, and America suffered the consequences, Wiedemer penned his latest prophetic work, “Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown.”

Once again his contrarian views ruffled feathers and just before the book was publicly released, the publisher yanked the final chapter, deeming it too controversial for newsstand and online outlets such as Amazon.com.

Despite appearances, “Aftershock” is not a book with the singular intention of scaring people, explains DeHoog. “The true value lies in the sound economic survival guidance that people can act on immediately. I was able to read the original version with the ‘unpublished chapter,’ and I think it’s the most crucial in the entire book. After contacting Wiedemer, we [Newsmax] were granted permission to share it with our readers. In fact, viewers of the Aftershock Survival Summit are able to claim a free copy of it.”

In the Aftershock Survival Summit, Wiedemer reveals what the publisher didn’t want you to see. Citing the unthinkable, he provides disturbing evidence and financial charts forecasting 50% unemployment, a 90% stock market collapse, and 100% annual inflation.

“I doubted some of his predictions at first. But then Robert showed me the charts that provided evidence for such disturbing claims,” DeHoog commented.

Editors Note: The Aftershock Survival Summit shows the exact same charts. See them for yourself.  http://w3.newsmax.com/a/aftershockb/video.cfm?PROMO_CODE=CD97-1   … ‘


Read more: Aftershock Survival Summit Predicts the Unthinkable
Important: Can you afford to Retire? Shocking Poll Results



 

Prepare for Lehman Brothers Part 2  MoneyShow.com Sep 15, 2011 ‘Three years ago, Lehman collapsed. Now, a new Lehman-like financial crisis is coming -- this time involving the debt of governments and European banks.’

 

 

 

 

Arguments for Being in the Crash Camp   Conor Sen Sep 28, 2011 ‘This has been the sixth-most volatilite September since 1950. The only years more volatile? 2002, 2001, 1974, 1998, and 2008, years which included two major stock market bottoms (1974 and 2002), 9/11, Long Term Capital Management, and the fall of Lehman Brothers. Despite the crazy volatility, it is my contention that nothing meaningful has really happened this month. As we know, the reason for the volatility is primarily because of the ongoing sovereign debt crisis in Europe. And as news events of today confirm, we remain no closer to resolution here, even as stress indicators continue to deteriorate.

For example, while markets were surging today, German finance minster Wolfgang Schaeuble was out saying basically the same things he's been saying all along, that Germany is opposed to further bailouts or fiscal stimulus, and Europe's periphery should resolve its problems via fiscal consolidation.

Later in the day, as the Financial Times reported, problems were surfacing regarding Greece's latest bailout package:

"A split has opened in the eurozone over the terms of Greece’s second €109bn bail-out with as many as seven of the bloc’s 17 members arguing for private creditors to swallow a bigger writedown on their Greek bond holdings, according to senior European officials."

What We Know:

Nothing's fixed and we're no closer to a fix. Bad news.

The good news is if history is any guide, we're likely no more than two to three weeks away from mercifully putting in a bottom for the rest of the year if we haven't already. Looking at those five years with Septembers more volatile than this one, the September-December low occurred on 10/3/74, 10/8/98, 9/21/01, 10/9/02, and 11/21/08 (though a major low in internals occurred on 10/10/08 and if you had bought that low you would've broken even through year-end). For whatever reason early-mid October is when final flush-outs tend to occur. Unfortunately this means the European crisis will most likely be the cause of yet more systemic pain in 2012
In a way these companies benefit from the current macro environment because it keeps valuations depressed and interest rates low, allowing them to borrow money cheaply and buy back more stock than they'd be able to at non-stressed valuations…’

 



Short-Selling Bans Extended, Stocks Fall Harder at The Wall Street Journal

 

Now's Not the Time to Take on Equity Market Exposure at Minyanville Erik Swarts Sep 28, 2011 ‘This is obvious when you consider the respective pieces that need to come together to resolve the sovereign debt crisis, and apply technical analysis to the charts.

 

[video]Buying on Rumor - Prepare For The Selling On NewsTheStreet.com TV

 

The Biggest Borrowers From Uncle Ben Bernanke at Forbes It comes as little surprise that Americas biggest banks are among the heaviest borrowers from the Federal Reserves unprecedented liquidity facilities during the financial crisis that doled out more than $1.2 trillion. An analysis of thousands of documents by Bloomberg News shows just how big the outlays to some of the worlds largest financial firms really were, including the 20 that follow and saw their outstanding loans peak at more than $25 billion { Read Full Story http://www.forbes.com/sites/steveschaefer/2011/08/23/morgan-stanley-leads-biggest-borrowers-from-uncle-ben-bernanke }

 

 

THE GREATEST SHOW ON EARTH  September 29, 2011   http://www.etfdigest.com

http://albertpeia.com/circuswallstreet.jpg

Yes, Ive used this image before but it befits the past two months of frenetic two-way trading. Thursday markets moved sharply higher early on news of better Jobless Claims and GDP data plus the positive vote from the German parliament regarding funding their portion of the euro zones EFSF (European Financial Stability Facility).

Algos jumped on the headlines which is what theyre programmed to do. They dont look under the hood for details since given their momentary focus, facts dont matter”—not at least right away.

A closer look inside Jobless Claims data is the consistent revisions for higher previous claims. This makes current reports generally seem better by comparison. Further, the BLS states with this report the significant impact of seasonal factors skewing the report. The figures used to adjust the data typically look for a drop in un-adjusted claims heading into the end of a quarter. For last week however, the seasonal adjustment factors predicted unadjusted claims would rise 0.4 percent per the Labor Department. Instead, unadjusted applications followed the typical patterns at the end of quarters and plunged 8.2 percent, leading to the even bigger drop in the adjusted data.

Below is an analysis of the GDP report directly from the always reliable and probative Consumer Metrics Institute.

The Bureau of Economic Analysis's (BEA) third estimate of second quarter 2011 U.S. Gross Domestic Product (GDP) was reported to be 1.34%, an upward adjustment from their previous data. The new growth number was .36% higher than the number reported last month for the same quarter. It is important to remember that this new monthly report covered the same time periods as the previous reports -- meaning that this monthly set of changes in the numbers was caused by late arriving data at the BEA and not actual month to month improvements in the economy.

Among the items notable in the report:

-- Aggregate consumer expenditures for goods was still reported to be contracting during the second quarter, dragging the overall growth rate of the economy down by a -0.38% rate. This is actually marginally weaker than the numbers in the earlier reports.

-- Consumer expenditures for services grew slightly during the quarter, at an improved (although still very sluggish) 0.87% annualized growth rate. But the adjustment in this single line item represented the bulk of the improvement in the headline number.

-- The growth rate of private fixed investments was only slightly higher, at a weak annualized 1.07% rate.

-- Inventories are still reported to have been drawn down during the quarter, indicating that production has slowed faster than demand. The revised estimate of inventory levels caused the overall growth rate to be reduced by a -0.28% annualized rate.

-- Total expenditures by governments at all levels was still reported to be shrinking, reducing overall economic activity at a -0.18% annualized rate.

-- Exports strengthened slightly relative to the earlier report, raising the contribution that they made to the overall GDP growth rate to 0.48%.

-- Imports decreased somewhat when compared to the earlier report, and are now reported to be removing -0.24% from the growth rate of the overall economy. The combination of the revisions in the import and export numbers contributed about half of the upward changes in the published headline number.

-- The growth rate of "real final sales of domestic product" was revised upward to an annualized 1.62%, as the result of the now higher consumer services figures, slightly improved foreign trade and the increased draw-down of inventories.

-- Working backwards from the data tables, the effective "deflater" used by the BEA to offset the impact of inflation was 2.58% -- still substantially below the rates reported by their sister agencies. Substituting the line-item appropriate (CPI or PPI) current inflation rate published by the Bureau of Labor Statistics (BLS) causes the "real" GDP to be contracting at a -0.73% annualized rate.

-- And using the same alternate BLS "deflaters" the real per-capita GDP can be shown to be contracting at a -1.45% annualized rate. Similarly, per-capita disposable income was contracting at a -0.92% annualized rate. These per-capita numbers are what impacts individual Americans and it is the real source of the frustration within the populace.

Not featured by the financial media beyond Bloomberg is Thursdays report and graph on their Consumer Comfort Survey which shows this index as back to 2008-09 levels. This is hardly encouraging.

http://albertpeia.com/comfort.jpg

Fed Governor Lockhart finds current jobless conditions perplexing and vexing according to this Bloomberg story. So if I have my synonyms and meanings right hes embarrassed and pissed-off which kind of disqualifies him from such a position.

Meanwhile back at Wall & Broad stocks as measured by the DJIA raced higher early by 260 points only to fall later by 45 points and then rally in stick save fashion to close 143 points higher. This really is the Greatest Show on Earth! The NASDAQ was lower by .43% led by semiconductor sectors (SMH) especially after a poor outlook from Advanced Micro Devices (AMD), down nearly 14%. Also there is still some lingering confusion over iPads from Apple (AAPL) versus Fire from Amazon (AMZN). Financials were higher which helped much of the bigger names rally although the rationale was difficult to determine.

Commodities, including precious and base metals, oil and grains were higher overall. The dollar was down slightly and bonds were stronger.

Volume was modest most of the day until the large stick save was put in place to end the session. Breadth per the WSJ was positive once again as quarter-end window dressing is in full swing.

http://albertpeia.com/929-1.jpg

 

Major U.S. Markets (5)
U.S. Market Sectors & ETFs (20)
Bonds (4)
Commodity & Currency ETFs (16)
International & Emerging Market ETFs (14)
$NYMO (1)
$NYSI (1)
$VIX (1)

 

The craziness continues for the clown act doing business as the Greatest Show on Earth. Its no wonder so many individual investors have fled markets. Between phony data and window dressing its hard to stick with the long-term program. Three bear markets in 11 years would be enough to turn anyone off. Now were not in a bear market yet but were frightfully close.

Friday brings the not so reliable U of Michigan Consumer Sentiment, Personal Income and Spending and the important Chicago PMI. Friday also will allow for more end-of-quarter window dressing.

 

[video] Trader: I'd Sell Into This Rally at TheStreet.com 

 

CEOs have the Blues About Business Prospects Wall St. Cheat Sheet 

 

 

Video: Wall Street Employees / Fraudsters Laugh, Drink Champagne as Protestors Rage Belowat Minyanville (Thu, Sep 29)

 

 

 

Housing Market Hasnt Bottomed : Mort Zuckerman - Peter Gorenstein ‘…"And they don't want to buy assets that are going down in price." That may be true, but there must be millions of consumers who look back on their subprime mortgage with regret.



NO COUNTRY FOR OLD MEN Dave’s Daily http://www.etfdigest.com September 30, 2011  ‘It’s probably not a “market” for men or women of any age at this point. Warren Buffett has put himself out there recently buying stock in Bank of America (BAC) and then suggesting Friday it might take 3-5 years for the company to clean things up. He also stated he’s received inquiries from European banks for a financial injection which isn’t a good sign. He’s also been highly visible averaging down buying shares in his own Berkshire Hathaway (BRK/A) with $5 billion in purchases already this quarter. He says he likes the president’s jobs bill although admitted to not knowing its details which is poor due diligence. He’s also unsure of just what Obama’s “Buffett Rule” means as it applies to incomes over $250K deflecting the level by talking about people making $50M or more. All this struck me as interesting and odd … So for stocks overall this is the worst performing quarter since 2008 when we were entering a bear market. Are we due for a repeat or is this just a continuation of the previous bear market? It gives us a sense of a 1930s like market which featured substantial bear market rallies. For the quarter the DJIA was down 12%, S&P 500 down 14.3% and Nasdaq Composite down 12.9%. European stocks in aggregate lost 17% …’



How to Navigate a News-Paralyzed Market  Simon Maierhofer, September 30, 2011, ‘… Here's my psychoanalysis of the market, which I believe is more accurate than my medical opinion. The market has one goal, one reason for 'living.' It's to separate as many people as possible from their money. He doesn't always win, but over the decades he's found the most effective ways to separate most from as much money as possible. He's got a tackle box full of baits and lures to bait and switch unassuming investors. The market is smarter than the collective of all investors and analysts because it knows at any given time what the collective 'Wall Street wisdom' thinks and does. If the market sees Wall Street is bullish, it will go down and vice versa. The market will not be told by the media what to do and laughs at assessments like the following from the media (taken from this week):

AP on Monday: 'Stocks jump on hopes for a Europe fix'

Reuters on Tuesday: 'Stocks pop on Europe hope'

AP on Wednesday: 'Stocks are closing lower, ending a three-day winning streak, as investors worry about Europe.'

Bloomberg on Thursday: 'Stocks advance on jobless claims' (since when does the market care about jobs anymore. Wasn't there any Greece news?) …’

 

Apple in a Dangerous Position; Bears Are Watching at Minyanville

90% of Americans say economy stinks

 

Protect your investments, what to look for next week.  Forbes ‘ Right now is not the time to worry about knocking the ball out of the park.  Lets focus on preserving your assets.  Today was end of the quarter and it was not pretty.  For the quarter end we were down about -14.31% on the S&P 500.  As for September, the S&P was down -7.21%, closing at 1131, down 5 points from were we closed Firday the 19th.  The week was extremely volatile; it has gotten to the point where Main Street does not feel safe in a long term asset allocation strategy…’

 

Don't Let Taxes Stop You From Selling Stocks at Forbes

 


Defensive Sectors Shine During Meltdown As Kodak Fades To Black at Forbes  …’

 

4 Market Signs Signaling Recession

 

Cyclical Sector ETFs Say It's the Economy, Stupidat The Wall Street Journal 

 

Japan Puts Cheapest Ever as Traders See Banking Lossesat Bloomberg

 

US incomes fall for first time in nearly 2 years

 

Moodys Lowers U.S. Lodging Industry Outlook as Economy Slows

 

 

Yield Spread Confirming Recession Call http://www.zerohedge.com/news/guest-post-yield-spread-confirming-recession-call Submitted by Lance Roberts of StreetTalk Advisors

Yield Spread Confirming Recession Call

Recession.   It is now becoming clearer, even to the mainstream media, that the "Big 'R'" is rapidly approaching, or already upon us.  Without further stimulus from the government the economy will continue its slide into negative growth.  Unfortunately, it doesn't look like the "Calvary" will be charging to the rescue anytime soon.   Bernanke, at this point has effectively punted to the Whitehouse for stimulative action.  The Whitehouse is embroiled in partisan politics which will keep any action from occurring until most likely after the next election.   This leaves the economy and the financial markets to their own devices, and much like kids without parental supervision, they are running amok.

I have been very vocal as of late commenting on the fact that a recession is fast approaching.   The trends of the economic numbers have all soured to the negative.   From manufacturing to personal incomes to sentiment they all are signaling a recession lay ahead.   Another confirming indicator of a recessionary track is the spread in yields between junk bonds and high quality bonds.  The chart here shows two different yield spreads.   The blue represents the difference in yields between AAA rated corporate bonds to BB rated bonds while the red represents the spread between 10-yr government treasuries to BB rated bonds.   The dotted horizontal lines represent when these spreads have signaled recessions in the economy.

When the economy is strong the spread between BB (Junk Bonds) and AAA Bonds or Government treasuries is much lower as the perceived risk of default on payment is lower.    In times of economic stress or recession the perceived risk of default or failure is much greater.   Currently, spreads at these levels are very indicative of economic stress and recessions.  The perceived risk of corporate failure is rising and spreads are widening as money leaves high risk bonds (driving interest rates higher) and moves to safer yielding bonds (keeping rates lower).   The wider the spread the harder it is for weak companies to access capital and corporate failures rise.  

On Friday, Lakshman Achuthan of the Economic Cycle Research Institute reviewed the weight of ECRI's research, observing "Now it's a done deal. We are going into a recession."

The spread in yields combined with our own research as well as that of the ECRI, which is a very conservative organization with calls generally way ahead of the consensus as we have repeatedly been, confirms that our views are most likely the correct one.

While the media tends to view the economy from one report to the next what is important is to understand the trend and the balance of the data on the whole.  Understanding the trend and balance will make you very unpopular with the rest of the world that consistently ops for the "glass half full" view  but will keep you from losing a lot of money in the long run.

John Hussman summed this view up well; "In contrast, good economists think about the economy as a system - where multiple sectors interact. We tend to use words like 'equilibrium' and 'syndrome' when we talk about economic data - emphasizing that the best signals involve a whole conformation of evidence, not one or two indicators, where the data - in combination - captures a particular signature of recession or recovery.

Look at how Achuthan described the situation on CNBC on Friday, and you'll see a good example of this sort of thinking:

'This is a done deal. We are going into a recession. We've been very objective about getting to this point, but last week we announced to our clients that we're slipping into a recession. This is the first time I'm saying it publicly. A broad range - this is not based on any one indicator - this is based on dozens of indicators for the United States - there is a contagion among those forward looking indicators that we only see at the onset of a business cycle recession.. These leading indicators, which are objective.. they have a certain pattern that they present in front of a recession, and that is in, that is in right now.'

'A recession is a process, and I think a lot of people don't understand that; they're looking for two negative quarters of GDP. But it is a process where sales disappoint, so production falls, employment falls, income falls, and then sales fall. That vicious circle has started. You're looking at the forward drivers of that, which are different indicators - there's not one - everything's imperfect. The Weekly Leading Index .. that is saying unequivocally, this is recession. Long Leading Index, which has a longer lead, is saying recession. Service sector indicators, non-financial services where 5 out of 8 Americans work, plunging. Manufacturing, going into contraction. Exports, collapsing. This is a deadly combination, we are not going to escape this, and it is a new recession.'

For investors, if you believe that current analyst estimates of forward operating earnings are correct, and you believe that the inappropriate bubble-era benchmarks for price-to-forward operating earnings are actually valid, and you've ignored all evidence that the Fed Model is spectacularly devoid of validity, and you believe that the only course for valuations is to move toward those misguided benchmarks regardless of what happens to Europe or the U.S. economy, then it's easy to believe that stocks will head higher.  For our part, we believe none of those things..."

We agree with John on this point.   These are points that we have written extensively on in the past.   In a low growth economic environment the persistent call for high growth rates in stock prices is dumbfounding.  History tells us that the corporate earnings, and ultimately capital appreciation, cannot grow faster than the economy for long.   Corporate earnings, and ultimately the prices paid for those earnings, are a reflection of the economy and not vice versa.

There is one final key point to all of this as it relates to the yield spread.   Investors face not only an oncoming recession here but also a probable sovereign default and recession in Europe.  The compounding of these factors translates into heightened credit risk here in the U.S. (as noted by credit spreads jumping  higher recently) and corporations do not borrow at the 10-year treasury rate.  They borrow from the bond market and the rising costs of borrowing due to rising credit risk impacts corporate profitability.  Expectations for earnings growth going into 2012 is still extremely high with current estimates sitting at an all-time record for the S&P 500 index next year.   The reality of that occurring is almost nil.   In turn, this means that prices will have to be adjusted for the reality of a recessionary economy which is why the average decline of stocks during a recession is about 33%.  

John Hussman summed our current stance up very well:  "Still, as always, we're data-driven, and there are possible combinations of evidence (not in hand at the moment) that could move us to a modestly or moderately constructive investment stance even in the context of broader economic risks. My impression continues to be that the best hope for a sustained advance (early on, probably only several weeks or a few months in duration) is from substantially lower levels, but we'll take our evidence as it comes. Suffice it to say that we remain defensive here, but are quite willing to shift our investment stance if the evidence supports that."   Well said.

 

 

Hold Your Enthusiasm ... This Is Still A Bear Market Rally    http://www.bullfax.com/?q=node-hold-your-enthusiasm-still-bear-market-rally, 10/06/2011 By StopAlerts:We have had three nice rally days, and call volume instead of put volume is dominant, but this is still a bear market rally, in our view. If you are buying specific stocks for specific long-term reasons, that is one thing, but if you are buying indexes it may be best to wait for more of a confirming price movement …’

 

Is a Recession Coming Next Year? Zacks  While the current economic data is not indicating we are back in recession, I find myself leaning more and more into the "recession in 2012" camp. [ This link is provided for the plethora of data / charts but misses the bigger picture of current data in the context of the fraudulent scam dollar debasement strategy of the fed and the inflationary impact of same so cheered by the frauds on wall street for the illusory effect of same. ]

 

[video] Caution Flag On The Rally TheStreet.com Ken Polcari of ICAP Equity warns investors to be careful with this rally, lows could be retested. 10/06/11

 


“The Prevailing Debate Among Economists and Historians is Whether the World Economy Faces the ‘Great’ Depression of the 1930s or the ‘Long’ Depression of the 1870s” Washington’s Blog | Economists Agree: We’re In a Depression.  Fitch cuts Italy, Spain ratings; outlook negative , Wall Street vs Reality: A Hopeless Tug-of-War?  http://symmetrycapital.net/index.php/blog/2011/10/wall-street-vs-reality-a-hopeless-tug-of-war  Are Wall Street strategists living in a bubble? [ The short answer is, ‘YES’! The long answer is your work is quite (closer to) correct (and worse when dollar debasement is factored in).]  According to our work, credit market, demographic, and leading economic  indicators are all pointing to a level of between 800 and 1,000 for the S&P 500 between now and 2012-2013.   http://www.stansberryresearch.com/pro/1108PSI9MOVD/PPSIMA06/PR

 

 

 

Wall Street vs Reality: A Hopeless Tug-of-War?  http://symmetrycapital.net/index.php/blog/2011/10/wall-street-vs-reality-a-hopeless-tug-of-war  Are Wall Street strategists living in a bubble? [ The short answer is, YES! The long answer is your work is quite (closer to) correct (and worse when dollar debasement is factored in).]  According to our work, credit market, demographic, and leading economic  indicators are all pointing to a level of between 800 and 1,000 for the S&P 500 between now and 2012-2013…’

 

Paulson's Big Fund Down 47%; Sept. Proves Dicey For Hedgiesat Barrons.com

 

 

Graham Summers Weekly Market Forecast (Dexia Now... Who's Next? Edition)    http://www.zerohedge.com/contributed/graham-summers-weekly-market-forecast-dexia-now-whos-next-edition

‘Things are getting truly desperate in Europe. I’d like to show just how bad they are by way of example: the Belgian bank Dexia, which is now in the process of being nationalized.

For starters, Dexia had 566 billion euros in debt and 19 billion euros in equity as of the end of 2010. Right off the bat, that’s a leverage ratio of 29 to 1. Lehman Brothers was leveraged at 30 to 1 when it collapsed.

Now consider that Belgium’s entire GDP is just 348 billion euros. Dexia has 566 billion euros in assets. Of this 352 billion are loans. Put another way, Dexia’s loan portfolio alone is larger than its home country’s entire economy.

AND THIS BANK PASSED THE STRESS TESTS.

Suffice to say, Europe’s banking system is in far FAR worse shape than anyone over there is admitting. The stress tests were complete and total fiction. And the market is starting to figure this out.

 

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-2_1.png

 

Small wonder then that had both the IMF and the Bank of England have recently warned that the world is facing a “financial meltdown” and “the worst financial crisis in history.”

 

Ben Bernanke issued his own statement of doom last week as well, stating that his precious recovery is “close to faltering.” For a guy who’s spent TRILLIONS trying to create a recovery to admit things aren’t working out ought to give you an idea of just how bad things will be getting in the near future.

Indeed, stocks were rejected last at a descending trendline from the July top.

We should have at least gotten a bounce to the 38.2% retracement (1,200 on the S&P 500). So if the market fails to get there and simply rolls over here, then we’re going DOWN in a big way FAST.

 

http://www.zerohedge.com/sites/default/files/images/user20289/imageroot/2011/09/sc-1_5.png

 

Here is the reality of the financial system today: 

§  The European banking system is facing systemic collapse.

§  The US economy has rolled over and is in a confirmed double dip in the context of a larger DE-pression.

§  The Central Banks and regulators have admitted we are peering into the abyss and they have no clue what to do.

 Yes, I believe that before this mess ends, the financial system as a whole will have collapsed. What's coming is going to make 2008 look like a joke.

If you have yet to prepare yourself for what’s coming, now is the time to do so. Whether it’s by moving to cash and bullion, opening some shorts, or simply getting out of the markets altogether, now is the time to be preparing for what’s coming (remember, stocks took six months to bottom after Lehman… and that was when the Fed still had some bullets left to combat the collapse).

And if you’re looking for specific ideas to profit from this mess, mr Surviving a Crisis Four Times Worse Than 2008 report can show you how to turn the unfolding disaster into a time of gains and profits for any investor.

Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).

Best of all, this report is 100% FREE. To pick up your copy today simply go to: http://www.gainspainscapital.com and click on the OUR FREE REPORTS tab.

Good Investing!

Graham Summers

PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years or the best most profitable strategy for individual investors looking to profit from the upcoming US Debt Default, my reports covers it.’

FINANCIAL CRISIS

"ROUND TWO" SURVIVAL GUIDE THIS BEAR MARKET IS NOWHERE NEAR OVER. Since its March 10 low of 666 in 2009, the S&P 500 rally has been almost unstoppable. Pundits and media commentators alike have taken this to mean that the bear market is over and that stocks should once again be the primary asset class for investors. None of them knows what they’re talking about. Over the last 30 years, the US has built up record debts on a personal, state, and national level. Consumers thought they were financially stable so long as they could cover the interest payments on their credit cards, states created program after program few if any of which they could afford, and the Federal Government issued $30-50 trillion in debt and liabilities (counting Social Security and Medicare). This all came to a screeching halt when the housing bubble (arguably the biggest debt bubble in history) imploded in 2007. Since that time, stocks have staged one of their worst years on record (2008), one in five us mortgages has fallen underwater (meaning the mortgage loan is worth more than the home itself), and some trillions in US household wealth has evaporated. These issues seem to be distinct, but in reality they all stem from a debt problem. And as you know, there is only one legitimate way to deal with a debt problem: Pay it off. However, instead of doing this, the Feds (the Federal Reserve, Treasury Dept, etc.) have been producing EVEN MORE DEBT. Here’s a brief recap of their moves thus far: • The Federal Reserve cuts interest rates from 5.25‐0.25% (Sept ’07 today) • The Bear Stearns deal/ Fed buys $30 billion in junk mortgages (March ’08) • The Fed opens various lending windows to investment banks (March ’08) • The SEC proposes banning shortselling on financial stocks (July ’08) • The Treasury buys Fannie/Freddie for $400 billion (Sept ’08) • The Fed takes over AIG for $85 billion (Sept ’08) • The Fed doles out $25 billion for the auto makers (Sept ’08) • The Feds’ $700 billion Troubled Assets Relief Program (TARP) (Oct ’08)

• The Fed buys commercial paper (nonbank debt) from nonfinancials (Oct ’08) • The Fed offers $540 billion to backstop money market funds (Oct ’08) • The Feds backstops up to $280 billion of Citigroup’s liabilities (Oct ’08). • Another $40 billion to AIG (Nov ’08) • The Fed backstops up $140 billion of Bank of America’s liabilities (Jan ’09) • Obama’s $787 Billion Stimulus (Jan ’09) • The Fed’s $300 billion Quantitative Easing Program (Mar ’09) • The Fed buying $1.25 trillion in agency mortgage backed securities (Mar ’09 ’10) • The Fed buying $200 billion in agency debt (Mar ’09’10) • Cash for Clunkers I & II (JulyAugust ’09) And that’s a BRIEF recap (I’m sure I left something out). In a nutshell, The Feds have tried to combat a debt problem by ISSUING MORE DEBT. They’re pumping trillions of dollars into the financial system, trying to prop Wall Street and the stock market. They’ve managed to kick off a rally in stocks… But they HAVE NOT ADDRESSED THE FUNDAMENTAL ISSUES PLAGUING THE FINANCIAL MARKET. Stocks are headed for another Crash, possibly as bad as the one we saw in October November 2008. As you know, that Crash wiped out $11 trillion in household wealth in a matter of weeks. There’s no telling the damage this Second Round will cause. The Feds have thrown everything they’ve got (including the kitchen sink) at the financial crisis… and things are fundamentally no better than they were before: most major banks are insolvent, one in five US mortgages is underwater, and the stock market is being largely propped up by in‐house trading from a few key players (Goldman Sachs, UBS, etc). Make no mistake, we are rapidly headed for ugly times in the financial markets. The time to prepare yourself is NOW! And I’ve located several investments that will not only protect your portfolio… they’ll also help you turn a profit when this “house of cards” we call a market rally comes crashing down. I’ve detailed all of them in this report, The Financial Crisis “Round Two” Survival

Guide.

Two Ways Stocks Pay: Inflation and Dividends Before we get into the specific investment suggestions, it’s important to take a big picture of stocks as an asset class. The common consensus is that stocks return an average of 6% a year (at least going back to 1900).

However, a study by the London Business School recently revealed that when you

remove dividends, stocks’ gains drop to a mere 1.7% a year (even lower than

the return from longterm

Treasury bonds over the same period). Put another way, dividends account for 70% of the average US stock returns since 1900. When you remove dividends, stocks actually offer LESS reward and MORE risk than bonds. If you’d invested $1 in stocks in 1900, you’d have made $582 with reinvested dividends adjusted for inflation vs. a mere $6 from price appreciation. So as much as the CNBC crowd (and out serial bubble blowing Fed Chairman Ben Bernanke) would like to believe that the way to make money in stocks is buying low and selling high, the reality is that the vast majority of gains from stocks stem from dividends. The remaining gains have come largely from inflation. Bill King, Chief Market Strategist M. Ramsey King Securities recently published the following chart comparing REAL GDP (light blue), GDP when you account for inflation (dark blue), and the Dow Jones’ performance (black) over the last 30 years. What follows is a clear picture that since the mid-70s MOST of the perceived stock gains have come from inflation.

Which brings us to today. According to official data, the S&P 500 is currently trading at a Price to Earnings (P/E) ratio of 20 and yields 1.7%. In plain terms, stocks are expensive (historic average for P/E is 15) and paying little. In other words, there is little incentive, other than future inflation expectations, for owning stocks right now.

With this in mind, now is the time to be pruning your “long” holdings. We’ve had a spectacular run in stocks since the March 2009 low and the likelihood of this continuing much longer is relatively slim. Running Out of Buyers By most historic metrics, the market is showing signs of a significant top. Here are just a few key metrics: 1) Investor sentiment is back to super bullish autumn 2007 levels. 2) Insider selling to buying ratios are back to autumn 2007 levels (insiders are selling the farm). 3) Money market fund assets are at 2007 levels (indicating that investors have gone “all in” with stocks). 4) Mutual fund cash levels are at a historic low. This final point is key. Mutual funds are the “big boys” of the investment world. If they have become fully invested in the market, this means there are few buyers left to push stocks higher. This is evident in the fact that every time mutual fund cash levels dropped, stocks collapsed soon after (see chart below).

http://home.comcast.net/~RoyAshworth/Mutual_Fund_Cash_Levels/Mutual_Fund_Cash_Levels.htm

In plain terms, the odds are high that a Top is forming in stocks. With that in mind, if your portfolio is heavily invested in stocks, now is a time to be taking some profits. If you can, consider moving a sizable chunk into cash. The market is extremely tired and the systemic risks underlying the Financial Crisis are in no way resolved. With investor complacency (as measured by the VIX) back to pre‐Crash levels, the Fed withdrawing several of its more significant market props, and low participation coming from the larger institutions, this market is ripe for a serious correction. I’m not saying this will immediately happen. But at some point there will be a new round to the Financial Crisis. When that happens, we WILL have another Crash. Indeed, it is quite possible that stocks are making a VERY significant top, so being heavily invested in stocks going forward doesn’t make much sense. Take some money off the table. If you need a place to put it, I suggest physical cash or Gold/ Silver bullion. If You MUST Stay Long, Shift to Quality If you DO have to stay invested in stocks, now is the time to be shifting out of junk into quality. The market rally from March 2009 has largely been lead by junk companies (financials, retailers, etc). Meanwhile, quality has lagged dramatically. As an example, let’s compare the performance of Coke (KO) to Bank of America (BAC). KO is one of the best, most profitable brands in the world. The competitive moat around this business is extraordinary and it remains one of the most easily recognized franchises on the planet. You can drink six glasses of Coke a day and still enjoy it the next day. That quality is almost nowhere to be found in any other food/ beverage on the planet: even chocolate would get old after six bars a day. BAC on the other hand has swallowed Countrywide Financial AND Merrill Lynch’s garbage assets. It is effectively insolvent based on its derivative exposure alone (the company has derivatives equal to 3,000% of assets). BAC’s balance sheet is like an open sewer and without serious government intervention the company would not even exist right now. And yet, BAC’s stock has risen nearly 200% since the March ‘09 lows… while KO is up less than 50%.

This relationship works to the downside as well. What I mean is that when stocks come unhinged, Quality (Coke) then outperforms Garbage (Bank of America) hands down.

So, if you HAVE to remain invested in stocks to the long side for whatever reason, now is the time to be moving into high quality companies. This means finding companies with low debt, lots of cash, strong results (KO actually GREW revenues in 2008), and significant competitive advantages. Also, and this is critical, look for companies with strong balance sheets: companies that will still EXIST if there’s another Crisis. Depression or no, people will still drink soda, alcohol, smoke cigarettes, and need medicine. I’ve compiled a list of companies you should consider if you need to remain involved in stocks going forward: Company Symbol Sector Price/ Cash

Flow

Dividend

Yield Coke KO Soft Drinks 15 3.2%

Budweiser BUD Alcohol 14 N/A J&J JNJ Medicine 10 3.02% WalMart WMT General Retail 8 2.16% Exxon Mobil XOM Oil 11 2.51% You’ll note that most of these companies pay decent dividends (compared to the S&P 500’s 1.7%). This is critical going forward. With stocks overvalued, you want to make sure you’re at least getting paid for remaining involved in the market. However, there is an added bonus to owning Quality stocks right now. Because this market rally has largely been dominated by Garbage stocks, Quality companies like Coke have not yet risen to extreme valuations. Thus, you can still buy them at relatively cheap levels (less than 15 times cash flow). So, in a sense, they are a good investment based on pricing as well. I want to stress that these investments are only if you HAVE to stay in stocks for some reason. If there is another collapse these companies will fall like everything else. However, they will likely fall less than the rest of the market (see the chart comparing Coke and the S&P 500 below).

source: Yahoo Finance So while I do not expect these positions to make a lot of money now (these are not short-term trades), they should shelter you from losing too much money should another Crash hit. Indeed, if the market DOES collapse and these companies fall 10- 15% across the board (while the market falls 30%+) I would consider these investments even MORE attractive than they are today. Let me explain. Volatility can either hurt you or be your friend. Most people would sell a position if it fell 20-30%. This is wise if you’re investing based on momentum. However, if

you’re investing based on value, then doing this is completely antithetical to attaining high returns. Consider Coke. Let’s say tomorrow Coke collapsed from $55 to $25 per share. Most investors would panic and sell. I, on the other hand, would be buying greedily. Why? Because Coke’s business has a fundamental value. Even during a Financial Crisis and Depression, people will continue to drink soda. So the opportunity to buy Coke at $25 a share (which would be 7-8 times cash flow) would be truly an extraordinary opportunity. Indeed, from an income perspective alone, the opportunity here would be fantastic. Consider that in 2009, Coke paid out $1.76 in dividends. With shares at $55, this means a dividend yield of 3.2% (roughly three times what you’d get by leaving your money in a savings account). However, if Coke shares fell to $25, that $1.76 suddenly becomes a 7% yield

($1.75/ $25.00). That’s a heck of a return from an income perspective. Even if

globally the world entered a sharp Depression and Coke’s income fell by 30%,

pulling its payouts down to $1.23, you’re still looking at a 5% yield. Indeed, companies like Coke offer the potential of REAL value should their share prices drop. Their fundamentals almost ALWAYS outperform investor sentiment. What I mean by this is that should there be another Collapse, Coke’s share price will almost certainly fall MORE from its current levels than Coke’s cash payouts or income will from theirs. During 2008, Coke shares fell 30% or so. However, Coke actually INCREASED its dividend that year. Anyone who bought Coke in October 2008, now collects a 4% yield on their shares (four times what he or she would get from a bank account). This is why companies like Coke remain so strong during times of Crisis. With the FDIC broke and most US banks insolvent, investors desperately need a place to park cash that will still EXIST in a few years. Companies like Coke are a reasonable alternative to a savings account in the sense that you’re paid a higher yield for your deposit (now 3%, but 5% or higher if Coke shares plunge). Of course, because Coke is a stock, you can lose 1015%

or more if shares drop and you sell. In a Crisis, plain old cash will outperform just about anything.

This is why I’ve suggested moving money to cash, if you can. It’s also why I

suggested buying Coke and the other companies listed above only IF you HAVE

to be in stocks right now.

Catastrophe Insurance: Trades For When the Collapse Hits

Now is also the time to be taking out some “Catastrophe Insurance” by compiling a list of trades to make once stocks begin to collapse. Let me be clear, these are not

trades that you’ll make right now… these are trades you’ll make WHEN stocks

collapse.

Personally, I favor UltraShort ETFs. If you’re unfamiliar with UltraShort ETFs, these are invetsments that return 2X the inverse of a particular ETF. Let’s take an example, the UltraShort Financials ETF (SKF). SKF returns 2X the inverse of the Financials ETF (IYF). So if IYF falls 5%, SKF rises 10%. If IYF falls 10%, SKF rises 20%. In this sense, SKF is a great “hedge” or means of playing Financial stocks to the downside. However, there’s an added bonus to UltraShort ETFs like SKF: these investments ALSO trade based on demand from the marketplace. So if stocks collapse say 30%, you might actually see gains GREATER than 60% (2X the inverse) due to investors piling in as they seek to profit from the collapse. Consider SKF’s performance in 2008, for example. In 2008, financial stocks (as measured by the Financials ETF: IYF), fell roughly 50%.

However, if you’d bought SKF once the Crisis really took hold (late September), you could have made MORE than 100% in two month’s time:

This is what makes the UltraShort ETFs so handy when a Crisis hits: because they truly skyrocket as investors stampede like elephants into safety. However, I MUST STRESS that these are not investments to “buy and hold”.

Instead, these are shortterm

trades you should make ONLY once stocks have

begun to truly collapse. Simply add them to your “on deck” trades to make

once the next Crisis hits. You’re probably asking yourself, “how can I distinguish between an ordinary

correction and a REAL Crisis?” Let’s see what history shows us. If you recall from 2008, stocks didn’t go straight down. Instead they dropped, bounced, and then began the serious collapse. Looking back at that time, the 50 DMA served as a useful metric for gauging that a serious decline was about to begin:

As you can see stocks rolled over and broke below their 50DMA in late 2007. After that, the 50DMA acted as strong resistance. Indeed, there was only one bounce above this level, which lasted roughly a month and a half. The real trouble began in the summer of 2008, and investors were given a decent warning when the S&P 500 collapsed and then bounced to test the 50‐DMA and failed to break it.

Similar warnings appeared before the 1987 Crash:

The Tech Bubble:

And the 2008 Crash:

Thus, this tells us that the 50DMA is a strong metric for gauging when real trouble hits stocks again. On that note, the trigger you should be looking for in terms of

when the next Crash will hit will be a decisive break BELOW the 50DMA

followed by a strong bounce that FAILS to break above it again. With that in mind, here are some trades to put “on deck” for when the next round of the Crisis hits. Trade #1: Short the Russell 2000

The Russell 2000 is perhaps the junkiest index in the US. Many of the companies that

comprise this index don’t even MAKE money and most likely should have never been

taken public in the first place. This is the “risk” index, the index of companies that are

garbage. For that reason, the Russell 2000 will collapse most when stocks truly begin

rolling over.

The below chart compares the Russell 2000’s performance against that of the Dow Jones

Industrial Average during the 2008 Crash. As you can see, the Russell dropped

significantly more:

For this reason, I suggest buying the UltraShort Russell 2000 ETF (TWM) when the

market begins its next real collapse.

The UltraShort Russell 2000 ETF (TWM) returns 2X the inverse of the Russell 2000.

So if the Russell 2000 falls 5%, TWM returns 10%. If the Russell 2000 falls 10%, TWM

returns 20%. It’s a terrific means of playing the collapse in small cap stocks.

Again, wait for stocks to enter a free fall before opening this trade.

Trade #2: Short Financials

By now you know that the current Crisis has centered on the financial sector, specifically

the banks. The Protect Your Savings report details the issues extensively. However, as

further proof, the below chart shows that US banks are about to get slammed with another

round of mortgage defaults from the residential housing sector (I’m not even going to

bother including the commercial real estate market which is a multi-billion time bomb in

of itself).

Suffice to say, Financials have a lot of issues coming their way in the future. For that

reason, when the next Round of the Crisis hits, I suggest buying the UltraShort

Financials ETF (SKF).

SKF returns 2X the inverse of the Financials ETF (IYF). So if the IYF falls 5%, SKF

returns 10%. If the IYF falls 10%, SKF returns 20%. It’s a terrific means of playing the

collapse in financials stocks.

Again, wait for stocks to enter a free fall before opening this trade.

Trade #3: Short the Retail ETF

The US consumer accounts for 70% of US GDP. Real unemployment is currently close to 17%. Food Stamp usage is around a record 38 million. Tax receipts for 2010 so far are LOWER than 2009’s levels (didn’t everyone think the entire world was ending back then?). And yet, retail stocks are back to their 2007 highs:

As you can see, retail stocks in general are up nearly 200% during the worst recession in decades. It’s simply staggering. For that reason, I suggest Shorting the

Retail ETF (XRT) when stocks start to collapse. XRT gives broad exposure to the retail sector. Its top holdings are: Company % of Assets Casey General Stores 1.9% Gamestop 1.9% Jos A Bank Clothiers 1.8% Netflix 1.8% Tractor Supply 1.7% Annetaylor Stores 1.7% Limited Brands 1.7% Childrens PI Retail Stores 1.7% Best Buy 1.6% Abercrombie and Fitch 1.6% Shorting this ETF gives you the opportunity to short retail across the board. However, if you’re more inclined to short specific companies, I’d focus on apparel and clothing retailers like Gap (GPS), Limited Brands (LTD), Nordstrom (JWN), and the like. As with the other trades, only enter these shorts when the market begins to enter a free fall.

Trade #4: Short the Emerging Markets Emerging markets have leaded the US on this latest rally: they bottomed back in November 2008, while US stocks continued to plunge until March 2009. That’s not the only “leading” emerging markets have done. While the S&P 500 is up some 60% from its March lows, China, Brazil and their kind have all more than DOUBLED from the November 2008 lows.

This relationship will reverse in the next Crisis.

During times of Crisis, the “flight to safety” involves institutional investors dumping

their foreign shares to load up on Treasuries or other perceived “safe havens.”

Consequently, emerging markets are hit hardest when the markets collapse.

For that reason, when the next collapse begins I suggest shorting emerging markets via

any number of inverse Ultrashort ETFs. The most popular ones are:

1) The UltraShort Emerging markets ETF (EEV)

2) The UltraShort China ETF (FXP)

3) The UltraShort Brazil ETF (BZQ)

All three of these return 2X the inverse of an underlying index: the MSCI Emerging

Markets ETF, the FTSE/ Xinhua 25 ETF, and the Brazil ETF, respectively. As such, they

represent a great way to pocket major gains when the emerging markets collapse along

with the rest of the financial world during the next Crisis.

As with the other trades, only enter these shorts when the market begins to enter a free fall.
CONCLUSION This concludes the our report. If you found this interesting you might want to consider delving into our other FREE reports. All of them are available for downloading. Simply click here.

Good Investing!

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 



Think Tank Says Bailout Fund Will Need $6 Trillion And France Will Lose AAA Rating Daily Bail | Where do they plan to get the money, Euro Claus?

 

We Are Still Early In This Bear Phase   http://www.bullseyemicrocaps.com/?p=10478 By Roger Nusbaum: A reader left a question a couple of days ago asking my opinion on how to determine a market bottom. My thought process here will probably seem a little Hussmanesque. I tend to think of this in terms of probabilities and whether or not the market gets the benefit of the doubt at a given moment. A contributing factor here is duration. Earlier in the week I saw a stat about bear markets lasting four hundred and something days and we were only 150 days in (by some measure). The exact numbers cited dont matter to me so much as the general understanding that bear markets last well over a year on average and we are only a few months in…’

 

Stocks Surge On New Promises From European Leaders, Dow Adds 300 Points  [ Come on! Wake up! Two desperate, failed politicians who haven’t the slightest idea what they’re doing; certainly in the areas of finance and economics. Indeed, they’ve borrowed from a page in the fraudulent wall street / defacto bankrupt american book of failure and fraud in banging ‘square pegs in round holes’ along with nation-draining fraudulent obfuscation with b***s*** alone that hearkens back to that ’Weimar dollar’ era that was precursor to and inevitably led to the inflationary / no real value collapse now underway as is already the scenario in america. How totally desperate and pathetic they are. This is cheered by the wall street types / frauds to enable them to favorably  cash out. Take your profits while you still can, protect yourself while you still can, this fraud – induced collapse is just beginning. New ‘promises’! Currency-debased high inflation rally!  What a joke they’ve become! ]

 

Bulls Prevent Bear Market This Week: Dave's Dailyat TheStreet  [Sorry Dave this is already a secular bear market with sporadic, contrived, HFT / programmed contraindicated suckers bear market rallies that you yourself have previously pointed out, alluded to. Who talked to you Dave, which by the way brought you back into the fold at least at Yahoo, etc., with your atypically inaccurate headline.] It didnt take much Tuesday to get a short-squeeze underway. Markets were at bear market levels then until a rumor, passing as a news story from FT, got the bullish HFT algos going.

 


Train Reading: Imagine at The Wall Street JournalMark Gongloff

Steve Jobs and Americas decline Greg Ip in the Economist

The impact of phony short-squeeze rallies Ritholtz

Dont mock the 99% Megan McArdle

Did LSD help make Steve Jobs more creative? Slate

Alex P. Keaton, an alternative history Josh Brown

 

 

Steve Jobs and America’s decline — Greg Ip in the Economist Oct 6th 2011, G.I. | WASHINGTON [ That Steve Jobs was great for having literally saved Apple Computer from extinction, there is no question and I’ve previously eulogized him accordingly, ‘pre-death’ (my first computer was an AppleIIc in 1986). Related story: ‘Did LSD help make Steve Jobs more creative? — Slate  Yet, for every story as his, the Beatles (my favorite band all-time, along with the Classical Greats), etc., I can relate a multitude of stories of tragedy, disaster, including one of a quite brilliant lad I worked with – summer job – who expounded on the benefits of LSD expanding one’s mind {repeatedly recommending I try it – I didn’t- never did} was accepted at Columbia Law School, and while hitchhiking while high in mind-expansion-mode walked into a mack truck thereby expanding his mind (and body) all over the roadway, etc..]  ‘EARLIER this year a Federal Reserve official tried to tamp down worries about inflation by noting that, while food and petrol were getting more expensive, you could now buy an iPad that was twice as powerful for the same price as the previous model. The remark, soon lampooned as “Let them eat iPads”, predictably drew derision. But it typified a tactic to which American leaders frequently turn when they need a rejoinder to economic doomsaying: cite an Apple product.As bad as their politics has got, Americans could always comfort themselves with the knowledge that their business leaders, entrepreneurs and workers were the most dynamic and innovative in the world. But they may look back on 2011 and see three events that undermine that story: the downgrade of America’s credit rating; the last flight of the space shuttle; and Mr Jobs’s death. The first, coming as it did on the heels of a debilitating and entirely pointless fight over raising the debt ceiling, captures how American political dysfunction has undermined the economy’s institutional pillars. The latter two symbolised the waning of, respectively, American public and private technological pre-eminence.

Of course, it would be foolish to count out Apple, much less an entire economy, because of one mans death. Yet even if Apple remains as successful as it has been under Mr Jobs, that success long ago decoupled from that of the broader economy. Written on the back of my iPod are the words, Designed by Apple in California, Assembled in China. It was classic Jobs: reframing an issue, the outsourcing of American manufacturing jobs, as something inspirational rather than discouraging. The low-skill assembly jobs and the middle-class lives they provided may be leaving for Asian shores, but the brainy, wealth-creating parts of the processthe design, the engineering, the marketingwere firmly rooted in Silicon Valley. Free traders (including me) loved to cite the research that finds far more of the value in an iPod is added in America than in China.

But behind this glowing story of synergy between American brains and Chinese brawn lay a more disturbing reality. American global economic leadership has, in the last decade, benefited an ever narrower slice of its people. They have become fabulously wealthy, while the vast majority of job growth has been in areas like education and health care, where productivity and wages are stagnant, a trend well documented by Michael Spence. American global business leadership used to be personified by the likes of General Motors, Caterpillar, General Electric and Eastman Kodak. As they lost market share to foreign competitors, shifted employment overseas or flirted with bankruptcy, the focus turned to technology companies like Cisco Systems, Microsoft and Hewlett Packard. Microsoft and Cisco are both fine, though in recent years they have undergone layoffs and seen their market values shrink to a fraction of their bubble-era peaks. Hewlett Packard, of course, is flailing around for a new business model, and is seeking to exit the personal-computer business altogether.

Americans' entrepreneurial self-esteem is now embodied by Apple, Google, Facebook and Amazon. These are indeed fabulously innovative companies with world-beating business models. Yet one wonders if they are increasingly the exception, not the rule, and if the passing of Mr Jobs is simply the most prominent example of a broader decline in American entrepreneurship. According to JPMorgan, in the late 1990s, employment at start-up companies regularly grew 1.2m per quarter. That has fallen to 700,000 since the current recovery began. John Haltiwanger, probably the leading economist on employment dynamics by firm size, finds similar trends.

Entrepreneurship and innovation, of course, are not the same thing. Yet even if American innovation is fundamentally sound, there remains the more unsettling problem of how narrowly its fruits are shared. If you want to know why the Senate is on the verge of passing a bill punishing China for its trade practices, look no further than this fact: Apple, Google, Facebook and Amazon collectively employ just 113,000 people, a third of GMs payroll in 1980. Naturally, as Adam Smith pointed out long ago, the sole purpose of production is consumption, so one should not scoff at the benefits these companies create for Americans in their other role as consumers rather than workers. And in truth, technological advancement has probably done far more than trade to hollow out the middle class and widen inequality. Slapping China with punitive tariffs is more likely to trigger a trade war than restore millions of middle-class jobs.

But this is not a message that resonates with voters, or Congress. Both suspect that globalisation has done far more to benefit companies shareholders and their bankers than rank-and-file workers. That is the conviction of the people now occupying Wall Street, even if they lack coherent plans for dealing with it. And one can't blame them for suspecting the administrations motives when its ambassador to China delivers a speech that so prominently takes up the cause of American credit-card companies. Of course, Visa and Mastercard are as deserving of government support in foreign markets as any metal-bending company; but they only employ 12,600 people worldwide.

It would be unfair to lay this all at the feet of American politicians: widening inequality and the decline of middle-class manufacturing jobs is a global phenomenon that vexes governments everywhere. Yet this does not excuse American governance for making matters worse. There are lots of things it could do to improve the ability of and incentives for American companies and workers to innovate and grow, whether its taxing fossil fuels, giving more green cards to foreign scientists and engineers or simplifying the tax code. These days, however, that seems a fantasy compared to more prosaic demands such as, dont shut down the government, starve critical government agencies of funds or default on the national debt. If America is going to hold on to its technological mojo, it needs all the help it can get.

>

9 things you didn’t know about the life of Steve Jobs  ‘For all of his years in the spotlight at the helm of Apple, Steve Jobs in many ways remains an inscrutable figure — even in his death. Fiercely private, Jobs concealed most specifics about his personal life, from his curious family life to the details of his battle with pancreatic cancer — a disease that ultimately claimed him on Wednesday, at the age of 56.

While the CEO and co-founder of Apple steered most interviews away from the public fascination with his private life, there's plenty we know about Jobs the person, beyond the Mac and the iPhone. If anything, the obscure details of his interior life paint a subtler, more nuanced portrait of how one of the finest technology minds of our time grew into the dynamo that we remember him as today.

1. Early life and childhood
Jobs was born in San Francisco on February 24, 1955. He was adopted shortly after his birth and reared near Mountain View, California by a couple named Clara and Paul Jobs. His adoptive father
a term that Jobs openly objected to was a machinist for a laser company and his mother worked as an accountant.

Later in life, Jobs discovered the identities of his estranged parents. His birth mother, Joanne Simpson, was a graduate student at the time and later a speech pathologist; his biological father, Abdulfattah John Jandali, was a Syrian Muslim who left the country at age 18 and reportedly now serves as the vice president of a Reno, Nevada casino. While Jobs reconnected with Simpson in later years, he and his biological father remained estranged.

2. College dropout
The lead mind behind the most successful company on the planet never graduated from college, in fact, he didn't even get close. After graduating from high school in Cupertino, California — a town now synonymous with 1 Infinite Loop, Apple's headquarters — Jobs enrolled in Reed College in 1972. Jobs stayed at Reed (a liberal arts university in Portland, Oregon) for only one semester, dropping out quickly due to the financial burden the private school's steep tuition placed on his parents.

In his famous 2005 commencement speech to Stanford University, Jobs said of his time at Reed: "It wasn't all romantic. I didn't have a dorm room, so I slept on the floor in friends' rooms, I returned coke bottles for the 5 cent deposits to buy food with, and I would walk the seven miles across town every Sunday night to get one good meal a week at the Hare Krishna temple."

3. Fibbed to his Apple co-founder about a job at Atari
Jobs is well known for his innovations in personal computing, mobile tech, and software, but he also helped create one of the best known video games of all-time. In 1975, Jobs was tapped by Atari to work on the
Pong-like game Breakout.

He was reportedly offered $750 for his development work, with the possibility of an extra $100 for each chip eliminated from the game's final design. Jobs recruited Steve Wozniak (later one of Apple's other founders) to help him with the challenge. Wozniak managed to whittle the prototype's design down so much that Atari paid out a $5,000 bonus but Jobs kept the bonus for himself, and paid his unsuspecting friend only $375, according to Wozniak's own autobiography.

4. The wife he leaves behind
Like the rest of his family life, Jobs kept his marriage out of the public eye. Thinking back on his legacy conjures images of him commanding the stage in his trademark black turtleneck and jeans, and those solo moments are his most iconic. But at home in Palo Alto, Jobs was raising a family with his wife, Laurene, an entrepreneur who attended the University of Pennsylvania's prestigious Wharton business school and later received her MBA at Stanford, where she first met her future husband.

For all of his single-minded dedication to the company he built from the ground up, Jobs actually skipped a meeting to take Laurene on their first date: "I was in the parking lot with the key in the car, and I thought to myself, 'If this is my last night on earth, would I rather spend it at a business meeting or with this woman?' I ran across the parking lot, asked her if she'd have dinner with me. She said yes, we walked into town and we've been together ever since."

In 1991, Jobs and Powell were married in the Ahwahnee Hotel at Yosemite National Park, and the marriage was officiated by Kobin Chino, a Zen Buddhist monk.

5. His sister is a famous author
Later in his life, Jobs crossed paths with his biological sister while seeking the identity of his birth parents. His sister, Mona Simpson (born Mona Jandali), is the well-known author of
Anywhere But Here a story about a mother and daughter that was later adapted into a film starring Natalie Portman and Susan Sarandon.

After reuniting, Jobs and Simpson developed a close relationship. Of his sister, he told a New York Times interviewer: "We're family. She's one of my best friends in the world. I call her and talk to her every couple of days.'' Anywhere But Here is dedicated to "my brother Steve."

6. Celebrity romances
In
The Second Coming of Steve Jobs, an unauthorized biography, a friend from Reed reveals that Jobs had a brief fling with folk singer Joan Baez. Baez confirmed the the two were close "briefly," though her romantic connection with Bob Dylan is much better known (Dylan was the Apple icon's favorite musician). The biography also notes that Jobs went out with actress Diane Keaton briefly.

7. His first daughter
When he was 23, Jobs and his high school girlfriend Chris Ann Brennan conceived a daughter, Lisa Brennan Jobs. She was born in 1978, just as Apple began picking up steam in the tech world. He and Brennan never married, and Jobs reportedly denied paternity for some time, going as far as stating that he was sterile in court documents. He went on to father three more children with Laurene Powell. After later mending their relationship, Jobs paid for his first daughter's education at Harvard. She graduated in 2000 and now works as a magazine writer.

8. Alternative lifestyle
In a few interviews, Jobs hinted at his early experience with the psychedelic drug LSD. Of Microsoft founder Bill Gates, Jobs said: "I wish him the best, I really do. I just think he and Microsoft are a bit narrow. He'd be a broader guy if he had dropped acid once or gone off to an ashram when he was younger."

The connection has enough weight that Albert Hofmann, the Swiss scientist who first synthesized (and took) LSD, appealed to Jobs for funding for research about the drug's therapeutic use.

In a book interview, Jobs called his experience with the drug "one of the two or three most important things I have done in my life." As Jobs himself has suggested, LSD may have contributed to the "think different" approach that still puts Apple's designs a head above the competition.

Jobs will forever be a visionary, and his personal life also reflects the forward-thinking, alternative approach that vaulted Apple to success. During a trip to India, Jobs visited a well-known ashram and returned to the U.S. as a Zen Buddhist.

Jobs was also a pescetarian who didn't consume most animal products, and didn't eat meat other than fish. A strong believer in Eastern medicine, he sought to treat his own cancer through alternative approaches and specialized diets before reluctantly seeking his first surgery for a cancerous tumor in 2004.

9. His fortune
As the CEO of the world's most valuable brand, Jobs pulled in a comically low annual salary of just $1. While the gesture isn't unheard of in the corporate world  
Google's Larry Page, Sergey Brin, and Eric Schmidt all pocketed the same 100 penny salary annually Jobs has kept his salary at $1 since 1997, the year he became Apple's lead executive. Of his salary, Jobs joked in 2007: "I get 50 cents a year for showing up, and the other 50 cents is based on my performance."

In early 2011, Jobs owned 5.5 million shares of Apple. After his death, Apple shares were valued at $377.64 a roughly 43-fold growth in valuation over the last 10 years that shows no signs of slowing down.

He may only have taken in a single dollar per year, but Jobs leaves behind a vast fortune. The largest chunk of that wealth is the roughly $7 billion from the sale of Pixar to Disney in 2006. In 2011, with an estimated net worth of $8.3 billion, he was the 110th richest person in the world, according to Forbes. If Jobs hadn't sold his shares upon leaving Apple in 1985 (before returning to the company in 1996), he would be the world's fifth richest individual.

While there's no word yet on plans for his estate, Jobs leaves behind three children from his marriage to Laurene Jobs (Reed, Erin, and Eve), as well as his first daughter, Lisa Brennan-Jobs.

            -----

 

Did LSD help make Steve Jobs more creative? Slate { Id say causation (cause/effect) becomes problematic here; a chicken and egg kind of thing that in the realm of Kantian philosophy would be considered a noumenon; quite possibly even misconstrued by Jobs himself in an overly humble, somewhat self-effacing kind of way, ignoring his innate abilty, brilliance. }  [ That Steve Jobs was great for having literally saved Apple Computer from extinction, there is no question and Ive previously eulogized him accordingly, pre-death (my first computer was an AppleIIc in 1986). Yet, for every story as his, the Beatles (my favorite band all-time, along with the Classical Greats), etc., I can relate a multitude of stories of tragedy, disaster, including one of a quite brilliant lad I worked with summer job who expounded on the benefits of LSD expanding ones mind {repeatedly recommending I try it I didnt- never did} was accepted at Columbia Law School, and while hitchhiking while high in mind-expansion-mode walked into a mack truck thereby expanding his mind (and body) all over the roadway, etc..] 

 

 

 

Home ownership: Biggest drop since Great Depression The percentage of Americans who owned their homes has seen its biggest decline since the Great Depression, according to the U.S. Census Bureau.

 

 

The impact of phony short-squeeze rallies Ritholtz  http://www.ritholtz.com/blog/2011/10/the-mmpact-of-phoney-short-squeezes

Stock investors may take days to distinguish real news from noise, according to Federal Reserve Bank of New York.

http://www.ritholtz.com/blog/wp-content/uploads/2011/10/1007chart.jpg

This is especially true these days, given false announcements of bailouts, Fed interventions and rescues. They tend to cause fake short squeezes that temporarily spike markets, only to see them ultimately head lower.

To get a closer look of noise on markets, the FFRBNY studied how UALs stock moved in September 2008. At the time, a six-year-old report on the company’s bankruptcy filing appeared online and was treated as a new story.

David Wilson of Bloomberg has the details:

UAL, which later became United Continental Holdings Inc., plunged as much as 76 percent on Sept. 8, 2008, in response to the error. While UALs loss narrowed to 11 percent by the close of trading, the shares fell the next two days before rebounding.

Residual effects attributable to the false news shock lasted for seven trading days, the researchers wrote this week in a blog posting on the New York Feds website. The effect is at odds with the efficient-market hypothesis, which holds that share prices reflect all publicly available data on a company.

To identify the time period, they estimated where UALs shares would have traded if the outdated report hadnt surfaced. The projection was derived from the performance of the Standard & Poors 500 Index, the Bloomberg World Airlines Index and crude oil during the period. The posting by economists Carlos Carvalho, Nicholas Klagge and Emanuel Moench was based on a report they published in May 2009 and revised in June. Carvalho, who teaches economics at the Pontifical Catholic University of Rio de Janeiro, worked at the New York Fed when the research was originally done. His two co- authors are still there.

Given every twitch of the market over tales of EU/ECB action, German banks bailing out Italy, or anything related to Greece, it is interesting to see how traders behave relative to false announcements.

 

IMF to Propose New Short-Term Credit Lines Oct 7th, 2011 News (The Wall Street Journal) — The International Monetary Fund is crafting a proposal to offer new short-term credit lines to governments to prevent the spread of global financial crises, senior IMF and finance officials say.The program has the tentative backing of key world financial leaders who are expected to approve the new lending tool at the coming meetings of the Group of 20 industrialized and developing economies, according to three senior officials from G-20 countries. [source] PG View: Yes! Absolutely! More credit, more debt is the answer to the global debt crisis.

 

U.S. Bank Exposure to Europe Could Be $640 Billion, Per Congressional Paper Oct 7th, 2011 News (The Wall Street Journal) — U.S. bank exposure to the European debt crisis is estimated at $640 billion, nearly 5% of total U.S. banking assets, according to recent research papers written for Congress.While U.S. Treasury Secretary Timothy Geithner says the U.S. banking sector’s vulnerability to the euro zone problems is “very limited,” the Congressional Research Service estimate is one of the first public assessments provided by the U.S. government that quantifies the potential risks.According to two different reports provided to federal lawmakers last month, the debt problems of Greece, Ireland, Portugal, Italy, and Spain constitute a ”serious risk” to the European banking system, particularly German, French, and U.K. banks, which have close ties to U.S. banks. Markets believe there’s a very high likelihood Greece will default in the coming weeks. That could cause a cascade of other crises throughout Europe…The estimate doesn’t include U.S. bank exposure to European bank portfolios that include assets in the weak member countries. Also, it doesn’t account for euro-zone assets held by money market, pension, and insurance funds.[source]PG View: Geither’s sense of reality seems to have been distorted by all the absolutely huge numbers bandied about in recent years. Does he really view $640 bln is “very limited?” The Congressional Research Service goes on to say that, “depending on the exposure of non-bank financial institutions and exposure through secondary channels, U.S. exposure to Greece and other euro-zone countries could be considerably higher.” What exactly does “considerably higher” mean? Is it twice the $640 bln? More?

 

Fitch cuts Italy, Spain ratings, outlook negative Oct 7th, 2011 News (Reuters) source]

 

Is U.S. a Third-World Nation? Oct 7th, 2011 News (The Wall Street Journal) — [ YES! ]Author Michael Lewis says the U.S. and many European nations suffered a moral failure that led to economic collapse. PG View: Supposed first world countries — including the US — hid risk, which was consequently mispriced, leading to crisis.

World facing worst financial crisis in history, Bank of England Governor says Oct 7th, 2011 News (The Telegraph) ..This is the most serious financial crisis weve seen, at least since the 1930s, if not ever. Were having to deal with very unusual circumstances, but to act calmly to this and to do the right thing. [source]

Banking Delusion Brings Crisis to Europe’s Core Oct 7th, 2011 News (Bloomberg-BusinessWeek) — Once upon a time, like this summer, Dexia SA, the French-Belgian bank, was stable. By the measures global regulators deem important, its capital ratio stood at 11.4 percent of risk-weighted assets, according to data compiled by Bloomberg. That’s well above the 10 percent regulators plan to require of the world’s largest banks under new international rules.What a difference a summer makes. The Belgian and French governments now have a complicated mess on their hands. Dexia, which had received a government bailout in 2008..[source]

 

 

 

Euro Plunges On Fitch Double Tap, Comments From Merkel Fail Fitch Portugal

‘Chinabot is in full fail mode, after a sticksave attempt to save the currency following the Italian downgrade by Fitch was monkeyhammered with the Spanish downgrade which was not only two notches, but sent the country's rating to below that of S&P and Moodys. Adding fuel to the fire is an errant comment from Merkel who has said that Eurobonds are "absolutely the wrong way to go", and lastly, a last minute notification from Fitch which goes for Trifecta by saying that Portugal remains on outlook negative..

And Spain... Fitch Downgrades Spain To Aa- From Aa+, Two Notch Cut, Outlook Negative Baseline Scenario Budget Deficit default European Central Bank Fitch France Gross Domestic Product International Monetary Fund ratings recovery Unemployment Volatility

Fitch Downgrades Italy To A+, Outlook Negative Budget Deficit default European Central Bank Eurozone Fitch France Greece Gross Domestic Product International Monetary Fund Ireland Italy Portugal ratings Sovereign Risk Sovereign Risk Volatility

As Dexia Nationalization Rumors Spread, A Compression Trade May Be In Order Belgium CDS Flight to Safety France Gross Domestic Product International Monetary Fund Nationalization Reality .. Belgium itself blows up. ..

Market Snapshot: Dispersion Rising As EU Financials Underperform Precious Metals Price Action ..why are we still rallying? ..

Hedge Fund Pound-O-Rama: Full Performance Update Through Month End

Well, a month end update only for those funds who still report their P&L to HSBC. Others, such as Paulson, apparently deem it below them to post an update when they are doing less than swell, shall we say. In other news, redemptions will continue until morale improves.

"Your Alpha Is Burning" - Fighting Greek Fire with Fire: Volatility, Correlation, and Truth Bear Market Brazil Central Banks default Equity Markets Federal Reserve Recession Sovereign Debt Switzerland Volatility

From the mind that brought you the Great Vega Short comes the next masterpiece on liquidity, volatility, contagion and everything else. "Volatility is change and the world is changing. The truth is that Greece will default. The truth is that if our leaders continue to deny our problems history tells us the US will eventually default. These shocking events will hurt many people, markets will collapse, life savings will be lost, there will be violence, upheaval, and massive political change ..

PrimeX - The Time For The Next "Subprime Trade" Has Come ABX Prime Alt-A Barclays Black Swan Fitch fixed Housing Market Kyle Bass Markit Morgan Stanley Paolo Pellegrini Precious Metals ratings Real estate Reality recovery

 

Several years ago Paolo Pellegrini, Kyle Bass, Michael Burry and several other visionaries were well ahead of the conventional wisdom groupthink curve by not only sensing that the housing market was massively overvalued and riding on the crest of a huge leverage bubble .. the world is fretting about Europe, Morgan Stanley, lack of decisive political decision-making in a pseudo union of 17 different countries, lack of decisive monetary intervention, a Chinese hard landing and everything else that makes front pages these days, slowly our prediction is starting to come true. But you won't hear about it anywhere else, because if the market understands that in addition to a global solvency crisis, America has another Subprime contagion on its hands actually being expressed in the markets as we type, and potentially costing banks, pension funds and various asset managers billions in losses behind the scenes, that may well be the last straw.

 

Inventories Miss As Non-Durables Drops Most Since Sep09 Wholesale Inventories

The headline wholesale inventories number missed +0.6% expectations, rising only 0.4% (from 0.8% prior) with its lowest build since Nov 2010. Under the covers though, non-durables were the most troublesome - unless of course the spin is that a falling inventory implies future growth as inventories 'have' to be rebuilt, right? Non-durables inventories dropped 0.6% - its biggest drop since Sep 2009.

US Needs To Generate 261,200 Jobs Per Month To Return To Pre-Depression Employment By End Of Obama Second Term HIGHER UNEMPLOYMENT Unemployment

 

Rounding Error, Short Squeeze, And Cost Of Recap AIG American International Group Bad Bank Bond CDS Creditors default Double Dip Price Action Reality Verizon

The rally has been strong across many products, but once again has all the signs of a short squeeze rally. ..

Average Duration Of Unemployment Rises To New All Time High Unemployment

 

As noted previously, one key fly in the ointment in an otherwise better than expected jobs report (in which the participation rate also trended higher for a welcome change) was the manufacturing jobs data, which declined by 13,000. Perhaps at the end of the day this is the most important data point, since while declining government jobs at the end of the day is a good thing, government workers don't actually create anything of value for the economy. And as the chart below demonstrates, the long term trend is certainly not our friend. The second "fly", and the one that will certainly be used as a talking point by politicians, was the average unemployment duration. At 40.5 weeks, it just hit a new all time record.

Summarizing Wall Street's Reaction To The NFP Data Recession recovery Reuters Unemployment Verizon Yen

As usual, Reuters is the first with a compilation of Wall Street's gut reaction to the NFP data.

 

September NFP Prints At 103,000, Beats Consensus, Even As U-6 Comes At Highest Since December 2010, Manufacturing Jobs Lost

So much for the recession? September NFP prints at 103,000 on expectations of 60,000, with August revised to 57,000 from that roulette busting double zero. The unemployment rate held at 9.1 percent, as expected. From the report: "The increase in employment partially reflected the return to payrolls of about 45,000 telecommunications workers who had been on strike in August.. real unemployment, U6, printed up from 16.2% to 16.5%, the highest since December 2010.

 

Goldman Comes To Margin Stanley's "Defense" As It Is Now Actively Selling MS Calls, Buying Short Term CDS CDS

The bank that was selling Dexia shares to its clients all the way down (Goldman Cuts Dexia From Buy To Neutral On Imminent Restructuring And Winddown) and which has the uncanny ability to align its own trading desk with an event's "outcome", at the expense of clients of course, has just done it again. As of this morning it is actively selling Margin Stanley calls to whoever is still left as a client. From a just released report: "Buy calls for a likely relief rally on earnings; sell short-dated CDS as fear falls." Now... just who are these clients buying calls from and selling CDS to?

 

 

6 Reasons a Global Recession is Unavoidable  Ron DeLegge, October 5, 2011, ‘Most economists and Wall Street types are reluctant to publicly admit the global economy is in a recession. Their reams of conflicting data are sending mixed messages. But an honest look at key events and the behavior of financial markets solidifies the view that the global recession we're probably already in, is unavoidable. Let's analyze some of the reasons behind this.

1) The Fed is out of tricks. When it comes to manipulating financial markets in the name of economic security, nobody matches the Federal Reserve's prowess. Over the past few years, the Fed has engaged in financial gimmickry of such epic proportions that angry calls for ending its existence have been voiced from sea to shining sea. The Fed's Treasury purchases (POMO) and monetization of debt (quantitative easing), may have delayed the reckoning day, but have these programs really solved America's long-term problems? The Fed's latest shift from short-term to long-term debt (Operation Twist) is tantamount to taking money from your right hand pocket and putting it into your shirt pocket. The Fed is running out of time and out of tricks. Ben Bernanke has finally admitted what the general public has known all along; the job situation is a 'national crisis.'

2) Stock market says we're already in a recession.The National Bureau of Economic Research (NBER) and its leading economists still deny the U.S. economy is in a recession. Apparently, their slide rulers haven't yet confirmed it, so they need a few more quarters before issuing a press release. Meanwhile, the stock market, which is a leading indicator of economic activity, is screaming 'recession.' Large company stocks within the S&P 500 (NYSEArca: SPY - News) have fallen almost 18% since July. Bulls argue this is still shy of the 20% threshold that confirms a bear market, but even so, mid cap stocks (NYSEArca: MDY - News) and small caps (NYSEArca: IWM - News) have already entered bear territory. Today's stock prices reflect expectations about future earnings, which in turn are connected to the future state of the economy. Expectations are rightfully low.

3) Greece has set the tone for Europe (and maybe the rest of the world).How many financial targets will Greece continue to miss before forecasters stop regurgitating its false numbers? When will Greece stop embarrassing itself with financial projections it knows aren't true? Greece's 2011 deficit was projected to be 8.5% of its GDP but came in almost 1.69 billion above its original targets. Next year, Greece is aiming for a deficit that's 6.8% of GDP. With the country engulfed in civil protests, job strikes and general chaos - how realistic are its 2012 projections? Financial bets for Greece to succeed are a long-shot. The country's economic projections are no longer based upon realistic assumptions, but hopes for garnering more bailout money and calming hostile markets. Ultimately, Greece is merely a reflection of the entire EU region - a place where financial aspirations don't match reality.

4) Bear funds are leading performers.The two-year period from March 2009 to March 2011 was a difficult existence for bear market funds. After bottoming at decade lows, the stock market skyrocketed and bear funds got clobbered.  But not anymore. Bear funds are investments that, by design, increase in value when the underlying benchmarks they track decline. Now with the stock market swooning, bear funds are posting huge gains. Over the past three months, Direxion's 3x daily leveraged bear ETFs for large cap stocks (NYSEArca: BGZ - News) is ahead by 42.97%, mid cap stocks (NYSEArca: MWN - News) is up 58.30% and small caps (NYSEArca: TZA - News) is up by 49.76%. Reversing this ominous trend, especially when key technical levels have been pierced, won't be easy.

5) Major asset classes are in correlation.During a bear market, the correlation between asset classes typically jumps and this is exactly the case right now. Over the past few months, commodities (NYSEArca: GCC - News), global real estate stocks (NYSEArca: RWO - News), precious metals (NYSEArca: GLTR - News), international stocks (NYSEArca: EFA - News), and U.S. stocks (NYSEArca: SCHB - News) have all moved in the same general direction by recording sizable losses. Even gold (NYSEArca: IAU - News) and silver (NYSEArca: SLV - News), which previously escaped the wrath of losses, have joined the party. And only cash and bonds (NYSEArca: AGG - News) are bucking the correlation trend. 

6) Pace of sovereign downgrades is accelerating.We don't advocate putting implicit faith in credit ratings, because history has taught us they are nothing more than financial opinions and frequently, not very accurate ones. Still, a gander at the latest downgrading trend is troublesome. Intuitive observers will note, this is not an isolated phenomenon, but a global trend. Sovereign debt from Greece and Portugal, after several downgrades, is now rated junk. Ireland has been downgraded and Italy was just downgraded by Moody's to A2 with a negative outlook. Japan, along with U.S. debt was lowered in August and another wave of more downgrades is coming, so get used to it. 

Conclusion

Investing in an economically stifled climate requires patience, diligence, and forethought. Following the herd mentality guarantees nothing more than mediocrity and making kneejerk financial decisions is an excellent way to lose money. ETFguide's Profit Strategy ETF Newsletter continues to advocate a fiercely independent view of world events, financial markets, and the proper allocation of money. Ultimately, having an investment strategy that can perform during any kind of market is a good start.  

 

Consumer Spending Slumps In September, Index Showsat Forbes

 

U.S. stocks' massive "melt-up" fans investor fears Reuters October 5, 2011, By Edward Krudy NEW YORK (Reuters) - In less than one hour on Tuesday, the U.S. stock market surged by 4 percent -- for no apparent reason.The last hour of trading was the most volatile final hour in two months -- and it occurred at a speed that frightens many, from experienced hedge-fund managers to mom-and-pop investors.The late-day "melt-up" that pushed the S&P 500 index (^SPX - News) out of bear-market territory might be construed as good news. But it brings back echoes of the "flash crash" that saw markets dive by several hundred points in a matter of minutes, and it's a big reason many are staying away from the market."Everyone is scared in both ways -- the shorts are scared, the longs are scared, everyone is scared. The high-net-worth investor is very, very scared," said Stephen Solaka, managing partner at Belmont Capital Group in Los Angeles, which manages money for independent wealth advisers and family offices.Tuesday's move was the latest example of an erratic, high-octane stock market increasingly driven by levered exchange traded funds and complicated hedging and options strategies that unwind with dizzying speed.It's a far cry from when the U.S. stock market was viewed as a place for capital-raising by businesses seeking to expand and a place for investors looking to put their savings to work."It tends to result in some market participants feeling like the market is uninvestable. It's not good for mutual funds or hedge funds," said Michael Marrale, head of sales trading at RBC Capital Markets in New York.The ostensible reason for Tuesday's move was an article published late in the day on the Financial Times website quoting the EU's commissioner for economic affairs, Olli Rehn, saying a plan was being worked out to recapitalize the region's troubled banking sector.But Reuters reported similar comments earlier in the day, and Rehn's comments struck some people as covering old ground. Ken Polcari, a veteran of the NYSE floor at ICAP Equities, found the reasoning insufficient."There is no clarity -- 'no formal decision' -- just more speculation, more rumors, and more innuendo," he said of the FT article.

WHAT WENT DOWN

Traders, analysts and investors interviewed by Reuters cited a number of factors, many of them technical, and linked to big positions around the 1100 level on the S&P 500

BLAST-OFF AT 1,100

The S&P climbed steadily between 3 p.m. and 3:30 p.m., but once it broke through 1,100, the gains accelerated, as the average rose 1 percent in the span between 3:39 p.m. and 3:45 p.m.

For Joe Donohue, money manager at Dimension Trading in Red Bank, New Jersey, the speed of the reversal was a classic sign of automated algorithmic trading.

"I didn't know the move was for real until about 3:40 to 3:45, when my machine just lit up green like a Christmas tree," he said. "That's when you know there's algo buying dictating the market. It certainly wasn't individual buyers."

Donohue's response was to close out short positions and buy a triple-leveraged long exchange traded fund that magnifies the performance of the Russell 2000 (Chicago Options:^RUT - News) three times.

The Direxion Daily Small Cap Bull 3X Shares (Pacific:TNA - News), which had its busiest day of trading in history on Tuesday, rocketed nearly 20 percent into the close. That ETF, along with the Proshares Ultrashort S&P 500 ETF (Pacific:SDS - News), another leveraged ETF, are now often among the top 25 traded issues on U.S. exchanges.

"Program trading and algorithmic trading was the cause," said Donohue. "We're seeing moves in a half hour that used to take weeks. Obviously we were very oversold technically before, and essentially we had a 'melt-up' that was helped by the algo trading that just went off buying."…’

 

Moodys Cuts Italys Credit RatingWall St. Cheat Sheet

 

Who Will Recapitalize the Recapitalizers? [ Gutenberg of course! Well, just indirectly, historically speaking; the printing press, that is. The recapitalizer, brought back to life in the pervasively corrupt, defacto bankrupt america; bringing home once more that historic Weimar dollar, ubiquitously now worldwide. Sounds like a plan! Straight from planning / design room for the u.s.s. Titanic! ] The Wall Street Journal  Paul Vigna Recapitalizing European banks (the preferred euphemism for bailout, apparently) in order to stabilize them in the face of haircuts on sovereign debt (the preferred euphemism for losses, obviously) through a facility like the EFSF risks a spiral that will make the bailouts more difficult to fund.Capital Economics economist John Higgins writes today that the bank recapitalization plan that has the market so excited is unlikely to draw a line under the crisis.A recapitalization would allow banks to withstand a bigger haircut on Greek debt. The trouble is that once Greece gets a bigger haircut, other sovereign borrowers will want one, too. That could get expensive in a hurry.The EFSF bailout fund could fill help weaker countries carry some of that burden, but that will get increasingly problematic.The more the EFSFs funds are used to recapitalize banks, the less it will have to provide official financing, or to intervene in the debt markets, Mr. Higgins writes. And the more the EFSF is expected to deploy its firepower in whatever capacity, the more investors will believe it will have to be leveraged, with the result that its own cost of borrowing could keep on rising.



David Stockman: Blame The Fed! Sep 30th, 2011 News (ChrisMartenson.com) David Stockman, former US Representative and Director of the Office of Management and Budget under Reagan, does not mince words. He sees the monetary systems of the world coming apart.How did we get here? He identifies the root cause as the intentional over-leveraging of world economies by central planners in a misguided effort to enjoy growth without consequence…’

 

Gov't report: Fannie knew of 'robo-signing' in '03 - AP

 

After a Bad Q3, Markets Not Likely to Recover in Q4  Daryl Montgomery, October 3, 2011, ‘The third quarter of 2011 had the biggest drop and most volatility for stocks since 2009. The fourth quarter may not be much better since the cause of the problem is a new credit crisis and an emerging global recession. Both will continue to be a drag on the market.

 

Tomorrow's Tape: The Jean-Claude and Ben Show Wall Street JournalMark Gongloff  Economics:

 

Train Reading: That Explains Everythingat The Wall Street Journal 

Chinas worsening credit crunch Pragmatic Capitalism

The Occupy Wall Street protesters are winning Josh Brown

The gap between economic data and sentiment Abnormal Returns

Recession, restructuring and the ring fence John Hussman

 

Marc Faber's October Outlook: Forget EU Debt Crisis, A China Meltdown Is The Real Threat http://www.bullfax.com/?q=node-marc-fabers-october-outlook-forget-eu-debt-crisis-china 10/03/2011 By Nathaniel Crawford:Marc Faber is out with the latest issue of his famous Gloom, Boom and Doom Report, which is always a must read for serious investors. Unlike most of the other talking heads, Faber has an excellent track record. He correctly predicted the top in the equity markets in Nov. 2007, and caught the bottom in March 2009, making his subscribers a lot of money. Here is a summary of his October 2011 report:Stocks--Yes, stocks are very oversold, but that does not mean they cannot go lower. The dreadful price action in both Copper and the Shanghai Composite points to new lows for the equity markets. After US stocks make a new low below 1100 on the S&P 500 (SPY), there could be a year-end rally followed by a more meaningful decline into 2012. Investors should use any bounce in stocks as an opportunity to reduce their equity exposure.

 

WARNING: Corporate-Fascist Military Coup Brewing in the United States? Tony Cartalucci | Beware of pretenders supplied by the establishment to “save us” from collapsing system.


 

Prophets Of Doom: 12 Shocking Quotes From Insiders The Economic Collapse Oct 1, 2011 We are getting so close to a financial collapse in Europe that you can almost hear the debt bubbles popping.  All across the western world, governments and major banks are rapidly becoming insolvent.  So far, the powers that be are keeping all of the balls in the air by throwing around lots of bailout money.  But now the political will for more bailouts is drying up and the number of troubled entities seems to grow by the day.  Right now the western world is facing a debt crisis that is absolutely unprecedented in world history.  Europe has had a tremendously difficult time just trying to keep Greece afloat, and several much larger European countries are now on the verge of a major financial crisis.  In addition, there is a growing number of very large financial institutions all over the western world that are also rapidly approaching a day of reckoning.  The global financial system is a sea or red ink, and when we get to the point where there are hundreds of ships going under how is it going to be possible to bail all of them out?  The quotes that you are about to read show that quite a few top financial and political insiders know that things cannot hold together much longer and that a horrific economic crisis is coming.  We built the global financial system on a foundation of debt, leverage and risk and now this house of cards that we have created is about to come tumbling down.

A lot of people in politics and in the financial world know what is about to happen.  Once in a while they will even be quite candid about it with the media.

As I have written about previously, Europe is on the verge of a financial collapse.  If things go really badly, things could totally fall apart in a few weeks.  But more likely it will be a few more months until the juggling act ends.

Right now, the banking system in Europe is coming apart at the seams.  Because the global financial system is so interconnected today, when major European banks start to fail it is going to have a cascading effect across the United States and Asia as well.

The financial crisis of 2008 plunged us into the deepest recession since the Great Depression.

The next financial crisis could potentially hit the world even harder.

The following are 12 shocking quotes from insiders that are warning about the horrific economic crisis that is almost here.

#1 George Soros: Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation.

#2 PIMCO CEO Mohammed El-Erian: These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy.

#3 Attila Szalay-Berzeviczy, global head of securities services at UniCredit SpA (Italys largest bank): The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greeces spirits.

#4 Stefan Homburg, the head of Germanys Institute for Public Finance: The euro is nearing its ugly end. A collapse of monetary union now appears unavoidable.

#5 EU Parliament Member Nigel Farage: I think the worst in the financial system is yet to come, a possible cataclysm and if that happens the gold price could go (higher) to a number that we simply cannot, at this moment, even imagine.

#6 Carl Weinberg, the chief economist at High Frequency Economics: At this point, our base case is that Greece will default within weeks.

#7 Goldman Sachs strategist Alan Brazil: Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the worlds base currency?

#8 International Labour Organization director general Juan Somavia recently stated that total unemployment could increase by some 20m to a total of 40m in G20 countries by the end of 2012.

#9 Deutsche Bank CEO Josef Ackerman: It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels.

#10 Alastair Newton, a strategist for Nomura Securities in London: We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis

#11 Ann Barnhardt, head of Barnhardt Capital Management, Inc.: Its over. There is no coming back from this. The only thing that can happen is a total and complete collapse of EVERYTHING we now know, and humanity starts from scratch. And if you think that this collapse is going to play out without one hell of a big hot war, you are sadly, sadly mistaken.

#12 Lakshman Achuthan of ECRI: When I call a recessionthat means that process is starting to feed on itself, which means that you can yell and scream and you can write a big check, but its not going to stop.

*****

In my opinion, the epicenter of the next wave of the financial collapse is going to be in Europe.  But that does not mean that the United States is going to be okay.  The reality is that the United States never recovered from the last recession and there are already a lot of signs that we are getting ready to enter another major recession.  A major financial collapse in Europe would just accelerate our plunge into a new economic crisis.

If you want to read something that will really freak you out, you should check out what Dr. Philippa Malmgren is saying.  Dr. Philippa Malmgren is the President and founder of Principalis Asset Management.  She is also a former member of the Bush economic team. You can find her bio right here.

Malmgren is claiming that Germany is seriously considering bringing back the Deutschmark.  In fact, she claims that Germany is very busy printing new currency up.  In a list of things that we could see happen over the next few months, she included the following.

“The Germans announce they are re-introducing the Deutschmark. They have already ordered the new currency and asked that the printers hurry up.”

This is quite a claim for someone to be making.  You would think that someone that used to work in the White House would not make such a claim unless it was based on something solid.

If Germany did decide to leave the euro, you would see an implosion of the euro that would be truly historic.

 

But as I have written about previously, it should not surprise anyone that theend of the euro is being talked about because the euro simply does not work.

The only way that the euro would have had a chance of working is if all of the governments using the euro would have kept debt levels very low.

Unfortunately, the financial systems of the western world are designed to push governments into high levels of debt.

The truth is that the euro was doomed from the very beginning.

Now we are approaching a day of reckoning.  We have been living in the greatest debt bubble in the history of the world, but the bubble is ending.  There are several ways that the powers that be could handle this, but all of them will lead to greater financial instability.

In the end, we will see that the debt-fueled prosperity that the western world has been enjoying for decades was just an illusion.

Debt is a very cruel master.  It will almost always bring more pain and suffering than you anticipated.

It is easy to get into debt, but it can be very difficult to get out of debt.

There is no way that the western world can unwind this debt spiral easily.

The only way that another massive economic crisis can be put off for even a little while would be for the powers that be to kick the can down the road a little farther by creating even more debt.

But in the end, you can never solve a debt problem with more debt.

The next several years are going to be an incredibly clear illustration of why debt is bad.

When the dominoes start to fall, we are going to witness a financial avalanche which is going to destroy the finances of millions of people.

You might want to try to get out of the way while you still can.

 

IMF: World economy enters 'dangerous new phase'  Christopher S. Rugaber, AP Economics Writer, On Tuesday September 20, 2011, WASHINGTON (AP) The world economy has entered a "dangerous new phase," according to the chief economist of the International Monetary Fund. As a result, the international lending organization has sharply downgraded its economic outlook for the United States and Europe through the end of next year.

The IMF expects the U.S. economy to grow just 1.5 percent this year and 1.8 percent in 2012. That's down from its June forecast of 2.5 percent in 2011 and 2.7 percent next year.

To achieve even that still-low level of growth, the U.S. economy would need to expand at a much faster rate in the second half of the year than its 0.7 percent annual pace in the first six months.

Most economists expect growth of between 1.5 percent and 2 percent in the final two quarters. Though an improvement, it wouldn't be enough to lower the unemployment rate. The rate has been 9 percent or higher in all but two months since the recession officially ended more than two years ago.

"The global economy has entered a dangerous new phase," said Olivier Blanchard, the IMF's chief economist. "The recovery has weakened considerably. Strong policies are needed to improve the outlook and reduce the risks."

The IMF has also lowered its outlook for the 17 countries that use the euro. It predicts 1.6 percent growth this year and 1.1 percent next year, down from its June projections of 2 percent and 1.7 percent, respectively.

The gloomier forecast for Europe is based on worries that euro nations won't be able to contain their debt crisis and keep it from destabilizing the region.

"Markets have clearly become more skeptical about the ability of many countries to stabilize their public debt," Blanchard said. "Fear of the unknown is high."

Overall, the IMF predicts global growth of 4 percent for both years. Stronger growth in China, India, Brazil and other developing countries should offset weaker output in the United States and Europe.

Financial turmoil and slow growth are feeding on each other in both the United States and Europe, IMF officials say. Europe's debt crisis is causing banks to reduce lending and hold onto cash. Sharp stock market drops in the United States over the summer have hurt consumer and business confidence and will likely reduce spending. That slows growth, which leads many investors to shift money out of stocks and into safer investments, such as Treasury bonds.

In Europe, slower growth will make it harder for stressed nations to get their debt under control.

U.S. and European policymakers must act more decisively to cut budget deficits, the IMF said.

European banks need to boost their capital buffers more quickly and beyond new minimum levels set to come into force in 2019, the IMF said.

European banks have seen their stocks slide sharply this summer on fears that their exposure to the government debt of shaky countries like Greece could result in big losses.

Having extra capital would bolster confidence in the banking sector and shield Europe's economy from the impact of jitters in financial markets.

The U.S. economy faces longer-lasting problems that go beyond high gas prices and disruptions caused by the Japan crisis, the IMF said.

Employers are adding few jobs and giving out meager pay raises. Many homeowners owe more on their mortgages than their homes are worth. Banks are keeping credit tight.

All those trends are holding back consumer spending. Unemployment is likely to average 9 percent next year, the IMF's report said, echoing a recent estimate by the Obama administration.

President Barack Obama's proposal to cut taxes and spend more on infrastructure should provide much-needed short-term stimulus, the IMF said. But it needs to be paired with a longer-term plan to reduce the deficit over, the report said. The timing of the budget cuts is key, Blanchard said.

Budget cuts "cannot be too fast or it will kill growth," Blanchard said in a statement. "It cannot be too slow or it will kill credibility."

President Obama on Monday proposed more than $3 trillion of tax increases and spending cuts over 10 years. His proposal will be considered by a congressional panel charged with finding $1.5 trillion in deficit reduction this year.

Both Obama's jobs proposal and the tax increases face stiff opposition from Republicans. They oppose any tax increases and have strongly criticized the president's plans.

The 187-member nation fund conducts economic analysis and lends money to countries in financial distress. It will hold its annual meetings with the World Bank later this week in Washington.

Associated Press Writer Gabriele Steinhauser contributed to this report from Brussels.

 

Low Interest Rates: Perma-Expectations No More at Minyanville 

 

Wall St. Cheat Sheet: Italy Gets Axed, Netflix in Free Fall, Housing Starts Drop Wall St Cheat Sheet  September 20, 2011, ‘The Dow Jones Industrial Average   and U.S. stocks are in the green after Wall Street suddenly got more confident Greece will get aid and Ben Bernanke will be forced to add more welfare, I mean stimulus, to the economy.Standard & Poor’s  cut Italy’s credit rating  late Monday by one level to A from A+, citing weak economic growth and criticizing Rome’s response to the debt crisis. Italian Prime Minister Silvio Berlusconi responded, saying that the move was influenced by “political considerations” and media stories rather than economic reality. While more  building permits  in the U.S. were authorized in August than in July,  housing starts and completions  both declined last month

 

A Fed IOER Cut Could Backfire on Banks, Warns Pimco at The Wall Street Journal

 

Low Interest Rates: Perma-Expectations No More at Minyanville Howard Simons Sep 20, 2011 ‘Regarding interest rates, one major difference between the US and Japan is that their perma-expectations started to disappear in a rising short-term rate environment; US rates have yet to rise. All of the recent news surrounding Steve Jobs’ departure from Apple prompted me to remark, “He has a strange opportunity to read his own obituary.” For the most part, he would have to be pleased at all of the genuine praise heaped on him.

This prompted me to wonder about what I would want on my tombstone other than, “He should’ve known better.” One candidate could be, “He used the word ‘swaption’ on a popular website and got away with it.” I did; most recently in a discussion of the Federal Reserve’s credibility to keep on doing the incredible, keeping interest rates near zero through 2013 (see Is FOMC's Pledge to Keep Short-Term Interest Rates Low Until 2013 Believable?).

Forward Rates When the Future Is Now

Can the swaption conclusion be confirmed by another indicator? Yes; let’s return to a thread last updated in December 2010 (see Is This the End of the Money-Printing Era?) on the relationship between the forward rates between six and nine months and the actual three-month rate as it arrives six months later. If the gap between expectation and reality is high, it means the market has been fooled again in its expectations that low short-term interest rates must be headed in one direction, higher. The opposite has been observed in practice, too; markets can incorrectly price in expectations for low short-term rates and get whacked upside the head by reality.

Where are we today? The expectations gap, marked with roseate columns, is shrinking, although it is still at levels unprecedented until the adoption of zero interest rate policies (ZIRP) in December 2008. This is the same thing as saying forward rates are in the process of declining to levels that will be matched by actual three-month rates six months from now. If you are keeping track of these months by counting on your fingers, we see you.

http://image.minyanville.com/assets/FCK_Jan2011/Image/JimE/Simongraph1.jpg

The chart above uses weekly data. Let’s go down to daily data for the period following the end of QE1. Two dates are marked, one when the debt ceiling debate in July was taking the ominous course toward default and one just after the August FOMC meeting. Both developments put the market on course toward accepting that low rates were going to be here for awhile; the intractable federal debt can be serviced only at low levels without doing something really, really stupid like cutting out-of-control spending.

http://image.minyanville.com/assets/FCK_Jan2011/Image/JimE/Simongraph2.jpg

Where To Now?

Japan has had a much longer experience with these low rates and one attempt, between November 2005 and July 2006, to start moving away from them. One major difference between the U.S. and Japan here is that their perma-expectations started to disappear in a rising short-term rate environment; our rates have yet to rise. Still, the Japanese attempt failed as the hint of higher interest rates caused yen carry trades to start unwinding around the world. Once low interest rates become embedded in an economy, they are very hard to increase without stress.

Despite the failures of QE1 and QE2 and the impending failure of whatever they announce next, the Federal Reserve has convinced itself they are doing something right. How would “They never learned from their mistakes” look on their tombstone?’

 

 

Is This the End of the Money-Printing Era?  Howard Simons Dec 01, 2010 ‘If monetary stimulus ends and we start recognizing losses rather than trying to roll them forward, we can lay the foundation for a new era of prosperity. [Note the date and hence Simons’ wisdom! Yet, the postponement / delay has substantially impaired that ‘prosperity part’ going forward.]

  Of all the negative human emotions, the feeling you have been had is one of the worst. We all have heard the adage, Fool me once, shame on you; fool me twice, shame on me, and if I had a nickel for every time I have heard Wont Get Fooled Again, both former President Bush and I would have a lot of nickels.

Well, it is red-face time: Even though the Federal Reserve has been on a mission-from-wad since August 17, 2007, the date when they executed a premarket rate cut in the target federal funds rate, to 6.00%, and even though they had already executed QE1 and were three months away from hinting at QE2, they managed to drive short-term interest rates unexpectedly low by the end of July. This is after I wrote, Short-Term Interest Rates No Longer Unexpectedly Low in May.

Let
s update that piece in light of what I have to admit was, in technical terms, a pretty good stunt on their part. First, a review: If we take the forward rate of LIBOR between six and nine months (FR6,9); that is, the rate at which we can lock in borrowing for three months starting six months from now, we have the markets hedgeable measure of where rates will be. I cannot emphasize strongly enough that this is not an interest rate forecast, but a rate at which two parties can do business and presumably both make a profit given this locked-in rate. This can be compared to what the actual three-month rate was six months later.

That
expectations gap is depicted in the roseate columns below. The December 2008 and March 2009 dates when the US first went to zero interest rates and quantitative easing, respectively, are marked with orange and violet vertical lines; both the July 30 and the last datum are highlighted with bright-red columns.

http://image.minyanville.com/assets/FCK_May2009/Image/LisaCatch%20September2010/plainsight.jpg

The chart above is done at a weekly frequency and is long-term to demonstrate how unusual the last two years have been in the ability of three-month rates to trade well below the market
s expectations from six months ago. Lets shorten the time frame and move to a daily frequency.

http://image.minyanville.com/assets/FCK_May2009/Image/LisaCatch%20September2010/plainsight2.jpg

Two points are marked in black on this chart, one in mid-July when I identified the markets demand for lower short-term interest rates and the August 27, 2010 date of Ben Bernanke
s Jackson Hole speech promising new asset highs if he could drive money to new lows.

The market took the bait, as we all know, and rallied strongly into the actual announcement of QE2 whereupon a large number of FOMC officials and foreign poo-bahs started wandering around like the somnambulant Lady Macbeth or Alec Guinness
Colonel Nicholson in The Bridge on the River Kwai wondering, What have I done?

You counterfeited the US dollar to a fare-thee-well, that
s what you have done. Didnt you think about this beforehand?

We have seen twice in the past two years how mainlining some high-grade monetary heroin can lead to higher returns for risky assets; this should be about as surprising as learning nitroglycerin can be noisy when handled improperly. Now that we are into QE2 and our friends in the European Monetary Union are about to reprise their May stunt of backstopping Greece by backstopping Ireland -- it will take them a long time to form a circle, sing kumbaya in their various languages and have each of the 16 members of the euro rescued in turn -- we have to wonder if we are at last at the end of the line for monetary stimulus. Methinks we are.

The implications are not as dire as they may sound. If the end of the printing-press era means we do what we should have started doing in 2007 -- recognizing losses rather than trying to roll them forward -- we can lay the foundation for a new era of prosperity. It would be the right thing to do.

 

 

 

IMF Cuts Global Growth Outlook, Warns About U.S. Deficits, Euro Banks at Forbes  The International Monetary Fund dialed back its outlook for the global economy Tuesday, and now projects worldwide growth of 4% in 2011 and 2012, down from 5% in 2010.

Some slowdown was anticipated, but the IMF expected it to come from an unwind of the unprecedented stimulus efforts launched to counteract the financial crisis over the last three years.  Instead, a barrage of economic shocks in 2011 combined with other factors for a worse than anticipated outcome.

Chief economist Olivier Blanchard warned that strong policies are urgently needed to improve the outlook and to reduce the risks, and the IMF said the economy is in a dangerous new phase marked by weaker activity and a sharp decline in confidence.

 

Gallery: The IMFs 2012 Growth Forecast

Tuesdays report comes as the Federal Reserve begins a two-day meeting at which Chairman Ben Bernanke is likely to meet resistance if he pushes for further intervention along the lines of additional Treasury purchases, following an August meeting that saw three dissents from the central banks decision to target a 0% benchmark interest rate until mid-2013.

Meanwhile, European leaders are still trying to find a solution that will keep Greece from defaulting and keeping the debt crisis outside of core Europe. (See Europe Needs A TARP.)

One could be forgiven if it seems like pundits and policymakers are talking out of both sides of their mouth, urging further aid for scuffling economies while at the same time preaching that countries need to get religion on long-term debts.

Gallery: The IMFs 2012 Growth Forecast

The IMF offered its view on the forceful actions that policymakers in developed economies should undertake:

In the euro area, banks must be made stronger, not only to avoid deleveraging and maintain growth, but also, and more importantly, to reduce risks of vicious feedback loops between low growth, weak sovereigns, and weak banks. This requires additional capital buffers, from either private or public sources.

The top priorities in the United States include devising a medium-term fiscal consolidation plan to put public debt on a sustainable path and to implement policies to sustain the recovery, including by easing the adjustment in the housing and labor markets. The new American Jobs Act would provide needed short-term support to the economy, but it must be flanked with a strong medium-term fiscal plan that raises revenues and contains the growth of entitlement spending.

In Japan, the government should pursue more ambitious measures to deal with the very high level of public debt while attending to the immediate need for reconstruction and development in the areas hit by the earthquake and tsunami.

The updated forecast anticipates U.S. growth of just 1.5% in 2011 and 1.8% in 2012, with euro area growth of 1.6% this year falling to 1.1% next year. Emerging and developing economies will also grow slower than previously anticipated, but remain the workhorses of global growth, the IMF anticipates. China is expected to grow at a better than 9% clip this year and next, while Brazil is expected to maintain annual growth better than 3.5%.

Gold shot higher on the IMF
s sober growth outlook, adding $24.50 to $1,803.40 an ounce. U.S. stocks righted themselves after a choppy start, buy fell from their best levels of the day in the final hour of trade with the Dow Jones industrial average up 57 points to 11,458 and the S&P 500 2 points higher at 1,206. The Nasdaq slipped into the red, down 16 points, to 2,597.

Gallery: The IMFs 2012 Growth Forecast

Financial stocks, a major drag on the market seemingly every time there is a negative headline out of Europe, sank as the broader market pulled back. Bank of America, JPMorgan Chase and Morgan Stanley surrendered earlier gains, while Wells Fargo and American Express held onto gains better than 1.75%.

http://blogs-images.forbes.com/steveschaefer/files/2011/09/IMF-Growth-Outlook.jpg  

 

 

Morning Snapshot  Sep 20th, 2011 08:32 by News (USAGOLD) ..The IMF slashed both global and US growth expectations this morning: The IMF now believes the global economy will grow just 4% this year and next, a negative revision from their June estimates of 4.3% for 2011 and 4.5% next year. IMF cut its US growth forecasts to 1.5% for this year, versus 2.5% previously and 1.8% for 2012, versus 2.7% previously. The IMFs confirmation of growth risks intensifies expectations that the Fed will be forced to offer additional accommodations when the 2-day FOMC meeting concludes tomorrow.

US housing starts -5.0% to 571k pace in Aug, well below market expectations of 593k, vs negative revised 601k in Jul.
Canada leading indicator flat in Aug, above market expectations of -0.1%, vs +0.1% in Jul.
Canada wholesale trade +0.8% in Jul, just above expectations, vs flat in Jun.
Switzerland trade balance CHF0.8 bln in Aug, vs 2.825 bln in Jul.
Sweden GDP Final (sa) revised down to 0.9% in Q2, just below market expectations, vs 1.0% previously.
Italy industrial orders (sa) +1.8% m/m in Jul, vs 4.1% in Jun; 6.5% y/y.
Germany PPI -0.3% m/m in Aug, below market expectations of 0.2%, vs 0.7% in Jul; 5.5% y/y.
Germany ZEW economic sentiment falls to -43.3 in Sep, below market expectations, vs -37.6 in Jul; Current situation drops to 43.6 from 53.5.
Japan leading index (revised) 2.6 m/m in Jul, vs 2.7 previously.

 

 

Eurozone debt crisis threatens banks, rest of world: IMF Economic Times | The eurozone’s debt mountain poses a threat to the world economy.


 

 

Americas debt woe is worse than Greeces Sep 21st, 2011 News (CNN) Our government is utterly broke. There are signs everywhere one looks. Social Security can no longer afford to send us our annual benefit statements. The House can no longer afford its congressional pages. The Pentagon can no longer afford the pension and health care benefits of retired service members. NASA is no longer planning a manned mission to Mars. Were broke for a reason. Weve spent six decades accumulating a huge official debt (U.S. Treasury bills and bonds) and vastly larger unofficial debts to pay for Social Security, Medicare, and Medicaid benefits to todays and tomorrows 100 million-plus retirees. The governments total indebtedness its fiscal gap now stands at $211 trillion, by my arithmetic. [source]


$16 muffins, $8 coffee served in Justice audit

 

Holders of Sovereign Debt Sep 21st, 2011 News by Global Macro Monitor (CreditWritedowns.com) — Here’s a great chart just released by the International Monetary Fund. Note that almost half — 47 percent – of the US$14.7 trillion U.S. federal government debt is held by the Federal Reserve and the government itself, such as the Social Security trust fund. Add to that the 22 percent foreign official holdings (mainly central banks) and almost 70 percent of the debt of the U.S. government is held by non-market/non-profit oriented investors. Stunning! [source]
http://www.albertpeia.com/holders-of-sovereign-debt.jpg
PG View: I would argue that “non-market/non-profit oriented investors” own the vast majority of government debt, because the risk/reward ratios have been so grossly distorted by government and central bank interventions that real investors have no interest is such assets. And it sure looks like official efforts to continue mispricing risk are going to continue.

 

PIIGS Lifeline Rallies Stocks -- For Now Quentin Fottrell  { Greecy italy, shitty italy, says Bersusconi! How bout a new name ShItaly [ just first page of google search berlusconi, shitty italy  About 231,000 results (0.15 seconds) ]: Berlusconi vows to leave 'shitty' Italy in conversation recorded by ...www.guardian.co.uk/world/2011/.../berlusconi-vows-leave-shitty-italy...

 

U.S. Household Worth Declines by $149 Billion Sep 16th, 2011 14:32 by News (Bloomberg) Household wealth in the U.S. dropped in the second quarter for the first time in a year, hurt by falling share prices and declining home values.Net worth for households and non-profit groups decreased by $149 billion, a 1 percent drop at an annual pace, to $58.5 trillion, the Federal Reserve said today in its flow of funds report from Washington. It rose at a 7.4 percent rate in the previous three months. Housing wealth decreased for a fourth consecutive quarter from April to June. [source]

US taxpayers could be on hook for Europe bailout Sep 16th, 2011 13:01 by News (MSNBC) The U.S. is coming to Europes financial rescue.So far, Americas role is fairly limited. But if the crisis continues to grow and the U.S. takes on a wider role, U.S. consumers and taxpayers could feel a bigger impact. The biggest exposure could come from Americas status as the single largest source of money for the International Monetary Fund.The latest round of American financial assistance came Thursday with a promise by the Federal Reserve to swap as many dollars for euros as European bankers need. In the short run, those transactions wont have much impact because the central banks are simply swapping currencies of equal value. If the move helps avert a wider crisis, it could help spare the global economy from another recession.But over the long term, consumers could feel the impact of central bankers flooding the financial system with cash, according to John Ryding, chief economist at RDQ Economics.[source]

A Band-Aid for a cancer patient Sep 16th, 2011 12:48 by News (papermoneycollapse.com)
This was another hectic week for financial markets, and nerves were calmed somewhat over the past 24 hours with another liquidity injection from the central banks this time the provision of dollars from the U.S. Fed channelled through a few other central banks, most importantly the ECB. This is certainly not a solution but again the doctoring of symptoms. Pumping ever more fiat money into the system to avoid or rather postpone a much needed recalibration will not solve the underlying malaise. Four years into the crisis the banks still need emergency funding. That is a damning indictment that financial structures are far from sustainable.A default of Greece now appears very likely. This is a positive development. Positive as it points toward shrinkage toward smaller debt, toward a smaller Greek state, toward an important lesson for banks: Dont think that lending to the state is without risk!The biggest risk to the euro is not a Greek default but the markets waking up to the bleak long-term outlook for the solvency of the core, Germany and France.Thus, we will get some liquidation (Greek debt) but also some re-liquefying (big banks). It will not be the end of the euro but not the end of the financial crisis either.[source]

PG View: I concur with this assessment. The contingency plan to protect the German banks is presumably in place. Liquidity lines have been established. Payment of the next bailout tranche for Greece has been forestalled until October. Seems like Greece is about to get pitched under the bus

Consumer Hope for Future Hits Lowest Level Since 1980 Sep 16th, 2011 10:52 by News (CNBC). [source]

China to ‘liquidate’ US Treasuries, not dollars Sep 16th, 2011 10:21 by News By Ambrose Evans-Pritchard (The Telegraph) — The debt markets have been warned.A key rate setter-for China’s central bank let slip – or was it a slip? – that Beijing aims to run down its portfolio of US debt as soon as safely possible.“The incremental parts of our of our foreign reserve holdings should be invested in physical assets,” said Li Daokui at the World Economic Forum in the very rainy city of Dalian – former Port Arthur from Russian colonial days.“We would like to buy stakes in Boeing, Intel, and Apple, and maybe we should invest in these types of companies in a proactive way.”“Once the US Treasury market stabilizes we can liquidate more of our holdings of Treasuries,” he said.[source]

PG View: Out of US Treasuries and into more physical assets. Physical assets like gold perhaps?

Europe Ministers Rule Out Stimulus, Offer No Bank Aid Sep 16th, 2011 09:49 by News (Bloomberg) ..

PG View: Basically, another meeting with no substantive moves to alter the course that Europe is on. There will be no fiscal stimulus. Were going to defer any decision on Greece until next month, when the country will be once again on the precipice of default.



 

The Fed’s shadow TARP News by Sen. Jim DeMint August 31 (Politico) — ‘In the run-up to the financial crisis, the Federal Reserve fueled the housing bubble with its easy money policy. Now, we know that after the crisis struck, the Fed secretly propped up elite bankers all the way from Wall Street to Brussels to the Central Bank of Libya.A Bloomberg news investigation found that while the Treasury Department was pumping $700 billion into banks under the Troubled Asset Relief Program, the Fed was covertly operating its own bailout program – the biggest in American history. The Fed’s Shadow TARP issued $1.2 trillion in loans to domestic and foreign banks from 2007 to 2010, far more than Congress authorized Treasury to spend under TARP.…Congress eventually approved a partial audit that showed the Fed extended an incredible $16 trillion – more than the entire U.S. economy – in aggregate lending authority to foreign and domestic banks from the end of 2007 to the middle of 2010…After the second round of quantitative easing was announced, Chinese Vice Finance Minister Zhu Guangyao said America “does not recognize, as a country that issues one of the world’s major reserve currencies, its obligation to stabilize capital markets.”German Finance Minister Wolfgang Schaeuble was more blunt, calling the Fed “clueless.” [source]’

Global Recession Likely, Depression Possible: Economist  Aug 31st, 2011 by News (CNBC) Global recession in 2012 is 65 to 75 percent certain and could deteriorate into a lengthy depression, Roger Nightingale, economist and strategist at RDN Associates, told CNBC.The peak rate of growth for the worlds economy occurred more than 12 months ago and it carries on going down, Nightingale said. We are probably going into negative territory around spring of next year; it is not for certain, but that is the most likely scenario. I would say the recession is 65 percent, 75 percent certain.The economist warned that should recession kick in, the global economy might be too weak to generate any GDP growth for years, or even decades.

Morning Snapshot News August 31 (USAGOLD) — ‘Gold is modestly lower this morning, but still generally well bid amid rising expectations that the Fed is preparing to ease once again. The St. Louis Fed’s Bullard was hinted in the Japanese press that the Fed may indeed embark on QE3, depending on upcoming data. Bullard added a caveat, saying that it should be confirmed that inflation has eased first. These comments come on the heals of very dovish Fedspeak by Chicago Fed’s Evans on Tuesday.

Todays weaker that expected ADP employment index may further temper expectations for Fridays August nonfarm payrolls report. Consensus is running around +93k, following the +117k print for Jul. The unemployment rate is expected to remain unchanged at 9.1%.

US ADP employment index rose 91k in Aug, below market expectations of 100k, vs negative revised 109k in Jul.
Canada Q2 GDP -0.4%, below market expectations of +0.1%, vs +3.6% in Q1. GDP +0.2% in Jun, vs -0.3% in May.
UK GfK consumer confidence fell to -31 in Aug, above market expectations of -33, vs -30 in Jul.
Italy CPI EU Harmonized (prelim) rose to 2.2% y/y in Aug; +0.3% m/m.
Italy PPI rose to 4.7% y/y in Jul, vs 4.3% in Jun; +0.3% m/m.
German retail sales unch m/m in Jul, better than market expectations of -2.0%, vs big downward revision to 4.5% in Jun; -1.6% y/y.
German unemployment rate unchanged at 7.0% (sa) in Aug, in-line with expectations.
Eurozone unemployment rate unchanged in Jul at 10.0%, above market expectations, vs upward revised 10.0% in Jun.
South Korea industrial production +3.8% y/y in Jul, vs 6.5% in Jun.
Japan industrial production (prelim) +0.6% m/m (sa) in Jul, well below market expectations, vs 3.8% in Jun.
Japan Markit/JMMA PMI falls to 51.9 in Aug, vs 52.1 in Jul.
Japan construction orders +5.7% y/y in Jul, vs +6.0% in Jun.

 

 

25 Signs That The Financial World Is About To Hit The Big Red Panic Button The Economic Collapse | Most of the worst financial panics in history have happened in the fall.  Wednesday, August 31, 2011

Most of the worst financial panics in history have happened in the fall.  Just recall what happened in 1929, 1987 and 2008.  Well, September 2011 is about to begin and there are all kinds of signs that the financial world is about to hit the big red panic button.  Wave after wave of bad economic news has come out of the United States recently, and Europe is embroiled in an absolutely unprecedented debt crisis.  At this point there is a very real possibility that the euro may not even survive.  So what is causing all of this?  Well, over the last couple of decades a gigantic debt bubble has fueled a tremendous amount of fake prosperity in the western world.  But for a debt bubble to keep going, the total amount of debt has to keep expanding at an ever increasing pace.  Unfortunately for the global economy, sources of credit are starting to dry up.  That is why you hear terms like credit crisis and credit crunch thrown around so much these days.  Without enough credit to feed the monster, the debt bubble is going to burst.  At this point, virtually the entire global economy runs on credit, so when this debt bubble bursts things could get really, really messy.

Nations and financial institutions would never get into debt trouble if they could always borrow as much money as they wanted at extremely low interest rates.  But what has happened is that lending sources are balking at continuing to lend cheap money to nations and financial institutions that are already up to their eyeballs in debt.

For example, the yield on 2 year Greek bonds is now over 40 percent.  Investors dont trust the Greek government and they are demanding a huge return in order to lend them more money.

Throughout the financial world right now there is a lot of fear.  Lending conditions have gotten very tight.  Financial institutions are not eager to lend money to each other or to anyone else.  This credit crunch is going to slow down the economy.  Just remember what happened back in 2008.  When easy credit stops flowing, the dominoes can start falling very quickly.

 

Sadly, this is a cycle that can feed into itself.  When credit is tight, the economy slows down and more businesses fail.  That causes financial institutions to want to tighten up things even more in order to avoid the bad credit risks.  Less economic activity means less tax revenue for governments.  Less tax revenue means larger budget deficits and increased borrowing by governments.    But when government debt gets really high that can cause huge economic problems like we are witnessing in Greece right now.  The cycle of tighter credit and a slowing economy can go on and on and on.

I spend a lot of time talking about problems with the U.S. economy, but the truth is that the rest of the world is dealing with massive problems as well right now.  As bad as things are in the U.S., the reality is that Europe looks like it may be ground zero for the next great financial crisis.

At this point the EU essentially has three choices.  It can choose much deeper economic integration (which would mean a huge loss of sovereignty), it can choose to keep the status quo going for as long as possible by providing the PIIGS with gigantic bailouts, or it can choose to end of the euro and return to individual national currencies.

Any of those choices would be very messy.  At this point there is not much political will for much deeper economic integration, so the last two alternatives appear increasingly likely.

In any event, global financial markets are paralyzed by fear right now.  Nobody knows what is going to happen next, but many now fear that whatever does come next will not be good.

The following are 25 signs that the financial world is about to hit the big red panic button.

#1 According to a new study just released by Merrill Lynch, the U.S. economy has an 80% chance of going into another recession.

#2 Will Bank of America be the next Lehman Brothers?  Shares of Bank of America have fallen more than 40% over the past couple of months.  Even though Warren Buffet recently stepped in with 5 billion dollars, the reality is that the problems for Bank of America are far from over.  In fact, one analyst is projecting that Bank of America is going to need to raise 40 or 50 billion dollars in new capital.

#3 European bank stocks have gotten absolutely hammered in recent weeks.

#4 So far, major international banks have announced layoffs of more than 60,000 workers, and more layoff announcements are expected this fall.  A recent article in the New York Times detailed some of the carnage.

A new wave of layoffs is emblematic of this shift as nearly every major bank undertakes a cost-cutting initiative, some with names like Project Compass. UBS has announced 3,500 layoffs, 5 percent of its staff, and Citigroup is quietly cutting dozens of traders. Bank of America could cut as many as 10,000 jobs, or 3.5 percent of its work force. ABN Amro, Barclays, Bank of New York Mellon, Credit Suisse, Goldman Sachs, HSBC, Lloyds, State Street and Wells Fargo have in recent months all announced plans to cut jobs — tens of thousands all told.

#5 Credit markets are really drying up.  Do you remember what happened in 2008 when that happened?  Many are now warning that we are getting very close to a repeat of that.

#6 The Conference Board has announced that the U.S. Consumer Confidence Index fell from 59.2 in July to 44.5 in August.  That is the lowest reading that we have seen since the last recession ended.

#7 The University of Michigan Consumer Sentiment Index has fallen by almost 20 points over the last three months.  This index is now the lowest it has beenin 30 years.

#8 The Philadelphia Feds latest survey of regional manufacturing activity was absolutely nightmarish.

The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, decreased from a slightly positive reading of 3.2 in July to -30.7 in August. The index is now at its lowest level since March 2009

#9 According to Bloomberg, since World War II almost every time that the year over year change in real GDP has fallen below 2% the U.S. economy has fallen into a recession.

Since 1948, every time the four-quarter change has fallen below 2 percent, the economy has entered a recession. It’s hard to argue against an indicator with such a long history of accuracy.

#10 Economic sentiment is falling in Europe as well.  The following is from a recent Reuters article.

A monthly European Commission survey showed economic sentiment in the 17 countries using the euro, a good indication of future economic activity, fell to 98.3 in August from a revised 103 in July with optimism declining in all sectors.

#11 The yield on 2 year Greek bonds is now an astronomical 42.47%.

#12 As I wrote about recently, the European Central Bank has stepped into the marketplace and is buying up huge amounts of sovereign debt from troubled nations such as Greece, Portugal, Spain and Italy.  As a result, the ECB is alsomassively overleveraged at this point.

#13 Most of the major banks in Europe are also leveraged to the hilt and have tremendous exposure to European sovereign debt.

#14 Political wrangling in Europe is threatening to unravel the Greek bailout package.  In a recent article, Satyajit Das described what has been going on behind the scenes in the EU.

The sticking point is a demand for collateral for the second bailout package. Finland demanded and got Euro 500 million in cash as security against their Euro 1,400 million share of the second bailout package. Hearing of the ill-advised side deal between Greece and Finland, Austria, the Netherlands and Slovakia also are now demanding collateral, arguing that their banks were less exposed to Greece than their counterparts in Germany and France entitling them to special treatment. At least, one German parliamentarian has also asked the logical question, why Germany is not receiving similar collateral.

#15 German Chancellor Angela Merkel is trying to hold the Greek bailout deal together, but a wave of anti-bailout hysteria is sweeping Germany, and nowaccording to Ambrose Evans-Pritchard it looks like Merkel may not have enough votes to approve the latest bailout package.

German media reported that the latest tally of votes in the Bundestag shows that 23 members from Mrs Merkel’s own coalition plan to vote against the package, including twelve of the 44 members of Bavaria’s Social Christians (CSU). This may force the Chancellor to rely on opposition votes, risking a government collapse.

#16 Polish finance minister Jacek Rostowski is warning that the status quo in Europe will lead to collapse.  According to Rostowski, if the EU does not choose the path of much deeper economic integration the eurozone simply is not going to survive much longer.

“The choice is: much deeper macroeconomic integration in the eurozone or its collapse. There is no third way.”

#17 German voters are against the introduction of Eurobonds by about a 5 to 1 margin, so deeper economic integration in Europe does not look real promising at this point.

#18 If something goes wrong with the Greek bailout, Greece is financially doomed.  Just consider the following excerpt from a recent article by Puru Saxena.

In Greece, government debt now represents almost 160% of GDP and the average yield on Greek debt is around 15%. Thus, if Greece’s debt is rolled over without restructuring, its interest costs alone will amount to approximately 24% of GDP. In other words, if debt pardoning does not occur, nearly a quarter of Greece’s economic output will be gobbled up by interest repayments!

#19 The global banking system has a total of 2 trillion dollars of exposure to Greek, Irish, Portuguese, Spanish and Italian debt.  Considering how much the global banking system is leveraged, this amount of exposure could end up wiping out a lot of major financial institutions.

#20 The head of the IMF, Christine Largarde, recently warned that European banks are in need of urgent recapitalization.

#21 Once the European crisis unravels, things could move very rapidly downhill.  In a recent article, John Mauldin put it this way.

It is only a matter of time until Europe has a true crisis, which will happen faster – BANG! – than any of us can now imagine. Think Lehman on steroids. The U.S. gave Europe our subprime woes. Europe gets to repay the favor with an even more severe banking crisis that, given that the U.S. is at best at stall speed, will tip us into a long and serious recession. Stay tuned.

#22 The U.S. housing market is still a complete and total mess.  According to a recently released report, U.S. home prices fell 5.9% in the second quarter compared to a year earlier.  That was the biggest decline that we have seen since 2009.  But even with lower prices very few people are buying.  According to the National Association of Realtors, sales of previously owned homesdropped 3.5 percent during July.  That was the third decline in the last four months.  Sales of previously owned homes are even lagging behind last years pathetic pace.

#23 According to John Lohman, the decline in U.S. economic data over the past three months has been absolutely unprecedented.

#24 Morgan Stanley now says that the U.S. and Europe are hovering dangerously close to a recession and that there is a good chance we could enter one at some point in the next 6 to 12 months.

#25 Minneapolis Fed President Narayana Kocherlakota says that he is so alarmed about the state of the economy that he may drop his opposition to more monetary easing.  Could more quantitative easing by the Federal Reserve soon be on the way? …’

 

 

 

If We Punished Executives the Way China Does, We Wouldn't Have Any Left Minyanville Justin Rohrlich [ I think we should consider this approach, starting with the frauds on wall street, which of course in the sense of all roads lead to, will unearth other criminals deserving of such treatment since their corruption has had life/death effects on the general populace through no fault of their own!] Here in the United States, we've certainly gotten far more than we ever bargained for when it comes to corruption in the collective C-suite.

A few have been punished. Many have not. In China, though, they kill their Dennis Kozlowskis.

Yesterday, Li Hua, former chairman and general manager of the Sichuan division of China Mobile (CHL), was sentenced to death for accepting more than $2.5 million in bribes.

The Intermediate People
s Court in the southwestern city of Panzhihua handed down the verdict with a two-year reprieve, meaning if Li behaves himself, he could skate with a mere slap on the wrist -- life in prison.

The New York Times points out that the "same type of sentence was handed down last month for one of the company
s other former executives, Zhang Chunjiang, who once served as vice chairman of China Mobile, which also included the confiscation of his personal assets and the removal of his political rights.

He was convicted of accepting more than $1.15 million in bribes while working at a series of state-run telecom companies from 1994 to 2009. At least six other executives from China Mobile are under investigation in corruption cases. (It may be worth noting that last week, China Mobile revealed that it
met several times with Steve Jobs to talk about Apple (AAPL) making an iPhone that would support its proprietary 3G standard." Currently, China Unicom (CHU) is the only carrier in China offering the device. )

When Chen Tonghai, former chairman of Sinopec (SNP), was sentenced to death for bribery in 2009, he was also granted a two-year reprieve after confessing to his crimes. According to state-run news service Xinhua, the court cut Chen a break of sorts, stating that for "crimes involving 'extremely large sums of money,' the suspects should be sentenced to death, but 'if they confess or contribute to the handling of relevant cases, they should not get an immediate death penalty in principle.'"

"Chen Tonghai's sentence is a result of people's court's criminal policies and reflects both severe punishment of corruption and the policy of tempering justice with mercy," Xinhua said.

But, Chinese justice lacks a particularly even hand. State-run news service Xinhua explains why certain executions are performed more hastily than others:

Corrupt officials, such as former vice-chairman of the Standing Committee of the National People's Congress Cheng Kejie who was executed in September 2000, former vice governor of Anhui Province Wang Huaizhong who was given a lethal injection in February 2004, and former food and drug administration head Zheng Xiaoyu, executed in July 2007, got immediate death sentences because they "refused to plead guilty" and their bribe-taking "caused extremely serious social impact.”


This spring, China revised the law, when authorities deemed 13 non-violent economic offenses to no longer be executable crimes, though Amnesty International called it "legal housekeeping," as the infractions were
all seldom if ever punished by execution to begin with.

Andrew Yang of the Laogai Research Foundation -- established in 1992 by Harry Wu, a democracy activist and survivor of the laogai, China
s system of forced-labor prison camps -- provided us with a translation of the official list (which just so happens not to include bribery):

And finally, simple theft.

However, the Chinese leadership doesn
t rely solely on the legal system to control the business community at large.

From Russell Lee Moses, writing for the Wall Street Journal
s China Real Time Report:

After weeks of taking jabs to the chin from an angry microblogging public, leading forces in the [Chinese Communist] Party have decided to punch back. Politburo member Liu Qi visited the Beijing offices of Sina.com’s (SINA) popular microblogging service Weibo earlier this week and impressed upon the staff there the need for “the Internet’s healthy development”—code words for staying away from topics which attack the rule of the Communist Party or hold officials up for public ridicule.

[…]

Liu’s strong-arm visit follows a series of admonitions in the Party media, warning journalists to get back into the government fold and to play the role of conveying to a skeptical society that cadres care.
The hardline view, expressed in a recent article posted in the “People’s Forum” run by the official People’s Daily, is that microblogging is best confronted, not by embracing it as a way for the public to supervise the Party, but by the Party’s “use [of] the mass media to tell the truth.”


By all accounts, corruption is so thoroughly ingrained in the operating culture of Chinese officialdom, the roles in this situation seem to be comically reversed.

“There is really no way to control the corruption among Chinese officials,” Yang told me in a telephone interview. “If bribery was not punishable by death, corrupt officials would be even bolder in grabbing the public’s wealth. And without a free press, the behavior of officials cannot be monitored, so corruption simply runs wild.”

James H. Zimmerman, Jr., Amnesty International's Country Specialist for China, says the execution of government officials for bribery “is fairly common.”

In an email message, Zimmerman pointed out that “most have been politically isolated, so they have no one coming to their defense.”

The majority of China’s citizenry certainly isn’t.

As explained by Teng Biao of China’s Economic Observer (and translated by Worldcrunch.com), “China is the global leader for the number of corrupt officials who are sentenced to death, and actually executed each year. But, judging by the seemingly endless ‘public demand’ for this kind of punishment and the surging popular anger, it would seem that there is actually not enough of it.”

And Joshua Rosenzweig, former senior researcher at the Di Hua Foundation, a human rights organization based in San Francisco and Hong Kong, told the Washington Post that “there still is a very strong sense that corrupt officials must die among the Chinese population at large. The revulsion for that offense is so strong that there would be a potential political cost to eliminating the death penalty for corruption."

Not altogether surprisingly, the specter of death doesn’t necessarily act as a deterrent.

In 2009, a six-year old schoolgirl in southern China was asked by a television reporter what she wanted to become when she grew up.

"When I grow up I want to be an official," she replied.

"What kind of official?" asked the interviewer.

"A corrupt official because corrupt officials have a lot of things," she said.’

 

 

 

BofA Warns Upcoming “Desperate Measures” By Authorities Will Result In Another 2008 Market Collapse Zero Hedge |

 

 

New national debt data: $4.247 Trillion in 945 days L.A. Times


Home sales approach worst point in half a century Bloomberg


Bloomberg reveals massive corruption in the private Federal Reserve Madison Ruppert


In Baltimore, homes for $10,000 — and less Baltimore Sun | Housing prices continue to fall through much of the region.

Social Security disability on verge of insolvency

 

 

 

MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows at Barrons.com Murray Coleman ‘Stocks continue to slump today, reeling from a raft of ugly data and growing concerns about European sovereign debt. But how far lower can ETFs tracking key benchmarks slide? MKM Partners’ technical analyst Katie Stockton sees a range around $110 a share for the SPDR S&P 500 ETF (SPY) as the next level of support. That would represent about a 3-4% drop from current levels. SPY most recently was trading down 4.6% at $114.09 a share. “I do expect that level ($110) to be re-tested in coming weeks,” Stockton said in an interview, noting that level had been tested early last week and held. The problem is that her indicators show that blue chip U.S. stocks still could have a ways to go. “The market doesn’t appear oversold at this point, so the market looks like it could go lower,” Stockton said. Perhaps the most important level for SPY is the February 2010 low of $105 a share, roughly 8% below current levels. “That level hasn’t been broken on a decisive basis yet,” Stockton noted. “That’s the number we’re really keeping a close eye on after what’s taken place today.” Meanwhile, the tech-heavy Nasdaq’s near-term backdrop looks just as volatile, notes Michael Ashbaugh in his Technical Trader investment letter. With Thursday’s downturn, the benchmark has knifed straight through initial support at 2,493 placing it back within August-crash territory. In the near-term, the veteran technician expects to see modest support at around 2,357 — its August closing low. That’s around 0.6% from where the index’s trading at now.’

 

 

 

Stocks Plunge, Gold Surges on Global Concern Aug 18th, 2011 14:30 by News (Bloomberg) — ‘Stocks plunged while Treasuries rallied, pushing yields to record lows, amid growing signs the economy is slowing and speculation that European banks lack sufficient capital. Gold climbed to a record, while oil led commodities lower. The Standard & Poor’s 500 Index tumbled 4.5 percent to 1,140.74 at 4 p.m. in New York. The Stoxx Europe 600 Index lost 4.8 percent in its worst plunge since March 2009 and Germany’s DAX Index slid 5.8 percent, the most since 2008. Ten-year Treasury yields fell as much as 19 basis points to 1.97 percent as rates on similar-maturity Canadian and British debt also reached all-time lows. The dollar gained versus 15 of 16 major peers, strengthening 0.6 percent to $1.4336 per euro. Gold futures rallied as much as 2.1 percent to $1,832 an ounce, while oil slid 5.9 percent.’ European Shares Fall Most Since March 2009 Aug 18th, 2011 12:01 by News (CNBC) — ‘European equities suffered their biggest daily fall in two and a half years on Thursday, as a slew of data cast further doubt on the strength of the recovery in the world’s biggest economy. German shares lost most, with traders citing the effects of a short-selling ban on financial stocks in other parts of Europe and intensifying worries about politicians’ lack of a plan to address the euro zone sovereign debt crisis. The European banking sector, exposed to the euro zone debt crisis, fell 6.6 percent and is down 29.7 percent this year.’

 

 

 

 

Jobless Claims, Inflation Rise More Than Expected CNBC | New U.S. claims for unemployment benefits rose more than expected last week.  Chavez Nationalizes Venezuela’s Gold Industry, Recalls Hundreds of Tons of Gold Held Abroad, May Cause a Scramble for Physical Gold From JP Morgan and Others    SEC destroyed crucial probe data: senator AFP | The SEC may have destroyed documents related to possible violations by major banks and hedge funds.  World stock markets plunge as fears of recession intensify guardian.co.uk   Don’t Swallow the FED’s $16 Trillion Suicide Pill Michael McKay | The Federal Reserve secretly kept the Phony-Fiat-Money-System afloat by “lending” out $16 Trillion.   GALLUP: Americans satisfied with ‘the way things are going’ — 11%! Gallup | Americans’ satisfaction with the way things are going in the United States has fallen back to 11%.

 

 

 

Stocks: Mutual Fund Investors Hate Them the Most Since Oct. 2008 at The Wall Street Journal 

Rick Perry on Ben Bernanke: Fed Chairman's Money Printing Policies Are "Almost Treasonous"at Minyanville 
The Loss of Momentum in the Markets All Too Apparent Now Bob Chapman

 

 

 

Venezuela Plans to Move Reserve Funds Aug 17th, 2011 10:35 by News August 17 (The Wall Street Journal) —‘ Venezuela plans to transfer billions of dollars in cash reserves from abroad to banks in Russia, China and Brazil and tons of gold from European banks to its central bank vaults, according to documents reviewed Tuesday by The Wall Street Journal.The planned moves would include transferring $6.3 billion in cash reserves, most of which Venezuela now keeps in banks such as the Bank for International Settlements in Basel, Switzerland, and Barclays Bank in London to unnamed Russian, Chinese and Brazilian banks, one document said.Venezuela also plans to move 211 tons of gold it keeps abroad and values at $11 billion to the vaults of the Venezuelan Central Bank in Caracas where the government keeps its remaining 154 tons of bullion, the document says. PG View: There have been plenty of reasons to question President Chávez’s sanity in recent years, but seeking to lessen Venezuela’s dependence on the dollar and removing assets, particularly their gold, from Western banks is actually pretty prudent. It will be interesting to see how forthcoming those Western banks will be in facilitating the repatriation of Venezuela’s gold.’ Chavez Plans on Nationalizing Gold Industry Fox Business | “I have here the laws allowing the state to exploit gold and all related activities.”

 

 

Putin sets sights on Eurasian economic union Financial Times | Twenty years after the Soviet Union collapsed, Vladimir Putin, the Russian prime minister, may not, as is sometimes alleged, be trying to recreate it.

 

Putting The Cart On Top Of The Horse, Or Why Heaping Fiscal “Stimulus” Upon “Stimulus” Is Suicide For America Zero Hedge | Feeding the government monster is, contrary to what Krugman and other Keynesians will tell you, in the current regime of coincident monetary irrigation, an exercise in futility.

 

 

 

Merkel/Sarkozy press conference: No chance of eurobond anytime soon. No expansion of ESFS. Move toward common governance.  Financial  transaction tax. Aug 16th, 2011 10:37 by News EUR rallied then retreated. Germany adds to eurozone’s woes Aug 16th, 2011 10:13 by News August 16 (Financial Times) — German economic growth slowed to a near standstill in the second quarter of this year, dealing a further, unexpected blow to the crisis-hit eurozone.The surprisingly-sharp deceleration in activity in Europe’s largest economy hit overall eurozone growth and intensified fears about the global slowdown. It also threatened to complicate the challenge facing the region’s policymakers as they seek to combat its escalating debt crisis.

 

 

Stocks Slip On Concern Over Europe's Debt, U.S. Data

Dell braces investors for a bumpy road 16 Aug 2011 Dell makes a case on why it can better weather an upcoming storm with more higher margin businesses...

S&P says sell Google's shares after Motorola deal

Ron Paul on Texas Straight Talk: U.S. Government Debt Is Becoming Worthless

 

 

 

 

How Low Will Stocks Go? at Minyanville  By MoneyShow.com Aug 12, 2011  Up 500 points one day, down 500 the next. That’s the way the market is these days.

On Wednesday, the Dow Jones Industrial Average plummeted 520 points, erasing all of Tuesday’s gains from the Federal Reserve’s decision to keep short-term interest rates near zero. As of noon Thursday, it’s up about 250.

By Wednesday’s close, the Dow had lost 2,000 points, or more than 15% of its value, since July 21. The S&P 500 and Nasdaq Composite indexes lost slightly more during that time. All three are perilously close to the 20% decline from the late April-early May top that many pundits (particularly in the media) use as a rule of thumb to determine a bear market.

Unfortunately, I think stocks have still lower to go. How low? Later in this column I’ll tell you what some respected technical analysts think.

But let’s start with the fundamentals.

First, the economy. Need I say more? Jobless figures were somewhat better in June, but economists have revised downward their estimates of GDP growth. Measures of consumer confidence are pretty weak.

And did anybody get the real message the Federal Open Market Committee put out Tuesday? The economy is so sick, the Fed is willing to guarantee exceptionally low rates for two years! I’ve never seen the Fed telegraph its moves so far in advance, and the FOMC’s statement said over and over again how lousy the economy is.

Meanwhile, the open rebellion by three voting FOMC members makes it highly unlikely we’re going to see another round of quantitative easing anywhere near as big as the last two.

Third, there’s the debt crisis. Everyone agrees the European Union just doesn’t have the money to bail out Italy and Spain, its third and fourth largest economies, if it comes to that. Rumors are swirling about the health of French banks and the safety of France’s AAA rating.

And the debt-ceiling standoff here, which culminated in S&P downgrading the US’s AAA credit rating, means more government action to “fix” the economy is likely off the table.

So there’s no way President Obama will get much additional stimulus. He’s desperately trying to extend unemployment benefits and the payroll tax holiday for another year, but that looks pretty iffy at best. (You can read more from me about the "end of the welfare state" on The Independent Agenda.)

Finally, there are earnings, which have been great. But we’re getting much later in the cycle, and their momentum appears to be slowing. It’s hard for me to see how earnings growth alone is going to power the market much higher when everything else appears to be going in the opposite direction.

And while valuations are looking attractive by some measures, they don’t exist in a vacuum, either.

So, where does that leave us? Four prominent technical analysts I contacted all agreed: Stocks are heading lower, likely into a new bear market.

David Sneddon, head of technical analysis research at Credit Suisse in London, said the 1,370.58 intraday high in the S&P we saw on May 2 was the likely top. There’s critical technical support around 1,100, which is just about from where the market bounced back this week. So far, we seem to be holding that.

The next level of technical support below that is at 1,020-1,022. “You’d have to get below [1,000-1,010] to have a genuine bear market.”

Another London-based technician, Sandy Jadeja of City Index, who watches the Dow, thinks that’s where we’re going.

A few weeks ago, he predicted the Dow would drop to 10,428, which it did. Now, he told me by e-mail, “the rally that follows will be brief, and then lead to another leg down to 9,673 and further.”

“Lows are not to be expected until 2012,” he concluded. “Next month is critical. If we break the low of August in September, there is worse to come.”

 

Mark Arbeter, chief technical analyst of Standard & Poor’s, said back in May and June that the bull market was probably over, as I reported in this column. He hasn’t changed his position.

By e-mail, he said he “would look for some stabilization and a potential short-term rally now that the S&P 500 has fallen into a major zone of chart support…between 1,023 and 1,128.”

Ultimately he thinks the S&P could fall to 1,020, or maybe as low as 935. That would be 15% below Wednesday’s close, and would definitely mark a new bear market.

Michael Kahn, who writes the Getting Technical column for Barrons.com and the QuickTakes Pro blog, has long argued we’re in a secular (long-term) bear market, and he thinks the cyclical bull is over, too. Like Arbeter, he sees 1,010 to 1,050 as the next level of support for the S&P, and below that 930.

“I think it stops at 930 to make the 2000s-2010s follow the 1970s very closely,” he wrote me by e-mail. That’s one decade for which investors have little nostalgia.

The technicians are unanimous that stocks are going lower, though some are looking for a strong rally that goes against the bearish trend. Arbeter doesn’t expect that rally to go much beyond 1,250-1,260 before it sells off again. Sneddon doesn’t think it’ll bounce much higher than 1,200.

“We’ve clearly seen a lot of technical damage done in a lot of markets,” he told me. “I would be personally [inclined] rather to lighten up and reduce my positions” on rallies.

That would be my position, too, if I hadn’t already taken profits and sold what I wanted to a couple of months ago.

If you missed that chance, I wouldn’t sell in panic now, but would wait for stocks to mount a rebound to sell off positions in riskier small-cap stocks (which already may be in a bear market) and emerging markets, whose time in the sun has come and gone. That also may be a good time to permanently reduce your exposure to equities.

But I certainly wouldn’t buy into a market like this with all its wicked swings and uncertainties. Even mighty Goldman Sachs (GS) lost money on 15 trading days in the second quarter! And John Paulson, the hedge-fund genius who masterminded “the greatest trade ever” by shorting subprime mortgages, has lost 31% so far this year in his largest fund.

If people like that who have the best information and technology are losing money in this market, do you really think you’re going to beat them at their own game?

There will be a time to buy again, but it’s not now. This market is heading lower.’


Editor's Note: This article was written by Howard R. Gold, editor at large for MoneyShow.com. 

 

 

 

Five Reasons for the Stock Market Crash and Zero Interest Rate 11 Aug 2011  Read more: Five Reasons for the Stock Market Crash and Zero Interest Rate    http://www.moneynews.com/StreetTalk/Stock-Market-Interest-Rate/2011/08/11/id/406976  Its said that the stock market climbs a wall of worry. Because the stock market is trying to predict the future success or failures of various companies, it sometimes gets things wrong. Horribly, terribly wrong.

With the Dow Jones Industrial Average falling like a rock, with wild swings not seen since the stock market crash of 2008, many investors are on the verge of panic. It
s easy to see why. The Federal Reserve is committed to keeping interest rates near zero until mid-2013 at the earliest. Those low interest rates penalize investors on a fixed income who dont want the risk of the stock market.

Publisher
s Note: In an exclusive interview presentation, Aftershock 2012, Robert Wiedemer outlines a dire financial warning along with a comprehensive blueprint for economic survival. Over one million Americans have seen the evidence and learned how to weather the stock market, secure interest rates, and save their financial future. Watch the video now.

But investors who understand the reasons behind the latest decline in the stock market have little to fear. Below are five reasons why the stock market is crashing right now:

1) Current Debt Crisis in Europe and the United States

Between record high bond rates in Greece, Spain, Portugal and Ireland, the eurozone has its hands full in dealing with too much debt relative to the size of its various economies. As a result of the poor bond performance from these countries, Europe is on the cusp of plunging into a banking crisis. Such a crisis could send interest rates soaring for “prime” countries like France and Germany, not to mention throw the continent into a recession.

Across the Atlantic, the United States isn’t faring much better. The recent debt ceiling drama concluded at the 11th hour, with very little in the way of true cuts. Instead, the government has promised to cut future growth, which may or may not even occur. No wonder S&P downgraded U.S. debt!

Ultimately, it isn’t risky assets like stocks that cause economic problems. Markets sell off when seemingly safe assets are suddenly recognized as significantly riskier than they were once perceived.

2) United States Government Is at an Impasse

As part of the recent debt ceiling deal, Congress approved the creation of a bipartisan super-committee comprised of 12 members to fast-track legislation. The constitutionality of such a committee is dubious at best, but it’s just one way for Washington lawmakers to pass off responsibility and avoid tough decisions.

It doesn’t end there. The Federal Reserve has tried two rounds of “quantitative easing,” a scheme to buy up excess debt. The rationale was that it would get the U.S. economy back on track. Instead, this plan juiced the returns of the stock market, and sent gas prices and grocery costs soaring.

Meanwhile, Congressional Republicans are calling for the ouster of Treasury Secretary Tim Geithner as a consequence of the U.S. losing its S&P AAA credit rating.

In other words, it’s business as usual for the government: trying to fix a crisis that’s largely the result of its own poor oversight, while avoiding any responsibility for causing the problem in the first place.

3) U.S. Unemployment Is Running Over 15%!

As long as the U.S. economy isn’t creating enough new jobs, it will stagnate. Although the unemployment rate has declined from the double-digit rates it hit in 2009/2010, many astute individuals have noted that the latest unemployment report is inaccurate.

Using the measurement for unemployment used by the government up until the early 1980s, true unemployment is running over 15%!

Meanwhile, many thrown out of work have exhausted their unemployment benefits, which in some cases lasted as long as 99 weeks. Once off unemployment, they officially disappear from the official unemployed list, making the job market appear better than expected.

Adding millions of jobs would be the best economic stimulus possible. It would allow millions to loosen their belts and spend more, which would be a huge boon across the entire economy.

Publisher’s Note: Author and esteemed economist Bob Wiedemer accurately predicted these events more than four years ago. Over one million Americans have seen the evidence and learned how to weather the stock market, secure interest rates, and save their financial future. Watch the video now.

4) United States Has No Economic Growth

Historically, the Federal Reserve has cut interest rates to increase economic growth. That’s because lower interest rates make it easier for individuals to borrow money to buy cars, houses, start small businesses and the like. However, there’s been nearly no growth since the United States plunged into a recession in 2008. And the Federal Reserve can’t cut rates any lower.

There’s no doubt in the minds of many market participants that more Fed easing policies are on the way, especially after America’s first-quarter GDP was revised from 1.9% to 0.4%.

The stock market’s moves are highly dependent on economic growth. If an individual company can post huge growth numbers, its shares tend to go up, and its shares tend to decline when growth stalls. When a country’s GDP is stagnant, investors don’t know what to expect. Hence the recent stock market plunge, as economic data may suggest that another recession is upon us.

5) No Housing Recovery

The stock market crash of 2011 is starting to resemble the stock market crash of 2008 in one key way: Bank stocks are leading the decline. Since the start of August, banks deemed “too big to fail” like Citigroup and Bank of America have sold off twice as hard as the overall stock market.

It’s easy to see why. Banks are sitting on millions of properties listed on their balance sheets at pre-housing crash prices. If all these properties hit the market at once, prices would have to fall substantially. If the banks have to sell them at a loss, they’ll take a hit to their balance sheet at a time when they’re still trying to improve it.

A housing recovery can spur job growth for construction jobs, real estate agents, and businesses in new communities. But we currently have a housing glut that will take several years to work through.

Until then, without a housing recovery, it’ll be tough for the overall economy to recover. That means the stock market is in for a wild ride and low interest rates are here to stay.

While these five reasons aren’t a comprehensive list of the problems weighing down the stock market and keeping interest rates paltry, they should give most investors a reason to stay cautious over the next few months.

Based on the market’s action and recent economic data, it’s more likely than not we’re entering a double-dip recession. Stay heavy on safe investments and don’t give into the fear.


Read more: Five Reasons for the Stock Market Crash and Zero Interest Rate
Important: Can you afford to Retire? Shocking Poll Results …’

 

Stocks Overbought Already?at The Wall Street Journal

 

Are US Markets Facing the Abyss? [ Short answer: Worse! ] at Minyanville   Jeffrey Cooper Aug 15, 2011

As soon as the idea of the Deluge had subsided, a hare stopped in the clover and swaying flowerbells, and said a prayer to the rainbow, through the spiders web.

Oh, the precious stones that began to hide, and the flowers that already looked around.

In the dirty main street, stalls were set up and boats were hauled toward the sea, high tiered as in old prints.

Blood flowed at Blue Beard
s -- though slaughterhouses, in circuses, where the windows were blanched by Gods seal. Blood and milk flowed.

Beavers built.
Mazagrans smoked in the little bars.

In the big glass house, still dripping, children in mourning looked at the marvelous pictures.

A door banged; and in the village square the little boy waved his arms, understood by weather vanes and cocks on steeples everywhere, in the bursting shower.

Madame installed a piano in the Alps. Mass and first communions were celebrated at the hundred thousand altars of the cathedral.

Caravans set out. And Hotel Splendid was built in the chaos of ice and the polar night.

Ever after the moon heard jackals howling across the deserts of thyme, and eclogues in wooden shoes growling in the orchard. Then in the violet and budding forest, Eucharis told me it was spring.

Gush, pond -- foam, roll on the bridge and over the woods -- black palls and organs, lightning and thunder, rise and roll -- waters and sorrows rise and launch the Floods again.

For since they have been dissipated -- oh, the precious stones being buried and the opened flowers -- it
s unbearable. And the Queen, the Witch who lights her fire in the earthen pot will never tell us what she knows, and what we do not know.

--Apres Le Deluge, Arthur Rimbaud

"Yeah, keep your eyes on the road, your hands upon the wheel...
Let it roll, baby, roll.
"
-Roadhouse Blues (The Doors)

Somebody hit her with a chair, you know. I guess theres no way to determine who did it. Its already coagulating. She was just an innocent bystander. Its a democracy.
-Jim Morrison

There are things known and there are things unknown, and in between are the doors of perception.
-Aldous Huxley

That men do not learn very much from the lessons of history is the most important of all the lessons that History has to teach.
-Aldous Huxley

Ye shall know the truth, and the truth shall make you mad.
-Aldous Huxley

The market went mad last week. The truth of capitalism was in chaos, democracy in disarray, and paralyzed politics hit home. The truth hurts.

And the Queen, the Witch who lights her fire in the earthen pot will never tell us what she knows, and what we do not know.

Seemingly in unison, market participants' heads hit their pillows Friday night with a thousand points of night running like shards of broken confidence through their minds.

The consumer confidence number hit the lowest level in a generation as the retail therapy of conspicuous consumption threatens to hit the wall.

Anesthetized with lies and sedated with stimulus, is the consumer shopped out and about to send a wake-up call to Mr. Economy?

At the end of World War II, no power existed which could compete with the US militarily or economically.

The US had saved the world from the scourge of dictatorship.

In return, the Bretton-Woods Agreement in the Summer of 1944 also gave us the monetary power to print the world
s currency. We promised it would always be convertible into gold at the rate of $35 per ounce. This proviso was between the worlds central banks and ours. It remained true until August 15, 1971 when President Nixon voided the agreement because French President de Gaulle was about to make a run on our gold, which he knew wasnt sufficient to back up all of the currency then floating around in the worlds central banks. De Gaulle was about to precipitate a kind of run on the bank.

Son of a gun.

Is this a harmonic of the rumors that Dominique Strauss-Kahn -- former head of the IMF who was about to run for the French presidency -- was set up in a hotel in New York because he was about to reveal something about the gold that is or is not in Fort Knox?

Ever since the Bretton Woods Agreement was broken 40 years ago today, the dollar has been wandering in a sort of financial Biblical desert, characterized by the last decade of bubbles and busts.

The monthly S&P shows 3 persistent advances: a 5-year run into March 2000, a 4-year run into July 2007, and a 2-year run in May 2011.

The March 2000 top saw a break and a return rally/test failure into late August 2000. The July 2007 top saw a break and a return rally that made a marginal new high test failure in October 2007. Both of these tests failures of the high came roughly 90 days/degrees later.

In 2011 an initial peak played out on February 18th. A test failure played out with a marginal new high roughly 90 days/degrees later.

In
How Mid-September 2008 Ties To The July 2010 Low And Today from late June, I walked through the setup for a waterfall decline.

The March
03 low was 788 which is where the big advance to 2007 began. 2 x 788 gives the price of the S&P all-time high in 2007.

From the March 6, 2009 low to the May 2, 2011 high is 787 days.

Time was
up this May, but the S&P didnt roll over until the anniversary of the July 07 high.

From August 1971 to August 2011 is 480 months. On the Square of 9 Wheel, 480 is square 90 degrees of August 24th.

August 24th is opposite this year's February 18th peak.

The end of the month also ties to the pre-crash high in 1987, the pre-crash high in 1929, and the return rally high in 2000.

The end of August vibrates off major crashes in history.

In addition, early September ties to the 120-month anniversary of 9/11 and the 1000 point DJIA bungee following that crash.

Will an ABC retracement rally following our recent crash be able to satisfy my projection early last week of a 1000 DJIA rally?

Will the end of the month/early September mark a retracement high or a new low?{PAGE_BREA}Surprisingly, after violating the Bretton Woods agreement, the world kept on functioning as though the US dollar was still as good as gold. The only limit on our power to print money was the world
s willingness to continue tolerating our enormous abuse of this power. In effect, it gave us the power to soak up the savings of others around the world in order for us to consume. It was a giddy time.

It was a giddy-up time for politicians intent on spending to buy votes and the incestuous target they created for lobbyists.

Americans then had a free ride in financial matters to take the labor of others and use them to their benefit. We no longer had to produce. We could just let others do the producing and all that we needed to do was print more money and pay them off.

That illusion is ebbing.

Technically, the market looks like it is creeping higher to finish off an ABC upward correction from 1190 to 1225, which should see the market quickly fall to lower lows. The mid-point of equilibrium between the 666 low and the 1371 high equates to 1018. A decline to 1018 could be a test of the 1011 low in July 2010.

1190 is the mid-point from the July 2010 low to the May 2011 high.

1225 ties to last year's double tops.

A full backtest of the big neckline ties to 1250ish.

This week the market will tie to the chance for an Upside Follow Through Day -- a day with a substantial gain on substantial volume at least 4 days after a low.

This week is also options expiration, so a possible C wave corrective rally could theoretically see the market hold up into the end of the week.

However, without a big momentum day to hook the shorts, the market will drift before another leg down targeting 1040ish to 940ish.

We have been looking for a blow out low near mid-August based primarily on the cycle from 1951.

The closing lows for two sessions near 1121 aligns with mid-August on the Square of 9 Wheel. Only above 1260 does the market suggest something else other than a new bear leg is playing out.

We don
t want to short if a washout has occurred like in August 2007. As we asked in a report last week, is this a blow-out low or a mid-point for a move lower?

At the same time it
s tricky to go long here between 1190 and 1225: the vast majority of technicals indicate a new bear leg. While many stocks are improving they have not repaired the damage.

A lot of comparisons have been made between the current cascade in stocks and 2008. Memory is short on Wall Street, but not that short. It is possible that money managers and robots alike sold first and will ask questions later so as not to be mangled in a another train wreck.

But this is not like 2008 in the sense that the Crash in the Fall of 2008 was a second leg down.

Modern markets haven
t seen a drop off a peak or pivot high from late July like we just witnessed. It was worse that last years Flash Crash in May 2010. It is worse than the initial sell-off in late 2008.

Even on Black Monday in 1987, stocks were decimated in virtually one day and it was over. This one has been a Roller Coaster Crash.

While the market has echoed the Flying Elvis Pattern that installed a low from mid-July 2010, it remains extremely risky as the sharpness and steepness of the selloff leaves it/left it primed for a reflex rally.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/15/ARCX_SPY_D%20--%20SPDR%20S&P%20500%20TRUST.gif

At the same time, as offered in a chart in this space in late July, the set up for a waterfall crash like 1929 was in place and that pattern may not have played out completely.

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/15/DJIA%201929%20Daily.gif%20final.jpg

http://image.minyanville.com/assets/FCK_Jan2011/Image/cooper/0811/15/ARCX_GLD_D%20--%20SPDR%20GOLD%20SHARES.gif   

 

Rickards – US will revalue gold to $7000  Aug 15th, 2011 15:10 by News  August 15 (King World News) — ‘ He (Nixon) said first of all I am imposing national price controls because there was an inflation problem in the United States at the time. The second thing he said was I am putting a 10% surtax of imports on all imported goods coming into the United States. Then about 10 minutes into the speech, very much en passant, he said, ‘Oh by the way we are suspending the convertibility of dollars into gold’ and he immediately went into this Nixonian rant about speculators. So it was very interesting, there were three earth-shaking announcements. Can you imagine any one of those three things going on today? President Obama or any President saying he was going to impose nationwide price controls, or all Chinese goods would have a 10% surcharge. It would be cataclysmic, yet Nixon did both of those things. Plus (Nixon) took us off the gold standard, so it was quite a dramatic speech. In a strange way he did us all a favor by making sure we (the US) held on to the gold. So I do think the United States is in a position to revalue the currency using gold to that $7,000 level. That will obviously be a huge benefit to all of the people who invested in gold because they are going to be along for the ride, along with the United States when that gold goes to $7,000.” Excerpted from an interview that is available here.



Fed Pledge Let's You Know The Fix Is In  Forbes  Peter Schiff Last weeks wild actions on Wall Street should serve as a stark reminder that few investors have any clue as to what is really going on beneath the surface of Americas troubled economy. It did bring startling clarity on at least one front. In its August policy statement the Federal Reserve took the highly unusual step of putting a specific time frame for the continuation of its near zero interest rate policy.

Moving past the previously uncertain pronouncements that they would keep interest rates low for an extended period, the Fed now tells us that rates will not budge from rock bottom for at least two years. Although the markets rallied on the news (at least for a few minutes) in reality the policy will inflict untold harm on the U.S. economy. The move was so dangerous and misguided that three members of the Feds Open Market Committee actually voted against it. This level of dissent within the Fed hasnt been seen for years.

Many economists have short-sightedly concluded that ultra low interest rates are a sure fire way to spur economic growth. The easier and cheaper it is to borrow, they argue, the more likely business and consumers are to spend. And because spending spurs growth, in their calculation, low rates are always good. But, as is typical, they have it backwards.

I believe that ultra-low interest rates are among the biggest impediments currently preventing genuine economic growth in the US economy. By committing to keep them near zero for the next two years, the Fed has actually lengthened the time Americans will now have to wait before a real recovery begins. Low rates are the root cause of the misallocation of resources that define the modern American economy. As a direct result, Americans borrow, consume, and speculate too much, while we save, produce, and invest too little.

It may come as a shock to some, but just like everything else in a free market, interest rate levels are best determined by the freely interacting forces of supply and demand. In the case of interest rates, the determinative factors should be the supply of savings available to lend and the demand for money by people and business who want to borrow. Many of the beneficial elements of market determined rates are explained in my book How an Economy Grows and Why it Crashes. But allowing the government to determine interest rates as a matter of policy creates a number of distortions.

It was bad enough that the Fed held rates far too low, but at least a fig leaf of uncertainty kept the most brazen speculators in partial paralysis. But by specifically telegraphing policy, the Fed has now given cover to the most parasitic elements of the financial sector to undertake transactions that offer no economic benefit to the nation. Specifically, it will simply encourage banks to borrow money at zero percent from the Fed, and then use significant leverage to buy low yielding treasuries at 2 to 4 percent. The result is a bankers dream: guaranteed low risk profit. In other words it will encourage banks to lend to the government, which already borrows too much, and not lend to private borrowers, whose activity could actually benefit the economy.

This reckless policy, designed to facilitate government spending and appease Wall Street financiers, will continue to starve Main Street of the capital it needs to make real productivity-enhancing investments. American investment capital will continue to flow abroad, denying local business the means to expand and hire. It also destroys interest rates paid to holders of bank savings deposits which traditionally had been a financial pillar of retirees. In addition, such an inflationary policy drives real wages lower, robbing Americans of their purchasing power. The consequence is a dollar in free-fall, dragging down with it the standard of living of average Americans.

Until interest rates are allowed to rise to appropriate levels, more resources will be misallocated, additional jobs will be lost, government spending and deficits will continue to grow, the dollar will keep falling, consumer prices will keep rising, and the government will keep blaming our problems on external factors beyond its control. As the old adage goes, insanity is doing the same thing over and over again and expecting different results. 

Peter Schiff is CEO of Euro Pacific Capital.

Related Posts:

 

 

 

Train Reading: The Stock Market Is Insane The Wall Street Journal

The stock market has lost its mind Bethany McLean in Slate

Are US banks turning Japanese? FT Alphaville

Hows that austerity working out for you, UK? Econbrowser

Can Jeremy Grantham profit from ecological mayhem? NY Times Magazine

Authors and critics reveal which lit classics they consider overrated Slate

Its not so easy applying Moneyball principles to soccer WSJ 

 

 

THE STOCK MARKET HAS LOST ITS MIND Bethany McLean in Slate Risk On! Do the Fed, computer trading, and a few hedge funds rule the market? That might explain why it's lost its mind. After the madness of last week and the rollercoaster at the beginning of this week, the stock market recovered from its Aug. 10 rout to bounce 423 points on Aug. 11. It was the fourth day in a row in which the index moved by more than 400 points, which has never happened before in history. As I write this, stock prices are leveling off, but the big swings may not be over. Has the market gone mad? Actually, yes.

In theory, the stock market is supposed to reflect the prospects for the economythe earnings potential of the stocks that make up the Dow Jones Industrial Average. But there's more than one reason to believe that what's going on now has little to do with any rational view of the future, and a lot to do with the market itself. "Dip your toes into any risk asset right now and understand that you are not entering into anything remotely resembling a normal market environment," wrote David Rosenberg, the well-respected former Merrill Lynch analyst who is now the chief economist at Canadian firm Gluskin Sheff, in his recent newsletter. "Dysfunctional is more like it."

The first factor to consider is that the huge rebound in stocks and in all sorts of risk assets from the spring of 2009 until May of this year wasn't necessarily driven by a belief that better times were coming. It was driven by a belief that investors had to buy riskier assets given the Fed's determination to hold interest rates near zero. Because investors can't get a return in "safe" assetsindeed, a small return will get chewed up by inflationthey are driven to riskier assets. As more investors pile in, everyone is driven further out along the risk curve.

This is what traders call "risk on." What they mean is that you'll be rewarded for buying risk, regardless of reality. The Fed's second round of quantitative easing ("QE2"), in which it bought $600 billion of Treasuries in order to keep interest rates low, encouraged this investment strategy. "We had a nice two-year rally in risk assets and something close to an economic recovery, but as we had warned, it was built on sticks and straw, not bricks," wrote Rosenberg. "This isn't much different than the financial engineering in the 2002-07 cycle that gave off the appearance of prosperity."

 The Fed intended this to end happily. The fake wealth created by a soaring market was supposed to turn into real wealth, because rich people, who control much of the economy and who have much of their money in the market, were supposed to spend more. But it hasn't worked, partly because of problems in the rest of the worldthe tsunami in Japan, the financial crisis that's brewing in Europeand partly because our own economy is too deep in hock to achieve the necessary stimulus. As Howard Marks, the chairman of Oaktree Capital Management, put it in his recent letter, "The world has awakened to the undesirability of ever-growing government debt."

You can think of the Fed's medicine as a painkiller. It allows everyone to pretend that bad stuff isn't happening, until something shatters the illusion and the comfortable numbness abruptly gives way to panic. There's massive selling. Then the Fed reassures everyone that its toolbox isn't empty just yetwitness the big upturn on Aug. 9 after the Fed said it would likely hold rates near zero until mid-2013 (a worthless prediction if inflation surges)and the market soars. Risk on!

It's hard to develop any real conviction about the direction of the market when so much depends on the actions of the Federal Reserve. That's especially true because even the members of the Federal Reserve Open Market Committee aren't all in agreement. Three members voted against the Fed's Aug. 9 announcement. Complicating matters is that the short term direction of the real economy is also at the mercy of the government. The key line in this Wall Street Journal story: "As goes government spending, so goes the U.S. economy."

Another possible factor in the madness is forced selling by big hedge funds. There are rumors that funds are getting hit by margin calls, or that funds that are having a bad year are getting redemption requests from investors, thereby forcing them to sell. Most of the gossip has focused on John Paulson (the hedge fund manager who famously made his fortune by shorting securities backed by subprime mortgages), given the big positions he was known to have in stocks that have gotten trashed. But if Paulson is hurting, he's probably not alone. "No way big guys could have gotten out," one trader tells me via email. "Big hedge funds with all the same big positions. This move down happened so fast that they are trapped." If this theory is right, then sudden rallies like Thursday's upturn will be followed by more selling, as hedge funds take advantage of the ability to get out.

The last explanation I've heard is that most of the buying and selling hasn't been driven by real people, but rather by computers. Hello, HAL 9000! In the last five years, computer-driven trading, whether controversial high-frequency trading or just programs that buy baskets of stocks based on technical figures, has become a bigger and bigger part of the market. Depending on how you define it, sources tell me it constitutes 70 percent to 90 percent of trading now. "The human element is gone," one trader tells me. At least some people believe that the presence of computers exacerbates the big moves up and down. According to this paper by X. Frank Zhang, an associate professor of accounting at the Yale School of Management, "high frequency trading is positively correlated with stock price volatility." Zhang goes on to say that the "positive correlation is stronger among the top 3,000 stocks in market capitalization and among stocks with high institutional holdings. The positive correlation is also stronger during periods of high market uncertainty." Zhang's academic work is supported by the observations of those who have been in the market for a long time. "I suspect that the real culprits here are the computers Wall Street has programmed and unleashed to trade and manage portfolios," wrote John Bollinger, who has been publishing his Capital Growth Letter for more than two decades. "The sort of mindless selling that we are seeing is most likely the result of machines trading and human beings desperately trying to keep up with them."

Should you buy? Should you sell? No one knows. The world is always an uncertain place, but right now it's more uncertain than usual, whether about the ultimate resolution of Europe's crisis or about how the U.S. will reduce its debt and get the economy growing again. Or perhaps I should say reduce its debt or get the economy growing, since it's unlikely to achieve both at the same time. This inability to guess what the future holds means that madness rules.

 

Withdrawals From Stock Funds Biggest Since 08  Aug 12th, 2011 15:32 by News (Bloomberg) Investors pulled the most money from global stock funds since 2008 in the past week as the Standard & Poors downgrade of Treasuries and the deepening European debt crisis prompted a flight into cash and gold. Funds that buy global equities suffered $3.5 billion in net withdrawals in the week ended Aug. 10, the most since the second week of October 2008, according to Cameron Brandt, director of research at Cambridge, Massachusetts-based EPFR Global. Investors removed $11.7 billion from funds that invest in U.S. equities, the most since May 2010 when investors pulled money following a one-day market crash that briefly erased $862 billion.This week had a feeling of capitulation as we saw investors running for cover, Brandt said in a telephone interview. The last time we saw this kind of flight to safety was in 2008, he said.

 

 

U.S. Consumer Confidence Drops to Three-Decade Low Amid Economic Headwinds  Aug 12th, 2011 13:10 by News (Bloomberg) — ‘Confidence among U.S. consumers plunged in August to the lowest level since May 1980, adding to concern that weak employment gains and volatility in the stock market will prompt households to retrench.The Thomson Reuters/University of Michigan preliminary index of consumer sentiment slumped to 54.9 from 63.7 the prior month. The gauge was projected to decline to 62, according to the median forecast in a Bloomberg News survey.’

 

 

 

 

 

Pity the Policymakers  July 21st, 2011 by News  by Mohamed A. El-Erian (Project Syndicate) — ‘I don’t know about you, but whenever I am in an airplane experiencing turbulence, I draw comfort from the belief that the pilots sitting behind the cockpit’s closed door know what to do. I would feel very differently if, through an open door, I observed pilots who were frustrated at the poor responsiveness of the plane’s controls, arguing about their next step, and getting no help whatsoever from the operator’s manuals. So it is unsettling that policymakers in many Western economies today resemble the second group of pilots. This perception reflects not only the contradictory pronouncements and behavior of policymakers, but also the extent to which economic outcomes have consistently fallen short of their expectations.This perception is evident in Europe, the United States, and Japan, where indicators of economic sentiment are deteriorating again, already-weak recoveries are stalling, and over-stretched balance sheets are becoming even more precarious.’

 

 

 

Greek finance minister brushes off downgrade [ Sounds like a plan! ]

 

 

 

Is America The Next Greece? at Forbes Marc Schindler ‘After many years of overeating (overspending) Greece is in the emergency room with a major financial heart attack and America isn’t far behind.

The doctors (IMF, European finance ministers, the ECB, etc.) are running around trying to save it. Open heart surgery (loans guaranteed by others) has averted the immediate crisis, but Greece is just as overweight today as it was before the crisis. Attempts to lose weight through exercise (austerity measures) cause serious chest pains (riots). The doctors dont want to admit it, but all signs point to a heart transplant (default) as the only way to get Greece onto its feet again.

Greece isnt the only one. It is a veritable epidemic. Ireland, Italy, Portugal, Spain and a host of other countries are having chest pains. Iceland is feeling better now with its freshly transplanted heart. The American home owner is still in the hospital from his financial heart attack after gobbling up vast quantities of real estate, and it has been many decades since Uncle Sam last could see his toes.

By most accounts (e.g. here or Bill Gross statements in a recent interview) total hidden government liabilities add up to about $60-$100 trillion. That is on top of the $14 trillion of debt carried on the balance sheet. Adding up those liabilities, the US owes at least five times GDP, which currently sits at about $15 trillion. For comparison, Greeces debt is about 1.5 times its GDP.

This is not really a fair comparison, because it leaves out any hidden liabilities Greece may have. The US debt figure includes unfunded entitlements, state and local debt, and underfunded public pensions. Nevertheless, it is clear that this is an unsustainable debt load even if the estimates turn out to be off by a factor of two or four.

Uncle Sam is already more overweight than Greece ever was. If he doesnt change his ways, he will end up in the hospital like Greece, but at present he is partying like there is no tomorrow, gorging himself on entitlement spending, costly wars, bailouts, subsidies, and countless other delicacies.

Perhaps it would not be such a bad thing if the talks about raising the debt limit failed. After Uncle Sam suffers the resulting self-inflicted mild heart attack (temporary default) and finds out how much fun it is to fetch up in the emergency room, he might be more inclined to take care of himself, slim down, and stick with an exercise regime.

Some kind of a wakeup call is necessary while there is still time to deal with our debt problem. The only way to address it is for Washington to do its job: get everybody to recognize that there is a problem, find a solution that demands some sacrifices from everyone, and work together across party lines to implement it. In the current political environment that does not seem to be possible. Something needs to change the environment. Greece shows that the alternative is not pretty.

 

 

Corporate Earnings Soar Amidst a Dismal Job MarketWall St. Cheat Sheet [That game’s about to end! In fact, that game’s over!  Dave's Daily  'If you can keep interest rates this low this long, its inevitable cheap financing can allow companies to start cobbling each other up. Further Ben's policies allow companies like IBM to sell bonds at 1% and buy back shares with the proceeds (total paper bubble-scam). POMO is occurring almost daily and Primary Dealers can buy back their shares and pay dividends with what essentially is taxpayer money-- ]

 

 

Standing on the precipice – and ready to jump  July 21st, 2011 News By Wolfgang Münchau ( Financial Times) — ‘It looks like there will be deal on a eurozone package for Greece. The full details are still missing, but it appears that the eurozone is forcing Greece into a selective default. As part of such a package, short-term Greek debt will be more or less forcibly converted into long-term debt. The wretched bank tax is mercifully off the table. And the European financial stability facility will most likely be allowed to purchase Greek debt at a discount. LET US NOT MINCE WORDS HERE. THIS WOULD BE A DEFAULT, THE FIRST BY A WESTERN INDUSTRIALISED COUNTRY IN A GENERATION. I am not quite sure how it is possible for the European Central Bank to agree to this, or to all of this. But I will surely be intrigued to hear how Jean-Claude Trichet will manage to be consistent with what he said a few days ago. There are also reports that the eurozone leaders may accept a more flexible EFSF beyond those bond purchases.’

 

 

 

State Finances Are Worse Than You Think at Forbes

 

 

 

So Far, Market Ignoring Dire Warnings at Minyanville

 

 

 

The Greater Depression Is Upon Us by David Galland http://www.lewrockwell.com/orig10/galland34.1.html  Casey Research Recently by David Galland: The Road to Perdition  The phrase Greater Depression was coined by Doug Casey a decade or so back as a way of describing the economic crisis he foresaw as inevitable, and which is now materializing.

Because I think it is important for every organization to constantly challenge its own assumptions, Ive long acted as something of a devils advocate here at Casey Research. By constantly pushing our analysts to revisit their assumptions and calculations, it is my firm intention for us to spot the fork in the road that indicates it is time to shift strategies away from investments designed to do well in the face of a currency debasement and to something else.

Being attentive to that fork in the road is hugely important, because even though we urge our subscribers not to overdo their exposure to inflation hedges, we recognize that many do. Many a good person had their clocks cleaned in the early 1980s solely because they had become overly enamored of their precious metals so much so that they stopped thinking of them as an asset class and began thinking of them more in the terms one might associate with an amorous dinner date. Thus these investors were utterly unprepared when said date stood up and broke a dinner plate over their heads.

With that brief setup, I want to make our views clear: While we correctly anticipated the recent correction in precious metals, this correction is but a blip in a secular bull market that is very much intact.

Doug Casey has often said that the unfolding crisis is going to be even worse than he expects (which is saying something), and the longer the rest of us at Casey Research study the tea leaves, it is hard to disagree that the Greater Depression is still ahead.

Consider:

 

 

 

Watch Out: 2011 Looks A Lot Like The Market Top In 2007 at Forbes  Sean Hanlon  Back on December 12, 2007 I wrote a market commentary that started as follows:

The equity markets have been very volatile this year, but also range bound.  A picture speaks a thousand words so all one needs to do is view the chart below of the S&P 500 Index to understand just how volatile and range bound things have been.  Specifically, since February 20, 2007, only nine and one half months or so ago, the S&P 500 Index has been down 5.86%, up 13.02%, down 9.43%, up 11.26%, down 10.09%,
and now up 7.73%
– through 12/10/07 – so far in this
latest up leg!  All this in ONLY nine and one half months!

http://blogs-images.forbes.com/advisor/files/2011/07/market-commentary-1.jpg

History is repeating itself so far in 2011, which has been fraught with ups and downs in both international and domestic equity markets.  This is due to many things, including the considerable economic doubts and various countries debt situations. This uncertainty has translated into market performance with direct impacts on portfolio returns and more prominently in portfolio volatility. This volatility is best seen in the chart below of the S&P 500 Index beginning 1/1/11.

http://blogs-images.forbes.com/advisor/files/2011/07/market-commentary-2.jpg

2010 ended positivity and the momentum carried into the first two months of 2011 however the end of February began a series of events that led market returns on a whipsaw ride of ups and downs, resulting in the current universal mid-year views of market uncertainty.

What news was associated with this volatility? All the usual; crude oil prices, natural disasters, corporate earnings, politics, economic forecast revisions for both developed and emerging markets, the European debt situation, the United States debt situation and more to name just a few.

One thing is for certain; the current volatile, range bound market activity is difficult at best to profit from.  In this investing environment patience is the most important attribute.  I will be patient and will be careful until the trends are preferable.

Our strategy at Hanlon Investment Management is to attempt to minimize downside risk by exiting risk asset classes, such as equities, during periods of uncertainty, getting invested in more conservative asset classes, such as money markets and short-term bonds, and re-entering into risky asset classes when we identify them as attractive, when the trend is our friend and positive!

Having identified this volatility, in June we made defensive, tactical investment decisions that provide less exposure to these volatile, range bound markets and prepare us to re-enter the markets when they possess improved risk characteristics.

 

 

 

 

Deficit Ceiling and Stocks - Expect the Unexpected ETFguide Simon Maierhofer, July 19, 2011, ‘A number of cliches come to mind when talking about the U.S. debt situation. The most appropriate might be: 'You can't have your cake and eat it too.' The least applicable is probably: 'Never put off until tomorrow what you can do today.'

But if you think the U.S. will default on some of its obligations anytime soon, you don't have enough faith in the government's most potent weapon - extend and pretend (another cliche that's become the modus operandi).

Since 1960, Congress has acted 78 separate times to permanently raise, temporarily extend, or revise the definition of the debt limit. Chances are Congress will act again before the August 2 deadline. That however isn't good news.

By the end of this article you will know the common sense, no nonsense, deficit ramifications for the stock market and why even 'a deal' isn't good news.

USA Inc. - Income Statement

If the United States was a corporation - USA Inc. - here's what the Income Statement would look like:

Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.                                 

The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. But there's no reason to despair, just before April 15,Congressional leaders were able to agree on $39 billion worth of budgetcuts for the remainder of the year.

Senate Majority Leader Harry Reid hailed this heroic effort as a 'historic' level of cuts. To quantify just how 'historic' that effort was we'll put it in percentage terms -1%. The cut amounted to only 1% of the 2011 budget. Apparently it wasn't enough. Thanks to extend and pretend we've arrived at the next deadline.

Stocks Applaud ... and Decline

Keep in mind that back in mid-April when the 'historic' $39 billion cut was hammered out, the S&P was at about 1,300. Following the 'resolution' of the budget problem stocks rallied about 5%.

The April 3 ETF Profit Strategy Newsletter featured the chart below (due to size restrictions the chart had to be reduced). As per the chart and accompanying analysis, the Newsletter expected a rally to the next Fibonacci resistance at 1,369, followed by a bounce off the Fibonacci support at either 1,229 or 1,255 and an attempt to take out the previous high.

 http://www.etfguide.com//contributor/UserFiles/8/Image/5%20-%20April%203%20TF.jpg

This outlook was based purely on technical analysis with no regard for the deficit problem or European debt woes (we'll take a look at an updated technical forecast in a moment). The S&P did top at 1,370 on May 2. Thereafter it dropped to 1,259, and tried to take out the previous high (the S&P rallied as high as 1,356 on July 7and stumbled thereafter).

USA Inc. - Balance Sheet

If you think the Income Statement looks bad, you may not want to look at the Balance Sheet. Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion.

The Deficit and Stocks

When President Obama took office in January 2009, the federal debt was 70% of GDP or $10 trillion. Today the deficit is close to 100% of GDP at $14.3 trillion.  As per a recent AP report, President Obama had to scroll down his demands and would now be content with a $2.4 trillion debt ceiling increase to make it last beyond the 2012 elections.

No doubt, the President would like the deficit issue put on hold until he's re-elected. It seems like everyone has an agenda that takes priority over solving the actual debt issue. The whole game could be summed up as White House budget director Jack Lew put it: 'That all these ideas do is say let's kick the can down the road so that others will deal with it.'

This, by the way, is why the pre-election year of the Presidential election year cycles has seen gains consistently since 1939, because the incumbent party will do what it takes to remain in office longer.

A lose-lose Situation

The drawback of the deficit situation is that there is no easy way out. The government has to either cut spending (as in fewer benefits for Americans) or increase revenue (as in higher taxes).

Pick your poison. Either choice will kill the economy. Of course, you can extend and pretend, which is probably what will end up happening. No matter how much lip stick you have at your disposal, a pig remains a pig. The deficit is a big (red) pig.

What is worse, a $14.3 trillion deficit today, or a $16+ trillion deficit (according to Obama's wish) in 2012? Debt is like gangrene, dry rot or mold, it doesn't just go away, it gets worse (ask Greece, Ireland, Portugal or any of the other PIIGS).

Eliminate Variables

Using European (NYSEArca: VGK - News) debt troubles as a benchmark, there hasn't been a direct correlation between U.S. stocks and European debt. To generalize this even further, there hasn't been a real correlation between the U.S. deficit issue and U.S. stocks.

It was in June 2009 that Greece admitted to having a 'small' problem. Stocks rallied throughout the remainder of 2009, most of 2010 and some in 2011. The same is true for the MSCI EAFE ETF (NYSEArca: EFA - News) and Emerging Market ETF (NYSEArca: EEM - News).

Admittedly, the U.S. is a much bigger problem than the PIGGS, but the principal remains the same - basing investment decisions on the outcome of debt negotiations is tricky because the market has a mind of its own.

Since early 2010, every single time the major indexes a la S&P (SNP: ^GSPC), Dow (DJI: ^DJI), and Nasdaq (Nasdaq: ^IXIC) sold off more than a few percent, it's been blamed on Greece. What many don't consider is that the market was helplessly overbought in January, and April 2010 and 2011 and due for a correction anyway. It seems like Greece has been a scapegoat more often than the actual cause. Perhaps it's a game of chicken and the egg. Which came first?

No Chicken-Egg Game

It has been more beneficial and profitable to rely on solid technical analysis rather than playing the chicken and egg game.

Technical analysis along with sentiment readings pegged a market bottom of the same degree at S&P 1,259 - 1,245. That was the opinion of the ETF Profit Strategy Newsletter on June 15 (one day before the 1,258 bottom):

'The 200-day SMA at 1,257 is sandwiched between the 1,255 Fibonacci projection level dating back to 2002 and this week's s1 at 1,259. Wednesday's low was at 1,261.9. If this low is not enough, there is a strong cluster of support at 1,259 - 1,245. A drop into the 1,259 - 1,245 range would prompt us to close out short positions and leg into long positions' (long positions were closed out at S&P 1,345 on July 7).

There was no fundamental good news on June 15 or 16. Some of the headlines featured on June 15 were:

'Is the bull market over? A look at four different sentiment measures suggests that more pain may await investors.' - Barrons

'Greek default could trigger chain reaction' - AP

'Confidence is eroding among U.S. factories, consumers' Bloomberg …’

 

 

 

Fed Keeping Market Afloat: QE Rally Not Sustainable http://regator.com/p/252365030/fed_keeping_market_afloat_qe_rally_not_sustainable By Matthew Claassen

 

 

Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen  In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis.

Once again I see all the canaries in the mine, which warned of the 2008 crisis. My just released book, Financial Apocalypse , provides the clues and the road map, with charts, of how my  indicators successfully predicted the meltdown that occurred in the fall of 2008. This book is a guide for detecting the next crisis whenever it occurs.  History repeats, or at minimum, it rhymes.

My work shows that the new recession has started. The May 9 issue of the Wellington Letter was headlined:  Return of the Double-Dip.  At the time, economists were looking for a great economy in the second half. Now they talk about a soft patch.  Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER).

How can we be in recession now when the GDP still shows growth? Because of improper inflation adjustments. Real GDP growth, the headline number, is nominal growth minus the rate of inflation. However, inflation is far understated for political reasons.

Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as growth, is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction.

When the current euphoric earnings forecasts of Wall Street finally reflect that via significant earnings downgrades, the stock market will see a serious adjustment as well.

On July 18, Goldman Sachs (GS) substantially lowered its economic growth forecast. Marketwatch.com had this headline:  Goldman Sachs slashes Economic Forecasts. The next step will be for them to substantially reduce earnings forecasts for the S&P 500.

Will the phase II be as bad as the 2008 crisis? The last crisis was confined to the private sector, i.e. financial institutions. The next one will be involve the threatened default of entire countries. The last time, the central banks bailed out the financial firms and even Warren Buffett bailed out several firms. Who is big enough to bail out entire countries? Or will the term of too big to fail turn to too big to bail?

Bert Dohmen is editor of the Wellington Letter and author of Financial Apocalypse.’

 

 

Retail Sales: The "Real" Consumer Remains in a Recession   Doug Short Read more: http://www.businessinsider.com/author/doug-short#ixzz1TAkuAIOK

 

 

 

3 Top Crooks Still Roaming Free After the Economic Crash Wall St. Cheat Sheet July 25, 2011, The global economy and stock markets took a nose dive in 2008. But that hasn’t stopped some of the biggest masterminds from escaping a day of luxury.

Here are three financial crooks who are probably sipping daiquiris in Capri at our expense:

Lehman Brothers CEO Richard S. Fuld, Jr.

Few executives were as intimately and extensively involved in the downfall of their firms as Dick Fuld . At the time of the financial collapse, Fuld had worked for Lehman Brothers for nearly 40 years, and had been the firms chief executive since 1994. In that role, not only was he the longest-tenured CEO on Wall Street at the time of the financial crisis, but he was considered one of the best. He was named Institutional Investor magazines top chief executive in the private sector in 2006. The following year, he was paid more than $21 million in cash and stock on top of his base salary of $750,000 a year after the banks net profit rose 5% to a record $4.2 billion. And as recently as March 2008, Barrons listed him on their list of the 30 best CEOs, referring to him as Mr. Wall Street.

When the financial crisis hit, Fuld was one of the few executives to hold onto his position. He counted himself responsible for the company, but didnt realize just how much real estate loans and other toxic assets were weighing on his balance sheet. Instead, he remained confident in the firm that he helped grow from a negative profit in 1993. His hubris can somewhat be understood, given the firm hadnt reported a single quarterly loss since it went public. But Fuld was wrong. He overestimated the value of his firm, rejecting offers that could have saved it from collapse because they didnt adequately reflect what he felt the firm was worth.

We know that sub-prime mortgages were almost solely responsible for the financial crisis, and a large part of the Wall Streets fourth-largest investment banks worth was held in its mortgage business, where mortgages were re-packaged and sold to other investors, often for more than they were really worth. In fact, Lehman was the top U.S. underwriter of mortgage bonds in 2006 and 2007, accounting for roughly 10% of the market. As CEO, Fuld was responsible for buying those assets, which ultimately became toxic and impossible to unload. But whether or not Fuld can be held wholly responsible for the firms loan practices, he can be held responsible for the firms bankruptcy. As late as August 2008, after many CEOs had already been forced to resign, he rejected an offer by state-run Korea Development Bank to buy a 25% stake in Lehman for $4 billion to $6 billion.

Theres no question that the firm Fuld helped build, that hed been a part of since 1969, where he held the top position for 14 years, was criminally responsible for the financial crisis. In fact, it may be the most culpable, given the sheer volume of sub-prime mortgages underwritten by Lehman in the years leading up to the market collapse. On September 15, Lehman became the largest firm to file for bankruptcy in history, dealing a devastating blow to an already fragile financial system. A few weeks later, Fuld was summoned to appear before Congress as part of an inquisition. He was also investigated by three United States Attorneys offices in New York and New Jersey. But ultimately Fuld walked away from Lehman Brothers having pocketed nearly $500 million just in his last six years with the firm, years during which Lehmans sub-prime mortgage practice was contributing to what would ultimately cost taxpayers $700 billion in a government-issued bank bailout program. Fuld was never charged with or convicted of any crimes.

AIG Financial Products CEO Joseph J. Cassano

As a founding member and head of AIG Financial Products, Joe Cassano was responsible for selling hundreds of billions of dollars worth of credit protection in the form of credit-default swaps (CDS) on U.S. sub-prime mortgages, a form of insurance that didnt require that AIG put down any form of collateral. So when the financial crisis hit in 2008 and investment banks requested the insurance money for their collapsing derivatives, AIG was unable to pay what was owed and ultimately had to be bailed out by the government, receiving about $170 billion in taxpayer money.

Cassano resigned from his position at AIG FP in March 2008, having pocketed $280 million in cash and an additional $34 in bonuses. He even managed a $1 million-a-month retirement package that kept him on at AIG as a consultant. Cassano even went on record denying any fault on the part of AIG, saying,

We believed until late 2005 that banks and other mortgage originators were applying appropriate standards when writing mortgages. When we recognized well before many others that changes in the mortgage market likely presented increased risk for future deals, we decided to exit the subprime business. We thought the decision was appropriate, despite the lost profits at the time. With hindsight, the decision looks even more prudent.

Cassano went so far as to blame the bailout for losses on CDS contracts, saying there would have been few, if any, had they not been unwound by the bailout. Testifying before the Financial Crisis Inquiry Commission, Cassano fully defended his firms CDS practices, outlining the careful approval and monitoring system that, specifically identified risk factors and provided an analysis of those risks. Cassano insisted that AIG had not miscalculated the risks of sub-prime mortgages.

However, Cassano was directly responsible for AIGs credit-default swaps program that put the firms many clients, including Goldman Sachs, in danger when it was unable to pay out on insurance claims. He essentially sold billions of dollars worth of vapor he failed to provide what had been paid for by the firms clients. That sounds remarkably like fraud, the grounds upon which many investors have filed suit against Cassano. In fact, regulators in both the U.S. and the U.K. investigated Cassanos acts to determine whether they had been criminal. But like just about every executive responsible for the financial crisis, Cassano was not ultimately charged with any wrongdoing, and remains a free man.

Countrywide Financial Chairman and CEO Angelo Mozilo

Ranked second by Condé Nast Portfolio on their list of the Worst American CEOs of All Time, Angelo Mozilo was charged in 2009 of insider trading and securities fraud by the U.S. Securities and Exchange Commission. Mozilo personally sold hundreds of millions of dollars in stock while using shareholder funds to buy back stock to support the share price. He is also responsible for what has been termed the Friends of Angelo VIP program under which several influential lawmakers, including Senate Banking Committee Chairman Christopher Dodd, as well as many Fannie Mae employees and other Friends of Angelo, received discounted mortgages.

However, Mozilo was allowed to settle with the SEC on all charges. He agreed to pay $67.5 million in fines, the most ever exacted from an individual in connection with the 2008 financial crisis, and he was banned from ever serving as an officer or director of any other public company. Robert Khuzami, director of the SECs Division of Enforcement, said that Mozilos record penalty is the fitting outcome for a corporate executive who deliberately disregarded his duties to investors by concealing what he saw from inside the executive suite. But in settling, Mozilo was able to avoid a trial and any subsequent criminal charges, and was not required to acknowledge any wrongdoing.

Mozilos net worth has been estimated at roughly $600 million. And because of the indemnification agreement in his contract with Countrywide, the firm was responsible for paying roughly one-third of his fines, leaving Mozilo with a bill of $47.5 million thats less than 10% of his worth. Aside from Bernie Madoff, the only executive tied to the financial crisis to be criminally prosecuted and convicted, Mozilos settlement is the greatest punishment inflicted on any executive responsible for the countrys economic collapse, and falls desperately short of true justice.

 

 

 

Debt, Deficits and the Demise of the American Economy' - Author Peter Tanous Discusses Risk

 

 

 

US Equities Forecast and the Anticipated Path of the Market at Minyanville  Peter Prudden July 25, 2011 ‘… the headline risk remains to the downside and the bogey to lower equity prices in the short to intermediate term is concentrated on the U.S. Debt ceiling. At some point, not only must all developed economies deal with marking down to the level of income, but we must restructure large amounts of excess leverage. Until we accomplish this, growth will be problematic…’

 

 

 

Putin says U.S. is "parasite" on global economy [Unfortunately, this is very true. More unfortunately is the fact that most worldwide don’t realize that fact! I mean, think about it: pervasively corrupt, defacto bankrupt america’s cancerous  perma wars, over-printed debased ‘Weimar’ paper ‘reserve’ currency, huge frauds in securities and otherwise, etc..  ]

 

 

 

3 Reasons Why This Summer Could Get Ugly  Simon Maierhofer, July 29, 2011 [ Well, before getting to the article, we all know why: because … ‘Sell in May, and go away!’ … Quite simple, as previously set forth here and elsewhere, you should have ‘sold in May, and went away!’ Why? Because … as Rosanne Rosanna Danna formerly of SNL fame and as her mama always used to say, ‘it’s always somethin’’ … but unfortunately, that somethin’ is not necessarily what they say it is. ]  It seems like the European Union and U.S. government are stuck in a never ending game of Whac-A-Mole. It seems like more moles are popping up more quickly, needing more force to be subdued (ironically the moles come back just as the problems do)…’

 

 

 

 

 

Mapping the Myths of the U.S. Economy - Stacy Curtin  In The Real State of America Atlas: Mapping the Myths and Truths of the United States, authors Cynthia Enloe and Joni Seager paint a vivid picture of life in the U.S., using a series of charts, graphics and short essays that cover almost every aspect of the nation's economy and society as a whole.

Not only do they give state-by-state comparisons, they show how the U.S. measures up to the rest of the world in areas such as health care, housing and defense. But while analyzing what it's really like to live in the U.S. today, they also uncovered a few "myths and truths" as the title of the book suggests.

Enloe and Seager joined The Daily Ticker's Aaron Task to share three of the most surprising misconceptions they uncovered.

#1 Land of Homeowners

The dream of owning a home is actually more the reality in other countries. In the book, the authors point to the most recent data, which show only 68% of Americans owned their home in 2002, compared with 92% in Hungry, 84% in Mexico, 72% in the U.K. and 71% in Australia.

"One of the things that is a cherished notion about America is we are a nation of homeowners, and homeownership has long been seen as kind of the bedrock of the American dream," says Seager. "I think the current economic crisis and the housing crisis is really shaking that American cherished view of ourselves as having easy access to homeownership."

This is evident in another stat laid out in the book, which shows 83% of people agreed that buying a home was a safe investment in 2003, compared with 70% in 2010. (See: Why I Am Never Going to Own a Home Again)  { Home ownership hits lowest level since 1965  NEW YORK (CNNMoney) Les Christie August 5, 2011 As the foreclosure crisis continues to wreak havoc on the housing market, a source of national pride has taken a sour turn. Home ownership is on the decline and, according to a recent Morgan Stanley report…’ }

#2 Land of Opportunity

Just like the ideal of owning a home, opportunity in this country is now also on the brink.

"Opportunity in this country means a chance for an education [and] a chance for a decent job that allows you to have a decent life," says Enloe, who points to two key factors that hinder people making it here in America.

#3 Land of Givers

While the U.S. does give more money in foreign aid than any other country in the world, as a percentage of GDP it falls way behind many other nations.

Whereas Sweden gives almost 1% of its GDP in 2008, the U.S. gave 0.19%.

"I think it really should shake Americans' self-perception of two things," says Enloe. "[One] is cutting foreign aid actually the ticket to balancing the budget, but also how do we shape up compared to other countries' generosity?"

 

 

 

Debt Deal Is A Blank Check at Forbes

 

 

U.S. Economic Pessimism Grows - Stacy Curtin  While Democrats and Republicans were arguing over how to prevent the U.S. from a default, families across the country have become increasingly concerned about the overall state of the economy, according to the American Enterprise Institute's latest compilation of recent polls taken in various regions.

Friday's worse than expected GDP numbers only reaffirm this notion. The U.S. economy grew less than expected in the second quarter at 1.3%, but the bigger shock came after Q1 GDP was revised down to 0.4% from 1.9%. These numbers suggest the country could be headed for another recession and Americans are definitely feeling the pain. (See: 2011 Is Proving to Be a Horrible Year For the Economy)

One of the most disconcerting findings in the AEI report is a CBS/New York Times poll from June. It showed that over the last year, more Americans have come to believe the current economic downturn is part of a long-term permanent decline and that the economy will never fully recover. In October 2010, 28% of respondents agreed with that statement, versus 39% last month.

"Americans are so pessimistic about the economy now ... . And the level of public pessimism is actually higher than the deep 1981-82 recession overall," due to grim personal outlooks on a number of issues like jobs, retirement and health care, says Karlyn Bowman, a senior fellow at AEI who co-authored the report. "Their negative sentiments are affecting the way they feel about their family's future, and interestingly, the way they feel about their state governments. Usually negative attitudes about the national government don't seep into attitudes about the state government, but this time it is really different. This negative, gloomy mood is pervasive.

Speaker of the House John Boehner echoed these concerns Thursday before one of the many failed House votes to raise the country's debt ceiling. "This is a challenging time for our country," he said. "Americans are worried about their jobs. They're worried about our economy. And they're worried about our debt."

Since the polls in the report were conducted before the debt-ceiling debate really began heating up over the last few weeks, one might conclude that if the same questions were asked today the responses would be even more pessimistic.

Here are other key findings from the AEI report:

Job anxiety: In the past six months, about 5% of Americans surveyed had lost their job, two in 10 said a family member had lost a job, and six in 10 knew someone who lost a job.

In June 2011, 58 percent were very or somewhat worried they could lose a job in the next 12 months. Nearly eight in 10 say jobs are difficult to find where they live. Around a quarter are worried about benefit or pay cuts.

Cutting back: Americans are cutting back on everything from health care to haircuts. Fewer than four in 10 say their personal financial situation is in excellent or good shape right now. Almost as many people say they are falling behind as believe they are getting ahead, but the vast majority describe their financial situation as having just enough money to maintain their standard of living. Inflation worries are high and steady.

Retirement: There's been a dramatic drop in the number of Americans who say they have enough money to retire. In 2002, around six in 10 believed they would have enough money. In the latest survey by Gallup in April, only about four in 10 say they will.

 

 

10 Reasons We Are Heading for a Recession

 

 

USAGOLD RoundTable: Debt Ceiling Resolution EU Sovereign Debt Crisis Aug 3rd, 2011 15:53 by News Were pleased to present our latest RoundTable video discussion with our staff experts George Cooper, Peter Grant and Jonathan Kosares {Immediate access here} Excerpt: Now that the debt ceiling debate is over, and the dust is settling, the market is beginning to get a picture of what, if anything, was accomplished, and can be expected moving forward. The $2 trillion in cuts over ten years amounts to a small dent in our annual deficit, suggesting that the U.S. will continue to increase its debt to GDP ratio over the coming decade. The cuts suggested will merely slow, not reverse, this trend. In the end, this debt deal is nothing more than a giant kick of the can down the road, and a short road at that. The hike to the debt ceiling looks to only buy about six months, so this issue is set to be revisited next year. The market has digested this resolution as such, and gold has responded sharply higher, rising $60 in two days. The DOW meanwhile has come under significant pressure, shedding over 800 points in a week. Things across the pond are not looking any better. The credit facility set up by the ECB is insufficient at best, and contagion remains an enormous risk. Spreads on sovereign debt in Italy, Spain, Greece, Portugal and Ireland are at or near all time highs. As talks of dramatically expanding the credit facility heat up, were left to wonder if its even possible for Europe to go big enough to calm market jitters. With Peter Grant, George Cooper, and Jonathan Kosares. (24 min) The Daily Market Report Aug 1st, 2011 12:01 by PG  Relief? What Relief? http://www.usagold.com/cpmforum Late last night when party leaders and the President announced that they had reached a bipartisan deal that would allow the debt ceiling to be raised, gold dropped about 1%. Global stocks rallied in relief and briefly, ever so briefly, gold was out of favor. However, as the details were revealed, doubts were reignited: Doubts as to whether such legislation could actually make it to the Presidents desk. Doubts that the deal would avert a downgrade of US sovereign debt.While the CBO scores the package as accomplishing $2.1 trillion in spending cuts over the next 10-years, the CBO baseline also has the deficit rising $6.7 trillion over the same period. The premise apparently being that were working our way to actual cutting by cutting to slow the pace of the nations proliferate spending. In actuality and as evidenced below that CBO baseline may prove to be way too optimistic.What really lit an intraday fire under gold today was the big miss on US July ISM, which plunged to 50.9. The market was expecting a modest downtick to 55.0 from 55.3 in June. On the heals of last weeks much weaker than expected quarterly GDP data, it has become abundantly apparent that the US economy has slowed to just above stall-speed. David Rosenberg, chief economist at Gluskin Sheff and Associates, noted last week that once the economy slows to a growth rate of 1.6% it has proven historically to be a point of no return and recession follows. With Q1 downgraded to just 0.36% and Q2 an anemic 1.3% and likely subject to future negative revision as well the writing may well be on the wall.The debt deal is a short-term kick of the can that at least initially focuses on spending cuts. However, with no mitigation of the uncertainties that have kept private capital sidelined for the past two-years of the so-called recovery, there is little reason to think that a more robust economy is just around the corner. In fact, the opposite may be true. That realization, tipped in by the ISM data, has further escalated the QE3 talk, which prompted gold to retest the record high set Friday at 1632.39. Relief? What relief?If we get another negative surprise on Friday when July nonfarm payrolls comes out, as the ISM employment index suggests we might, the QE3 talk will intensify ever more in the weeks ahead of the Feds Jackson Hole summit. Consensus on July payrolls are running around +100k, although we could see some tempering of those expectations in light of the ISM data.Even with the announcement of the debt ceiling deal, the dollar remains on the ropes, falling to new record lows against the Swiss franc and the yen. If this deal makes it through both Houses of Congress and is signed by the President, it is just another kick of the can and a very short one at that down the road. And with the specter of yet another round of quantitative easing hanging over the market, there is little incentive to buy dollars. Now the BoJ is once again contemplating direct intervention in the market, as I suspect the SNB is. If there are concerted efforts to slow the rise of these currencies, it may make gold an even more alluring option.

 

 

S&P downgrades US credit rating from AAA The United States has lost its sterling credit rating from Standard & Poor's.

 

 

U.S. triple-A debt rating cut by Standard & Poors Aug 5, 2011 The United States late Friday lost its triple-A debt rating from Standard & Poors for the first tie ...
 

 

Text of S&P downgrade of U.S. rating  06 Aug 2011 The following is the text of Standard & Poors downgrade of the United States. ...
 

 

 

S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet  August 5, 2011,

Standard & Poors is out with an official downgrade of the U.S. credit rating:

We have lowered our long-term sovereign credit rating on the United States of America to AA+ from AAA and affirmed the A-1+ short-term rating.

We have also removed both the short- and long-term ratings from CreditWatch negative.

The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the governments medium-term debt dynamics.

More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the governments debt dynamics any time soon.

The outlook on the long-term rating is negative. We could lower the long-term rating to AA within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

Investing Insights: Is the Debt Ceiling Raise Bullish for Gold?

 

 

 

13 Reasons Why The U.S. Is Now OFFICIALLY BANKRUPT Daily Bail | Stop the budget lies; there are NO cuts. House passes bill to INCREASE spending by $7 trillion over the next 10 years. ATTENTION IDIOTS IN THE MAINSTREAM MEDIA Stop The Budget Lies There Are NO Cuts House Passes Bill To INCREASE Spending By $7 Trillion Over The Next 10 Years

Lies, Damn Lies And Government Budgets

I am so pissed off by the misreporting I could spit Ken Lewis hairballs.

#1) Corporate journalists and financial pundits know NOTHING about budgets.

#2) The Boehner led House passed legislation this evening that INCREASES spending by $7 TRILLION over the next ten years versus a baseline budget that would have increased spending by $9.5 TRILLION over the same period.

#3) CBO said today that LESS than 2% of the decrease in the GROWTH of spending will come before the 2012 elections. The remainder come after the election.

#4) Defense and war machine spending will grow at 3% per year instead of 4% per year.

#5) This was nothing but an agreement to agree at a later date to look for reductions in planned spending GROWTH.

#6) A Super Congress will decide on a mix of tax increases and reductions in planned spending growth to meet the targets at a later date.

#7) No one in Congress even considered Ron Pauls simple plan, now endorsed by Time Magazine as well as liberal economist Dean Baker, to wipe out $1.6 trillion in fake debt owned by the Federal Reserve. Debt that we owe to ourselves, that is entirely legal to wipe away.

#8.) CBO says under this plan, the national debt will INCREASE from $14.4 TRILLION currently to more than $25 TRILLION over the next 10 years.

#9) The assumption for #8 above assumes the economy grows at 3% per year over the next 10 years, and that Treasury interest rates stay at historic lows. When rates increase, and bet your life that they will, interest on the debt will increase and so will annual deficits, leading to a national debt much higher than the $25 TRILLION that CBO estimates.

#10) Regarding Treasury rates and interest on the debt, get educated about a concept called DURATION RISK. Turbo Geithner and his MENSA bed-fellows at Treasury have chosen to finance the great majority of recent and future borrowing in short-term bills, which means that they have to be rolled over frequently. This is perhaps the least-discussed and most dangerous issue related to Treasury debt.

#11) If S&P or Moodys has the sack to downgrade the U.S. AAA rating, a Sovereign CDS default will be triggered and Global Financial Armageddon will be unleashed.

#12) The bill passed by Boehner tonight was the BEST they could do after 6 weeks of fighting.

#13) Due to #12, the United States is officially f*cked.

Thank you and good night.

 

 

 

US Closer to ‘Junk Bond’ Status Than Triple-A: Bove Aug 9th, 2011 14:41 by News August 9 (CNBC) — ‘  “You’ve got a company which is losing about $1.4 trillion this year, probably will lose somewhere around a trillion dollars over the next couple of years. It owes $14.4 trillion (and) over the next five years that will get up to $20 trillion,” the Rochdale Securities analyst said.“So there’s no likelihood whatsoever that this particular company is able to pay down from its own resources the amount of debt that it has, nor is there any likelihood that it’s going to get rid of its deficit,” he added. “If that was a real company, of course, that would be a junk bond.”“I still would expect to see a thousand-point down day at some point in this market as people come to realize there has been a complete change in the financial structure of the world,” he said’

 

 

 

 

If U.S. Slides Into Recession, S&P 500 Could Drop To 830 at Forbes [The pervasively corrupt, defacto bankrupt u.s. is already in recession (actually worse)!  Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis… My work shows that “the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER)… However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher.   Why The Dow Will Plunge To 7,000 By 24/7 Wall St.    S&P Poised For Dropoff, Says Initial Jobless Claims  Forbes / Maureen Farrell    ]

 

 

 

 

3 Ring Circus: Geithner, Buffett, and Obama Wall St. Cheat Sheet ‘…Treasury Secretary Tim Geithner , who said last April that there was no risk the U.S. could loose its AAA credit rating, voiced his thoughts on the downgrade.  He said, Theyve handled themselves very poorly, and theyve shown a stunning lack of knowledge about the basic U.S. fiscal budget math.  What exactly are they misunderstanding? The U.S. is the largest debtor nation in the world, and spending outlays vastly outnumber revenue.  Geithner went on to say that U.S. bonds were just as safe after the downgrade as before, and predicted that China and investors would remain strong buyers of government debt.On Monday morning, with stock futures heading sharply lower, Warren Buffett tried to inject confidence into the financial markets.  Buffett explained that he believes the U.S. debt is still rated AAA, and the downgrade does not change his mind about government debt.  In fact, the legendary investor holds $47 billion in cash and equivalents as of June 30th.  He said, If I have to buy Treasuries at zero percent yield, I will.  At least the large cash hoard shows that Buffett puts his money where his mouth is.  However, one also has to wonder if Buffetts shareholdings in Moodys , a rival credit agency to S&P, has anything to do with his criticism of S&P.  To add fuel to the fire, S&P also cut Buffetts Berkshire Hathaway outlook from stable to negative.Not to be outdone by Warren Buffetts AAA endorsement, President Obama made a public announcement of his own on Monday.  Despite Americas financial hardship across the board, the President said, Id give U.S. a quadruple-A rating.  This was puzzling for many reasons ( besides the fact there is no quadruple-A rating).  America has a hard enough time keeping its AA+ or AAA rating, let alone achieving some pipe dream quadruple-A rating.  S&P may be the credit agency causing controversy now, but its not the only credit agency to downgrade America.  Chinas credit rating agency Dagong ,  recently cut Americas debt rating from A+ to A, with a negative outlook.  Dagong had already cut Americas credit rating last November from AA to A+ after QE2 was announced.By the end of Monday, it was announced that the Senate banking committee had started a probe into the downgrade actions of S&P.  However, the damage is already done, confidence is broken in the markets.   Gold constantly reaching new highs is a clear example of this.  Perhaps the Senate banking committee should probe Fitch and Moodys and investigate why they still have AAA ratings on U.S. debt?...

 

 

 

Edwards says this has nothing to do with that downgrade   http://ftalphaville.ft.com/blog/2011/08/09/648126/edwards-says-this-has-nothing-to-do-with-that-downgrade

Posted by Izabella Kaminska on Aug 09 2011

Thought the current turmoil was down to the downgrade of US debt? Wrong!

According to Societe Generales uber bear, Albert Edwards, this has absolutely nothing to do with S&P, the White House, Tea Party etc. Its the economy stupid:

The simple fact is that the global economy is falling back into recession or indeed is already in recession. Equity markets were sliding before the downgrade and bond yields were reacting as one would have expected to the dire economic data. The S&P downgrade may have caused the breach of critical support levels of 1250 on the S&P, but anything could have caused that breach and triggered the technical rout. Expect some sort of retest of this neckline before the market ultimately meets its date with destiny.

Recent US GDP revisions revealed QE2 to be an abject failure as far as producing an economic recovery is concerned with dire 0.9% annualised growth reported in H1 2011. Yet to a man with a hammer, everything is a nail. Hence despite rising core inflation, there is certainly a level of economic and/or market pain to prompt QE3. But expect the real fireworks to occur when the adrenalin rush of QE3 wears off even quicker than QE2.

There are still some diehard happy clappies out there who think we are going to avert recession and the markets will recover. Yet US GDP growth has now fallen below the wellknown 2% stall speed, below which the economy does not seem to be able to regain altitude but instead crashes directly into recession.

Which means its time to come to terms with the fact that recession 2.0 (or was it ever really a recovery?) is on its way whether you like it or not:

At the current (Q2) rate of 1.6% yoy GDP growth, my fellow bear (realist?), David Rosenberg at Gluskin Sheff, points out in the chart below that a US recession is almost certainly a done deal (never say certain, as in 1956, when recession was temporarily averted for all of nine months). But with this sort of record the onus is now on the optimists to demonstrate why on earth they still believe in a second-half recovery and growth in 2012.

Now, anyone who bought into the dulcet tones of the bullish brigrade is likely to do very badly. A fact which will come as hubris. In Edwards opinion if you were dumb enough to listen to that story, well you reap what you sow:

And in the same way that a country is said to get the government it deserves, I believe the market gets the macro commentators it deserves: i.e. perpetually bullish analysts, taking no personal risk with their never-ending consensus chatter.

After all it was always pretty obvious what was going to happen.

It was just a question of when, rather than if:

Put into its proper Ice Age context, the events of the past decade are entirely explicable. As we see a short-lived economic recovery failing only two years into the cycle and a plunge back into recession, we remind investors that this was exactly the Ice Age template that Japan showed us. A fragile recovery undermined by private sector deleveraging collapses as a semi-bankrupt government tries to rein in runaway deficits.

What next? Well, its Ice Age 3.

Heres how it goes and this is very much of the moment (especially if you are a London resident):

We are now entering the third phase of the Ice Age when another cyclical failure combines with a secular de-rating of equities and re-rating of government bonds. I and many others have been pointing out for a long time now the simple fact that the global economy has been living way beyond its means for years. A massive transfer of income to the very rich has occurred while middle class real incomes stagnated. The middle classes only tolerated this because Central Bankers created housing booms to keep the impoverished middle classes borrowing and spending to give them the illusion of prosperity and stop them from revolting.

I believe the Fed and Bank of England, in particular, were wholly complicit in this daylight robbery (see link). These unsustainable private sector, debt mountains were transferred to the public sector in 2008 to prevent the adjustment to the depression-era reality that the debt unwind would undoubtedly have brought about. Yet, those debts are as unsustainable in the hands of the public sector as they were in the private sector.

Central bank polices havent changed though. Print and print and print. And if that doesnt work, print some more. And as London burns, the point I have always made is that the US and UK are not like Japan in one very special way. Although Japan suffered a decade of pain it is a very homogenous, equal society. The UK and US are not. Some readers may not know that rioting and looting has broken out around London. While I hear the UK politicians denounce the looters as common criminals (which of course they are), I cant help but think that Louis XVI in 1789 and Tsar Nicolas II in 1917 might have said the same thing.

Crikey,

Here comes the revolution. Prepare.

 

 

 

Fed Move, Pavlovian Market Response: Reactions  The Wall Street Journal  Mark Gongloff  Paul Krugman scoffs at the Fed-fueled rally:

The Fed didnt announce a new policy. And despite what some press reports said, it didnt even commit to keeping rates low; all it did was say that if the economy stays weak, rates will stay low well, duh and that it might think about doing other stuff one of these days.

Tyler Durden is amazed:

Following a 600 point plunge in the DJIA yesterday, today we see a 400 point surge following the presentation of the weak case of the expected Bernanke Put. And completing the amazement, the 10 Year bond, moved to almost record lows, and then retraced virtually the entire move, as nobody knows what central planning has in store for America any longer. Additionally, after being up 50%, VIX is now down 22%. Congratulations Ben: in taking central planning to nth double-down levels, you have now broken not only the stock, but the bond market as well…’

 

 

Faber's Pessimism on the U.S. Downgrade  08/09/2011 By EconMatters: Markets saw the worst day since the 2008 financial crisis on Monday, August 8th, the first trading day since Standard & Poor's downgraded the United States' credit rating. Under the weight of a possible twin crisis in Europe and in the U.S., Dow Jones industrial plunged 634 points. Stocks have lost 15% of their value in just two and a half weeks. On a day like this, who else other than Marc Faber, publisher of the Gloom, Boom & Doom report, would be more appropriate to appear on Bloomberg to talk about the aftermath of the U.S. debt downgrade... Faber indicates a bear market already started on May 2, 2011…’

 

 

 

The 10 Most Indebted Governments in the World   http://wallstcheatsheet.com/stocks/the-10-most-indebted-governments-in-the-world.html ‘…Coming in first place is Japan (NYSE:EWJ), with a whopping $13.795 trillion in debt, just short of the the $14.27 trillion in debt the U.S. carries .. Coming in second against Japan in terms of its debt-to-GDP ratio is Greece, where debt is a relatively low 139% of GDPHot Feature: Who Owns U.S. Debt? Following Greece on the list is Italy (NYSE:EWI), then Iceland, Belgium, Ireland, and the U.S. So why isnt Japan enduring the same kind of financial crisis that so many countries with significantly less debt are currently facing? The answer is simple: Japan owes most of its debt to itself. In comparison, the U.S. owes about 30% of its debt to foreign investors, with China (NYSE:FXI) holding $1.1 billion in U.S. debt, more than any other country…’

 

 

 

Fear Index VIX Up 50%, And In Backwardation, Confirms Fully Fledged Bear Market Volatility slapped markets in the face on Monday, surging 50% in its biggest one-day move since February 2007.  Furthermore, the whole VIX futures curve has been inverted and is in backwardation, indi...

 


 

The Entire World Is Going Bear Market Business Insider | A scary aspect of this selloff: There’s nowhere safe.




8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse | Are you ready for part two of the global financial collapse? When we examine this deal that way, what does it look like? The Economic Collapse Aug 9, 2011 Are you ready for part two of the global financial collapse?  Many now fear that we may be on the verge of a repeat of 2008 after the events of the last several days.  On Friday, Standard & Poors stripped the U.S. government of its AAA credit rating for the first time in history.  World financial markets had been anticipating a potential downgrade, but that still didnt stop panic from ensuing as this week began.  On Monday, the Dow Jones Industrial Average dropped 634.76 points, which represented a 5.5 percent plunge.  It was the largest one day point decline and the largest one day percentage decline since December 1, 2008.  Overall, stocks have fallen by about 15 percent over the past two weeks.  When Standard & Poors downgraded long-term U.S. government debt from AAA to AA+, it was just one more indication that faith in the U.S. financial system is faltering.  Previously, U.S. government debt had a AAA rating from S&P continuously since 1941, but now that streak is over.   Nobody is quite sure what comes next.  We truly are in unprecedented territory.  But one thing is for sure there is a lot of fear in the air right now.So exactly what caused S&P to downgrade U.S. government debt?Well, it was the debt ceiling deal that broke the camels back.According to S&P, the debt ceiling deal falls short of what, in our view, would be necessary to stabilize the governments medium-term debt dynamics.As I have written about previously, the debt ceiling deal was a complete and total joke, and S&P realized this.Forget all of the huge figures that the mainstream media has been throwing at you concerning this debt ceiling deal.  The only numbers that matter are for what happens before the next election.The only way that the current debt ceiling deal will last beyond the 2012 election is if Obama is still president, the Democrats still control the Senate and the Republicans still control the House.  If any of those things change, this deal ceiling deal is dead as soon as the election is over.Even if all of those things remain the same, there is still a very good chance that we would see dramatic changes to the deal after the next election.So in evaluating this deal, the important thing is to look at what is going to happen prior to the 2012 election.Well, Barack Obama and the Democrats get the debt ceiling raised by over 2 trillion dollars and will not have to worry about it again until after the 2012 election.The Republicans get 25 billion dollars in savings from spending increases that will be cancelled.The Super Congress that is supposed to be coming up with the second phase of the plan may propose some additional spending cuts that would go into effect before the 2012 election, but that seems unlikely.So in the final analysis, the Democrats won the debt ceiling battle by a landslide.25 billion dollars is not even 1 percent of the federal budget.  The U.S. national debt continues to spiral wildly out of control, and our politicians could not even cut the budget by one percent.Somehow our politicians believed that the rest of the world would be convinced that they were serious about cutting the budget, but it turns out that global financial markets are tired of getting fooled.It has gotten to the point where now even the big credit rating agencies are being forced to do something.  Not that they really have much credibility left.  Everyone still remembers all of those AAA-rated mortgage-backed securities that imploded during the last financial crisis.  The reality is that the big credit rating agencies are a bad joke at this point.Several smaller credit rating agencies have already significantly slashed the credit rating of the U.S. government.  But a lot of pressure had been put on the big three to keep them in line.But now things have gotten so ridiculous that S&P felt forced to make a move.Sadly, our politicians are still trying to maintain the charade that everything is okay.  Barack Obama says that financial markets still believe our credit is AAA and the worlds investors agree.Once again, Barack Obama is dead wrong.The truth is that the credit rating for the U.S. government should have been slashed significantly a long time ago.  This move by S&P was way, way overdue.Moodys might be the next one to issue a downgrade.  At the moment, Moodys says that it will not be downgrading U.S. debt for now, but Moodys also says that it has serious doubts about the enforceability of the budget cuts in the debt ceiling deal.This crisis is just beginning.  It is going to play out over time, and it is going to be very messy.The following are 8 more reasons why you should be deeply concerned that the U.S. government has lost its AAA credit rating.

#1 The U.S. dollar and U.S. government debt are at the very heart of the global financial system.  This credit rating downgrade just doesnt affect the United States it literally shakes the financial foundations of the entire world.

#2 As the stock market crashes, investors are flocking to U.S. Treasuries right now.  However, once the current panic is over the U.S. could be faced with increased borrowing costs.  The credit rating downgrade is a signal to investors that they should be receiving a higher rate of return for investing in U.S. government debt.  If interest rates on U.S. government debt do end up going up, that is going to make it more expensive for the U.S. government to borrow money.  The higher interest on the national debt goes, the more difficult it is going to become to balance the budget.

#3 We could literally see hundreds of other credit rating downgrades now that long-term U.S. government debt has been downgraded.  For example, S&P has already slashed the credit ratings of Fannie Mae and Freddie Mac from AAA to AA+.  S&P has also already begun to downgrade the credit ratings of states and municipalities.  Nobody is quite sure when we are going to see the dominoes stop falling, and this is not going to be a good thing for the U.S. economy.

#4 10-year U.S. Treasuries are the basis for a whole lot of other interest rates throughout our economy.  If we see the rate for 10-year U.S. Treasuries go up significantly, it will suddenly become a lot more expensive to get a car loan or a home loan.

#5 The current financial panic caused by this downgrade is hitting financial stocks really hard.  The big banks led the decline back in 2008, and it looks like it might be happening again.  Just check out what CNN says happened to financial stocks on Monday.

Financial stocks were among the hardest hit, with Bank of America (BAC, Fortune 500) plunging 20%, and Citigroup (C, Fortune 500) and Morgan Stanley (MS, Fortune 500) dropped roughly 15%.

#6 China is freaking out. Chinas official news agency says that China has every right now to demand the United States to address its structural debt problems and ensure the safety of Chinas dollar assets.  If China starts dumping U.S. government debt that would make things a lot worse.

#7 There are already calls for the Federal Reserve to step in and do something.  If the U.S. economy drops into another recession, will we see more quantitative easing?  It seems like we have reached a point where the Fed is constantly in emergency mode.

#8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR.

“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap”

Dick Cheney once said that deficits dont matter, but the truth is that all of the debt we have been piling up for decades is now catching up with us.The United States is in such a huge amount of financial trouble that it is hard to put into words.  The days of easy borrowing for the U.S government are starting to come to an end.  We have been living in the greatest debt bubble in the history of the world, and it has fueled a tremendous amount of prosperity, but now the party is ending.

A whole lot of financial pain is on the horizon.  Please prepare for the hard times that are coming.


 

Don't Fall For The Market's Head Fakes at Forbes David Trainer The mar­ket decline expe­ri­enced thus far is closer to its begin­ning rather than its end. Tuesdays refresh­ing mar­ket rise was likely just a flash in the pan.

There is noth­ing that politi­cians or reg­u­la­tors can do to pre­vent the nat­ural price dis­cov­ery that is crit­i­cal to the long-term health of our cap­i­tal­ist system.

The mar­ket needs to go down again before it can sus­tain any future rise.

We sim­ply must deal with the loads of toxic and mis-allocated cap­i­tal that our prof­li­gate soci­ety has cre­ated over the past 20+ years.

Allow me to explain how we got our­selves in this sit­u­a­tion. The figure below high­lights the three suc­ces­sive stock mar­ket bub­bles in just over 10 years. Com­pare the size of these bub­bles and the rise in stock prices over the last 25 years com­pared to the prior 65 years. A sim­ple trend­line fur­ther accen­tu­ates just how much stock prices have appre­ci­ated com­pared to his­tor­i­cal trends.

Fig­ure 1: His­tor­i­cally Enor­mous Stock Mar­ket Bub­bles Keep Com­ing Back

http://blog.newconstructs.com/wp-content/uploads/2011/08/figure1.jpg

Sources:   New Con­structs, LLC and Ibbot­son Ibbot­son, 2010 Ibbot­son Stocks, Bonds, Bills and Infla­tion Val­u­a­tion Year­book, (Chicago: Morn­ing Star, 2008), 228–229. *Large Cap Stocks as defined by Ibbot­son are the best com­par­i­son for the S&P 500, which did not exist as it does today in 1926.

I am not sug­gest­ing that stock prices should revert to the long-term trend­line. I fully appre­ci­ate the accel­er­at­ing pace of inno­va­tion real­ized by our soci­ety and its impact on stan­dards of liv­ing and improved uti­liza­tion of resources.

There is no ques­tion that we live in unprece­dented times of pros­per­ity and wealth cre­ation. And tech­nol­ogy holds great promise for the future achieve­ment of mankind and will drive improve­ment in the stan­dards of liv­ing around the world.

The prob­lem is that we have got­ten ahead of our­selves. By how much, I am not sure. But I am sure that we are due a (last­ing) cor­rec­tion in the stock mar­ket, and the longer that cor­rec­tion is put off, the more painful it will be.

To illus­trate, lets review what drove the last two mar­ket bubbles.

  1. Tech bub­ble – irra­tional exu­ber­ance about the value in tech stocks com­bined with rather loose mon­e­tary pol­icy pushed stocks and cap­i­tal flows to ridicu­lously high levels
  2. Hous­ing bub­ble – lax lend­ing stan­dards, unscrupu­lous bankers, con­flicted reg­u­la­tors, a bot­tom­less appetite for con­sumer spend­ing and a seem­ingly infi­nite amount of cheap money to finance consumption.

Now, lets review what hap­pened after these bub­bles burst.

  1. After the tech bub­ble: mon­e­tary pol­icy remained highly accom­moda­tive and gov­ern­ment stim­u­lus was aplenty
  2. After the hous­ing bub­ble: mon­e­tary pol­icy remained highly accom­moda­tive and gov­ern­ment stim­u­lus was aplenty

See the response pat­tern? See how it affected the markets?

It is as if the bub­bles never burst. Game back on. Like a high-school party, the music stops and every­one is quiet when the cops show up. Some­one con­vinces the cops that noth­ing unscrupu­lous is going on and all will be calm and qui­et. Then, as soon as the cop car is out of sight, the music gets turned back on and the party goes harder.

What will be the response to the third bub­ble that is forming?

That is the ques­tion that I think the mar­ket is finally fac­ing. The answer is not the same as before.

The gov­ern­ment has run out of stim­u­lus and pol­icy bullets.

Really, what else can politi­cians and reg­u­la­tors do to engi­neer a soft land­ing, or should I say, another bub­ble.

Figure 1 shows that we never really landed. We rocketed from one bubble to the next.

Lets take a look at the options avail­able via the two main forces for stim­u­lat­ing eco­nomic recovery:

  1. Fis­cal pol­icy – given the fed­eral, state and munic­i­pal debt and bud­get prob­lems, another round of stim­u­lus spend­ing or another TARP-like pro­gram is prob­a­bly not in the cards. The funds are sim­ply not avail­able. Not to men­tion, I do not think another bailout plan would go over very well with tax-payers.
  2. Mon­e­tary pol­icy – here we have three poten­tial options.
    1. Lower rates – can they go any lower? The answer is not mean­ing­fully lower unless the Fed­eral Reserve wants neg­a­tive nom­i­nal rates. In addi­tion, low inter­est rates under­mine long-term eco­nomic growth poten­tial.
    2. Extend QE2 to QE3 – given that the point of QE2 was to keep inter­est rates, espe­cially mort­gage rates low, I do not think addi­tional quan­ti­ta­tive eas­ing in the form taken so far would have much if any impact on rates given how lower they already are. More­over, dri­ving oil and other com­mod­ity prices higher by fur­ther under­min­ing the value of the dol­lar is not exactly con­ducive to growth.
    3. A new type of QE3 – sup­pose the Fed were to pur­chase large amounts of assets other than trea­suries such as fore­closed homes. I think that action would likely spook investors because it would sig­nal that the car­ry­ing value of those homes were too high. Oth­er­wise, pri­vate investors would have already bought them for their own port­fo­lios. And bank stocks would sink as investors real­ize that addi­tional write-offs might be com­ing. The same reac­tion applies to any other asset that the Fed might choose to take off pri­vate investors’ hands.

So, who is going to bail us out this time?

My over­rid­ing mes­sage is that no one should have bailed us out to begin with. The longer we avoid the painful process of delever­ag­ing and return­ing to a more delib­er­ate and ratio­nal mode of cap­i­tal allo­ca­tion, the more we delay the inevitable. The more we shift the blame for our finan­cial mis­takes to the pub­lic sec­tor, the deeper the hole we must dig out of.

Which brings me to the next point: shift­ing respon­si­bil­ity to the pub­lic sec­tor, i.e. gov­ern­ment, presents some very seri­ous prob­lems and head­winds for future growth:

  1. The gov­ern­ment is not bail­ing any­one out, tax­pay­ers are. In essence, the gov­ern­ment is using hard-earned tax rev­enue to pay for the mis­takes of cer­tain mem­bers of our society.
  2. Moral haz­ard is con­fused with moral oblig­a­tion. Re-distribution of wealth to those that are in gen­uine need of assis­tance from soci­ety is in our long-term best inter­ests. But moral oblig­a­tion quickly becomes moral haz­ard when the re-distribution applies to peo­ple who should, but pre­fer not to, care for themselves.
  3. When the peo­ple who make mis­takes do not pay for mis­takes, they keep mak­ing them…bigger and big­ger. Can you say “mort­gage back securities”?
  4. We run out of money. When cap­i­tal from pro­duc­tive sources is siphoned away to sub­si­dize unpro­duc­tive invest­ments, cap­i­tal is destroyed and never to be found again. When there is less cap­i­tal avail­able for pro­duc­tive invest­ments, growth is forced to slow as are incomes and payrolls.
  5. When growth slows and jobs are not avail­able, bad things hap­pen. For an exam­ple of bad things happening now, take a look at the riots in the streets in Lon­don.

Until we allow the nat­ural price dis­cov­ery that unfet­tered mar­kets are designed to pro­vide, we con­tinue to sub­si­dize unpro­duc­tive invest­ments. And the longer we sub­si­dize unpro­duc­tive invest­ments, the more wealth (and jobs) we destroy in the present and in the future.

Sure, it feels bet­ter when the stock mar­ket sky­rock­ets, bank accounts are fat, growth is strong and the finan­cial future is bright. Wasnt that what we got in the 1990s, then again in the first decade of this century?

It can­not go on for­ever. Con­sider how much the hous­ing bub­ble was dri­ven by too much bor­row­ing? Though financ­ing might be cheap and easy to get for extended peri­ods of time, there is not an infi­nite supply.

At its core, bor­row­ing is sim­ply a method of cash­ing in today on future earn­ings. The more we bor­row against future earn­ings, the less we have in the future.

Using bor­rowed funds to sub­si­dize unpro­duc­tive invest­ments only com­pounds and accel­er­ates wealth destruction.

Key­ne­sian poli­cies can be suc­cess­ful in cer­tain sit­u­a­tions and for lim­ited amounts of time, but they can­not be sus­tained infi­nitely. Bor­row­ing and spend­ing by the gov­ern­ment can help the econ­omy sur­vive a soft patch or decrease the depth of a reces­sion, but it does not fix the under­ly­ing cap­i­tal allo­ca­tion problem.

Key­ne­sian eco­nomic poli­cies are patches to eco­nomic prob­lems, not fixes. If extended for too long, they only make mat­ters worse.

Before the hous­ing bub­ble, the gov­ern­ment was lev­ered to the hilt. After the hous­ing bub­ble, con­sumers are also lev­ered to the hilt. Both are strug­gling to bal­ance their checkbooks.

So who is left to bail us out? Only two potential candidates: Amer­i­can cor­po­ra­tions and for­eign countries.

A quick sur­vey of the sta­tus of the other major eco­nomic pow­ers is not exactly inspir­ing. China is slow­ing growth to fight its infla­tion prob­lems. The Euro­pean Unions, well, they have their own prob­lems. Japan is not exactly pros­per­ing. In gen­eral, there are few, if any, global eco­nomic bright spots. None are large enough to bail out any­one.

There are many bright spots in cor­po­rate Amer­ica. Com­pa­nies like Apple (AAPL-very attrac­tive rat­ing), Google (GOOG-very attrac­tive rat­ing), Microsoft (MSFT-very attrac­tive rat­ing) and many oth­ers are as prof­itable as ever. Their returns on cap­i­tal rank among the very best in the world. They are shin­ing exam­ples of cap­i­tal real­iz­ing its high­est and best use. For the coun­try as a whole, cash flow returns on assets are near all-time highs. Much of the recent prof­its, how­ever, have come at the expense of the con­sumer as wages have grown much more slowly than profits.

Then, there are the banks. US banks recently enjoyed the largest bailout in the his­tory of the world. Fur­ther, their profit mar­gins have been sub­si­dized by sus­tained low inter­est rates. And yet, they are lend­ing lit­tle money.

Is the prob­lem that banks do not want to lend or that there are not enough borrowers?

I think the answer is both. Many banks are still car­ry­ing a great deal of toxic assets. With so much risk already on their bal­ance sheet, they can­not afford to take on more.

As for bor­row­ers, the uncer­tain tax, reg­u­la­tory and eco­nomic out­looks are not exactly entic­ing entre­pre­neurs, small and large busi­nesses to take risk.

To sum­ma­rize, there is no one left to bail us out this time.

So, what hap­pens next? We buckle down and face the long hard road to true, not arti­fi­cially sub­si­dized recovery.

We rec­og­nize facts:

  1. We can­not spend more than what we make for­ever. Seems like an obvi­ous state­ment, but that is not how the United States has oper­ated over the past sev­eral years.
  2. We have wasted lots of cap­i­tal by sub­si­diz­ing unpro­duc­tive investments.
  3. We have delayed the process of cre­ative destruc­tion whereby unpro­duc­tive invest­ments are replaced by pro­duc­tive investments.
  4. Because of our waste­ful­ness and the delay in cre­ative destruc­tion, much time is required to restore wealth back to the lev­els to which we have become accustomed.
  5. We must rebuild dili­gently, ratio­nally and delib­er­ately to ensure cap­i­tal real­izes its high­est and best use.
  6. Kick­ing the can down the road, Euro-style, only delays the inevitable and makes the prob­lem worse.
  7. Even­tu­ally, we will be much bet­ter off than what we started.

In the mean­time, the stock mar­ket and eco­nomic activ­ity will con­tinue to suf­fer. No pain no gain.

 

 

Stock Market Slide Is the Latest Blow to the Middle ClassThe Daily Ticker  Peter Gorenstein Stocks resumed their decline on Wednesday -- the third big drop in the last five trading days. The Dow Jones Industrial Average closed down 520 points, or 4.6%. The S&P 500 fell 4.4% to close at 1,121, while the Nasdaq was taken down more than 101 points to the end the day at 2,381.In other words, Tuesday's gains, in which the Dow jumped 430 points, are a distant memory.Stocks are on track for their worst monthly drop since after the Lehman Brothers bankruptcy in the fall of 2008. After making steady gains in their 401(k) plans since then, average Americans are once again falling further behind on their retirement goals. The recent drop in the market is making headlines, but as Aaron Task and the Breakout team discuss in this clip, it's by no means the only economic hardship facing the middle class -- it's just the latest. Here are some other headlines you might have missed while you were watching your portfolio shrink over the last few days.

HORRIFIC HOUSING MARKET

Existing home sales fell 2.8% in the second quarter compared to a year ago, according to the National Association of Realtors. The number of home sales is also off, falling 5.4% from the previous quarter and is down almost 13% compared to the sometime last year. At this rate the housing market will continue to be a drag on the economy.

BACKDOOR BAILOUT FOR BANKS

Meanwhile, as homeowner pain reaches new heights, it appears banks continue to receive favorable treatment from the government. The Wall Street Journal reports Fannie Mae -- essentially a government entity (that by the way continues to receive billions in taxpayer aid each quarter) -- just spent $500 million to buy the servicing rights to a Bank of America (BAC) portfolio of "seven million loans still causing the most problems." That's what they call a backdoor bailout.Speaking of Bank of America, the stock continued to mirror the pattern of steep sell-offs and furious rallies seen in the broader market. This time, shares of BofA were down 10.9% to $6.77. A conference call held by CEO Brian Moynihan with investors, led by Fairholme's Bruce Berkowitz, didn't help the bank's cause. According to a summary of the call in the WSJ, Moynihan pushed back against those who would question how he has performed while leading the company, and he said BofA would not part ways with brokerage firm Merrill Lynch. Additionally, he said there weren't "many days when I get up and think positively about the Countrywide transaction in 2008."BofA bought the big mortgage firm during the 2008 credit crisis, and it has been responsible for a gigantic financial drag on the firm in the time since.

FED'S FOLLY

The Federal Reserve on Tuesday said it will keep interest rates "exceptionally low" through the middle of 2013. That and the possibility of more quantitative easing may eventually reflate assets -- a good thing for stock portfolios. The problem is the Fed's reaction to the crisis has and will continue to do little to improve real economic conditions, such as stubbornly high unemployment, which remains at 9.1% more than two years after the financial crisis. And, for those able to save some money, the low interest rates aren't rewarding your bank accounts. Add it all up, and unfortunately there's little to feel good about.

 

 

Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go the retaliation the long awaited payback (quid pro quo -the no pros- witheld) for long overdue pervasively corrupt, defacto bankrupt u.s. downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities.  SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!

 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Here’s some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

 

 

Sincerely and Regards,

 

Al Peia




 

Unions angry over Postal Service cuts They said any move to break labor contracts to lay off 120,000 would hurt the already ailing movement. (Washington Post) [ I reiterate my call for the well managed, efficient, and reliable company, UPS to take over the operation of the poorly managed, inefficient, and unreliable USPS. Postal Service seeking 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think its a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable: 
October 15, 2010 (*see infra {ultimately delivered by UPS})

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 



 

 

Five myths about the Dow What drives it up and down? Is it a good market barometer? (Washington Post) [ Yeah! This is a great topic which seems an age-old quandary manifesting in different forms at different times. Indeed, in my evening MBA program studies at NYU, GBA (MBA Finance, 1977) the ‘questions’ concerning the Dow from an investment perspective were in no short supply (ie., from not being representative of the market, to higher p/e multiples, to slower growth from mature companies, to higher prices per share on an absolute basis, etc.). When asked why the Dow, the Security Analysis Professor, Dr. Douglas Bellmore, an extremely successful analyst / investor / author on finance in his own right, and head of the research arm / department of an institutional wall street brokerage firm by day, would respond simply by saying, ‘ he wasn’t interested in ‘buying the market’ (cited were concerns of liquidity with his oft-repeated rhetorical quip, ‘sell … to whom?’, which was often problematic to the substantial downside then, particularly for Nasdaq / Over-the-counter’ issues which is far less problematic today with computer efficiency undreamed of then (though also now used for nefarious fraudulent purposes undreamed of then)[ I began my MBA thesis with him and completed same owing to his vacation in the summer, 1977, with the great, eloquent, and astute Economist / Professor, Dr. Robert Kavesh (‘Economic Forecasting’ Butler and Kavesh – I had his course of the same name as his book) since I was beginning law school evenings that fall. ] ( Interestingly, in the bond analysis portion of the course I asked whether you can and should rely on the rating companies, predominantly S&P. He paused, and said ‘that’s a good question’ – it was also the only time he said such of my questions – then responded affirmatively, ‘yes, you can rely on them’ (different time, different place – I’m sure his answer would have been substantially different today). The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! So what’s changed of significance (other than the full moon and consequent effects on the lunatic wall street frauds Train Reading: The Stock Market Is Insane The Wall Street Journal 



 

GE all in on aviation deal with China  Challenge of China: Put technology on the table and keep some U.S. jobs or miss the huge market. (Washington Post) [ Lotta weighin goin on! Riiiiight! Dont make me laugh! Is China Bad For The US Job Market? at Forbes [ Duh! Ya think. Come on! Even rhetorically theres no real question here. Theres no upside nor room for discussion on this point. Even when thinking theyre buying american, ie., apple, etc., theyre buying Chinese, Korean, Japanese, etc. (components); and yet, american tech is still absolutely horrendous. And, let me add that the communist Chinese are far from brilliant; one need only witness that Chinese leader standing with lobotomy joe biden assuring all theyll be no default double duh! as pervasively corrupt, defacto bankrupt americas printing those evermore worthless dollars at warp speed. What dopes they are! Yes, like the bureaucratic plutocracy americans the communist Chinese whose success is measured in capitalistic terms are getting dumber and dumber like their american fiances. ] Has China single handedly destroyed the U.S. job market? [Not china, but rather those geniuses at the cia, nsa, corporate execs, the bushes/poppy-san the former communist Chinese ambassador and that strategic engagement thing. Wake up smell the b***s***, not roses! ]


 

 

Rep. Waters to tea party: ‘Go straight to hell’  (Washington Post) [  Drudgereport: SANTORUM: 'maxine waters is vile' [ she’s worse than that, and a total embarassment for america and california particularly! ] ...
Maxine Waters: 'The tea party can go straight to hell'...

Tea Party fires back...
MORGAN FREEMAN TELLS OBAMA TO 'GET PISSED OFF' [ sounds like a plan … ****** to ****** … the ****** plan! ] ...
Obama Economists Admit: 'Stimulus' Cost $278,000 per Job...
Philadelphia extends curfew after flash mobs [ new u.s. Christmas carol – ‘america’s beginning to look a lot like sub-saharan africa, everywhere you go’ . They are beasts of burden at most who are a burden to most at best  … you’ll never change them … Think about all those costly ‘make-work’ jobs that serve no real economic purpose; ie., federal, state, local, uspostal service, etc.. And, they can’t even do those jobs reliably, efficiently, effectively which is a drag on civilized society! ] ...

 

 

Details of Obama’s jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for ‘wobama the b’ (for b***s***), the eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Really! He’s a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him … maybe he’s somewhat of an allure as in a freak show. He’s a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as ‘bush failure 3’. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they don’t pressure President Obama because he is loved by black voters.  Obama ‘Takes More Vacations Than Any Human Being I’ve Ever Seen’ Fox News | “Here we have a country that really is going to hell in a handbasket.” Bus Tour Bust: Obama’s Approval Plummets Back Into 30s, Says Gallup CNS News | Obama’s politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ]New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

 

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

 

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobamas actions had not belied his words/campaign promises, the nations position, though still ominous, would have been substantially improved.

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv  
 

 

 

 


European bank continues bond-buying It has become the region’s “last resort” investor as it tries to keep a lid on the rates paid by Italy, Spain.  (Washington Post) [ Nothing succeeds quite like failure in the ‘new west’. From people-killing, nation-bankrupting, nation-destroying perma wars to QE’s to gimmicks to ‘warp speed’ currency printing presses, the lock-step rush for the abyss like lemmings they’ve become. Never mind that across the board, such as the aforementioned has actually exacerbated the crisis / problems they were supposedly meant to solve. This truly has become a ubiquitous scenario of the blind leading the blind; with the blindest of all, viz., pervasively corrupt – defacto bankrupt america, leading the charge (no pun intended – though their credit bears mentioning  - 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse ‘…  #8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR….“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap” ..’   Why You Shouldn't Buy Into This Plunge Forbes/O'Neil‘The market is building momentum to the downside’). !  Italy unveils plan to calm fears of escalating crisis  (WP) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europe’s debt crisis threatens Italy (WP) [ Yeah, dem’ darn PIIGS.  Reminds me of that joke (I won’t repeat it here except the punch line): ‘That’s black bart’s girl’.  Pelosi: ‘We are not Greece’  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobama’s got a boehner … so not to be so hard on them; if pelosi says it, it must be true … Not! …Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the same’s wobama’s ‘far-reaching plan on debt’, we all know ‘wobama the b’ (for b***s***) is total b***s*** which means like Greecey PIIGS they’ll be back to the trough for more … slop … py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ ] 

 



As investors panic, CEOs vote with their wallets for local companies August has seen a historic uptick in the number of corporate insiders buying shares of their companies. (Washington Post) [ I’m now sorry I didn’t save the article that spoke to this recent phenomena as being contraindicated and not a good sign but rather merely a function of some recent fine print in new compensation plans constrained by current and expected poor financial / economic results. Indeed, of greater import is as pointed out by Navin just months ago: Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher. Yes, it’s normal for insiders to be selling some of their stocks so they can buy new yachts and some of this is pre-planned. But that ratio — which has spiked recently — is extraordinarily high, one might even say off-the-chart   The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is Insane The Wall Street Journal ,  Accounting Gimmics Resurface as Growth Flounders at TheStreet ‘Rebekah Smith, director of financial advisory services at accounting and consulting firm GBQ consulting, says accounting tricks and schemes are likely to start unraveling as we head into 2012 and the lag effect catches up. "The typical accounting fraud goes on for about 18 to 26 months before it is uncovered. The frauds that took place in 2009 are not going to surface until later in 2011 or into 2012." ‘  ,  Morgan Stanley Biggest Welfare Recipient as Federal Reserve Lent Banks $1.2 Trillion During Financial Crisis Wall St. Cheat Sheet  ,  Minyanville's T3 Daily Recap: Market Gives Back Weekend Gains Amid US Bank Woes at Minyanville’  ,  Social Security disability on verge of insolvency     ,  8-19-11  Welcome To The New Bear Market For Stocks  Forbes / Suttmeier ,  Dow/Gold Ratio Lowest Since 1987 Crash   Forbes /  Adrian Ash  ,   Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  Tech Leading Market Lower The Wall Street Journal  ,  Banks closed in Fla, Ga, Ill; 2011 total is 68   ,   No Recession Coming ... It's Already Here  Previous:8-18-11 Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says    Crimes Wrecked The Markets    ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed ‘A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    Famed economist predicts economic calamity in 2012. See the evidence.Newsmax http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence

 

 

Oil prices and Gaddafi’s potential fall? Any new Libyan government will need crude revenues, but analysts warn against premature optimism. (Washington Post) [ Premature optimism? How ‘bout total unreality owing to the over-printed, ever more worthless so-called reserve currency, viz., the ‘dollar’. The ‘dow / gold’ ratio is illustrative of this reality-based problem which extends as well to those heavily commissioned / traded paper shares.  A Decade of Decline in Equity Markets Faisal Humayun [ This is a must read and explains how the market’s been artificially propped, the dow relative to hard assets, ie., gold (dow/gold ratio), has actually crashed 78%, and comparable prospects for the next decade, etc.. ‘…The Dow Jones Index was trading at 11,357 levels at the beginning of the year 2000. More than a decade later (as of beginning July 2011), the index is at 12582 (8-22-11/now 10885). Therefore, the index has gained 11% (8-22-11/now lost 10+%) in the last ten years…’ Yet, the inflationary dollar (declining) debasement rate was 31%. (-31%) {See the inflation calculator infra – and that’s just the government (inflation) numbers … reality is much worse!} Meanwhile, the frauds on wall street are churnin’ and earnin’ like never before at lightning computerized speeds enabling the high-frequency trades that are commissioned in unprecedented large volumes; a big net negative in real economic terms.] Just another gimmick / diversion / obfuscation: The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is Insane The Wall Street Journal ,  Accounting Gimmics Resurface as Growth Flounders at TheStreet ‘Rebekah Smith, director of financial advisory services at accounting and consulting firm GBQ consulting, says accounting tricks and schemes are likely to start unraveling as we head into 2012 and the lag effect catches up. "The typical accounting fraud goes on for about 18 to 26 months before it is uncovered. The frauds that took place in 2009 are not going to surface until later in 2011 or into 2012." ‘  ,  Morgan Stanley Biggest Welfare Recipient as Federal Reserve Lent Banks $1.2 Trillion During Financial Crisis Wall St. Cheat Sheet  ,  Minyanville's T3 Daily Recap: Market Gives Back Weekend Gains Amid US Bank Woes at Minyanville’  ,  Social Security disability on verge of insolvency      While Washington Fiddled The Economy Burned at Forbes  http://www.albertpeia.com/inflationcalculator.htm  http://www.albertpeia.com/wobamavoters.gif

 

 

Ahamed: What is the market really telling us?  (Washington Post) [ Whatever it is, it aint good! Indeed, the market in terms of communicating anything must fall within the ambit of the term brain-damaged at best, insane at worst, with all the concomitant disabilities attendant thereto, including a penchant for criminal, fraudulent activities to obfuscate in self-interested fashion the damage attendant to their criminally insane, brain-damaged condition for their own gain to almost everyone elses detriment.  THE STOCK MARKET HAS LOST ITS MIND Bethany McLean in Slate Risk On! Do the Fed, computer trading, and a few hedge funds rule the market? That might explain why it's lost its mind. After the madness of last week and the rollercoaster at the beginning of this week, the stock market recovered from its Aug. 10 rout to bounce 423 points on Aug. 11. It was the fourth day in a row in which the index moved by more than 400 points, which has never happened before in history. As I write this, stock prices are leveling off, but the big swings may not be over. Has the market gone mad? Actually, yes....

 

 

 

 

Dow jumps 4 percent as markets rebound A volatile day on Wall Street ends with a last-minute rally that pared some of Monday’s historic losses and shrugged off an uncertain outlook from the Fed.  (Washington Post) [ ‘Shrugged off’? So that’s what those lightning fast computer manipulated buy programs are for. Who woulda’ thunk it? After all, it’s not as if ‘Atlas Shrugged’ in this decimated, collapsing economy of this pervasively corrupt, defacto bankrupt american nation / economy. Oh pshaw … that was just fiction; ask former ‘objectivist’ Ayn Rand afficionado ‘senile alan greenspun’ who recommends gettin’ those Weimar dollar printing presses rollin’ at warp speed which has in large part helped to get the nation rollin’ to this forlorn point. Well, ‘senile alan greenspun’ can always say he was really meant to be that ‘cobol programmer’ that he was and was meant to be.   The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! What changed from yesterday which warranted a more than 600 point plunge with paper stocks still over-valued and a 545 bounce off of afternoon lows? Nothing! Absolutely nothing, yet a manipulated computer-programmed churn-and-earn suckers’ rally based on fraud and b***s*** alone to keep suckers suckered, which makes for an especially great opportunity to sell / take profits since there’s much, much worse to come! Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com)

 

 

AAII Sentiment Survey: Investors Remain Averse to Stocks Wall St. Cheat Sheet 

 

 

 

Train Reading: The Insider-Buying Lie - Mark Gongloff

Not all insider buying is created equal Reformed Broker

Is there enough money to save the worlds banks? Jonathan Weil at Bloomberg

Warren Buffett is issuing bonds and buying stocks Fortune

US births declined in 2010 Calculated Risk

Efficient markets in action Paul Krugman

Consumers now need Treasury approval on all purchases over $50 The Onion

 

 

Report: Mutual Fund Outflows In July Most Since End Of 2008 at Barrons.com 

 

Is debt downgrade an alarm bell for U.S.?   (Washington Post) [ Do bears s*** in the woods? Is the Pope Catholic? Is this question some kind of a joke? I mean, duh! Ya think? I mean, if it isn’t, what could be? After all, this was long in the making and the pressures applied to preclude this long overdue downgrade were substantial. Yet, this mild slap on the wrist was at once, charitable and a gift inasmuch as reality warrants far worse.  8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse ‘…  #8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR….“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap” ..’    Previous: Is this some parallel universe where unfounded criticism is levied at S&P for the downgrade when they’ve actually cut the pervasively corrupt, defacto bankrupt disunited states a break by not rating what america truly is; viz., junk status for the paper / liabilities / obligations that cannot and will not be paid (or the equivalent vis-à-vis what would be in worse than evermore worthless Weimar dollars or some other ‘ponzi-like’ subterfuge, obfuscation). The amounts are insurmountable going forward. They point to Moody’s and Fitch; yet, let’s not kid ourselves, S&P is the ‘800 pound gorilla’ in this world among rating agencies and moody’s, fitch have substantially diminished themselves as entities consistent with their ‘mission and purpose’ and as well, their credibility. I mean, come on! Consider the pressure that was and continues to be applied. Moody’s and fitch, quite frankly, folded. China’s rating agency has already downgraded u.s. paper and they’re ‘holding’ (huge amounts of that u.s. junk); and hence, against their own interest. Wake up! 

 

 

 

Stock markets rally on jobs report  In fourth day of wild swings, markets surge amid mixed signals about direction of U.S. economy. (Washington Post) [  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! This an especially great opportunity to sell / take profits, particularly if you missed Tuesday or May, since there’s much, much worse to come! Thursday, Aug.11, 2011: what changed from yesterday which warranted a more than 500 point plunge with paper stocks still over-valued? Well, some bad news labeled as better than expected 1) 7,000 fewer jobless claims than expected (just a little over 1% better even if you believe them – I don’t) 2) Cisco shows results ‘better than expected’ 3) Record monthly trade deficit  [ What Recovery? Forbes ‘we can’t call this a recovery. There’s no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with.’ ‘Cisco Systems Inc’s quarterly results edged past Wall Street’s scaled-back expectations ...“They beat a low bar. A lot of it is coming from cost cutting, which we anticipated. In that sense it’s a relief,” Joanna Makris of Mizuho Securities USA told Reuters. ‘Cisco, which depends on government spending for about a fifth of its revenue, said in July it would cut 15 percent of its workforce and sell a set-top box factory in Mexico.. Cisco bulls may underestimate tough road ahead Randewich.’ ]

 

 

 

World Bank warns against future economic hardship Press TV | Zoellick pointed out that the world is now involved in redesigning the international financial system.

 

The World’s Money Is Draining Away … Where’s It Going? Washington’s Blog | All of the monetary and economic policy of the last 3 years has helped the wealthiest and penalized everyone else.

 

Both Consumer Confidence And The Labor Participation Rate Are At A 30 Year Low … That’s Not A Coincidence Washington’s Blog | A new poll from Thomson Reuters and University of Michigan shows that consumer confidence is the lowest its been for 30 years.

 



 

NATIONAL / WORLD



 

 

Legendary Investor Jeremy Grantham: America is a Banana Republic Washington’s Blog | Just different bananas perhaps? [ Of course this is absolutely true! And not just from the meaningfully lawless perspective – I had made such a statement on the record in a LA Superior Court Appellate Dept. proceeding in which said court literally ignored the law (the same is true of the costly, plushly accoutered lifetime appointee federal courts) which courts should indeed be abolished in these difficult economic / budgetary times. Additionally, from pervasive corruption, to debased over-printed currency, to gunboat diplomacy, to total incompetence, etc., america is indeed a banana republic at most.]

 

 

 

Poll: Obama Approval Hits Lowest Ever Rasmussen | Only 19% of the nation’s voters Strongly Approve of Obama’s performance as president.

 

Obama poll numbers on economy hit new low AFP | The respected Gallup organizations findings showed the embattled president down 11 points since mid-May.

 

GALLUP: Americans satisfied with ‘the way things are going’ — 11%! Gallup | Americans’ satisfaction with the way things are going in the United States has fallen back to 11%.



Obama’s ratings sink to new lows - Public pessimism about the direction of the country has jumped to its highest level in nearly three years, erasing the sense of hope that followed President Obama’s inauguration and pushing his approv...

 

Obama Approval Hits Record Low Reuters | President Barack Obamas job approval ratings plunged to a new low ahead of his major economic speech Thursday.

 

CIA lawyer says Obama administration backed and continued virtually all Bush-era programs Natural News | As he campaigned for the presidency in 2007 and 2008, then Sen. Barack Obama made clear there would be no torturing of terrorism suspects on his watch.

 

 

 

Iran demands apology from US over Saudi ambassador ‘assassination plot’ Guardian | Ahmadinejad claims US has resorted to entrapment in order to smear Iran in the eyes of the international community

 

 

Herman Cain: Entering Into A Shooting War With Iran Perfectly Alright Steve Watson | Former pizza magnate also unaware China has nukes. [He’s such a typical, dumb nigger with a typically big mHerman Cain: Entering Into A Shooting War With Iran Perfectly Alright Steve Watson | Former pizza magnate also unaware China has nukes. [He’s such a typical, dumb nigger with a typically big mouth. Niggers don’t really care what they say; as long as they’re making noise. That’s the ‘nigger-story’ in a nutshell; jive-talking b***s***! Herman Cain dodges harassment questions as third accuser surfaces CBS News Condon

  http://www.cbsnews.com/8301-503544_162-20129049-503544/herman-cain-dodges-harassment-questions-as-third-accuser-surfaces  ]outh. Niggers don’t really care what they say; as long as they’re making noise. That’s the ‘nigger-story’ in a nutshell; jive-talking b***s***! Herman Cain dodges harassment questions as third accuser surfaces CBS News Condon

  http://www.cbsnews.com/8301-503544_162-20129049-503544/herman-cain-dodges-harassment-questions-as-third-accuser-surfaces  ]

 

Infowars Launches 24 Plus Hour Offensive Against Tyranny Infowars.com | Now more than ever, we depend on your determination to spread the truth and counter the endless propaganda of the global elite.

 

Big Sis Brings See Something, Say Something To Hotel Rooms Paul Joseph Watson | Homeland Security PSA says paying for hotel room with cash is suspicious activity.

 

Sky News Reports Israel Preparing For Preemptive Strike On Iran Zero Hedge | Sky News has reported that Israeli Prime Minister Benjamin Netanyahu is trying to rally support in his cabinet for an attack on Iran.

 

Feds Claim Geriatric Domestic Terrorists Planned Attacks Like Timothy McVeigh Kurt Nimmo | FBI informants steered elderly militia into dubious terror plot.

 

Florida Man Arrested for Recording Police in Public Kurt Nimmo | Police continue to arrest people despite court rulings stating recording police in public is protected under First Amendment.

 

Suitcase sized device can remotely disable phones, intercept communications, record unique IDs Madison Ruppert | Governments around the world are increasingly taking control of civilian communications.

 

Oakland Gears Up For A Citywide Strike And The Police Admit Theyre Confused Business Insider | The city is preparing for a larger, well supported, mass strike.

 

Footage That Kills 9/11 Conspiracy Theories Actually Validates Them Paul Joseph Watson | Daily Mail in laughable hit piece that claims weakening of exterior beams caused WTC 7 collapse.

 

Remember Fukushima? Its Back Zero Hedge | What is the conventional wisdom thinking on Fukushima anyway? Out of sight, out of mind? Yeah, we thought so.

 

 

Infowars Launches 24 Plus Hour Offensive Against Tyranny Infowars.com | Battle for the republic begins today with a free video stream of Alexs weekday show.

 

Another military coup in Greece can you blame them? Patrick Henningsen | Greece could be facing the worst of all choices: loss of sovereignty or a military junta

 

Herman Cain: Entering Into A Shooting War With Iran Perfectly Alright Steve Watson | Former pizza magnate also unaware China has nukes.

 

Big Sis Brings See Something, Say Something To Hotel Rooms Paul Joseph Watson | Homeland Security PSA says paying for hotel room with cash is suspicious activity.

 

Feds Claim Geriatric Domestic Terrorists Planned Attacks Like Timothy McVeigh Kurt Nimmo | FBI informants steered elderly militia into dubious terror plot.

 

Florida Man Arrested for Recording Police in Public Kurt Nimmo | Police continue to arrest people despite court rulings stating recording police in public is protected under First Amendment.

Footage That Kills 9/11 Conspiracy Theories Actually Validates Them Paul Joseph Watson | Daily Mail in laughable hit piece that claims weakening of exterior beams caused WTC 7 collapse.

 

Sheriff: Fast and Furious Bigger Scandal Than Watergate  Paul Joseph Watson | Over two dozen Republicans call for Holder to resign.

 

 

Lindsay Lohan gets 30-day jail sentence  http://www.cbsnews.com/8301-207_162-20129112/lindsay-lohan-gets-30-day-jail-sentence [ Boy oh boy Talk about going after the low hanging fruit If only they were as diligent in going after the serious, real including very violent, criminals plaguing america generally and california particularly. After all, they are letting serious criminal felons out of jail. I do not think anyone could possibly say that Lohan is a serious threat to anyone. Im glad that she got the Playboy gig (Ive always found Playboy to be a tasteful exposé of artistically beautiful vistas). Though glad lad to see this unreasonably and unrelentingly tortured (to the point tantamount to overreaching persecution / prosecution), talented girl get work in film, I must honestly say Im less than enthusiastic that its for some new york (fiore/gotti), new jersey (mental case scientologist scientology is total b***s***- john tony manero travolta) guineas who likely will be inclined to glorify that which couldnt possibly be glorified (Francis Ford Coppola openly expressed his own misgivings concerning same, initially refusing his ‘big break’ debut) and as well his antipathy for the mob; but, I also must say his films gave rise to the career of the great actor, Al Pacino his lesser known underrated roles in Panic in Needle Park, Scarecrow, and especially the terrific film relatively few people saw, Simone, etc., along with Shakespearian theater, which ultimately justified the exception by creating some good from bad. I’d be lying if I said, ie., Godfather 1,2,3 were anything but masterfully done). I personally unequivocally hate the mob!   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf    Its also true that I hate mobs of any kind, any ethnicity, government mobs/slugs included  .  Previous:  Roman Polanski freed after Swiss reject U.S. extradition request (Washington Post, July 13, 2010) Without diminishing in any way the seriousness of the crime, this result is the direct consequence of the growing global recognition of the pervasiveness of corruption in american courts, state and federal, and america generally; so much so, that said corrupt american courts cannot be relied on anywhere, anytime. Indeed, my own sampling, though hardly random to be candid, is 5 for 5 (new jersey, new york, connecticut, virginia, california) pervasively and egregiously corrupt to the point where these costly, corrupt bureaucracies should be abolished and supplanted with alternatives as Ive previously set forth in prior comments.   /  Though Assanges arrest was on far more tenuous grounds owing to a CIA-linked girl, Roman Polanski was similarly targeted:BBC News - Roman Polanski triumphs at European Film Awards Dec 5, 2010 ... Roman Polanski's thriller The Ghost Writer wins six prizes at the European ... Polanski was working on the film at the time of his arrest in ... www.bbc.co.uk/news/entertainment-arts-11921048  {I strongly recommend this, of course, masterfully done film which deals with exactly that topic and the sordid, unscrupulous machinations of the cia / u.s. (no wonder the u.s. opted out of coverage by world treaty / The Hague thereby) to avoid detection of, and to further such activities as the war crimes referenced.}

 


BUDGET CRISIS PUTS LOS ANGELES COURT SYSTEM AT RISK ...  [Judge sends Lohan to jail for probation violation (AP)
They got her! That globe-trotting danger / threat to society, the infamous public enemy Lindsey Lohan. Guess she couldnt cough up that direct or indirect bribe. How pathetic these corrupt, kangaroo courts are! If only she was a drug dealer, armed robber, etc., she would have had the pre-paid connections to avoid this preposterous (known substantial criminals walk about freely, without fear) outcome. This, even as they are releasing substantial felons owing to budgetary considerations. ABOLISH THE CORRUPT, ECONOMICALLY WASTEFUL SO-CALLED SYSTEM, FROM MY DIRECT OBSERVATION AND EXPERIENCE .     (PREVIOUSLY ARCHIVED) HOWEVER, THIS LATEST "CALIFORNIA/LA DISTRACTION" REQUIRES ELUCIDATION AS FOLLOWS:

·        Response to App. Div. OSC

·        STATE OF CALIFORNIA ethics complaint

·        Response to Sup.Ct. OSC

·        designation of record on appeal

·        The so-called "order" appealed from.
How embarrassing for the superior court of the state of california!

·        Typical corrupt banana republic america/california court


Dirty money digitally laundered a wall street, atlantic city, and american story a very bad one and  [also see
RICO case   http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf           http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm         ]     Fraud: Its Much Bigger Than Goldman Sachs       Regulatory reform debate obscures key fact: Everybodys getting money bribes from Wall Street  


Blagojevich calls feds 'cowards and liars'…[Yes. This is a rare moment for one to say that a sleazy hypocrite like blago, who is on corrupt federale-connected mobster trump’s celebrity apprentice, happens to be correct based upon facts / reality and my own direct observation and experience and the law – Don’t forget to include corrupt federal judges as maryanne trump barry, sam alito, shiff, matz, hall, underhill, dorsey, etc.. Defacto bankrupt america’s so-called system is pervasively corrupt and broken] (AP)   [Abolish the corrupt, costly, economically wasteful lifetime extravagantly appointed federal courts - see RICO case      
           http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm           ]

 

 

 

Sheriff: Fast and Furious Bigger Scandal Than Watergate   http://www.prisonplanet.com/sheriff-fast-and-furious-bigger-scandal-than-watergate.html   Paul Joseph Watson | Over two dozen Republicans call for Holder to resign. Though heavily redacted, the documents directly discuss Operation Fast and Furious and how it involves trafficking firearms to Mexico. Tuesday, November 1, 2011

Pinal County Sheriff Paul Babeu joined over two dozen Republican lawmakers in calling on Attorney General Eric Holders to resign over Operation Fast and Furious, the gunrunning program that saw the ATF deliver some 2,000 guns directly into the hands of Mexican drug gangs, labeling the scandal worse than the Watergate cover-up that brought down the Nixon White House.

Noting that two of the guns involved in the program were found at the scene where U.S. Border Patrol agent Brian Terry was shot to death, Babeu warned that if Holder attempted to stay in power, he could bring down the entire Obama administration.

I thought it was a telling sign when President Obama embraced him and gave him the Al Capone hug and the Scarface whisper in the ear that I support you. He did this publicly. I thought, `Wow, this is his last hours here, that hes on his way out, Babeu told KTAR News.

Holder is set to testify once more on the subject in front of a Democratic-led Senate committee on November 8.

By no means for the first time, if Eric Holder repeats his dubious contention that Fast and Furious only came to his attention when it became public knowledge, he will be knowingly committing perjury.

The head of the Justice Departments criminal division, Lanny A. Breuer, Holders subordinate who first learned of Fast and Furious in April 2010, sent Holder briefings concerning Fast and Furious in July 2010, almost a year before Holder told a Judiciary Committee hearing, Im not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks.

Holder also received the same briefing from the head of the National Drug Intelligence Center, internal DOJ documents obtained by CBS News show.

Internal Justice Department documents show that at least ten months before that hearing, Holder began receiving frequent memos discussing Fast and Furious, states the report.

The CBS News journalist behind the scoop, Sharyl Attkisson, was subjected to verbal abuse by the White House merely for asking questions about the controversy, and was warned not to pursue the story.

In addition, Holder himself gave testimony to Congress in May 2009 in which he spoke of efforts on behalf of the DOJ and the DHS to track weapons going from the U.S. into Mexico under Project Gunrunner, which was the umbrella program for subsequent operations like Fast and Furious.

It now appears as though Breuer is attempting to throw himself under the bus in an attempt to take the heat off his boss and be the fall guy for Fast and Furious.

Over two dozen Republican lawmakers have called for Holder to resign over his stonewalling on Fast and Furious, which is the subject of a congressional probe.

As we highlighted last week, Holder is not alone in his willingness to risk charges of perjury by lying in front of elected representatives.

Despite telling a House Judiciary Committee that she only learned of operation Fast and Furious in December last year when the controversy went public, Homeland Security chief Janet Napolitano actually helped launch the previous incarnation of the program, Project Gunrunner, at a White House press conference in March 2009.

Napolitano, at one point likening the questioning to a cross-examination, said repeatedly she only learned of Fast and Furious after Border Patrol Agent Brian Terry was killed in December, reported Fox News. She emphasized the operation, conceived and run by the Bureau of Alcohol, Tobacco, Firearms and Explosives, was an ATF operation, under the auspices of the Justice Department, not her department.

However, as the video below illustrates, not only was Napolitano aware of the ATF program to put guns into the hands of Mexican drug lords, she actually helped launch the previous incarnation of it, Project Gunrunner, at a White House press conference alongside Deputy Attorney General David Ogden in March 2009.’

 

http://www.youtube.com/watch?feature=player_embedded&v=-F_1Sya42yA

 

 

U.S. Boots on the Ground in Libya, Pentagon Confirms Fox News | Despite assurances otherwise, four U.S. service members arrived on the ground in Tripoli.

 

Bloomberg: Riots On Streets  NY Daily News | Mayor Bloomberg warned Friday there would be riots in the streets if Washington doesnt get serious...

 

Moodys Downgrades Bankster Trifecta Kurt Nimmo | Bank of America, Wells Fargo and Citigroup slammed by ratings agency.

 

Obama Impeachment a Possibility, Says Ron Paul Politico | Paul called the killing a movement toward tyranny.

 

IMF Advisor: Global Financial Meltdown in 2 to 3 Weeks Zero Hedge | A week after the BBC exploded Alessio Rastani to the stage, it has just done it all over again.

 

Gorbachev Calls For American Perestroika Paul Joseph Watson | Former Soviet leader says protest movement highlights need for perestroika in pervasively corrupt, defacto bankrupt America. [ Yes! There is no question that america is the global psychopathic ‘problem child’.

 

2012: Ron Paul is the Only Option Kurt Nimmo | Ron Paul must be on the ballot if we are going stop the wars and return fiscal sanity to the nation.

 

 

Afghanistan to back Pakistan if wars with U.S.: Karzai - ISLAMABAD (Reuters) - Afghanistan would support Pakistan in case of military conflict between Pakistan and the United States, Afghan President Hamid Karzai said in an interview to a private Pakistani ..

 

 

What Have We Gotten For The Trillion Dollars We Have Spent On Wars In Afghanistan, Iraq And Libya? The Economic Collapse | Over a trillion U.S. taxpayer dollars have been spent on wars in Afghanistan, Iraq and Libya.

 

 

GAO Report: Federal Reserve Is Riddled With Corruption And Conflicts Of Interest Daily Bail | New audit of the Federal Reserve details huge conflicts of interest involving directors of regional Fed banks


 

FBI Announces Gangs Have Infiltrated Every Branch Of Military Business Insider | Report says military has seen members from 53 gangs and 100 regions in U.S. enlist in every branch of armed forces.


 

Iraq war will cost more than World War II The Christina Science Monitor | Iraq war, now winding down with US troop exit by December, has cost more than $800 billion so far.

 

 

 

The Military Industrial Complex at 50: Activism Ray McGovern | Ray McGovern on Activism and the Military Industrial Complex.


 

BOOK WARNS OF END... BOOK WARNS OF END
Fri Oct 14 2011 07:00:25 ET

**Exclusive**

"As the faith that gave birth to the West is dying in the West, peoples of European descent from the steppes of Russia to the coast of California have begun to die out, as the Third World treks north to claim the estate. The last decade provided corroborating if not conclusive proof that we are in the Indian Summer of our civilization."

So begins Pat Buchanan in his hardcore work, SUICIDE OF A SUPERPOWER.

"Will America Survive to 2025?"

Buchanan, set for maximum controversy, launches all rockets at introduction "Disintegrating Nation" -- and does not let up for 400-plus pages.

"America is disintegrating. The centrifugal forces pulling us apart are growing inexorably. What unites us is dissolving. And this is true of Western Civilization....Meanwhile, the state is failing in its most fundamental duties. It is no longer able to defend our borders, balance our budgets, or win our wars."

The books reads as if its been written to be left behind in the ruins, only to be found by a future civilization.

SUICIDE ranked #2,668 on AMAZON's hit parade early Friday. It streets on Tuesday.

Now only the DRUDGE REPORT can offer a look inside.



Chapter 1: The Passing of a Superpower

“We have accepted today the existence in perpetuity of a permanent underclass of scores of millions who cannot cope and must be carried by society -- fed, clothed, housed, tutored, medicated at taxpayer’s expense their entire lives. We have a dependent nation the size of Spain in our independent America. We have a new division in our country, those who pay a double or triple fare, and those who ride forever free.”

Chapter 2. The End of Christian America

If [Christopher] Dawson is correct, the drive to de-Christianize America, to purge Christianity from the public square, public schools and public life, will prove culturally and socially suicidal for the nation.

“The last consequence of a dying Christianity is a dying people. Not one post-Christian nation has a birth rate sufficient to keep it alive....The death of European Christianity means the disappearance of the European tribe, a prospect visible in the demographic statistics of every Western nation.”

Chapter 3. The Crisis of Catholicism

“Half a century on, the disaster is manifest. The robust and confident Church of 1958 no longer exists. Catholic colleges and universities remain Catholic in name only. Parochial schools and high schools are closing as rapidly as they opened in the 1950s. The numbers of nuns, priests and seminarians have fallen dramatically. Mass attendance is a third of what it was. From the former Speaker of the House to the Vice President, Catholic politicians openly support abortion on demand.”

“How can Notre Dame credibly teach that all innocent life is sacred, and then honor a president committed to ensuring that a woman’s right to end the life of her innocent child remains sacrosanct?”

Chapter 4. The End of White America

“[W]hite America is an endangered species. By 2020, whites over 65 will out-number those 17 and under. Deaths will exceed births. The white population will begin to shrink and, should present birth rates persist, slowly disappear.”

“Mexico is moving north. Ethnically, linguistically and culturally, the verdict of 1848 is being over-turned. Will this Mexican nation within a nation advance the goals of the Constitution -- to “insure domestic tranquility” and ‘make us a more perfect union’? Or have we imperiled our union?” (Page 134)

Chapter 5. Demographic Winter

“Peoples of European descent are not only in a relative but a real decline. They are aging, dying, disappearing. This is the existential crisis of the West.” (Page 166)

“Not any Iranian weapon of mass destruction but demography is the existential crisis Israel faces....By mid-century...Palestinians west of the Jordan river will out-number Jews 2-1. Add Palestinians in Jordan, it is 3-1.”

“In a startling development of history, Russia’s population has fallen from 148 million in 1991 to 140 million today and is projected to plunge to 116 million by 2050, a loss of 32 million Russians in six decades.”

Chapter 6. Equality Vs. Freedom

“Those who would change society begin by changing the meaning of words. At Howard University, LBJ changed the meaning of equality from the attainable -- an end to segregation and a legislated equality of rights for African-Americans -- to the impossible: a socialist utopia.”

“Where equality is enthroned, freedom is extinguished. The rise of the egalitarian society means the death of the free society.”

“A time for truth. As most kids do not have the athletic ability to play high school sports, or the musical ability to play in the band, or the verbal ability to excel in debate, not every child has the academic ability to do high school work. No two children are created equal, not even identical twins. The family is the incubator of inequality and God its author.”

Chapter 7. The Diversity Cult

“The non-Europeanization of America is heartening news of an almost transcendental quality,” Wattenberg trilled.4 Yet, one wonders: What kind of man looks with transcendental joy to a day when the people among whom he was raised have become a minority in a nation where the majority rules?”

“Historians will look back in stupor at 20th and 21st century Americans who believed the magnificent republic they inherited would be enriched by bringing in scores of millions from the failed states of the Third World.”

Chapter 8: The Triumph Of Tribalism

America’s war of revenge against Japan was a race war. Newsreels, movies, magazines, comic books, headlines treated “Japs” as a repulsive race whose extermination would benefit mankind....Only well after the war was over was it re-branded a war to bring the blessings of democracy to...Japan.

We may deny the existence of ethnonationalism, detest it, condemn it. But this creator and destroyer of empires and nations is a force infinitely more powerful than globalism, for it engages the heart. Men will die for it. Religion, race, culture and tribe are the four horsemen of the coming apocalypse.

Chapter 9. ‘The White Party’

“Through its support of mass immigration, its paralysis in power to prevent 12-20 million illegal aliens from entering and staying, its failure to address the “anchor-baby” issue, the Republican Party has birthed a new electorate that will send it the way of the Whigs.”

Chapter 10: The Long Retreat

“We borrow from Europe to defend Europe. We borrow from the Gulf states to defend the Gulf states. We borrow from Japan to defend Japan. Is it not a symptom of senility to be borrowing from the world so we can defend the world?”

“Are vital U.S. interests more imperiled by what happens in Iraq where were have 50,000 troops, or Afghanistan where we have 100,000, or South Korea where we have 28,000 -- or by what is happening on our border with Mexico?...What does it profit America if we save Anbar and lose Arizona?”

Chapter 11: The Last Chance

“We are trying to create a nation that has never before existed, of all the races, tribes, cultures and creeds of Earth, where all are equal. In this utopian drive for the perfect society of our dreams we are killing the real country we inherited..’

SHRINK: Obama suffers from 'father hunger'... The abandonment by his father when he was an infant and by his stepfather at age 10 has left President Obama with a "father hunger" that influences everything from why he distances himself from pushy supporters, to his strong desire to compromise and bring people together, to his aggressive campaign to kill Osama bin Laden, says a psychoanalytic book out next week. In Obama on the Couch, George Washington University professor Justin Frank also reveals that Obama has spent much of his life seeking out father figures, but most, like Rev. Jeremiah Wright and Vice President Biden, have disappointed him. "Obama searched for a father, for someone to relate to who could help hima strong man who knew what to do," Frank writes.

[Check out photos of Obama behind the scenes.]

This is Frank's second psychoanalytical book about a president. While a sympathetic look at Obama, it follows Bush on the Couch, a sharply critical analysis that suggested then President George W. Bush was disturbed. In that book, he predicted that someone like Obama"completely different," "someone not ... white"would succeed Bush. What the nation ended up with, however, is "an almost tragic figure," Frank writes.

The general theme is that Obama has been affected both by being biracial and by the abandonment of his two dads during his childhood. The result is that he is overly protective of his own nuclear family, desires greatly to see national unity, and yet harbors anger that he took out on bin Laden. [Vote now: Will Obama be a one-term president?]

Take for example Obama's earlier willingness to compromise with Republicans, upsetting his liberal base. Here Frank cites the negative influence of his parents, especially his mom, who often pressed him to do better in school. "He hates being pushed by supporters who want him to make good on his promises of universal healthcare and care for the poor, something that represents his mother and how she pushed him to study harder," Frank writes. And when he ignores his base, he is emulating his father, expressing annoyance but not worried they will desert him.

As for bin Laden, Frank writes that Obama's inner anger emerged: "He was able to pursue his action against bin Laden in part because bin Laden offered a displacement figure for Obama's rage toward his own parents." [ I believe this is factually incorrect and was mere political desperation by wobama et als; see infra, Bin Laden Heroes Probably Murderered to Keep Them Quiet  ... Gordon Duff Veterans TodayFLASHBACK: Eyewitness to OBL Raid Saw Helicopter Explode (TRANSCRIPT) [ As indicated on this albertpeia.com website, I didnt buy the administrations desperate and politically opportunist Osama event and still dont buy it; and further, I believe this! ]Veterans Today | TRANSCRIPT of critical interview with Pakistani eyewitness to Bin Laden raid. Is this the key to SEAL Team 6s demise? [See a slide show of 10 issues driving Obama's re-election campaign.]

Frank also calls Obama scared of the type of radical change he advocated in 2008. "He wants to be the father who makes change safe, the person he has waited for his entire life."

Browse: photos of 2012 GOP hopefuls on the campaign trail…’

 

BUCHANAN: Is the New World Order unraveling?  October 13, 2011 ‘With Greece on the precipice of default and Portugal and Italy approaching the ledge, the European monetary union appears in peril.

Should it collapse, the European Union itself could be in danger, for economic nationalism is rising in Europe. Which raises a larger question.

Is the New World Order, the great 20th century project of Western transnational elites, unraveling?

The NWO dates back as far as Woodrow Wilson's League of Nations, which a Republican Senate refused to enter. FDR, seeking to succeed where his mentor had failed, oversaw the creation of a United Nations, an International Monetary Fund and a World Bank.

In 1951 came the European Coal and Steel Community, love child of Jean Monnet, which evolved into the European Economic Community, the European Community and the European Union. A European Central Bank and a new currency, the euro, followed.

The hidden ultimate goal of economic union was political union a United States of Europe as model and core of the 21st-century world government.

Pat Buchanan's latest book -- the title says it all: "Suicide of a Superpower: Will America Survive to 2025?"

With the disintegration of the Soviet Union, the EU expanded to the east. And the New World Order, formally proclaimed by George H.W. Bush in 1991, was out in the open and seemingly the wave of the future.

Progress was swift.

A North American Free Trade Agreement, bringing the United States, Mexico and Canada into a common market that George W. Bush predicted would encompass the hemisphere from Patagonia to Prudhoe Bay, was signed in 1993.

A World Trade Organization was born in 1994. U.S. sovereignty was surrendered to a global body where America had the same single vote as Azerbaijan.

The Kyoto Protocol, brought home by Vice President Al Gore, set up a regime to control the worldwide emission of greenhouse gases.

An International Criminal Court, a permanent Nuremberg Tribunal to prosecute war crimes and crimes against humanity, was created.

A doctrine of limited sovereignty had been asserted. Elites claimed a higher law than national sovereignty; "a responsibility to protect" enabled them to intervene in countries where human rights violations were egregious.

Serbia, bombed by Bill Clinton for 78 days for fighting to hold its ancient province of Kosovo, was the first victim.

Suddenly, however, the progression has stalled. Indeed, the New World Order seems to be unraveling.

Emerging powers like China, India and Brazil are demanding they be exempt from restrictions developed countries seek to impose. The follow-up summits to Kyoto Copenhagen in 2009, Cancun in 2010 ended in failure. The Doha round of world trade negotiations ended in failure.

China refuses to let her currency float lest she lose the trade surpluses that have enabled her to amass $3 trillion in cash reserves.

Protectionism is rising. Americans chafe at a new world economic order that has led to deindustrialization of their country. Congress is talking of defunding the U.N. as anti-Western and anti-Israel.

Why is the New World Order suddenly going in reverse?

A primary reason is the resurgence of nationalism. Nations are putting national interests ahead of any perceived global interests.

A second reason is the decline of a West whose project this was. We no longer dictate to the world, and the world no longer marches to our tune. The deficits and indebtedness of Western nations preclude more of the big wealth transfers in foreign aid that once bought us influence.

A third reason is demography. Not one European nation has a birth rate sufficient to replace its population. Europe's nations are aging, shrinking, dying. A depopulating Germany cannot carry forever the deficit-debtor nations of Club Med. The oldest nation, Japan, is on schedule to lose 25 million people by 2050, as is neighbor Russia.

Militarily, America remains the most powerful nation. But Iraq and Afghanistan have bled the country and left us without the certain attainment of our goals. Old allies like Turkey go their separate ways.

Ethno-nationalism also explains a disintegrating world order. Aspiring nations like Scotland, Catalonia, Padania, Flanders, Ingushetia, Dagestan, East Turkestan, Kurdistan and Baluchistan seek a place in the sun, free of the cloying embrace of the mother country.

The desire of peoples for nations all their own, where their own language, faith and culture predominate and their own kind rule to the exclusion of all others, is everywhere winning out over multiculturalism and transnationalism.

Through history there have been attempts to unite the world.

The Roman Empire. Catholicism. Islam. The West that ruled much of mankind from Columbus to the mid-20th century. Communism, which conquered half of Europe and Asia but arose and fell in a single century.

With the death of communism and the decline of the West in relative population and power Islam has become the largest religion, China the world's emerging superpower and Asia the continent of the future.

Could this still be the Second American Century?  [ Absolutely, unequivocally NOT! ]

Not the way we are going.’


Read more: Is the New World Order unraveling? http://www.wnd.com/index.php?fa=PAGE.view&pageId=355405#ixzz1aiOydNLu




Will U.S. Exploit Dubious Terror Case and Attack Iran? Kurt Nimmo | Another case of a clueless patsy entrapped by the U.S. government. TIMING? U.S. busts two Iranians today over terror plot Obama was briefed about in June... { U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! Thats as likely as wmds in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, theyd literally say anything; even to the point of paying anyone to say anything yellow cake anyone? (Bush and Iraq: Follow the Yellow Cake Road Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWL8TndC ...the White House defense, having now admitted a falsehood in President Bush's claim, in his State of the Union address, that Iraq had tried to buy uranium in Africa. Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWKsd9dp ] }
Drudgereport: WAR DRUMS: IRAN CALLS 'TERROR PLOT' LIE
Saudis say Iran must 'pay the price'...
Hillary: 'Dangerous escalation'...

 

Fed Insider Cain Caught In Brazen Debate Lie Paul Joseph Watson | Establishment favorite claims he never opposed audit of Fed.

 

Putin: US feeding off global dollar monopoly Russia Today| Pushing through energy deals and boosting cooperation with the aim of balancing out the economic and political dominance of the West. [ Of course Putin is quite right inasmuch as pervasively corrupt, defacto bankrupt america has an insurmountable fiscal gap of $211 trillion and like Greece et als, its not a matter of if, but when america defaults. ]

 

U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! Thats as likely as wmds in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, theyd literally say anything; even to the point of paying anyone to say anything yellow cake anyone? ]



Wall Street Puppet Obama Sympathizes With Anti-Wall Street Protests Steve Watson & Paul Joseph Watson | Claims Government has not gone after banksters because [ More wobama b***s*** for the multi-trillion dollar fraud, still extant, etc.. Of course, as a total fraud himself, no small wonder that as per wobamas fraudulent playbook the blatant wall street frauds are not, by him, considered fraud. Remember those shovel ready jobs promised last (but eternal) campaign by wobama? Well, just those required to shovel his infinite b***s***. Then those fightin words from the great prevaricator (to GOP) unite behind his jobs bill or get ready to be run "out of town" shows his disconnect with reality and proclivity for rhetoric / b***s*** since its he who should and will be run out town on a rail. Hes so pathetic! What a total loser! Whos foolish enough to even listen to this total b***s*** artist wobama? ]

 

OWS Needs to Target Real Enemies Or Face Irrelevancy` Kurt Nimmo | Real enemies are the Bilderbergers, CFR, the Trilateral Commission, and the Federal Reserve not lowly Wall Street stock brokers. [ This is quite incorrect! Im not saying dont target the Bilderbergers, CFR, the Trilateral Commission, and the Federal Reserve, etc.; but, for the most part, they are frauds fait accomplis, as ie., in accordance with the adgage behind every fortune, a crime (subject to very few exceptions, ie., the late, great Steve Jobs (bill gates is not among those exceptions). They (Alex Jones, et als) ignore, owing to their lack of real world experience, organized crime of its various flavors, ethnicities, even cabals / niches within government. The fact is and remains, as with politics (ONeil), all crime is ultimately local. You must always prosecute the proximate crime causing the proximate harm without fail (nominal crimes as, ie., marijuana possession, should take a back seat to distribution, ie., cia, cartels, bribery, etc., given limited resources, budgetary constraints. After all, given the u.s. governments involvement in the distribution aspects of the illegal drug business, ie., cocaine, etc., cia, etc., possession/use falls into the nebulous realm of civic / patriotic duty?). Only by so doing will you ultimately get those higher up on the criminal food chain who are protected by layers of corrupt bureaucracy as is pervasive in american government / society, federal, state, and local. ]

 

Rick Perry's Pledge To Stand With Israel "as a Christian"...  [ Yes, indeed! This is as damaging to Christianity as it is helpful to Islamic fundamentalists, extremists, realists; in large part owing to the fact that such a position cant be justified rationally, biblically, spiritually, morally, or realistically! ] Rick Perry's pledge to stand with Israel "as a Christian" is a gift to Islamic...

 

Analysis: what was so objectionable about Ahmadinejads speech? [ Nothing! As regards the twin towers reference, his position is consistent with in excess of 95% of those whove looked closely at same, including from an engineering perspective, as opposed to those who blindly accept the government pablum of the neo-con cherished pearl harbor event (that was wildly cheered by those israeli agents in Weehawken, n.j.) ]Activist Post | It is clear that Ahmadinejads address to the 66th Session of the United States General Assembly was not well met.




California City Closes Down Bible Study in Private Home Kurt Nimmo | In Orange County, California, it is illegal to hold a religious meeting in your home. In Orange County, California, it is illegal to hold a religious meeting in your home.[ How totally pathetic
California truly the land of fruits and nuts! Meanwhile, the inmates that run the asylum called California are releasing felons from prisons in droves because they cant count, do simple math. Maybe if these peaceful people in the confines of their homes (its a jungle out there on the lawless California streets) were to commit serious crimes they would get more empathy, understanding from the inmates / criminals running the asylum they call California! Outrageous! ] This is what Chuck and Stephanie Fromm, of San Juan Capistrano, discovered when they were fined $300 earlier this month for holding a Bible study class on their property.Officialdom in the county said the couple were singled out because it is considered illegal to hold a regular gathering of more than three people on private property. Officials stated that the Fromms require a license to hold meetings in their home.San Juan Capistrano authorities claim home Bible study is not allowed because it is a church, and churches require a Conditional Use Permit (CUP) in residential areas.The Fromms face additional fines of $500 per meeting for any further religious gatherings in their home, according to the Pacific Justice Institute.The citys action is a brazen violation of the First Amendment, which guarantees free worship without government intervention.PJI and the Fromms plan to appeal a decision made by the city to uphold the fine and restriction to the California Superior Court in Orange County, according to KCOY 12 News, a Fox affiliate.Ironically, the city of San Juan Capistrano was founded as a mission in the late 1700s by Catholic priest Junipero Serra. A local chapel established by Serra is the oldest standing building in California.

 

 

WIRELESS: Obama invested in Falcone-funded Co.... In ’05 Investing, Obama Took Same Path as Donors By MIKE McINTIRE and CHRISTOPHER DREW ‘Less than two months after ascending to the United States Senate, Barack Obama bought more than $50,000 worth of stock in two speculative companies whose major investors included some of his biggest political donors.

One of the companies was a biotech concern that was starting to develop a drug to treat avian flu. In March 2005, two weeks after buying about $5,000 of its shares, Mr. Obama took the lead in a legislative push for more federal spending to battle the disease.

The most recent financial disclosure form for Mr. Obama, an Illinois Democrat, also shows that he bought more than $50,000 in stock in a satellite communications business whose principal backers include four friends and donors who had raised more than $150,000 for his political committees.

A spokesman for Mr. Obama, who is seeking his partys presidential nomination in 2008, said yesterday that the senator did not know that he had invested in either company until fall 2005, when he learned of it and decided to sell the stocks. He sold them at a net loss of $13,000.

The spokesman, Bill Burton, said Mr. Obamas broker bought the stocks without consulting the senator, under the terms of a blind trust that was being set up for the senator at that time but was not finalized until several months after the investments were made.

He went about this process to avoid an actual or apparent conflict of interest, and he had no knowledge of the stocks he owned, Mr. Burton said. And when he realized that he didnt have the level of blindness that he expected, he moved to terminate the trust.

Mr. Obama has made ethics a signature issue, and his quest for the presidency has benefited from the perception that he is unlike politicians who blend public and private interests. There is no evidence that any of his actions ended up benefiting either company during the roughly eight months that he owned the stocks.

Even so, the stock purchases raise questions about how he could unwittingly come to invest in two relatively obscure companies, whose backers happen to include generous contributors to his political committees. Among those donors was Jared Abbruzzese, a New York businessman now at the center of an F.B.I. inquiry into public corruption in Albany, who had also contributed to Swift Boat Veterans for Truth, a group that sought to undermine John Kerrys Democratic presidential campaign in 2004.

Mr. Obama, who declined to be interviewed about the stock deals, has already had to contend with a controversy that arose out of his reliance on a major campaign contributor in Chicago to help him in a personal financial transaction. In that earlier case, he acknowledged last year that it had been a mistake to involve the contributor, a developer who has since been indicted in an unrelated political scandal, in deals related to the Obamas purchase of a home.

Senate ethics rules do not prohibit lawmakers from owning stocks even in companies that do business with the federal government or could benefit from legislation they advance and indeed other members of Congress have investments in government contractors. The rules say only that lawmakers should not take legislative actions whose primary purpose is to benefit themselves.

Mr. Obamas sale of his shares in the two companies ended what appears to have been a brief foray into highly speculative investing that stood out amid an otherwise conservative portfolio of mutual funds and cash accounts, a review of his Senate disclosure statements shows. He earned $2,000 on the biotech company, AVI BioPharma, and lost $15,000 on the satellite communications concern, Skyterra, according to Mr. Burton of the Obama campaign.

Mr. Burton said the trust was different from qualified blind trusts that other senators commonly used, because it was intended to allow him greater flexibility to address any accusations of conflicts that might arise from its assets. He said Mr. Obama had decided to sell the stocks after receiving a communication that made him concerned about how the trust was set up.

The investments came at a time when Mr. Obama was enjoying sudden financial success, following his victory at the polls in November 2004. He had signed a $1.9 million book deal, and his ethics disclosure reports show that he received $1.2 million of book money in 2005.

His wife, Michelle, a hospital vice president in Chicago, received a promotion that March, nearly tripling her salary to $317,000, and they bought a $1.6 million house in June. The house sat on a large property that was subdivided to make it more affordable, and one of Mr. Obamas political donors bought the adjacent lot.

The disclosure forms show that the Obamas also placed several hundred thousand dollars in a new private-client account at JPMorgan Chase, a bond fund and a checking account at a Chicago bank.

But he put $50,000 to $100,000 into an account at UBS, which his aides say was recommended to him by a wealthy friend, George W. Haywood, who was also a major investor in both Skyterra and AVI BioPharma, public securities filings show.

Mr. Haywood and his wife, Cheryl, have contributed close to $50,000 to Mr. Obamas campaigns and to his political action committee, the Hopefund. Mr. Haywood declined to comment.

Within two weeks of his purchase of the biotech stock that Feb. 22, Mr. Obama initiated what he has called one of my top priorities since arriving in the Senate, a push to increase federal financing to fight avian flu.

Several dozen people had already died from the disease in Southeast Asia, and experts were warning that a worldwide pandemic could kill tens of millions of people. Mr. Obama was one of the first political leaders to call for more money to head off the danger, which he described as an urgent public health threat.

His first step came on March 4, 2005, when the Senate Foreign Relations Committee approved his request for $25 million to help contain the disease in Asia; the full Senate later approved that measure. And in April 2005, he introduced a bill calling for more research on avian flu drugs and urging the government to increase its stockpiles of antiviral medicines.

Mr. Obama repeated this call in a letter that Aug. 9 to Michael O. Levitt, the health and human services secretary. And in September 2005, Mr. Obama and Senator Tom Harkin, Democrat of Iowa, succeeded in amending another bill to provide $3.8 billion for battling the flu.

Meanwhile, the drug company in which he invested, AVI BioPharma, had been working to develop its own medicine to treat avian flu victims. In a conference call with Wall Street analysts on March 8, 2005, the companys chairman, Denis R. Burger, said the firm was aggressively going forward with its avian flu research and hoped to work with federal agencies on it.

The company, which is also developing medicines in a number of other areas, provided several updates on its avian flu research in 2005, including one on Oct. 21 saying the company was likely to develop a treatment for avian flu in a relatively short time.

Mr. Obama sold what appears to have been about 2,000 shares of the companys stock a week later, when it traded at about $3.50 a share, or about $1 a share more than when he bought it. Company officials said they never talked to the senator about his work on avian flu. And while the company has received millions of dollars in federal money to develop drugs for treating ebola and other serious diseases, it still has not received any federal money for its avian flu research.

The companys stock briefly surged to nearly $9 a share in January 2006 when it announced promising research findings on the flu drug. But the company still has not applied for federal approvals to test and market the drug.

Unlike his investment in AVI, which yielded a small profit, Mr. Obamas stake in Skyterra Communications went in the opposite direction, despite a promising start.

He bought his Skyterra shares the same day the Federal Communications Commission ruled in favor of the companys effort to create a nationwide wireless network by combining satellites and land-based communications systems. Immediately after that morning ruling, Tejas Securities, a regional brokerage in Texas that handled investment banking for Skyterra, issued a research report speculating that Skyterra stock could triple in value.

Tejas and people associated with it were major donors to Mr. Obamas political committees, having raised more than $150,000 since 2004. The companys chairman, John J. Gorman, has held fund-raisers for the senator in Austin, Tex., and arranged for him to use a private plane for several political events in 2005. Mr. Gorman declined to comment.

In May 2005, Mr. Abbruzzese, who was vice chairman of Tejas and a principal investor in Skyterra, contributed $10,000 along with his wife to Mr. Obamas political action committee a departure from his almost exclusive support of Republicans. Eight months earlier, for instance, he had contributed $5,000 to the Swift Boat group, and he has given $100,000 to the Republican National Committee since 2004.

Last year, Mr. Abbruzzese, a major investor in several high-tech companies in New York and elsewhere, emerged as a central figure in the federal investigation of the New York State Senate majority leader, Joseph L. Bruno. The inquiry is examining Mr. Brunos personal business dealings, including whether he accepted money from Mr. Abbruzzese in return for Senate approval of grants for one of Mr. Abbruzzeses companies. Both men have denied any wrongdoing. Mr. Abbruzzese did not return phone calls seeking comment.

Skyterras share price was lifted into the $40 range for a time on the strength of the F.C.C. ruling, but eventually drifted down into the low 30s, and was at $31 when Mr. Obama sold his shares for a $15,000 loss on Nov. 1, 2005. A few months later, it plunged into the $20 range, and today trades below $10 a share. A spokesman for Skyterra said the companys top officials had not been aware of Mr. Obamas investment.

 

 

Joe McGinniss Sarah Palin Book, 'The Rogue,' Makes Controversial Claims About Former Alaska Governor  ‘Joe McGinniss's new book, The Rogue: Searching for the Real Sarah Palin, hits bookstores next week, but its controversial claims about the former Alaska governor are already making waves.

In the book, McGinniss writes that Palin had a one-night stand in 1987 with future NBA basketball player Glen Rice nine months before she married her husband Todd. He quotes a friend who said Palin "had a fetish for black guys for a while."

"She was a gorgeous woman. Super nice. I was blown away by her," Rice tells McGinniss in the book, NBC reports. "Afterward, she was a big crush that I had."

McGinniss's book also alleges that Palin had an extramarital affair with her husband's business partner, Brad Hanson, in the mid-1990s, and snorted cocaine off a 55-gallon oil drum while snowboarding.

"An utter fraud. An absolute and utter fraud," McGinniss calls Palin in an interview about the book with NBC.

"At best, she's a hypocrite," McGinniss tells NBC's Savannah Guthrie. "At worst, she's a vindictive hypocrite."

McGinniss famously moved into a house next door to Palin's Wasilla, Alaska home to write his book -- prompting the Palins to accuse him of stalking them. They built a high fence along their property to protect their privacy.

In response to McGinniss's book, Todd Palin gave a statement to NBC saying that McGinniss "spent the last year interviewing marginal figures with an axe to grind in order to churn out a hit piece to satisfy his own creepy obsession with my wife."

"I'd ask the fathers and husbands of America to consider our privacy when one summer day I found this guy on the deck of the rental property, just 18 feet away next door to us, staring like a creep at my wife while she mowed the lawn in her shorts," Palin said.

McGinniss says that anything he learned about Palin by living next door did not make it into the book, but he does become a character in the story himself.

The New York Times writes in its review:

Soon Mr. McGinniss is settling in to enjoy the fuss his mere presence has created. "Normally, for a news story to continue beyond the first 24-hour news cycle, something newsworthy must occur," he writes loftily, but "The Rogue" is filled with proof to the contrary. What was his hate mail like? He quotes it. What did Glenn Beck call him? That’s here too. Who took umbrage at this venom and chose to help him? One man offered him a hideout, despite Mr. McGinniss's slight skepticism about his motives. "But you don’t know me," Mr. McGinniss protested.

McGinniss's book is scheduled to hit bookstores on Tuesday, Sept. 20.

The Rogue: Searching For The Real Sarah Palin' Cover Revealed Call it Palin Noir. Joe McGinniss' upcoming biography of Sarah Palin has a cover design more fitting for a detective novel. It has a bold...

Joe McGinniss, Palin Neighbor & Author, Leaving Wasilla To Write Book ANCHORAGE, Alaska Sarah Palin can take down the fence. Palin's neighbor of three months on Wasilla's Lake Lucille, author Joe McGinniss, is packing his...

Bristol Palin Interview Accidentally Reveals Mother's 15 Abortions  www.theonion.comWASILLA, AKSarah Palin's political team was forced to do emergency damage control Monday after the former Alaska governor's daughter Bristol accidentally divulged on live television that her mother has undergone at least 15 abortions over the past 30 years. "She's always telling me how special I am, especially considering the five or six babies she aborted before I was born," Palin, 20, said during a CNN interview in which she was asked if she thought her mother would make a good president. "Then of course there were the twins she aborted shortly after having me, another four abortions after Willow somehow survived hersbut anyway, she's a wonderful mom. She just gets pregnant a lot and doesn't always want to have the baby." Palin also commended her mother's strength in carrying three babies with Down syndrome to term, and then even choosing not to give Trig up for adoption like the others.

 

Ralph Nader: U.S. is a two party dictatorship Raw Story | “It’s a two party dictatorship unless you’re worth billions of dollars.”

 

Astronauts' tracks, trash seen in new moon photos [ The easiest thing in the world to contrive (don’t forget they can with some precision today send robotics to ie., mars, etc.) and doctor so don’t be taken in by their fraudulent b***s***! They’re probably desperately looking for some money / budgetary consideration for their continued boondoggles. No man has ever set foot on the moon to date. As NASA transitions, U.S. space politics in a state of flux  (Washington Post) [ U.S. space politics? I didn’t know there was such a thing. But I, and I’m sure all know that ‘u.s. politics are spaced’. Flux? One could only hope. I’d say, ‘fleeced’; as in we’ve all been fleeced.  Sterner: 5 myths about NASA   (Washington Post) [ If you can’t get past the first myth; viz., that they actually set foot on the moon, the other 5 so-called myths become irrelevant. Indeed, post-Eisenhower, and certainly post-Kennedy-assassination / coup d’etat, NASA was all military / military industrial complex (moreover, someone knowledgeable about such matters said essentially that in explaining to my surprise the transition to the shuttle program it was said there was greater military application in same). In any event, Russia’s been doing quite a bit of ‘heavy lifting’ vis-à-vis the space station, but not inordinately so. All I can say with certainty is that the universe beyond this solar system is forever protected / insulated. The fact is, they never set foot on the moon; and, in light of the pervasive corruption in and defacto bankruptcy of the nation, their perpetual wars toward making a hell on earth militate against anything but trying to do even just a little bit better (for a start), terrestrially.   NASA wants mission to bring Martian rocks to Earth (AP) Why? They already have that and more:   Launch of secret US space ship masks even more secret launch of new weapon    The Militarization of Outer Space: The Pentagon’s “Space Warriors”  Global Research | It’s not as if things aren’t bad enough right here on planet earth. Now the Defense Department wants to up the stakes with new, destabilizing weapons systems that will transform low- and high-earth orbit into another “battlespace.”      buzz aldrin wants to colonize Mars … Riiiiight buzzed! Better check with DePalma to see if he already has the footage in the can since you won’t be able to use the moon footage for the new boondoggle video ... OBAMA SPEECH OUTLINES PLANS FOR RETURNING DEFACTO BANKRUPT U.S. TO SPACE – OOOOOH! SOUNDS LIKE A PLAN … FOR INNER SPACE (IMAGINATION).


NASA's New Asteroid Mission Could Save the Planet  Space.com - Tariq Malik -
CAPE CANAVERAL, Fla. - President Barack Obama set a lofty next goal this week for Americans in space: Visiting an asteroid by 2025. Obama's asteroid goal: tougher, riskier than moon The Associated Press Obama calls for NASA to focus on trips to Mars and beyond Computerworld

New Boondoggle promised to save NASA boondoggle defacto bankrupt budget piece of pie.
And dont forget, Bruce Willis and Ben Affleck, et als, have already done this so its not as if theyre starting from ground zero, so to speak; and Brian DePalma already has Mission to Mars in the can, but beware say the producers of Species II since Eve, the cloned daughter of Sill, might want to mate with astronaut Paddy Ross who has returned from Mars as a space alien host body.

First fake moonwalker blasts Obama's space plan  msnbc.com - Bill Ingalls - The first man to pretend to walk on the moon blasted President Barack Obama's decision to cancel NASA's back-to-the-moon program on Tuesday, saying that not going with the new movie is
devastating to america's boondoggle spaced out effort. Fake dutch 'moon rock' revealed a treasured piece at the dutch national museum - a supposed moon rock from the first manned lunar landing - is nothing more than petrified wood, ...bbc news bbc news | europe | fake dutch 'moon rock' revealed prized moon rock a fake - a piece of moon rock given to an overseas politician by the united states is actually a lump of petrified wood, museum authorities revealed yesterday. ... 'Moon rock' in dutch museum is just petrified wood aug 27, 2009 ... Fake moon rock at dutch national museum. Rijksmuseum / ap. This rock, supposedly brought back from the moon by american astronauts, ...    http://www.albertpeia.com/moonfraud.htm  

In reality it is just a piece of petrified wood ... Another piece of evidence that shows again that apollo program is indeed a fake and a typical american fraud!   
http://www.albertpeia.com/UFOetryWeNeverWentToTheMoonPNTV.wmv    ]

 

AMERICA FALLS TO 5TH PLACE...The U.S. has tumbled further down a global ranking of the world's most competitive economies, landing at fifth place because of its huge deficits and declining public faith in government, a global economic group said Wednesday.

The announcement by the World Economic Forum was the latest bad news for the Obama administration, which has been struggling to boost the sinking U.S. economy and lower an unemployment rate of more than 9 percent. Switzerland held onto the top spot for the third consecutive year in the annual ranking by the Geneva-based forum, which is best known for its exclusive meeting of luminaries in Davos, Switzerland, each January. Singapore moved up to second place, bumping Sweden down to third. Finland moved up to fourth place, from seventh last year. The U.S. was in fourth place last year, after falling from No. 1 in 2008.

The rankings, which the forum has issued for more than three decades, are based on economic data and a survey of 15,000 business executives.

The forum praised the U.S. for its productivity, highly sophisticated and innovative companies, excellent universities and flexible labor market. But it also cited "a number of escalating weaknesses" such as rising government debt and declining public faith in political leaders and corporate ethics.

The results of a survey of 142 nations comes a day before Obama is preparing to tackle jobs issues in a speech to the U.S. Congress, and just as U.S. polls show a clear majority of those surveyed say they disapprove of the way Obama is handling the economy.

 

Switzerland held onto its top ranking, the forum said, because of "continuing strong performance across the board" with innovation, technological readiness, even-handed regulation and having one of the world's most stable economic environments.

Germany, Europe's economic powerhouse, was sixth, followed by the Netherlands and Denmark. Japan came in ninth, and Britain was 10th. France was 18th, and Greece, saddled with debt, fell to 90th.

The report looked at broader trends: While the U.S. slipped, emerging markets gained traction. China took 26th place, highest among major emerging economies; Brazil was 53rd; India was 56th; and Russia was 66th.

"Fiscal imbalances that have been building up around the world are really a danger to future competitiveness, in terms of the ability of countries to invest in those things that will be very important for competitiveness going forward, things like education, infrastructure and so on," said Jennifer Blanke, an economist with the forum.

 


Gunman wounds several at Nevada restaurant Washington Post - A man with a rifle shot a group of uniformed members of the National Guard. Officers review evidence, including bullet holes, at the scene of a shooting at an IHOP restaurant in Carson City, Nev. 4 dead, including shooter, in Nev. IHOP attack CBS News  Sheriff: Gunman used AK-47 in IHOP shootingThe Associated Press   Shooting at IHOP Restaurant in Nevada Kills Two National Guard Members, At ... Fox News  [ I heard this breaking story as it came across the radio
the soundbite was from someone being interviewed (I didnt catch the name or position), who said such as this incident happens in third world countries, not here. Au contraire! Take a good look from Philly, to Chicago, to Detroit, to Newark, to New York, to Miami, to Los Angeles, etc., to crime rates worldwide (u.s. is no. 1 by far), to pervasive corruption, to pervasive fraud (govt sanctioned), to meaningful lawlessness and arbitrary enforcement, to gunboat diplomacy and perma wars, to over-printed ever-more worthless currency, to insurmountable debt (promises to pay, unfounded liabilities) etc., defacto bankrupt america is a third-world country, and the biggest by far with much further to fall ] Legendary Investor Jeremy Grantham: America is a Banana Republic Washingtons Blog | Just different bananas perhaps? [ Of course this is absolutely true! And not just from the meaningfully lawless perspective I had made such a statement on the record in a LA Superior Court Appellate Dept. proceeding in which said court literally ignored the law (the same is true of the costly, plushly accoutered lifetime appointee federal courts) which courts should indeed be abolished in these difficult economic / budgetary times. Additionally, from pervasive corruption, to debased over-printed currency, to gunboat diplomacy, to total incompetence, etc., america is indeed a banana republic at most.] 

 

 

MSNBC Yet Again Implies Criticism of Obama Is Racist Paul Joseph Watson | General Electric-owned (49%) network is earning its federal bailout money. [Yet, it’s holder / wobama who’re the racists … Robinson: King’s dream remains unrealized  (Washington Post) [ Yeah! That ‘content of their character’ thing’s a b***ch to live up to … just don’t measure up! What’s a white person to do, especially when black atty. General Holder with fellow black Obama’s tacit approval is racist himself (themselves)  UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '. Drudgereport: 'Mob' beatings at WI state fair...
'Hundreds of young black people beating white people'... [ Typical…  ]
Fairgoers 'pulled out of cars'...
'They were just going after white people'...
Heightened security...

[ .. (the following incident is my personal experience: black perps, white victims).. while walking through Military Park (a sliver of a park - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DAs position with both felonies ( he went to prison pled out ). The other case I wrote about here ( This was included on my website in the Psychology forum discussion of bystander effect / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparently had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp (a police officer here in California was the object of intense criticism for having used a flashlight to subdue a criminal after a long chase so I included that here) . The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal went to jail (where they belong). The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so. I was also mugged by 4 blacks and 2 hispanics in an incident here in Los Angeles, CA. But, to be fair and balanced, the RICO litigation involves those uncivilized who consider themselves whites http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf  (predominantly but not exclusively jews / romans-italians / mobsters / government slugs). ]

 

 

Dick Cheneys self-serving memoir  REVIEW | In My Time serves mainly to reaffirm the former vice presidents lack of regrets. (Washington Post) [ Yes. Lack of regrets. That is exactly what youd expect from an unconflicted psychopath as war criminal cheney most certainly is. The unassuming cheney, barely noticeable in his prior manifestations in one form / position or another, in trying so desperately to imprint himself on the administration of fellow war criminal and moron bush, has been nothing short of disastrous for the world and this country particularly. Clearly, the meds cheneys had to consistently take have shaken up / messed up his body / brain chemistry to the point where cheneys nothing less than psychotic in the most negative sense. Indeed, his change  from somewhat balanced to psychopathic was not lost on former supporter / endorser Gerald Ford who commented publicly, albeit euphemistically, on how mean cheney had become. Such is the way / demeanor of a psychopath upon that defining break from sanity. For those soldiers who were called upon to carry out his sociopathic obsessions, his message to them in explaining his 5 deferments when his nation called on him was that he had better, more important things to do (school deferments). Psychopath that cheney is, and nothing more, who has cost this world and nation immeasurably, cheney is indeed the proverbial dead man walking.  Dick Cheney: One Year As a Walking Zombie Paul Joseph Watson & Alex Jones | Former VP marks anniversary as member of the living dead.  10 Indications The United States Is A Dictatorship    http://www.activistpost.com/2011/05/10-indications-united-states-is.html   8. Torture: Torture has long been a tactic used by America. In fact it runs the leading school on its methods.  The School of the Americas has been responsible for training Latin American dictators and their thugs on how to intimidate the local population and rule with an iron fist.  However, the torture debate has hit mainstream media in a serious discussion about its effectiveness, especially following the assassination of Osama bin Laden.  Aside from the despicable morals involved, torture doesnt work for intelligence gathering, according to experts.  Furthermore, the legalization of torture was what really brought the dreaded Russian secret police out into the open.  When such a declaration is made, it is literally a recruiting strategy to find the criminals and sadists who would love to be part of such a system.  Torture is not normal work for normal people; it is the work of psychopaths such as Dick Cheney who loves the tactic of waterboarding so much that he has stated it should be brought back and used more widely.  No nation that uses torture to obtain confessions can be called legitimate. It is only used as a tool of intimidation and oppression by totalitarian regimes…’

 

 

Is Apple Evil? Paul Joseph Watson & Alex Jones | Ethical grandstanding fails to hide transhumanist, oppressive background of technology giant. [ If I hadnt experienced censorship at the hands of alex jones et als (inveterate hypocrites who are constantly ranting about censorship and being cut off from mainstream news) Id be reluctant to write as follows since I do feel what they do to be important in providing access to otherwise inaccessible news / data and I am as such compelled to include links to their news on my site. That said, clearly Jones et als must have too much time on their hands in mentally masturbating over what they deem to be a slight by Apple on the human race. How pathetic they truly are! Forever defending indefensible human, and particularly american, traits from deserved, just criticism, slights; particularly concerning the inherent criminal nature of same. I must say, reiterate, they really are pathetic; and, in paranoid fashion, they are continually hearing the footsteps of reality creeping up behind them. Indeed, a reality that precludes them from that proverbial good look in the mirror. In any event, not to worry about irrelevancies, things that dont matter: Drudgereport: NASA REPORT: Aliens may destroy humanity to protect other civilizations [ Naah! Really dont have to .. confined to this solar system, by hand of God or man, were only talking decades at most  ] ...  ]



Play It Again Sam: Dave's Daily  [ As always, Dave is spot-on as an astute, knowledgeable, seasoned veteran of the markets. ] ‘ In our little village in New Hampshire (call it Whoville) there's a summer stock playhouse a block or so from us. They have many good plays but no matter the production or quality, they can't top Wall Street from delivering great performances. Thursday was another great show starring Jobless Claims, Warren Buffet, HAL 9000s, Steve Jobs and, of course, Da Boyz running the CRIMEX (COMEX and CME) on precious metals options expiration.   

The spin on Jobless Claims data was prior claims were adjusted higher making recent higher claims look not so bad especially when you add Verizon workers.

Warren Buffett entered from stage left with a $5 billion investment in Bank of America (BAC) giving him 6% interest tax-free (a "coddled" billionaire?) and making he and Berkshire (BRK) a new TARP program.

The HAL 9000s have been doing business as HFTs (High Frequency Traders) launching many buy or sell programs using complex algorithms which can drive prices on indexes higher or lower in dramatic fashion. One of their great acts is called "quote stuffing". It's another illegal activity which the SEC hasn't quite figured out. It's as futile for them as the illegal fee-driven recent end-of-quarter price jam-job. One of these actions was featured courtesy of our friends at Zero Hedge and depicted below as it occurred Thursday afternoon. The first chart features the quotes per second (NOTE: one instance exceeding 800 quotes per second). The next chart shows the market's simultaneous reaction. 

http://www.thestreet.com/tsc/daves/082511/image002.jpg

Steve Jobs sadly is retiring from his leading role as Apple (AAPL) CEO but the stock hardly budged given the products and brand are already well-known and his retirement was much anticipated.

Last, but not least certainly, was the performance of Da Boyz production of gold price manipulation. The first bear raid occurred Tuesday as The Shanghai Gold Exchange raised margins putting pressure on prices Wednesday in the U.S. Not so secretly evidently, Da Boyz met in Chicago and determined to raise gold margins after the close of trading on Wednesday--this being done with prices already down $100. This action was obviously leaked to those in the options pits and the impact enhanced with options expiration Thursday. So we gapped down lower with this event no doubt triggering more stops. This made the strike price hunt down profitable for those on the floor. Once those cleared we rallied back and closed slightly higher on the day. 

http://www.thestreet.com/tsc/daves/082511/image003.jpg

Meanwhile, back at Wall & Broad stocks fell sharply because evidently there's some concern Ben will do nothing in launching another round of QE from Jackson Hole. Bond prices were higher as was the dollar while commodity prices overall were mixed.

Volume was higher once again on selling and breadth per the WSJ was quite negative putting more life back into the roller coaster ride…’

 

Play it again Sam  http://www.phrases.org.uk/meanings/284700.html   ORIGIN

Bogart's supposed line from Casablanca. This is well-known as one of the most widely misquoted lines from films. The actual line in the film is 'Play it, Sam'. Something approaching 'Play it again, Sam' is first said in the film by Ilsa Lund (Ingrid Bergman) in an exchange with the piano player 'Sam' (Dooley Wilson):

Ilsa: Play it once, Sam. For old times' sake.
Sam: I don't know what you mean, Miss Ilsa.
Ilsa: Play it, Sam. Play "As Time Goes By."
Sam: Oh, I can't remember it, Miss Ilsa. I'm a little rusty on it.
Ilsa: I'll hum it for you. Da-dy-da-dy-da-dum, da-dy-da-dee-da-dum...
Ilsa: Sing it, Sam.

The line is usually associated with Humphrey Bogart and later in the film his character Rick Blaine has a similar exchange, although his line is simply 'Play it':

Rick: You know what I want to hear.
Sam: No, I don't.
Rick: You played it for her, you can play it for me!
Sam: Well, I don't think I can remember...
Rick: If she can stand it, I can! Play it! ‘

 

 

Facebook "Places" List Signals Decline of Western Civilization at Minyanville Justin Rohrlich  ‘Okay, it's official: the United States is pathetic … From Mashable comes the first set of Facebook-supplied data regarding where their users "check in"...and it ain't pretty:

1. Starbucks

2. Buffalo Wild Wings

3. Chili’s

4. Applebee’s

5. McDonald’s

6. IHOP

7. Denny’s

8. Olive Garden

9. T.G.I. Friday’s

10. The Cheesecake Factory


Yep, that's where we stand these days -- of the 157 million Facebook users in the United States, these are the ten locations they frequent most. Not the restaurants they frequent most. The PLACES they frequent most. If that doesn't signal America's imminent decline, maybe the Pennsylvania middle school principal who is bringing his sheep to work because lawnmowers are breaking the budget, will. Just askin'.

 

Buchanan: The view from Martha's Vineyard... Patrick J. Buchanan As he and his daughters bicycle around the summer playground of the Northeastern elite, Martha's Vineyard, President Obama is steadily bleeding away both the support of the nation and that of his most loyal constituency. Several times, his approval rating in Gallup's daily tracking poll has sunk to 39 percent, with disapproval reaching 54 percent. Support for his handling of the economy has dipped to the mid-20s. Only 11 percent of Americans, says Gallup, are satisfied with the way things are going. Unemployment remains at 9 percent, as it has for two years. The Dow has lately lost 2,000 points, or $3 trillion in wealth wiped out. All that money the Fed pumped out is now being reflected not only in the price of gold, silver and Swiss francs, but in rising consumer prices inflation. One in five U.S. children is living in poverty.

Middle America, some time ago, decided the "hopey, changey thing" was not working out for them. Now the patience of African-Americans with a president for whom they voted 24 to one is wearing thin.

At a Black Caucus confab in Detroit, Rep. Maxine Waters told an angry audience that if and when Black America demands that they confront Obama, the caucus is ready "to have the conversation."

A collision between Obama and his base seems inevitable. For Black America's situation, though tough today, seems certain to get tougher. Why?

First, black Americans held a significant share of the subprime mortgages that went sour when housing prices went south, and are thus overrepresented among those who lost homes.

Second, black Americans, with a higher rate of poverty, depend more on the entitlement and social programs that Obama cannot avoid hoisting onto the chopping block in any "balanced" plan for dealing with the deficit-debt crisis.

Third, African-Americans are overrepresented among the 22 million who work for local, state and federal governments. And while government workers came out best in terms of job security and salary hikes in the stimulus days of 2009 and 2010, in the austerity days of 2011, they are getting their fair share of pink slips. It is almost a truism: Whenever Middle America goes into recession, Black America flirts with depression.

Consider the U.S. Postal Service, with 600,000 employees, running a deficit of $8.5 billion and facing layoffs of 120,000. According to William Burrus, ex-president of the Postal Workers Union, 21 percent of all postal employees are black. When the cuts come, minorities will take a big hit.

That African-Americans favor a powerful federal government is understandable. After all, it was the federal government that crushed the Confederacy, freed the slaves, sent troops to integrate the South, enacted the civil rights laws, imposed affirmative action on companies and colleges, and created the Great Society that provided trillions in wealth transfers and welfare benefits and employs a share of the black population that is nearly twice its representation in the labor force.

That African-Americans would see states' rights conservatives and small-government Republicans as hostile to the one powerful institution most friendly to them should come as a no surprise.

Here we come to Barack's dilemma.

The nation he leads is facing a deficit-debt crisis that comes of an inescapable truth: Whether we are talking about commitments to go to war to defend scores of nations or commitments to entitlement and Great Society programs such as Social Security, Medicare, Medicaid, earned income tax credits, food stamps and Pell grants, we Americans have handed out promissory notes we no longer have the means to meet.

We can no longer deliver what we have promised.

We are running deficits of 10 percent of gross domestic product with a national debt over 100 percent. We are on the path that Italy is following, which is the path that Greece pursued.

We are an overextended empire and commonwealth facing strategic and fiscal bankruptcy. If Obama is to lead the nation out of the crisis it confronts, he has to preside over a downsizing of the welfare-warfare state the same state that sustains his base.

Not to worry, we are told. When the lazy days of summer are over, Obama will present Congress with his big plan for resurrecting the economy and ensuring the long-term solvency of the nation.

Obama's September program indeed, any credible plan to revive the economy and bring our books into balance has to include a rollback of U.S. commitments at home and abroad.

Yet, domestically, this cannot be done without reducing future Social Security, Medicare and Medicaid benefits, and cutting and capping the social programs of the Great Society. Moreover, half the nation cannot freeload forever, as is the case today, contributing nary a dime in federal income taxes.

And such reforms must adversely impact most Obama's political and personal base.

If he proposes new taxes, tea-party Republicans fix bayonets.

If he proposes downsizing the government and cutting and capping social programs, his most loyal constituents rise up against him.

Enjoy the Vineyard, Mr. President. Read more: The view from Martha's Vineyard http://www.wnd.com/index.php?fa=PAGE.view&pageId=335265#ixzz1VQWOeKDx

 

Putin sets sights on Eurasian economic union FT | Putin hopes to build a “quasi-European Union” out of former Soviet states.

 

 

Cracked Fukushima: Radioactive steam escapes danger zone RT | Workers at Japans Fukushima plant say the ground under the facility is cracking and radioactive steam is escaping through the cracks.

 

Obama Takes More Vacations Than Any Human Being Ive Ever Seen Fox News | Here we have a country that really is going to hell in a handbasket.

 

Perry Apes Ron Paul in Attack on Fed Cartel Kurt Nimmo | If Perry becomes president, his pretend opposition to the Fed will evaporate faster than Obamas promise to bring the troops home.

 

Details of Obamas jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for wobama the b (for b***s***), the eternal campaign(er) hes got a good rap that rapper wobama the b (for b***s***).  Really! Hes a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him maybe hes somewhat of an allure as in a freak show. Hes a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as bush failure 3. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they dont pressure President Obama because he is loved by black voters.  Obama Takes More Vacations Than Any Human Being Ive Ever Seen Fox News | Here we have a country that really is going to hell in a handbasket. Bus Tour Bust: Obamas Approval Plummets Back Into 30s, Says Gallup CNS News | Obamas politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ]New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobamas actions had not belied his words/campaign promises, the nations position, though still ominous, would have been substantially improved.

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 

 

 

 

SEC accused of destroying files Former agency official says SEC violated federal law by destroying records of enforcement cases in which it decided not to file charges. (Washington Post) [ Duh, ya think? The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!     SEC destroyed documents, senator says 17 Aug 2011 The Securities and Exchange Commission may have destroyed documents and compromised enforcement case ...   Grassley: Agency may have got rid of Goldman, Madoff documents   Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) The Securities and Exchange Commission may have destroyed documents and compromised enforcement cases involving activity at large banks and hedge funds during the height of the financial crisis in 2008, according to allegations made by a lawmaker on Wednesday. From what Ive seen, it looks as if the SEC might have sanctioned some level of case-related document destruction, said Sen. Chuck Grassley, Republican of Iowa, in a letter to the agencys chairman, Mary Schapiro. Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law. Agency staff destroyed over 9,000 files related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch. The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past years work. Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. GS +0.33%   trading in American International Group credit-default swaps in 2009. Flynn also alleged that the agency destroyed documents and information collected for preliminary investigations at Wells Fargo & Co. WFC +1.34% , Bank of America Corp. BAC +0.81% , Citigroup C +0.13%  , Credit Suisse CS +0.38%  , Deutsche Bank DB +0.79%  Morgan Stanley MS -0.06%  and the now-bankrupt Lehman Brothers. The letter goes into particular detail about Deutsche Bank, the former employer of current SEC enforcement chief Robert Khuzami as well as former enforcement chiefs Gary Lynch and Richard Walker…’

Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic lawyer) is one of those typically with a pre or post arrangement, whether implicit or explicit; you know, that ubiquitous bribe thing in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by italians in the new york d.a.s office over the objection of the FBI, and were promptly dispatched/assassinated / hit by mafia / organized crime [ this was documented with authority in the book Goombata: The Improbable Rise and Fall of John Gotti and His Gang Cummings / Volkman  ]

 

 

Carlyle in diversification flurry Carlyle is expected to announce $40 million in energy investments, capping a two-week flurry of deals.  (Washington Post) [ Yeah! Youd expect that from the likes of them; you know, a flurry so close to the election; quid pro quos, bribes and things Flashback: Carlyle picks underwriters for IPO  (Washington Post) [ Clearly part of the problem. Cashing out while the goins good, gettin' out while the gettins good? Well what else is wall street for? Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, its never been higher. Yes, its normal for insiders to be selling some of their stocks so they can buy new yachts and some of this is pre-planned. But that ratio which has spiked recently is extraordinarily high, one might even say off-the-chart.   The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed… an especially great opportunity to sell / take profits while you still can since there's much worse to come!    Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’  He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows    Previous: Carlyle Group planning IPO (Washington Post) [  Come on! Mr. Heath makes this sound like an almost public service endeavor to serve the public interest in some vague, nondescript fashion (What of real value do they do? kind of like the fraudulent wall street high-frequency trading churn-and-earn Nothing! Like parasitic termites eating away at the foundation of the nation); poppys estate plan is maximized, along with the other principals financial interests by cashing out through this public offering / scam as for the most part, this era of their jig is up .   Meet The Carlyle Group - Former World Leaders and Washington ... How will President George W. Bush make a personal fortune from the War on Terror? The old fashioned way. He'll inherit it; Meet the Carlyle Group.
www.hereinreality.com/carlyle.html

How will President George W. Bush personally make million$, if not billion$ from the War on Terror? The easy way.  He'll inherit it.

Meet the Carlyle Group

Former World Leaders and Washington Insiders Making Billions in the War on Terrorism

Bush    Baker   Carlucci    Darman   Major    Ramos

http://www.angelfire.com/indie/pearly/htmls/bush-carlyle.html    Investment giant says it will likely sell shares. Defense Secretary Robert M. Gates tours eastern Afghanistan, days before the Obama administration is scheduled to complete a major review of its war strategy. ]

 

Make way for the super bundlers  The 2010 elections saw the rise of Super PACs. In 2012 it will be a new breed of fundraisers. (Washington Post) [ Super bundlers? If Mr. Eggen had said facilitators for the super bunglers, I would have recognized what he meant. But, super bundlers immediately brings to mind another kind of fraud / scam, viz., those bundled toxic asset worthless paper securities things so lucratively popularized by the frauds on wall street with the blessing of their amen corner in Washington to the detriment of this and other nations and particularly this nations taxpayers / middleclass whove been decimated. If he had called them what they more realistically are, viz., visible slush funds for those visible invisible quid pro quo / bribe schemes, welfare of the nation be damned, I indeed would have known what I think he meant.  Is Obamas fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Lets just say the fate of wobama the b (for b***s***) is written, period. Quite simply, hes done! Heres a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . Dont cry for him new argentina, the truth is he really screwed you well you know that familiar theme and can ad lib, insert your own words! 
Its still Obamas party Why he won
t face a primary challenge: Republicans and racial politics. (Washington Post) [  Its true so right you are! Al Gores even pitchin in by donating the talents of his long lost secret love child, Leslie Gore to pen and sing a song in wobamas honor (kidding) which goes something like this , Its his party and hell cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you   Well, there you go if the song says it it must be true. Yeah! And those dern republicans and their racial politics UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims' Time to get whitey, at last, at last, etc., say holder / wobama who go on to say and they aint talking about Whitey Bulger, the mobster, either!


Postal Service seeking 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think its a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable:  October 15, 2010 (*see infra {ultimately delivered by UPS})


SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!


 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Here’s some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holders vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Wont Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holders vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

 

 

Sincerely and Regards,

 

Al Peia

 

 

In euro crisis, signs of German fatigue  Politics keep the chancellor from putting full weight of Europe’s largest economy behind a solution (Washington Post) [ Yeah … ‘square pegs in round holes’ is definitely not Germany’s style. European economies brace as Germany slows Discouraging news about the pace of growth came just hours before German and French leaders called for new steps to impose discipline on governments whose lax budget practices prompted the debt crisis. (Washington Post) [ First, let’s call this economic scenario what it is; viz., the ‘d’ word … ‘depression’. For those who find that term unutterable, then ‘double-dip recession’ is the term for you. All the dollar debasement (over-printing, etc.) for the benefit of the frauds on wall street et als to the substantial detriment of everyone else can’t change and has exacerbated and obfuscated this fact. Moreover, there has been a manipulated churn-and-earn high-frequency trading bubble-bull cycle in what is unmistakably a secular bear market.   Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1    Europe’s crisis and the psychology of fear   (Washington Post) [ Given the reality and magnitude of Europe’s problems going forward, dwarfed only by the magnitude of those of pervasively corrupt, defacto bankrupt america, it brings to mind the words of the former Intel CEO (co-founder) Andy Grove ‘ Only the paranoid survive’ (of course, having survived the Nazis and escaped Communist-controlled Hungary in Europe, as a jew, one has to assume his perspective / outlook was somewhat ‘skewed’ thereby). Yet, let’s not kid ourselves to the point where virtual survival is threatened and at stake as is so for the EU. America isn’t alone in the downgrade spiral  (WP) Indeed, the EU has followed the contra-indicated perma war, evermore worthless Weimar currency, and a predispositon / tacit acceptance of paper securities schemes / scams / frauds which are integral to america’s ongoing, albeit obfuscated, debacle / crisis which given the unfunded debt load pegged at $211 Trillion among other estimates, is insurmountable and will end quite badly.  Poll: Sharp dissatisfaction with D.C. The public doubts the government can fix the nation’s economic problems, Post poll shows. An unlikely landlord: Uncle Sam  (WP) [ No surprise there (the doubts)!  Uncle Scam as landlord? Sounds like a typical scam / fiasco / debacle in the making! Add limey (brits)-looking (green) frogs (french) to the mix(ed up) in the pervasively corrupt defacto bankrupt disunited states   Italy unveils plan to calm fears of escalating crisis  (WP) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europe’s debt crisis threatens Italy (WP) [ Yeah, dem’ darn PIIGS.  Reminds me of that joke (I won’t repeat it here except the punch line): ‘That’s black bart’s girl’.  Pelosi: ‘We are not Greece’  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobama’s got a boehner … so not to be so hard on them; if pelosi says it, it must be true … Not! …Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the same’s wobama’s ‘far-reaching plan on debt’, we all know ‘wobama the b’ (for b***s***) is total b***s*** which means like Greecey PIIGS they’ll be back to the trough for more … slop … py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake gov’t data / reports owing to political desperation! Why You Shouldn't Buy Into This Plunge Forbes/O'Neil‘The market is building momentum to the downside’.   Wall Street closes worst week since '08 with wild day NEW YORK (Reuters) S&P on U.S. downgrade: Debt pact 'falls short' - Reuters  S&P downgrades US credit rating from AAA   S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet    What Recovery? Forbes   ‘…we can’t call this a recovery. There’s no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. And while we’re at it, we can’t ignore increasing sovereign debt problems in Europe…’  Top 3 Reasons Markets Erased the Year’s Gains Wall St. Cheat Sheet  1) Japan and Europe 2) Unemployment.3) Capital goods - billions of dollars in lost revenue. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis… My work shows that “the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER)… However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher.

 

 

Will: Is Britain a lost ally?   (Washington Post) [ How ‘bout just lost! And, while on the subject of lost, pervasively corrupt, defacto bankrupt america should tell the so-called (self-interested to america’s detriment) ‘ally’ israel to get lost!  

David Starkey On UK Riots: Whites Have Become Black You Tube | A particular sort of violent destructive, nihilistic gangster culture has become the fashion. [ Britain burns the colour of  'A Clockwork Orange' Financial Times [ Truly a great film by any cinematic standard by Stanley Kubrick based on the book of the same name by Anthony Burgess, A Clockwork Orange takes place in a futuristic city governed by a repressive, totalitarian super-State. In this society, ordinary citizens have fallen into a passive stupor of complacency, blind to the insidious growth of a rampant, violent youth culture. The protagonist of the story is Alex, a fifteen-year-old boy who narrates in a teenage slang called nadsat, which incorporates elements of Russian and Cockney English. Alex leads a small gang of teenage criminalsDim, Pete, and Georgiethrough the streets, robbing and beating men and raping women. Alex and his friends spend the rest of their time at the Korova Milkbar, an establishment that serves milk laced with drugs, and a bar called the Duke of New York http://www.sparknotes.com/lit/clockworkorange/summary.html   http://en.wikipedia.org/wiki/A_Clockwork_Orange_%28film%29   A Clockwork Orange is a 1971 British darkly satirical science fiction film adaptation of Anthony Burgess's 1962 novel of the same name. This cinematic adaptation was produced, directed, and written by Stanley Kubrick. It features disturbing, violent images, to facilitate social commentary about psychiatry, youth gangs, and other contemporary social, political, and economic subjects in a dystopian, future Britain.Alex (Malcolm McDowell), the main character is a charismatic, psychopathic delinquent whose pleasures are classical music (especially Beethoven), rape, and so-called 'ultra-violence'. He leads a small gang of thugs (Pete, Georgie, and Dim), whom he calls his droogs (from the Russian друг, "friend", "buddy"). The film tells the horrific crime spree of his gang, his capture, and attempted rehabilitation via a controversial psychological conditioning technique. Alex narrates most of the film in Nadsat, a fractured, contemporary adolescent slang comprising Slavic (especially Russian), English, and Cockney rhyming slang.A Clockwork Orange features a soundtrack comprising mostly classical music selections and Moog synthesizer compositions by Walter Carlos. The now-iconic poster of A Clockwork Orange, and its images, were created by designer Bill Gold. The film also holds the Guinness World Record for being the first film in media history to use the Dolby Sound system ]

 

Meyer: Why arent Americans rioting?   (Washington Post) [ It really is quite surprising inasmuch as theyre getting quite a royal screwin from the so-called powers that be. There might be a tinge of masochism coupled with a feeling of punishment-deserved remorse in light of the overridingly inherent criminal nature of americans generally, propelling them to wrongful acts for which they should be sorry, based upon my own experience and direct observation. That said, Id also say give them time, the worst is yet to come. Moreover, were already seeing it, and not just in britain, greece, italy, etc., but here in the pervasively corrupt, defacto bankrupt disunited states of america; viz., detroit, chicago, philadelphia, etc., with predictions consistent with the reality of much worse to come. Europes crisis and the psychology of fear   (Washington Post) [ Given the reality and magnitude of Europes problems going forward, dwarfed only by the magnitude of those of pervasively corrupt, defacto bankrupt america, it brings to mind the words of the former Intel CEO (co-founder) Andy Grove Only the paranoid survive (of course, having survived the Nazis and escaped Communist-controlled Hungary in Europe, as a jew, one has to assume his perspective / outlook was somewhat skewed thereby). Yet, lets not kid ourselves to the point where virtual survival is threatened and at stake as is so for the EU. America isnt alone in the downgrade spiral  (WP) Indeed, the EU has followed the contra-indicated perma war, evermore worthless Weimar currency, and a predispositon / tacit acceptance of paper securities schemes / scams / frauds which are integral to americas ongoing, albeit obfuscated, debacle / crisis which given the unfunded debt load pegged at $211 Trillion among other estimates, is insurmountable and will end quite badly.  Poll: Sharp dissatisfaction with D.C. The public doubts the government can fix the nations economic problems, Post poll shows. An unlikely landlord: Uncle Sam  (WP) [ No surprise there (the doubts)!  Uncle Scam as landlord? Sounds like a typical scam / fiasco / debacle in the making! Add limey (brits)-looking (green) frogs (french) to the mix(ed up) in the pervasively corrupt defacto bankrupt disunited states   Italy unveils plan to calm fears of escalating crisis  (WP) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europes debt crisis threatens Italy (WP) [ Yeah, dem darn PIIGS.  Reminds me of that joke (I wont repeat it here except the punch line): Thats black barts girl.  Pelosi: We are not Greece  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobamas got a boehner so not to be so hard on them; if pelosi says it, it must be true Not! Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the sames wobamas far-reaching plan on debt, we all know wobama the b (for b***s***) is total b***s*** which means like Greecey PIIGS theyll be back to the trough for more slop py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimcos Bill Gross told CNBC Monday.  Maierhofer: USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake govt data / reports owing to political desperation!

 

 

Will: Kennedy’s Berlin blunder  (Washington Post) [ Oh come on Mr. Will! I’d say Kennedy’s  blunder was, as Caesar and the ides of March, not heeding warnings concerning that Dallas ride. A bit of a reach though factually accurate are the implications, consequences of those highlights which in terms of results were foreseen years before by ‘Warrior-General Patton’. Indeed, for the rising military industrial complex, one way or another, conflict whether hot or cold, requiring substantial defense spending was fait accomplis. I’m disappointed to hear of Kennedy’s unfounded criticism of the last great leader / president, the substantially underrated but great President General Eisenhower which I would attribute to Kennedy’s own insecurity regarding such matters and possibly in psychiatric terms, a form of displacement. Krauthammer: Our political system is working well  (Washington Post) [ Wow! There was a time back in the late sixties, early seventies when there were these long-haired people chastised by the so-called ‘establishment’ that would have just loved to be doin’ whatever it is that Mr. Krauthammer’s been doing to arrive at such a conclusion, so glaringly devoid of any reality whatsoever. Psychedelics, hallucinogens, magic mushrooms; what could it be that has brought Mr. Krauthammer into this fantasy world where even ‘Alice’ of Wonderland fame might feel comfortable in this netherland (sic) / netherworld created from the depths of Mr. Krauthammer’s imagination. I’m truly at a loss for words. After all, the warning by the underrated but great President General Eisenhower of the impending inherent danger of the military industrial complex came to fruition with the assassination of JFK and the reality of a coup d’etat thereby. All presidents, along with the two remaining branches of the pervasively corrupt, defacto bankrupt american government since have been at best stooges for such as the military industrial complex, the banksters / frauds on wall street, etc., to the substantial detriment of the vast majority in this country and throughout the world (ie., perma wars, huge securities frauds still extant / now marked to anything as per congressional FASB rule change, and unprosecuted. Beyond the immediate reach, or at least ‘penetration’ of american propaganda, an intelligent and astute individual, Legendary Investor Jeremy Grantham: America is a Banana Republic Washington’s Blog | Just different bananas perhaps? { Of course this is absolutely true! And not just from the meaningfully lawless perspective – I had made such a statement on the record in a LA Superior Court Appellate Dept. proceeding in which said court literally ignored the law (the same is true of the costly, plushly accoutered lifetime appointee federal courts) which courts should indeed be abolished in these difficult economic / budgetary times. Additionally, from pervasive corruption, to debased over-printed currency, to gunboat diplomacy, to total incompetence, etc., america is indeed a banana republic at most. }    I didn’t see the debates {what does it matter what they say – the egregious ‘wobama the b’ (for b***s***) fatigue factor / experience} nor have I read Mr. Robinson’s article, ‘GOP Debate Land’ but I’m sure I’d agree with his conclusion,  ‘I didn’t recognize the America the GOP candidates described;’ but unfortunately, I do recognize the pervasively corrupt, defacto bankrupt america of ‘wobama the b’ (for b***s***), failed president like his predecessor, moron war criminal dumbya bush, that he is. The powerless president  Obama remains indecisive, and ignored, as larger forces bring down the country.  Robinson: S&P downgrades the GOP   (WP) [ Riiiiight! It’s everything but ‘wobama the b’ (for b***s***) that’s to blame for the nation’s meltdown according to wobama aficionados / intractable wobama apologists, Messieurs Milbank and Robinson. Sweet Mr. Milbank even points to wobama’s personal character flaws (among many unmentioned) to exculpate the failed president wobama. Wobama’s failed miserably and yet had the easiest act in the world to follow in the persona of fellow failed president war criminal dumbya bush whose failed policies up to the real start of the election cycle he’s largely followed. After all, Mr. Robinson, how different really are the parties these days when profligate spending on illegal, unnecessary wars was continued when democrats controlled congress, and then even the executive office when continuing failed president and war criminal dumbya bush’s nation bankrupting, nation destroying war policies, protection for unprecedentedly huge wall street frauds, bush tax cut extensions for the wealthy, and then some (spending on top of it).
Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.
Poll: Sharp dissatisfaction with D.C. The public doubts the government can fix the nation’s economic problems, Post poll shows. An unlikely landlord: Uncle Sam  (Washington Post) [ No surprise there (the doubts)!  Uncle as landlord? Sounds like a typical scam / fiasco / debacle in the making! Add limey (brits)-looking (green) frogs (french) to the mix(ed up) in the pervasively corrupt defacto bankrupt disunited states   Italy unveils plan to calm fears of escalating crisis  (Washington Post) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europe’s debt crisis threatens Italy (WP) [ Yeah, dem’ darn PIIGS.  Reminds me of that joke (I won’t repeat it here except the punch line): ‘That’s black bart’s girl’.  Pelosi: ‘We are not Greece’  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobama’s got a boehner … so not to be so hard on them; if pelosi says it, it must be true … Not! …Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the same’s wobama’s ‘far-reaching plan on debt’, we all know ‘wobama the b’ (for b***s***) is total b***s*** which means like Greecey PIIGS they’ll be back to the trough for more … slop … py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake gov’t data / reports owing to political desperation! Why You Shouldn't Buy Into This Plunge Forbes/O'Neil‘The market is building momentum to the downside’.   Wall Street closes worst week since '08 with wild day NEW YORK (Reuters) S&P on U.S. downgrade: Debt pact 'falls short' - Reuters  S&P downgrades US credit rating from AAA   S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet    What Recovery? Forbes   ‘…we can’t call this a recovery. There’s no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. And while we’re at it, we can’t ignore increasing sovereign debt problems in Europe…’  Top 3 Reasons Markets Erased the Year’s Gains Wall St. Cheat Sheet  1) Japan and Europe 2) Unemployment.3) Capital goods - billions of dollars in lost revenue. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis… My work shows that “the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER)… However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher.
Is Obama’s fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Let’s just say the fate of ‘wobama the b’ (for b***s***) is written, period. Quite simply, he’s done! Here’s a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . ‘Don’t cry for him new argentina, the truth is he really screwed you’ … well you know that familiar theme and can ad lib, insert your own words! 
It’s still Obama’s party Why he won’t face a primary challenge: Republicans and racial politics. (Washington Post) [  It’s true … so right you are! Al Gore’s even pitchin’ in by donating the talents of his long lost secret love child, ‘Leslie Gore’ to pen and sing a song in wobama’s honor (kidding) which goes something like this , ‘It’s his party and he’ll cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you …  Well, there you go … if the song says it it must be true. Yeah! And those dern republicans and their racial politics … UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...
ignore cases that involve black defendants and white victims' – Time to get whitey, at last, at last, etc., say holder / wobama who go on to say ‘and they ain’t talking about Whitey Bulger, the mobster, either!’

 

 

MI6 produced bogus Iraq war evidence under pressure from Downing Street Daily Mail | Iraq had long been a backwater for MI6.


 

NATO Massacres of Civilians Aimed at “Cleansing” the Libyan People’s Resistance Mahdi Darius Nazemroaya | Photographic evidence of NATO war crimes.


 

NATO urged to investigate civilian deaths during Libya air strikes Amnesty International | Amnesty International wrote to the NATO Secretary General asking for clarification on incidents in which unarmed civilians were reportedly killed.

 

 

U.S. and NATO Arming Syrian Opposition, Plan Military Strike Kurt Nimmo | Now the Iranians are reporting that NATO is sending large arms caches to Syrians resisting the al-Assad regime.

 

 

Democrats want a bolder Obama The president’s allies are getting nervous about what they see as the lack of a coherent strategy. (Washington Post) [ Well, tell it to the teleprompter. Without a head per se, at least no one could say as with ‘wobama the b’ (for b***s***) that the teleprompter was in over its head. Bolder b***s*** is still b***s***! ]

 

Gallup: Disapproval of Obama Ties All-Time High CNS News | American’s approval of President tied its all-time low of 42 percent.

 

Bristol Palin Interview Accidentally Reveals Mother's 15 Abortions  www.theonion.comWASILLA, AKSarah Palin's political team was forced to do emergency damage control Monday after the former Alaska governor's daughter Bristol accidentally divulged on live television that her mother has undergone at least 15 abortions over the past 30 years. "She's always telling me how special I am, especially considering the five or six babies she aborted before I was born," Palin, 20, said during a CNN interview in which she was asked if she thought her mother would make a good president. "Then of course there were the twins she aborted shortly after having me, another four abortions after Willow somehow survived hersbut anyway, she's a wonderful mom. She just gets pregnant a lot and doesn't always want to have the baby." Palin also commended her mother's strength in carrying three babies with Down syndrome to term, and then even choosing not to give Trig up for adoption like the others.

 

Taliban who downed U.S. copter killed U.S. officials say Taliban fighters who shot down a helicopter with 30 U.S. troops were killed in airstrikes (Washington Post) [ Oh come on! The Taliban don’t even know who among them downed the u.s. killer copter! Great propaganda, ‘u.s. gi’s always get their man’. Doesn’t anyone get tired of their endless b***s*** in their end run to the end? After all, the nation is defacto bankrupt in large part as a direct consequence of these ‘military-industrio-inferiority-complex’ follies / welfare warfare programs. Then there’s the cocomitant typical skullduggery which includes inter alia: 

Same ritual, a changed president This time, President Obama traveled to Dover Air Force Base to greet the remains of Americans he had ordered to Afghanistan himself. Some victims of crash are identified  (Washington Post) [ Changed? I think we could all agree that despite campaign promises to the contrary, nothing’s changed; except, pervasively corrupt defacto bankrupt america is more hopelessly bankrupt and the dismal economic picture has become more dour. 

Bin Laden Heroes Probably Murderered to Keep Them Quiet  ... Gordon Duff Veterans Today

FLASHBACK: Eyewitness to OBL Raid Saw Helicopter Explode (TRANSCRIPT) [ As indicated on this albertpeia.com website, I didn’t buy the administration’s desperate and politically opportunist Osama event and still don’t buy it; and further, I believe this! ]Veterans Today | TRANSCRIPT of critical interview with Pakistani eyewitness to Bin Laden raid. Is this the key to SEAL Team 6′s demise?

“Bin Laden” Heroes Probably Murderered to Keep Them Quiet  Gordon Duff  Veterans Today August 7, 2011 | Some Possibly Killed in Abbottabad Helicopter Crash Months Before. [ As indicated on this albertpeia.com website, I didn’t buy the administration’s desperate and politically opportunist Osama event and still don’t buy it; and further, I believe this! ] Today 31 NATO troops, 20 of them Navy Seals from the Osama bin Laden operation died in what is reported as a helicopter crash in Afghanistan.

The chance of this story being true is almost nil. The chances of this being a staged coverup is over 80%. We believe these people were murdered to silence them. This is why.

We have solid information on two areas:

1. Osama bin Laden died in 2001 as an active CIA employee and his body was recovered in Afghanistan and taken to “the sand box.” We were told it was frozen. We have so much verification from this, CIA, ISI, US military and top officials. I have a direct confirmation from Bin Laden’s CIA handler who I grilled mercilessly on this.

2. The Abbottabad operation involved numerous American deaths, witnessed, bodies all over, a helicopter crash. (suppressed translated TV interview below) These bodies were recovered by land vehicle from Islamabad and there was NO “successful” bin Laden operation of any kind. There was and has been a CIA safe house in Abbotabad where terror suspects were stored for years.

This gave the US several areas of severe vulnerability. Generally, Navy Seals are the best people in the world at keeping their mouths shut, these are real team players, as the term Seal Team belies.

We at VT were informed that the bin Laden operation was staged at this time, a theatrical farce, to cover the exit of Secretary Gates, the move by former CIA Director Leon Panetta into the DOD as Secretary of Defense and to stem any heroic claims by new CIA Director Petraeus of killing the long dead Osama bin Laden, the long frozen CIA operative.

Petraeus is a possible presidential contender and had to be denied this gift from heaven, a fast track to the oval office for sure.

Again, I remind you, I went over specific meetings on bin Laden with his handlers, getting every last detail. I have watched what has gone on, the continuing need to vilify a long dead top CIA operative to provide residual cover for the Bush administration

The reason? Bush and his cronies are all facing charges of war crimes, not just in minor jurisdictions but heading for the ICC, putting them on the dock with Gaddafi ( a far less harmful character).

As for the timing of this incident? This we will work on. What we can easily surmise is that some of the dead have been dead since their bodies were taken away from the helicopter crash site in Abbotabad.

Who would order such a thing? We are going to have to wait but we are going to find out. However, we expected this, the timing is exactly as predicted. Read full article

 

World at War Alex Jones' Infowars: There's a war on for your mind! Veterans Today | TRANSCRIPT of critical interview with Pakistani eyewitness to Bin Laden raid. Is this the key to SEAL Team 6s demise? ...

 

Deaths of SEAL Team 6 Exposed Aaron Dykes & Alex Jones | We predicted shortly after the raid on bin Ladens compound that SEALs would soon be reported dead in a helicopter crash or staged incident following multiple reports from military sources.

 

SEAL Unit Supposedly Responsible for Osama Hit Killed in Copter Crash Kurt Nimmo | Is it possible the Pentagon took out the helicopter to send a message to the SEALs, just in case some of them decide (like Pat Tillman did) to tell the truth?

 

Questions raised by the SEAL Team 6 deaths in Afghanistan Madison Ruppert | It took minutes before the Internet was ablaze with chatter about the deaths of these American commandos.

 

Tea Party hypocrisy Fueled by populist anger, but hijacked by plutocrats. (Washington Post) [ Ah, sweet Mr. Milbank. His love for wobama knows no bounds. Yet, given the choice between hypocrisy and inveterate lying, assuming arguendo, Mr. Milbank’s premise to be true (doubtful and I think most would say no), most would take hypocrisy any day. By now, most have realized that at best wobama’s a b***s*** artist, and at worst, an incorrigible liar; certainly as measured by his campaign promises that got him elected, belied by his actions. If Mr. Milbank had only said the nation’s been hijacked by plutocrats to whom wobama’s paid homage, I’d certainly agree in part. After all, there has been and continues a huge wealth transfer at the expense and to the detriment of the middle class, to the substantial benefit of the ‘plutocrats’ who in america are of that small percentile criminal class for whom everyone else must (and must be) sacrifice(d), ie., the wall street frauds, military industrial complex, government contractors, etc.. And, yet another casualty … if wobama’s peace-prize is not revoked, then that ignoble nobel thing should be disbanded for lack of credibility and moral compass.  Deal fails to soothe foreign critics  (Washington Post) { Let’s not kid outselves! I consider Russia a rational, great nation (their painful, yet peaceful transition from their mistake is a testament to their greatness as a people / nation and Gorbachev particularly – China’s recent success is as far from communism as can be imagined) and have high regard for Putin though lamenting his youthful, albeit inherited indiscretion (kind of like that Tiger hunt which he’s now wisely disavowed) in dabbling in the failed system of communism (the great lie where everybody’s equal except some are more equal than others, ie., party members, bureaucrats, etc., kind of like america today with the addition of the plutocratic wealthy thieves, criminals, frauds, etc.). That said, most of these so-called ‘foreign critics’ fall predominantly into either of two categories; viz., ‘pots calling the kettle black’, or ‘enablers’.    Putin Calls U.S. a “Parasite,” Demands New Reserve Currency Activist Post   The powerless president  Obama remains indecisive, and ignored, as larger forces bring down the country.  Robinson: S&P downgrades the GOP   (Washington Post) [ Riiiiight! It’s everything but ‘wobama the b’ (for b***s***) that’s to blame for the nation’s meltdown according to wobama aficionados / intractable wobama apologists, Messieurs Milbank and Robinson. Sweet Mr. Milbank even points to wobama’s personal character flaws (among many unmentioned) to exculpate the failed president wobama. Wobama’s failed miserably and yet had the easiest act in the world to follow in the persona of fellow failed president war criminal dumbya bush whose failed policies up to the real start of the election cycle he’s largely followed. After all, Mr. Robinson, how different really are the parties these days when profligate spending on illegal, unnecessary wars was continued when democrats controlled congress, and then even the executive office when continuing failed president and war criminal dumbya bush’s nation bankrupting, nation destroying war policies, protection for unprecedentedly huge wall street frauds, bush tax cut extensions for the wealthy, and then some (spending on top of it). Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.

 

 

 

White House turns attention to blacks Focus comes amid a growing concern that economic conditions might hamper black voter turnout. (Washington Post) [ As if we couldn’t see that coming. Yet, the ‘make-work, make-shift’ jobs already extant in the federal, state, local ‘public service’ sectors along with the otherwise unemployable at, ie., the u.s. postal service, etc., are uneconomic and overly costly (Drudgereport: Obama Economists Admit: 'Stimulus' Cost $278,000 per Job... ) at best and downright wasteful at worst, the latter being the most prevalent scenario. Moreover, despite the rhetoric, blacks will always ‘back the black’. No criteria. No analysis. ‘Back the black’ their despoiling cry. I think wobama and holder are probably more concerned with making sure the ‘black panthers’ are in full force at the polls to intimidate white voters, which racism they’ve given ‘carte blanche’, protection from prosecution … UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '. With wobama et als, the jive-talking b***s*** never ends! N.Y. bumped from foreclosure panel Iowa’s attorney general says N.Y. official “actively worked to undermine” group’s efforts in foreclosure negotiation with banks. (Washington Post) [ Yeah! No surprise here! Yet new jersey’s ‘representative’ would have been equally disingenuous in corruptly carry out his / her duties, so ‘doody-full’ are they, from there!  Sen. Chuck Grassley  “It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic – lawyer) is one of those typically with a ‘pre or post’ arrangement, whether implicit or explicit; you know, that ubiquitous ‘bribe thing’ in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by ‘italians’ in the new york d.a.’s office over the objection of the FBI, and were promptly ‘dispatched’/assassinated / hit by mafia / organized crime [ this was documented with authority in the book ‘Goombata: The Improbable Rise and Fall of John Gotti and His Gang’ Cummings / Volkman  ] Details of Obama’s jobs plan emerge (Washington Post) [  Oh come on! Too little, too late for ‘wobama the b’ (for b***s***), the eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Really! He’s a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him … maybe he’s somewhat of an allure as in a freak show. He’s a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as ‘bush failure 3’. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they don’t pressure President Obama because he is loved by black voters.  Obama ‘Takes More Vacations Than Any Human Being I’ve Ever Seen’ Fox News | “Here we have a country that really is going to hell in a handbasket.” Bus Tour Bust: Obama’s Approval Plummets Back Into 30s, Says Gallup CNS News | Obama’s politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84%

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ]New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

 

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

 

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...  
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.

 

 

 

 

What’s Apple without Steve Jobs?  Jobs has the knack of knowing what people want before they do. Can Apple stay ahead of the curve? (Washington Post) [ Without disparaging the company nor the remaining employees, what can be said of Apple with certainty in response the foregoing question is: ‘LESS’. That said, there couldn’t have been a more propitious time for the great (without even a tinge of sarcasm – among the relatively few great CEO’s in corporate history) Steve Jobs to leave. Steve Jobs resigns from Apple, Cook becomes CEO - SAN FRANCISCO (Reuters) - Silicon Valley legend Steve Jobs on Wednesday resigned as chief executive of Apple Inc in a stunning move that ended his 14-year reign at the technology giant he co-founded i... [ Far more than just a ‘Silicon Valley legend’, Steve Jobs literally saved Apple from extinction … I’m truly glad he saved Apple, my first computer (1986 - apple IIc for word processing / data based records / forms / templates / data which I interfaced with an electric typewriter for letter quality) and for that all should be thankful. Apple is the Nasdaq (40% weighting) and quite more, that now was! That’s past tense. Steve Jobs goes out a big winner as indeed he should! Yet, make no mistake, as one might expect, his timing was impeccable inasmuch as without his uniquely inspired innovation, competition moving in, and particularly the coming debacle / crisis the worst of which lies ahead, things are not looking up, in and for pervasively corrupt / defacto bankrupt america particularly, euphemistically speaking. ]  End Of Cycle Smelling Like Dow 3K, Gold 3K  Forbes /  Bill Bonner  … ‘Our view [ the correct view ] is that the bear market began in January 2000. The feds fought it off with two huge extravaganzas of spending — the first beginning in 2001 the other after 2008. Stimulus does wonders for stock prices but it no longer works for the economy that sustains them. For every dollar that the Fed has put to work to fight the crisis since 2008, for example, it has produced only 80 cents worth of GDP. It didn’t work……that the recession of ’08-’09 in the US never actually ended……and that stocks will go down over the next 5-10 years until they finally hit a real bottom…’ 

 

 

 

 

Robinson: King’s dream remains unrealized  (Washington Post) [ Yeah! That ‘content of their character’ thing’s a b***ch to live up to … just don’t measure up! What’s a white person to do, especially when black atty. General Holder with fellow black Obama’s tacit approval is racist himself (themselves)  UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims '. Drudgereport: 'Mob' beatings at WI state fair...
'Hundreds of young black people beating white people'... [ Typical…  ]
Fairgoers 'pulled out of cars'...
'They were just going after white people'...
Heightened security...

[ .. (the following incident is my personal experience: black perps, white victims)‘.. while walking through Military Park (a sliver of a “park” - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DA’s position with both felonies ( he went to prison – pled out ). The other case I wrote about here ( This was included on my website in the Psychology forum discussion of ‘bystander effect’ / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparently had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp (a police officer here in California was the object of intense criticism for having used a flashlight to subdue a criminal after a long chase so I included that here) . The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal went to jail (where they belong). The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so. I was also mugged by 4 blacks and 2 hispanics in an incident here in Los Angeles, CA. But, to be fair and balanced, the RICO litigation involves those uncivilized who consider themselves ‘whites’ http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf  (predominantly but not exclusively jews / romans-italians / mobsters / government slugs). ]

 

 

Banks are dimming Europe’s outlook Still restructuring after the 2008 crisis, euro-zone banks face new concern about their stability. (Washington Post) [ And not just europe’s outlook … How stable is the banking industry?. (Washington Post) [ Not too! … as if anyone should need remindin’!  After all, a depression is that ‘lowering tide that grounds all boats’ (the converse of that word picture I like to use in analysis of securities wherein focus on the macro environment, the economy, the largest aggregate enhances your probabilities of success on the theory / cliché ‘a rising tide lifts all boats’. Clearly, simplistic wisdom that is true.) The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is Insane The Wall Street Journal ,   Welcome To The New Bear Market For Stocks  Forbes / Suttmeier ,  Dow/Gold Ratio Lowest Since 1987 Crash   Forbes /  Adrian Ash  ,   Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  Tech Leading Market Lower The Wall Street Journal  ,  Banks closed in Fla, Ga, Ill; 2011 total is 68   ,   No Recession Coming ... It's Already Here  Previous:8-18-11 Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says    Crimes Wrecked The Markets    ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed ‘A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data

 

 

 

Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go the retaliation the long awaited payback (quid pro quo witheld) for long overdue downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities. 3 Top Crooks Still Roaming Free After the Economic Crash Wall St. Cheat Sheet  The global economy and stock markets took a nose dive in 2008. But that hasnt stopped some of the biggest masterminds from escaping a day of luxury…’ The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  SEC accused of destroying files Former agency official says SEC violated federal law by destroying records of enforcement cases in which it decided not to file charges. (Washington Post) [ Duh, ya think? The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!     SEC destroyed documents, senator says 17 Aug 2011 The Securities and Exchange Commission may have destroyed documents and compromised enforcement case ...   Grassley: Agency may have got rid of Goldman, Madoff documents   Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) The Securities and Exchange Commission may have destroyed documents and compromised enforcement cases involving activity at large banks and hedge funds during the height of the financial crisis in 2008, according to allegations made by a lawmaker on Wednesday. From what Ive seen, it looks as if the SEC might have sanctioned some level of case-related document destruction, said Sen. Chuck Grassley, Republican of Iowa, in a letter to the agencys chairman, Mary Schapiro. Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law. Agency staff destroyed over 9,000 files related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch. The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past years work. Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. GS +0.33%   trading in American International Group credit-default swaps in 2009. Flynn also alleged that the agency destroyed documents and information collected for preliminary investigations at Wells Fargo & Co. WFC +1.34% , Bank of America Corp. BAC +0.81% , Citigroup C +0.13%  , Credit Suisse CS +0.38%  , Deutsche Bank DB +0.79%  Morgan Stanley MS -0.06%  and the now-bankrupt Lehman Brothers. The letter goes into particular detail about Deutsche Bank, the former employer of current SEC enforcement chief Robert Khuzami as well as former enforcement chiefs Gary Lynch and Richard Walker…’ Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic lawyer) is one of those typically with a pre or post arrangement, whether implicit or explicit; you know, that ubiquitous bribe thing in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by italians in the new york d.a.s office over the objection of the FBI, and were promptly dispatched/assassinated / hit by mafia / organized crime [ this was documented with authority in the book Goombata: The Improbable Rise and Fall of John Gotti and His Gang Cummings / Volkman  ]

 

 

Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go the retaliation the long awaited payback (quid pro quo witheld) for long overdue downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities.  The "Crimes" That Wrecked The Markets  Forbes / Lenzner  3 Top Crooks Still Roaming Free After the Economic Crash Wall St. Cheat Sheet  The global economy and stock markets took a nose dive in 2008. But that hasnt stopped some of the biggest masterminds from escaping a day of luxury The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is Insane The Wall Street Journal ,   Welcome To The New Bear Market For Stocks  Forbes / Suttmeier ,  Dow/Gold Ratio Lowest Since 1987 Crash   Forbes /  Adrian Ash  ,   Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  Tech Leading Market Lower The Wall Street Journal  ,  Banks closed in Fla, Ga, Ill; 2011 total is 68   ,   No Recession Coming ... It's Already Here  Previous:8-18-11 Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says    Crimes Wrecked The Markets    ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    Famed economist predicts economic calamity in 2012. See the evidence.Newsmax http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com)   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC.com 

SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!

 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Here’s some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

 

 

Sincerely and Regards,

 

Al Peia

 

 

 

 

 

U.S. stocks end volatile week in the red (Washington Post) [The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!  Train Reading: The Stock Market Is Insane The Wall Street Journal ,   Welcome To The New Bear Market For Stocks  Forbes / Suttmeier ,  Dow/Gold Ratio Lowest Since 1987 Crash   Forbes /  Adrian Ash  ,   Ignore Buffett's Advice, Don't Buy Stocks Forbes /  Dohmen , The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  Tech Leading Market Lower The Wall Street Journal  ,  Banks closed in Fla, Ga, Ill; 2011 total is 68   ,   No Recession Coming ... It's Already Here  Previous:8-18-11 Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says    Crimes Wrecked The Markets    ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed ‘A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    Famed economist predicts economic calamity in 2012. See the evidence.Newsmax http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com)   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC. Harry Dent, Jr. Economy will be in a Depression by 2011
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).
   Dow 1000? Robert Prechter Thinks So      Prechter Reiterrates Call For Dow 1,000, Even As Surging Gold And Plunging Dollar Leave Much Credibility To Be Desired        Bulls Go to Extremes: Don't Buy the "Breakout", Sell It, Prechter Says     Russell: This Is One Of The Largest Tops In Stock Market History  My old friend, Bob Prechter, is talking about Dow 400. I used to think this was an absurd joke. I no longer think it’s a joke. The ultimate result will be a primary bear market shocking in duration and extent. …’     Forecasts from Dent, Napier, and then Prechter: Depression is Imminent The Dow Jones Industrial Average will go down to at least 1000, most likely to below 777 which was the starting point of its mania back in August 1982, and quite likely drop below 400 at one or more times during the bear market.  [ 8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse ‘…  #8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR….
“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap” ..’   Why You Shouldn't Buy Into This Plunge Forbes/O'Neil‘The market is building momentum to the downside’.]   

 

 

 

 

Moodys managers pressured analysts, former executive says Credit-rating agency has been criticized for giving high grades to dubious investments. Now one of its own is leading the criticism.   SEC purged documents without authorization    Report: DOJ investigating S&P's mortgage securities ratings Associated Press The Justice Department is investigating whether the agency improperly rated dozens of mortgage securities in the years leading up to the financial crisis. (Washington Post) [ There you go the retaliation the long awaited payback (quid pro quo witheld) for long overdue downgrade. They should be investigating themselves, the SEC ( SEC destroyed documents, senator says ), among numerous other fraudulent, illegal schemes, activities. 3 Top Crooks Still Roaming Free After the Economic Crash Wall St. Cheat Sheet  The global economy and stock markets took a nose dive in 2008. But that hasnt stopped some of the biggest masterminds from escaping a day of luxury…’ The "Crimes" That Wrecked The Markets  Forbes / Lenzner  ,  SEC accused of destroying files Former agency official says SEC violated federal law by destroying records of enforcement cases in which it decided not to file charges. (Washington Post) [ Duh, ya think? The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed!     SEC destroyed documents, senator says 17 Aug 2011 The Securities and Exchange Commission may have destroyed documents and compromised enforcement case ...   Grassley: Agency may have got rid of Goldman, Madoff documents   Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) The Securities and Exchange Commission may have destroyed documents and compromised enforcement cases involving activity at large banks and hedge funds during the height of the financial crisis in 2008, according to allegations made by a lawmaker on Wednesday.    Sen. Chuck Grassley  It doesnt make sense that an agency responsible for investigations would want to get rid of potential evidence…’ [ Oh but it does make sense Sen. Grassley:   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic lawyer) is one of those typically with a pre or post arrangement, whether implicit or explicit; you know, that ubiquitous bribe thing in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by italians in the new york d.a.s office over the objection of the FBI, and were promptly dispatched/assassinated / hit by mafia / organized crime [ this was documented with authority in the book Goombata: The Improbable Rise and Fall of John Gotti and His Gang Cummings / Volkman  ]

 



Experts: Recovery might take a while If this crisis follow the pattern of similar ones, it may be one of the most difficult in U.S. history. (Washington Post) [ Duh! Ya think! Dow/Gold Ratio Lowest Since 1987 Crash   Forbes   Adrian AshToday’s gold buyers might still get to look early birds as this depression wears on… GROWTH or defense…stocks or gold? Intra-day noise aside in summer 2011, Mr.Market’s choice looks plain.

The Dow/Gold Ratio a measure of the U.S. stock markets valuation in ounces of gold has sunk as equities have plunged but gold prices have jumped so far this summer.

Dropping through 6.0 ahead of Fridays New York opening, the Dow/Gold Ratio hasnt been this low since early 1989, back when world equity markets were recovering from the Great Crash of Black Monday 1987.

http://goldnews.bullionvault.com/files/DowGoldviii11.png

That slump itself had taken the Dow/Gold Ratio all the way down to 3.6, with gold prices rising to nearly $500 per ounce as the Wall Street index sank to 1776 points. Growth, of course, was only taking a pause in late 1987 a quick breather before the real race to perfection of the late 1990s. Today, in contrast, the Dow/Gold Ratio could still go a lot further down. Or so says history.

Trading a little over its century-long average of 10.0 today, the ratio bottomed during the 1930s Great Depression at just below 2.0 ounces of gold for one Dow unit. At the nadir of the next global depression the inflationary depression of the early 1980s the Dow/Gold Ratio sank even lower, down to 1.0.

Whatever flavor of depression weve got at the start of this decade and it is a depression, as Western jobs data continue to show and as the Dow/Gold yardstick will confirm if it goes much lower (keep an eye on the underperformance of gold mining equities, too) a growing flow of private savings is choosing defense in gold bullion rather than choosing business-risk in listed stocks.

That choice might sound self-fulfilling if you work in psychiatry or government, a kind of clinical disorder open to curing with medication, zero interest rates or perhaps a third round of quantitative easing most likely aimed at risk assets, we guess, rather than the risk free Treasury bonds targeted by QE1 and QE2 and which institutional investors are all-too keen to hold anyway.

So far, however, investors choosing to buy gold only account for a tiny portion of the money fleeing equities.

From here to a true depression low in Dow/Gold (if such a level is reached), todays gold buyers will need to find many more friends. Theyd also look early-birds compared with the rush out of stocks and into gold needed to reach that 2.0 or 1.0 mark.



 

BlogPost : Jon Stewart attacks Fox 'class warfare' ...Warren Buffett (Nati Harnik/AP) After Warren Buffetts New York Times Op-ed called for a tax on the.. (Washington Post) [Ignore Buffett's Advice, Don't Buy Stocks at Forbes Bert Dohmen [ Yeah this is really good advice. As a shill for fraudulent wall street, they may have given him some stellar performances and cash to boot; but, the homespun bumpkin senile buffets analytical abilities, if ever really extant, have certainly passed the point of no return. You may recall how the clintons, with a mere $1,000 or so, were revealed as commodities trading wizards (turned into in excess of $100,000 or so), but as written up in the Wall Street Journal someone was giving them money. In fairness, that they were singled out (was) is a bit arbitrary inasmuch as thats going on all the time on wall street, and now with greater precision owing to greater computer programming capabilities, to everyone elses detriment. Remember, in a manner of speaking, there are two sides to every trade, viz., winner and loser (in relative terms).] The markets plunged going into August 8. On that day, the DJI closed with a loss of 629 points. My indicators signaled that a brief bounce would commence the next day. According to the charts, the first target for the S&P 500 was 1205. The target was hit exactly a few days later. That was followed by a renewed plunge.

I have been looking for a serious crisis to start in September. It appears that we have seen the prelude for that. The big smart money has been preparing for the past five months.You can see the distribution pattern on the charts since mid-February. The rush to the exits is now accelerating and the smart money has been selling short in large amounts.

The extreme bullish sentiment that prevailed until the latest plunge was first replaced by complacency, then by concern. However, the fear stage is still missing, except at hedge funds that were forced to sell because of margin calls. In fact, during the severe plunge in the first week of August, investment investors became even more bullish according to Investorsintelligence.com. That is not good for the markets.

The market negatives are increasing in numbers. The IPO window is now shut. There are signs that credit is once again vanishing. Loans are being called in, some companies appear to have difficulties rolling over their Commercial Paper, junk bonds yields are soaring, European banks may stop lending to each other, and the European crisis is spreading out across the globe. Its my view that this will cause another credit crisis, just as in 2008.

Whats worse is that contrary to 2008, the big players learned to read the signs from their 2008 mistakes. They are now wide awake, although in the media, their minions still repeat the same bullish fairy tale. This means that this crisis could develop much faster than the last one. (Read my book, Financial Apocalypse, which is the 2008 roadmap, one which can be used very well for what is now happening.)

The words possible recession suddenly is being mentioned a lot in the media, although economists still strongly deny that possibility. Our rule is that the stronger their denials, the more certain and the deeper the recession will be. In fact, I declared in our May 9 issue of the Wellington Letter that the recession had started.

Morgan Stanley lowered its global GDP growth forecasts for 2012 from 4.5% to 3.8%. My forecast is for 1%-2% or less. It would be negative growth except for the fudged inflation numbers.

The European politicians are not any smarter than those in the U.S. Merkel and Sarkozy had a meeting in Paris and did nothing. That day I called the outcome Disastrous for the markets. It took the markets a day to digest the consequences and then the selling avalanche started. Many of the markets in Europe, led by the banks stocks, went into virtual free falls, losing from 4%-7% in one day. Such losses indicate an approaching crisis.

Now we see some of the well-known Wall Street figures appearing in the media, telling investors all the reasons why stocks are a good buy. One appeared with a long list of bullish factors. Well, that list didnt prevent the global stock market from losing an incredible $6 trillion over the past several weeks. He did the same cheerleading on national TV in 2007 before investors lost 50% of their wealth.

Warren Buffett is also once again the cheerleader saying he is buying stocks. He did that in 2007-2008 as well, and then the meltdown started later in 2008.

I would not fall for this self-serving advice. Words cannot rescind a recession that we already have, it cannot stop the insolvency of entire countries in Europe, it cant change the fact that major profit downgrades will appear soon, and it cant stop the China crisis that is now starting.

Gold is soaring, but the mining stocks look terribly weak. There is great danger now with the gold stocks getting hit hard by less developed countries, including South Africa, to nationalize gold mines. This is too lucrative for them to resist.

I would get out of all money market funds unless they are U.S. government only.  The MMFs have big exposure to European banks. We believe that lending between banks in Europe may seize, which means that the whole structure will start shaking. You will start hearing the word contagion.

In my opinion, the danger period is approaching. What we have seen until now is just a preview. The main feature is likely to be worse.

Bert Dohmen is editor of Bert Dohmens Wellington Letter and author of Prelude To Meltdown (2007) and Financial Apocalypse (2011).




Banks still struggling, despite bailout (Washington Post) [ Yeah thats the way it is for banks in the midst of recession / depression / economic decline! The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! What changed from yesterday which warranted a more than 600 point plunge with paper stocks still over-valued and a 545 bounce off of afternoon lows? Nothing! Absolutely nothing, yet a manipulated computer-programmed churn-and-earn suckers’ rally based on fraud and b***s*** alone to keep suckers suckered, which makes for an especially great opportunity to sell / take profits since there’s much, much worse to come! Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com) [ The instant  video on the economic / financial collapse from Stansberry and Associates is so well researched  and succinctly presented  that Ive archived same on my website; also, because the facts and views presented comport with the facts and views Ive presented on my site which I believe to be correct. This is a must-view, must-see that I strongly recommend!    
The complete url:    
http://www.albertpeia.com/stansberrysinvestmentadvisory.flv  ( 146mb
approx. 1 hr. 17 min. )         http://www.albertpeia.com/stansberrysinvestmentadvisory.mp4    (  374mb  )     Written text of presentation (without pictures  / charts)]  [A lot of pre-election year obfuscation, manipulation but the debacle is already here:  Harry Dent, Jr. Economy will be in a Depression by 2011
Dow will Fall to 3,800
4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
U.S. Dollar will Decline
Housing will Decline by 40
60% from Todays Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012

 

Dollar down against major currencies Global investors are becoming antsy about the dollar’s role as the currency at the core of the world’s financial system.  (Washington Post) [  Antsy? At this point, if it was only just ‘antsy’ there’d be room to hope. Despite the understatement, this is now way beyond ‘antsy’.  Reality counts!   For first time, U.S. credit rating cut from AAA Standard & Poor’s announces that it has downgraded U.S. government debt to AA+, dealing a huge symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system. (Washington Post) [ Come on! Let’s get real here! Symbolic? If it were only that. If it were only the american political system, there’d at least be a plausible reason for hope, albeit futile even at that. Indeed, pervasively corrupt, defacto bankrupt america, literally causing destruction domestically and internationally, is a testament to the failure of the american system generally, or more specifically what it has devolved into. Whatever america was and purports to be, it certainly doesn’t take a PhD in Poli Sci to know, ‘it ain’t that no more’. Moreover, the ‘genie’s out of the bottle’ and try as they may, like ‘trying to put toothpaste back in the tube’, or ‘unringing the bell’, perceptions of america will never be the same in the most negative but realistic and factual sense; that is, beyond the propaganda, efforts at censorship, and spin. Those ‘propaganda dogs don’t hunt no more.’ I can further say that in america, by close observation and direct experience (with more than sufficient representative sampling), I’ve seen and experienced the worst of human nature; behavior so egregious so as to defy any known norms of civilized behavior. Quite simply, there is no excuse for america!   Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’  America’s shine is wearing off

 

 

The powerless president  Obama remains indecisive, and ignored, as larger forces bring down the country.  Robinson: S&P downgrades the GOP   (Washington Post) [ Riiiiight! It’s everything but ‘wobama the b’ (for b***s***) that’s to blame for the nation’s meltdown according to wobama aficionados / intractable wobama apologists, Messieurs Milbank and Robinson. Sweet Mr. Milbank even points to wobama’s personal character flaws (among many unmentioned) to exculpate the failed president wobama. Wobama’s failed miserably and yet had the easiest act in the world to follow in the persona of fellow failed president war criminal dumbya bush whose failed policies up to the real start of the election cycle he’s largely followed. After all, Mr. Robinson, how different really are the parties these days when profligate spending on illegal, unnecessary wars was continued when democrats controlled congress, and then even the executive office when continuing failed president and war criminal dumbya bush’s nation bankrupting, nation destroying war policies, protection for unprecedentedly huge wall street frauds, bush tax cut extensions for the wealthy, and then some (spending on top of it). Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.

 

 



A win for opponents of SEC’s new rules Court decision could spell trouble for the agency as it puts in place some of the most far-reaching financial regulations in years. (Washington Post) [ Oh come on! The biggest frauds in the multi-trillions have been hands off despite the campaign promises to the contrary. The u.s. courts are so corrupt, it’s doubtful they’d rule against ‘the big money’. That they don’t understand the economics / finance is irrelevant to them; as is also so of the law and the facts which they probably understand but ignore anyway. The most important consideration should be what is obvious to all; viz., that the way things were not only facilitated the fraudulent schemes that have brought down the nation, but will continue prospectively as the frauds on wall street have been emboldened by the lack of enforcement / prosecution. That said, there’s corruption thoughout the ranks of the pervasively corrupt american government.  .   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic – lawyer) is one of those typically with a ‘pre or post’ arrangement, whether implicit or explicit; you know, that ubiquitous ‘bribe thing’ in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by ‘italians’ in the new york d.a.’s office over the objection of the FBI, and were promptly ‘dispatched’/assassinated / hit by mafia / organized crime [ this was documented with authority in the book ‘Goombata: The Improbable Rise and Fall of John Gotti and His Gang’ Cummings / Volkman  Though having but 5% of the world’s population, the u.s. has 76% of the world’s serial killers,          http://www.albertpeia.com/realifeamericaserialkillers.mpg     bankrupt america also spends more on military than all the nations of the world combined... fed employees / contractors, cia, all 3 branches of u.s. gov’t, etc., are included in this evolved american trait of inherent criminality  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv  
 



Rubin: Fed to the country: the economy stinks

‘…information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up.The report adds: “The Committee now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the previous meeting and anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate.”

 (Washington Post) [ As if we didnt know and needed them to tell us. Dont forget, this pre-election year is as good as it gets; yet is as dismal as can be imagined with substantially worse to follow. Dual Mandate? Im surprised they had the audacity to use the term. The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! What changed from yesterday which warranted a more than 600 point plunge with paper stocks still over-valued and a 545 bounce off of afternoon lows? Nothing! Absolutely nothing, yet a manipulated computer-programmed churn-and-earn suckers’ rally based on fraud and b***s*** alone to keep suckers suckered, which makes for an especially great opportunity to sell / take profits since there’s much, much worse to come! Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com)

What can the Federal Reserve do? With the U.S. economy at risk of a double-dip recession, the central bank lacks tools to do anything. (Washington Post) [ Oh Id say theyve done quite enough wouldnt you? Is Bernanke Failing His Fed Mission Or Just Delusional? at Forbes Robert Barone [ How bout both! I mean, come on! This catering to fraudulent wall street was a loser ab initio! That so-called wealth effect market froth was used previously by senile maestro greenspan and failed miserably except for the frauds on wall street who commissioned up and down; and, make no mistake, those computer-programmed high-frequency trading volumes have now been maximized for nation-economy-draining profits for the frauds like never before and have never been higher. The QE and dollar-debasement policies were always predictably inflationary, ultimately hyperinflationary, particularly for stocks; that feel good obfuscation that was but in reality good only for the frauds on wall street. No, there is no modern day alchemy that spins worthless paper into gold except fraudulently for the frauds on wall street whove literally oftimes done exactly that; cashing out for hard currency and gold, precious metals, at everyone elses expense including main street. ] In his June 7 speech, Fed Chairman Ben Bernanke stated, the best way for the Federal Reserve to support the fundamental value of the dollar in the medium term is to pursue our dual mandate of maximum employment and price stability, and we will certainly do that.

.. Bernankes results .. since Ben took the reins:

Feb 06 April 11

Items in a Typical Budget

% Change

Food and Beverages

16.54%

Water and sewer and trash collection services

31.88%

Rent of primary residence

13.82%

Housing

8.68%

Fuels and Utilities

11.93%

Apparel

4.83%

Medical Care

20.11%

Gasoline (all types)

65.12%

Transportation

23.36%

Tuition, other school fees, and childcare

29.28%

Recreation

2.87%

 ..  The standard unemployment rate most often used by the Fed is currently at 9.1%, up 90% since Bernanke started.  The more inclusive (realistic) U6 number stands at 15.8%, up 75% in the same period.  The Civilian Participation Rate has declined 2.87% to 64.2%.

This is the lowest level the U.S. has seen since March, 1984.  The decline amounts to 8,946,844 fewer Americans in the labor force.  Had they not dropped out because of a lack of jobs, the official unemployment rate would be significantly higher.  While we can debate the meaning of the term maximum employment, it is clear that the jobs data has deteriorated considerably since Bernanke took the reins at the Fed.  ..

In conclusion, it is evident that Ben Bernanke is failing his mandates.  We believe it must come down to one of the following reasons:

1.       Bernanke does not know how to achieve his mandates;

2.       The policy tools employed dont work;

3.       He does not have the ability to implement policies that would work;

4.       He is not trying to achieve his mandates;

5.       He has goals other than his legal mandates;

6.       He does not look at the data, and believes he is succeeding.

Matt Marcewicz &  Robert Barone, Ph.D.

.. ‘

 

 

Obama plans to preserve federal mortgage role The president’s decision to preserve a major role for the government marks a big milestone in the effort to craft a new housing policy from the wreckage of the mortgage meltdown. (Washington Post) [ Oh yeah! You can count on the government! Whew! Close call! Nothing to worry about now with the government on the job! A win for opponents of SEC’s new rules Court decision could spell trouble for the agency as it puts in place some of the most far-reaching financial regulations in years. (Washington Post) [ Oh come on! The biggest frauds in the multi-trillions have been hands off despite the campaign promises to the contrary. The u.s. courts are so corrupt, it’s doubtful they’d rule against ‘the big money’. That they don’t understand the economics / finance is irrelevant to them; as is also so of the law and the facts which they probably understand but ignore anyway. The most important consideration should be what is obvious to all; viz., that the way things were not only facilitated the fraudulent schemes that have brought down the nation, but will continue prospectively as the frauds on wall street have been emboldened by the lack of enforcement / prosecution. That said, there’s corruption thoughout the ranks of the pervasively corrupt american government.  .   Report: SEC lawyer exposed FBI informant (WP) [ Clearly, the sec liar (sic – lawyer) is one of those typically with a ‘pre or post’ arrangement, whether implicit or explicit; you know, that ubiquitous ‘bribe thing’ in pervasively corrupt, defacto bankrupt, fallen  america. Indeed, the scenario typifies that national drain / sinkhole new york (new york / new jersey metro) where, for example, FBI informants were routinely exposed by ‘italians’ in the new york d.a.’s office over the objection of the FBI, and were promptly ‘dispatched’/assassinated / hit by mafia / organized crime [ this was documented with authority in the book ‘Goombata: The Improbable Rise and Fall of John Gotti and His Gang’ Cummings / Volkman  Though having but 5% of the world’s population, the u.s. has 76% of the world’s serial killers,          http://www.albertpeia.com/realifeamericaserialkillers.mpg     bankrupt america also spends more on military than all the nations of the world combined... fed employees / contractors, cia, all 3 branches of u.s. gov’t, etc., are included in this evolved american trait of inherent criminality  http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv  
 

 

Poll: Sharp dissatisfaction with D.C. The public doubts the government can fix the nation’s economic problems, Post poll shows. An unlikely landlord: Uncle Sam  (Washington Post) [ No surprise there (the doubts)!  Uncle Scam as landlord? Sounds like a typical scam / fiasco / debacle in the making! Add limey (brits)-looking (green) frogs (french) to the mix(ed up) in the pervasively corrupt defacto bankrupt disunited states   Italy unveils plan to calm fears of escalating crisis  (Washington Post) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europe’s debt crisis threatens Italy (WP) [ Yeah, dem’ darn PIIGS.  Reminds me of that joke (I won’t repeat it here except the punch line): ‘That’s black bart’s girl’.  Pelosi: ‘We are not Greece’  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobama’s got a boehner … so not to be so hard on them; if pelosi says it, it must be true … Not! …Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the same’s wobama’s ‘far-reaching plan on debt’, we all know ‘wobama the b’ (for b***s***) is total b***s*** which means like Greecey PIIGS they’ll be back to the trough for more … slop … py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake gov’t data / reports owing to political desperation

 

 

Economy central as Obama starts tour With some of his harshest words yet, president criticizes GOP candidates on taxes, debt. (Washington Post) [ The eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Is Obama’s fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Let’s just say the fate of ‘wobama the b’ (for b***s***) is written, period. Quite simply, he’s done! Here’s a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . ‘Don’t cry for him new argentina, the truth is he really screwed you’ … well you know that familiar theme and can ad lib, insert your own words! 
It’s still Obama’s party Why he won’t face a primary challenge: Republicans and racial politics. (Washington Post) [  It’s true … so right you are! Al Gore’s even pitchin’ in by donating the talents of his long lost secret love child, ‘Leslie Gore’ to pen and sing a song in wobama’s honor (kidding) which goes something like this , ‘It’s his party and he’ll cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you …  Well, there you go … if the song says it it must be true. Yeah! And those dern republicans and their racial politics … UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...
ignore cases that involve black defendants and white victims' – Time to get whitey, at last, at last, etc., say holder / wobama who go on to say ‘and they ain’t talking about Whitey Bulger, the mobster, either!’


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 

 

Robinson: Obama won the Iowa Straw Poll  (Washington Post) [ Oh riiiiight! What, on the theory that so long as you don’t hear wobama the b’s (for b***s***) words which invariably belie his actions or non-actions, it’ a victory for wobama? I don’t think so; nor does the overwhelming, including the unpolled, majority! Is Obama’s fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Let’s just say the fate of ‘wobama the b’ (for b***s***) is written, period. Quite simply, he’s done! Here’s a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . ‘Don’t cry for him new argentina, the truth is he really screwed you’ … well you know that familiar theme and can ad lib, insert your own words! 
It’s still Obama’s party Why he won’t face a primary challenge: Republicans and racial politics. (Washington Post) [  It’s true … so right you are! Al Gore’s even pitchin’ in by donating the talents of his long lost secret love child, ‘Leslie Gore’ to pen and sing a song in wobama’s honor (kidding) which goes something like this , ‘It’s his party and he’ll cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you …  Well, there you go … if the song says it it must be true. Yeah! And those dern republicans and their racial politics … UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...
ignore cases that involve black defendants and white victims' – Time to get whitey, at last, at last, etc., say holder / wobama who go on to say ‘and they ain’t talking about Whitey Bulger, the mobster, either!’   The powerless president  Obama remains indecisive, and ignored, as larger forces bring down the country.  Robinson: S&P downgrades the GOP   (Washington Post) [ Riiiiight! It’s everything but ‘wobama the b’ (for b***s***) that’s to blame for the nation’s meltdown according to wobama aficionados / intractable wobama apologists, Messieurs Milbank and Robinson. Sweet Mr. Milbank even points to wobama’s personal character flaws (among many unmentioned) to exculpate the failed president wobama. Wobama’s failed miserably and yet had the easiest act in the world to follow in the persona of fellow failed president war criminal dumbya bush whose failed policies up to the real start of the election cycle he’s largely followed. After all, Mr. Robinson, how different really are the parties these days when profligate spending on illegal, unnecessary wars was continued when democrats controlled congress, and then even the executive office when continuing failed president and war criminal dumbya bush’s nation bankrupting, nation destroying war policies, protection for unprecedentedly huge wall street frauds, bush tax cut extensions for the wealthy, and then some (spending on top of it). Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobamas actions had not belied his words/campaign promises, the nations position, though still ominous, would have been substantially improved.

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf      


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 




Is Obamas fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Lets just say the fate of wobama the b (for b***s***) is written, period. Quite simply, hes done! Heres a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . Dont cry for him new argentina, the truth is he really screwed you well you know that familiar theme and can ad lib, insert your own words! 
Its still Obamas party Why he won
t face a primary challenge: Republicans and racial politics. (Washington Post) [  Its true so right you are! Al Gores even pitchin in by donating the talents of his long lost secret love child, Leslie Gore to pen and sing a song in wobamas honor (kidding) which goes something like this , Its his party and hell cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you   Well, there you go if the song says it it must be true. Yeah! And those dern republicans and their racial politics UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims' Time to get whitey, at last, at last, etc., say holder / wobama who go on to say and they aint talking about Whitey Bulger, the mobster, either!

Postal Service seeking 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think its a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable:  October 15, 2010 (*see infra {ultimately delivered by UPS})


SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!

 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Here’s some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

 

 

Sincerely and Regards,

 

Al Peia



 

Show us your debt plan A challenge to the president, his opponents — and you. (Washington Post) [ Come on! This is disingenuously rhetorical. At the least, you look at reality. Pervasively corrupt, defacto bankrupt america’s growth days (and hence those rosy assumptions) are gone forever. Second, you begin with the amount that must be cut to avoid further dollar debasement among other obfuscating gimmicks which worsen the dismal scenario ($3 trillion over 10 years doesn’t come close to doing it). Thirdly, those responsible must be held accountable (and meaningful law must count for all!).    8 More Reasons Why You Should Be Deeply Concerned That The U.S. Government Has Lost Its AAA Credit Rating The Economic Collapse ‘…  #8 The U.S. national debt continues to get worse by the day.  Just check out what economics professor Laurence J. Kotlikoff recently told NPR….“If you add up all the promises that have been made for spending obligations, including defense expenditures, and you subtract all the taxes that we expect to collect, the difference is $211 trillion. That’s the fiscal gap” ..’ Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Davis ‘This is how we pay off our current debts and I think bondholders are simply happy to get anything out of a country that admits it owes $15Tn (1/4 of global GDP) but probably owes closer to $60Tn (entire global GDP) in the form of unfunded liabilities. The funniest thing about this (and you have to laugh) is to see Conservative pundits get on TV and talk about how we need to cut $100Bn worth of discretionary spending to "fix" this (while continuing to spend $1Tn on the military and $1Tn on tax cuts for the top 1% each year). There is no fixing this and even a Republican said you can’t fool all of the people all of the time. THIS HOUSE OF CARDS IS TEETERING FOLKS – PLEASE BE CAREFUL OUT THERE! ‘  Dave's Daily  'If you can keep interest rates this low this long, its inevitable cheap financing can allow companies to start cobbling each other up. Further Ben's policies allow companies like IBM to sell bonds at 1% and buy back shares with the proceeds (total paper bubble-scam). POMO is occurring almost daily and Primary Dealers can buy back their shares and pay dividends with what essentially is taxpayer money-- Why The Dow Will Plunge To 7,000 By 24/7 Wall St.   S&P Poised For Dropoff, Says Initial Jobless Claims  Forbes / Maureen Farrell   

 

 

Markets begin week on calmer note The positive results showed that the markets may be able to hang on to their gains. (Washington Post) [  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! So what’s changed of significance (other than the full moon and consequent effects on the lunatic wall street frauds Train Reading: The Stock Market Is Insane The Wall Street Journal  ). Nothing!  Stocks rally on bad news, fraud, and b***s*** alone! 3 Reasons Markets Finished Up For the Third Straight Day Wall St. Cheat Sheet  1) U.S. economic data. According to the National Association of Home Builders, builder confidence in the market for newly built, single-family homes – the National Association of Home Builders/Wells Fargo Housing Market Index – was unchanged in August at a low level of 15. Also being reported today was an assessment of New York-area manufacturing activity, which declined for the third consecutive month and fell short of economists’ expectations.. 2) Japan. [Come on ... If the ‘meltdown’ proved anything it’s that Japan’s as bad as america in dealing with and reporting reality.]  Japan’s  economy contracted less than expected in the second quarter, despite a huge blow to industry and production dealt by the March 11 earthquake and tsunami. Gross domestic product declined at an annualized rate of 1.3% in the quarter ending June 30. Economists had forecast a 2.5% decline.. 3) Crude futures. After tumbling considerably over the past few weeks, crude-oil futures began to recover today. Crude for September delivery climbed roughly 3% today on the New York Mercantile Exchange, giving energy stocks a boost. Exxon Mobil , BP , Marathon , and Chevron all gained over 3% today …’ In a Downtrend, Sell a Rally (Daily FX)    Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    ‘Aftershock’ Book Predicts Economic Disaster Amid Controversy    Disturbing Charts Show Economic Meltdown in 2012. See the Evidence. (Newsmax.com)   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC.com  

 

 

Europe’s crisis and the psychology of fear   (Washington Post) [ Given the reality and magnitude of Europe’s problems going forward, dwarfed only by the magnitude of those of pervasively corrupt, defacto bankrupt america, it brings to mind the words of the former Intel CEO (co-founder) Andy Grove ‘ Only the paranoid survive’ (of course, having survived the Nazis and escaped Communist-controlled Hungary in Europe, as a jew, one has to assume his perspective / outlook was somewhat ‘skewed’ thereby). Yet, let’s not kid ourselves to the point where virtual survival is threatened and at stake as is so for the EU. America isn’t alone in the downgrade spiral  (WP) Indeed, the EU has followed the contra-indicated perma war, evermore worthless Weimar currency, and a predispositon / tacit acceptance of paper securities schemes / scams / frauds which are integral to america’s ongoing, albeit obfuscated, debacle / crisis which given the unfunded debt load pegged at $211 Trillion among other estimates, is insurmountable and will end quite badly.  Poll: Sharp dissatisfaction with D.C. The public doubts the government can fix the nation’s economic problems, Post poll shows. An unlikely landlord: Uncle Sam  (WP) [ No surprise there (the doubts)!  Uncle Scam as landlord? Sounds like a typical scam / fiasco / debacle in the making! Add limey (brits)-looking (green) frogs (french) to the mix(ed up) in the pervasively corrupt defacto bankrupt disunited states   Italy unveils plan to calm fears of escalating crisis  (WP) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europe’s debt crisis threatens Italy (WP) [ Yeah, dem’ darn PIIGS.  Reminds me of that joke (I won’t repeat it here except the punch line): ‘That’s black bart’s girl’.  Pelosi: ‘We are not Greece’  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobama’s got a boehner … so not to be so hard on them; if pelosi says it, it must be true … Not! …Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the same’s wobama’s ‘far-reaching plan on debt’, we all know ‘wobama the b’ (for b***s***) is total b***s*** which means like Greecey PIIGS they’ll be back to the trough for more … slop … py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake gov’t data / reports owing to political desperation! Why You Shouldn't Buy Into This Plunge Forbes/O'Neil‘The market is building momentum to the downside’.   Wall Street closes worst week since '08 with wild day NEW YORK (Reuters) S&P on U.S. downgrade: Debt pact 'falls short' - Reuters  S&P downgrades US credit rating from AAA   S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet    What Recovery? Forbes   ‘…we can’t call this a recovery. There’s no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. And while we’re at it, we can’t ignore increasing sovereign debt problems in Europe…’  Top 3 Reasons Markets Erased the Year’s Gains Wall St. Cheat Sheet  1) Japan and Europe 2) Unemployment.3) Capital goods - billions of dollars in lost revenue. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis… My work shows that “the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER)… However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher.



Krauthammer: Our political system is working well  (Washington Post) [ Wow! There was a time back in the late sixties, early seventies when there were these long-haired people chastised by the so-called ‘establishment’ that would have just loved to be doin’ whatever it is that Mr. Krauthammer’s been doing to arrive at such a conclusion, so glaringly devoid of any reality whatsoever. Psychedelics, hallucinogens, magic mushrooms; what could it be that has brought Mr. Krauthammer into this fantasy world where even ‘Alice’ of Wonderland fame might feel comfortable in this netherland (sic) / netherworld created from the depths of Mr. Krauthammer’s imagination. I’m truly at a loss for words. After all, the warning by the underrated but great President General Eisenhower of the impending inherent danger of the military industrial complex came to fruition with the assassination of JFK and the reality of a coup d’etat thereby. All presidents, along with the two remaining branches of the pervasively corrupt, defacto bankrupt american government since have been at best stooges for such as the military industrial complex, the banksters / frauds on wall street, etc., to the substantial detriment of the vast majority in this country and throughout the world (ie., perma wars, huge securities frauds still extant / now marked to anything as per congressional FASB rule change, and unprosecuted. Beyond the immediate reach, or at least ‘penetration’ of american propaganda, an intelligent and astute individual, Legendary Investor Jeremy Grantham: America is a Banana Republic Washington’s Blog | Just different bananas perhaps? { Of course this is absolutely true! And not just from the meaningfully lawless perspective – I had made such a statement on the record in a LA Superior Court Appellate Dept. proceeding in which said court literally ignored the law (the same is true of the costly, plushly accoutered lifetime appointee federal courts) which courts should indeed be abolished in these difficult economic / budgetary times. Additionally, from pervasive corruption, to debased over-printed currency, to gunboat diplomacy, to total incompetence, etc., america is indeed a banana republic at most. }    I didn’t see the debates {what does it matter what they say – the egregious ‘wobama the b’ (for b***s***) fatigue factor / experience} nor have I read Mr. Robinson’s article, ‘GOP Debate Land’ but I’m sure I’d agree with his conclusion,  ‘I didn’t recognize the America the GOP candidates described;’ but unfortunately, I do recognize the pervasively corrupt, defacto bankrupt america of ‘wobama the b’ (for b***s***), failed president like his predecessor, moron war criminal dumbya bush, that he is. The powerless president  Obama remains indecisive, and ignored, as larger forces bring down the country.  Robinson: S&P downgrades the GOP   (WP) [ Riiiiight! It’s everything but ‘wobama the b’ (for b***s***) that’s to blame for the nation’s meltdown according to wobama aficionados / intractable wobama apologists, Messieurs Milbank and Robinson. Sweet Mr. Milbank even points to wobama’s personal character flaws (among many unmentioned) to exculpate the failed president wobama. Wobama’s failed miserably and yet had the easiest act in the world to follow in the persona of fellow failed president war criminal dumbya bush whose failed policies up to the real start of the election cycle he’s largely followed. After all, Mr. Robinson, how different really are the parties these days when profligate spending on illegal, unnecessary wars was continued when democrats controlled congress, and then even the executive office when continuing failed president and war criminal dumbya bush’s nation bankrupting, nation destroying war policies, protection for unprecedentedly huge wall street frauds, bush tax cut extensions for the wealthy, and then some (spending on top of it).
Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobama’s actions had not belied his words/campaign promises, the nation’s position, though still ominous, would have been substantially improved.



Poll: Sharp dissatisfaction with D.C. The public doubts the government can fix the nations economic problems, Post poll shows. An unlikely landlord: Uncle Sam  (Washington Post) [ No surprise there (the doubts)!  Uncle as landlord? Sounds like a typical scam / fiasco / debacle in the making! Add limey (brits)-looking (green) frogs (french) to the mix(ed up) in the pervasively corrupt defacto bankrupt disunited states   Italy unveils plan to calm fears of escalating crisis  (Washington Post) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europes debt crisis threatens Italy (WP) [ Yeah, dem darn PIIGS.  Reminds me of that joke (I wont repeat it here except the punch line): Thats black barts girl.  Pelosi: We are not Greece  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobamas got a boehner so not to be so hard on them; if pelosi says it, it must be true Not! Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the sames wobamas far-reaching plan on debt, we all know wobama the b (for b***s***) is total b***s*** which means like Greecey PIIGS theyll be back to the trough for more slop py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimcos Bill Gross told CNBC Monday.  Maierhofer: USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake govt data / reports owing to political desperation! Why You Shouldn't Buy Into This Plunge Forbes/O'NeilThe market is building momentum to the downside.   Wall Street closes worst week since '08 with wild day NEW YORK (Reuters) S&P on U.S. downgrade: Debt pact 'falls short' - Reuters  S&P downgrades US credit rating from AAA   S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet    What Recovery? Forbes   ‘…we cant call this a recovery. Theres no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. And while were at it, we cant ignore increasing sovereign debt problems in Europe…’  Top 3 Reasons Markets Erased the Years Gains Wall St. Cheat Sheet  1) Japan and Europe 2) Unemployment.3) Capital goods - billions of dollars in lost revenue. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen  In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis My work shows that the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER) However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as growth, is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, its never been higher.

European economies brace as Germany slows Discouraging news about the pace of growth came just hours before German and French leaders called for new steps to impose discipline on governments whose lax budget practices prompted the debt crisis. (Washington Post) [ First, let’s call this economic scenario what it is; viz., the ‘d’ word … ‘depression’. For those who find that term unutterable, then ‘double-dip recession’ is the term for you. All the dollar debasement (over-printing, etc.) for the benefit of the frauds on wall street et als to the substantial detriment of everyone else can’t change and has exacerbated and obfuscated this fact. Moreover, there has been a manipulated churn-and-earn high-frequency trading bubble-bull cycle in what is unmistakably a secular bear market.   Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com) ‘Robert Wiedemer’s new book, “Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown,” quickly is becoming the survival guide for the 21st century. And Newsmax’s eye-opening Aftershock Survival Summit video, with exclusive interviews and prophetic predictions, already has affected millions around the world — but not without ruffling a few feathers.    [ The instant  video on the economic / financial collapse from Stansberry and Associates is so well researched  and succinctly presented  that I’ve archived same on my website; also, because the facts and views presented comport with the facts and views I’ve presented on my site which I believe to be correct. This is a must-view, must-see that I strongly recommend!    
The complete url:     http://www.albertpeia.com/stansberrysinvestmentadvisory.flv )         http://www.albertpeia.com/stansberrysinvestmentadvisory.mp4    Written text of presentation (without pictures  / charts)]  [A lot of pre-election year obfuscation, manipulation but the debacle is already here:  Harry Dent, Jr. Economy will be in a Depression by 2011
Dow will Fall to 3,800 – 4,500 by 2012
Nasdaq will Fall Below 1,100, its 2002 low, by late 2010 or mid-2012 at the latest.
U.S. Dollar will Decline
Housing will Decline by 40 – 60% from Today’s Levels
Greatest Economic and Banking Crisis since the 1930s will Occur Between 2010 and 2012).
   Forecasts from Dent, Napier, and then Prechter: Depression is Imminent The Dow Jones Industrial Average will go down to at least 1000, most likely to below 777 which was the starting point of its mania back in August 1982, and quite likely drop below 400 at one or more times during the bear market.

 

 

Make way for the super bundlers  The 2010 elections saw the rise of Super PACs. In 2012 it will be a new breed of fundraisers. (Washington Post) [ Super bundlers? If Mr. Eggen had said facilitators for the super bunglers, I would have recognized what he meant. But, super bundlers immediately brings to mind another kind of fraud / scam, viz., those bundled toxic asset worthless paper securities things so lucratively popularized by the frauds on wall street with the blessing of their amen corner in Washington to the detriment of this and other nations and particularly this nations taxpayers / middleclass whove been decimated. If he had called them what they more realistically are, viz., visible slush funds for those visible invisible quid pro quo / bribe schemes, welfare of the nation be damned, I indeed would have known what I think he meant.  Is Obamas fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Lets just say the fate of wobama the b (for b***s***) is written, period. Quite simply, hes done! Heres a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . Dont cry for him new argentina, the truth is he really screwed you well you know that familiar theme and can ad lib, insert your own words! 
Its still Obamas party Why he won
t face a primary challenge: Republicans and racial politics. (Washington Post) [  Its true so right you are! Al Gores even pitchin in by donating the talents of his long lost secret love child, Leslie Gore to pen and sing a song in wobamas honor (kidding) which goes something like this , Its his party and hell cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you   Well, there you go if the song says it it must be true. Yeah! And those dern republicans and their racial politics UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims' Time to get whitey, at last, at last, etc., say holder / wobama who go on to say and they aint talking about Whitey Bulger, the mobster, either!

Postal Service seeking 20 percent staff cut EXCLUSIVE | In cost-cutting bid, USPS also proposes withdrawing employees from existing health and retirement plans and creating its own benefit programs. Congress would need to sign off. (Washington Post) [ I think its a great idea. Indeed, 50% would be substantially better. Even better yet, UPS should take over their entire operation. After all, UPS is well managed and efficient; and also, very reliable. On the other hand, the USPS is poorly managed, inefficient, and very unreliable:  October 15, 2010 (*see infra {ultimately delivered by UPS})


SHARE YOUR OPINION ON THE DEBT LIMIT
Dear Congresswoman Roybal-Allard:

The following is my comment to an LA Times article regarding a Justice Department cover-up! As for your inquiry, all I think about day and night is a long overdue resolution to the RICO litigation as set forth therein:

ATF Chief Melson:Justice Department trying to shield officials (LATimes) Serrano

 

I believe him!

 I truly empathize with the ATF in terms of government cover-ups, notably by even the DOJ. You’ll recognize some familiar names (ie., Alito, Trump, Freeh (Louis Freeh now has dual citizenship with Italy), and some familiar crimes (ie., drug money laundering, etc. – real cash cow for gov’t ops, bribes, etc.). [Did you know this about the following ATF Agents who were probably viewed as loose ends: Steve Willis, Robert Williams, Todd McKeahan & Conway LeBleu:   Died February 28, 1993 by gunfire at Waco. All four were examined by a pathologist and died from identical wounds to the left temple. All four had been body guards for Bill Clinton, three while campaigning for President and when he was Governor of Arkansas.They also were the ONLY 4 BATF agents killed at Waco. ]

 

 

 

Here’s some real, complicit cover-up / fraud on the part of the federal government, et als:

 

October 15, 2010 (*see infra {ultimately delivered by UPS})

 

 

Steven M. Martinez, Assistant Director In Charge
Federal Bureau of Investigation, USDOJ
11000 Wilshire Blvd., Suite 1700

Los Angeles, CA 90024

 

 

Dear Sir:

 

I enclose herewith 3 copies of the within DVD rom autorun disk (which will open in your computer’s browser) as per your office’s request as made this day (the disk and contents have been scanned by Avast, McAfee, and Norton which I’ve installed on my computer to prevent viral attacks / infection and are without threat). I also include 1 copy of the DVD as filed with the subject court as referenced therein (which files are also included on the aforesaid 3 disks in a separate folder named ‘112208opocoan’). The (civil) RICO action (as you’re aware, the RICO Act is a criminal statute which provides a civil remedy, including treble damages and attorney fees, as an incentive for private prosecution of said claims probably owing to the fact that the USDOJ seems somewhat overwhelmed and in need of such assistance given the seriousness and prevalence of said violations of law which have a corrupting influence on the process, and which corruption is pervasive). A grievance complaint against Coan was also filed concurrently with the subject action and held in abeyance pending resolution of the action which was illegally dismissed without any supporting law and in contravention of the Order of The Honorable Robert N. Chatigny, Chief Judge, USDC, District Connecticut. The files below the horizontal rule are the referenced documents as filed. (Owing to the damage to the financial interests of both the U.S. and the District of Congresswoman Roybal-Allard, viz., Los Angeles, the Qui Tam provisions of the Federal False Claims Act probably would apply and I would absent resolution seek to refer the within to a firm with expertise in that area of the law with which I am not familiar).

 

 

The document in 5 pages under penalty of perjury I was asked to forward to the FBI office in New Haven is probably the best and most concise summary of the case  RICO Summary to FBI Under Penalty of Perjury at Their Request (5 pages)      [  ricosummarytoFBIunderpenaltyofperjury.pdf   http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf          ].

 

 

The correspondence I received from the Congresswoman by way of email attachment (apparent but typical problem with my mail) along with my response thereto is included on the 3 disks as     fbicorrespondencereyes.htm     .   With regard to the calls to the FBI’s LA and New Haven, CT offices: There was one call to the LA office and I was referred to the Long Beach, CA office where I personally met with FBI Agent Jeff Hayes to whom I gave probative evidentiary documents of the money laundering which he confirmed as indicative of same (he was transferred from said office within approximately a month of said meeting and his location was not disclosed to me upon inquiry). The matter was assigned to FBI Agent Ron Barndollar and we remained in touch for in excess of a decade until he abruptly retired (our last conversation prior to his retirement related to the case and parenthetically, Rudy Giuliani whose father I stated had been an enforcer for the mob to which he registered disbelief and requested I prove it, which I did – he served 12 years in prison, aggravated assault/manslaughter? – and no, there is no Chinese wall of separation – Andrew Maloney’s the one that prosecuted gotti).

 

 

In contradistinction to the statement in said correspondence, there is a plethora of information including evidence supporting the claims set forth in the    RICO VERIFIED COMPLAINT    (see infra). Such includes and as set forth in the case, inter alia,

 

 

 

 

There is applicable insurance / surety coverage and neither LA, nor creditors, nor I should continue to have been damaged by this brazened corrupt and illegal scenario, which should be resolved in accordance with the meaningful rules of law apposite thereto.

 

 

Sincerely,

 

 

Albert L. Peia

611 E. 5th Street, #404

Los Angeles, CA 90013

(213) 219-**** (cell phone)

(213) 622-3745 (listed land line but there are unresolved problems with the line, computer connection may be the reason but I hesitate to chance greater non-performance / worsening by their ‘fix’ so cell phone best for contact).{recent change 323-786-6651 -magic jack}

 

 

                       ----------

 

*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. (Ultimately delivered by UPS) ]

 

 

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 


http://www.albertpeia.com 

 

 

 

Sincerely and Regards,

 

Al Peia

 

 

The new Manchurian candidate The sad facts behind Rick Perry’s Texas ‘miracle’. (Washington Post) [ I haven’t looked too closely at this yet. After all, bushed of bushes and then there was johnson who’ve really done enough damage to warrant looking askance. Yet, there’s Ross Perot (not running) and Ron Paul; and of course, the great but substantially underrated President General Eisenhower was born there though raised in Kansas. To his credit, he’s railed against the incompetent wall street fraud oriented fed though one must still say of same, better late than never. It’s that bushie / johnson war thing that gives pause. Then there’s the gore / lieberman / nafta / now / bilderberg connection … what’s up with that? (to quote Keenan Thompson of SNL fame). Then there’s the Austin, Texas – based infowars.com / prisonplanet.com / Jone contingent who remain unconvinced:  Tell Rick Perry that there was NO ‘Texas Miracle’ Len Hart | The only pockets lined by GOP largesse (pork) are the pockets of an increasingly tiny ruling elite now just 1 percent of the total US population. Rick Perry’s Campaign Strategy: Become Ron Paul Steve Watson | Texas Governor promotes fiscal responsibility while his own state sits on a $13.4 billion deficit.

 

 

 

 

Stocks end 3-day rally U.S. stocks fall after a weak growth report in Europe rekindled fears about a global economic slowdown. (Washington Post) [ Let’s not kid ourselves, if it’s ‘not happening’ in Germany, it’s not happening; b***s***, spin, and politicking aside. Japan’s numbers, bad as they were, are too americanized to be believed and pervasively corrupt, defacto bankrupt american numbers are just plain ‘american’ (which if you’re not paying attention, is very negative.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! So what’s changed of significance (other than previous full moon and consequent effects on the lunatic wall street frauds Train Reading: The Stock Market Is Insane The Wall Street Journal  ). Nothing!  Stocks rally off lows on bad news, fraud, and b***s*** alone!   There's A Recession Coming According To The Data at Forbes  ,   Dell braces investors for a bumpy road 16 Aug 2011 Dell makes a case on why it can better weather an upcoming storm,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    ‘Aftershock’ Book Predicts Economic Disaster Amid Controversy    Disturbing Charts Show Economic Meltdown in 2012. See the Evidence. (Newsmax.com)   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC.com   Absolutely nothing, yet a manipulated computer-programmed ( high frequency trading bots ) churn-and-earn suckers’ rally based on desperation, fraud and b***s*** alone (ie., backward looking, ‘revisions’, faked data, etc.) to keep suckers suckered, which makes for an especially great opportunity to sell / take profits since there’s much, much worse to come

 

 

Perry attack puts pressure on Fed ANALYSIS | The central bank is supposed to make its decisions based on economics, not politics. Perry takes aim at Bernanke   (Washington Post) [ When youre right, youre right. Cant take that away from him. What can the Federal Reserve do? With the U.S. economy at risk of a double-dip recession, the central bank lacks tools to do anything. (Washington Post) [ Oh Id say theyve done quite enough wouldnt you? Is Bernanke Failing His Fed Mission Or Just Delusional? at Forbes Robert Barone [ How bout both! I mean, come on! This catering to fraudulent wall street was a loser ab initio! That so-called wealth effect market froth was used previously by senile maestro greenspan and failed miserably except for the frauds on wall street who commissioned up and down; and, make no mistake, those computer-programmed high-frequency trading volumes have now been maximized for nation-economy-draining profits for the frauds like never before and have never been higher. The QE and dollar-debasement policies were always predictably inflationary, ultimately hyperinflationary, particularly for stocks; that feel good obfuscation that was but in reality good only for the frauds on wall street. No, there is no modern day alchemy that spins worthless paper into gold except fraudulently for the frauds on wall street whove literally oftimes done exactly that; cashing out for hard currency and gold, precious metals, at everyone elses expense including main street. ] In his June 7 speech, Fed Chairman Ben Bernanke stated, the best way for the Federal Reserve to support the fundamental value of the dollar in the medium term is to pursue our dual mandate of maximum employment and price stability, and we will certainly do that.

.. Bernankes results .. since Ben took the reins:

Feb 06 April 11

Items in a Typical Budget

% Change

Food and Beverages

16.54%

Water and sewer and trash collection services

31.88%

Rent of primary residence

13.82%

Housing

8.68%

Fuels and Utilities

11.93%

Apparel

4.83%

Medical Care

20.11%

Gasoline (all types)

65.12%

Transportation

23.36%

Tuition, other school fees, and childcare

29.28%

Recreation

2.87%

 ..  The standard unemployment rate most often used by the Fed is currently at 9.1%, up 90% since Bernanke started.  The more inclusive (realistic) U6 number stands at 15.8%, up 75% in the same period.  The Civilian Participation Rate has declined 2.87% to 64.2%.

This is the lowest level the U.S. has seen since March, 1984.  The decline amounts to 8,946,844 fewer Americans in the labor force.  Had they not dropped out because of a lack of jobs, the official unemployment rate would be significantly higher.  While we can debate the meaning of the term maximum employment, it is clear that the jobs data has deteriorated considerably since Bernanke took the reins at the Fed.  ..

In conclusion, it is evident that Ben Bernanke is failing his mandates.  We believe it must come down to one of the following reasons:

1.       Bernanke does not know how to achieve his mandates;

2.       The policy tools employed dont work;

3.       He does not have the ability to implement policies that would work;

4.       He is not trying to achieve his mandates;

5.       He has goals other than his legal mandates;

6.       He does not look at the data, and believes he is succeeding.

Matt Marcewicz &  Robert Barone, Ph.D... ‘




Market plunge reawakens recession fears Bleak numbers for U.S. jobs, housing and manufacturing compounded the anxiety over European woes, sparking a market sell-off and wiping out the major U.S. indexes’ gains from earlier this week. (Washington Post) [ The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! Train Reading: The Stock Market Is Insane The Wall Street Journal  Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed ‘A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    Famed economist predicts economic calamity in 2012. See the evidence.Newsmax http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com)   Five Reason Stocks Are Crashing, Tips to Prepare for Meltdown (Moneynews) Unthinkable Poised to Happen on Wall Street. See Disturbing Charts. (Newsmax.com)  US Recession Is Guaranteed: Expert CNBC]

 



Obama issues first explicit call for Syrian president to resign The rhetorical escalation was backed by sanctions designed to undermine military operations. (Washington Post) [ The reply: right after you wobama for gross incompetence, for harboring war criminals bush and cheney et als, for unconstitutional exercise of war powers alluded to by congressional members, for fraud in the inducement and factum (false campaign statements/promises), and as soon as you return that ridiculous thing called the ‘nobel peace prize’ belied by your actions, etc.. Come on! Who takes this clown, ‘wobama the b’ (for b***s***), seriously. He’s a total joke and totally pathetic at once!  Robinson: Obama won the Iowa Straw Poll  (Washington Post) [ Oh riiiiight! What, on the theory that so long as you don’t hear wobama the b’s (for b***s***) words which invariably belie his actions or non-actions, it’ a victory for wobama? I don’t think so; nor does the overwhelming, including the unpolled, majority! Is Obama’s fate written in numbers? Recent economic data amounts to a formidable headwind for any incumbent president hoping for a second term. And Democrats worry time is running out. (Washington Post) [ Let’s just say the fate of ‘wobama the b’ (for b***s***) is written, period. Quite simply, he’s done! Here’s a picture of obama voters / backers: http://www.albertpeia.com/wobamavoters.gif  . ‘Don’t cry for him new argentina, the truth is he really screwed you’ … well you know that familiar theme and can ad lib, insert your own words! 
It’s still Obama’s party Why he won’t face a primary challenge: Republicans and racial politics. (Washington Post) [  It’s true … so right you are! Al Gore’s even pitchin’ in by donating the talents of his long lost secret love child, ‘Leslie Gore’ to pen and sing a song in wobama’s honor (kidding) which goes something like this , ‘It’s his party and he’ll cry if he wants to, cry if he wants to, cry if he wants to, you would cry too, if obama happened  to you …  Well, there you go … if the song says it it must be true. Yeah! And those dern republicans and their racial politics … UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...
ignore cases that involve black defendants and white victims' – Time to get whitey, at last, at last, etc., say holder / wobama who go on to say ‘and they ain’t talking about Whitey Bulger, the mobster, either!’   The powerless president  Obama remains indecisive, and ignored, as larger forces bring down the country.  Robinson: S&P downgrades the GOP   (Washington Post) [ Riiiiight! It’s everything but ‘wobama the b’ (for b***s***) that’s to blame for the nation’s meltdown according to wobama aficionados / intractable wobama apologists, Messieurs Milbank and Robinson. Sweet Mr. Milbank even points to wobama’s personal character flaws (among many unmentioned) to exculpate the failed president wobama. Wobama’s failed miserably and yet had the easiest act in the world to follow in the persona of fellow failed president war criminal dumbya bush whose failed policies up to the real start of the election cycle he’s largely followed. After all, Mr. Robinson, how different really are the parties these days when profligate spending on illegal, unnecessary wars was continued when democrats controlled congress, and then even the executive office when continuing failed president and war criminal dumbya bush’s nation bankrupting, nation destroying war policies, protection for unprecedentedly huge wall street frauds, bush tax cut extensions for the wealthy, and then some (spending on top of it). Details of Obama’s jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for ‘wobama the b’ (for b***s***), the eternal campaign(er) … he’s got a ‘good rap’ … that rapper ‘wobama the b’ (for b***s***).  Really! He’s a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him … maybe he’s somewhat of an allure as in a freak show. He’s a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as ‘bush failure 3’. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they don’t pressure President Obama because he is loved by black voters.  Obama ‘Takes More Vacations Than Any Human Being I’ve Ever Seen’ Fox News | “Here we have a country that really is going to hell in a handbasket.” Bus Tour Bust: Obama’s Approval Plummets Back Into 30s, Says Gallup CNS News | Obama’s politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

Drudgereport: BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ]New low of 26% approve of Obama on economy...
Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...
OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

 

Even that italian, belafonte, isn’t buying ‘wobama brand(ed)’:

 

Drudgereport: HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...      

Most importantly, realize that if wobamas actions had not belied his words/campaign promises, the nations position, though still ominous, would have been substantially improved.

http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf       http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm        Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog / the grim economic reality   [  http://albertpeia.com/grimreality.htm           

CRIME STATS(u.s.No.1)

Rank  

Countries 

Amount 

 

# 1  

United States:

11,877,218 

 

# 2  

United Kingdom:

6,523,706 

 

# 3  

Germany:

6,507,394 

 

UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...      ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.        


THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    

 

 



Democrats strike back on taxes Obama and others are gambling that voters will see GOP’s stance as recalcitrant and out-of-touch. (Washington Post) [ Ooooh! ‘The Empire Strikes Back’! They’ve done it again! Brilliant political gambit! Checkmate in 2 … 012 … NOT! … Come on! While perma-war/wall-street-fraud-etc.-lovin’ republicans, as democrats, are complicit in this mess called pervasively corrupt, defacto bankrupt disunited states of america, recalcitrance and out-of-touch is hardly the exclusive province of one party or the other which have in large measure morphed into one conglomeration of venality, self-interest, crime, incompetence and corruption. Actions, not words, count! Results count! How ‘bout recounting the actions, results! Dismal at best, globally embarrassing at worst!  Italy unveils plan to calm fears of escalating crisis  (WP) [ Yeah, dem piigs were back in the news. Dem PIIGS still got problems.  Europe’s debt crisis threatens Italy (WP) [ Yeah, dem’ darn PIIGS.  Reminds me of that joke (I won’t repeat it here except the punch line): ‘That’s black bart’s girl’.  Pelosi: ‘We are not Greece’  ( but greecy Italy Italians voice concern over Italian debt crisis scenario [ Whew! Close call! There you go. Nothing to worry about now that wobama’s got a boehner … so not to be so hard on them; if pelosi says it, it must be true … Not! …Pervasively corrupt, defacto bankrupt america, they, she look pretty greecey to me. After all, if the same’s wobama’s ‘far-reaching plan on debt’, we all know ‘wobama the b’ (for b***s***) is total b***s*** which means like Greecey PIIGS they’ll be back to the trough for more … slop … py.  Deficits And Stimulus Only Delay The Inevitable Collapse Bob Chapman | America is insolvent and has been so for a long time. US Is in Even Worse Shape Financially Than Greece: Gross When adding in all of the money owed to cover future liabilities in entitlement programs the US is actually in worse financial shape than Greece and other debt-laden European countries, Pimco’s Bill Gross told CNBC Monday.  Maierhofer: ‘USA INCOME STATEMENT:Total federal spending in 2010 amounted to $3.456 trillion. Total receipts added up to $2.162 trillion. USA Inc.'s 2010 deficit was $1.294 trillion.The 2011 federal budget is $3.7 trillion with a projected deficit of$1.6 trillion. …USA BALANCE SHEET: Consensus estimates for unfunded obligations vary. Mary Meeker pegs the shortfall at $31 trillion, PIMCO's Bill Gross estimates the unreported debt to be $75 trillion, while other estimates exceed $100 trillion (these amounts are insurmountable) …’ Famed economist predicts economic calamity in 2012. See the evidence.Newsmax  http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1   Watch for fake gov’t data / reports owing to political desperation! Why You Shouldn't Buy Into This Plunge Forbes/O'Neil‘The market is building momentum to the downside’.   Wall Street closes worst week since '08 with wild day NEW YORK (Reuters) S&P on U.S. downgrade: Debt pact 'falls short' - Reuters  S&P downgrades US credit rating from AAA   S&P Shocks the U.S. with Credit Downgrade to AA+ from Prestigious AAA Rating  Wall St. Cheat Sheet    What Recovery? Forbes   ‘…we can’t call this a recovery. There’s no reason to celebrate when a job report was better than expected. Why? Because the expectation was abysmal to begin with. And while we’re at it, we can’t ignore increasing sovereign debt problems in Europe…’  Top 3 Reasons Markets Erased the Year’s Gains Wall St. Cheat Sheet  1) Japan and Europe 2) Unemployment.3) Capital goods - billions of dollars in lost revenue. Financial Crisis Phase II Is Ahead at Forbes Bert Dohmen ‘ In late 2007, I wrote the book Prelude To Meltdown, predicting the global crisis that occurred the following year.  I now see a similar confluence of events that warns of phase II of the global crisis… My work shows that “the new recession has started.”… Over the past 33 years, we have called the start of every recession, often on the exact month, or within one month, of the official start as determined one year later by the official arbiter of recession, the National Bureau of Economic Research (NBER)… However, inflation is far understated for political reasons. Currently, the GDP deflator is 1.8%, which hardly reflects the true rise in prices. Therefore, what is counted as “growth,” is actually price increases. Actual inflation, according to free market economists who calculate inflation as it was done in 1980 before the politician re-engineered it, is now more than 11%. Using that to adjust GDP for inflation, would show that the economy is now in a very sharp contraction…’FLASHBACK HERE: Selling In May Is Very Good Advice This Year  Harding   Remember: Sell in May and Go Away and If You’ve Not Sold by June, You’re a Loon! ‘ ‘Albert Edwards: Thinks the Market Could Fall 70%’ [ He’s not alone!   PRECHTER: We're Still In A Massive Bear Market And Stocks Will Crash To New Lows     Stock Market: 4 Current Warning Signs  Navin ‘…1) The 5-year high in the level of insider corporate stock sales is telling. At 565 sells for every 1 buy, it’s never been higher.

 

 

Bad luck? Bad faith? Obamas explanation for our current malaise. Really? (Washington Post) [ Yeah! This really takes the cake! When I first heard that ridiculous utterance by wobama the b (for b***s***) I was inclined to fall off my chair. But alas, so innured to wobamas b***s*** have I become, it barely registered a ho-hum. He is so pathetic! Such a total joke! I really mean it! Theres no excuse whatsoever for bush failure 3, wobama the b!  Details of Obamas jobs plan emerge President is thinking about proposing tax cuts for companies that hire workers, new spending for roads and construction, and other measures that target the long-term unemployed, administration officials say. (Washington Post) [  Oh come on! Too little, too late for wobama the b (for b***s***), the eternal campaign(er) hes got a good rap that rapper wobama the b (for b***s***).  Really! Hes a total embarrassment out there on the campaign trail; and just as much an embarrassment for those who turn out to see him maybe hes somewhat of an allure as in a freak show. Hes a total joke! To be finally talking jobs and things just before the election having broken previous campaign promises in his failed role as bush failure 3. Even his pension is undeserved so much a fraud is he! Black caucus: Tired of making excuses for Obama [ They are not alone! ] Washington Examiner | A key member of the Congressional Black Caucus says they dont pressure President Obama because he is loved by black voters.  Obama Takes More Vacations Than Any Human Being Ive Ever Seen Fox News | Here we have a country that really is going to hell in a handbasket. Bus Tour Bust: Obamas Approval Plummets Back Into 30s, Says Gallup CNS News | Obamas politically charged but taxpayer funded bus tour through the Midwest turned into a bust yesterday. Disapproval of Congress Hits All Time High of 84% Paul Joseph Watson | Americans are more upset with political leadership than ever before.

 

Stocks plunge on Europe’s banking worries  (Washington Post) [ Oh … so that’s what happened … those european banking worries … sure coulda’ fooled many here stateside who are, in light of dismal realities here, yellin’, ‘look homeward hell’s angels’. This sounds like a job for … Rosanne Rosanna Dana, formerly of SNL fame and as her mama always used to say, which is also her hypothesis, ‘it’s always somethin’ … (but unfortunately, that somethin’ is not necessarily what they say it is). How ‘bout the fact that stocks are substantially over-loved, over-valued owing to a multitude of (wall street benefiting) fraudulent artifices which are intended to obfuscate, as in the last and ongoing debacle, their most current computerized  manipulated churn-and-earn high-frequency trading bubble-bull cycle in this unmistakably secular bear market.  The frauds on wall street et als should be criminally prosecuted, jailed, fined, and disgorgement imposed! Train Reading: The Stock Market Is Insane The Wall Street Journal  Stocks rally off lows to suck suckers in and keep suckers sucked in on bad news (Jobless Claims, Inflation Rise More Than Expected CNBC) , fraud ( SEC destroyed documents, senator says ), and b***s*** alone!  MKM Bracing For SPY To Drop 8% More; Nasdaq Nearing August Lows Barrons.com,  WHY NEW LOWS ARE LIKELY  8-18-11 Maierhofer, Is It 2008 Again? Looking at the Summer Crash of 2011 Gayed ‘A real bear market has begun …’ ,  Abandon Ship?[The USS Titanic] Yes, Because of These 5 Bearish Icebergs ... McGill ,  There's A Recession Coming According To The Data at Forbes  ,  HP, Dell hammered as tech-spending outlook darkens   JDSU, NetApp, disappointing figures, shares hit hard in after-hours trade   Dell braces investors for a bumpy road Dell makes a case on why it can better weather an upcoming storm  ,   S&P says sell Google's shares after Motorola deal  ,  STOCKS FALL AFTER FLOOD OF BAD NEWS: Here's What You Need To Know  Joe Weisenthal ,   Stocks Slip On Concern Over Europe's Debt, U.S. Data  ,  Watch Out: 2011 Looks A Lot Like The Market Top In 2007 Sean Hanlon Take A Lesson From 2007 And Sell Stocks Now at Forbes, [video] Trader: We Could Test 1120 Lows at TheStreet.com   In a Downtrend, Sell a Rally (Daily FX)     Latest: Economist Who Predicted Market Crash Warns of 2012 Aftershock. See More Here.    Famed economist predicts economic calamity in 2012. See the evidence.Newsmax http://w3.newsmax.com/a/aftershockb/video.cfm?promo_code=CA79-1      50% unemployment, 90% stock market drop, 100% inflation. See the Evidence (Newsmax.com

 

 

Drudgereport: TEMPLETON chairman: Financial Crisis 'Around Corner'...
'WE ARE ON THE VERGE OF A GREAT, GREAT DEPRESSION...'
Obama Economists Admit: 'Stimulus' Cost $278,000 per Job...
GALLUP SHOCK: 'REPUBLICAN' BEATS OBAMA BY 8%
GALLUP: APPROVE DOWN TO 38%...
Highest Negative Rating Ever...
DOJ raids guitar factory...
UPDATE: GIBSON GUITAR CEO slams raids as 'overreach'... [ With unprosecuted securities fraud in the trillions, and my own experience with the ‘DOJ’ that has covered up serious RICO crimes, etc.,  http://albertpeia.com/fbimartinezcongallard.htm   http://www.albertpeia.com/112208opocoan/ricosummarytoFBIunderpenaltyofperjury.pdf     http://www.albertpeia.com/112208opocoan/PeiavCoanetals.htm   , I find this somewhat incredulous in terms of priorities!]
JOBS: ZERO...
BROKE: POST OFFICE SYSTEM MAY SHUT DOWN ENTIRELY THIS WINTER... [Good! Let UPS take them over … the usps is totally unreliable]
AMERICA FALLS TO 5TH PLACE...
46.2 million Americans are now poor...
22% of children in poverty...
Dramatic drop in median income...
Likely to worsen...
POVERTY SOARS
SETS NEW RECORD

STEVE JOBS DEAD
POLL: OBAMA 41% ANY REPUBLICAN 47%...
RE-ELECT: 41%...
'AIMLESS OBAMA WALKS ALONE'...
'Loner'...
AP: Disconnected from reality...
STUDY: USA not in top 10 for starting a business...
12 US TROOPS KILLED...

Suicide bomber targeted American NATO bus in Kabul...
TALIBAN CLAIMS CREDIT...
POLITICO: Two women accused Cain of inappropriate behavior… [ Read my lips: NO NEW NIGGERS! … even a fallen despoiled nation in intractable decline as america can do better than that; ie., wobama v. cain ? (besides, there’s that ‘cancer problem’, amidst scandals exceeding ‘pubic hairs on soda cans’); this is no endorsement of anyone else. As a matter of fact, that there are two niggers vying for the presidency is a testament to how far america has fallen. Maybe pervasively corrupt, defacto bankrupt america can look to sub-saharan africa for their models of governance.  IT’S OVER: Cain Is Done Business Insider | The scandals swirling around Herman Cain today will be fatal to his presidential ambitions.  ] ...
Cain Chief Of Staff Calls On Perry Campaign, POLITICO To Apologize...

'Chicagoland hit'...
Debt Increased $203B in Oct.: $650 For Every American...

Number of Americans on food stamps rises 8% to 45,800,000...
Greek Vote On Bailout Plan Due 'Within Weeks'...

Fears rising about impact of euro on daily life...
France, Germany demand decision...
FBI moves in on Corzine's MF GLOBAL...

FLASHBACK: Corzine floated for Treasury Secy...
China (the rational nation financially, economically, geopolitically) sells missiles to Iran in violation of UN sanctions (where are the sanctions against israel/america et als for war crimes, violations of international law/u.n. resolutions, etc.) ...
Israel test-fires missile that could hit Iran...

NETANYAHU RALLIES SUPPORT FOR ATTACK...
UK steps up plans for possible strike...

Greece Vote on Bailout STILL ON...
Gov't 'On Verge of Imploding'...
Military Chiefs Replaced...
ON THE BRINK...
EU leaders race to save deal...
Emergency meeting in Cannes...
Vote threatens Sarkozy re-election plans...
PAPER: World faces years of social unrest as economies falter...
Herman Cain: The Attacks On Me Are Racially Motivated … [There it is … the race card … riiiiight!] ...
CONDI TO CAIN: DON'T PLAY THE CARD...

ISRAEL AUTHORIZES 'GROUND OPERATION' TO STOP GAZA ROCKETS...
Washington fears unilateral strike on Iran...
Israel improving nuclear abilities[ War crimes nation, illegal nuke totin’, defacto bankrupt american albatross israel keepin’ america’s direction and attention misdirected ]...
NEW ORLEANS: 15 shot, 2 dead in Halloween shootings [Yeah, those niggers really love ‘candy’ of any kind]...

FLASHBACK: 'I'M READY FOR HIGH-TECH LYNCHING'...
Second Energy Department-backed company goes bankrupt...
Corzine's MF GLOBAL files Chapter 11...

Likely Among the 10 Biggest Bankruptcies Ever...
Iran demands apology over Saudi ambassador assassination plot charge...
Palestinians win full membership on UN cultural agency … [ This is both productive and positive! ] ...
WORLD SERIES WILD! [Congratulations to the St. Louis Cards … I’m so glad they won since bush / bushes no doubt were routing for their old Rangers team! ]
EU Officials look to Beijing, Tokyo -- borrowing costs rocket...
Cameron: London 'under constant attack' from EU...
GALLUP: OBAMA APPROVAL SKIDS TO NEW LOW...
FIST FIGHT BREAKS OUT IN ITALIAN PARLIAMENT...

MERKEL: We should not take peace for granted...
'Significant new offer' from bondholders...
EU SAVED -- BY CHINA?
SUMMIT FATIGUE: Endless gatherings take toll on leaders...
Berlusconi forced into corner...
FARRAKHAN LASHES OUT AT OBAMA; CONDEMNS GADHAFI 'ASSASSINATION'...

AUDIO...
DOOM: Fears euro summit could miss final deal...

'Unknown territory'...
No bet on disaster...
Finance ministers cancel meeting...
Berlusconi fights to save coalition; Gov't on brink of collapse...
Greenspin: European Union Doomed to Fail...
Japanese yen jumps to new postwar high...
KILL BOUNCE: OBAMA MOVES UP TO 44% AT GALLUP… [I don’t believe this poll number for even one second … this is solely a manipulated ‘pavlov dog conditioning’number]...

Treasury considers 'new' debt security...
Bank Predicts Another US Downgrade -- In Just Few Weeks...
EU 'bank failures will crash Wall Street'...
Pressure on Italy...
New euro 'empire' plot by Brussels...
Germany's economic might sets off alarms...

Shootings up 154% in NYC ...

Defections by Senate Dems Hamper Message on Jobs...
Unemployment rate rises after Obama visits NC...
DNC's 2012 host state posts highest payroll losses...
DC area tops income list; Avg fed employee makes $126,000 a year…[With the exception of law enforcement, ie., FBI, fed employees are uneconomic and almost without exception, a total waste of money]...

Reid says govt jobs must take priority over private-sector...
Americans' Standard of Living Drops Sharply...
Antidepressant use skyrockets...
RUSSIA: GADDAFI DEATH BREACHED LAW
Greece may need 60% bond writedown; EU at odds...
Greeks ask God for help…[ Not granted! ]...
S&P: France Likely to Lose Top Rating...
EUROPE BRACES FOR 'DOWNGRADE BLITZ'...

FLASHBACK: Gaddafi: Obama is friend...
KILLED IN HOMETOWN...
CAPTURED ALIVE...
'DON'T SHOOT'...
Cost of Libya operation: $1 Billion...
Clinton: 'We came, we saw, he died'...
GRAPHIC VIDEO...
FLASHBACK: Farrakhan: 'That's a Murderer in the White House!'...
HIT LIST: Obama warns other Mid East dictators THEY COULD BE NEXT...
TIMING? U.S. busts two Iranians today over terror plot Obama was briefed about in June... { U.S. accuses Iran of plot to kill Saudi ambassador [ Oh come on! That’s as likely as wmd’s in Iraq; or, america and israel hatching such a plot so they can blame same on Iran. The point is, when it comes to nations that both war-mongering israel/u.s. would love to make, not love, but war on, they’d literally say anything; even to the point of paying anyone to say anything … yellow cake anyone? (‘Bush and Iraq: Follow the Yellow Cake Road’ Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWL8TndC ‘...the White House defense, having now admitted a falsehood in President Bush's claim, in his State of the Union address, that Iraq had tried to buy uranium in Africa. Read more: http://www.time.com/time/world/article/0,8599,463779,00.html#ixzz1aWKsd9dp ] }
ENTHUSIASM GAP: Rs 64%, Ds 43%...
POLL: CAIN 43% OBAMA 41%  

WAR DRUMS: Obama Presses Inspectors on Iran Nuclear Data...
Iran's former president warns of possible US attack...
Day of 'Global Revolution'...
FITCH: More Than Dozen Banks May Get Downgraded...
BATTLE ON 'OCCUPY'...
Bloomberg backs down...
Giuliani [ghouliani / mafiani]: I Would've Told OWS Protesters, 'Streets Are Not For Sleeping,' 'Rent A Room' [ from mafia owned / ‘protected’ hotels only, as per political opportunist –9/11, 9/11, 9/11- ghouliani / mafiani ] [ the difference between the facist / neurotic approach of ghouliani and the rational approach of Bloomberg ] ...
'PARTY' IN TIMES SQUARE!
DENVER POLICE MOVE IN...
10 ARRESTED IN SEATTLE...
SD CAMP DISMANTLED...

OBAMACARE ALREADY FALLING APART?

GRENADES TO MEXICO...
Obama Spoke About Fast and Furious Before Holder Claimed He Knew...
SHRINK: Obama suffers from 'father hunger'...
In Holder Subpoena, Issa Also Probes WH Press Aide...
BOOK WARNS OF END...
'Defend The Occupation!': Protesters Ask For Sunrise Support, Tell People To Call 311 To Complain...
PELOSI UNHINGED: Republicans 'want women to die on floor'...
Obama invokes race...
'Unusual' meeting between US, Iran over plot...
G20 finance ministers gather as time runs out...
Spain Credit Rating Cut...
Europe tempted to save Greek trauma for later...
BUCHANAN: Is the New World Order unraveling?
Panetta warns budget cuts will force retreat in Africa [ Retreat? What alternate universe is this guy from … oh right, ‘the land of fruits and nuts’ ]...
CHICAGOLAND: Video captures two girls violently beating fellow female student... Tim Holt · Top Commenter
how many KNEW that this would be black girls when you read the headline?’ [ Isn’t that the truth … typical niggers! ]
Pack of 30 girls attack 15-year-old girl for cellphone...
WAR DRUMS: IRAN CALLS 'TERROR PLOT' LIE
Saudis say Iran must 'pay the price'...
Hillary: 'Dangerous escalation'...
Warren Buffett made $62,855,038 last year...
Company still owes as much as $1B in back taxes...
CHICAGOLAND: Union boss to rake in $500,000 yearly pension...
Issa subpoenas Holder...
Holder ends press conference after questions on Fast and Furious...
Subpoenas for Atty Gen imminent...
Belafonte: Herman Cain 'is bad apple'...
Cain Fires Back: 'I Left Democrat (for the Republican) Plantation Long Time Ago'...
Afghanistan shuts down graft probe...
Not a single Christian church left in country...
AL-QAEDA QUESTIONS LEGALITY OF KILLING U.S. CITIZEN
TIME SHORT: UK PM says euro has just weeks .. disaster...
100+ 'Fast and Furious' guns found in Mexico cartel home...
HOLDER ON HOT SEAT...
Issa: Subpoenas issued soon...
Iran calls Wall Street protests 'American Spring'...
Chavez slams 'horrible repression' of U.S. protests...
Pope denounces 'inhuman' mafia...
Opposition grows, hardens...
GALLUP: OBAMA AT LOW...
Italy, Spain Ratings Cut by FITCH; Belgium Is Put Under Review by MOODY'S...
FINANCIAL CRISIS 'WORST WORLD HAS EVER FACED'...
MOODY'S Cuts Rating on 12 UK Financial Institutions, nine Portuguese banks...
DEPENDENT STATES OF AMERICA: Nearly Half Live in Households Receiving Govt Benefit...
Wall St protest expected to swell...
FINANCIAL CRISIS 'WORST WORLD HAS EVER FACED'
IT'S OFFICIAL: Housing bust worst since Great Depression...
Sanitation Becoming Concern...
Pelosi on Protesters: 'God bless them'...
LA Mayor Villaraigosa Hands Out Ponchos...
Dallas Federal Reserve Targeted...
Secret panel can put Americans on 'kill list'...
CHICAGOLAND: Bodies double up at morgue...
Post Office's Rescue Plan: More Junk Mail...
College Walk Out Planned; 'Anonymous' Releases Threat Against NYSE...
Occupy Wall Street 'Stands In Solidarity' With Obama Front Group...
Stocks' massive 'melt-up' fans investor fears...
Police, rioters clash in Greece as nation goes on strike...
Geithner warns Europe crisis global threat...
Issa to Holder: Admit you knew...
Holder changes story...
DoJ quietly demotes ATF officials involved in Fast and Furious...
White House screams, swears at reporter for covering scandal...
Is CBSNEWS Silencing Reporter?
Afghanistan violence up 39% over last year...
REPORT: WHouse awarded $5M 'bonus' to state for Food Stamp signup...
DICK MORRIS CLAIM: 'Very Possible' Obama Will Bow Out Of Presidential Race...
'AMERICA'S GOTTEN A LITTLE SOFT’ [Yeah! Soft in the head for tolerating wobama’s b***s***] '
GALLUP: (wobama approval) Back in the 30s...
BLOOMBERG WARNS OF RIOTS...
Assad threatens to attack Tel Aviv in case of NATO strike...
Russia, China veto UN resolution on Syria…[Rationality Prevails!]...
Clashes in Saudi Arabia leave 14 wounded...
Police open fire on civilians... [But this is ok because saudi arabia’s a doormat for israeli/u.s. interests]
GOP calls for special counsel to investigate Holder... Developing...
WHEN DID HE KNOW?
Holder changes story about ATF gun-running op...
'Either Incompetent' or 'Misleading Congress'… [How ‘bout both! … he’s typical!]...
White House screams, swears at reporter for covering scandal...
'RECOVERY CLOSE TO FALTERING'
Michael Moore: The Rich Are Out Of Control, Kleptomaniacs And Sociopaths...
Michelle Obama's Africa Vacation Cost More Than $432,142...
Daughters listed as 'senior staff'...
ESPN YANKS HANK WILLIAMS JR. FROM 'MONDAY NIGHT FOOTBALL'...
LIKENS OBAMA TO HITLER...
VIDEO...
PUTIN EYES 'EURASIAN UNION'
PAPER: China or USA? Make your choice...
Greece Falls Into 'Death Spiral'...

RON PAUL FLOATS IMPEACHMENT FOR DRONE KILL OF U.S. CITIZEN...

'YOU'RE NOT BETTER OFF'...
Claims 'underdog' status for 2012...
POLL: Majority expect him to lose...
Cantor: Obama's Jobs Bill Dead; His 'All-Or-Nothing Approach' Is Unacceptable...
Mosque Set on Fire in Israel...
REUTERS: Christie faces White House decision this week...
[ To be president of the now disunited states like no time since the civil war, one really must want to be president. Governing new jersey is probably the easiest political position in the world inasmuch as the same is totally controlled. New york is a close second to jersey in those terms, complicated only by the arrival, politically like never before, of the wall street frauds (the fraudulent goldman era, beginning more serious than ever politicking with rubin, paulson, etc., probably owing to their far larger frauds for which they needed ‘protection’ in the form of ‘political muscle’ – which they got.). The gangs of jersey, new york have a history that’s endured in terms of impact longer than the political parties themselves; proximity to and control of the local vote multiplied many times by the controlled localities ‘they serve’. In jersey, you can’t get elected without the mob; in some areas the mob controlling both parties. [ brendan byrne, who brought the final take-over / scourge / quid pro quo, viz., the casinos, james florio, mario cuomo (progeny andy cuomo), etc., had publically known mob ties. Less conspicuous would be the likes of old money play-along tom kean, whose desperation to breathe life into the moribund political career of his son is evident to all; including his cover-up report on the 911 incident which was probably the worst of its kind since that other non-jurist, politician / former governor of California warren report / cover-up of the coup d’etat / JFK assassination. Just who are these so-called ‘conservatives’ holding back funding while urging jersey christie’s run ‘for the gold’. No … I couldn’t care less about his girth, the goodyear blimp / humpty dumpty jokes, etc.. Yet, one has to wonder why a prior decision, given even further consideration upon God knows who’s self-interested prompting, is suddenly firm today yet malleable tomorrow. Forbes, (and hannity I suspect), of jersey himself (themselves) seems close to this yet one still must wonder ‘what the deal is’. More importantly, for jersey (n.y.) candidates, ‘with whom’. That wobama, as a black man realistically / potentially viewed as the ultimate outsider, would make promises that got him elected, yet renege on nearly all of same is a testament to how totally controlled these gutless politicians are and proving how such lack of courage spells not only their own unequivocal failure (wobama as bush failure 3, et als), but certainly for that of the nation as well ( Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP | Obama has promised to hold Wall Street accountable for the meltdown.’THE OBAMA DECEPTION’ http://albertpeia.com/obamadeceptionhighqualityversion.flv  ). Quite simply, there is really no good reason why a jersey politician should change his mind about something that should be at one with the person himself. After all, we all must at least assume jersey governor Christie is a man of reason who previously made an unequivocal, publically announced, widely covered decision for what must be assumed a good reason. ]
FORBES: CHRISTIE DECISION WITHIN 72 HOURS...

CLASH ON BROOKLYN BRIDGE...
More than 700 arrested in 'Wall St' protest...
Dozens cuffed in Boston after targeting BANK OF AMERICA...
Protests spread across USA...
Los Angeles...
Chicago...
Denver...
Seattle...
Greece to Miss Deficit Targets Despite Austerity...
'Leaders are pushing the world into Depression'...

Al Sharpton's office admits handing out possibly bogus stimulus check forms...

Iran Supreme Leader: Palestinian UN statehood bid doomed to fail...
Hamas: 'Resistance' against Israel is only option left...
STOCKS SUCK...
Wall St. ends rotten quarter in sour mood...
Dow Notches 12% Drop...
No Rise in Home Prices 'until 2020'...
Feds: SOLYNDRA Won't Reveal Contracts, Customers or Exec Bonuseslt (typical american boondoggle) ...
DOE pushing ahead with $5b more in solar loans (another american boondoggle) ...
Strikes hamper Greek rescue effort...
Sarkozy, Merkel to Meet...
$200K Per Job? Geithner Says White House Plan Still Bargain … [ Riiiiight! .. In what alternate reality beyond political desperation mode? ] ...
GERMANY SLAMS 'STUPID' US PLAN FOR EURO...
CHAOS: THOUSANDS LINE UP IN PHILLY FOR FOOD STAMPS...
Protester calls Obama 'Anti-Christ'...
Fundraising plunges...
'Titanic struggle' for re-election...{  Axelrod: Obama faces 'titanic struggle' [ Yes indeed! A titanic struggle for control of the Titanic, the USS Titanic, sinking from its own  weight of pervasive corruption, defacto bankruptcy, and fatal, immutable structural flaws! ] }
CA CITY HAS 32.4% UNEMPLOYMENT RATE!
POLL: Paul beats Obama 51-49...
COPS: Mob of girls charge house after high school fight; 2-year-old girl shot...
DEM GOV. CALLS FOR 'SUSPENDING ELECTIONS' … [ the wobamanoid plan … for even greater nation-breakin’ disaster! ]...
Former Obama budget director: 'We need less democracy' to 'counter gridlock' [ How desperate, these wobamanoids… How pathetic! ] ...
Split over Greek bail-out terms...
NOW IMF NEEDS BAILOUT!
PUTIN FOR LIFE...
Police in Moscow raid bank of political opponent...
Finance chief rebels...
Merkel: Greek default would destroy faith in Europe...
French left seizes Senate majority, hurts Sarkozy...
Plan B: Flood markets...
S&P: Larger Fund Could Weigh on Ratings...
SIX WEEKS TO SAVE THE EURO...
IMF to increase resources to more than $1 trillion...
Wall Street protesters pepper-sprayed, cuffed...
90 arrested...
VIDEO: Wild scene...
Catalonia's last bullfight … [How wise, and nothing less than what one would expect from the place that has given rise to among the greatest artists in the history of this world.] ...
PAYBACK [ Retaliation ]: S&P Could Face Legal Action From SEC Over Ratings...
SUMMER SALE: Dow plunges 391 points...
Global markets tumble 4%...
ZOELLICK: 'World in danger zone'...
SOROS: USA already in double-dip...
Abbas moves for statehood...
'We shall not recognize a Jewish state'...
NETANAYAHU is a 'Theater of the absurd'...
Calls UN 'House Of Lies'...
CLASHES IN WEST BANK...
LIVE...
Pakistan warns US: 'You will lose an ally'...
SHUTDOWN: Harry Reid kills bill to keep gov't running...
Postpones disaster relief vote...
...for Dem party, fundraiser at island retreat!
BLOW: Obama fundraiser got $107m in federal tax credits for wind power...
Credit stress 'reaches pre-LEHMAN danger levels'...
BAD BLOOD: Bill Clinton: Netanyahu killed peace process...
GLOBAL SYSTEM UNDER PRESSURE...
GALLUP: 55% DISTRUST MEDIA...
Palestinians Delay Call for Quick Vote...
State bid 'only alternative to violence'...
UN chief urges Israel 'restraint'...
Obama re-affirms desire for Palestinian state...
Venezuela, Cuba defend Iran...
IMF warns on global financial system...
MOODY'S downgrades three US megabanks...
Man returns with shotgun after TACO BELL worker forgets hot sauce...
IHOP Hires Bouncer To Control The Rowdy...
Approval Among Liberals Hits All-Time Low...
LIBS VOW PRIMARY CHALLENGE AGAINST OBAMA
IMF WARNS: INTO THE DANGER ZONE...
...warns of USA 'lost decade'
USA building secret drone bases in Africa, Arabian Peninsula...
Chavez: Israel committing genocide...
Iran: Israel killing our nuclear scientists...
Palestinian move hits Dem vote base; Republicans woo Jewish electorate...
Israel Floats 'Interim Solution' To Palestinian Statehood Debate … [ Half measures will not do! Too much time, resources have been wasted! Time for the ‘final solution’… the choices: peaceful or non-peaceful; rational or irrational; reasonable or unreasonable! There has been nothing to have changed the reasonable expectations created by secretary of state clinton herself in espousing this administration’s unequivocal position espousing Palestinian statehood! ] ...
REPORT: SOLYNDRA execs to plead Fifth...
HOUSE TO PROBE OBAMA ACTIONS ON GOV'T LOAN...
Second witness says White House tried to steer testimony...

Air Force general claims he was pressured...
WIRELESS: Obama invested in Falcone-funded Co....
FLASHBACK: 'I thought about going to Warren Buffett, and I decided it would be embarrassing I only had $100,000'...
CHICAGO TRIBUNE: Why Obama should withdraw from 2012 race...
Black Caucus chairman: If Obama wasn't president, we would be 'marching on the White House'… [ Which means typically,  reasonably as suspected, the black caucus is racist and without any credibility whatsoever; particularly in their support of wobama, ‘the last negro’ … What an insecure, jive-talking, stereotypical dismal failure wobama’s turned out to be … he’s totally pathetic … he’s proven to be just another of his type who’s gotten by on b***s*** and ‘special understanding / consideration’  his entire life … yes, the last negroe! … wobama’s basically re-running his last and now endless campaign expecting all to believe him this time around … this last negroe! ] ...
OBAMA'S JOBS BILL WON'T BE READY UNTIL NEXT MONTH, AFTER ANOTHER VACATION...
$3 in tax hikes for every $1 in spending cuts...
NEW BOOK TELLS OF DISCORD IN OBAMA ECONOMIC TEAM...
Women 'excluded and ignored'...
REPORT: Rahm threatened to burn down house of statehouse foe...
Protesters hit Wall Street...
'US Day of Rage'...
Cops Lockdown Wall Street From Day of Rage Protesters
$1,500,000,000,000 IN NEW TAXES
GREEK BLEAK...
WREAK...
RETIREE BENEFITS FOR THE MILITARY COULD FACE CUTS...
Fed Expected to Launch New Program as Europe Boils...
Europe digs ever deeper debt hole...
Palestinians demand statehood...
Holy Land clerics bless...
Jewish groups worried by Vatican gesture...
Obama faces awkward dilemma...
NYC security on alert for UN assembly...
Emergency meetings to avert Palestinian crisis...
TURKEY PROPOSES PARTNERSHIP WITH EGYPT...
VETO THAT COULD CHANGE THE WORLD...
Palestinian leader ignores US warnings on UN statehood...
Israel ups West Bank forces...
Anti-Israel subway signs in NYC spark religious war of words...
Geithner warns EU of 'catastrophic risk'...
Europe bristles at lecture...
US could be on hook for bailout… [ Come on! Let’s get real here! Pervasively corrupt, defacto bankrupt america can’t even bail itself out! ] ...
Eurozone possible nightmare scenarios...
NEW 'WAVE OF FORECLOSURES'...
BIG JUMP IN JOBLESS CLAIMS...
INFLATION RISES...
SOLYNDRA among 5 stimulus firms to go under...
Intimidation / Bullying: israel warns of 'harsh' consequences of Palestinian UN bid...
Wobama: ‘GIVE ME A WIN, GIVE ME A BREAK, LOVE ME!'
Cherokee Indians say they can kick blacks out of tribe… [ This should go without saying; after all, while blacks may be u.s. citizens, they’re certainly not Cherokees … let’s get real here – let the u.s. government retroactively honor their many treaty obligations /  violations to the native inhabitants of this land from whom such lands were stolen! ] ...
Geithner: Economy In 'An Early Stage' Of Crisis...
'Hoping for sometime' to get fired...
Dem Rep: Americans don't deserve to keep all of their money...
MOODY'S downgrades 2 French banks...
International alarm over euro zone crisis grows...
Europe's banks staring into abyss...
PLO: Palestinian state to be Jew-free [ Sounds like a Plan … for peace, peace of mind, and prosperity! ] ...
BILLIONS AND BILLIONS: GE to Buy Back Shares From Buffett...
Rumsfeld cancels NYT subscrip over Truthful Krugman piece...
100 protesters burn American flag outside U.S. embassy in London...
Israel facing 'diplomatic tsunami' with Arab neighbors...
Crisis threatens Mideast ties...
US pleas ignored as mob attacked...
Warning of 'orderly default' on Greek debt...
KRUGMAN: Bush, Giuliani 'fake heroes' who cashed in 'on horror'...
BUSH [ Yeah! bush indeed knows all about this because he is evil and lacks courage! ]: 'One of the lessons of 9-11 is that evil is real, and so is courage'...
$447B JOBS BILL: $421B FROM TAXPAYERS...
BILL SHIFTS INCOME CUTOFF DOWN TO $200,000...
JUST $40B COMES FROM OIL, GAS TAXES...
TAB FOR CORP JET OWNERS: $3 BILLION...
Obama to Tout Jobs Act at Donor's Company...
ITALY TURNS TO CHINA FOR BAILOUT
Jordan Abdullah: Israel situation more difficult than ever...  [ Op-ed: israel doesn’t really want peace  http://www.ynetnews.com/articles/0,7340,L-4118832,00.html  ]
Russia supports Palestinian statehood...
U.S. BOOTS ON THE GROUND IN LIBYA...
NOONAN: We'll Never Get Over It...
NYPD launches Its Own Navy, 1,000-Man Army, Tanks...
'Dirty Bomb' Fears...
NBCNEWS TWITTER account hacked, published fake terror alert...
Egyptian protesters pull down Israel embassy wall … [ Congratulations! Well Done! ]  ...
STOCKS SLAMMED...
Obama jobs package fails to lift spirits...
Global slide...
Berlusconi says has 'no power' as Italy crisis bites...
Greek PM to give speech amid hostility...
World Enters 'Dangerous New Phase'...
'Collectively suffering a crisis of confidence'...
FBI raids Obama-backed solar company...
SOLYDRA reps made 20 trips to WH before $500M award...
Fed court tosses out 2 challenges to Obamacare...
Panel of 3 dem-appointed judges, including 2 appointed by Obama...
Afghan journalist killed by US soldier...
ANOTHER $300 BILLION...
'It might not create a single job'...
Makes 'whopper' claim about middle class tax cut...
CARNEY: 'I'm going to shuck and jive'...
TV stations pick football over another Obama jobs speech… [ Indeed they should .. wobama’s total b***s***! ] ...
ACLU to sue over welfare drug testing… [ No constitutional issue here .. Reason? Welfare isn’t a right! Moreover, such a law deters those who would fail such a test from applying which therefore understates the prevalence of the abuse in these difficult fiscal / economic / budgetary times  ]...
California Employment Level Sinks to Record Low ...
Iceland says it was 'bullied' over bank debt...
46 People Shot In NYC Over Holiday Weekend...
Gunfire erupts near Bloomberg in Brooklyn...
7 Killed in Chicagoland...
40% of Europeans 'suffer mental illness'...
Gunman unloads inside IHOP...
9 shot, 3 killed...
2 dead were National Guardsmen in uniform...
NO REAGAN, NO CLINTON...
Another all-time low...
US on wrong track say 75% -- of Californians!
Redford disappointed: 'I'm beginning to wonder just where the man stands' … [ I believe Robert Redford would be a very good and potentially great President! (nothing to do with his position on the environment) ] ...
Stocks Lose for Week as Recession Fears Grow...
Roubini: We Are in 'Worse Situation' Than '08...
More and more Americans call long-stay motels home...
USA: $10 TRILLION IN DEBT…[ Far more than that is the reality ]...
Gov't Battles Copper Thieves...
Miami Proposes 'Task Force' To Combat Thefts...
FAKE CITY WORKER ARRESTED STEALING IRON GRATES...
Power lines in Indiana stripped....
China state paper urges Internet rethink to gag foes...
Obama Calls for Extension of Gas Tax...
Hits all-time low approval among women...
SUMMER BUMMER: Stocks Log Worst August in 10 Years...
Solar company touted by Obama closing -- despite $535 million from feds...
1,100 'green jobs' gone...
POVERTY IN PARADISE: Joblessness in some parts of Vegas exceeds 20%...
RANGE DAYS: 3D head-mount like 'sitting in theater'...
August deadliest month for USA in Afghanistan… [ 66 u.s. soldiers killed ]...
FINAL 'FINAL' BATTLE IN LIBYA...
REBELS GIVE GADDAFI UNTIL SATURDAY TO SURRENDER...

ISRAEL MOVES SHIPS; IRAN MOVES SHIPS
Russia, China wisely, rationally resist U.N. Syria sanctions push...
Ron Paul: Mobs In Europe A Sign Of Things Coming (already here)...
Euro bailout in doubt as 'hysteria' hits Germany...German Chancellor Angela Merkel no longer has enough coalition votes in the Bundestag to secure backing for Europe's revamped rescue machinery, threatening a consitutional crisis in Germany and a fresh eruption of the euro debt saga…’
GALLUP: OBAMA DISAPPROVE HITS ALL-TIME HIGH...
NY economy takes huge hit...
ALARM: CHRISTIE SAYS DAMAGES IN BILLIONS, 'IF NOT IN TENS OF BILLIONS'...
Mental illness rise linked to 'climate change'...
Teen girl paralyzed, 10 others wounded at 'Drama Free' party... ‘A Queens party advertised on Facebook and Twitter as "Drama Free" turned into a shooting gallery early Saturday. Eleven young people were shot, including a teenage girl left paralyzed, when a gunman opened fire into the crowd. About 100 people were packed into the backyard of the single-family home on Inwood St. in South Jamaica shortly before 1 a.m., when the shooter sneaked up a back alleyway and opened fire into the yard through a chain link fence…’ Read more: http://www.nydailynews.com/news/ny_crime/2011/08/28/2011-08-28_11_shot_at_drama_free_qns_party.html#ixzz1WOiqvmx3
China jails Tibetan monk for 11 years...
Gaddafi 'seen in Zimbabwe on Mugabe's private jet'...
BUFFETT BUYS BILLIONS IN BANK...
EARNS $280M -- IN A DAY!
Obama called Oracle of Omaha before big buy...
Buffett to Host Fundraiser...
Fukushima radiation leaks 'equal 168 Hiroshimas'...

New home sales on pace for worst year in history...
NATIONAL DEBT RISES BY $3 MILLION EACH MINUTE...
Obama sets record: $4,247,000,000,000 debt in just 945 days...
STEVE JOBS: iRESIGN
LETTER... [ More than just a Silicon Valley legend, Steve Jobs literally saved Apple from extinction Im truly glad he saved Apple, my first computer (1986 - apple IIc for word processing / data based records / forms / templates / data which I interfaced with an electric typewriter for letter quality) and for that all should be thankful. Apple is the Nasdaq (40% weighting) and quite more, that now was! ] 
YORK: Spending, not entitlements, created huge deficit...
$500,000 federal stimulus grant created 1.72 jobs...
GE cutting more jobs...
FLASHBACK: Moving X-ray business to china...

Strong East Coast quake highly unusual...
DETAILS...
Felt from Toronto to Atlanta...
Epicenter VA...
Felt In Chicago...
Airports Close...
CELLPHONES OUT...
Nuke Plant Shuts Down...
VIDEO: Vacant White House Shakes...
VIDEO: Obama Takes Quake Call on Links...
Stones fall off National Cathedral...
WASHINGTON MONUMENT 'TILTING'?...
HOMELAND SECURITY'S QUAKE ADVICE: DON'T CALL...

5.8 MAG QUAKE ROCKS DC-NYC
SEE YOU IN SEPTEMBER...
Buchanan: The view from Martha's Vineyard... ‘As he and his daughters bicycle around the summer playground of the Northeastern elite, Martha's Vineyard, President Obama is steadily bleeding away both the support of the nation and that of his most loyal constituency. Several times, his approval rating in Gallup's daily tracking poll has sunk to 39 percent, with disapproval reaching 54 percent. Support for his handling of the economy has dipped to the mid-20s. Only 11 percent of Americans, says Gallup, are satisfied with the way things are going. Unemployment remains at 9 percent, as it has for two years. The Dow has lately lost 2,000 points, or $3 trillion in wealth wiped out. All that money the Fed pumped out is now being reflected not only in the price of gold, silver and Swiss francs, but in rising consumer prices – inflation. One in five U.S. children is living in poverty…’
SANTORUM: 'maxine waters is vile' [ she’s worse than that, and a total embarassment for america and california particularly! ] ...
Maxine Waters: 'The tea party can go straight to hell'...
Tea Party fires back...
MORGAN FREEMAN TELLS OBAMA TO 'GET PISSED OFF' [ sounds like a plan … nigger to nigger … the nigger plan! ] ...
Philadelphia extends curfew after flash mobs [ new u.s. Christmas carol – ‘america’s beginning to look a lot like sub-saharan africa, everywhere you go’ . They are beasts of burden at most who are a burden to most at best  … you’ll never change the nigger who evolved only to a point! Think about all those ‘make-work’ jobs for niggers that serve no real economic purpose; ie., federal, state, local, uspostal service, etc.. And, they can’t even do those jobs reliably, efficiently. Niggers are a drag on civilized society! ] ...
Black congresswoman blames black unemployment on 'racism' (riiiiight! The race card … how ‘bout reality) ...
'The real enemy is the Tea Party'...
6 shot at youth b'ball game (black violence in ‘the city that loves brothers’ – Philly)...

'REGIME COMING TO END'
Unit protecting Gadhafi surrenders...
Libyan Rebels 'Capture Son'...
'End of regime in 10 days'...
'1,300 dead' in attack on Tripoli...
NATO racing to wrap up...
UPDATES...
AL JAZEERA LIVE...
NEXT: Syria warns against military intervention...
REVEALED: Wall St Aristocracy Got $1.2 Trillion in Fed's SECRET Loans...

OBUMMER SUMMER: DOW DOWN ANOTHER 400
JOBLESS CLAIMS UP...
Inflation rising fast...
Treasury Yields Fall to Record Lows...
What went wrong with global recovery?
Police scramble to fight flash-mob mayhem...

TROOPS IN AFGHANISTAN 'UNTIL 2024'...
GM says bankruptcy excuses it from repairs...
GOV'T MOTORS stock hits new low...
Dollar Sets New Record Low Against Yen...
Putin Calls USA 'Parasite'...
israeli raid strains ties between Egypt and israel...
Ridley Scott to direct new version of 'BLADE RUNNER'...
NASA REPORT: Aliens may destroy humanity to protect other civilizations … [ Naah! Really don’t have to .. confined to this solar system, by hand of God or man, we’re only talking decades at most  ] ...
APPROVE: (now 39%) 42%
Return of Mass Layoffs a Grim Sign...
MOODY'S Cuts U.S. Growth Outlook...
WALMART warns on US economy weakness...

BELOW 40%
WORST WEAK
Putin sets sights on Eurasian economic union...
Gorbachev: I should have abandoned Communist party earlier...
'MAGICAL MISERY BUS TOUR'...
'Greyhound One'...
Armored Buses Cost $2.2 Million...
BLACK CAUCUS ON OBAMA: 'WE'RE GETTING TIRED' [ Not as tired of wobama’s b***s*** / excuses as the ‘White Caucus’ and any other Caucus – but, don’t be taken in by their b***s***; they’ll ‘back the black’ every time, regardless!  ]

New low of 26% approve of Obama on economy...

Inflation builds...
FOOD PRICES RISING...
UNEMPLOYMENT UP...

OBAMA TO LAY OUT JOBS PLAN -- AFTER VACATION...
'Takes More Vacations Than Any Human Being I've Ever Seen'...
Commiserates with jobless, then off to the Vineyard...

Roaming Pack of Thugs Attacks 64-Year-Old Man, Steals His Bible [ Yes, you guessed it! The thugs … they’re niggers! ] ...
Obama: I Reversed Recession Until 'Bad Luck' Hit...

OBAMA'S GREEN PET GOES BANKRUPT...
Got stimulus cash, promised 800 jobs...

Kansas City mulls curfew after racial attacks...
Mayor gets shoved to ground when gunfire erupts...
VIDEO...
Flash mob robs DC-area 7-ELEVEN...
Boy Stabs Girl At Philly Mayor ANTI-VIOLENCE Event...

Detroit Police No Longer Responding To Automated Burglar Alarm Calls...

AP: Ron Paul no longer 'fringe'...
'Shafted' by media...

RON PAUL WEEKEND WINNER IN AMES?

TEEN UNEMPLOYMENT HITS 50% IN DC

CONSUMER CONFIDENCE CRASHES...
Lowest since Jimmy Carter...

APPEALS COURT: OBAMACARE UNCONSTITUTIONAL...
Dem Judge Rules Against Obama's Signature Achievement...
'Unbounded assertion of congressional authority'...

Emergency Decree: Italy Approves Tough Austerity Measures... Developing...
RIOTS BREAK OUT AROUND GLOBE AMID ECONOMIC ANXIETY

Dollar Tumbles on Fed Pledge; Swiss Franc Soars Most Since 1971...

Merkel faces revolt over eurozone deal...

Philadelphia Implements Strict Curfew To Combat Violent Mobs...
MAYOR TO BLACK YOUTH: 'You have damaged your own race'...
OBAMA APPROVE HITS NEW LOWS...
'There is something wrong with our politics'[ Yeah! You, among many others! All those false campaign promises, etc.!  ]   ...

6 YEAR OLDS CAUGHT WORKING ON FARMS...
Thirty-year Treasury yields rise most since 1980s...
CHICAGOLAND: State can no longer afford to bury dead poor...

Feds Called In To Curb 'Wild West' Violence In E. St. Louis...
REPORTS: Olympics ambassador is London rioter!
5 more US troops killed in Afghanistan...

SAVE THE EURO: Sarkozy, Merkel in emergency meeting...

HYPERSONIC PLANE LOST (What was the cost?) ...
REPORT: ENTIRE US STEALTH FLEET GROUNDED...

OBAMA CONSIDERS BECOMING NATIONAL LANDLORD...
Still going on vaca...
Approval: 40%...
Highest approval among Muslims...
WRONG TRACK: 73%...
Obama Marks Ramadan with Iftar dinner...

BANK STOCKS PLUNGE...
MOODY's warns states, local govts...
Treasury sells 10-year notes at record low rate...

SONY 'CLASSIFIED' BIN LADEN MOVIE;
WHITE HOUSE REJECTS FAVORS CLAIM

UK locks down as nights of unrest spread...
Manchester riots on scale not seen in 30 years...
Rioters rob people on street, force them to strip naked...
DOW -634...
CURSED: S&P falls 6.66%
IT TANKED AS HE TALKED...
BARACKALYPSE NOW

CHINA: Dollar to Be 'Discarded' by World...
Lectures How 'Good Old Days' of Borrowing Have Ended...
NOW BUFFETT DOWNGRADED!
Tel Aviv stocks fall 7% after USA debt downgrade...
Nikkei drops 2%...
Wall St braces...
European leaders scramble to calm investors...
S&P: 1 in 3 chance USA will fall ANOTHER notch!
Recession without shock absorbers...
Gold soars above $1,700...
PRE-MARKETS... DEVELOPING...
BLOODY WEEKEND

USA DOWNGRADED: FIRST CREDIT RATING CUT IN NATION'S HISTORY...
DETAILS [.PDF FILE]...
DEMOCRATS CALL FOR HIGHER TAXES...

CHINA: 'Good old days' of borrowing are over...

LONDON BURNS...
...the underclass lashes out
Violence continues...
Rioting spreads beyond capital...
DAY 3...

Riot Hits London After Police Shooting...
...shops looted
RAMPAGE...
Fears of more...
DOWNGRADED!
DETAILS [.PDF FILE]
FLASHBACK: 'No risk' USA will lose its top credit rating, says Treasury's Geithner … [ Well, we all know the powers of foresight possessed by ‘no-recession-helicopter ben’ and tiny tim geithner ] ...
FOOD STAMPS: Record 45.8 million dependent...
One in seven Americans...

Postal Service warns it could default…[ No surprise here .. the usps is totally unreliable! ] ...
Post Office proposes cutting 120,000 jobs, pulling out of healthcare plan …[ Let UPS take over the usps! ]...
Controversy over White House 'Hip-Hop BBQ'...

'Mob' beatings at WI state fair...
'Hundreds of young black people beating white people'... [ Typical n*****s! Good thing there are food stamps; otherwise they’d be reverting to their inherent proclivity for canabalism (send them back to africa … even give them a lump sum for an irrevocable repatriation incentive … a huge cost-saving beyond the first year with substantial salutary effects for the nation, the economy, and the remaining civilized non-blacks). The other major crimes they do anyway. It’s their nature. You’ll never change the nigger … they evolved only to ‘a point’ and no further.  ]
Fairgoers 'pulled out of cars'...
'They were just going after white people'...
Heightened security...

[ I refrained from using the ‘n word’ (or even blacks / negroes) in referring to the culprits in the following two incidents (those tender sensibilities) but I’m sure you’ve guessed that they were niggers and I include same here in light of the foregoing incident (and yes, the victims were white), which is typical. ‘.. while walking through Military Park (a sliver of a “park” - more a pedestrian thoroughfare/cement walks) in newark, new jersey on the way to the bank during lunch hour, I heard the clearly audible screams/cries of what turned out to be an old lady on the ground with blood streaming from her mouth. I ran toward the sound of the cries, the source of which I could not see because there were so many people in and about this thoroughfare so as to block any vision of the source of the cries. When I came to the woman, on the ground, blood streaming from her mouth, I asked what happened, to which she responded she had been hit in the mouth and knocked to the ground, her purse stolen/put inside her shopping bag, and she pointed out the criminal casually now walking across the main street. Nobody stopped to help her, many having passed her by. I slammed the thug to the ground so hard that, in light of all the blood and confusion (limbic system / adrenalin flow) I thought I had been stabbed (the blood was from his elbows hitting the pavement so hard - no one helped / a crowd gathered / an undercover cop happened along). When I testified at the Grand Jury Proceeding I made sure his threat on my life was set forth in prima facie fashion so as to maximize the DA’s position with both felonies ( he went to prison – pled out ). The other case I wrote about here ( This was included on my website in the Psychology forum discussion of ‘bystander effect’ / diffusion of responsibility. ) - Having had occasion to have run down a mugger in newark, n.j. who apparently had followed a girl from the bank on her way to the bursar to pay tuition, though in pretty good shape, I was astounded by how totally exhausting such a pursuit was, how much like rubber my arms were when I traded punches with the perpetrator, and truth be told, if I had a flashlight on my belt, I have little doubt that I would have probably used it to subdue the perp (a police officer here in California was the object of intense criticism for having used a flashlight to subdue a criminal  / nigger after a long chase so I included that here) . The girl was not that seriously injured, did get her pocketbook and tuition back, and the criminal / nigger went to jail (where they belong). The other thing about such a pursuit that amazed me was that no one else assisted the girl or me despite being in a position to do so. I was also mugged by 4 niggers and 2 hispanics in an incident here in Los Angeles, CA. But, to be fair and balanced, the RICO litigation involves those uncivilized who consider themselves ‘whites’ http://albertpeia.com/ricosummarytoFBIunderpenaltyofperjury.pdf  (predominantly but not exclusively jews / romans-italians / mobsters / government slugs). ]

UGLY!

DOW PLUMMETS 512...
OBAMA HAS BBQ COOKOUT...
GAINS FOR YEAR GONE...
'CORRECTION'...
PANIC RIPS THROUGH GLOBAL MARKETS...
Intervention fails to quell nerves...
'NOT SINCE JIMMY CARTER'...
Military money on chopping block...

Grim economic news clouds Obama 50th...

Two-year Treasury yield drops to record low...
RACE TO CASH: Bank imposes fee on rapidly growing deposits...
DEM RUNS FROM OBAMA...
Leaders Issue Warning on Joblessness...

Woman dies from heat after AC stolen...
San Fran tourist mugged of money, clump of hair...
RENTER STEALS AC, SELLS FOR GAS MONEY...
HUMAN HAIR TRADE SURGES...
Bronze Dog Statue Stolen From Humane Society...
Thieves steal school's bleachers!
Mom Arrested For Robbing Girl At Gunpoint -- For Bike...
10-Year-Old Boys Held Up For Sneakers At Summer Camp...
MOODY'S: 'NEGATIVE'

Massive rout spells trouble for Wall St...

Europe on Brink of 'Major Financial Collapse'...

DOW PULLS OFF A WIN! [ Based as usual on b***s*** alone! ]
Scary Chart Pattern Suggests More Selling on Way...
Economy struggles to find footing...
Obama, Bernanke out of ammo to boost jobs, growth...
Gold at $2,000 by year-end...

MORNING AFTER: BORROWING TOPS 100% OF GDP

European leaders feel the strain...
Berlusconi fails to stem rising panic...
'The coming crises of governments'...
Silent bank run hits Greece...
...exodus
Italy under fire...
Pain in Spain...
Woes Get Messier...

DEBT DEAL BACKLASH:
LIMBAUGH: A Total Waste of Time and Effort...
SAVAGE: America has been 'hoodwinked'...
DAILY SHOW: Where are the Tax INCREASES?
FT: Obama's image takes beating...
Ron Paul Sounds Alarm on 'Disturbing' Super Congress...
DER SPIEGEL: 'Civil War Atmosphere' in Washington...

Dollar falls to all-time low against Swiss franc...

PUTIN: USA 'parasite' on global economy... [Unfortunately, this is very true. More unfortunately is the fact that most worldwide don’t realize that fact! I mean, think about it: pervasively corrupt, defacto bankrupt america’s cancerous  perma wars, over-printed debased ‘Weimar’ paper ‘reserve’ currency, huge frauds in securities and otherwise, etc..  ]

House approves debt deal -- day before deadline!
Borrowing to surge after cap raised...
May not save AAA rating...

BIDEN [‘Lobotomy Joe’]CALLS TEA PARTY 'TERRORISTS'[ Riiiiight, ‘Lobotomy Joe’; anything you say joe, now calm down… ]

Manufacturing drops to lowest level in two years...
'Double Dip Here'...
RI Town Files for Bankruptcy...

Dog Airlifted Out of National Forest After Growing Too Tired to Finish Hike... [ Just another dog day afternoon in pervasively corrupt, defacto bankrupt america. ]

SURVEY: Internet Explorer users have lower IQs...

GOP REVOLTS

Obama Threatens Another Veto...
Just hours after urging compromise...
Carney Admits Obama Has No Plan...

OBAMA'S BASE CRUMBLES

BALL IN YOUR COURT, HARRY[, aka Mr. Milktoast, aka Majority Leader of Harry’s Wh*r* House]!

SWEAT CEILING: House approves debt bill...
NO! 22 REPUBLICANS BUCKED BOEHNER...
DC racing against clock...

HARRY BELAFONTE: Obama 'has failed'...
NOONAN: 'HE IS A LOSER'...
GALLUP: 40% APPROVAL...

Obama takes debt battle to TWITTER, loses more than 33,000 followers...
NYT reporter advises WH staff?

Illegal Aliens Head South to Mexico in Search of 'American Dream'...
4.9% unemployment in Mexico vs. 9.4% in US...
Black Middle Class Eroding As Unemployment Rate Soars...

CHAOS... CLOCK TICKING... NO PANIC...
THE VOTE: 'TEA PARTY' IN CHARGE!
Boehner Delays Vote on Debt...
Limbaugh: We've Been Played...
GALLUP: Obama Rates Higher Than Boehner, Reid on Debt Situation!
Ron Paul: 'Default Is Coming'...
Treasury Contingency Plan on Debt Gives Priority to Bondholders...
Carney: If We Have No Other Alternative We Will 'Take Action'...
Obama faces legal bind if time runs out...

PELOSI: 'We're Trying to Save Life on Planet as We Know it'… [ Riiiiight! Keep feeding those perma wars despite bankruptcy of this nation … Is life as she knows it on this planet really death? … Why does ‘doo,doo,doo,doo’ to the tune of Twilight Zone Theme come to mind when hearing her total b***s***?…Oh, riiiiight! She’s caught wobamanoid fever ] ...
6 days from 'default', both sides scrambling...
FURY OVER STALEMATE BOILS OVER...

House Dem leader urges Obama to raise debt ceiling without Congressional approval...

SHOCK POLL: 46% Think Most in Congress Corrupt...
WASHPOST/ABC: Blacks, liberals flee in droves...
SANDERS: Obama should face primary challenger...

The Immelt Way: WH Advisor on Jobs Moving GE X-Ray Business to China...
OBAMA SECRETLY SIGNALS BANKS: 'NO DEFAULT'...
WH to FOXNEWS: 'Tell your viewers there's nothing to worry about'...
BORGER: 'Nobody today is talking about tax increases -- except Barack Obama'...
TWT: Liberals hijacking Reagan to raise taxes...
PANIC: WH'S PFEIFFER SAYS DEFAULT COULD LEAD TO 'DEPRESSION'...

CA seeks bridge loan to pay bills...
Guv OKs financial aid for illegal aliens...
Brazilian currency at highest level since '99...
USA Can Avoid Default 'at Least Until September'...
Obama still pushing for tax hikes...
Endorses New Plan with 'Sham' Savings...
'Cuts' include money not spent in Afghanistan over next 10 years...
BOEHNER: Plan 'full of gimmicks'...

'DOING THINGS ON MY OWN VERY TEMPTING' [Why would anyone believe or follow anything ‘wobama the b’ (for b***s***) says when his actions belying his words have led to this disaster? Hasn’t he ‘done things on his own’ and contrary to campaign promises leading to this debacle? Indeed, he cannot be trusted! ]
Widest wealth gap between whites, minorities on record … [and they’re thanking ‘wobama the b’ (for b***s***)] ...
DEPENDANT STATES OF AMERICA: Geithner Warns: 'We Write 80 Million Checks a Month'...

BOEHNER TO OBAMA: 'CONGRESS WRITES THE LAWS, YOU DECIDE WHAT YOU WANT TO SIGN'...
...President 'worried about his next election'

...Putin considering Kremlin return
Pelosi splits, heads to fundraiser...
CNN: OBAMA LOSING LIBERALS...
Farm thieves target grapes, avocados -- even bees...
Thieves target ambulances...
Thieves Steal 100 Storm Drain Covers In Sacramento...
RASMUSSEN SHOCK POLL: Obama 41% Ron Paul 37%...

DEBT DEAL DEAD...
BOEHNER WALKS...

80+ DEAD IN NORWAY

Terrorism shatters peace in home of Nobel prize...
NYT: 'Helpers of Global Jihad' claim...
Fake cop opens fire at youth camp...

'Tall, blond, of Nordic looks'...
REUTERS UPDATE...
BBC LIVE...
Obama, Boehner discuss new debt plan... Developing...
PRESSURE: S&P renews warning...

SCORCH: HIGH TEMPS TO LAST WEEKS...
Now covers 1 million sq miles...
NEW YORKERS WARNED TO EXPECT ROLLING OUTAGES...

Rolling Blackouts Begin In Detroit...

Fears mount about 'Big Brother' database in Massachusetts...
Florida made $63M selling names, addresses, dates of birth...
Latin America Lectures US over Debt Crisis...
US talks get 'messy'...
Obama now open to short-term deal...

Euro meltdown: Sarkozy jets into Berlin for crisis talks with Merkel...
24 HOURS TO 'SAVE GREECE'...

Ron Paul: 'We Will Default, Debt Is Unsustainable'...
DEAL: SENATE HUDDLES TO HIKE TAXES...
Obama praises...
RESTATES THREAT TO VETO SPENDING CUTS...
LIBS EYE DEEP CUTS TO NATIONAL DEFENSE...

Cash-Strapped Connecticut  Fire Sale, To Axe 365-Year-Old Ferry, Nation's Oldest...

OBAMA MAKES JOKE; NO ONE LAUGHS...

Gold Has Longest Run of Gains Since 1980...
Gas prices on the rise; top $4 in eight states...

Cash-Strapped SF To Shutter Courtrooms; Lay Off 200 Court Workers (and yet another feinstein? From direct experience with the superior courts of california, no loss here, and eliminating them entirely not a bad idea in light of their costly corruption as in the federal system! )...
DEM FLASHES RACE CARD IN DEBT DEBATE...[ Oh come on! This jive-talking, failed ‘president’ has been indulged in every way imaginable and possible (all those false campaign promises that got him elected, etc.). He may not have been the first (clinton has been said even by blacks to have been the first ‘black president’), but he most assuredly is the last black president, fitting every negative stereotype imaginable including racist hypocrisy. UPDATE: MORE CLAIMS OF RACE BIAS AT JUSTICE...ignore cases that involve black defendants and white victims ' Cases against Wall Street lag despite Holder’s vows to target financial fraud  WP Obama has promised to hold Wall Street accountable for the meltdown.    America Is a Failed State Because It Won’t Prosecute Financial Crime  Washington’s Blog Roche 'The worst part of it  ...Obama, who vowed change, has done almost nothing to fix any of it and in fact continues most of the policies that helped get us here in the first place’  ‘INSIDE JOB’ Ferguson wins Oscar for Documentary on the unprosecuted massive extant fraud in the (many) TRILLIONS by the frauds on wall street ( and declares with oscar in hand that not one high level wall street exec has been prosecuted … despite ‘earning’ billions from the fraud )THE OBAMA DECEPTION’  http://albertpeia.com/obamadeceptionhighqualityversion.flv    
'Only THIS president has received the kind attacks and disagreements'...

BOEHNER: HE HAS NO PLAN... [ It’s true; ‘wobama the b’ (for b***s***) has no plan whatsoever. Ask Mr. Teleprompter. ]
KRAUTHAMMER: CALL THE BLUFF!

Feds Issue Warning After 4 Mailboxes Lifted From Post Offices...

O'DRAMA...
'ENOUGH IS ENOUGH'...
WALKS OUT OF WHITE HOUSE MEETING...
'DON'T CALL MY BLUFF'...
REID CALLS CANTOR NAMES...
CAMP DAVID SUMMIT?
BOEHNER: NO NEED...

MCCONNELL: GOP won't be 'tax collectors for Obama economy'...
Hometown congressman tells Obama to 'quit lying'...
PELOSI: 'Almost too busy' to continue debt talks...
GEITHNER: Out of time...
Cash-Strapped NYC Fines Man $2,000 -- For Not Watering Beehive?

STUDY: Black men survive longer in prison than out...
Man falls into Maui blow hole, disappears...
PRESSURE: MOODY'S PUTS USA ON DOWNGRADE WATCH

Boehner Rails on Obama: 'Like dealing with Jell-O'...

WH Cracks Down on Press: No Yelling at Obama Today...
President 'chafes' at unscripted questions...

BERNANKE BARKS BACK AT PAUL...
Fed May Launch New Round of Stimulus...
DOLLAR TUMBLES...
Putin calls Feds 'hooligans'...

Gold hits new high...
DEBT TALKS BREAK DOWN...
McConnell: Deal Not Possible With Obama … [ I think this shoe fits wobama ... African-American unemployment at 16% ... (But there’s rationality in this stat as people avoid their disgustingly uncivilized noisy rap ‘boomboxes’. Then there’s the attitude. I truly believe from direct experience that even when their outright aggression, assaults on persons and the senses, and otherwise obnoxious behavior is not apposite, the personality disorder ‘passive / aggressive’ is applicable, however indirectly expressed.)  ] ...
'Backup plan'...

OBAMA THREATENS TO HOLD UP SOCIAL SECURITY CHECKS
RUBIO: Every Aspect of Life in America is Worse Since Obama Took Over...
GE Immelt lectures biz owners: 'Stop complaining about government'...
FLASHBACK: (GE )Company Paid NO TAXES Last Year...

OBAMA: LET'S STAY IN IRAQ...
FLASHBACK: 'I intend to remove all U.S. troops from Iraq by the end of 2011'...
KARZAI'S BROTHER ASSASSINATED IN KANDAHAR...
Gunned down in home by bodyguard...
'Huge boost for Taliban'...
Obama 'far apart' from Republicans on debt deal...
Boehner: Debt Deal Not Imminent...
TORMENT @ 9.2%

State and local governments bleeding jobs...
Top Obama adviser says unemployment won't be key in '12 … (riiiiight!…talk about wishful thinking and self-delusion)...

BUCHANAN: DC Establishment 'in Panic'...
S&P WARNS GREECE OF DEFAULT -- EVEN WITH BAILOUT!
'Impossible knot'...
SANTELLI: 'The answer is easy: Spend less!'
Italy's borrowing costs soar...
Berlusconi appeals for national unity and 'sacrifices'...

New Fears on Italy Jolt Europe...
Soros: Europeans now need 'plan B'...

Mob Of Teenage Girls Attacks Minneapolis Mom, 4-Year-Old Daughter...

Air Conditioner Thieves Hit 7 Churches In Texas...

THEY'RE HERE! [ Uh! That ‘nausea’ factor; though not nearly of the magnitude of america’s unctuous duo, ‘wobama the b’ (for b***s***) and michelle his belle (see infra). After all, the cloyingly cutesy couple from across the pond is hardly in a position to do damage as are the wobamas. Yet, one must ask: just what exactly are they? Mascots? Non-emmissary emissaries? Indeed, in this economy it’s quite embarrassing for members of the so-called commonwealth, struggling economically and otherwise, england/uk being no exception (royals wealth’ is ultimately the product of common expense) to be celebrating celebrity for the sake of nothing more than celebrity. Worse is the pathetic display here in the defacto bankrupt disunited states (uk not much better and in many ways worse) relative to their former colonial masters. Then there was that ostentatious marriage display so well publicized even as the uk’s (eu, u.s. et als) ‘rank and file’ are sacrificing and the respective nation states crumbling. Even so-called celebrities here shun such meaningless displays of themselves and at least serve a cinematic (art form) purpose. Truth be told, I bear them no ill will; but, I bear them no good will either. After all, quite simply, they are but a meaningless, extravagantly costly welfare couple that are simply irrelevant. How pathetic and embarrassing for their fans, followers, onlookers and their liege. And, though I’m biased (I think Grace Kelly to have been the most exquisite of creatures to have graced this earth – Alfred Hitchcock with an eye for such things thought so too and said as much), clearly Prince Albert of Monaco and his bride’s wedding was tastefully and not cloyingly about right. Now that’s real royalty via Grace Kelly; with a purpose; the management / leadership of a prime travel / gambling / entertainment / resort destination; viz., Monaco. ]
BOEHNER: Taxes 'off table'...
Debt Talks Turn to Social Security Cuts...
CHARGE: Bypassing Congress to raise debt would be 'impeachable'...

Mullen Accuses Tehran of Arming Iraq Militias… [  Riiiiight! Iraq’s the ‘boogey-man / bad guy’ in Iraq … not war crimes nation america which invaded based on known lies ] ...

LONDON BRIDGES FALLING DOWN:
Coulson 'to be arrested tomorrow'...

Gov't decision on SKY takeover 'delayed'...

UPDATE: China warns U.S. officials not to meet Dalai Lama...

CHICAGOLAND: THIEVES STEAL ENTIRE A/C UNITS FROM HOUSES

UPDATE: Teen Dead After Beach Brawl...
Wisc beating victim: 'They just said "Oh, white girl bleeds a lot"'...

US Lawmakers Accuse DOJ of Cover-up in Botched Gun-Running Op...
CA Prison Shrink Paid $838,706 Last Year...
CA companies flee state...
No recession for 454 White House aides: They'll make $37,121,463 this year...
United States of 'gloom'...

Iran Ridicules: America is Not Independent...

SHOCK: Father with HIV raped 6-month-old son...

MEDIA BLOWS IT, AGAIN...
NANCY GRACE LEFT SPUTTERING: 'SOMEWHERE OUT THERE, THE DEVIL IS DANCING TONIGHT'...
Attorney: Case Was 'Media Assassination'...
'Now you have learned a lesson'...
CBS host breaks down...
'TOT MOM' CLEARED BY COURT...

JURY: NO MURDER!
Only guilty of lying to cops...

Portugal's Debt Downgraded to Junk...
CHINA: USA 'ALREADY DEFAULTING'...
DOLLAR TO 'LOSE RESERVE STATUS'

Economy Expected to Have Major Slide in Months Ahead...
NEW IMF CHIEF FROM CHICAGOLAND...
MARK HALPERIN CALLS OBAMA 'A DICK' ON LIVE TV...
POLL: Obama 42%, any Republican 46%...
Campaign signals fundraising fail...
UPDATE: Minnesota Government Shuts Down...
Washington state closes tourism office...
Florida state workers get pink slips, more cuts ahead...

FEDS STRIKE DOWN STATE'S BAN ON RACE CONSIDERATION IN COLLEGE ADMISSIONS...

SoCal Looks to Secede from California...

REPORT: U.S. Air Force, Navy still flying hundreds of missions over Libya...(FLASHBACK: Obama: U.S. Involvement Would Last 'Days, Not Weeks'... OBAMA FIGHTS FOR HIS RIGHT TO BOMB LIBYA...)
GETTING NERVOUS

NEWT: Obama 'most successful food stamp president in American history'...

Bachmann: Media wants 'to see two girls come together and have a mud wrestling fight'…[Well, I don’t know about the mud wrestling, but voyeurs all, ‘come together’ sounds about right … playing ‘victim’ does not become a presidential candidate. ] ...

Palin: Hollywood stars as 'full of hate'... ["What would make someone be so full of hate?" palin asks … answer: resistance to someone as dumb and full of war-mongering hate as she is! ]

REPORT: NATO forces ARE trying to assassinate Qaddafi...

Los Alamos under siege from wildfire...
'Throwing absolutely everything at this that we got'...

BLAGO LIKELY HEADED TO PRISON...
'What happened?'
But he gets to keep his hair...
Fitz finally wins one!

GUILTY IN CHICAGOLAND...
17 of 20 counts...
Tried To Sell Obama's senate seat...
Jury DEADLOCKED on Rahm shakedown...
Blago to lawyer: 'What happened?'
'Stunned'...

JOBLESS WEAK: 429,000...
...disappointed
Economic trouble puzzles Fed chief...

FARRAKHAN: 'THAT'S A MURDERER IN THE WHITE HOUSE'...
THE NEW 'NORMAL'
GALLUP PLUNGE...
Approval -4, disapproval +5 -- in one day!

DOWN TO THIRD: USA 'TO FALL BEHIND INDIA' IN TRADE...
DEM FIX: MORE SPENDING!
Bernanke speaks, stocks sink...
FORBES: 'Admits he's clueless'...

CBO: Long-Term Debt Picture Worsens...
Would reach 101% of GDP by 2021...
STUDY: State, local gov'ts must raise taxes $1,400 a year for 30 years to fund pensions...

Millionaires shrug off downturn; Wealthy richer than before crisis...

Zuckerman: 'We now have more idle men, women than at any time since Great Depression'...

SHOCK POLL: ONLY 3 in 10 WILL VOTE FOR OBAMA...
66% say US headed in 'wrong direction'...

Greece Agrees on New Austerity Plan With EU, IMF...
ANGER IN ATHENS...
'BLACK HOLE'...

WH TRANSCRIPT: 'Over the last 15 months we’ve created over 2.1 million private sector jobs. (Laughter.)'...

REPORT: GANNETT to slash more jobs across the country… [ No surprise here for this pathetic shill, rag publisher. The only real newspaper consistent with a tradition of courage, excellence, and respect for the first amendment is The Washington Post …] ...

DEBT TALKS BREAKDOWN; TAX BUST

S&P: Risk of U.S. credit rating downgrade increased...

Chicago county faces $108 billion gap in pensions....

Greek Streets 'Explosive'...
PM wins confidence vote 'but outlook remains dire'...

Huntsman announces presidential bid at Statue of Liberty...
Harry Reid endorses...
Bachmann surges to primary lead...

Iraq hunting $17 billion missing after U.S. invasion...
NATO NIGHTMARE: 9 CIVILIANS KILLED [NATO strike kills 15 Libyan civilians]

Census: Whites lose majority among babies...
German Giant Says US Workers Lack Skills...
PAPER: AMERICA'S LOST DECADE?
States look to Internet taxes to close budget gaps...

SPANIARDS ON MARCH OVER BLEAK PROSPECTS...

House will move this week to limit funding for effort in Libya...

'DON'T BE SURPRISED IF ATHENS GOES UP IN FLAMES'...
GREEK PM PLEADS FOR UNITY!
...warns against default
Threat to downgrade Italian debt raises contagion fears...
Princess Diana Conspiracy Movie Headed to Theaters... [ Uh, oh! Time to gear up the already harsh ‘censors’ in england.   ]

PAPER: AMERICA'S LOST DECADE?

Bachmann: Obama 'has failed' blacks, Hispanics... [ Come on! ‘Wobama the b’ (for b***s*** has failed everyone. ]
Presidential no-show miffs Hispanics...
African-American unemployment at 16%... [ But there’s rationality in this stat as people avoid their disgustingly uncivilized noisy rap ‘boomboxes’. Then there’s the attitude. I truly believe from direct experience that even when their outright aggression, assaults on persons and the senses, and otherwise obnoxious behavior is not apposite, the personality disorder ‘passive / aggressive’ is applicable, however indirectly expressed.  ]

SHE'S OFF! (on the road again) Michelle Obama embarks on Africa visit … (stay there!) ...
Michelle Obama Admits: 'Fortunately, We Have Help From The Media'...
CHICAGOLAND: Rahm's Top Cop Blames Gangs, Crime on 'Gov't-Sponsored Racism'...
Likens federal gun laws to 'racism'...

Teen Mob Of 50 Hits Chicago WALGREENS...
Teen brutally beaten by mob of  blacks; cops mull 'lynching' charge...
Princess Diana Conspiracy Movie Headed to Theaters...  [ British queen arrives in Ireland Queen Elizabeth II’s visit overshadowed by security scares. (Washington Post) [ ‘How sweet she is’ … that ‘sweet liz’ … that is …   Diana film causes stir at Cannes  “Unlawful Killing” has a combination of celebrity, controversy and canny hype-mongering. (Washington Post)  [ Let’s not kid ourselves … and, Dodi Fayed’s father was no dope and knew the score. Indeed, it’s not coincidental that William’s the over-riding favorite of granny Liz II; after all, Harry’s the bastard son of Hewitt (don’t buy into their DNA proffer which they did buy – you know, that ‘bloodline thing’). Moreover, it was reported that Diana had another ‘potential challenger in the oven’ at the time of her death and we all know how dicey such english affairs of state can be (ie., Henry VIII, Richard III, etc.). Then there’s the contempt of Diana for having brought the son of her bosom, Chas, down. Do I think she said flat out ‘kill Diana’. No … more of a ‘do what’s necessary’ to mi6 et als. Ultimately, William will require some substantial therapy to sort out this looming conflict. After all, Diana was his mother.   Drudgereport:  British woman decapitated in grocery store; killer flees with head...      Cannes: Diana doc slams UK royals as 'gangsters'...  ]
Drudgereport:
Protesters burn American flag during Obama visit to Puerto Rico -- a U.S. territory...  [ I find even his retirement costs objectionable. Obama: My family is ‘fine’ with one term Politico | President Barack Obama says his family is “not invested” in a second term. The unctuous pandering by the wobamas is nauseating. And, michele’s fundraisers? What’s up with that? Wobama’s such a glomming golem / slug. Obama says if he were Weiner, he’d resign  President Obama on Monday waded into the debate over whether embattled Rep. Anthony Weiner should step down, saying, “If it was me, I would resign..Barack Obama: The Naked Emperor Shocking but true revelations from David Icke| ..Obama is just more of the same, a big smile with strings attached, and controlled completely by those that chose him, trained him, sold him and provided his record funding, kept his many skeletons under wraps, like the gay sex and crack cocaine .. Larry Sinclair (from affidavit: 1. Who is Ron Allen that claims to be with your Presidential camp, who is alleged to claim that someone claiming to represent me called asking for $100,000, to keep me from coming forward about our (Obama and I) November 1999 encounter of sex and cocaine use?), ... Obama is just another Banksters' moll prostituting himself .., and that's why he supported the grotesque bail-out of the banking system and why he will always put their interests before the people. ] http://albertpeia.com/obamadeceptionhighqualityversion.flv