11-7-11
POSTS
http://www.albertpeia.com/todayspage.htm
http://albertpeia.com/fbimartinezcongallard.htm
New
allegations could topple Cain’s support After eight days of accusations and
denials of alleged sexual harassment by Herman Cain, the specific and explicit
nature of the new allegations could threaten his position among a core group of
supporters. (Washington Post) [ Yeah … things are getting downright biblical,
even ‘apocalyptic’ if you will; what, with ‘the mark of cain’; the book of
‘revelation’ in that new ‘book of job’ as in b*** job; the new ‘tale of two
cities’ called ‘sodomy and gamova’. Then there’s the updated quid pro quo prohibitata;
viz., give a (b***) job to getta job. Ouch! Don’t look back, brother cain, he’s
been told a lot … sounds like a plan. 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.
http://www.albertpeia.com/todayspage.htm
http://albertpeia.com/fbimartinezcongallard.htm
http://www.albertpeia.com/todayspage.htm
http://albertpeia.com/fbimartinezcongallard.htm
No
time for complacency on Iran Its nuclear program has accelerated and could
produce a bomb before the world realizes. (Washington Post) [ Hopefully, quite right … Iran should be
encouraged to hurry a nuke program to thwart the consistent israeli real nuke
threat to Iran and in the region, generally. After all, israel has illegal
nukes, violates international law / u.n. resolutions with impunity, commits war
crimes; and, although there are dubious claims that Iran has / is close to
having them, such israeli lies, as always, lack credibility (much like the
wmd’s in Iraq). No smoking gun: IAEA Iranian nuclear report falls flat on
its face Patrick Henningsen | The IAEA report has
come up short, but the Axis powers are still desperate to hit Iran (is america
once again ready to self-defeatingly sacrifice itself for ‘greater zion’. Among the many attributes of the great but
underrated President General Eisenhower, a man of honor, was that he never,
never took any crap from america-dependent-dependant / albatross israel. ) Drudgereport: RUSSIA [ The Rational
Pan-European Nation ] WARNS AGAINST STRIKE ON IRAN... , TRUTHFUL TRASH
TALK (ABOUT ISRAELI TRASH) BEHIND ISRAELI LEADER'S BACK Report:
Sarkozy calls Netanyahu 'liar' Microphones accidently left on after G20 meeting pick up private
conversation between US, French presidents. Sarkozy admits he 'can't stand'
Israeli premier. Obama: You're fed up with him? I have to deal with him every
day! , Ron Paul: US Should Offer Friendship To Iran Not War Fox
News | The Congressman offers some sound advice on foreign policy. Herman
Cain’s 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, there’s 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. IT’S OVER: Cain Is
Done Business Insider |
The scandals swirling around Herman Cain today will be fatal to his
presidential ambitions. ] ... ).
http://www.albertpeia.com/todayspage.htm
http://albertpeia.com/fbimartinezcongallard.htm
A supercomputer’s window to a nuclear bomb Supercomputers, which offer scientists new ways to test the U.S. arsenal, are also helping unravel the mysteries of nuclear explosions. But debate continues over whether mathematical computer simulations can completely replace underground explosive testing. (Washington Post) [ Who’s dumb enough to care? When you’re talking about such destructive capability and an aftermath, inclusive of fallout, that’s as grim, I can only borrow from my limited french vocabulary and ask, ‘Quelle est la difference?’ Supercomputers / simulations will do just fine for that purpose, thank you very much. After all, what’s a square mile, 10,000 bodies, more of less, relative to the horrific destructive potential. I need not in somewhat hackneyed fashion remind of the moral to the story in ‘War Games’, the film in which the ‘wiser-than-man’ supercomputer named Joshua concludes (paraphrasing) that ‘nobody wins … everybody loses in such a game … and it’s best not to play’. (Don’t forget israel’s illegal nukes which are ultimately the ‘ignored / protected’ threat in the Middle East which embolden israel et als while giving rational incentive to comparable countermeasures on the part of other nations therein.
Nobel
Prize-Winning Economist: “War Is Widely Thought To Be Linked To Economic Good Times … NONSENSE” Washington’s Blog | Contrary to a
Common Myth, War is Bad for the Economy Washington’s 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 decade’s Iraq war has
been very bad for the economy. See this, this andthis.
A No-Brainer
This is a no-brainer, if you think about it.
We’ve been in Afghanistan for almost twice as
long as World War II. We’ve been in Iraq for years longer than WWII. We’ve 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, don’t 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 we’ve
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 spendingwasn’t 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 can’t 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 America’s 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.
It’s 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
America’s 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…
It’s 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 we’re running up our debt (which will eventually
decrease economic growth), but the only jobs we’re creating are military
and other public sector jobs.
PhD economist Dean Baker points out that America’s 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 Insight’s 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 we’re 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 America’s 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.
“We’re going to have to do
that if it’s
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 Eisenhower’s 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 can’t 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, America’s 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 this, this, this, this, this, this 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.
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.’
http://www.albertpeia.com/todayspage.htm
http://albertpeia.com/fbimartinezcongallard.htm
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?
FROM:
TO:
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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?
FROM:
TO:
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but
precluded 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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/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 … I’m sure he’d get an earful of sound reasons. Then again, maybe Mr.
Krauthammer might not be listening; after all, as a jewish man himself, he’d
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. Krauthammer’s 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 israel’s 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:
- Withdrawal of Israeli armed forces from territories occupied in the
1967 war.
- Termination of the state of belligerency.
- Mutual "acknowledgement of the sovereignty, territorial
integrity and political independence of every State in the area, and their
right to live in peace within secure and recognized boundaries free from
threats or acts of force."
- Achieving a just settlement of the refugee problem.
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]’
[Yeah…those ‘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]
[Yeah…those ‘zionist expectations’ can really be a bi**ch /
deal-breakers when searching for peaceful resolutions! ]
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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.
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...
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'...
[Yeah…those ‘zionist expectations’ can really be a bi**ch /
deal-breakers when searching for peaceful resolutions! ]
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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.
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 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). ]
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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
]
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. ]
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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but
precluded 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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, 2011By 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
11-7-11 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! Suckers’ rally into the
close off lows! HFT TRADING RULES MONDAY Dave’s
Daily: http://www.etfdigest.com 11-7-11 ,
Italy: Too
Big to Fail, Too Big to Save? Nov 7th, 2011 (CNBC) , Italian
Debt Crisis Has Global Markets on Edge. Here’s Why It Matters to You JK Comment: The Daily Ticker guys
offer some interesting insight on the evolving situation in Europe, and how “contagion” may not
be limited to the shore’s of Europe.’ , Presenting
The Latest Eurodebt Exposure Masking Scam Courtesy Of Morgan Stanley: Level 1
To Level 2 Transfers Tyler Durden , Here Is Today's 3pm
Rumor... Durden ‘In true
save-the-market style, as 3pm ET comes around we have another rumor from
Europe. This time it purports to be the creation of an investment fund, as a
subsidiary of the EFSF, which will 'attract' external capital sources, via
tranching of returns, to enable the purchase of sovereign debt in primary and
secondary markets. Headlines, via Bloomberg, for now suggest this is yet
another strawman…’ , No smoking gun: IAEA Iranian nuclear report falls flat on
its face Patrick Henningsen | The
IAEA report has come up short, but the Axis powers are still desperate to hit
Iran ,
10 Reasons America Will Be Judged as the Most Brutal
Empire in History http://www.prisonplanet.com/10-reasons-america-will-be-judged-as-the-most-brutal-empire-in-history.html
Activist Post | Good and evil doesn’t have a grey zone.. America and
her Western cohorts will likely be viewed as the most brutal empire in history..
Although this empire is infinitely more powerful than Rome was, it will suffer
the same fate. For every negative action the empire commits, there’s an equal
and opposite good reaction. And the goodness of humanity will always defeat
tyranny when it goes too far. However, an empire with so much to lose
will go down swinging and slinging every weapon in its arsenal, thus putting
the final stamp on their status as most brutal empire in history.’ , Greek Debt Crisis: Mark II of the Plan for a Greatest
Depression Kurt Nimmo | HSBC, a
prized bankster asset connected to the City of London, warns of a global
depression. , Hit
With Big Withdrawals, Fed Sells Assets, Borrows Cash ilene
11/06/2011 , Fed
Underestimated Economy's Weakness: Kohn TheStreet [ Another ‘duh!’ moment
from the fraudulent fed! ] , Tempted
by Europe? Don’t Be - http://www.theglobeandmail.com/globe-investor/markets/markets-blog/tempted-by-europe-dont-be/article2228163
‘ ,
Europe. Is.
Finished. Phoenix Capital... 11/05/2011 ‘Europe is
finished. The region’s entire banking system is insolvent (with few exceptions).’ Earnings
Warning Ratio Highest In a Decade
The Wall Street Journal ‘…In other words, even
as the market has rallied, the outlook for earnings has gotten worse.’ , Minyanville's
T3 Weekly Recap: Market Breaks Streak of Weekly Gains, Focus Shifts to Italy Minyanville , The Chart That's Forecasted Every Major Move Correctly Since
March 2011 Simon Maierhofer 11-4-11 ‘…major indices may just be chopping around for another week or two
before heading south for the winter…’ , SPX and NDX Update: Top May Be In as Retracement Rally Hits
Targets Jason Haver , Handicapping
a Global Market Meltdown
Minyanville , Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You The
Economic Collapse , Insider
selling surges — CBS MoneyWatch , Greenspan
Suggested Cutting Taxes on the Wealthy to Increase Debt so the Fed Wouldn't
"Lose Control of Monetary Policy" Posted by: George Washington , First
Time Unemployment Claims Increase But Less Than Usual Posted by : ilene
Post date: 11/03/2011 - There's just one minor problem. http://www.zerohedge.com/contributed/first-time-unemployment-claims-increase-less-usual Courtesy of Lee Adler of the Wall
Street Examiner "Fewer people applied for unemployment
benefits last week, a hopeful sign that the job market might be picking up,"
trumpeted the AP, in a news item picked up by news organizations across the US
and the world. There's just one minor problem. First time claims actually
increased by 9,361. The AP, and everybody else, reports a fictitious number,
the seasonally smoothed fantasy. They do that because they figure that readers
are too stupid to compare this week's performance with the same week in
previous years to see if the economy is doing better or worse. I hold no such
preconceived notion. If you are smart enough to be reading this report, then
you are smart enough to be able to compare actual numbers, as opposed to the
fake pablum spoon fed to you by the economics punditocracy…’ , Unique
Historic Precedents Suggest Lower Prices
http://finance.yahoo.com/news/Unique-Historic-Precedents-etfguide-1382828970.html?x=0&.v=1 ETFguide Simon
Maierhofer, November 3, 2011 ,
Europe is doomed — Felix Salmon http://blogs.reuters.com/felix-salmon/2011/11/03/europes-doomed-fate ‘This
is beginning to feel like 2008..’, Because
Central Banks Just Aren't Enough: G-20 Will Ask IMF To Print Reserve Currency Durden Four months ago we predicted that in response to
the latest round of global economic deterioration, every central bank would
very soon join the toner party., Today's
Joke Du Jour Comes From Italy's Biggest Bank, UniCredit , SEC
Opens Investigation Into MF Global Insider Trading, Ignores Glaring Evidence Of
Client Capital Commingling, Hugh
Hendry Channels Irony And Paradox In His Latest Financial Outlook ‘..So what’s next? A
crash, of course..’, As
Repeatedly Warned, Quarter End Window Dressing Key Factor In MF Global's Demise Tyler Durden11/04/2011 Citi:
"The Bear Market Rally Is Behind Us; We Anticipate A Move To
1,000-1,015" by Tyler
Durden 11/02/11 , 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?
Durden, Game
Over Berlusconi? Italian Anti-Crisis Bill Fails
Durden, Egan
Jones Downgrades Jefferies On Concerns About Sovereign Exposure Amounting To
77% Of Equity Durden , Guest
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 Whimper Tyler Durden , Keeping
Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of
Client Money Durden , 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 Inflation Durden ,
Keeping
Up With The Korzines In The Kooler: FBI To Investigate MF Global's Theft Of
Client Money Durden, US
Food Stamp Usage Hits New Record Durden ,
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’, 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? Tyler
Durden 10/31/2011 , 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 DeathTyler
Durden 10/31/2011 , Are
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) Submitted by Phoenix Capital
Research 10/24/11 ‘…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) Submitted by Phoenix Capital
Research 10/24/11 ‘…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 Tyler Durden on 10/20/2011 , 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
Phoenix Capital
Research 10/10/2011 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 already…Originally, 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 Germany’s 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 German’s recall all-to readily that when über-easy monetary policy gets out
of control, things can go from bad to catastrophic in a heartbeat. Cashin’s 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
China’s rumored to be about to
save one of the PIIGS, italy … but who’s going to save
communist china … really … some very bad karma for communist china just ‘round the corner! Don’t forget, the market’s 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. It’s 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. Don’t 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), we’re 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 that’s 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 Today’s 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)
wouldn’t
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 months—2-1/2 years. He spent the first
year obsessed with passing Obamacare, a program that doesn’t create jobs, but might destroy a lot of them. He “bailed out” GM, but many believe that his
interference didn’t 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-Erian’s reply to Frank Motek 1070am regarding particularly the
300+ point swing to the upside today, ‘(they’re) confused’! Indeed they are! But when you’re 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 duck’s 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 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. 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 there’s 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…’
(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..’) 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 / reality…100% better? I don’t 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 … 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…’ 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 there’s 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,
that’s the problem in
large part – the economy won’t 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 d’etre 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 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.’ 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 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). 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’.] 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. Napier’s 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 Tobin’s “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
one’s 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 gov’t 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 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.’ ] 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 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! 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. 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‘ previous‘…1) Job cuts. 2 ) ISM service-sector report. Monday’s ISM
manufacturing report contributed to market losses on Monday, but
today’s
report, though equally negative, didn’t 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 isn’t 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 ‘child’s play’ is the order of the day and credit still must be
given to those [ie., Steve Jobs-I’m 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 favor…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 we’re working our way
to actual cutting by cutting to slow the pace of the nation’s 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: It’s Pretty Much Meaningless Business Insider/
Come on! Who believes their pre-election year data,
reports, b***s***? There’s 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 ceiling’s 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 there’s been a quid pro quo with at least one of the 3 (S&P, Moody’s, 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, 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) …’ 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 didn’t 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, let’s 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 can’t make any money in money
markets, they pay nothing these days!” True enough, but there are many times in one’s 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 ‘
Several
Worrying Parallels Between China And Pre-Crash Japan Patrick Chovanec |
Descriptions of what went wrong in Japan give a disturbing sense of déjà vu.
Tempted by Europe? Don’t Be - http://www.theglobeandmail.com/globe-investor/markets/markets-blog/tempted-by-europe-dont-be/article2228163 ‘Morgan Stanley European strategist, Graham Secker,
has some interesting thoughts on European stocks – as in, why not to buy them.
In his report, via FT
Alphaville, he downgraded his recommendation to “underweight” arguing in
part that even with the debt-crisis as a backdrop, the stocks still aren’t
cheap.
For one thing,
that 4 per cent dividend yield might be attractive and its premium over
government bond yields is a rarity over the past 50 years. However, stocks
often yielded more than government bonds prior to the 1960s, suggesting that
the premium doesn’t have to disappear any time soon.
“In reality, this spread is a reflection of investors’ appetite for risk, and
it is possible that risk aversion can stay higher going forward due to concerns
over the structural outlook for [developed market] economic growth and
increasing geopolitical risk/social unrest,” Mr. Secker said in his
note.
For another,
cheap stocks can get cheaper. The strategist uses the so-called Shiller
price-to-earnings ratio to get a reading on valuation – factoring in 10 years of
data to smooth out swings in the economic cycle – and found that the price-to-earnings
ratio for European stocks is just 12.3. However, he expects that the PE ratio
could fall into the single digits, implying a 20 per cent downside.
“To use seasonal parlance, we believe the market’s strong bounce in
October will prove to be more of a trick than a treat,” he said. “While the market may hope
this is the start of a longer-lasting rally into year-end, we suspect this is
just a traditional counter-trend rally in an ongoing bear market.” ‘
Hit
With Big Withdrawals, Fed Sells Assets, Borrows Cash Posted by: ilene
Post date: 11/06/2011 - 17:13 We'll have to see what hits the fan this week.
How
to Trade This Headline-Driven Stock Market Minyanville Chris
Vermeulen Nov 07, 2011 ‘This is a tough
market to trade in. Consider focusing attention on high-probability, low-risk
trade setups until directional biased trades make more sense.
With
all eyes on the unemployment report and Europe, the CME Group’s PR department
nearly created an all-out panic with their announcement after the market close
on Friday relating to futures maintenance margin. The original statement was
vague, and I was quite concerned until I checked out the CME Group’s web page
and the PR department sent an update clarifying their position. At this point I
think the crisis has been averted, but this is just another reminder that we
live in interesting times.
Keep in mind that if the CME starts raising margin rates across the board for
futures contracts in order to protect themselves, stocks and commodities could
collapse. Silver recently had its margin rates increased and since then dropped
25% in value. So imagine if they raised the rates for more commodities…
The current price action in the marketplace pales in comparison to the world’s
geopolitical tensions and deteriorating social mood. In my trading career, I
have never seen the price action in the indices react so violently to intraday
headlines and rumors. Risk is high and the types of traders profiting from this
market are day traders and very short term traders with trades lasting
just a couple hours to 24 hours in length. Aggressive trading with small
position sizes is all that can be done right now. This is not meant to be
investment advice, but taken more as a function of the market environment in
which we find ourselves currently trading.
Right now it is hard to say where price action in the broader indices heads in
the short-run. One headline out of Greece or Italy could dramatically
alter economic history. In the intermediate term I remain neutral to bearish
for a number of reasons. One indicator I follow is the bullish percent index on
the S&P 500, which at this point is arguing for lower prices.
The
chart below illustrates the S&P 500 Bullish Percent Index:
http://image.minyanville.com/assets/FCK_Jan2011/images/LisaCatchSEPT2011/dec1.png
As can be seen above, the S&P 500 Bullish Percent Index is presently at an
overbought status. When looking at the relative strength and full stochastics
indicators one would argue that a pullback is warranted. Historically when the
S&P 500 Bullish Percent Index is this overbought, a pullback ensues which
ultimately sees the S&P 500 Index selloff. The more arduous task is trying
to determine just how deep the pullback on the S&P 500 Index might be.
It is critical to point out that while I do believe a pullback is likely, I
will not rule out a rally into the holiday season. Much of the near-term price
action is going to be dictated by headlines coming out of Greece and the rest
of Europe. In addition to Greece, Italy is also starting to see increased
concern regarding an unsustainable fiscal condition. Depending on how the
European Union handles the varying degrees of risk in the near term, we could
see price action react violently in either direction.
With the market is capable of moving in either direction, I wanted to point out
some key price levels which should act as clues regarding potential future
price action in the S&P 500. The two key support levels to monitor on the
S&P 500 Index are the 1,240 and 1,220 price levels.
The
daily chart of the S&P 500 Index below illustrates the price levels:
http://image.minyanville.com/assets/FCK_Jan2011/images/LisaCatchSEPT2011/dec2.png
For bullish traders and investors the key price level to monitor is the recent
highs on the S&P 500 around the 1,290 area. The weekly chart below
demonstrates why this price level is critical and which overhead levels will
offer additional resistance should the recent highs be taken out to the upside.
S&P
500 Weekly Chart Analysis:
http://image.minyanville.com/assets/FCK_Jan2011/images/LisaCatchSEPT2011/dec3.png
While I am neutral in the intermediate to longer term presently, in the short
run I have to lean slightly bearish simply because of the future headline risk
and also because a major head and shoulders pattern has been carved out on the
hourly chart of the S&P 500 Index. This type of chart pattern is synonymous
with bearish price action.
The
hourly chart of the S&P 500 Index is shown below:
http://image.minyanville.com/assets/FCK_Jan2011/images/LisaCatchSEPT2011/dec4.png
Right now I remain slightly bearish, but should the head and shoulders pattern
fail and/or we begin to see multiple positive reactions to news coming out of
Europe, a strong rally into the holiday season is likely. Unfortunately all we
can do is monitor the key price levels and wait patiently for Mr. Market to tip
his hand.
Until we see a breakout in either direction, we could see price action inhabit
the 1,220-1,290 price range for several weeks before we get any more clarity of
future direction. Until I see a breakout, I will remain relatively neutral with
a slight short term bias to the downside based on price patterns in the shorter
term time frames. This is a tough market to trade in, and I don’t want to get
chopped around or do any heavy lifting. I’m going to focus my attention on
high-probability, low-risk trade setups until directional biased trades make
more sense.
In closing, I will leave you with the thoughtful muse of the late Texas
Congresswoman Barbara Jordan: “For all of its uncertainty, we cannot flee the
future.”
Europe. Is.
Finished. Posted by: Phoenix Capital... Post date: 11/05/2011 - Europe is finished. The region’s entire
banking system is insolvent (with few exceptions). European non-financial
corporations are running massive debt to equity ratios. And even EU sovereign
states... ‘
HFT
TRADING RULES MONDAY Dave’s Daily: http://www.etfdigest.com November
07, 2011
‘All things considered it was another
volatile day with another large swing in stock indexes. (The DJIA swung roughly
200 points) The HFT driven rally in the afternoon was led primarily by rumors
of some resolution in Italian political rule and debt. Also rumors of a new
Greek government leadership coalition were making the rounds. Despite some
nervous optimism over Italy and Greece the trend in Europe is toward recession.
The chart below shows the disintegration of a key recession determinant—Retail Sales.
http://i238.photobucket.com/albums/ff171/flyfry/new%20album/11071-1.jpg
There was
little economic data of consequence other than consumer credit expanded with
student loans (developing scandal) and auto loans (easy to get) leading the way
higher while credit card debt declined.Other than these issues there wasn’t much news. Amgen (AMGN)
was a market leader stating it authorized the buying of $5B of its stock, Dish
Network (DSIH) said it would pay a $2 dividend and the Kyle Bass hedge fund had
filed it owned nearly 5% of mortgage maker MGIC Investment Corp (MTG)
encouraged one would think the housing market was near a bottom.Gold prices
rallied $40 close to $1800 on Italian debt worries. The dollar was unchanged,
base metals and crude oil were higher (Iran worries) and even bond prices
managed to close higher.Volume was comparatively light while breadth was mostly
positive with the NASDAQ lagging.’
Germany at Its
Rubicon Posted by: testosteronepit Post date: 11/07/2011 - 21:49 No
country is economically more dependent on the euro than export powerhouse
Germany. But now that the euro extravaganza slammed into a mountain of debt,
Germany finds itself at war—with itself.
China’s gold imports jump sixfold Nov
7th, 2011 (Financial Times) — Chinese gold imports from Hong
Kong, a proxy for the country’s overall overseas buying, leapt
to a record high in September, when monthly purchases matched almost half that
for the whole of 2010.
The buying spree follows a sharp drop in the price of
the precious metal. After hitting a nominal all-time high of $1,920.30 a troy
ounce in September, gold fell to a three-month low of $1,534 an ounce later in
the month. Chinese investors snapped up the metal as prices fell.
Analysts
expect the September import surge to continue until the end of the year as
Chinese gold buyers snap up gold in advance of Chinese New Year, China’s key
gold-buying period. [source]PG
View: Gold went on sale in September and the Chinese snapped it up!
Operation
Twist: NY Fed purchases $2.697 bln in Treasury coupons with a maturity range of
Feb-2036 to Aug-2041. Nov 7th, 2011 News
The Daily Market Report
Nov 7th, 2011 Gold Continues to Retrace September Losses
(USAGOLD) — Gold continues to advance on strong safe-haven interest and the
61.8% retracement level (an important Fibonacci level watched by technicians)
has been surpassed at 1772.88. The yellow metal is trading comfortably back
above the 50-day moving average and the 20-day has crossed back above the
100-day. All of this is strongly suggestive that the dominant uptrend in gold
is re-exerting itself.
http://www.usagold.com/pete/newsviews/20111107goldchart.jpg
Europe remains a mess. While Greece’s
embattled Prime Minister George Papandreou has agreed to step down to make way
for a unity government, formation of the new government has proven more
difficult than expected. Meanwhile, rumors that Italy’s PM
Berlusconi will also resign have been refuted, even as yields on Italian
sovereign debt reached 14-year highs. The yield on 10-year bonds traded as high
at 6.67%, dangerously close to the perceived tipping point into insolvency of
7%.
Germany pretty much put an end to speculation that
Europe’s gold had been pledged to collateralize the new and
improved leveraged EFSF. German Economy Minister Philipp Roesler said quite
succinctly that, “German
gold reserves must remain untouchable.” Germany however continues to
think that periphery nations that are in trouble — like
Italy for example — should sell their gold to lesson the need for bailouts from
core-Europe. Nonetheless, as we saw when the topic of Greek gold sales was
broached earlier in the year, even in the direst of circumstance, sovereigns
continue to view their gold as “untouchable.”
That’s quite a fascinating mindset;
that even on the verge of default — when all liquid assets should
arguably be in play — nobody wants to give up their gold, or even pledge it as
collateral. Such a mindset probably hurries countries like Greece and Italy
along the path to default, but presumably they’re
thinking that the integrity of their gold reserves will give them at least
something to build off of on the other side.
This is
hardy a mindset that one would associate with a “barbarous relic.” In fact,
this makes gold exactly the kind of asset that everyone should seek to own as a
hedge against any number of risks.
Italian
Debt Crisis Has Global Markets on Edge. Here’s Why It Matters to You
Nov 7th, 2011 JK Comment: The
Daily Ticker guys offer some interesting insight on the evolving situation in
Europe, and how “contagion” may not be limited to the shore’s of Europe.
Italian
Gold Sale Again Proposed in Germany Nov 7th, 2011 (ResourceInvestor) —
Senior German politician, Gunther Krichbaum, a lawmaker in German Chancellor
Angela Merkel’s governing coalition and Chairman of the Committee on the
Affairs of the European Union of the German Bundestag has proposed that Italy
sell its sizeable gold reserves in order to lower its debt.
Krichbaum, who chairs the German parliament’s European
Affairs Committee, was quoted as saying in the Rheinische Post that Italy’s gold
reserves are relatively high and could be used to pay off their sizeable debt.
Using periphery nations’ gold
reserves as collateral has been on the agenda in Germany for some months with
many influential German politicians calling for debtor Eurozone nations to sell
their gold reserves.
Angela Merkel’s budget speaker and his
opposition counterpart urged Portugal to consider selling their gold in May of
this year.
…Gold’s value as
money and as a strategically important monetary asset is being slowly realized
again.[source]
German
econ min: gold reserves cannot be touched Nov 7th, 2011 (Reuters) — Germany
Economy Minister Philipp Roesler said on Monday the country’s gold reserves
with the central bank cannot be touched, adding his voice to opposition to an
idea reportedly discussed at the G20 summit of using reserves to boost euro
zone bailout funds.
“German gold reserves must remain untouchable,” Roesler,
who is head of the Free Democrats (FDP), a junior partner in Chancellor Angela
Merkel’s coalition, told ARD television.
The Bundesbank (German central bank) and a spokesman
for Merkel already said over the weekend that they too ruled out the idea
reported discussed at the summit of Group of 20 leading economies last week.[source]PG
View: …which begs the question: In the midst of a major financial
crisis, why would any particular asset be deemed untouchable by pretty much
everyone from Germany to Greece? Whatever the reason, that’s the kind
of asset I want.
Italian
yields hit 14-yr high; Berlusconi eyed Nov 7th, 2011 (Reuters) — Benchmark
Italian government bond yields rose on Monday to their highest since 1997 —
approaching levels seen as unsustainable — as political turmoil threatened to
drag the euro zone’s third largest economy deeper into regional debt crisis.
Italy faces a crunch vote on public finance in
parliament on Tuesday and the centre-left opposition said it was preparing a
motion of no-confidence in the government that would bring Prime Minister
Silvio Berlusconi down even if he should survive Tuesday’s vote.
…Italian yields earlier hit their highest in 14 years at 6.67
percent. Many analysts say yields above 7 percent would make funding costs
unsustainable.[source]
Italy: Too
Big to Fail, Too Big to Save? Nov 7th, 2011 (CNBC) — Italy’s economic
problems took center stage Monday as its government, led by increasingly
threatened Prime Minister Silvio Berlusconi, faced yet another key vote.
The health of the euro zone’s
third-largest economy has come into focus despite Berlusconi accepting IMF
monitoring and surviving several confidence votes in recent months.
Italy’s size makes the potential
consequences if it were to fail more wide-ranging than the much smaller Greece.
“Italy has much more systemic implications,” Thanos
Vamvakidis, Head of European G10 FX Strategy, BofA Merrill Lynch Global
Research, told CNBC Monday.
“It’s too big to fail, too big to save.” [source]
Gold
Prices Climb More Than 1% on Safe-Haven Buying Nov 7th, 2011 (IBTimes) —
Gold prices climbed from eastern Asia to Western Europe Monday as worries about
Europe’s sovereign debt crisis spreading to Italy offset news that Greece’s
prime minister will resign.
George Papandreou offered to resign Sunday after his
shock call last week for Greeks to vote on whether to let the European Union
save the nation from default. Presumably his successor will be able to work
with the EU and the International Monetary Fund towards what is being termed an
“orderly” default.
Such encouragement as Papandreou’s imminent
resignation produced among traders early Monday was offset by growing fears
that Italy is close to taking Greece’s place as the next nation in need
of a rescue.[source]
Berlusconi
rejects pressure to quit, Italian crisis grows
Nov 7th, 2011 (AP) — Premier
Silvio Berlusconi rejected reports that he would resign so a new government
could more forcefully push through economic reforms, even as Italy’s
borrowing rates spiked Monday to a euro-era high.
In the last few weeks, Italy has become the new focus
of the eurozone debt crisis, as its debts are huge, its growth is slow, and its
economy too large to bail out. Investors want the government to quickly pass
measures to boost growth and cut debt, but Berlusconi’s majority
in parliament is weakening by the day.
There is growing concern that Berlusconi himself is
the problem because he no longer commands enough loyalty among lawmakers to
ensure the quick reforms that European and international financial officials
say Rome must achieve to avoid a dramatic debt crisis like that bringing Greece
to its knees.[source]
Presenting
The Latest Eurodebt Exposure Masking Scam Courtesy Of Morgan Stanley: Level 1
To Level 2 Transfers
Submitted by Tyler Durden on
11/07/2011
For the
latest gimmick to mask PIIGS sovereign debt exposure (where we already know
that the traditional fallback of "gross being irrelevant and only net
being important" crashed and burned today after Jefferies offloaded precisely
half of its gross exposure, while raising net, thereby confirming that gross
exposure is indeed a risk), we turn yet again to Morgan Stanley. As a
reminder, despite our note that the company's gross exposure (which is now a major
risk factor, thank you Rich Handler for proving
our "bilateral netting is flawed" thesis) to French banks alone
is $39 billion, Morgan Stanley downplayed this by saying that only $2.1
billion is the actual net funded exposure to Peripherals Eurozone countries.
We'll see if Jack Gorman will have to revisit his defense after today's
Jefferies action. Well as it turns out, we now have gimmick number two, one
which will surely delight the bearish investors out there looking to find a
bank doing all it can to mask not only its gross but net exposure (and
wondering why it has to resort to such shenanigans). Presenting the
Level 1 to Level 2 switcheroo, courtesy of, who else, Morgan Stanley.
Guest
Post: Central Asian Setback For The U.S. Military
Submitted by Tyler Durden on
11/07/2011
The last few weeks have seen the
U.S. Department of Defense suffer a number of setbacks in its effort to retain
military influence overseas. First came the startling announcement on 21
October, when President Obama announced that all American troops would be
withdrawing from Iraq by 31 December under the terms of the Status of Forces
Agreement. Accordingly, 39,000 U.S. soldiers will leave Iraq by the end of the
year. The deal breaker? Washington’s demand for continued immunity for any
remaining U.S. troops, and the Iraqi government of President Jalal Talibani
couldn’t, or wouldn’t, deliver. Now the handwriting’s apparently on the wall
further east, as Kyrgyz president-elect Almazbek Atambaev firmly told the
United States on 1 November to leave its Manas military air base outside the capital
Bishkek when its lease expires in 2014.
Swing
And A Miss: Complete Hedge Fund October Score Card
Submitted by Tyler Durden on
11/07/2011 - 21:50 Brevan Howard Greenlight Japan Pershing Square
Reuters Third Point
With the
near record October hope rally a distant memory now, the hope that hedge funds
participated in it is also just that. Alas, while most hedge funds exhibited a
more than 1x beta on the way down in August and September, most were lucky to
get half the upside on the way up in October at best. While there are some
outlier surprises, unfortunately it is the ones with an abysmal Sharpe Ratio,
so for investors who enjoy huge drawdowns and massive month-to-month vol, they
probably lucked out in October. Everyone else: better luck next time. Some very
notable let downs: Brevan Howard: -1.25%, Tudor: -2.44%, Moore Global: -2.23%,
Landsdowne: -0.50%, Bluecrest: 0.43%, Perry: 3.39%, King Street: -0.04%, Blue
Mountain: 0.73%, Fortress Macro: -2.19% and last and probably least JAT
Capital: -13.7%.
Guest
Post: Too Big to Fail: Championing the Slow Decline
Submitted
by Tyler
Durden on 11/07/2011
The recent
implosion of MF Global has reignited the debate over Too Big to Fail (TBTF) and
the adequacy of U.S. regulatory safeguards. It has also contributed to a broader
decline in investor sentiment, many of whom believe the market structure does
not afford them sufficient protection and fair competition. Many MF Global
clients still have assets frozen and even if they ultimately recover the money,
the short-term consequences can be devastating. Historically, when firms
fail to generate a profit or when one division damages the revenue stream of
the whole firm the unprofitable assets are divested. Companies that can’t operate
under the weight of their own size end up spinning off the parts that caused
the pain. This is normal in the business cycle. The government has disrupted
the business cycle of creative destruction by championing TBTF firms over a
more competitive market.
Is China
Gold's First Overseas Purchase A Harbinger Of A Gold Miner Roll Up?
Submitted by Tyler Durden on
11/07/2011
Gold has
retraced over 60% of its September swing high to low - rallying almost 12% off
late September lows. Whether by cause or effect, it seems our stimulus-driven,
vendor-financing, USD-heavy, mercantilist neighbors across the Pacific have
decided the time is right to BTFDs in gold and gold miners as today's South
China Morning Post notes "China Gold to buy Central Asia mine".
Jery Xie Quan, VP of China Gold, further noted that was also negotiating
potential mine acquisitions in Canada and Mongolia, which are either in
advanced development or close to starting production. Are the Chinese using their
excess USD to purchase gold-producing assets? Who knows but it may help explain
the relatively strong performance of the EUR against the USD as the former
region deteriorate fast.
Consumer
Credit Rises As Uncle Sam Funds More Subprime Car And Student Loans; Revolving
Credit Drops
Submitted by Tyler
Durden on 11/07/2011
Superficially,
it was all smiles following the announcement of the September consumer
credit number which rose by $7.4 billion on a seasonally adjusted basis, on
expectations of $5.2 billion (and down from the revised $9.7 billion borrowed
in August). However a quick look under the surface reveals the same old
trickery we have grown to know and love: revolving credit declined by $627
million, while the entire growth was in Non-revolving borrowing, which rose by
$8 billion. What does non-revolving credit fund? Why auto loans (read subprime
GM car loans) and student loans of course, the latter being the very same loans
which even the president now is saying have to be reduced. As for the former,
the G.19 now no longer even bother to report such data as Loan to Value,
Interest Rates, Maturity and Amount Financed: analysts are left to imagine the
best possible outcome. And just to confirm where consumer credit in 2011 has
come from, of the $32 billion in credit issued YTD, $89.7 billion of it comes
from the US government. The only other positive source of credit in 2011, for
the whopping amount of $1 billion are savings institutions. Every other
traditional source of credit is now... a drain.
RANsquawk
Market Wrap Up - Stocks, Bonds, FX etc. – 07/11/11
Submitted by RANSquawk Video on
11/07/2011
Volumeless
Levitation Sends Market To Closing High As VWAP Unchanged On The Day
Submitted by Tyler Durden on
11/07/2011
With
volume in S&P futures more than 20% below average, the afternoon's
rumor-mill managed to juice stocks to overnight highs, well ahead of credit
once again and more than two standard deviations above the day's VWAP.
Interestingly, today's VWAP and Friday's VWAP were within 1 S&P point,
rather coincidental given the 2% swings from high to low to high during the day
- suggesting little in the way of active real-money participation as opposed to
correlation-driven excitement.
Did
Kyle Bass Turn Bullish On Housing, And Does It Mean Substantial Upside For
Mortgage Insurers?
Submitted by Tyler Durden on
11/07/2011
For some
actually relevant news, instead of market kneejerk reaction comments, we turn
to the WSJ, whose Nick Timiraos points out an important inflection point,
namely that Kyle Bass, one of the best hedge fund managers of his generations,
may have turned moderately bullish on housing. To
wit "A closely followed hedge fund manager known for correctly betting
on the housing market’s collapse four years ago purchased a small stake in the
nation’s largest mortgage insurance company in a bet that the
housing market has neared bottom. J. Kyle Bass, portfolio manager at
Dallas-based Hayman Capital Management LP, bought the 4.9% stake in MGIC
Investment Corp, according to federal filings. He said on Monday the bet
reflected his view that the housing market’s losses had largely been
absorbed. “You can see that the pig has moved through the python in
terms of U.S. housing losses,” he said. Shares of MGIC are about
10.2% higher in Monday afternoon trading, to $2.82." The Heyman Capital
filing can be found
here.
Here Is Today's 3pm Rumor...
Submitted by Tyler Durden on
11/07/2011
In true
save-the-market style, as 3pm ET comes around we have another rumor from
Europe. This time it purports to be the creation of an investment fund, as a
subsidiary of the EFSF, which will 'attract' external capital sources, via
tranching of returns, to enable the purchase of sovereign debt in primary and
secondary markets. Headlines, via Bloomberg, for now suggest this is yet
another strawman and given the concessions on this morning's EFSF issue, just
who exactly is going to be investing in this levered product and why? Equity
markets remain 'exuberant' relative to credit though HY is slowly catching up
to the intraday heights of the S&P 500 futures. It really doesn't
sound like anything but the beginnings of the structure of the SIV for the EFSF
that we have been discussing for a couple of weeks now.
While
Banks Are Being Shorted With Impunity On Euro Sovereign Debt Panic, Did Someone
Forget About BlackRock?
Submitted by Tyler
Durden on 11/07/2011
Why?
Primarily because of this innocent
statement by former R3 scion and former Lehmanite Rick Rieder, currently
employed by the firm that ostensibly has more clout than even Goldman Sachs:
BlackRock. From October 21 "BlackRock Inc. Chief Investment Officer Rick
Rieder said the world’s biggest
money manager remains a buyer of Italian government debt as
European policy makers gather to address the region’s
sovereign debt crisis. "Italy is attractive,” Rieder
said during an interview on “InBusiness With Margaret Brennan” on
Bloomberg Television. “As long as we are moving toward solutions, we think
Italy is very reasonable at these levels. BlackRock, which manages
about $3.66 trillion in assets, has also been buying debt issued by financial
firms and high- yield bonds, Rieder said. As with the Italian bonds BlackRock
has bought, the financial debt will benefit “as soon as
you see stability,” Rieder said." Uh, Rick, you are marking to market
right? Because Your P&L would be a 100% correlation to the following chart,
which shows BTP prices since October 21.
Meanwhile
"Global Bailout Fallback Plan B" China Is Pumping 1 Trillion RMB Into
Its Banks
Submitted by Tyler Durden on
11/07/2011
Yesterday,
Barclays' Ben Powell of macro sales sent out the following note to clients,
which referenced a as of then unconfirmed report in the China Securities
Journal: "China putting 1Tr RMB into its banks?? Very positive no? The
attached bloomberg story suggests that China may inject >Tr1 Yuan into its
banks deposits before the end of the year. This is a meaningful number vs the
Tr7.5 RMB that the banks are expected to lend in 2011 as a whole. So what? 2
things. Most obviously this is cheap liquidity to Chinese banks that should see
SHIBOR continue to fall and banks shares to rise. And secondly more broadly
this would seem to suggest (again) that the rumours of easing are true. This
will add fuel to the soft landing argument that I have been pushing. Remain
long Chinese banks on very simple easing + bearishness = up thesis."
Granted the Barclays spin was to go long China (incidentally just in time for
the biggest drop in the Chinese market since October 20), but the real take
home here is that China is now actively pumping money to bail out its own banks
once again! And not just token money - €158.2 bilion. So how much money
will be left to fund the European bailout which is oh so contingent on Chinese
generosity? The short answer? Pretty much nothing, as confirmed by the fact
that today's €3 billion EFSF deal was underbid and the underwriters were
left holding about €500 million of the total issue. As usual, good luck Europe
with your multifunctional Swiss EFSF Army knife.
Desperately
Seeking Rumor Causing Latest Market Spike
Submitted by Tyler Durden on
11/07/2011 - 14:12 Donald Trump Greece International
Monetary Fund
In the
past few minutes, the market, in true stung dog fashion, has soared without
anyone even being faintly aware of what the actual news is. The consensus for
the time being is that the primary driver of the latest bout of idiocy is the
following BBG headline:
- GREEK
PRIME MINISTER MAY BE IMF'S ROUMELIOTIS, NET TV SAYS
How this
makes any sense we don't know. Supposedly the IMF being in charge of Greece
will make losses to European banks even more negligible (and Greek austerity
that much more austere) or something. We don't even pretend to comprehend this
BS any more. Obviously we would say this rumor is total BS, but with Europe now
a fully onionized continent, we prefer to keep our mouth shut.
China
Takes Advantage Of September Price Drop; Imports Record Amount Of Gold
Submitted by Tyler Durden on
11/07/2011
Remember
how virtually all "experts" speculated that the drop in the price of
gold would set off a liquidation cascade in China, where everyone was
"loaded to the gills" and at the first hint of deflation would dump
all holdings (not to mention that economic Ph.D. proclaimed the gold
"bubble" popped two months and $200 lower)? It seems that as so often
happens when all experts agree on something, it is precisely the opposite that
happens. The FT
reports that "Chinese gold imports from Hong Kong, a proxy for the
country’s overall overseas buying, leapt to a record high in
September, when monthly purchases matched almost half that for the
whole of 2010....After hitting a nominal all-time high of $1,920.30 a
troy ounce in early September, the yellow metal fell to a three-month low of
$1,534 an ounce later in the month. Chinese investors snapped up the metal as
prices fell." Fair enough: this means the natural bid under gold will
pretty much always be there, especially since the SHCOMP plunged at the same
time, and if there was truly cross asset liquidation, imports would hardly
rise. Which begs the question: if not China, then who sold?
Was the move purely a function of fears that Paulson was liquidating? Or were
rumors that various central banks are liquidating gold, actually true? We will
likely find out when the next WGC report is filed. WE will also know that the
Chinese number for total gold holdings is grossly underreported.
Guest Post:
A View From The Corner Office(s)
Submitted by Tyler Durden on
11/07/2011
We are all
quite aware of the fact that heightened volatility has become a short term norm
in the financial markets as of late. Not surprisingly, we’re seeing
the same thing in a number of recent economic surveys. The most current
poster child example being the Philly Fed survey that has shown us historic
month over month whipsaw movement over the last few months. Movement
measured in standard deviation parameters has been breathtaking. All part
of a “new normal” in volatility? For now,
yes. But over the very short term economic surveys and stats have been taking a
back seat in driving investor behavior and decision making in deference to the “promise” of ever
more money printing. Of course this time the central bank wizardry will
happen across the pond, although the US Fed is also now back to carrying out it’s own
modest permanent open market operations (money printing) relatively quietly,
but consistently, as of late. Although over the short term “money
makes the world go ‘round”, we need to remember that historic money printing in the US
in recent years only acted to offset asset value contraction in the financial
sector and did not lead to macro credit cycle acceleration engendering
meaningful aggregate demand and GDP expansion. And we should expect a
Euro money printing experience to be different? Seriously?
Wikileaks
Exposes German Preparations For “A Eurozone Chapter 11″ Zero Hedge |
A worst case scenario, says Mayer, could be that Germany pulls out of the Eurozone
altogether in 20 years time.
Italy
borrowing rates hit record
The Italian government's borrowing cost rises on fears over political
uncertainty, with 10-year bond yields hitting a euro-era high of 6.64%.
Are
RBS And NatWest The First Victims Of “Bank Transfer Day” Zero Hedge
| Earlier today we received the following email from a reader: “RBS systems are
down today – ALL of them.
Euro-Kaput:
‘Euro could be dead by end-November’ Russia Today | Greek
PM George Papandreou is aiming to form a coalition government and push through
an international bailout package.
Wall
Street Knee-Jerk Response To Favorable Greek Vote Of Confidence Zero Hedge
| Until G-Pap actually does something he has previously promised to do, he will
continue to lie and cheat in order to simply remain in power and soak up
Europe’s funding.
Guns’n'Banks:
There’s no law on Wall Street Keiser Report | Max Keiser and co-host, Stacy
Herbert, discuss error accounts and accounting ‘errors’.
SPX
and Dow Update: Sentiment Still Favors the Bears Minyanville
Fed
Underestimated Economy's Weakness: Kohn TheStreet [ Another
‘duh!’ moment from the fraudulent fed! ]
Handicapping
a Global Market Meltdown
Minyanville “There’s a real danger of a disorderly default,”
billionaire investor George Soros said in a speech in Budapest. Without support
for Greek lenders, “you’re liable to have a run on the banks in other countries
as well. That’s the danger of a meltdown.”
--
Bloomberg, November 4
’I've long said that in this business, you must stay humble or the market will
do it for you. That lesson has been particularly apt this past
week as the market dipped, slipped, ripped and now edges into a very
welcome weekend.The current events are nothing short of amazing; we are
defining world history, and our children will one day read about this in
their schoolbooks. I'm not prone to hyperbole; if anything, I'm
understating the significance of what's going down in the world.’
Stocks
Adrift As European Storm Settles Over Italy Forbes
Train Reading: Fighting Words The Wall Street Journal Mark Gongloff
Steve Jobs really wasn’t an inventor — Malcolm Gladwell in the New Yorker
Nate Silver:
ECRI chief is a “charlatan” — Business Insider
De Niro to
play Madoff in movie — Telegraph (h/t Josh Brown)
Your parents
were richer than you — Real Time Economics
What Americans
aren’t
buying —
FT Alphaville
The only man
who understood Greece’s problems is resigning — The Atlantic
Large asteroid
to cross earth-moon orbit tomorrow — Wired
Bank
executives betting on which OWS protester will get arrested next — The Onion
AMERICA’S DAY OF
RECKONING IS COMING The Reckoning Begins By Michael Moran | Posted
Monday, Nov. 7, 2011http://www.slate.com/blogs/the_reckoning/2011/11/07/welcome_to_the_reckoning_a_blog_about_american_power_.html —
Slate http://www.slate.com/content/dam/slate/blogs/the_reckoning/2011/11/07/welcome_to_the_reckoning_a_blog_about_american_power_/1320685835377.gif.CROP.article568-large.gif ‘America’s
insularity knows no bounds. This is a paradoxical statement, of course, but it’s an apt
way to describe America’s current debate about “our future,” and not a
bad way to view Washington’s strained efforts to grapple with an economy wounded by two
decades of economic Puritanism. As grand as the rhetoric may be, politicians in
the United States remain incapable of looking beyond the next election—this goes
for the haughty Democrat in the White House and goes double for the Republican
opposition. The fact is, airy-fairy optimism still sells on the campaign trail,
particularly when the day-to-day reality of the average American is so
difficult. Christian, agnostic, Jew, Muslim, or otherwise, we’re a
country of people constantly seeking redemption, and we’re suckers
for a smooth-talking messiah.
Not this time.
At the risk of breaking the hearts that throb for Rick Perry, Mitt Romney or
Barack Obama, they cannot deliver us from the future. Thanks to a catastrophic
series of decisions by presidents of both parties that radically deregulated
our financial system and arrogantly dismissed the “lessons of Vietnam” as dusty, irrelevant
history, the United States has shortened the period during which it will remain
the dominant power in the 21st century. I know, I know, all the
presidential candidates say we’re still the best! And so we are, in almost every
economic and military measure. But measurements of power are like the altimeter
of an aircraft: It’s not the altitude that matters, it’s the trajectory, and by
now most Americans finally understand that Captain America is trending
downward.
Destiny is a
big, pretentious concept. Yet today, most Americans understand what their
politicians refuse to concede—at least publicly: We’ve lost control of our
destiny. Globalization, the fairy dust proffered by everyone from Ronald Reagan
to Bill Clinton to Thomas Friedman, turns out to have some significant downside
risks. Many Americans have heard of globalization at this point, and many have
very particular opinions of it—normally associated with negatives like offshoring,
immigration or, perhaps, the complex risks of modern markets. But few really
understand its implications. Thus the continued use by vacuous news networks of
the term “nationally
televised address,” or the absurd assumption that our economic fate
rests in our own hands. The world today—a world largely forged by American economic and
foreign policy prejudices during the 20th century—now has profound
influence on our future. Every word a president says in those Oval Office
broadcasts these days resonates not just in the cozy “focus groups” in Iowa but also in the
offices of the China Investment
Corporation and sovereign
wealth funds from Qatar to Japan to Russia who hold giant slices of our
national debt. Like it or not, they have real leverage now, and evidence and
history suggests they will eventually use it.
Contrary to
what you have been told, the political game under way today ends not with
control of the White House, a plan for a balanced federal budget, or a jobless
rate suddenly hovering at a magical 8 rather than sour 9 percent. The larger
picture—the
new “Great
Game,”
if you will—is
about the speed of America’s decline from the heights of hegemony to the more
earthly altitude that 21st century gravity will impose.
This is not a
matter of choice: Relative decline has already occurred—it depends on how you
measure it. For instance, in terms of “percent of global output,” the U.S. economy has
been in relative decline ever since 1946, when it represented more than 50
percent of global GDP. Today, the U.S. is at about 20 percent, and projections
suggest China will match that slide in about 2015.
But the more
serious measurements—potential growth rates, GDP per capita, GDP itself,
only turned south relative to other global competitors recently. It is
only now, in the second decade of the post-American century, that these trends
have penetrated the thick skull of the collective national consciousness. (Even
now, some seem claim a magical power—manifest destiny? exceptionalism? prayer meetings?—will intervene and undo
the laws of physics. More on this form of dementia as this blog matures.)
So, the
situation is grim, but not hopeless. As I hope to convince you through this new
blog and in my book of the same title (coming from Palgrave Macmillan in the spring), the relative
decline America has entered requires something a good deal more complex than
fiscal austerity. The U.S. will remain the world’s most important nation
well into this century—that’s not a question. How we handle the implications of
our relative decline—not only at home, but around the world where we have
maintained the balance of power in region after region since 1945—will matter enormously.
Unraveling our global commitments in a way that does not prompt a geopolitical “Lehman Bros.” moment will be the true
test of whether the United States was, as we like to believe, better than past
hegemons.
Yet this
requires the kind of planning America has shown no penchant for since at least
the Marshall Plan of the late 1940s. More seriously, it requires a willingness
to face up to the limits of American power that recent history simply belies.
Do I think it
can be done? Yes, I do. But it will not flow from the top—and certainly not from
the current crop of incremental thinkers who run both parties. Thankfully, the
U.S. middle class—on the right and left—both seem to have reached
a “boiling
frog moment”
with regard to promises being made on their behalf. The Tea Party and Occupy
Wall Street may approach this from radically different perspectives—and indeed, they may hate
the idea that they have anything in common. But if there is one thing that
unites them, it is the sense that their futures have been mortgaged away by an
unaccountable, narrow-minded political class.
So who am I to
offer prescriptions? I’ve been around—I won’t bore you here—check out my bio on Wikipedia. In the coming weeks and months,
through Eurozone paroxysms and fiscal blindness in Washington, primary debates,
the Iraqi withdrawal, and other global events, I’ll keep my eyes on the
horizon. The American political cycle perpetually conspires to lower your
sights, to narrow the context of all you see down to a Hollywood sounds stage
that best favors a particular partisan point. Come here for the antidote, and
when you think I’m failing, don’t hold back. This is no time to pull punches: The
Reckoning has begun.’
Outlook
For A Weaker Euro As Concern Moves Toward Rome Forbes
Greece?
Ancient news compared to Italy CNNMoney.com
The Municipal
Bond Market Is Imploding Chriss W. Street | Moody’s Credit
Rating Service announced credit quality in municipal bond market falling at
fastest rate since collapse of Lehman Brothers in 2008.
Goldman
Sachs ‘escapes paying $16million bill in sweetheart deal with the taxman’ Mail
Online | Insider UK gov’t deal allows Goldman to use its offshore
status to hide mega bonus earnings
Coming
soon, the £100 fill-up as the cost of petrol in Europe soars again Mail
Online | Petrolium cartel is set to raise the price of petrol again
hurting an already cash-strapped economy
Denial,
Delusion and MSM Disinformation USA Watchdog | What is going on in the
world today is both frightening and historic.
Several
Worrying Parallels Between China And Pre-Crash Japan Patrick Chovanec |
Descriptions of what went wrong in Japan give a disturbing sense of déjà vu.
Wikileaks
Exposes German Preparations For “A Eurozone Chapter 11″ Zero Hedge |
A worst case scenario, says Mayer, could be that Germany pulls out of the
Eurozone altogether in 20 years time.
Are
RBS And NatWest The First Victims Of “Bank Transfer Day” Zero Hedge
| Earlier today we received the following email from a reader: “RBS systems are
down today – ALL of them
(11-7-11) Dow
12,068 +85 Nasdaq
2,695 +9 S&P 500 1,261 +7
[CLOSE- OIL $95.38 (-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 $1,791 (+24% for year 2009) / SILVER $34.74 (+47% for year 2009)
PLATINUM $1,645 (+56% for year 2009) Metal News for the Day / DOLLAR= .72 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 2.04% 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!
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 AARP’s 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.’
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” Washington’s Blog | Contrary to a
Common Myth, War is Bad for the Economy Washington’s 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 decade’s Iraq war has
been very bad for the economy. See this, this andthis.
A No-Brainer
This is a no-brainer, if you think about it.
We’ve been in Afghanistan for almost twice as
long as World War II. We’ve been in Iraq for years longer than WWII. We’ve 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, don’t 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 we’ve
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 spendingwasn’t 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 can’t 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 America’s 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.
It’s 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
America’s 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…
It’s 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 we’re running up our debt (which will eventually
decrease economic growth), but the only jobs we’re creating are military
and other public sector jobs.
PhD economist Dean Baker points out that America’s 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 Insight’s 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 we’re 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 America’s 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.
“We’re going to have to do
that if it’s
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 Eisenhower’s 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 can’t 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, America’s 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 this, this, this, this, this, this 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.
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, 2011 ‘John 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 we’ve seen a
ridiculous 3% move in stocks based on a “bailout” that is
nothing short of moronic (Greece is still insolvent and didn’t take a
big enough default), the financial world is actually asking itself questions
such as:
- Does giving a bankrupt nation more money right
after it defaults a good idea?
- Does requiring an additional $100+ billion in
capital for banks that need north of $1.77 trillion in new capital really
accomplish anything?
- 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
- A 50% haircut for private Greek bondholders
- European banks have eight months to raise about
$147 billion in capital
- An expansion of the European Financial Stability
facility to $1.3 trillion.
First off, let’s call this for what it is: a default on the part of
Greece. Moreover it’s a default that isn’t big enough as a 50%
haircut on private debt holders only lowers Greece’s total debt
level by 22% or so.
Secondly, even after the haircut, Greece still has
Debt to GDP levels north of 130%. And it’s 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
Greece’s
financial condition have been off by a mile, not to mention that Greece still
hasn’t
paid back its first round of bailout funds, this move is nothing short of
moronic.
The reasons are:
- The default is not big enough (I expect Greek
bondholders to get 20-30 cents back on the Dollar at best in the future)
- It accomplishes nothing of significance (Greece
is still broke), and…
- It will trigger a credit event and has the
makings of systemic risk.
Let’s 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. It’s like pouring a bucket of water into a desert and
expecting it to sprout a jungle.
Folks, let’s get honest here. This deal accomplishes nothing. It’s 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 they’re in) by the end of
2012. The credit markets know this, which is why they’re predicting more Greece
haircuts in the future. It’s 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 isn’t
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. We’re literally at most a
few months, and very likely just a few weeks from Europe’s 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.
Dave’s Daily: http://www.etfdigest.com ‘The good news is there’s a plan. The bad news is
we don’t
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 didn’t (and still haven’t 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 suspects—hedge 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. It’s easier to do
politically if you don’t care about succeeding generations. Gold, silver,
base metals, energy and most commodities rose sharply as a result. You want to
pay more for stuff don’t you? That’s 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,
Bloomberg’s
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 previously—financials. 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 Tuesday’s 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 HendrySubmitted by Tyler
Durden on 10/27/2011
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) Submitted by Phoenix Capital
Research 10/24/11 ‘…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…’
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
Reserve’s
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 month’s consumer confidence
level. This is an abysmal reading by historical standards
- 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
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. The above comes courtesy of HFT
Alert which is a program investors may purchase to monitor this activity. Their
homepage is HERE and we’ll 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 let’s 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 (again…sigh) which we’re 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 doesn’t
perk-up. This would be controversial while reinforcing how all-in the
Fed is with its Keynesian policies. It’s that if at first you don’t succeed, try, try, and
try…again
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 won’t 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 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 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 Europe’s 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, 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. 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 McDonald’s’ 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 Friday’s $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 Germany’s Angela
Merkel and France’s 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. 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) 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, 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.’ …’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.]…”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
year’s
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 state’s 20th failure of the year. State Bank and Trust Co.
of Macon, Ga., will assume all of Piedmont’s 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
week’s -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.
“We’re 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 there’s more downside in
equities,”
Mr. Applegate said.
After a strong
start to the year, U.S. stocks wavered in the summer as Europe’s 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, didn’t 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. Applegate’s 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
doesn’t
rule out a comprehensive plan to prevent a European banking crisis, but he
worries that Europe’s 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 they’re heading into recession anyway,” he said. “The European economy wasn’t exactly robust to begin
with, and it’s
hard to see how it’s 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.”
“We’re sifting through the evidence all the time, so if
it looks like we’ve got it wrong, we’ll need to change our
course,”
he said.
Mr. Applegate
says he isn’t
bothered by the market’s recent 11% run-up.
“We have always said that we never try to time the
market, and we don’t,” 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?
Submitted by Phoenix Capital
Research on 10/12/2011
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
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. 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. Let’s 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 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: 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 it’s not stocks that are
cheap, but earnings estimates that are high — Ritholtz
China’s 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 market’s problems — Mark Hulbert
China’s credit crunch is
worsening —
FT Alphaville
Another huge
earnings miss coming? — James Bianco at The Big Picture
It’s 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 don’t
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 — Economist’s 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
America’s
layoffs pointless, “wouldn’t 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, we’re 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 aren’t 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
Maslow’s 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
year’s
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 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 market’s 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 Friday’s New York opening, the Dow/Gold Ratio hasn’t 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 we’ve 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), today’s gold buyers will need
to find many more friends. They’d 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 buffet’s
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
that’s going on all the time on wall street, and now with
greater precision owing to greater computer programming capabilities, to
everyone else’s
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. It’s my view that this will
cause another credit crisis, just as in 2008.
What’s 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 didn’t 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
can’t
change the fact that major profit downgrades will appear soon, and it can’t 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 Dohmen’s
Wellington Letter and author of Prelude To Meltdown (2007) and Financial Apocalypse (2011).’
The
"Crimes" That Wrecked The Markets Forbes / Robert Lenzner ‘CNN’s 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, here’s 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 nation’s 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. Obama’s economic adviser in
2009 , Larry Summers, was dead set against a make-work program to put the
nation’s
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 couldn’t 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 nation’s 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 don’t 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 Lehman’s Richard Fuld, Countrywide Credit’s Angelo Mozillo–or either of the Merrill
Lynch CEOs, who helped destroy their iconic firm. Now there’s a “crime.”
Then, there’s the SEC’s 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. It’s 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
Obama’s
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 don’t 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 year’s 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. Here’s 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
didn’t 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, you’ll 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 doesn’t
buy it. Most investors don’t buy it. We don’t
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 doesn’t work out? Please have the grace to
forget we mentioned it.
We
would like to be able to predict the future, but we’ve
never gotten the hang of it. We’re just guessing.
But
since we’re just guessing, we don’t
see why we should hold back.
We’re
also guessing that…
…the weight of so much debt is
depressing growth…and will soon depress stock prices too…
…that the economy is becoming zombified
from too much government money…especially the military…
…that Mr. Market is ready for a long
bear market anyhow; he’s tanned, rested, and ready to go to
work
…that the US is following in Japan’s
footsteps…towards 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 world’s 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 months—2-1/2 years. He spent the first year
obsessed with passing Obamacare, a program that doesn’t
create jobs, but might destroy a lot of them. He “bailed
out” GM, but many believe that his interference didn’t
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 “Bush’s Fault.”
Obama himself said, “…that after three years, if the economy wasn’t fixed he should be a one-term president.”
Clearly
the economic malaise started on George W. Bush’s 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 quarter’s “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 Obama’s failed American recovery, and in the
near future, Obama’s 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 hasn’t 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 he’s
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 Poor’s. It seems that he believes
that everyone else is to blame but him. That downgrade was predestined by
the combination of irresponsible spending and Obama’s
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 Obama’s 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 didn’t
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 didn’t 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. I’d 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 Party’s desire for fiscal responsibility is right, but it doesn’t
mean that tax revenue can’t be increased. It can; how it’s
done is what matters. The tax code desperately needs to be restructured.
Simply digging in on old positions doesn’t 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 Obama’s 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 America’s Congressional leaders will—or
won’t—put "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” don’t 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 won’t solve America’s 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.” That’s why there will be no recovery on Obama’s 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
- Euro zone’s manufacturing purchasing managers’
index fell to a two-year low of 49.0 in August, down from a preliminary
reading of 49.7. (Business Insider)
- PMI’s contractions seen in Ireland, France,
Italy, Spain and Greece. (Business Insider)
- Germany’s manufacturing PMI slowed to its lowest
level since September 2009, slumping to 50.9, well below an initial
estimate of 52.0. (Business Insider)
- US Manufacturing ISM ex-inventory Growth is in
contraction (Mish)
- Japan's PMI fell at three-month low (Financial
Times)
- PMI readings in Switzerland and Sweden dropped (Financial
Times)
- British manufacturing PMI fells 49, hitting a
26-month low (MarketWatch)
- Germany private consumption fell for first time
since Q4 2009; Manufacturing growth slowest in 23 months (Reuters)
- Japan capital spending plummeted 7.8%; In Q2,
expectations were for 1% increase (RTT)
- US construction declines 3.5% vs. same period in
2010 (US Census Bureau)
- China exports to US contract, PMI is barely above
contraction (Reuters)
- Container traffic at Port of Long Beach drops
3.17%, smack in face of normal Christmas season ramp-up (Bloomberg)
- Canada GDP unexpectedly declines, led by a 2.1%
drop in exports (Bloomberg)
- Brazil unexpectedly cuts interest rates .5% to
combat recession; 62 of 62 analysts miss call on rate cut (Mish)
- Taiwan's PMI dropped to 45.2 in August, the
lowest reading since January 2009 (Reuters)
- German economy grew just 0.1 percent in the
second quarter (Reuters)
- Switzerland economy grew at its slowest pace
since 2009, as a record strong Swiss franc bites into exports. (Reuters)
- Retail giant in Australia warns of massive price
deflation and falling sales, "Hardest Christmas in Retailer
Lives" coming up (Mish)
- US see zero jobs growth, unemployment rate
remains flat at 9.1% (Mish)
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. They’re
not alone —
Soc Gen’s
in-house Dr. Doom, Albert Edwards, has a note today with his own take on the
subject.
Shockingly, Mr. Edwards’s 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 today’s market. Why not? Of course, the market is
down for this month. But that’s not the reason this is not a buy and hold environment. It’s not just about the recent correction, or
the end of a market rally. The current trend fits into a much bigger picture… and it’s 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 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 (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 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.]
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 won’t 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 world’s 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 world’s 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 it’s 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. Fed’s 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 Fed’s 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
world’s
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 Development’s 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
Street’s
advice to diversify into ‘defensive’ stocks won’t do it. As I’ve 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 we’re 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 didn’t 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 doesn’t 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 bearish–the most bearish since
September 2007–which gave way to a steep short squeeze.
As we’ve 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 today’s 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 wasn’t 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, it’s 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 aren’t 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 now–between a domino effect of European sovereign debt
defaults to 9/11 anniversary attacks–as 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 don’t make big bets you can’t 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," it’s "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 that’s 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. Europe’s ‘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 don’t
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 world’s 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 [ Let’s not be
naïve here … If the public knew even half of the truth, they’d 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, they’d 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. He’s 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 don’t
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 they’re 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 there’s no reason now for the
Congress of the United States not to act to help strengthen growth in the near
term. It’s
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 you’ll 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 News ‘If 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: “It’s Time To Start Calling This For What
It Is: A Modern Day Depression” Zero Hedge | You know you’re 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 Rosenberg’s 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… we’ll 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
it’s
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 you’re 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. It’s 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 can’t see the soup lines; the soup lines are in the mail — 99 weeks of unemployment
cheques for over 10 million jobless Americans. Don’t 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.
Let’s 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.
How’s that for a reality check?
This augers for capital preservation, defensive
orientation in the equity market and a focus on income-yielding securities;
something we’ve
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.
What’s 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. That’s the most in 50 years.
But nothing
extraordinary about that either. This is the biggest correction in half a
century too. And you don’t have to look very far to find more confirmation.
That’s why the 10-year
Treasury note yield has fallen to the lowest level since right after WWII, and
it’s
why nearly half the people looking for a job have been looking for more than
six months. And it’s 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 we’ll stick with our Great
Correction label. Because we think there is more going on here than even a ‘depression’ describes. (About which…more below…).
So far,
practically everything that has happened is about what you’d expect — the predictable,
ordinary consequences of a contraction. There is nothing remarkable about it.
But what’s this? The Dow is back
on the rise. Stock market investors don’t seem to have gotten the message: this economy is in
a contraction. They’re still pricing stocks as if they thought the
underlying businesses would grow. But companies don’t 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 correction…even 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, you’d look at it and think — ‘uh oh…it’s 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 don’t 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. Here’s Reuters:
Annual deaths are expected to peak at 1.66 million in
2040 as the bulk of the nation’s baby boomer generation expires. By then, Japan’s 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 Don’t 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 UBS’s $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 sentence…around 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 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. [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
Today’s markets were mixed
because:
1) Italy.
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. 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 week’s 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 they’ve 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 during…The
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....
- According to a recent Harvard Business Review
survey, 70
percent of global business leaders believe that a global recession is
"somewhat likely" or "very likely" in the coming
months.
- Economist Nouriel Roubini says that we are
"already in recession".
- When asked by CNBC what he thought about the
possibility of another recession, George Soros said
the following the other day:“I think we are in it
already.”..’
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. 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. “Insiders
aren’t
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. That’s
a worrying ratio. Six weeks ago the amounts of purchases and sales were about
equal. It’s
the kind of news that should give investors pause. What insiders do with their
own money is one of the stock market’s 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%Today’s 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 Fed’s 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 Fed’s 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 China’s 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 HSBC’s manufacturing PMI.
There was a lot of concern over China because heretofore it’s 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 Moody’s
downgraded some of the nation’s top banks yesterday, investors are growing worried
about the financial industry’s exposure to the sovereign debt crisis in Europe.
Not only were Bank of America , Wells Fargo , and Citigroup continuing to slide
today after Moody’s 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 Moody’s 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 France’s
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
Friday’s 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 market’s 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; 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. 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? …’ [ Isn’t that the point! Nobody’s 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 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.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 Greece’s 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 isn’t 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 Greece’s needs have exploded
about 60%…or
more! No sane investor would throw more money into this sinkhole of unknowns.
SHILLER:
House Prices Probably Won’t 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 weren’t terrible–on a seasonally adjusted
basis, July was basically the same as June–but one of the creators of the index, Professor
Robert Shiller of Yale University, isn’t 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 we’re 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 we’re
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 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..]
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.
- Schaeuble Says 'Will Not Spend Our Way' Out of
Crisis
- Schaeuble Says 'Immediate Fiscal Reforms Are of
the Essence'
- Schaeuble Says Increasing EFSF Would Damage Some
AAA Ratings
- Schaeuble Says Monetary Policy 'Not the Way' to
Solve Euro Woes
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:
- Germany remains adamantly opposed to bailing out
the periphery.
- European and US macro data continues to weaken.
- Greek debt is pricing in default, which, if it
occurred, would be chaotic and unpredictable.
- Austerity in the periphery is not working.
- European sovereign yields continue to indicate
worsening stress.
- Over the past month Italy's 2-year yield has
risen from 3.36% to 4.26% and its 10-year yield has risen from 5.07% to
5.60%.
- Spain's 2-year yield has risen from 3.27% to
3.36% and its 10-year yield has risen from 5.00% to 5.05%
- Germany's 2-year yield has fallen from 0.65% to
0.53% and its 10-year yield has fallen from 2.16% to 1.96%.
- Contagion fears continue to increase.
- The VIX has risen over the past month from 35.59
to 37.71.
- Bank of America (BAC)
CDS has widened from 333bps to 382bps.
- Goldman Sachs (GS)
CDS has widened from 240bps to 265bps.
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 America’s biggest banks are among the heaviest borrowers from
the Federal Reserve’s 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 world’s 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, I’ve 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 zone’s
EFSF (European Financial Stability Facility).
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. 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 Thursday’s 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 he’s “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. It’s no wonder so many
individual investors have fled markets. Between phony data and window dressing
it’s
hard to stick with the long-term program. Three bear markets in 11 years would
be enough to turn anyone off. Now we’re not in a bear market yet but we’re 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 Hasn’t
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. Let’s 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
Moody’s 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
Submitted by Phoenix Capital
Research on 10/10/2011
- Bank of
England
- Ben
Bernanke
- Ben
Bernanke
- Central
Banks
- default
- Double
Dip
- Gross
Domestic Product
- International
Monetary Fund
- Lehman
- Lehman
Brothers
- Reality
- recovery
‘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 don’t 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
didn’t
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 America’s decline — Greg Ip
in the Economist
The impact of
phony short-squeeze rallies — Ritholtz
Don’t 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 man’s 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 process—the design, the
engineering, the marketing—were 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 GM’s 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
administration’s 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 it’s 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, don’t 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 { I’d 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 I’ve 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 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..]
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 UAL’s 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 UAL’s 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 Fed’s 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 UAL’s shares would have
traded if the outdated report hadn’t surfaced. The projection was derived from the
performance of the Standard & Poor’s 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 we’ve seen, at
least since the 1930s, if not ever. We’re
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 MerkelSubmitted
by Tyler Durden on 10/07/2011 - 12:31 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
NegativeSubmitted by Tyler
Durden on 10/07/2011 - 12:18 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 NegativeSubmitted
by Tyler Durden on 10/07/2011 - 12:06
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 OrderSubmitted by Tyler
Durden on 10/07/2011 - 12:03 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 UnderperformSubmitted by Tyler
Durden on 10/07/2011 - 11:47 Precious Metals
Price Action
..why are we still rallying? ..
Hedge
Fund Pound-O-Rama: Full Performance Update Through Month EndSubmitted by Tyler
Durden on 10/07/2011 - 11:37
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 TruthSubmitted by Tyler
Durden on 10/07/2011 - 10:59 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 ComeSubmitted by Tyler
Durden on 10/07/2011 - 10:31 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 Sep09Submitted
by Tyler Durden on 10/07/2011 - 10:20 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 TermSubmitted by Tyler
Durden on 10/07/2011 - 09:27 HIGHER
UNEMPLOYMENT Unemployment
Rounding
Error, Short Squeeze, And Cost Of RecapSubmitted by Tyler
Durden on 10/07/2011 - 09:21 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 HighSubmitted
by Tyler Durden on 10/07/2011 - 09:02 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 DataSubmitted by Tyler
Durden on 10/07/2011 - 08:58 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 LostSubmitted by Tyler
Durden on 10/07/2011 -
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 CDSSubmitted by Tyler
Durden on 10/07/2011 - 08:21 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."…’
Moody’s Cuts Italy’s 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 EFSF’s 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:
- 10:00 a.m. ET: August factory orders
are due. Economists think they were little changed after a big gain in
July. Then an asteroid hit the earth, eventually causing the extinction of
the dinosaurs…’
Train
Reading: That Explains Everythingat The Wall Street Journal
China’s 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 (Italy’s 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 Greece’s spirits.”
#4 Stefan Homburg, the head of Germany’s 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 world’s 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.: “It’s 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 recession…that 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 it’s 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 “Won’t 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 market’s 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. Let’s 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 market’s 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.
Didn’t
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 IMF’s 2012 Growth
Forecast
Tuesday’s 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 bank’s 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 IMF’s 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 IMF’s 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 IMF’s 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.
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
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 Europe’s financial rescue.So far, America’s 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 America’s 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 won’t 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: Don’t 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.
We’re
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 world’s 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.
Today’s weaker that expected
ADP employment index may further temper expectations for Friday’s 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 don’t 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 Fed’s 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 year’s 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):
- Smuggling of antiques or cultural relics
- Smuggling of precious metals
- Smuggling of rare animals or products
- Smuggling of ordinary goods or objects
- Fraudulent activities with financial bills
- Fraudulent activities involving letters of
credit
- Forged value-added tax invoices
- False issuance of value-added tax invoices
- The teaching of criminal methods
- Theft of ancient human remains or fossils of
vertebrates
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 ‘It’s 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 don’t 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 spider’s 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 God’s 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 there’s no way to
determine who did it. It’s already coagulating. She was just an innocent
bystander. It’s 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 world’s
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 wasn’t sufficient to back up all of the currency then
floating around in the world’s 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 didn’t
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 year’s 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 week’s 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 America’s 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 Fed’s Open Market Committee actually voted against it.
This level of dissent within the Fed hasn’t 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 banker’s 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
How’s 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
It’s 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 economy—the 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"
assets—indeed,
a small return will get chewed up by inflation—they 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 world—the tsunami in Japan, the
financial crisis that's brewing in Europe—and 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 yet—witness 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
& Poor’s
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 don’t 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 isn’t 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, Greece’s 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 doesn’t 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, I’ve
long acted as something of a devil’s 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:
- THE EUROZONE IS GROWING INCREASINGLY DESPERATE. Watching the heads of Europe dither and debate
over further bailouts to the unhappy Greeks and other troubled PIIGS –
before ultimately reaching back into the pockets of the equally unhappy
citizens in Germany and the decreasing number of still-functioning
economies in the eurozone – reminds me of a down-on-his-luck blackjack
player. He’s mortgaged his home to play the game but is now down to his
last chips. He doesn’t want to risk his remaining resources but has no
choice, because to walk away now will mean taking up residence in a
cardboard box. And so, reluctantly, he shoves across another pile. The
problem is that the game is rigged – and not in his favor. As the PIIGS
start to default and either leave the eurozone entirely or are shunted off
into some sort of sidecar organization, there will be great volatility in
the euro and in the European markets.
- THE U.S. DEBT SITUATION IS FAR WORSE THAN ANYONE
IN WASHINGTON IS WILLING TO ADMIT. We keep hearing calls for more, not less debt
creation. But if people would stop kidding themselves and tally up all the
many demands the U.S. government has against it, the actual debt-to-GDP
ratio rises to something on the order of 400% – and even that is likely
understating things. The fundamental flaws in the U.S. monetary system –
flaws that have given license to the bureaucrats to smash the limousine of
state straight into a wall – have required a remaking every 20 to 30 years
or so. The problem is that there is pretty much nothing else that can be
done to save the status quo at this point, and so the monetary system is
likely to collapse. That means big changes ahead, including – or perhaps
starting with – a poisonous ratcheting up of interest rates.
- CHINA’S MIRACLE MIRAGE. While having aspects of a free market, the hard
truth is that China is run as a command economy by a cadre of communist
holdovers. This is apparent in the cities that have been built for no
purpose other than creating jobs and boosting GDP. It is also apparent in
the growing inflation in China – the inevitable knock-on of the
government’s decision to yank on the levers of money creation harder than
any other nation at the onset of the Greater Depression. Meanwhile, signs
of social unrest crop up here and there. Though so far they have been
swiftly put down, there is no question that the ruling elite has to walk a
very fine line. If the Chinese economy stumbles seriously, all bets are off.
That we are talking about the world’s second-largest economy means this is
not of small consequence.
- JAPAN IS ESSENTIALLY OFFLINE. Reports from friends in Japan – including one
who was initially skeptical about the scale of the problems at Fukushima –
have now changed in tone by 180 degrees. You can almost feel the growing
sense of desperation as the already massively indebted nation begins to
slide toward an abyss. There is little standing in the way of the world’s
third-largest economy’s slide.
- THE MIDDLE EAST IS IN FLAMES. This, too, is far from settled. As usual, the
U.S. government has been hopping here and there in an attempt to maintain
its influence, but at this point pretty much everything is up for grabs.
The odds of the U.S. retaining the same level of influence in the region
that it has enjoyed over the last century are slim to none, especially now
that even the Saudis are shipping more of their oil to China than to the
U.S. Again, big changes are ahead…’
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 firm’s 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 magazine’s 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 bank’s net
profit rose 5% to a record $4.2 billion. And as recently as March 2008,
Barron’s
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 didn’t 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 hadn’t 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 didn’t 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 Street’s fourth-largest investment bank’s 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 firm’s loan practices, he can be held responsible for the
firm’s
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.
There’s no question that the
firm Fuld helped build, that he’d 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 Lehman’s
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 didn’t 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 firm’s 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 AIG’s credit-default swaps program that put the firm’s 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 firm’s 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
Cassano’s
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 SEC’s Division of
Enforcement, said that “Mozilo’s 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.
Mozilo’s 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 — that’s less than 10% of his
worth. Aside from Bernie
Madoff, the only executive tied to the financial crisis to be criminally
prosecuted and convicted, Mozilo’s settlement is the greatest punishment inflicted on
any executive responsible for the country’s 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.
- The cost of a college education continues to
rise year after year.
- The unemployment rate remains high at 9.2%, but
it doesn't factor in the millions of "underemployed" workers --
those who are currently working part-time but would like full-time work --
and discouraged workers who have tired of looking for a job and have just
dropped out of the job market.
#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
We’re 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, we’re 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 President’s 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 we’re
working our way to actual cutting by cutting to slow the pace of the nation’s 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 week’s 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 Fed’s
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 & Poor’s Aug 5, 2011 The United States late Friday lost its triple-A debt rating from Standard
& Poor’s for the first tie ...
Text of S&P downgrade of
U.S. rating 06 Aug 2011 The following is the
text of Standard & Poor’s 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 & Poor’s 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
government’s
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 government’s 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 Paul’s 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.
#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, “
They’ve
handled themselves very poorly, and they’ve 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 Buffett’s shareholdings in Moody’s , 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 Buffett’s Berkshire Hathaway outlook from stable to
negative.Not to be outdone by Warren Buffett’s AAA endorsement,
President Obama made a public announcement of his own on Monday. Despite
America’s
financial hardship across the board, the President said, “ I’d 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 it’s not the only credit
agency to downgrade America. China’s credit rating agency Dagong , recently cut
America’s
debt rating from A+ to A, with a negative outlook. Dagong had already cut
America’s
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 Moody’s 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 Generale’s uber bear, Albert
Edwards, this has absolutely nothing to do with S&P, the White House, Tea
Party etc. It’s
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 it’s 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, it’s Ice Age 3.
Here’s 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 haven’t changed though. Print
and print and print. And if that doesn’t 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 can’t 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 didn’t announce a new policy. And despite what some press
reports said, it didn’t 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 isn’t
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 & Poor’s 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 didn’t 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 & Poor’s 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 camel’s back.According to S&P, the
debt ceiling deal “falls short of what, in our view, would be necessary
to stabilize the government’s 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 world’s 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.Moody’s might be the next one to issue a downgrade.
At the moment, Moody’s says that it will not be downgrading U.S. debt for
now, but Moody’s 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 doesn’t
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. China’s 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 China’s 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 don’t 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. Tuesday’s 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,
let’s
review what drove the last two market bubbles.
- 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
- 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, let’s review what happened after these bubbles burst.
- After the tech bubble: monetary policy
remained highly accommodative and government stimulus was aplenty
- 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.
Let’s take a look at the options available via the two
main forces for stimulating economic recovery:
- 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.
- Monetary policy – here we have three potential
options.
- 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.
- 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.
- 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:
- 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.
- 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.
- When the people who make mistakes do not pay
for mistakes, they keep making them…bigger and bigger. Can you say
“mortgage back securities”?
- 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.
- 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.
Wasn’t
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:
- 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.
- We have wasted lots of capital by subsidizing
unproductive investments.
- We have delayed the process of creative destruction
whereby unproductive investments are replaced by productive
investments.
- 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.
- We must rebuild diligently, rationally and
deliberately to ensure capital realizes its highest and
best use.
- Kicking the can down the road, Euro-style, only
delays the inevitable and makes the problem worse.
- 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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but
precluded 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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 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) ]
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! Don’t make me laugh! Is
China Bad For The US Job Market? at Forbes [ Duh! Ya think. Come on!
Even rhetorically there’s no real question here. There’s no upside
nor room for discussion on this point. Even when thinking they’re buying
american, ie., apple, etc., they’re 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 they’ll be no
default … double duh! … as
pervasively corrupt, defacto bankrupt america’s 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
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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 ain’t 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 else’s 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 world’s 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 organization’s 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 Obama’s 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.
Western Democracy: A Farce And A Sham Paul Craig Roberts | The only terrorists Americans
will ever experience are those funded by their own tax dollars within their “own”
government.
Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You The
Economic Collapse | According to the U.S. Census Bureau, a higher percentage of
Americans is living in extreme poverty than they have ever measured before.
Ron Paul: US Should Offer Friendship To Iran Not War Fox
News | The Congressman offers some sound advice on foreign policy.
Ron Paul: Is Obama President or an Executive Dictator? Ron
Paul | More Texas Straight Talk from the Congressman.
Nightly News: Raw Milk Under Siege, Ron Paul On Iran, and
Rahm’s New Fines Kurt Nimmo | Liz
Reitzig of the Raw Milk Freedom Riders talks with Alex about effort to stop the
feds from dictating food choices.
Sheraton Hotels Block Infowars, Activist Post, and
Federal Jack Activist Post | Chinese-style Internet
censorship is not new for Sheraton Hotels & Resorts.
No smoking gun: IAEA Iranian nuclear report falls flat on
its face Patrick Henningsen | The IAEA report has
come up short, but the Axis powers are still desperate to hit Iran
Greek Debt Crisis: Mark II of the Plan for a Greatest
Depression Kurt Nimmo | HSBC, a prized bankster
asset connected to the City of London, warns of a global depression.
Former Federal Reserve Economist Likely Next Prime
Minister of Greece Economic Policy Journal | Papademos is a 100%
bankster tool.
Concern Over Public Anxiety Causes Feds To Shorten EAS
Alert Paul Joseph Watson | Emergency Alert System broadcast will
last just 30 seconds in response to distrust over government’s motive.
Joint military/homeland security defense exercise
underway Government Security News | “Operation Vigilant Shield 12”.
The Euro ‘Event’ Will Cause Depression: HSBC CNBC | “Were the
event to actually occur it would lead to the great depression Mark II,” said
Bloom.
What Happened When I Tried to Get Some Answers About the
Creepy NYPD Watchtower Monitoring OWS Alternet | There’s a metal
monster looming over Liberty Square, but don’t ask questions about it or else.
Pro-Israeli Lobby Group Made BBC, Sky News ‘Change Narrative’ On Stories Paul
Joseph Watson | Billionaire-funded organization boasted of ‘briefing’
journalists before stories were published.
Concern Over Public Anxiety Causes Feds To Shorten EAS
Alert Paul Joseph Watson | Emergency Alert System broadcast will
last just 30 seconds in response to distrust over government’s motive.
Cameraman Shot for Filming Cops in Oakland Kurt
Nimmo | It is a small step from rubber bullets to live ammo.
14 Reasons Why We Should Nationalize The Federal Reserve Michael
Snyder | We can take back control of our financial system.
The Next
US Investment Bubble…Used-Car Loans All Gov | America’s
‘buy now pay later’ automotive economy may be the next AAA rated domino to fall
‘Occupy
Boston’ takes Israeli consulate Press TV | Occupy Boston
demonstrations stretch to Israeli building, with protesters calling for int’l
justice
U.S.
and Israel to embark on largest joint exercise in allies’ history Haaretz
| New agreement brings an Israeli and US military merger closer to reality French President Barack
Obama that he could not "stand" Prime Minister UNESCO despite
Washington's strong objection to the move.
TRUTHFUL
TRASH TALK (ABOUT ISRAELI TRASH) BEHIND ISRAELI LEADER'S BACK Report:
Sarkozy calls Netanyahu 'liar' Microphones accidently left on after G20 meeting pick up private
conversation between US, French presidents. Sarkozy admits he 'can't stand'
Israeli premier. Obama: You're fed up with him? I have to deal with him every day!
http://www.ynetnews.com/PicServer2/13062011/3550874/Untitled-1_wa.jpg
Arret sur
Images (Screenshot)
The conversation then drifted to
Netanyahu, at which time Sarkozy declared: "I cannot stand him. He is a
liar." According to the report, Obama replied: "You're fed up with
him, but I have to deal with him every day!" The remark was naturally
meant to be said in confidence, but the two leaders' microphones were accidently
left on, making the would-be private comment embarrassingly public. The
communication faux pas went unnoticed for several minutes, during which the
conversation between the two heads of state – which quickly reverted
to other matters – was all but open to members the press, who were
still in possession of headsets provided by the Elysée for the sake of
simultaneous translation during the G20 press conference."By the time the
(media) services at the Elysée realize it, it was on for at least three minutes,"
one journalist told the website. Still, he said that reporters "did not
have a chance to take advantage of this fluke."The surprising lack of
coverage may be explained by a report alleging that reporters present at the
event were requested to sign an agreement to keep mum on the subject of the
embarrassing comments. A member of the media confirmed Monday that "there
were discussions between journalists and they agreed not to publish the
comments due to the sensitivity of the issue." He added that while it was
annoying to have to refrain from publishing the information, the journalists
are subject to precise rules of conduct.’
No
smoking gun: IAEA Iranian nuclear report falls flat on its face Patrick
Henningsen | The IAEA report has come up short, but the Axis powers
are still desperate to hit Iran
Fourth accuser urges Herman Cain to ‘come clean’ about harassment - A fourth woman has accused Republican
presidential candidate Herman Cain of sexual harassment--this time in public.
Sharon Bialek told reporters in a press conference Monday that Cain groped her
and e...
Obama was playing golf until 20 minutes before Navy SEALs
began mission to take out Bin Laden UK Daily Mail | Stayed out on
golf course to distance himself if it went wrong, book claims.
Camera Man Shot with a Rubber Bullet Simply for Filming
Police at Occupy Oakland Washington’s Blog | There was no violence or
confrontations of any kind underway.
Iran will be able to build nuclear bomb within months,
IAEA says Haaretz and Reuters | IAEA says Iran has already acquired
the knowledge, technology, and resources.
Government Ignored 1998 Report Finding up to 100 Cancer
Deaths from TSA Naked Body Scanners Per Year Anthony Gucciardi | Has
the government known since 1998 that the TSA body scanners could be giving you
cancer?
Truth comes out: 2009 H1N1 flu pandemic ‘deaths’ of children were actually caused by MRSA Natural
News | It most likely wasn’t H1N1 alone that caused healthy children to become so ill
many died.
US sources: Israel ministers who opposed Iran strike are
now for it DEBKA file | American sources told Fox
television early Sunday, Nov. 6 that all the senior Israeli ministers who were
formerly against attacking Iran’s nuclear sites are now for it.
Loose Cannon: Will Israel attack Iran? Russia
Today | The UN nuclear watchdog will next week publish a report
suggesting Iran has built a nuclear testing facility and will show satellite
images to prove it.
U.S. military official: We are concerned Israel will not
warn us before Iran attack HAARETZ.com | U.S.
officials are concerned that Israel will not warn them before taking military
action against Iran’s nuclear facilities, a senior U.S. military official said
Friday.
US sources: Israel ministers who opposed Iran strike are
now for it DEBKA file | American sources told Fox
television early Sunday, Nov. 6 that all the senior Israeli ministers who were
formerly against attacking Iran’s nuclear sites are now for it.
Loose Cannon: Will Israel attack Iran? Russia
Today | The UN nuclear watchdog will next week publish a report
suggesting Iran has built a nuclear testing facility and will show satellite
images to prove it.
U.S. military official: We are concerned Israel will not
warn us before Iran attack HAARETZ.com | U.S.
officials are concerned that Israel will not warn them before taking military
action against Iran’s nuclear facilities, a senior U.S. military official said
Friday.
Israel’s Peres warns attack
on Iran getting ‘closer’ AFP
| Israeli President Shimon Peres warned on Sunday that an attack on Iran is
becoming increasingly likely, days before a report by the UN’s nuclear
watchdog on Iran’s nuclear programme.
Netanyahu’s ‘Winston Churchill’ Moment on Iran Infowars
Nightly News | Alex talks about the build-up for an attack on Iran.
Attack on Iran: Hitlerian Act of Aggression Tony
Cartalucci | Iran poses no threat to US national security.
Bank Transfer Day Signals Backlash ABC
News | Customers plan to move their money in protest of new banking
fees.
Ron Paul declared winner of Illinois Republican straw
poll Reuters | Ron Paul was declared the winner on
Saturday of a weeklong Republican presidential straw poll in Democratic
President Barack Obama’s home state of Illinois.
G-20 Demands German Gold To Keep Eurozone Intact; German
Central Bank Tells G-20 Where To Stick It Zero Hedge
| Going back to the annals of brokeback Europe, we learn that gold after all is
money.
Extreme Poverty Is Now At Record Levels The
Economic Collapse | According to the U.S. Census Bureau, a higher percentage of
Americans is living in extreme poverty than they have ever measured before.
10 Reasons America Will Be Judged as the Most Brutal
Empire in History Activist
Post | Good and evil doesn’t have a grey zone. Activist
Post November 7, 2011
Good and evil
doesn’t
have a grey zone. Killing and stealing is bad. Violence is never “good” or necessary unless it
is used to defend against killers and thieves. Indeed, that is the morality
behind the “just
war”
principle as defined by international laws and treaties.
Yet, this
simple concept of right and wrong gets muddled by differing ideas about
religion, patriotism, economics and many other divisions. The “just war” rule has crumbled under
the ambitions of empires throughout history. The American-led Anglo Saxon
empire is no different.
This empire
has been brutally conquering and colonizing territory since the fall of Rome.
However, it has only gained an American face in the last century.
The United States quickly emerged as the world’s “superpower” primarily through its
economic might. For some time, many believed the U.S. to be a shining
example of economic freedom for other nations to emulate. Indeed, America
was eager to promote “economic freedom” globally to open new markets for U.S.-based
corporations.
When foreign
leaders refused to allow these corporate interests into their country, those
leaders were replaced through a variety of covert actions. The form of
government that would be installed did not matter to the empire makers so long
as the corporate interests were served. In most cases these nations
simply surrendered to the seemingly unlimited power of the almighty dollar,
thus camouflaging the traditional method of forceful empire building.
However, some
nations, especially in the last two decades, remained stubborn and have refused
to alter their banking systems while also shunning Western companies.
Despite the empire’s best efforts to diplomatically bribe or sanction
them into submission, they ultimately required an iron military fist to force
their compliance. Until recently, military action remained the last
resort. But now, preemptive military action seems to have become the
preferred, and perhaps necessary, method to conquer the last resource-rich
nations out of their grasp.
The empire’s populations cheered
this strategy out of fear of being attacked by these rogue nations who never
attacked or even threatened to attack them. In the fog of fear, killing
and stealing became acceptable. In fact, detention without charges
and even torture became acceptable in the former capital of freedom.
America has determined that the means justifies the end — which is more power.
As with
all empires, these “means” have become increasingly violent and destructive in
the face of resistance. Yet, only a few more dominoes are left to knock
over for America to complete a plan set in motion well before they were one of
the colonies. That is unless, of course, other world powers break ranks
and attempt to stop the conquerors, which could lead to a large scale conflict.
Regardless, when the dust settles and moral history
is written, America and her Western cohorts will likely be viewed as the most
brutal empire in history. Here are ten reasons why this is already the
case:
http://4.bp.blogspot.com/-ziW0uRVXDeM/Trdbyofg0wI/AAAAAAAAMO4/aHNh5p76jQE/s200/rumsfeld+saddam.jpg
#1. Support of Dictators: For all the happy talk of
spreading Democracy and protecting human rights, the empire has repeatedly not
only supported dictators, but in many cases overthrew popularly elected leaders
and replaced them with puppet tyrants. Examples range from secretly
funding the Nazis, to installing
the Shah in Iran, Pinochet in Chile, supporting Musharraf in
Pakistan, and their everlasting love affair with the brutal Saudi royal family,
to name a few. Actions speak louder than words to those who can navigate
the storm of propaganda with a moral compass set to recognize good from evil.
Dictators and freedom cannot coexist.
#2. Preemptive Wars of Aggression: It could be said that
all wars are preemptive in nature because so many entities benefit from war.
Yet, even before America’s latest crusades, they covertly and surgically
attacked countries that never threatened them. This allowed them to
maintain the moral high road in the public’s eye while constructing the foundation of their
empire. That was until the Bush Doctrine; the use of
preemptive military action to confront possible threats was unofficially
adopted to be the new foreign policy for combating terror. Since then,
America has become the violent aggressors, having officially invaded two
countries —
Afghanistan and Iraq — without legitimate provocation. Violent
aggressors have always been judged by history as evil. But it gets worse….
#3. Torture: Torture has never
been acceptable by those promoting a high moral standing in the global
community. Nazis and Japanese
soldiers were convicted and executed for engaging in the exact same torture
techniques that America has redefined as ‘enhanced interrogation’. “I was just following
orders,”
was not a justifiable excuse for such inhumane behavior, much like it wasn’t a good enough defense
for the low-ranking patsies who took the heat for the sinister Abu Ghraib
torture scandal even though their actions were approved
at the highest levels. Can state-sanctioned torture of prisoners held
without charges ever be viewed as anything less than brutal?
http://1.bp.blogspot.com/-KxpFlJBhceI/TrdWSTR6itI/AAAAAAAAMOQ/OEHWeOqQW0g/s200/dees+activists.jpg
#4. Suppression of Dissent: All
tyrannical regimes throughout history have suppressed homeland dissent.
As government oppression grows bolder at home and abroad, more citizens
will naturally express outrage, resulting in even more oppressive controls.
This is happening in the United States through the all-seeing eye of the
Department of Homeland Security with warrantless
spying, arbitrary watch lists, citizen
spy campaigns, and TSA molestation to travel anywhere. Additionally,
in an attempt to squash free speech, they arbitrarily seize websites and
violently confront peaceful protesters. Unfortunately, as awareness of
the topics in this very article expands, the U.S. will likely become even
bolder in their pursuit of stifling dissent. In other words, the worst is
yet to come, and history will judge the U.S. as not quite the beacon of freedom
they have pretended to be.
#5. Elimination of Habeas Corpus:
Say goodbye to the notion of being innocent until proven guilty, the right to
face charges and your accuser, and the right to a free and fair trial. Habeas corpus, considered
the only humane path to “which a prisoner can be released from unlawful
detention,”
has been eliminated for those vaguely labeled ‘enemy combatants’ of the empire. As
Guantanamo prisoners rot under such pretenses, prominent lawmakers in the
empire propose the exact same lack of rights for American citizens if they’re labeled an ‘enemy
belligerent‘. Similar to the Spanish Inquisition,
now you’re
guilty until you’re tortured to admit your guilt. Can it get
more evil? Why yes, it can. Read on.
#6. Assassinating Citizens:
That’s
right. No judge, no jury, no conviction; just straight to execution.
America has set another precedent in their tyrannical march toward empire when
they openly assassinated an American citizen and government patsy, Anwar
al-Awlaki, and his teenage son on the suspicion of terrorism. Paul
Craig Roberts laments
“Now
the US government not only can seize a US citizen and confine him in prison for
the rest of his life without ever presenting evidence and obtaining a
conviction, but also can have him shot down in the street or blown up by a
drone.”
Isn’t
this the reason America claims to be knocking off dictators around the world — the deliberate killing
of their own citizens?
But Awlaki was a bad apple because the intelligence
community said so. What’s most telling that America will continue this
wickedness is that almost every US lawmaker turned a blind eye to the grotesque
violation of Constitutional rights. Only Ron Paul
said that assassinating an American citizen without charges is nothing less
than an “impeachable
offense”.
Too bad most of the country cheered the Awlaki killing as a “victory” in the war on terror,
indicating that it is now an acceptable tactic. Americans beware: you may
be moved from a secret watch list to a secret kill list in this brutal empire.
http://1.bp.blogspot.com/-YQecA6AdJLQ/Trdc3ax5PnI/AAAAAAAAMPA/svo3xXohd7s/s200/dees+libya.jpg
#7. Unauthorized Drone Wars:
Unprovoked wars without authorization, accountability, or independent oversight
only seem to be escalating; and with little resistance. The US Congress no
longer votes to “declare war”. They simply give the Commander in Chief broad
“authorization” to use force against
specific nations. However, even that is not broad enough in the rapid pursuit
of empire. Now, joystick warriors directed by the CIA and Pentagon have
targeted at least three countries with “unauthorized” military strikes; Pakistan,
Yemen, and Somalia. Even worse, they waged a full-scale war for
regime change and resource plundering in Libya without any authority
inside the United States. Under the NATO flag, which is 75%
funded by the U.S., they flew over 9200
strike sorties in Libya to illegally topple Gaddafi. Drunk with
success, the bloodthirsty empire marches on to their next preemptive targets,
Syria and Iran. Quick morality check: unprovoked killing and stealing as
a first resort is still wrong, right?
#8. Use of Weapons of Mass Destruction:
How ironic that the world’s policeman for weapons of mass destruction is the
only one to use them on a mass scale. The United States is on record
using chemical, biological and even nuclear weapons. From the atomic
bombs dropped on Hiroshima
and Nagasaki in WWII, to Monsanto’s Agent
Orange in Vietnam, to the depleted
uranium used in Afghanistan and Iraq, America only condemns itself when
speaking about the evils of WMDs. However, killers don’t appear to care how the
killing is accomplished, so long as it achieves their goals. The real
firecrackers will likely be brought out in a confrontation with Iran, or if
China and Russia are lured into the conflict. It won’t really matter much what
history says if the use of WMD escalates by either side, but the aggressors
should rightly be blamed for the ensuing scorched earth, while the defenders
against killers and thieves should be viewed as righteous.
#9. World’s Largest
Drug Dealer: The American
empire is the largest drug dealer in the world? Say it isn’t so. Well, in addition
to forcing legal drugs and genetically
modified organisms on nations, usually under the cover of foreign aid,
America also leads in the illegal drug trade. In fact, many researchers
reveal that the war on drugs is only utilized to control and monopolize
the illicit drug trade. The US government has been caught multiple
times shipping in
cocaine, colluding
with certain cartels to control the industry, and now openly protects and transports opium
from Afghanistan. In fact, Global Research points
out that in 2001, “according to UN figures, opium production had fallen
to 185 tons. Immediately following the October 2001 US led invasion, production
increased dramatically, regaining its historical levels.” This month,
the U.N.
announcedthat Afghanistan now provides 93%
of the world’s opium
production; up 61% compared to 2010 to a whopping 5800 tonnes.
Although the empire tries to keep it secret, they can’t hide the hypocrisy
forever.
http://3.bp.blogspot.com/-uY_ZP5f24y8/TrdZ3Bs9HhI/AAAAAAAAMOo/FgB0_Ri48LU/s1600/pyramid.jpg
#10. World Reserve Currency Prison:
Although using Weapons of Mass Debt is a non-violent form of
expanding the empire, it’s perhaps the most brutal and effective form of
control. Requiring foreign nations to purchase oil and other imported
commodities with US dollars wields immense power. Because all nations
must acquire dollars to purchase critical resources, they quickly become
indebted to the US Federal Reserve, their affiliate central banks, and the IMF.
Before long, the entire world is colonized by debt. It seems that
only the nations that don’t need or refuse credit from Western banking
institutions are the ones in danger of facing the wrath of the imperial war
machine. Incidentally, most oil-rich nations in the Middle East have
outlawed usury (lending money with interest), making them impossible
to conquer
diplomatically through debt. Controlling the world reserve currency
means controlling the tap of life itself, which is a dangerous weapon in the
hands of an aggressive empire. Debt is the ultimate WMD the empire uses
to enslave the world, which leaves dissidents with two clear choices: slavery
or death.
Although this empire is infinitely more powerful than
Rome was, it will suffer the same fate. For every negative action the
empire commits, there’s an equal and opposite good reaction. And the
goodness of humanity will always defeat tyranny when it goes too far.
However, an empire with so much to lose will go down swinging and
slinging every weapon in its arsenal, thus putting the final stamp on their
status as most brutal empire in history.’
Extreme Poverty Is Now At Record Levels – 19 Statistics About The Poor That Will Absolutely Astound You According to the U.S. Census Bureau, a higher
percentage of Americans is living in extreme poverty than they have ever
measured before. The
Economic Collapse November 5, 2011
According to
the U.S. Census Bureau, a higher percentage of Americans is living in extreme
poverty than they have ever measured before. In 2010, we were told that
the economy was recovering, but the truth is that the number of the “very poor” soared to heights never
seen previously. Back in 1993 and back in 2009, the rate of extreme
poverty was just over 6 percent, and that represented the worst numbers on
record. But in 2010, the rate of extreme poverty hit a whopping 6.7
percent. That means that one out of every 15 Americans is now considered
to be “very
poor”.
For many people, this is all very confusing because their guts are telling them
that things are getting worse and yet the mainstream media keeps telling them
that everything is just fine. Hopefully this article will help people
realize that the plight of the poorest of the poor continues to deteriorate all
across the United States. In addition, hopefully this article will
inspire many of you to lend a hand to those that are truly in need.
Tonight, there
are more than 20 million Americans that are living in extreme poverty.
This number increases a little bit more every single day. The following
statistics that were mentioned in an article in The Daily Mail should be very
sobering for all of us….
About 20.5 million Americans, or 6.7 percent of the
U.S. population, make up the poorest poor, defined as those at 50 per cent or
less of the official poverty level.
Those living in deep poverty represent nearly half of
the 46.2 million people scraping by below the poverty line. In 2010, the
poorest poor meant an income of $5,570 or less for an individual and $11,157
for a family of four.
That 6.7 percent share is the highest in the 35 years
that the Census Bureau has maintained such records, surpassing previous highs
in 2009 and 1993 of just over 6 percent.
Sadly, the wealthy and the poor are being
increasingly segregated all over the nation. In some areas of the U.S.
you would never even know that the economy was having trouble, and other areas
resemble third world hellholes. In most U.S. cities today, there are the “good neighborhoods” and there are the “bad neighborhoods”.
According to a recent Bloomberg article, the “very poor” are increasingly being
pushed into these “bad neighborhoods”….
At least 2.2 million more Americans, a 33 percent
jump since 2000, live in neighborhoods where the poverty rate is 40 percent or
higher, according to a study released today by the Washington-based Brookings
Institution.
Of course they don’t have much of a
choice. They can’t afford to live where most of the rest of us do.
Today, there are many Americans that openly look down on the poor, but that
should never be the case. We should love the poor and want to see them
lifted up to a better place. The truth is that with a few bad breaks any
of us could end up in the ranks of the poor. Compassion is a virtue that
all of us should seek to develop.
Not only that,
but the less poor people and the less unemployed people we have, the better it
is for our economy. When as many people as possible in a nation are
working and doing something economically productive, that maximizes the level
of true wealth that a nation is creating.
But today we
are losing out on a massive amount of wealth. We have tens of millions of
people that are sitting at home on their couches. Instead of creating
something of economic value, the rest of us have to support them
financially. That is not what any of us should want.
It is
absolutely imperative that we get as many Americans back to work as
possible. The more people that are doing something economically
productive, the more wealth there will be for all of us.
That is why it
is so alarming that the ranks of the “very poor” are increasing so dramatically. When the
number of poor people goes up, the entire society suffers.
So just how
bad are things right now?
The following
are 19 statistics about the poor that will absolutely astound you….
#1 According to the U.S. Census Bureau, the percentage
of “very
poor”
rose in 300 out of the 360 largest metropolitan
areas during 2010.
#2 Last year, 2.6 million more Americans descended into poverty. That was
the largest increase that we have seen
since the U.S. government began keeping statistics on this back in 1959.
#3 It isn’t just the ranks of the “very poor” that are rising.
The number of those just considered to be “poor” is rapidly increasing as well. Back in the
year 2000, 11.3% of all Americans were living in
poverty. Today, 15.1% of all Americans are living in poverty.
#4 The poverty rate for children living in the United
States increased to 22% in 2010.
#5 There are 314 counties in the United States
where at least 30% of the
children are facing food insecurity.
#6 In Washington D.C., the “child food insecurity
rate”
is 32.3%.
#7 More than 20 million U.S. children rely on
school meal programs to keep from going hungry.
#8 One out of every six elderly
Americans now lives below the federal poverty line.
#9 Today, there are over 45 million Americans on food stamps.
#10 According to the Wall Street Journal, nearly 15 percent of all
Americans are now on food stamps.
#11 In 2010, 42 percent of all single mothers in the
United States were on food stamps.
#12 The number of Americans on food stamps has increased 74% since 2007.
#13 We are told that the economy is recovering, but the
number of Americans on food stamps has grown by another 8 percent over the past year.
#14 Right now, one out of every four American children is on
food stamps.
#15 It is being projected that approximately 50 percent
of all U.S. children will be on food stamps at some point in their lives before
they reach the age of 18.
#16 More than 50 million Americans are now on
Medicaid. Back in 1965, only one out of every 50 Americans was on
Medicaid. Today, approximately one out of every 6
Americans is on Medicaid.
#17 One out of every six Americans is now enrolled in at least onegovernment
anti-poverty program.
#18 The number of Americans that are going to food
pantries and soup kitchens has increased by 46% since 2006.
#19 It is estimated that up to half a million children may
currently be homeless in the United States.
Sadly, we don’t hear much about this on
the nightly news, do we?
This is
because the mainstream media is very tightly controlled.
I came across
a beautiful illustration of this recently. If you do not believe that the
news in America is scripted, just watch this video starting at the 1:15
mark. Conan O’Brien does a beautiful job of demonstrating how news
anchors all over the United States are often repeating the exact same words.
So don’t rely on the mainstream
media to tell you everything.
In this day
and age, it is absolutely imperative that we all think for ourselves.
It is also
absolutely imperative that we have compassion on our brothers and sisters.
Winter is
coming up, and if you see someone that does not have a coat, don’t be afraid to offer to
give them one.
All over the
United States (and all around the world), there are orphans that are
desperately hurting. As you celebrate the good things that you have
during this time of the year, don’t forget to remember them.
We should not
expect that “the
government”
will take care of everyone that is hurting.
The reality is
that millions of people fall through the “safety net”.
Being generous
and being compassionate are qualities that all of us should have.
Yes, times are
going to get harder and an economic collapse is coming.
That just
means that we should be more generous and more compassionate than we have ever
been before.’
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. I’m glad
that she got the ‘Playboy gig’ (I’ve always found Playboy to be a tasteful exposé of artistically
beautiful vistas). Though glad 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 I’m less
than enthusiastic that it’s 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 couldn’t 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 It’s 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 I’ve previously set forth in prior
comments. / Though Assange’s 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.}
Police: Judge won't be charged over video
beating McALLEN, Texas (AP) - A Texas family law judge whose
daughter secretly videotaped him savagely beating her seven years ago won't
face criminal charges because too much time has elapsed, police said Thursday.
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 couldn’t 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:
It’s Much Bigger
Than Goldman Sachs Regulatory
reform debate obscures key fact: Everybody’s 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 Holder’s 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 he’s 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 Department’s criminal division, Lanny A. Breuer, Holder’s 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, “I’m 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 doesn’t get
serious...’
Moody’s 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 him—a 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 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? [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."
- Check
out: our editorial cartoons on President Obama.
- See: a slide show of 10 reasons Obama should be
re-elected.
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.
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! 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 ] }
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, it’s not a
matter of if, but when america defaults. ]
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? ]
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 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. ]
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 can’t 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 Ahmadinejad’s speech? [ Nothing! As regards the twin towers reference,
his position is consistent with in excess of 95% of those who’ve 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
Ahmadinejad’s 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 can’t count, do simple math. Maybe if
these peaceful people in the confines of their homes (it’s 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 city’s 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 party’s 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.
Obama’s 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 didn’t
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 Kerry’s
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. Obama’s
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. Obama’s 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. Obama’s 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 company’s 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 company’s 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 company’s
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. Obama’s 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 company’s 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. Obama’s political committees, having raised
more than $150,000 since 2004. The company’s 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. Obama’s 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. Bruno’s
personal business dealings, including whether he accepted money from Mr.
Abbruzzese in return for Senate approval of grants for one of Mr. Abbruzzese’s
companies. Both men have denied any wrongdoing. Mr. Abbruzzese did not return
phone calls seeking comment.
Skyterra’s
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 company’s top officials had not been aware of
Mr. Obama’s 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,
AK—Sarah 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 hers—but 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 -
- 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 don’t forget, Bruce Willis and Ben
Affleck, et als, have already done this so it’s not as
if they’re 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 -
- 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... GENEVA — ‘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 didn’t
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 (gov’t
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 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.]
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 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). ]
Dick
Cheney’s self-serving
memoir REVIEW | “In My Time” serves
mainly to reaffirm the former vice president’s lack of regrets. (Washington
Post) [ Yes. Lack of regrets. That is exactly what you’d 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
cheney’s had to consistently take have shaken up / messed up his
body / brain chemistry to the point where cheney’s 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 doesn’t 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 hadn’t 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) I’d 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 don’t matter: Drudgereport: 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
] ...
]
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 Japan’s 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 I’ve 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 Obama’s promise to bring the troops
home.
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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 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 ]
Carlyle
in diversification flurry Carlyle is expected to announce $40 million in
energy investments, capping a two-week flurry of deals. (Washington Post) [ Yeah! You’d 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
‘goin’s good’, gettin'
out while the gettin’s 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, 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… 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); poppy’s
estate plan is maximized, along with the other principal’s 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 nation’s taxpayers / middleclass who’ve 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
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!’
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})
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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but precluded 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 - 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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 criminals—Dim, Pete, and Georgie—through 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 aren’t Americans
rioting? (Washington Post) [ It
really is quite surprising inasmuch as they’re 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, I’d also say ‘give them time’, the worst is yet to come.
Moreover, we’re 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. 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!
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,
AK—Sarah 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 hers—but 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:
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.
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 6′s demise?
...
Deaths of SEAL Team 6 Exposed Aaron Dykes & Alex Jones
| We predicted shortly after the raid on bin Laden’s 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 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 ]
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 hasn’t 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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but
precluded 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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’.]
Moody’s 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 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. 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 ]
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 Ash ‘Today’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 market’s 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 Friday’s New York opening, the Dow/Gold Ratio hasn’t 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 we’ve 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), today’s gold buyers will need
to find many more friends. They’d 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 Buffett’s 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 buffet’s
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
that’s going on all the time on wall street, and now with
greater precision owing to greater computer programming capabilities, to
everyone else’s
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. It’s my view that this will
cause another credit crisis, just as in 2008.
What’s 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 didn’t 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
can’t
change the fact that major profit downgrades will appear soon, and it can’t 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 Dohmen’s
Wellington Letter and author of Prelude To Meltdown (2007) and Financial Apocalypse (2011).’
Banks
still struggling, despite bailout (Washington Post) [ Yeah … that’s 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 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 ( 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 Today’s 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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 didn’t know and needed them to
tell us. Don’t
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? I’m 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
I’d
say they’ve
done quite enough … wouldn’t 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 who’ve literally
oftimes done exactly that; ‘cashing out’ for hard
currency and gold, precious metals, at everyone else’s 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.”
.. Bernanke’s 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 don’t 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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
THE OBAMA DECEPTION’ http://albertpeia.com/obamadeceptionhighqualityversion.flv
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!’
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})
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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but
precluded 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
- 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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 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.
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 nation’s taxpayers / middleclass who’ve 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
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!’
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})
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,
- 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 of Connecticut, who denied Coan’s requested relief as to Coan but
precluded 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
- 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 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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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
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 you’re right, you’re right. Can’t 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
I’d
say they’ve
done quite enough … wouldn’t 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 who’ve literally
oftimes done exactly that; ‘cashing out’ for hard
currency and gold, precious metals, at everyone else’s 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.”
.. Bernanke’s 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 don’t 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
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 |
|
||
|
# 1 |
11,877,218 |
|
|
|
# 2 |
6,523,706 |
|
|
|
# 3 |
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? Obama’s 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 wobama’s b***s***
have I become, it barely registered a ‘ho-hum’. He is so
pathetic! Such a total joke! I really mean it! There’s no
excuse whatsoever for ‘bush failure 3’, ‘wobama the b’! 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.
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...
RUSSIA [ The Rational
Pan-European Nation ] WARNS AGAINST STRIKE ON IRAN...
PAPER: Wall Street 'MORE
profitable'...
Extreme Poverty Now At Record
Levels...
REPORT: Greek PM to resign
today...
'Point of no return'...
BERLUSCONI TO BAIL?
Intrigue and betrayal in
Rome...
Speculation over departure
roils markets...
Italy: Too Big to Fail, Too Big to Save?
Allies push Berlusconi to
resign...
'The beginning of the end'...
Italy protesters rally
against Berlusconi...
... While Silvio naps
Defiant Berlusconi refuses
IMF bailout...
US approaches $15 trillion
debt limit...
CHINA: Europe induces 'sloth,
indolence'...
TRUTHFUL TRASH TALK (ABOUT
ISRAELI TRASH) BEHIND ISRAELI LEADER'S BACK Report: Sarkozy calls Netanyahu 'liar' Microphones accidently
left on after G20 meeting pick up private conversation between US, French
presidents. Sarkozy admits he 'can't stand' Israeli premier [ Yes …
netansayahu! ]
12 US TROOPS KILLED...
FREDDIE MAC seeks further $6
billion from taxpayers...
AIG records biggest loss
since 2009...
'I will never stand for
national anthem again. I will turn my back and I will raise fist'...
Judge Tosses TSA Case; Lawyer
told ruling 'national security'...
LEAVING 'FASCIST AMERICA',
VENTURA OFF TO MEXICO
WHITE HOUSE REJECTS
SOLYNDRA SUBPOENA...
US approaches $15
trillion debt limit...
G-20 Fails to Agree on IMF
Resources...
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...
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 … 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! ]
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). ]
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...
Obama Threatens Another Veto...
Just
hours after urging compromise...
Carney
Admits Obama Has No Plan...
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...
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'...
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'...
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'...
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.
]
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