Business Summary Links By Day
America’s
Coming Depression Posted by : Bruce Krasting Post date: 06/17/2012 Happy Father's Day! {
Truth be told, it’s already here, funny money election-year ponzis notwithstanding! }
, Massive
Wealth Destruction To Arrive This Year
http://albertpeia.com/massivewealthdestruction2012.htm , Stocks Edging Closer To Financial Cliff at Forbes, ‘.. The
value of all stocks is still almost double the 2009 lows, yet today incomes are
barely growing and realistically with all the headwinds we face there is no
hope for rapid growth anytime soon.Every few weeks I
feel the need to warn all that at some point stocks are likely to plunge.A little stock market history: Stock prices first
rose above Dow 1000 early in 1983. The silicon revolution that started back
then with the personal computer, led to the Internet in the 1990s and broadband
in the 2000s. The huge productivity gains made possible by the silicon chip has
dramatically increased global wealth; particularly the prices of stocks and bonds.In 1982 wages and salaries for all with jobs,
including bosses, was $1.6 trillion. That same year, the value of all U.S. stocks,
also known as the market cap, was around $1 trillion. Today wages and salaries
are about $6.8 trillion, which is more than four times what people made 30
years ago.While wages and salaries quadrupled over
the past 30 years; the value of all U.S. stocks has soared almost 18
times to $17.7 trillion today. One way of comparing wages and salaries with
stock prices is that in 1982 the market value of all U.S. stocks compared to wages and
salaries was 0.6 to 1. That means that all wages and salaries were more than
the value of all U.S. stocks.Today, the value of all U.S. stocks at close to $18
trillion is more 2.6 times the amount of all wages and salaries. In other
words, while wages have gone up over four times, the value of stocks have gone
up more than four times for each of the four fold gain in wages.So
why have stock prices gone up four times as fast as has wages? When wages grow
fast enough the basic human needs are more than adequately met and the next
thing people do is buy a better house. After the new house, the next use of new
money is to buy stocks. If wages keep growing faster than spending there will
be more new cash available then shares to invest in. More money chasing fewer
shares and the multiple of stock prices to both earnings and wages and salaries
will increase and multiply.To summarize, faster
growth in wages and salaries is a trim tab for stock prices. A trim tab sits on
the edge of a capital ships rudder. The little trim tabs turns, which creates a
vacuum that turns the rudder; which then turns the ship. I once heard
Buckminster Fuller say, to maximize change find the trim tabs. By the way
Fuller’s tombstone says, ‘Call Me Trim Tab.’But right
now wages and salaries are barely growing adjusted for inflation. Yet stock
prices even after the recent declines are still selling at almost double the
2009 lows. If in the past rapid growth in wages and salaries was necessary to
give a multiple boost to stock prices, how can stock prices be this high if the
economy is barely growing?The obvious answer is that
the central banks are trying to solve all the worlds problems via the printing
press. Central banks are indeed powerful. But central banks are only one player
on the global stage, yes the biggest, but still only one. At some point the
central banks will get trashed and the equities markets will drop probably back
to near the 2009 lows.Given how Europe is unraveling
and emerging markets rates of growth are slowing rapidly, we might be nearer to
a major correction than those with lots of money in stocks believe to be
true.’ , Forget
The Election Results - Greece Is Still Doomed And So Is The Rest Of Europe http://albertpeia.com/forgetelectiongreeceeuropedoomed.htm , No
One’s Asking the REAL Question That Matters for the EU… And It’s Going to Cost
Them June 18, 2012 By gpc1981 ‘..no one seems to be
asking THE key question regarding the EU:
Just
WHERE is the money for this bailout going to come from?.. only four
of the required 17 countries have even ratified the ESM (it’s supposed to be
completely ratified in July 2012).Moreover, you’ll note that the PIIGS as a whole are meant to contribute 36% of the ESM’s FUNDING!!!! Spain
and Italy
alone are meant to contribute 30%!!!! So…
Spain is supposedly going to
be bailed out by an entity that doesn’t
even exist yet… for
which Spain
is mean to contribute 12% of the funding. And to top it off… Spain hasn’t even ratified the fund itself!!! More
importantly, neither has Germany.
And it’s not clear that it will
either. Folks, the real deal is that Europe
is out of money. End of story…’ , Massive Economic Collapse http://w3.newsmax.com/a/aftershockb/video47.cfm?PROMO_CODE=EF5E-1 , "Textbook
Economics" Quote Of The Day
ZeroHedge.com Tyler
Durden on 06/18/2012 ‘For our quote of the day, we go to
none other than the Fed's favorite mouthpiece, the WSJ's
Jon Hilsenrath: Fed officials have been
frustrated in the past year that low interest rate policies haven't reached
enough Americans to spur stronger growth, the way economics textbooks say low rates should...
Multiply the fruit of cheap credit across millions of households—with healthy
portions of interest savings spent on goods and services—and the U.S. should be
recovering more quickly, according to
textbook economics. No... not the
textbooks... Does this mean... Economics 101 is... nothing but one epic lie, based on Ponzi
assumptions which work in a world of constant and gradual leveraging, and
completely fall apart in a deleveraging world such as the one we have now? , Biderman On Europe: "Germany Must Say No To Greece,
Spain, & Italy" , As
Part Of Its NEW QE Q&A, Goldman Warns Of Possibility For $50-$75 Billion
"Flow" Program , Guest
Post: How to Save Your Money And Your Life
‘You should do the following.
- Maintain significant bank and
brokerage accounts outside your home country. Consider setting up an
offshore asset protection trust. These things aren't as easy to do as they
used to be. But they'll likely be much less easy in the future.
- Make sure you have a significant
portion of your wealth in precious metals and a significant part of that
offshore.
- Buy some nice foreign real estate,
ideally in a place where you wouldn't mind spending some time.
- Work on getting official residency
in another country, as well as a second citizenship/passport. There's
every advantage to doing so, and no disadvantages. That's true of all
these things…’
Credit
Slumps But VIX Dump Drives Equity Pump
, Three
Charts Your Stockbroker Won't Want You To See While every long-only manager and jobbing
stockbroker is hard at work twisting the simple logic of 'but, but Central Banks will print and save the
world' into a much more appetizing 'US decoupling, cleanest-shirt, ignore Europe, earnings, profits,
money-on-the-sidelines' euphemism, we note that the following three
charts from UBS suggest that things are not quite as rosy as one might believe
- whether or not Ben speaks monetarily this week. Between consensus growth
expectations rolling over, the analyst upgrade/downgrade ratio turning negative
once again, and recent changes in US growth remain positively ecstatic relative
to global/regional changes; it would appear hope is a powerful (and
hallucinatory) drug (as is QE kool-aid). , As
Italy Hints Of Subordination, Did Rome Just Request A "Semi" Bailout? , Merkel Just Says
"Nein" , Frontrunning:
June 18 Submitted by Tyler
Durden on 06/18/2012 Greek radical leftist SYRIZA leader Tsipras says will not join coalition government
(as expected)
- Egypt
Islamists claim presidency as army tightens grip (Reuters)
- French Socialists vow reforms
after big poll win (Reuters)
- Greeks Back European Bailout (WSJ)
- France,
Socialists Win a Solid Majority (WSJ)
- Denmark Warns
over Pressure on Krone (FT)
- Obama to press Putin on Syria at
G20 amid skepticism (Reuters)...
Putin to smile
- China Home Prices Fall in Record
No. of Cities (Bloomberg)
- Europe Gets
Emerging Market Crisis Ultimatum As G-20 Meet (Bloomberg)
- Wolfgang Münchau
– What Happens if Angela Merkel Does Get Her Way (FT)
Romney: Obama doesn't deserve credit for any recovery { Because there is no real recovery; just increased debt,
increased prices to obfuscate the reality of no real recovery! }
UK
soldiers sacked days before pension date
London Telegraph | Soldiers
were sacked days before they qualified for a full pension, families of
servicemen have complained.
Bilderberg academic henchman preaches austerity for the
young
Digital Journal | A
distinguished academic is about to deliver a lecture on the virtues of
austerity. For us little people, not for himself and his
masters.
IMF
urges Europe to help refinance Irish bank bail-out
London Telegraph |
Consideration to take equity in state-owned banks to help Dublin return to bond markets and avoid a
second bailout next year.
EU May
Double Term of Irish Bailout: Report
Reuters | Thousands of people marched in
silence in New York to protest against street checks by police that rights
activists say disproportionately target blacks and Hispanics.
World
Bank chief calls Spanish bailout ‘wasted’
AFP | The head of the World Bank said
Sunday that Europe’s bail-out of the Spanish
banking system had been handled very badly and amounted to a wasted opportunity
to contain the debt crisis.
Fed
– Not Greece – Could Provide Boost to Euro This Week
CNBC | “(One) reason we expect the euro to
push higher has nothing to do with Greece. We think the Fed is going
to open the door to further stimulus (on Wednesday)”
Greece
faces race against time to form coalition government
UK Daily Mail | …as election stalemate sees
pro-bailout parties struggle to reach agreement that could save the euro.
AP Business
Highlights
...Yahoo Market
Update…
Infowars.com | Now is the time to put an end to Obama’s
treasonous and tyrannical behavior.
http://albertpeia.com/impeachobama.htm
Nancy Pelosi Wants to Amend the First Amendment Kurt Nimmo
| When Pelosi says “special interests,” she means interests opposed to
establishment Democrats. [ Here’s a look at the pelosi
/ wobama styled new california ( 16 Reasons To
Move Away From California http://albertpeia.com/16reasonstomoveawayfromcalifornia.htm ) . pelosi’s incompetent / senile in that chronological order. At
this point, wobama the b for b***s*** is just
incompetent but acts and seems as if he’s senile, particularly with regard to
previous things he’s said and prior promises that he’s made. ]
Drudgereport: Obama: 'Sometimes I Forget' Magnitude of Recession…{ Oh! How conveniently forgetful, though the vast majority
of americans don’t have wobama’s luxury of feigned amnesia suffering from what wobama
did and didn’t do contrary to promises last time around the perpetual campaign
trail littered with his typical jive-talking b***s***! The following headline
will help him remember some of his sordid, pot-clouded high school past! }...
FLASHBACK: Obama's Sordid High School Past...
By Ben Shapiro ‘While the Washington
Post has been diligently digging into relatively innocent high
school pranks
by Mitt Romney, they’ve spent the last few years diligently ignoring President
Obama’s far more controversial high school days.Obama,
by all accounts, was a habitual drug user in high school. He tried cocaine, he
admits in Dreams From
My Father; he “tried drugs enthusiastically.” The Chicago Tribune reported back in 2007 that
Obama thanked the “Choom Gang” in his high school yearbook; “chooming” was Hawaiian slang for smoking pot. The Honolulu Advertiser reported that Obama’s
senior portrait “prominently displayed … A package of ‘Zig-Zag’
rolling papers and a matchbook.” One of Obama’s close friends was arrested for
drug possession during high school.In his memoir,
Obama talked about routinely getting high. “Junkie.
Pothead,” he wrote. “That’s where I’d been headed: the final, fatal role of the
young would-be black man.” But, according to Obama, he only got high because he
was contemplating deep matters: drugs could “push questions of who I was out of
my mind.” Obama told students in 2007 that this activity constituted “goofing
off” and “wasting time”:"I will confess to you that
I was kind of a goof off in high school as my mom reminded me," Obama
said. "I went to high school in Hawaii,
so there's a lot of opportunity to goof off because the weather is really good
all the time …"You know, I made some bad decisions …. You know, got into
drinking and experimenting with drugs. There was a whole stretch of time where
I didn't apply myself. It wasn't until I got out of … high school, and went to
college that I started realizing, man, I wasted a lot of time.”The
New York Times, however, went
out of its way to find Obama’s classmates to testify that drugs played only a “bit
part” in Obama’s youth. Yet Obama would later brag on the campaign trail that
he “inhaled frequently … that was the point.”During
his high school years, Obama hung out with communist radical Frank Marshall
Davis; in 2007, the Los Angeles Times
reported that during his high school days, “he felt the first stirrings of
anger toward whites. He says he also delved into black
nationalism.” He was “offended or even enraged when white classmates
adopted black street slang or revealed their underlying consciousness of his
race by going out of their way to tell him how much they admired a black
musician or athlete.” This activity is certainly more reflective of Obama’s
ideological history than Mitt Romney’s pranks on teachers and fellow students.
And as for the drug use – well, that seems just a bit more serious than walking
a teacher into a door or cutting a student’s hair. But leave it to the Post to ignore or downplay all of that in
favor of continuing stories about Romney’s dog, his high school hijinks, and whatever other nonsense they can use to
protect President Obama from his own incompetence.’ Ben Shapiro is Breitbart News Editor-at-Large.
Follow him on twitter @benshapiro.
Cracks
in the Washington Post story on Romney’s ‘pranks’ emerge
Correction
Request: Washington Post Uses Falsehood in Romney Hit Piece
Media
Downplays Obama's Past, Tries to Define Romney with Teen Prank
If we're going to delve deep into a candidate's past, let's delve deep into a
candidate's past. Here's Obama in his own words admitting to physically shoving
a little girl named Coretta. Yes, it was at this moment that the first
shot in the War on Women was fired.http://albertpeia.com/obamashovesgirl.png
No doubt that after expending all that energy
bullying an innocent little girl, young Obama readied himself
for round two by eating a Golden Retriever. More on this breaking story here.If you're wondering what the rules
are regarding a candidate's past; how far back we're allowed to go in an
attempt to define them -- the answer is simple: the corrupt media will let
us know.
Washington Post Disgraces Itself By Targeting Romney's
'Anti-Gay' High School Pranks by Ben Shapiro { It
is true! The once great now failed newspaper, the washington
post, is an absolute disgrace! But a shadow of its former self, the post is
biased presumably owing to shared desperation with the failed president wobama in return for access. So egregious had the bias
become wherein ‘sensitive’ commentary antithetical to wobama
and his, seldom seemed to work/post properly; and, then of course, the post’s
pro-wobama perpetual darkness-induced blind
‘constituency’. I stopped posting there and have not visited their site since
nor will I ever again. A rather pathetic swansong / end / wind-down / final
chapter for what was once a great newspaper for which I had the utmost regard
and respect! }
Obama WILL NOT pursue gay marriage as
part of party platform...
STONE: 'Playing a cruel and cynical
game'...
Unites Republicans?
New Black Panther Niggers Plan Newspaper
Cover With Zimmerman In Noose { and civilized people everywhere should respond
with niggers in nooses and contributions to the Klu Klux Klan! } ...
LOONEY CLOONEYLAND: BIG CAMPAIGN
BOXOFFICE FOR NIGGERO – Meanwhile, looney clooneyland ain’t doin’ so well with
the niggero model – see next headline! ...
Failed Wobama model illustrated: 16 Reasons To
Move Away From California http://albertpeia.com/16reasonstomoveawayfromcalifornia.htm
Postal Service loses $3.2b in first
quarter...
78% of California 8th graders fail
national science test...
_______________________________________
{ some prior links of current interest }
