Business Summary Links By Day
Dave’s Daily: http://www.etfdigest.com ‘DRAGHI GIVES BULLS WHAT THEY WANT 9-6-12
Bullish algos bought immediately after Draghi’s
announcements. They aren’t interested in the details just the headlines which
told them more money printing was on the way. Draghi stated there would be “conditions” to their
bond buying of various sovereign debt but details of these conditions were
illusive. He also stated QE would be unlimited in scope and confined to 0-3
year maturities. When asked if he thought traders would “game” this he
said they’d monitor this. (His former employer Goldman Sachs
would probably do whatever they want thank you.) Asked if these decisions were
unanimous and he said no. Later the Bundesbank reiterated their opposition but
that seems a mere inconvenience. In fact, since the ECB will be buying bonds in
the secondary market vs primary the German court ruling will not matter.Draghi
also spent some time discussing that bond markets in the eurozone were
distorted due to misperceptions which seemed laughable frankly. He also stated
later that problems in the global economy weren’t the fault of the eurozone fingering the U.S.
financial crisis obliquely.Not to be left out the Bank of England noted it
would continue its bond buying program.Bulls also glommed onto to the ADP
Employment report showing 201K private jobs created. Many of these were part
time workers and only 3K was in manufacturing but again, algos aren’t
interested in the details. Jobless Claims were better (365K vs 370K expected
& prior revised higher once again to 377K from 374K). These prior revisions
are batting 1000 this year and while claims data improved they’re still
trolling along unacceptable levels. In fact, so many have exhausted their
benefits the data becomes misleading.Beyond the details stocks rallied sharply
scoring one of the best trading days in 2012. Stocks globally due to ZIRP and
QE remain highly correlated picking leaders more difficult as is creating a
diversified portfolio. Just pick the sector with the highest beta, like small
caps (IWM) and stick with that since you don’t need many ETFs or stocks. Bonds (IEF) were weaker
as equities rallied while the dollar (UUP) was also weaker. Commodities (DBC)
and precious metals (GLD) & (SLV) continued to rally as easy money from
central banks debases fiat currencies.On deck Friday is the monthly employment
report which could add fuel to the QE fire domestically. And, let’s not
forget Bernanke’s own boasts about higher stock prices as a result of
Fed policies (ZIRP & QE). The central planners have gone too far down this
QE road to stop now. Doing so serves their short-term political agendas for
when markets meet their maker they’ll be long gone. The important part of QE is the
money created goes directly to banks and then may trickle down to people. This
is why QE and ZIRP have only helped stocks but not unemployment or economic
growth.Investment Tip: With
equity markets highly correlated one sector and country to another you don’t need many
stocks or ETFs to create a portfolio as diversification attempts are futile.
With global QE, less is more.Volume increased dramatically on the ECB’s money
printing as investors know stocks can inflate too. Breadth per the WSJ was
quite positive and some sectors scored a 90/10 day it seems...’
Today's move can be summarized in one
word: euphoria. The same euphoria every previous instance of central planning
intervention has engendered, only to fade days, weeks or months later. But for
the time being it will suffice, and send the S&P to fresh post 2008 highs.
In the meantime, below is the definitive note summarizing what has just
happened, courtesy of Pierpont Securities via Bloomberg.
And, we should add, once the Greek
realize they were just swindled by the ECB's refusal to implement retroactive
pari passu status on the now-defunct SMP program, in the process preventing the
reduction in Greek debt by tens of billions as it gets the same treatment as
all other Greek debt as part of the country's recent restrcuturing, the
political upheavals will return.
But for now, as said above, we have
euphoria. Enjoy it while it lasts.
http://theeconomiccollapseblog.com
http://albertpeia.com/40statsyourenotbetteroff.htm
Guest
Post: Economic Fallacies And The Fight For Liberty ZeroHedge.com It’s easy to be pessimistic over the future prospects of
liberty when major industrialized nations around the world are becoming
increasingly rife with market intervention, police aggression, and fallacious
economic reasoning. The laissez faire ideal of a society where people
should be allowed to flourish without the coercive impositions of the state is
all but missing from mainstream debate. In editorial pages and televised
roundtable discussions, a government policy of “hands off” is now an unspeakable option. It is presumed
that lawmakers must step up to “do something” for the good of the people. Thankfully, this
deliberate false choice will slowly but surely bring the death of
itself. Illogical theories can only go on for so long before the
push-back becomes too much to handle. For those who desire liberty, it’s a joy
that the statist economic policies of the Keynesians become even more
irrational as the Great Recession drags on. The two following examples will
illustrate this point…’ , The
Glass-Half-Full, Glass-Half-Broken 'Goldilocks' Payroll Preview , Peter
Schiff Discovers No Country For Corporate Profits , The
Post Globalized World Part 2: Why The PIGS Are (Still) Out Of Luck , The
One Chart To Explain Why Draghi's Blunt Tool Can't Fix Europe The monetary policy transmission mechanism
is broken in Europe; we all know it and even ECB head Draghi has admitted it
(and is trying to solve it). As Bloomberg economist David Powell noted though, Draghi may have to address the economic fragmentation of the euro area
before undoing the financial fragmentation of the region. The
latter may just be a symptom of the former. The Taylor Rule, a policy
guideline that models a monetary authority’s interest rate response to the paths of inflation
and economic activity, highlights the drastically different monetary
policies required across the various EU nations as a result of their variegated
domestic economic conditions. This variation creates concerns over
sustainability and the rational (not irrational as Draghi would have us
believe) act of transferring deposits to 'safer' nations for fear of
redenomination. As Powell notes: Draghi will probably have to convince market
participants of the economic sustainability of the monetary union before the
financial fragmentation of the region is ended. The large-scale extension of central bank credit to potentially
insolvent countries is unlikely to accomplish that - as economies remain hugely
divergent. , The
New Normal Of Investing: Bonds For The Price, Equities For The Yield , The Death
Of IPOs, And Why It Matters To You
, A
Gentle Reminder Of The (In)Effectiveness Of Prior ECB Bond Buying , In
His Own Words: Draghi's Debasement In Two Minutes In case you missed it. Here is Draghi's two minute diatribe,
courtesy of Bloomberg TV, sprinkled liberally with every algo-headline-seeking
word required to raise the perception that something actually just happened
other than smoke, mirrors,… , Non-Manufacturing
ISM Comes Diametrically Opposite To Manufacturing Indicator (In other
words, cooked/fudged/b***s***)
Three
Times As Many Americans Enter Poverty As Find Jobs
zerohedge.com | June saw a new surge in Americans
living in poverty and thus eligible for foodstamps.
Michael Tennant | The U.S.
government is sitting on a mountain of debt — literally.
European
Stocks Could Correct Up to 20%: Marc Faber
CNBC | European stocks, which have been
in a broad upswing for the past three months, could retreat by up to 20
percent, presenting an opportunity to move back into the market, says Marc
Faber.
AP Business
Highlights
...Yahoo Market Update…
http://albertpeia.com/archives.htm
FBI Nazi
Bikers Bust FBI Nazi Bikers - What's Up At The FBI/DOJ?
Infowars.com | Now is the time to put an end to Obama’s
treasonous and tyrannical behavior.
http://albertpeia.com/impeachobama.htm
Wobama’s
Choom Gang Bangin’ { This brief video (11 mb) is well done and worth a
watch! }
http://www.albertpeia.com/wobamaschoomgangbangin.wmv
PAPER:
Obama's grandfather tortured by the British? A fantasy (like most of the
President's own memoir)... {
http://albertpeia.com/wobamaschoomgangfantasy.htm }
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
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.
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
Postal Service loses $3.2b in first quarter...
78% of
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{ some prior links of current
interest }