Business Summary Links By Day
The
Fed’s QE 3 Program: Short Term Thinking For Long-Term Pain September 14,
2012 http://gainspainscapital.com http://albertpeia.com/shorttermthinkinglongtermpain.htm { The problem is, it’s not even sound
short-term thinking. Oh sure, the fraudulent churn and earn markets are loving
this, yet some see this ‘non-economic’, costly obfuscating scam for its real
effect and detriment; ie., Egan-Jones downgrades U.S. rating on QE3 move , etc.. } Yesterday the Fed announced QE 3:
an open ended program through which the Fed will purchase $40 billion worth of
Mortgage Backed Securities every month until it decides that the world is right
again. The implications of this are severe. However, the first question we have
to ask is, “why now?”After all, stocks were already at 4-year highs, food and
energy prices were soaring, interest rates were at record lows, etc. On top of
this, the Fed failed to announce QE 3 for over a year (QE 2 ended June
2011). Why announce it now? There are
only two reasons: 1) Things
are in fact far worse behind the scenes than we know (the Fed HAD to do
something to get more money into the system)
2) Politics ..…’
Egan-Jones downgrades U.S. rating on QE3 move By Wallace Witkowski
SAN FRANCISCO (MarketWatch) -- Egan-Jones Ratings Co.
said Friday it downgraded its U.S. sovereign rating to AA- from AA on concerns
that the Fed's new round of quantitative easing, or QE3, will hurt the U.S.
economy. The ratings agency said the Fed's plan of buying $40 billion in
mortgage-backed securities a month and keeping interest rates near zero does
little to raise GDP, reduces the value of the dollar, and raises the price of
commodities. "From 2006 to present, the US's debt to GDP rose from 66% to
104% and will probably rise to 110% a year from today under current
circumstances; the annual budget deficit is 8%," Egan-Jones said in a
note. "In comparison, Spain has a debt to GDP of 68.5% and an annual
budget deficit of 8.5%."
Egan-Jones downgrades U.S. rating to AA- from AA
Inflation worries push TIPS ETF to new high
BREAKING:
Mo.'s Truman Bank is year's 42nd U.S. bank failure
U.S. stocks trim rise after U.S. downgrade
Oil briefly tops $100 after Fed stimulus pledge
Dave’s Daily: http://etfdigest.com [ Anti-American fury sweeps across an inflamed Muslim world { Despite casting this as being over a film,
it’s not just
the film; but as well, blowback for innumerable policy missteps that ultimately
included direct or indirect acts of violence/aggression. These people are not
blind, nor are they utter fools despite america et als’ foolish
assumptions and presumptions to the contrary. } ] ‘…Economic
data released Friday would normally be significant but not in this QE “more money
than brains” environment. The CPI came in as advertised (.6% vs
.6% expected & prior .1%; “core” .1% vs.2% expected & prior .1%) but remains the
manipulated joke passed off as legitimate data. Retail Sales were also about as
expected (.9% vs .8% expected & prior .9%) but then comes more comedy as
Retail Sales ex-gas & autos (.1% vs .4% expected & prior .8%) provides
a better picture. Industrial Production laid an egg (-1.2% vs 0% expected &
prior .5%) which is more difficult to manipulate. Consumer Sentiment jumped
(79.2 vs 73.5 expected & prior 74.3) but this too isn’t as
reliable a view as the Conference Board’s Consumer Confidence data which was crushed the
previously. Why the difference? The current data point is more heavily skewed
to stock prices. Lastly Business Inventories (.8% vs .5% expected & prior
.1%) you can draw two conclusions: companies are building inventory to meet
demand or they’re stuck trying to unload what has accumulated.The
infrequently modified DJIA dropped Kraft (KFT) and substituted United Health
Care (UNH) as the former is restructuring and spinning off subsidiaries. And,
as if it matters, lesser known but increasingly well regarded Egan
Jones downgraded U.S. debt once again from AA to AA- with the idea QE3 will
do more harm than good. (They’re so off the main narrative, eh?)So QE3 is in hand
and stocks followed through modestly higher led by financials (XLF), banks
(KBE) and materials (XLB). The dollar (UUP) continued its decline
(inflationary) while base (DBB) and precious metals (GLD & SLV) continued
to rise. Bonds (IEF) and (TLT) continued to decline. Volume continued to rise
Friday but we saw afternoon profit-taking as markets are short-term
substantially overbought. Breadth per the WSJ was positive once again…’
Stocks Are Not Cheap ZeroHedge.com 9-14-12
Valuations; stocks are cheap; money-on-the-sidelines; everyone's
bearish; trend is your friend. We've all heard them and we've all played them
but the following charts from Morgan Stanley will at least provide some nuance
of sense for those stunned into silence by a market seeing its nominal price
surging amid Bernanke blowing bubbles. The headline is - with real rates this low (and staying low for a few more years yet) current P/E
multiples are extremely high and even on a long-run
empirical basis, hope remains excessive at 22xShiller P/E versus an average
16x. Remember, a
long-term investment is a short-term trade gone bad. But it seems for now that
you buy because you'll always be able to sell it back higher to the next smarter
dumber greater fool.
Submitted by Tyler
Durden on 09/15/2012
Here are some common-sense rules for such a
"new market":
Is such a retail-trader friendly exchange
possible? There would certainly be a nice profit in it, for
everyone who is tired of providing liquidity for HFT firms would flee the
existing exchanges in a New York minute.
BofA
Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold
And $190 Crude , Rosenberg:
"If The US Is Truly Japan, The Fed Will End Up Owning The Entire
Market" ‘… The wealth effect may well stimulate
economic activity at the bottom of an inventory or a normal business cycle. But
this factor is really irrelevant at the trough of a balance sheet/delivering
recession. The economy is suffering from a shortage of aggregate demand.
Full stop. It just perpetuates
the inequality that is building up in the country, and while this is not a
headline maker, it is a real long term risk for the health of the country, from
a social stability perspective as well
, On
This Week In History, Gas Prices Have Never Been Higher , Egan Jones
Downgrades US From AA To AA- From
Egan-Jones, which downgraded the US for the first time ever last July, two
weeks ahead of S&P: "Up, up, and away - the FED's QE3 will stoke the
stock market and commodity prices, but in our opinion will hurt the US economy
and, by extension, credit quality. Issuing additional currency and depressing
interest rates via the purchasing of MBS does little to raise the real GDP of
the US, but does reduce the value of the dollar (because of the increase in
money supply), and in turn increase the cost of commodities (see the recent
rise in the prices of energy, gold, and other commodities). The increased cost
of commodities will pressure profitability of businesses, and increase the
costs of consumers thereby reducing consumer purchasing power. Hence, in our opinion QE3 will be
detrimental to credit quality for the US." , Guest
Post: QE3 And Bernanke's Folly - Part I
, Inflation
Expectations Suggest 5% Inflation Is In The Cards ‘…there is a clear lag between the rise in market-implied
inflation and it showing up in the unicorn-laden CPI prints [ Actually, it’s just plain understated, and,
not the first time they’ve lied … ( 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…) ] - what this means is
that given the hubris of the Fed yesterday, market expectations of inflation are inferring CPI could rise to over
5% within the next 3 to 6 months. It will surely be difficult
for Ben to keep-on-buying ('Finding Nemo'-like) in the face of that kind of
'transitory' rise in real data - though for now, real money remains bid as risk
comes off a little (even as the long-bond yield blows 26bps higher this week) -
oh and CPI and PPI jump their most in 3 years.’ , Germany
Opines: "Obama's Middle East Policy Is in Ruins" , Guest Post: This Is
Blowback ZeroHedge.com The YouTube
video depicting Mohammed is nothing more than the straw that broke the camel’s
back. This kind of violent uprising against American power and interests
in the region has been a long time in the making. It is not just the
continuation of drone strikes which often kill civilians in Pakistan, Yemen,
Somalia and Afghanistan, either. Nor is it the American invasions and
occupations of Iraq and Afghanistan. Nor is it the United States and the West’s support
for various deeply unpopular regimes such as the monarchies in Bahrain and
Saudi Arabia (and formerly Iran). Nor is it that America has long favoured
Israel over the Arab states, condemning, invading and fomenting revolution in
Muslim nations for the pursuit of nuclear weapons while turning a blind eye to
Israel’s nuclear
weapons and its continued expansion into the West Bank.
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 }
