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Archive for 2011

The Wall Street Occupiers and the Democratic Party

Courtesy of Robert Reich   

Occupy Wall Street

Image: Julia La Roche for Business Insider

Will the Wall Street Occupiers morph into a movement that has as much impact on the Democratic Party as the Tea Party has had on the GOP? Maybe. But there are reasons for doubting it.

Tea Partiers have been a mixed blessing for the GOP establishment – a source of new ground troops and energy but also a pain in the assets with regard to attracting independent voters. As Rick Perry and Mitt Romney square off, that pain will become more evident.

So far the Wall Street Occupiers have helped the Democratic Party. Their inchoate demand that the rich pay their fair share is tailor-made for the Democrats’ new plan for a 5.6 percent tax on millionaires, as well as the President’s push to end the Bush tax cut for people with incomes over $250,000 and to limit deductions at the top.

And the Occupiers give the President a potential campaign theme. “These days, a lot of folks who are doing the right thing aren’t rewarded and a lot of folks who aren’t doing the right thing are rewarded,” he said at his news conference this week, predicting that the frustration fueling the Occupiers will “express itself politically in 2012 and beyond until people feel like once again we’re getting back to some old-fashioned American values.”

But if Occupy Wall Street coalesces into something like a real movement, the Democratic Party may have more difficulty digesting it than the GOP has had with the Tea Party.

After all, a big share of both parties’ campaign funds comes from the Street and corporate board rooms. The Street and corporate America also have hordes of public-relations flacks and armies of lobbyists to do their bidding – not to mention the unfathomably deep pockets of the Koch Brothers and Dick Armey’s and Karl Rove’s SuperPACs. Even if the Occupiers have access to some union money, it’s hardly a match.

Yet the real difficulty lies deeper. A little history is helpful here.

In the early decades of the twentieth century, the Democratic Party had no trouble embracing economic populism. It charged the large industrial concentrations of the era – the trusts – with stifling the economy and poisoning…
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Dexia Not Isolated Problem; Qatar No White Knight Savior; How Long will the EFSF Last?

Courtesy of Mish

The rumor mill is running this weekend, however Belgium and France still have not come to an agreement on exactly how to split the Dexia problem. The latest rumor is the Mideast country of Qatar is interested in buying Dexia.

It’s certainly possible Qatar invests in some small piece of Dexia. However, neither Qatar nor China, nor any other country is going to save the insolvent European banking system.

Dexia is a symptom of a much larger problem. Moreover, on top of Belgium-France Dexia bickering, Germany and France are still bickering about how to use the EFSF.

It takes all 17 Eurozone nations all to agree on major changes, yet countries are still bickering over relatively minor issues.

Complex Problem Leads to Complex Bickering

Let’s start this roundup with a look at Dexia Board Meets as France, Belgium Tussle Over Troubled Assets

Dexia SA (DEXB)’s board meets today to study options to dismantle the French-Belgian bank that has brought Europe’s sovereign debt crisis to the heart of the region’s financial system.

While France and Belgium have rushed to protect their local units, hurdles to an agreement remain as they wrestle over responsibility for assets hit by the crisis that has caused the bank’s short-term funding to evaporate. Dexia’s troubled assets are being folded into a “bad bank” and could amount to as much as 190 billion euros ($254 billion).

Dexia’s balance sheet, with total assets of about 518 billion euros at the end of June, is about the size of the entire banking system in Greece and larger than the combined assets of financial institutions bailed out in Ireland in the last 2 1/2 years.

The board meeting, scheduled to start at 3 p.m. in Brussels, will be the third in less than a month, after those on Sept. 27 and Oct. 3. Among sticking points for Belgium and France may be which assets to put in the bad bank and what share of the lender’s borrowings each government should guarantee.

“The situation is more complex than one where you have one bank, one country, one regulator,” said Cor Kluis, an Utrecht, Netherlands-based analyst at Rabobank International with a “reduce” recommendation on Dexia. “The process will probably take longer than expected and I don’t know if they’ll be able to reach a solution this weekend.”

Dexia said on Oct. 6 that an investor is interested in


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When False Premises Become Economic Policy

Courtesy of ZeroHedge. View original post here.

Submitted by testosteronepit.

By Wolf Richter   www.testosteronepit.com

“A shame that we can’t see Japan because of the marine layer,” I said, and we both laughed because it was so silly. We were looking west from the top of the cliffs across the Pacific, and what we saw was a gray layer of fog just above the waves some distance offshore. That day we were lucky; often, the marine layer invades the Bay Area’s coastal strip, including much of San Francisco.

The premise that it would be possible to see Japan from the Pacific Coast if it weren’t for the marine layer is just as false as the premise that a healthy economy can result from running up huge deficits and printing money to monetize them. Yet, that’s the line propagated by the status-quo media and its economists. Sunday, the New York Times did it again.

“Evidence shows that quantitative easing boosts the economy, and there is no reason to believe that it feeds directly into inflation without supporting growth,” it quoted Martin Weale. He sits on the Bank of England’s Monetary Policy Committee, which voted on Thursday to restart the printing presses in a massive way.

The Fed has been following the same strategy, but its numbers are much bigger. It printed trillions of dollars and handed them over to its cronies. Monetization of debt and forcing interest rates to near zero has completely insulated the US Government from the budgetary discipline that credit markets can otherwise impose—and Congress went hog-wild, running up deficits that are near 10% of GDP. As a consequence, US gross national debt has shot up to 100% of GDP.

OK, the Fed and Congress bailed out Wall Street and enabled large corporations to borrow money essentially for free (among other benefits). But has that improved the real economy?

Unemployment is at catastrophic levels. U-6, the broadest measure of unemployment and underemployment has edged up to 16.5% (BLS report).

Inflation is heating up. CPI is up 3.8% from a year ago. While commodities have come down some, red-hot inflation from China has worked its way through the supply chains.

Real wages dropped 1.8% from a year ago, continuing a 12-year trend. From the wage peak in 1999, they have dropped 8-9%, depending on the formula (the Census Bureau reported a decline of
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Are Michael Vick and Other Celebrities Involved with a Pump and Dump?

Courtesy of Benzinga.

Alibaba Group (ALBCF) is apparently holding discussions with Temasek Holdings about providing funding to buy back the 40 percent stake of the Chinese business-to-business e-commerce company owned by Yahoo (NASDAQ: YHOO), according to sources.

The deal could be part of a larger bid for Yahoo with participation by Silver Lake and Russia’s Digital Sky Technologies.

Read the full article here.





Alibaba Seeks Funding from Singapore’s Temasek to Buy Stake From Yahoo -Bloomberg

Courtesy of Benzinga.

Alibaba Group (ALBCF) is apparently holding discussions with Temasek Holdings about providing funding to buy back the 40 percent stake of the Chinese business-to-business e-commerce company owned by Yahoo (NASDAQ: YHOO), according to sources.

The deal could be part of a larger bid for Yahoo with participation by Silver Lake and Russia’s Digital Sky Technologies.

Read the full article here.





Once Again, Because It Will Never Get Old, Here Are The Safest European Banks According To The Second Euro Stress Test

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The futures are soaring on the latest round of promises from Europe that all shall be well, and after all why would anyone ever doubt anything coming out of Europe. Why, here are the safest Europan banks according to the second Euro stress test completed just 3 short months ago. But this time really is different…

Source: Zero Hedge





European Mission Accomplished: Everyone Is Now Thoroughly Baffled With Bullshit

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Some time ago we suggested that in lieu of actual practicable solutions (and a promise to recapitalize several trillion worth of insolvent banks absent some magic money printing tree or gold coin defecating unicorn, is so stupid only the market ramping vacuum tube algos can believe, if only for a few hours), the only thing left for Europe’s leaders is to baffle absolutely everyone with relentless bullshit. Judging by the following Bloomberg news screencapture, they have now succeeded.

Presented without further snark.

h/t Charlie





How To Hide Your Gold: A Bloomberg Primer

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

A world insolvency crisis, a Thermidorian reaction in Egypt, a hard landing in China, the first non-PIIGS nationalized bank… The world is on fire yet despite all of the above (or rather due to) what is the topic of one of the most commented articles on Bloomberg over the past week? Why how to hide one’s gold. Bloomberg’s Ben Steverman writes: “If you’re looking for a safe place to put your investments, Chad Venzke has a suggestion: Dig a hole in the
ground four feet deep, pack gold and silver in a piece of plastic PVC pipe, seal it, and bury it. Venzke is hardly the only investor who wants his precious metals nearby at all times. A pound of gold worth about $24,000 can easily fit in a pocket; how to protect it is a decision that carries expensive consequences. Do-it-yourself investors who don’t trust banks must find creative storage options, whether burying gold in the yard, submerging it in a koi pond, stashing it behind air-conditioning ducts, or placing it under carpets.” Indeed, as Venezuela is about to reclaim possession of its tons of gold from UK vaults, even as the Dutch central bank proudly admit to hiding its own gold in precisely the same venues that are no longer good enough even for Chavez, the topic of where one should hide their physical is rapidly becoming a very incendiary. One thing is certain: among the hard core “physical” community, the idea of storing it in the same banking system that would be insolvent once the fiat status quo collapses, is verboten anathema. So what are the options?

Bloomberg continues.

[T]here are growing piles of precious metals in, under, or near American homes. From mid-2010 to mid-2011, U.S. investors bought up more than 100 tonnes of physical gold coins and bars, up from 15.2 tonnes in 2007, according to the World Gold Council. (A tonne, or metric ton, is 1,000 kilograms.) Worldwide bar and coin demand rose 37 percent during the mid-2010 to mid-2011 period, according to the Council, even as demand from exchange-traded funds backed by physical gold, and similar products, fell 84 percent.

 

The notion of keeping one’s gold in a safety deposit box—inside the banks many gold aficionados find


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Key Market Events In The Coming Week: More Promises, Headlines And Rumors; And A Very Critical Vote In Slovakia

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Despite a violent round trip during the week, most assets finished last Friday (October 7) at levels that were quite close to those seen at the end of the previous week. In fact, the DXY managed to change less than 0.1% from one Friday’s close to the next. Positioning indicators suggest speculative exposure remains virtually unchanged as well, and still stretched long USD. Outside G10 currencies, some very strong rallies have been recorded in EM space, with Latam currencies leading the pack.

During the week, the BOE surprised with more QE than expected, whereas the ECB delivered the strict minimum relative to market expectations – no rate cut, but a dovish assessment of the economic outlook, which opens the door for rate cuts before the end of the year. This came together with two new LTRO operations and a smallish covered bond purchase program. Markets were initially disappointed by the ECB action but the knee-jerk sell-off in risky assets and the Euro quickly reversed.

Last week’s macro data was generally close to low expectations or slightly better. Most of all, the payrolls and the non-manufacturing ISM in the US suggested that economic momentum has now clearly stabilised at low levels.

Key this week will be the final missing EFSF votes, in particular Slovakia. The latest headlines over the weekend suggest the governing coalition has still not found a compromise and will meet on Monday again. The votes of 22 MPs for the SaS party in the 150-member Slovakian government are now the main stumbling block to bringing the effective EFSF lending capacity to EUR440bn and to increase the EFSF’s flexibility. The parliamentary EFSF vote is scheduled for Tuesday. On Monday, the second-to-last vote on the EFSF will be held in Malta.

Still linked to the Eurozone crisis, President Sarkozy and Chancellor Merkel agreed over the weekend on the need for bank recapitalisations and the need to find a “durable” solution for Greece. There has also been talk about a “vision” for the Eurozone and a promise for a plan by the November 3 G20 summit. Markets will likely focus on any additional details regarding the bank recapitalisation plan. Of course, Greek issues will remain important as well, in particular after Troika officials have been quoted in the media as criticizing the Greek Government’s determination to
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Occupy Wall Street and Occupy the Fed: Two Sides of the Same Coin

Courtesy of ZeroHedge. View original post here.

Submitted by George Washington.

Occupy Wall Street and Occupy the Fed Are Two Sides of the Same Coin

The Occupy Wall Street protests are obviously targeting Wall Street, i.e. the giant banks.

The Occupy the Fed protests – led by Alex Jones, the Oathkeepers and other conservatives – are targeting the Federal Reserve. *

While some are trying to weaken these two movements through a divide-and-conquer strategy, the truth is that they are two sides of the same coin.

Specifically, the corrupt, giant banks would never have gotten so big and powerful on their own. In a free market, the leaner banks with sounder business models would be growing, while the giants who made reckless speculative gambles would have gone bust. See this, this and this.

It is the Federal Reserve, Treasury and Congress who have repeatedly bailed out the big banks, ensured they make money at taxpayer expense, exempted them from standard accounting and the criminal and fraud laws which govern the little guy, and encouraged them – through “moral hazard” – of becoming even more reckless.

Indeed, the government made them big in the first place. As I noted in 2009:

As MIT economics professor and former IMF chief economist Simon Johnson points out today, the official White House position is that:

(1) The government created the mega-giants, and they are not the product of free market competition

***

(3) Giant banks are good for the economy

And given that the 12 Federal Reserve banks are private – see this and this – the giant banks have a huge amount of influence on what the Fed does. Indeed, the money-center banks in New York control the New York Fed, the most powerful Fed bank. Indeed, Jamie Dimon – the head of JP Morgan Chase – is a Director of the New York Fed.

Any attempt by the left to say that the free market is all bad and the government is all good is naive and counter-productive.

And any attempt by the right to say that we should leave the giant banks alone because that’s the free market are wrong.

The Federal Reserve and the giant banks are part of a single malignant, symbiotic relationship.…
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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743"

Thank you for you time!

 
 

Insider Scoop

Relaxed Regulations Highlight Nuclear ETFs

Courtesy of Benzinga.

The Environmental Protection Agency is considering a review of its 1977 rule that limits the amount of whole-body radiation that any member of the public can be exposed to as a result of the uranium fuel cycle.

While they have not made any immediate determination to change the current level of 0.25 millisieverts per year of allowable radiation, they are reviewing the scientific data to decide if changes need to be made.

Items under review include water resource protection, spent fuel storage facilities and alternative technologie...



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Zero Hedge

The Stealing Of America By The Cops, The Courts, The Corporations And Congress

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by John Whitehead via The Rutherford Institute,

“What the government is good at is collecting taxes, taking away your freedoms and killing people. It’s not good at much else.” —Author Tom Clancy

Call it what you will—taxes, penalties, fees, fines, regulations, tariffs, tickets, permits, surcharges, tolls, asset forfeitures, foreclosures, etc.—but the only word that truly describes the constant bilking of the American taxpayer by the government and its corporate partners is th...



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Phil's Favorites

"No Perry Mason Moment": US Intelligence Admits "No Direct Evidence Linking Russia to MH17"

Courtesy of Mish.

Earlier today, and several times recently, I received emails accusing me of being a Russian spy and asking me how much I was receiving from RT. I find such accusations highly amusing.

Here's the deal: Few bloggers are willing to discuss MH17 for fear of getting it wrong. Whereas I suspect nearly everything, but especially reports coming from Kiev and the US. My reasons are threefold:

  1. There are more questions surrounding Kiev and US reports than Russian reports.
  2. Kiev has been caught twice in lies and distortions
  3. While neither US nor Russia is unbiased, the extremely one-sided, jump-to-conclusion reporting from Western media suggests close consideration of competing versions of stories is warranted.
No Perry Mason Moment
...

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Chart School

S&P 500 Snapshot: An Intraday Record High

Courtesy of Doug Short.

The pre-open release of the Consumer Price Index showed core inflation in June to be a tad lighter than forecasts. The S&P 500 opened at its 0.10% intraday low and rallied to its 0.64% record intraday high about ninety minutes into the session. Strong existing home sales announced at 10 AM certainly helped. The index spent the rest of the day in a narrow trading range and closed with a 0.50% gain, a mere 0.10% off its record close of July 3rd.

The yield on the 10-year note ended the day at 2.48%, 1 bp below yesterday's close. It is now only 4 bps above its interim closing low of May 28th.

Here is a 15-minute chart of the past five sessions. The S&P 500 is up 7.31% year-to-date.

Volume on the SPY ETF, whi...



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Option Review

Sizable Call Spread Trades On Orexigen

A large call spread initiated on Orexigen Therapeutics, Inc. (Ticker: OREX) on Monday morning looks for shares in the name to rally approximately 30% by September expiration. The September expiration is noteworthy as the company awaits the results of the FDA’s review of its resubmitted New Drug Application (NDA) for NB32, an investigational medication being evaluated for weight loss, after the review was extended for three months back in June. The upcoming Prescription Drug User Fee Act (PDUFA) date is September 11, 2014, according to a press release issued by the company. Shares in Orexigen today are up roughly 0.40% at $5.34 as of 2:15 p.m. ET.

...

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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Sabrient

Sector Detector: Bulls remain unfazed by borderline Black Swans

Courtesy of Sabrient Systems and Gradient Analytics

Despite a highly eventful week in the news, not much has changed from a stock market perspective. No doubt, investors have grown immune to the daily reports of geopolitical turmoil, including Ukraine vs. Russia for control of the eastern regions, Japan’s dispute with China over territorial waters, Sunni vs. Shiite for control of Iraq, Christians being driven out by Islamists, and other religious conflicts in places like Nigeria and Central African Republic. But last Thursday’s news of the Malaysian airliner tragically getting shot down over Ukraine, coupled with Israel’s ground incursion into Gaza, had the makings of a potential Black Swan event, which in my view is the only thing that could derail the relentless bull march higher in stocks.

Nevertheless, when it became clear that the airline...



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OpTrader

Swing trading portfolio - week of July 21st, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Please use your PSW user name and password to log in. (You may take a free trial here.)

#452331232 / gettyimages.com ...

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Market Shadows

Danger: Falling Prices

Danger: Falling Prices

By Dr. Paul Price of Market Shadows

 

We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...



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Digital Currencies

Bitcoin Vs Gold - The Infographic

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While Marc Faber has said "I will never sell my gold," he also noted "I like the idea of Bitcoin," and the battle between the 'alternative currencies' continues. The following infographic provides a succinct illustration of the similarities and differences between gold and bitcoin.

Please include attribution to www.jmbullion.com with this graphic.

...

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Pharmboy

Biotechs & Bubbles

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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Promotions

See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



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