Posts Tagged ‘easy money’

Helicopter Ben Bernanke Says Everything Is Going To Be Okay

Helicopter Ben Bernanke Says Everything Is Going To Be Okay

Courtesy of Michael Snyder at Economic Collapse 

Don’t worry everybody. Federal Reserve Chairman "Helicopter Ben" Bernanke says that the U.S. economy is going to be just fine, and that if it does slip up somehow the Federal Reserve is ready to rush in to the rescue. That was essentially Bernanke’s message to an annual gathering of central bankers in Jackson Hole, Wyoming on Friday. Bernanke insisted that even though the Federal Reserve has already cut interest rates to historic lows it still has plenty of tools that could be used to stimulate the U.S. economy if necessary.

Well, considering Bernanke’s track record, the "don’t worry, be happy" mantra is just not going to cut it this time. After all, if Bernanke and his team were such intellectual powerhouses the "surprise" financial crisis of 2007 and 2008 would not have caught them with their pants down. The truth is that just before the "greatest financial crisis since the Great Depression" Bernanke was telling everyone that the economy was just fine. So are we going to let him fool us again?

But Bernanke insists that this time is different.  This time the Federal Reserve really has got a handle on things.  During his remarks at Jackson Hole, Bernanke said that the Fed will adopt "unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly."

Unconventional measures?

Could that be a thinly veiled way of saying that Helicopter Ben and his pals will do as much "quantitative easing" as they feel is necessary to keep the economy moving forward?…
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The Rush for Money from Somewhere Other Than Work

The Rush for Money from Somewhere Other Than Work

money sourcesCourtesy of Charles Hugh Smith Of Two Minds

As jobs dry up, people are rushing to find some other source of income.

Both statistically and anecdotally, a rush to tap non-wage sources of income is underway. While shopping in an old-line hardware store slated for closure, the clerk assisting us noted as an aside, "I’m 62, so I can retire." He is not alone, as correspondent Craig M. sent in this story describing a leap in Social Security applications: Social Security Applications Almost Double Because of Recession

Applications for Social Security benefits rose almost 50 percent more than expected this year because of the recession, according to the federal retirement program.

“We are seeing a significant increase in both retirement and disability applications as a result of the recession,” said Mark Lassiter, a Social Security spokesman.

The 150,000 extra retirees may add to the financial pressure on the entitlement program. In May, Social Security trustees said expenses would exceed revenue beginning in 2016, one year earlier than their previous forecast.

The Social Security Administration had projected an increase of 315,000 applicants for the 12 months ending Sept. 30 partly because the first baby boomers — those born right after World War II — are starting to retire.

The actual increase was higher. Agency statistics show that 2.57 million people requested benefits, up from the 2.10 million applications received during the previous 12 months. That’s an increase of 465,000, or 47 percent higher than the expected rise.

Another standard source of non-wage income is disability and workers compensation. Social Security is receiving more applications for disability, and at least anecdotally there is some evidence that people about to get laid off are attempting to tap the workers compensation system as a backup source of income, in effect saving their unemployment insurance. Filing a "stress claim" just prior to being laid off freezes the worker’s employment status: they remain employed but are not costing the employer wages.

Eventually, the workers compensation fund paid by employers is depleted and the rates employers pay into the system will rise--but as a stopgap, an injury or stress claim relieves both employer and employee.

This being a litigious society, I suspect there is a rise in employment-related lawsuits. One of our friends who operates a small restaurant was just served with…
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WSJ Video: The End of Wall Street

WSJ Video: The End of Wall Street – Part One 

Courtesy of Edward Harrison at Credit Writedown

Here’s a credit-crisis video retrospective from the Wall Street Journal. It is chapter one of a three part series.  Notice the Wall Street meme that subprime borrowers caused the crisis which is patently false.  It’s all about dodgy credits and Fannie and Freddie? Total rubbish. 

But, of course, if you say it enough, people might believe you.  Read this post "Ten Myths about the Subprime Crisis" on Economist’s View to see the real story.

Easy money, as the clip says, is the culprit. And this money went into credit cards, leveraged buy outs, residential housing, student loans, commercial property and on down the line.  It’s not about subprime, my friends I like the rest of it, but remember the Wall Street Journal has a certain bias and it is reflected here.

Chapter One: In the first of this three-part series, WSJ reporters explain how the housing bubble inflated and burst, and why easy money led to the collapse of Wall Street’s biggest financial institutions.

 

WSJ Video: The End of Wall Street – Part Two

This is part two of the End of Wall Street series the Wall Street Journal is producing.

Chapter Two of A WSJ series: What was going through the minds of CEOs, corporate boards, fund managers and mortgage lenders as they created hard-to-understand derivatives Warren Buffett once called "weapons of financial mass destruction."

You have to love how it starts off with Alan Murray saying “There’s plenty of blame to go around. I think in retrospect lots of people who were doing stupid things.”  Then the famous NYSE opening bell goes off and they cut to a shot of Alan Greenspan.

I couldn’t help but think about Tim Iacono’s site when I saw this.  Watch this video.  They really takeoff the gloves here. Regulators and the rating agencies get a severe beat-down. Well-done.

 
 

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Zero Hedge

The Robots Win: Blackrock Bets On Computers Over Human Stock Pickers, Fires Dozens

Courtesy of ZeroHedge. View original post here.

The writing had been on the wall - and countless online articles  - for a long time...

... and on Tuesday it finally hit the world's largest asset manager, where in the war between passive-investing robots and active-investing humans, the humans lost. As the WSJ reports, at Blackrock, the era of the s...



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Chart School

Rallies Come Through

Courtesy of Declan.

Bulls were able to deliver across the board gains, helping to position yesterday's action as a swing low. Weakness at this point would offer itself as a buying opportunity, but markets wouldn't tolerate more than a couple of days of losses if they were to go down this route.

The S&P is at resistance of the prior swing low and the 20-day MA, but today's action is looking good for an upside break tomorrow? Technicals are firmly in the red and need more than today's gain to fix them.



The Nasdaq did today...

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ValueWalk

Following 'Repeal And Replace,' What's The Fate Of Health Care?

By Knowledge Wharton. Originally published at ValueWalk.

On March 24, President Trump and congressional Republicans pulled their proposed American Health Care Act before it could come up for a House vote, realizing it was dead on arrival. They had failed in their self-proclaimed mission to “repeal and replace” the Affordable Care Act (ACA), a.k.a. Obamacare. Many Republicans have been angling to get rid of the law ever since it was enacted in 2010.

DarkoStojanovic / PixabayHealth Care

The ACA remains in place for now, but many on both sides of the aisle feel it’s far from perfect. And the day after the cancelled vote, Trump tweeted that Obamacare would...



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Kimble Charting Solutions

Silver bear market could end here!

Courtesy of Chris Kimble.

Below looks at the performance of Silver, Gold and the S&P 500 year to date. Metals and miners are off to a good start in 2017. Even though the stock market has received a good deal of attention this year, metals have done even better. Is the performance in 2017 the start of something even bigger for Silver & Gold?

CLICK ON CHART TO ENLARGE

It’s been a long time since buy and holders have experienced a bull market in Silver. How long has it been? Silver has created a series of lower highs since 2011. The trend ...



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Phil's Favorites

Consumer Confidence Strongest Since December 2000: A Strong Contrarian Indicator?

Courtesy of Mish.

Consumer Sentiment and Consumer Confidence are similar measures by two different organizations. The former is from the University of Michigan, the latter is by the Conference Board.

Consumer Confidence soared to 125.6 in March, up from 116.1 in February. This is the strongest reading in over 16 years.

Bloomberg Econoday cites the strength in both the current index and the expectations index, emphasis mine.

Highlights

It was two cycles ago that the consumer confidence index has been this high, at 125.6 in March for the strongest reading ...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

The Biggest Risk From the Dollar's Drop May Not Be What You Would Guess (Bloomberg)

Whipsawed by the greenback and confronted by U.S. policy confusion, carry trades were supposed to be a rare bright spot for investors who want to stay away from the world’s biggest reserve currency.

These Charts Show Alarm Bells Ringing on the Trump Trade (Bloomberg)

Investors on Monday further unwound trades initiated in November resting on the idea that the election of Donald Trump and a Republican Congress meant...



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OpTrader

Swing trading portfolio - week of March 27th, 2017

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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Members' Corner

More Natterings

Courtesy of The Nattering Naybob

[Click on the titles for the full articles.]

A Quick $20 Trick?

Summary

Discussion, critique and analysis of the potential impacts on equity, bond, commodity, capital and asset markets regarding the following:

  • Last time out, Sinbad The Sailor, QuickLogic.
  • GlobalFoundries, Jha, Smartron and cricket.
  • Quick money, fungible, demographics, QUIK focus.

Last Time Out

Monetary policy is just one form of policy that effects capital,...



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Digital Currencies

Bitcoin Tumbles Below Gold As China Tightens Regulations

Courtesy of Zero Hedge

Having rebounded rapidly from the ETF-decision disappointment, Bitcoin suffered another major setback overnight as Chinese regulators are circulating new guidelines that, if enacted, would require exchanges to verify the identity of clients and adhere to banking regulations.

A New York startup called Chainalysis estimated that roughly $2 billion of bitcoin moved out of China in 2016.

As The Wall Street Journal reports, the move to regulate bitcoin exchanges brings assurance that Chinese authorities will tolerate some level of trading, after months of uncertainty. A draft of the guidelines also indicates th...



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Mapping The Market

Congress begins rolling back Obama's broadband privacy rules

Courtesy of Jean Luc

I am trying to remember who on this board said that people wanted to Trump because they want their freedom back. Well….

Congress begins rolling back Obama's broadband privacy rules

By Daniel Cooper, Endgadget

ISPs will soon be able to sell your most private data without your consent.

As expected, Republicans in Congress have begun the process of rolling back the FCC's broadband privacy rules which prevent excessive surveillance. Arizona Republican Jeff Flake introduced a resolution to scrub the rules, using Congress' powers to invalidate recently-approved federal regulations. Reuters reports that the move has broad support, with 34 other names throwing their weight behind the res...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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Biotech

The Medicines Company: Insider Buying

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

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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All About Trends

Mid-Day Update

Reminder: Harlan 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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FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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