Guest View
User: Pass: | become a member
Posts Tagged ‘taxpayer’

Even Though GM Lied and Said They Paid Us Back, They Say They’ll Need More Time to Pay Us Back

Even Though GM Lied and Said They Paid Us Back, They Say They’ll Need More Time to Pay Us Back

Courtesy of Jr. Deputy Accountant 

Wait a second… didn’t GM already claim to pay us back in slick commercials earlier this year or am I completely confused? If I’m not, GM said they paid us back but left out that A) they were using government money to do so and B) only paid back the part that was actually "loaned" and didn’t include the full $49.5 billion extended to GM should they need it. They argue that not needing it and instead using that money to pay back the government shows the company is in good shape but I argue that it only shows that our government is the worst loan sharking operation in history. It’s like taking out a payday loan to pay off the interest on the last payday loan except in the case of GM they get a way better interest rate than the 400% Western Union would charge for a few extra bucks til payday. 

USA Today:

General Motors’ new CEO, Dan Akerson, confirmed Thursday that the government — taxpayers, that is — won’t get back all the money put up to save GM from ruin in the car company’s initial public stock offering, expected as soon as mid-November.

[I]t’ll take a couple of years, at least, for the taxpayers to get back the remaining $43 billion in bail-out money the government invested to save GM from going out of business. It won’t all get paid back in the government’s initial sale of its GM shares later this year, he said, but over time investors will be willing to pay more for the shares and the goverment [sic] can get higher prices as it continues selling its 60.8% ownership of GM.

Treasury gets back the remaining $43 billion of bailout money. GM must be consistently profitable for investors to pay such prices, he acknowledged.

Great bargain for the American taxpayer if you ask me. Just let Bernanke and the HFT robots lube up for some $GM and we might actually see a few pennies back on every dollar.

What a joke.


Tags: , , ,




Debating the Flat Earth Society about Hyperinflation

Debating the Flat Earth Society about Hyperinflation

Courtesy of Mish 

Anglo-Saxon map of 900s showing a flat earth and the ocean that was thought to surround it. British Museum

Over the past few weeks, many people have asked me to comment on John Hussman’s August 23, 2010 post Why Quantitative Easing is Likely to Trigger a Collapse of the U.S. Dollar.

Most wanted to know how that article changed my view regarding deflation. It didn’t.

Several others went so far as to tell me that Hussman was calling for hyperinflation. They were point blank wrong.

Here is the pertinent section from Hussman’s September 6, 2010 post The Recognition Window.

A note on quantitative easing

One of the things I’m increasingly dismayed to learn is that no matter how much detail, data, and qualification I might include in these commentaries, my conclusions will often be summed up by writers or bloggers in a single sentence that often bears no relation to my point. For instance, my view that quantitative easing will trigger a "jump depreciation" in the dollar has evidently placed me among analysts warning of hyperinflation and Treasury default (a club whose card is nowhere in my wallet).

To clarify once again – I emphatically do not anticipate inflationary pressures until the second half of this decade. As I’ve repeatedly emphasized, the primary driver of inflation – historically and across countries – has been growth in government spending for purposes that do not expand the productive capacity of the economy.

Quantitative easing does not pressure the dollar by fueling inflation. It has a much more subtle effect (but one that can be expected to be amplified if fiscal policy is long-run inflationary as it is at present). Normally, equilibrium in capital flows between countries is achieved through changes in interest rates. As a result, countries with greater capital needs or higher long-run inflation tendencies also have higher interest rates. If interest rates can adjust, exchange rates don’t have to. But notice what quantitative easing does: by sitting on long-term bond yields (and creating a negative real interest rate differential versus other countries), quantitative easing prevents bond prices from acting as an adjustment factor, and forces the burden of adjustment on the exchange rate.

While some observers have noted that the value of the Japanese yen did not deteriorate dramatically over the full course of quantitative easing by the Bank of Japan – from its beginning until it was finally wound down


continue reading


Tags: , , , , , , , , , , , , , , , , , , , ,




Richmond Fed’s Lacker: Housing is a Small Part of the Economy, No Worries There

Richmond Fed’s Lacker: Housing is a Small Part of the Economy, No Worries There

Courtesy of Jr. Deputy Accountant 

Apparently my dearest most favorite Fedhead has the memory capacity of a goldfish and has conveniently forgotten what happened in housing not even two full years ago. But hey, it’s his economic outlook, not mine.

Business Week:

“I don’t expect a dramatic worsening” in housing, Lacker said. “Housing is such a small portion of the economy now it’s a little less capable of doing damage. I think we can withstand some shocks to housing and some fluctuations to housing.”

Sales of bomb shelters, bunkers, freeze-dried food and gold bars did notdecline on this news. 

My question for dear JML is as follows: Does housing become a problem when the federal government is forced to put zombie GSEs on sheet and thereby factor in that hot mess to their overall budget considerations? Take your time, I’ll be here when you’ve got an answer. How about when the Fed is finally forced to jack up interest rates, thereby ending banks’ free money fest, thereby cutting off a large chunk of Treasury buyers, thereby pushing mortgage rates through the roof? Is it a problem then?

Lacker made his comments to reporters at the opening of Richmond Fed’s extravagant new $4 million money museum. No problems to report in central banking, that’s for sure. 

 


Tags: , , , , ,




British Petroleum…The Fannie Mae of Oil

Howard Lindzon, last week, definitely bearish on BP and the southern coast of the U.S.

British Petroleum…The Fannie Mae of Oil

British Petroleum $BP is worthless. It may trade for 2-3 more years and even rally now that I have blogged my opinion (no position), but stop the insanity.

The American taxpayer owns it. Figures. No upside, all the downside.

My dog likes to dig holes and I am running around my backyard of my rental home filling them in. I have also set up a $40 cleanup fund for all the restaurants whose toilet seats I have peed on. You just can’t be too careful now that there is a small hole in the center of the earth. Protect your balance sheet people.

Back to $BP…for 99.9 percent of investors, there is no reason to do involve yourself with the company other than to send money to the clean-up efforts. If you have a 401k, your sh*tty mutual fund manager already owns the stock and is buying more. The good news is he did the same thing with homebuilding stocks.

My pal ‘The Fly ‘ sums it up well:

If you’re buying BP, you might as well cop some “jumbo” with that and smoke it up while you invest. That f^king stock is heading “Titanic” in a matter of 1 months time, no floating door included. Sure, you can “take a gamble” and hope that the news doesn’t hit when you are long. However, more often than not, plans such as that fail in spectacular fashion.

Folks, BP is destroying the entire Southern coastline of the Unites Steaks of America. ROFL. And you want to go long? That stock is going to $20, then $10, in my estimation. I will buy it then, as a form of BRITISH LOTTERY.

Yep.

We are a charitable nation…Fannie Mae $FNM (delisted and worthless), Freddie Mac $FRE (same) and Shittyank $C (oh so close) have pledged millions to the cleanup effort. That’s wierd seeing they are worth less than my dog’s turds. I too hereby pledge $1 bazillion to Green Peace. I shall tweet it and it will be fact.

Comical…yet sad. 


Tags: , ,




How is that GM Bailout Coming Along?

New GM Cars Run on Efforts of U.S. Taxpayers

Optoon's Review on GMBy Op-Toons Review

Excerpt: "…we thought it best to cut out the middle man and have taxpayers themselves power GM cars."

More Op-Toons Review on GM innovation here.>>

See also: 

GM Repays Government Debt; Was The Bailout A Success?

Courtesy of Mish 

GM repaid $6.7 billion in US loans and another $1.4 billion in Canadian government loans. So where does that leave GM? Let’s take a look.

Please consider Gas in the tank: GM repays $8.1B in gov’t loans

Fallen giant General Motors Co. accelerated toward recovery Wednesday, announcing the repayment of $8.1 billion in U.S. and Canadian government loans five years ahead of schedule.

Much of the improvement comes from GM slashing its debt load and workforce as part of its bankruptcy reorganization last year. But the automaker is a long way from regaining its old blue-chip status: It remains more than 70 percent government-owned and is still losing money — $3.4 billion in last year’s fourth quarter alone. And while its car and truck sales are up so far this year, that’s primarily due to lower-profit sales to car rental companies and other fleet buyers.

The U.S. government still owns 61 percent of GM. The automaker is counting on a public stock offering to allow the U.S. government to begin recouping its remaining $45.3 billion investment. The Canadian government’s $8.1 billion stake, which equals a 12 percent ownership interest, also could also be unlocked if GM sells shares to the public.

GM lost $88 billion between 2004, when it last turned a profit, and last year when it declared bankruptcy. It endured years of painful restructuring, closing 14 factories and shedding more than 65,000 blue-collar jobs in the U.S. through buyouts, early retirement offers and layoffs.

GM received $52 billion from the U.S. government and $9.5 billion from the Canadian and Ontario governments starting in 2008. At first the entire amount of U.S. aid was considered a loan as the government tried to keep GM from going under and pulling the fragile economy into a depression.

But during bankruptcy, the U.S. government reduced the loan portion to $6.7 billion and converted the rest to company stock. Canadian governments also converted part of their debt to shares, reducing its loan balance to $1.4 billion. The final installments on those loans were repaid Tuesday, comfortably beating


continue reading


Tags: , , , , , , , ,




How Lehman, With The Fed’s Complicity, Created Another Illegal Precedent In Abusing The Primary Dealer Credit Facility

How Lehman, With The Fed’s Complicity, Created Another Illegal Precedent In Abusing The Primary Dealer Credit Facility

Courtesy of Tyler Durden

Five months ago, Zero Hedge observed the nuances of the Federal Reserve’s Primary Dealer Credit Facility (PDCF) and concluded that this artificial liquidity boosting construct was nothing more than yet another scam to allow banks to extract ever more money from taxpayers, with the complicit blessing of the Federal Reserve Board Of New York (as the original piece also provided an in-depth discussion of the triparty repo market which is now a parallel to the buzzword of the day in the form of Lehman’s "Repo 105" off balance sheet contraption, it should serve as a useful refresher course to anyone who wishes to understand why while Repo 105 with its $50 billion in liability contingency may have been an issue, the true Repo market, with over $3 trillion of likely just as toxic assets, is where the real pain in the future will come from). The PDCF would allow assets of declining and even inexistent value to be pledged as collateral, thus making sure that taxpayer cash was funneled into sham institutions holding predominantly toxic assets, and whose viability was and is limited, yet still is backed by the Fed, which to this day continues to pour our money into them. Today, with a tip from the NYT’s Eric Dash, we demonstrate just how grossly negligent the Federal Reserve was when it came to Lehman’s abuse of the PDCF, and how the trail of slime of Lehman’s increasingly obvious manipulation of its books goes to the very top of the Federal Reserve Bank of New York, and its then governor – a very much complicit Tim Geithner.

1. The Liquidity Conundrum And the PDCF

In our original piece, we posited the following observation on the Fed’s constant involvement in liquidity provisioning, particularly in the context of the repo market:

Here is the liquidity crunch in its full flow-chart glory:

  1. If can not obtain short-term (overnight or term) funding in repo market, go to Eurodollar market
  2. If can not obtain short-term funding in Eurodollar market (LIBOR), go to asset sales
  3. If asset sales are impossible due to lack bids, illiquid markets, and collateral consists of toxic MBS and CCC-rated junk bonds, yet margin calls are streaming and repo counterparties are demanding their


continue reading


Tags: , , , , , , , , , ,




Exposing The Story Behind Goldman’s Record Profits – Part 2: The Role Of The Taxpayer

Exposing The Story Behind Goldman’s Record Profits – Part 2: The Role Of The Taxpayer

Courtesy of Tyler Durden

Do Goldman employees deserve any compensation, much less the $16 billion paid out in salaries and bonuses in 2009 when one considers that the firm would not only have no money to pay, but would be defunct had the US taxpayer not stepped in and bailed them out? Should this money have been used to prepay the firm’s $20 billion TLGP exposure instead, thus truly making the firm independent of taxpayer support, instead of just claims to Goldman’s public funding independence? Will the wave of public anger, now that President Obama has suddenly and inexplicably done a 180 degree turn and sides with the middle-class instead of the financial executives, take Goldman down at the next black swan occurrence? Is Goldman hypocritical in claiming it did not need a bailout after it rushed to become a bank holding company? Is Goldman a doomed business model which relies solely on the existence of the "greater fool" to sell to? Will its monopolist and ever-larger dominant status result in an implosion in the financial industry (especially with the DOJ continuing to deny there is any anti-trust problem)? All these questions and more seek answers in the just released Part Two of the PBS series "Is taxpayer money behind profits at Goldman Sachs."

We recommend watching Part One of the PBS series in advance of the clip below.

 


Tags: , , , ,




Three Ring Currency Circus: China, Japan and the US

Three Ring Currency Circus: China, Japan and the US

Courtesy Joshua M Brown, The Reformed Broker

elephants

So China’s gonna zig while Japan zags and the US, umm, lags.

As I documented in my earlier post (that I wrote at 4:30 in the morning while Sweet Pea was spitting up formula on my Ralph Lauren comforter), Japan is bent on weakening the Yen in an effort to recharge its export industry.  China, on the other hand, is beginning a tightening program to chill out the real estate speculators and curb inflation.

From the New York Times:

China’s central bank raised a key interest rate slightly on Thursday for the first time in nearly five months, in what economists interpreted as the beginning of a broader move to tighten monetary policy and forestall inflation.

As any economist will tell you, China is the world heavyweight champ when it comes to currency market manipulation intervention.  Through a process of issuing large amounts of renminbi to buy US dollars/ bonds, then issuing central bank bills to claw some of the excess renminbi back, China is able to keep their currency weak which stokes the competitiveness of its exports and preserves jobs.

My message here is a simple one:  We are watching the greatest three ring circus in experimental economics history.

In the left ring, Japan is in Yen debasement mode under the stewardship of their 6th Finance Minister in less than 2 years.  In the right ring, China is now attempting to cool off their wildly successful stimulus program with a tightening cycle.  And not to be left out, in center stage, Bearded Ben is trapped between a not-quite-so-successful monetary stimulus plan and a mongoloid recovery that has only triumphed thus far in the juicing up of commodities, stocks and junk bonds.

Central bankers as ringleader, metals and energy prices as the strong man, China as barely-tamed lion, Japanese stuffed in the clown car and the US taxpayer as the guy who cleans up after the elephants.

Ladies and gentlemen, please refrain from flash photography during the performance.

Read also:

Japan’s New Kamikaze Central Banker (TRB)

Chinese Decision on Rates Seen as ‘Turning Point’ (NYT)

 


Tags: , , , , , , , , , , ,




Compassion Fatigue

The release of the Special Inspector General of the TARP’s (SIGTARP) report on the Federal Reserve’s bailout of AIG’s counterparties to the tune of 100 cents on the dollar has triggered some debate among commentators. It seems clear that the Fed had the leverage to negotiate a better deal on behalf of the taxpayers, but utterly failed to do so. But just how horrendous was the Fed’s failure? - Ilene

Compassion Fatigue

Courtesy of The Epicurean Dealmaker 

"No matter how many times you save the world, it always manages to get back in jeopardy again. Sometimes I just want it to stay saved, you know? For a little bit? I feel like the maid: ‘I just cleaned up this mess! Can we keep it clean for … for ten minutes?!’"

— The Incredibles

I don’t know about you, Dear and Long-Suffering Readers, but I am beginning to worry about Yves Smith[See Yves's Very Abbreviated Takedown on SIGTARP Report on AIG CDS Payouts]

The indefatigable blogger and soon-to-be-published author is really showing the strain of commenting from the front lines of the global financial crisis, as she has done, admirably, from the very beginning. Today, she lit into Neil Barofsky’s SIGTARP post mortem on the New York Fed’s disbursement of billions of taxpayer dollars to cancel credit default swaps written by the pathetic boobs at AIG. AIG sold those swaps, you may remember, under the cheerfully naive assumption that, as long as you hold a AAA credit rating and employ a bunch of overpaid financial engineers in a fancy office on Curzon Street, you can write as many naked puts on as much toxic crap as you like with no consequences. Much as I would be delighted to learn otherwise, I believe we may safely consider that presumption to be dead, buried, decayed, mixed into topsoil, and completely absorbed into the Earth’s mantle via tectonic subduction by now.

In the meantime, however, the rest of us continue to live with the consequences of AIG’s tomfoolery, and Ms Smith remains understandably upset about this state of affairs. So much so, in fact, I think she rather unfairly pans Mr. Baroksky’s report as unacceptably timid and mealy-mouthed. I read her to say she would rather have the report blast the Fed’s mishandling of the AIG crisis in no uncertain terms, not sugarcoat its…
continue reading


Tags: , , , , , , , ,




The Rich Have Stolen the Economy

From Offshoring Jobs to Bailing Out Bankers

The Rich Have Stolen the Economy

big banksBy PAUL CRAIG ROBERTS at CounterPunch

Bloomberg reports that Treasury Secretary Timothy Geithner’s closest aides earned millions of dollars a year working for Goldman Sachs, Citigroup and other Wall Street firms. Bloomberg adds that none of these aides faced Senate confirmation.  Yet, they are overseeing the handout of hundreds of billions of dollars of taxpayer funds to their former employers. 

The gifts of billions of dollars of taxpayers’ money provided the banks with an abundance of low cost capital that has boosted the banks’ profits, while the taxpayers who provided the capital are increasingly unemployed and homeless.  

JPMorgan Chase announced that it has earned $3.6 billion in the third quarter of this year.

Goldman Sachs has made so much money during this year of economic crisis that enormous bonuses are in the works. The London Evening Standard reports that Goldman Sachs’ “5,500 London staff can look forward to record average payouts of around 500,000 pounds ($800,000) each. Senior executives will get bonuses of several million pounds each with the highest paid as much as 10 million pounds ($16 million).“

In the event the banksters can’t figure out how to enjoy the riches, the Financial Times is offering a new magazine--”How To Spend It.”  New York City’s retailers are praying for some of it, suffering a 15.3 per cent vacancy rate on Fifth Avenue. Statistician John Williams (shadowstats.com) reports that retail sales adjusted for inflation have declined to the level of 10 years ago: “Virtually 10 years worth of real retail sales growth has been destroyed in the still unfolding depression.”

Meanwhile, occupants of New York City’s homeless shelters have reached the all time high of 39,000, 16,000 of whom are children. 

New York City government is so overwhelmed that it is paying $90 per night per apartment to rent unsold new apartments for the homeless. Desperate, the city government is offering one-way free airline tickets to the homeless if they will leave the city. It is  charging rent to shelter residents who have jobs. A single mother earning $800 per month is paying $336 in shelter rent.

job lossesLong-term unemployment has become a serious problem across the country, doubling the unemployment rate from the reported 10 per cent to 20 per cent.  Now hundreds of thousands more Americans
continue reading


Tags: , , , , , , ,




 

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!

 
 

Chart School

S&P 500 Snapshot: A Small Gain After Some Typical Gaming of the FOMC Statement

Courtesy of Doug Short.

The S&P 500, not surprisingly, remained subdued in advance of the 2 PM Fed action, which included the FOMC statement and a separately released set of economic projections (PDF format). The trader gaming began about 15 minutes before the statement was released and continued through Chair Yellen's 2:30 PM press conference. After the Fed inspired volatility, the index closed with a small gain of 0.13%.

The yield on the 10-year Note closed at 2.62%, up 2 bps from yesterday's close. It is now 28 bps above its 2014 low.

Here is a 5-minute chart of that illustrates today's fast trade gamesmanship.

Check out t...



more from Chart School

Zero Hedge

Goldman's Yellen Press Conference Post-Mortem: "Few Surprises"

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Via Goldman Sachs' Jan Hatzius,

BOTTOM LINE: There were few surprises from Fed Chair Yellen's post-FOMC press conference.

MAIN POINTS:

1. Yellen made two slightly dovish remarks on labor market developments. First, she stated directly that she felt the slow increase in wages was indicative of labor market slack. Second, she said that her own personal view was that there was a "meaningful" cyclical shortfall in participation, when asked about a recent paper by some Fed authors indicating otherwise.

2. On the topic of "considerable time," Yellen declined to provide any specificity on what the phrase means ...



more from Tyler

Phil's Favorites

The Dollar!!

A lesson in the relativity of money. Our dollar is not ahead in the race to zero, the Yen and Euro are taking the lead. Anyway, I do not believe the dollar is going to zero, for the record. 

THE DOLLAR!!

Courtesy of , Business Insider

Bam. The dollar is on a damn tear.

Here is a chart of the dollar surging against the Yen after that Fed announcement. Obviously, people believe that rate hikes are coming sooner than previously thought.

...



more from Ilene

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...

more from David

Insider Scoop

United Parcel Service, Inc. Shares Follow FedEx Corporation Shares Higher On FedEx Earnings Beat

Courtesy of Benzinga.

Related FDX Stocks Hitting 52-Week Highs Morning Market Movers Buyback Mania Inflates 2Q Earnings Growth (Fox Business)

Before the opening bell today, FedEx Corporation (NYSE: FDX) reported better-than-expected revenue ($11.7 billion vs. $11.47 billion) and EPS ($2.10 vs. $1.94...



http://www.insidercow.com/ more from Insider

Promotions

See Live Demo Of This Google-Like Trade Algorithm

If GOOGLE, the NSA, and Bill Gates all got together in a room with the task of building the most 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… they never got around to building it, but my colleagues 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 but traded a handful of conservative alerts since its inception, you would have experienced portfolio gains exceeding 200%!

Plus, when you register for the webinar you’ll g...



more from Promotions

Sabrient

Sector Detector: Bulls go down swinging, refusing to give up much ground

Courtesy of Sabrient Systems and Gradient Analytics

Although the stock market displayed weakness last week as I suggested it would, bulls aren’t going down easily. In fact, they’re going down swinging, absorbing most of the blows delivered by hesitant bears. Despite holding up admirably when weakness was both expected and warranted, and although I still see higher highs ahead, I am still not convinced that we have seen the ultimate lows for this pullback. A number of signs point to more weakness ahead.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-r...



more from Sabrient

OpTrader

Swing trading portfolio - week of September 15th, 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 ...



more from OpTrader

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. Enjoy!

[Sign in with your PSW user name and password, or take a free trial here.]

Image courtesy of Business Insider, Jay Yarow's This Is The Best Description Of How Apple's Business Works Right Now.

 

...

more from SWW

Option Review

Big Prints In VIX Calls

The CBOE Vix Index is in positive territory on Friday morning as shares in the S&P 500 Index move slightly lower. Currently the VIX is up roughly 2.75% on the session at 13.16 as of 11:35 am ET. Earlier in the session big prints in October expiry call options caught our attention as one large options market participants appears to have purchased roughly 106,000 of the Oct 22.0 strike calls for a premium of around $0.45 each. The VIX has not topped 22.0 since the end of 2012, but it would not take such a dramatic move in the spot index in order to lift premium on the contracts. The far out-of-the-money calls would likely increase in value in the event that S&P500 Index stocks slip in the near term. The VIX traded up to a 52-week high of 21.48 back in February. Next week’s release of the FOMC meeting minutes f...



more from Caitlin

Digital Currencies

Making Sense of Bitcoin

Making Sense of Bitcoin

By James Black at International Man

Despite the various opinions on Bitcoin, there is no question as to its ultimate value: its ability to bypass government restrictions, including economic embargoes and capital controls, to transmit quasi-anonymous money to anyone anywhere.

Opinions differ as to what constitutes "money."

The English word "money" derives from the Latin word "moneta," which means to "mint." Historically, "money" was minted in the form of precious metals, most notably gold and silver. Minted metal was considered "money" because it possessed luster, was scarce, and had perceive...



more from Bitcoin

Market Shadows

Helen Davis Chaitman Reviews In Bed with Wall Street.

Author Helen Davis Chaitman is a nationally recognized litigator with a diverse trial practice in the areas of lender liability, bankruptcy, bank fraud, RICO, professional malpractice, trusts and estates, and white collar defense. In 1995, Ms. Chaitman was named one of the nation's top ten litigators by the National Law Journal for a jury verdict she obtained in an accountants' malpractice case. Ms. Chaitman is the author of The Law of Lender Liability (Warren, Gorham & Lamont 1990)... Since early 2009, Ms. Chaitman has been an outspoken advocate for investors in Bernard L. Madoff Investment Securities LLC (more here).

Helen Davis Chaitman Reviews In Bed with Wall Street. 

By Helen Davis Chaitman   

I confess: Larry D...



more from Paul

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...



more from Pharmboy



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...

Learn more About Phil >>


As Seen On:




About Ilene:

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.

Market Shadows >>