Archive for 2010

HAVE YE DONE WELL FOR IRELAND?

Courtesy of williambanzai7

Famine

The Great Potato Famine

The Irish people are no strangers to famine, misery, oppression and exploitation. That is why I fished around to find something germane to the latest developments in Ireland.

I came upon an Irish woman who penned her patriotic poetry under the nome de plume, Speranza. Her real name was Jane Francesca Elgee.

Born in Wexford about the year 1826, Miss Elgee belonged to a strictly Protestant, and Conservative family who had no sympathy with national aspirations.

“Until my eighteenth year,” she stated, “I never wrote anything. Then one day a volume of ‘Ireland’s Library,’ issued from ‘The Nation’ office by Mr. Duffy, happened to come my way. I read it eagerly, and my patriotism was enkindled. Until then,” she continued, “I was quite indifferent to the national movement, and if I thought about it at all, I probably had a very bad opinion of the leaders. For my family was Protestant and Conservative, and there was no social intercourse between them and the Catholics and Nationalists. But once I had caught the national spirit the literature of Irish songs and sufferings had an enthralling interest for me. Then it was that I discovered that I could write poetry. In sending my verses to the editor of ‘The Nation’ I dared not have my name published, so I signed them ‘Speranza’, and my letters ‘John Fanshawe Ellis,’ instead of ‘Jane Francesca Elgee.

Her works were well known in her day, and I have taken the liberty to revise this one…

 

HAVE YE DONE WELL FOR IRELAND?

Speranza

(Revision by WilliamBanzai7)

O COUNTRY, writhing in thy chains of debt

With fierce, wild efforts to be free,

Not seeing that with every strain

The Ponzi globalists close firmer over thee;

Or grasping blindly in thy hate

The temple pillars of the bailed out State,

To hurl them down on friend and foe,

Crushed in one common currency overthrow—

Can none of all thy Poet band

Preach nobler aims, loved Ireland?

As David drove with magic chords

The Evil Spirit back to night;

As Moses by his mighty words

Led Egypt’s bondmen up to light;

Hast thou no Poet, strong to calm

Thy troubled soul with holy psalm?

Or trusted…
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In Entitlement America, The Head Of A Household Of Four Making Minimum Wage Has More Disposable Income Than A Family Making $60,000 A Year

Courtesy of Tyler Durden

Tonight’s stunning financial piece de resistance comes from Wyatt Emerich of The Cleveland Current. In what is sure to inspire some serious ire among all those who once believed Ronald Reagan that it was the USSR that was the “Evil Empire”, Emmerich analyzes disposable income and economic benefits among several key income classes and comes to the stunning (and verifiable) conclusion that “a one-parent family of three making $14,500 a year (minimum wage) has more disposable income than a family making $60,000 a year.” And that excludes benefits from Supplemental Security Income disability checks. America is now a country which punishes those middle-class people who not only try to work hard, but avoid scamming the system. Not surprisingly, it is not only the richest and most audacious thieves that prosper – it is also the penny scammers at the very bottom of the economic ladder that rip off the middle class each and every day, courtesy of the world’s most generous entitlement system. Perhaps if Reagan were alive today, he would wish to modify the object of his once legendary remark.

From Emmerich:

You can do as well working one week a month at minimum wage as you can working $60,000-a-year, full-time, high-stress job.

My chart tells the story. It is pretty much self-explanatory.

Stunning? Just do it yourself.

Almost all welfare programs have Web sites where you can call up “benefits calculators.” Just plug in your income and family size and, presto, your benefits are automatically calculated.

The chart is quite revealing. A one-parent family of three making $14,500 a year (minimu wage) has more disposable income than a amily making $60,000 a year.

And if that wasn’t enough, here is one that will blow your mind:

If the family provider works only one week a month at minimum wage, he or she makes 92 percent as much as a provider grossing $60,000 a year.

Ever wonder why Obama was so focused on health reform? It is so those who have no interest or ability in working, make as much as representatives of America’s once exalted, and now merely endangered, middle class.

First of all, working one week a


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Irish Citizens Sold Down the River in “Firepower of Stupidity”

Mish writes about how Irish Citizens Sold Down the River in "Firepower of Stupidity" - Ilene 

Courtesy of Mish 

Today the Irish Government sold its citizens into debt slavery by agreeing to guarantee stupid loans made by German, British, and US banks. Those loans fueled one of the biggest property bubbles in the world. Ireland has since crashed.

Ireland Agree To Bailout

Please consider Ireland Seeks Bailout as ‘Outsized’ Problem Overwhelms Nation

Ireland applied for a bailout to help fund itself and save its banks, becoming the second euro member to seek a rescue from the European Union and the International Monetary Fund.

Irish Prime Minister Brian Cowen said he expects talks on the package to be completed in the “next few weeks.” Finance Minister Brian Lenihan said the loan will be less than 100 billion euros ($137 billion), though he refused to give any further details at a press conference in Dublin today.

“A small sovereign like Ireland faced with an outsized problem that we have in our banking sector, cannot on its own address all those problems,” Lenihan said. Ireland may not draw down on the entire loan, he said.

While Ireland may not fully use any cash it gets from the EU and IMF, Lenihan said the size of the package “is important to demonstrate” the “firepower that stands behind the banking system.”

The Irish turmoil has also reopened tensions about the governance of the euro region after German Chancellor Angela Merkel last month called for bondholders to foot more of the bill of European bailouts. Her stance, criticized European Central Bank President Jean-Claude Trichet, sparked a bond market selloff.

Bondholders Should Foot Entire Bill

Trichet is pissed about common sense statement by German Chancellor Angela Merkel about who should foot the bill. Actually, Merkel did not go far enough. When you make stupid loans you pay the price. Or at least you should.

But no! Trichet as well as the Irish Prime Minister seem to think that Irish taxpayers should bail out the Irish banks (which is in reality a bailout of German, and UK banks that made piss poor loans to Ireland).

Why the average Irish citizen should have to bail out foreign bondholders is beyond me, but I do note that the same happened in the US with taxpayers footing an enormous bill for Fannie Mae, Freddie Mac, and…
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Swing trading virtual portfolio – week of November 22nd, 2010

This post is for live trades 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

Optrader 

Swing trading virtual portfolio

 

One trade virtual portfolio





Green Mountain Coffee Roaster: Sell or Celebrate?

By Ilene and Scott of Sabrient, and special thanks to Sam Antar of White Collar Fraud.

Cup of coffee

Green Mountain Coffee Roasters (NASDAQ: GMCR) has been at the center of controversy lately over certain accounting errors, an informal SEC inquiry, the questionable timing of insider sales, and a lingering patent expiration. Originally, on September 28, 2010, Green Mountain announced it was notified by the Securites and Exchange Commission (SEC) of an informal inquiry concerning “revenue recognition practices and the Company’s relationship with one of its fulfillment vendors.” At the same time, the company announced:

In connection with the preparation of its financial results for its fourth fiscal quarter, the Company’s management discovered an immaterial accounting error relating to the margin percentage it had been using to eliminate the inter-company markup in its K-Cup inventory balance residing at its Keurig business unit. Management discovered that the gross margin percentage used to eliminate the inter-company markup resulted in a lower margin applied to the Keurig ending inventory balance effectively overstating consolidated inventory and understating cost of sales. Management determined that the accounting error arose during fiscal 2007 and analyzed the quantitative impact from that point forward to June 26, 2010.

As of June 26, 2010, there is a cumulative $7.6 million overstatement of pre-tax income. Net of tax, the cumulative error resulted in a $4.4 million overstatement of net income or a $0.03 cumulative impact on earnings per share.

Initially, the company brushed off those accounting errors as “immaterial.” However, after the market closed on Friday November 19, 2010, Green Mountain disclosed that its internal investigation discovered additional accounting errors:

  • A $1.4 million overstatement of pre-tax income, cumulative over the restated periods, due to the under-accrual of certain marketing and customer incentive program expenses. The Company also has corrected the classification of certain of these amounts as reductions to net sales instead of selling and operating expenses. These programs include, but are not limited to, brewer mark-down support and funds for promotional and marketing activities. Management has determined that miscommunication between the sales and accounting departments resulted in expenses for certain of these programs being recorded in the wrong fiscal periods.
  • A $1.0 million overstatement of pre-tax income, cumulative over the restated periods, due to changes in the timing and classification of the Company’s historical revenue recognition


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A Full Body Scan of American Corruption

Gonzalo Lira takes A Full Body Scan of American Corruption and finds Michael Chertoff, a classic example of the kinds of conflict of interests that characterize high level government-corporate relations. – Ilene 

Courtesy of Gonzalo Lira

In the United States, if a policeman stops you for a traffic violation, and you offer him a $20 bill to forget about the whole thing, you’ll likely end up in jail.

But if you leave your Federal government job and go work as a consultant to the very industry you used to regulate, you won’t go to jail—you’ll grow rich. Very rich. 

Michael Chertoff is the poster boy for this institutionalized corruption going on in America today. He is not unique. He is not an outlier of any bell curve. If anything, Chertoff’s form of corruption is average—it’s ordinary. It’s what everyone is doing: Everything within the law, everything that the law says he ought to be doing—yet the net effect is a blatant corruption that is personally despicable, and socially disastrous.

Michael Chertoff was the head of the Homeland Security Agency from February of 2005, to January of 2009. But after he left, he formed an outfit called The Chertoff Group and was promptly hired by an obscure company called Rapiscan Systems.

The Chertoff Group, according to their website, “provides strategic security advice and assistance, risk management strategy and business development solutions for commercial and government clients on a broad array of homeland and national security issues.” 
 
That sounds . . . impressively vague. Slippery as a greased stripper’s pole, actually. So let’s approach this a different way: 
 
What does Michael Chertoff do?
 
Well, as of late, Michael Chertoff has been a one-man media tsunami: There isn’t a single talk show on all the networks on which he has not appeared—and in every single one of them, he is singing the praises of the airport body scanners that are being deployed throughout the United States.

These body scanners are supposed to spot explosives, weapons, and other “tools of terrorism”. As in the picture to the right, you get zapped by magic rays, and the Transportation Security Administration (TSA) worker checks the monitor to make sure you haven’t brought a bomb on board the plane.

On its face, airport body scanners seem eminently sensible: A way to thoroughly make sure that no terrorist gets on board a plane…
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Irish Member of Parliament Foresaw The Truth: “We Are Screwed As A Country Because Of The Wrongdoing Of Others”

Courtesy of Tyler Durden

A year ago Irish Green Party politician Paul Nicholas Gogarty told Irish Labor Party TD “With all due respect, in the most unparliamentary language; Fuck you, Deputy Stagg, fuck you!… We Are Screwed As A Country Because Of The Wrongdoing Of Others.” It took a year for Gogarty to be proven correct. Now that the “others” have been identified as virtually every UK and German bank, not to mention every insolvent financial institution in the world, and of course, the Fed’s banking buddies, one wonders: just how will Ireland respond? Also, when will America finally see one of its pathetic excuses for representatives finally do the right thing and actually speak the truth. InTrade over/under: never. 

h/t Karl Denninger





Goldman’s Take On The Irish Bailout

Courtesy of Tyler Durden

For what it’s worth, here is Goldman’s take on the Irish bailout. Since it was Goldman’s endless currency swaps that allowed Europe to lie about their deficits and true debt levels, this should certain by required spin reading.

From Francesco Garzarelli

Earlier tonight, Ireland applied for conditional funding assistance and will therefore be the first Eurozone sovereign accessing the EU-IMF support framework instituted in May. The latest European Economics Analyst provides background. There are still several uncertainties surrounding the deal, including the government’s political support (a by-election is due this Thursday), and negotiations on the banks. The yield spread between 5-yr Irish government bonds and their German counterparts has fallen by around 100bp from the 600bp highs reached on 11 November. At this point, we see scope only for a further 50bp tightening. That said, we think that this represents an important step towards a resolution of EMU sovereign woes, and a gradual relaxation of the risk premium that has built up in Italy and Spain, and in Eastern Europe.

Main Points

According to EU sources quoted by the newswires, the size of the package will be in the region of EUR 80-90bn. But this has still to be finalized, including the implications, if any for the Irish banks’ debt.  The amount is broadly in line with our estimates, and can easily be covered. Consider that the EFSM is endowed with EUR 60bn and EFSF has borrowing capacity of EUR 428bn (the portion guaranteed by Germany and France amounts to EUR 220bn). Additional IMF funding is available for up to 50% of the total amount drawn from the EFSM/EFSF with a ceiling of EUR 250bn. Both the UK and Sweden have announced they stand ready to provide bi-lateral loans.
Discussions on the cost of funds are also underway. We expect the EFSF (AAA-rated) to borrow in the region of 2.5% at the 5-yr maturity.  Assuming the terms are in line to those applied to Greece (which should represent a ceiling, given the different credit position of the two countries), the funding cost to Ireland would be along these lines:

  • EFSM/EFSF: Up to 3-yr maturity, Euribor or fixed swap + 300bp; Above 3-yr, Euribor or fixed swap +400bp; 50bp handling fee; (3-mth Euribor is currently 97bp)
  • IMF: Up to 3-yr maturity, SDR rate + 200bp; Above 3-yr, SDR rate + 300bp; Commitment fee,


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Insider Trading: Are There Really Cops?

Karl Denninger wonders about Insider Trading: Are There Really Cops? 

Courtesy of Karl Denninger, The Market Ticker 

Frustrated police officer

This is an interesting article….

Federal authorities, capping a three-year investigation, are preparing insider-trading charges that could ensnare consultants, investment bankers, hedge-fund and mutual-fund traders and analysts across the nation, according to people familiar with the matter.

The criminal and civil probes, which authorities say could eclipse the impact on the financial industry of any previous such investigation, are examining whether multiple insider-trading rings reaped illegal profits totaling tens of millions of dollars, the people say. Some charges could be brought before year-end, they say.

Wow, tens of millions of dollars?

How about the hundreds of billions extracted by people who had advance knowledge of various Fed and Treasury actions?

I mean, don’t get me wrong – there’s plenty of evil to go around here, and the leaking of deal-making is one of the dirty secrets of Wall Street.  Despite being very illegal it goes on all the time, with the most-serious violations coming from insiders in the investment banks, seconded only by those at companies that are trying to put deals together.

So-called "Expert Network" firms are supposedly beset by people who are subject-matter experts in a given field.  But their "expertise" often consists of cajoling interviews out of company insiders who are then pushed to disclose the intent of the firm to engage in some sort of corporate action that would bring the traders that hire the "experts" riches.

That is, they’re not studying the state of the art and trying to figure out who’s got the edge from publicly-available and thus unprotected information, using their expertise – instead they’re basically probing information that is not disseminated and available – such as who’s thinking of buying whom.

Trading on the former is legal – your analytical skill is perfectly legitimate.

Trading on the latter – prying material non-public information out of someone and then trading on it – is not legal; you’re bringing nothing in the form of analysis and skill to the table, but rather are using what amounts to a time machine to bet on yesterday’s horse race.  The law prohibits this and with good reason.

The practice is so common and unpunished that it’s become somewhat of an art…
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Tim Geithner Muses On Fed Independence, Redefines “Credibility”

Jr. Deputy Accountant reports that Tim Geithner Muses On Fed Independence, Redefines "Credibility,"  wonders what credibility he is referring to. – Ilene 

Watch him squirm! 

Bloomberg:

U.S. Treasury Secretary Timothy F. Geithner said the Obama administration would oppose any effort to strip the Federal Reserve of its mandate to pursue full employment and warned Republicans against politicizing the central bank.

“It is very important to keep politics out of monetary policy,” Geithner said in an interview airing on Bloomberg Television’s “Political Capital with Al Hunt” this weekend. “You want to be very careful not to take steps that hurt our credibility.”

Wait a second, bailing out Bear Stearns but allowing Lehman to die didn’t hurt their credibility? What about that whole thing with Crooked Pinky Hank Paulson going in front of Congress begging for TARP claiming that they’d use the money to buy crap assets and then turning around to use it as a bailout slush fund for suffering banks? Or how about that time the Fed decided to buy $300 billion in Treasurys and then decided that wasn’t enough and went for $600 billion instead? None of that hurt our credibility but somehow stripping the Fed of a duty it has failed miserably in anyway would? Please. WC Varones shares my sentiment on this issue, it’s a little late to start talking about politicizing the Fed now.

Timmy is confused as to the actual definition of credibility but that shouldn’t be shocking to anyone familiar with his sleazy hypocrite a**. After all, Timmy is the one who was president of the New York Fed as the bailout checks went out, "credibility" is the last word one might pluck from the dictionary when describing our esteemed Treasury Secretary.

Little Timmy met with several House GOP members last week, presumably trying to charm them into seeing his viewpoint and/or not making him look like a complete and total tool (as if he needs any help on that).

Fed Governor Daniel Tarullo felt compelled to point out last week that though the Fed is allegedly independent from the political whims of the moment (as in "Hey, Ben, it’s Barack. Can you guys do me a favor and print me up $600 billion or so? We’re a little low on cash and those f**king Chinese aren’t loaning us any more money, just tell them…
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Phil's Favorites

Overpriced tech IPOs sell grand visions but aren't worth their valuations

 

Overpriced tech IPOs sell grand visions but aren't worth their valuations

rblfmr / Shutterstock.com

Courtesy of John Colley, Warwick Business School, University of Warwick

The year of the tech IPO is 2019. Uber went public on May 10 with a US$82.4 billion valuation. Fellow ride-sharing app Lyft floated in March with a U$24 billion valuation and Pinterest had a US$10 billion IPO in April...



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Zero Hedge

Futures Slides As Trade Tensions Escalate

Courtesy of ZeroHedge. View original post here.

S&P futures were lower on Wednesday as investors sought safety in bonds, the Japanese yen and Swiss franc in muted trade amid renewed worries over the U.S.-China spat after reports Washington is considering cutting off the flow of American technology to as many as five Chinese companies including Hangzhou Hikvision Digital Technology, the world's largest supplier of video surveillance products, expanding the US crackdown on China beyond Huawei to include world leaders in video surveillance. The dollar and 10Y yield were unchanged ahead of today's FOMC Minutes.

...



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Kimble Charting Solutions

Emerging Markets About To Submerge If 3-Year Support Breaks?

Courtesy of Chris Kimble.

Are Emerging Markets about to “Submerge” and head a good deal lower? What they do at (3) will go a long way in answering this question!

Emerging Markets ETF (EEM) has been lagging the broad market for the past 15-months. They hit their 50% retracement level of the last year’s highs and lows and falling resistance at (2) recently. The weakness of last has EEM trading below its 200-MA line.

EEM has spent the majority of the past 3-years inside of rising channel (1), which reflects that this trend remains up. The weakness of late has it testing the bo...



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Insider Scoop

Amgen To Buy Danish Collaborator Nuevolution For $167M

Courtesy of Benzinga.

Amgen, Inc. (NASDAQ: AMGN) took a logical step forward in buying a preclinical biotech it has been collaborating with since 2016. 

What Happened

Amgen announced Wednesday an agreement to buy Copenhagen-based Nuevolution for $167 million.

Th...



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Chart School

Weekly Market Recap May 18, 2019

Courtesy of Blain.

China – U.S. trade talk continued to dominate the week.   A heavy selloff Monday was followed by 3 up days, with Friday moderately down.

On Monday, Chinese officials announced retaliatory tariffs against the U.S., hitting $60 billion in annual exports to China with new or expanded duties that could reach 25%.

Then on Wednesday:

The Trump administration plans to delay a decision on instituting new tariffs on car and auto part imports for up to six months, according to media reports.

...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

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

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 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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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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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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