Archive for 2011

Visualizing What $1.2 Trillion In Secret Fed Bailouts To The Banking Kleptocracy Looks Like

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While Bloomberg has done a tremendous job of digging through 29,346 pages of FOIA data, its discovery is not at all surprising: that Wall Street’s (not to mention the rest of the world’s) biggest banks received a total of $1.2 trillion in previously secret Fed loans, in addition to the trillions in public backstops and loans from the US Treasury. As a reminder, “denominated in $1 bills, the $1.2 trillion would fill 539 Olympic-size swimming pools.” The best summary of this ongoing collusion between the Fed and Wall Street, in which it once again for the nth time becomes clear that all the Fed cars about is making sure its banking masters are never impaired, is from the article itself: “Even as the firms asserted in news releases or earnings calls that they had ample cash, they drew Fed funding in secret, avoiding the stigma of weakness.” And there you have it: everything that come out of Wall Street is and has always been a lie: either courtesy of 30 years of great interest rate moderation, in which only cheap money adds to banks’ top and bottom lines, or due to the Fed making sure the same banks never suffer a dollar loss when central planning fails, such as it does increasingly often lately (and forget about 10(b)-5 violation charges coming from the corrupt regulators: after all they are all in bed together). That Morgan Stanley, Dexia and Citi are, and have been since 2008, dead men walking, is by now known to all financially literate readers: additional confirmation can be found in the Bloomberg article, which we won’t paraphrase because it has all been said over and over. That said, Bloomberg has done a great visual interactive chart summary of who got what, when, how much, over peak and average metrics and so forth. We urge readers to play around with it (don’t worry, it won’t break the banks; and if it does the Fed will secretly bail them out again) and every time they consider putting money into our “solvent” financial system.





Cogstate Acquires 100% Holding of Axon Sports

Courtesy of Benzinga.

CogState (COGZF) today announced that it will acquire the remaining 50% stake in Axon Sports, resulting in Axon Sports becoming a 100% owned subsidiary.

Axon Sports provides online cognitive assessment to assist in evaluating and managing sports-related concussions. For CogState, the management of concussion in sport is a fast growing market, providing enormous opportunity for growth of revenue and profitability in the short term.

The 100% control of Axon Sports will allow CogState to utilise the Axon Sports online testing and associated materials to pursue the sports concussion markets outside North America.

Importantly, 100% control of Axon Sports means that CogState is in a position to take full advantage of current opportunities being discussed with large pharmaceutical companies with the aim of making CogState technology available to clinicians as a low cost, non -invasive, screening tool that could be provided within a clinician?s surgery, in numerous indications, including sports concussions.

CogState will acquire the 50% stake for 7,461,831 CogState Ltd fully paid ordinary shares at a notional price of $0.17 per share.





Guest Post: Print It And They Will Come

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

From Peter Tchir of TF Market Advisors

Print It And They Will Come

I have to admit, I never understood Field of Dreams.  I “get” why it was popular – a quasi-mythical figure who just “knows” things.  Some good looking guys with enough sentimental moments to make women happy, and just enough baseball to make guys not cringe.  But honestly, I never understood the movie.

So, what does that have to do with printing money?  I guess I just don’t understand the fascination with it.  Why is printing money the best solution?  Why isn’t trying to pick up the pieces after some defaults, a better solution than printing.  With stock futures down again already, and Jackson Hole coming up, you know we will hear Wall Street (and anyone caught long) clamoring for the Fed and ECB to PRINT more money.  It seems to be the only “solution” to the debt burden too many countries are facing.  I agree that it is the only way to avoid some defaults and some pain.

But is the cure worse than the problem?  There will be problems if we let Greece default. It would drag down some banks, which would not be good – short term.  But I remain convinced that in 10 years, economists will praise FDR’s patience.  They will talk about how waiting for the system to recalibrate was a difficult but important decision.  Only once the system had “reset” would the policies work to create a great rebound.  We will learn that throwing money out of a helicopter only gets the money caught in the blades, destroying most of it, and possibly damaging the helicopter.  Those who felt Countrywide needed to be saved, or Bear Stearns had to be saved, will be vilified.  Those that let Lehman go, will be questioned on why they didn’t do a couple of things (guarantee swap lines, for example) but in the end, will be respected for their willingness to let excesses collapse, and let those that were prepared to prosper.

Every time we come up with a new “solution” to our problems, we gravitate towards “unknown” unknowns.  Maybe we should just take our medicine and try and deal with “known” unknowns.  I don’t know much about Rumsfeld, but that phrase resonates with me.  We continue to put out new…
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Print It And They Will Come

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

From Peter Tchir of TF Market Advisors

Print It And They Will Come

I have to admit, I never understood Field of Dreams.  I "get" why it was popular – a quasi-mythical figure who just "knows" things.  Some good looking guys with enough sentimental moments to make women happy, and just enough baseball to make guys not cringe.  But honestly, I never understood the movie.

So, what does that have to do with printing money?  I guess I just don’t understand the fascination with it.  Why is printing money the best solution?  Why isn’t trying to pick up the pieces after some defaults, a better solution than printing.  With stock futures down again already, and Jackson Hole coming up, you know we will hear Wall Street (and anyone caught long) clamoring for the Fed and ECB to PRINT more money.  It seems to be the only "solution" to the debt burden too many countries are facing.  I agree that it is the only way to avoid some defaults and some pain.

But is the cure worse than the problem?  There will be problems if we let Greece default. It would drag down some banks, which would not be good – short term.  But I remain convinced that in 10 years, economists will praise FDR’s patience.  They will talk about how waiting for the system to recalibrate was a difficult but important decision.  Only once the system had "reset" would the policies work to create a great rebound.  We will learn that throwing money out of a helicopter only gets the money caught in the blades, destroying most of it, and possibly damaging the helicopter.  Those who felt Countrywide needed to be saved, or Bear Stearns had to be saved, will be vilified.  Those that let Lehman go, will be questioned on why they didn’t do a couple of things (guarantee swap lines, for example) but in the end, will be respected for their willingness to let excesses collapse, and let those that were prepared to prosper.

Every time we come up with a new "solution" to our problems, we gravitate towards "unknown" unknowns.  Maybe we should just take our medicine and try and deal with "known" unknowns.  I don’t know much about Rumsfeld, but that phrase resonates with me.  We continue to put out new…
continue reading





Chinese Think Tank Implies America May Be Falsifying Its Accounting, Says US On Way To Default

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Joe Biden came to China, saw, and failed to conquer the locals’ ridicule. Punctuating just how "effective" Biden’s visit to China was in order to "reassure that the US is solvent" (no seriously, that;s the name of the article) is a just released article in the Securities Times by Wang Tialong, member of Chinese think tank Center for International Economic Exchanges in which he went on to blatantly say that "The U.S. may be on its way to default on its debt despite the U.S. government’s ability to print more money, a Chinese think tank researcher said Monday." Now this is nothing new in the escalating war of words between the two countries, although increasingly China appears to be attacking the primary loophole that defenders of the unsustainable US debt use, namely the fall back to the USD as a reserve currency. Wang went on further to implicitly accuse the US of fabricating economic data: "There is also no way to punish the issuer country if it falsifies its accounting and there is no way to restructure the issuer either, Wang said." Well, when China accuses the US of "falsifying accounting" you know you have hit rock bottom.

From Dow Jones:

The U.S. may be on its way to default on its debt despite the U.S. government’s ability to print more money, a Chinese think tank researcher said Monday.

There is no guarantee for sovereign debt, which increases the risks the lenders face, said Wang Tianlong, a researcher at the China Center for International Economic Exchanges, a think tank supervised by the country’s economic planner, adding that the issuer could be more careless in using the loans. 

In the short term, the U.S. doesn’t have much ability to reduce its deficit, Wang said in an opinion piece published in Securities Times. He added that the U.S. lacks the political system to guarantee that it will not default on its debt.

There is also no way to punish the issuer country if it falsifies its accounting and there is no way to restructure the issuer either, Wang said.

Wang’s comments come after the U.S. Vice President Joe Biden said Sunday the U.S. "never will default" on its government debt and reassured Beijing that Chinese investments in the U.S. are safe.

Slowly, surely, China…
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Guest Post: Weekly Kumo Break Suggests Long Term Structure Changing

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Chris Capre of Second Skies

Weekly Kumo Break Suggests Long Term Structure Changing

For those of you who are familiar with the Ichimoku Kinko Hyo (One Glance Balanced Cloud Chart), one of its strengths is in communicating when major long term trends are beginning and ending.  This can either be done through the TKx signal (Tenkan-Kijun Cross) or a Kumo Break (cloud break).  Based on our Ichimoku analysis, we suspect the SPX is headed for much lower ground as an event that has happened only twice in the last 8 years has just occurred, a weekly Kumo Break.

One of the unique aspects of the Ichimoku Kinko Hyo is the ‘Kumo’ which often contains instruments in trending environments.  When broken however (especially on longer time frames), it often signals a major reversal.  How has the SPX related to the Kumo in the past?  Since June of 2003, the SPX has maintained 81.2% of its time above the Kumo and only broken it once back in mid-Jan 2008 (when the market had started its major reversal).  Until now.

Two weeks ago during the panic sell-off in the major indices, the Kumo was broken but the market failed to close below it which is often a trigger.  The last time the market closed below the weekly Kumo (Jan. 18th, 2008), it did not close above it for another 87 weeks.  This prior close back in 2008 marked the beginning of a major bearish move down from the break at 1401.25 to a low of 666.79 (a 737.46pt move). 

Looking at the chart below, last weeks close in the SPX marked the 2nd close below it in the last 8+ years.  To us, this is very suggestive the technical structure (from an Ichimoku perspective) is decidedly bearish considering the rarity or uniqueness of this event and the SPX’s ability to hold above the Kumo for such a long time is no longer there.

What is also interesting to note is the time it took for it to break back below the Kumo after regaining the air above it back in late August 2009.  The fact it had such a long run above the Kumo from June 2003 – Jan 2008, was below it for 1yr and 6mos, then above it for only…
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It’s Not A Free Market, It’s Not A Controlled Market, It’s A Gong Show Market

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

From the latest monthly report by IceCap Asset Management, The Gong Show:

A free market is one in which government intervention and regulation is limited to tax collection, and the enforcement of private ownership and contracts. A controlled market is one in which governments directly regulate how goods, services and labour are priced and sold – the dynamics of economic supply and demand are ignored. Then there is the gong show market. Until recently, this type of market has only been available to 1970s TV game shows. Yet today, this exceptional form of dark comedy has been adopted by our global leaders as an acceptable approach to dealing with the World’s debt crisis. Unfortunately for every human being that fully grasps the enormity of the financial problems facing the World today, the reason for their dissatisfaction with the response from our global leaders is simply due to them not knowing the rules of the Gong Show. For your convenience, we provide them as follows…

Full report below:

 





Insider Weekends – August 19, 2011

Courtesy of Benzinga.

Welcome to edition sixty three of Insider Weekends. Insider buying decreased with insiders purchasing $130.3 million of their stock last week when compared to $225.6 million in the week prior. Selling on the other hand increased with insiders selling $680.3 million worth of stock compared to $225.6 million in the week prior. The big increase in insider selling was driven by a $445 million sale of Plains All American Pipeline (PAA) by Microsoft co-founder Paul Allen in a secondary offering through his company Vulcan Energy Corporation. Taking out this sale, insider selling was almost flat last week.

Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week went up to 5.2. In other words, insiders sold more than 5 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 1.27. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.

Insider Sell Buy Ratio August 19, 2011

Insider Sell Buy Ratio August 19, 2011

Note: As mentioned in the first post in this series Introduction to Insider Weekends, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.

Notable Insider Buys:

1. Valeant Pharmaceuticals International, Inc. (VRX): $39.66

Shares of this pharmaceutical company were acquired by 2 insiders:

  • Chief Executive Officer J. Michael Pearson acquired 155,642 shares, paying $38.62 per share for a total amount of $6.01 million. Mr. Pearson increased his stake by 2.87% to 5,570,503 shares with this purchase.
  • President & COO Silva Rajiv De acquired 6,180 shares, paying $40.40 per share for a total amount of $249,666. Mr. De increased his stake by 2.62% to 241,758 shares


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Greece Avoids Bank Run By Last Minute Bail Out Of Proton Bank

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Alas, it is not a liquidity problem, it is a solvency problem. After delaying this realization for over two years, Greece, and Europe, are about to understand just how flawed “bailout” strategies that address the symptoms and not the cause, have been since the beginning of 2010. And while the world is engaged with the latest victim of the Bernanke-inspired, food-price inflation political upheaval better known as the Arab Spring, whose final stop is nothing less than Times Square, Greece quietly avoided the failure of smallish Proton bank (there is no FDIC backstop of failed banks in Greece), which would have resulted in a market wide panic, and a terminal bank run that would have toppled the Greek financial sector. Luckily, this was prevented in the last second courtesy of a capital injection in the last minute by the big 4 Greek banks. From the FT: “Greece’s four largest banks agreed to take up a €50m convertible bond to help recapitalise Proton Bank, a small lender, the central bank announced this weekend, in what is being seen as an attempt to avert a run on the country’s fragile banking system…“In this environment, it was essential to prevent Proton from collapsing and creating a mood of fear with unpredictable consequences,” said one banker, explaining the rationale for the take-up of the Proton bond.” In summary, Greece was lucky… this time around, they had enough cash to save the smallish lender. The next time around they will not be so lucky.

Greek banks no longer have sufficient high-quality collateral to seek funding from the European Central Bank after recent sovereign downgrades. But they are eligible for liquidity allocated by the Bank of Greece in agreement with the Frankfurt-based ECB and are expected to seek it this week.

 

All four big lenders – National Bank of Greece, Alpha Bank, EFG Eurobank and Piraeus Bank – face a looming liquidity crunch as about €10bn of government deposits are set to be withdrawn from local banks to pay off debt maturing in the next few weeks.

 

“In this environment, it was essential to prevent Proton from collapsing and creating a mood of fear with unpredictable consequences,” said one banker, explaining the rationale for the take-up of the Proton bond.

 


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Will The Cavalry Ride To The Rescue Again?: ETF Bulletin

Courtesy of John Nyaradi

 

As the Federal Reserve gathers in Jackson Hole, Wyoming, for its conclave this week, investors around the world are hoping (maybe praying) for Dr. Bernanke and his colleagues to, once again, ride to the rescue of global stock markets.

We’ll discuss possible outcomes, but whatever happens, it’s going to be exciting.

On My Wall Street Radar

This week’s volatility brought back memories of the not so good “good old days” of 2008 as markets struggled with dismal economic reports and the increasing likelihood of a double dip recession.

This week, stock market bulls will have to make a “last stand” from a technical point of view.

S&P 500 (SPY)

Chart courtesy of www.stockcharts.com

In the chart of the S&P 500 above, it’s easy to see the volatility and significant “waterfall” decline that has taken place.

However, it’s also important to note that support at the 1120 level held this week, in spite of the steady flood of negative economic reports. Nevertheless we remain firmly below the 50 and 200 Day Moving Averages and the “death cross” pattern we discussed last week still remains in play.

S&P 500 (SPY)

Chart courtesy of www.stockcharts.com
The S&P 500 chart above shows the point and figure bullish support line just below current levels and a sustained break below this level would indicate a new bear market based on point and figure methodology.
These major trend lines tend to act as “walls” and a break below current levels would be signficant.
The Economic View from 35,000 Feet

The economic view remains dark and threatening as this week’s readings brought no let up to the steady stream of negative data. The Empire State Index came in at -7.7, down from -3.7 previously and widely missing the +1.5 expected reading.

More shocking yet was the Philadelphia Federal Reserve report which plunged to -30.7 from +3.2 last month which is the lowest reading in this index since March, 2009, at the bottom of the “last recession.”

This is a most troubling number as readings below -20 in this index have always preceded or been accompanied by recession.

Treasury yields responded to the stock market volatility as bonds rose and yields declined to less than 2%, their lowest since the 1950s, while consumer prices continued their climb. So with rising inflation and falling bond yields, the 10 year Treasury is now…
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Phil's Favorites

Trump and the problem with pardons

 

Trump and the problem with pardons

Courtesy of Andrew Bell, Indiana University

As a veteran, I was astonished by the recent news that President Trump may be considering pardons for U.S. military members accused or convicted of war crimes. But as a scholar who studies the U.S. military and combat ethics, I understand even more clearly the harmful long-term impact such pardons can have on the military.

My researc...



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Zero Hedge

Silver Specs Signal It's Time To Start Buying

Courtesy of ZeroHedge. View original post here.

Authored by John Rubino via DollarCollapse.com,

The gold futures market took a big step towards bullish — or at least neutral — in the past week. Speculators (usually wrong at big turning points) scaled back their long bets while commercials (usually right at turning points) reduced their net short positions.

...



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Insider Scoop

Jefferies Sees 60-Percent Upside In Aphria Shares, Says Buy The Dip

Courtesy of Benzinga.

After a red-hot start to 2019, Canadian cannabis producer Aphria Inc (NYSE: APHA) has run out of steam, tumbling more than 31 percent in the past three months.

Despite the recent weakness, one Wall Street analyst said Friday that the stock has 30-percent upside potential. 

The Analyst

Jefferies analyst ...



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Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...



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Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!


Alistair Williams Comedian youtube

This is a classic! ha!







Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of Gann Angles, ...

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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:

 

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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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