Archive for the ‘Permissions’ Category

Bombshell Report: The Fed Has Not Rejected One Bank Merger Application Out of 3800 Submitted in Past 11 Years

Courtesy of Pam Martens

Fed Chairman Jerome Powell

Federal Reserve Chairman Jerome Powell 

In advance of its December 4 hearing to question if federal bank regulators are adequately watching over the nation’s banks, the House Financial Services Committee issued a Memorandum on some of the key concerns. Buried on page three of the Memorandum was this bombshell:

“Concerns have been raised about federal financial regulators rubber stamping prior merger and acquisition applications. For example, based on data provided by the Federal Reserve, from January 1, 2006 through December 31, 2017, over 3,800 merger applications were submitted to the agency. During this eleven-year period, however, the Federal Reserve did not reject any merger application. On November 20, the Federal Reserve and FDIC granted approval of the merger between BB&T and SunTrust, creating the sixth-largest bank in the United States.”

What is not mentioned in that paragraph is that during that 11-year period, the biggest banks in the U.S. blew up the U.S. economy with subprime debt and reckless derivative bets and proved beyond question that big is not better when it comes to banking. The United States continues to suffer from its disastrous experiment in merging Wall Street trading casinos with Federally-insured banks via subpar economic growth since the financial crisis of 2008. The Atlanta Fed’s very reliable GDPNow is predicting just 1.5 percent GDP growth in the fourth quarter of 2019.

By failing to reject any of these merger applications in more than a decade, the Federal Reserve has aided and abetted the too-big-to-fail banking model which threatens the financial stability of the U.S. By simultaneously being allowed by Congress to incompetently supervise these merged banking behemoths, the Federal Reserve poses a double threat to the safety and soundness of banking in the United States. And by also being allowed to electronically print money out of thin air to the tune of trillions of dollars to bail out these same banking monsters, the Fed has effectively seized control of the nation’s economic future, opting to mint billionaires at hedge funds and Wall Street banks while forcing the working class to go deeper into debt to survive and allowing the bridges, tunnels and roads of the country to go to hell in a…
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Gold Miners Indicator Attempting Multi-Year Breakout, Says Joe Friday

Courtesy of Chris Kimble

Are Gold Mining stocks about to be sent a bullish signal they haven’t received in years? Possible says Joe Friday.

This chart looks at the Senior Miner/Junior miner (GDXJ/GDX) ratio over the past few years. Historically when the ratio is heading up, miners tend to do very well.

The ratio has created a series of lower highs just below the falling line (1), since the summer of 2016. The ratio is currently testing the strong falling resistance line and the June 2019 highs at (2).

Joe Friday Just The Facts Ma’am; If the ratio succeeds in a double breakout at (2), it sends miners a long-awaited bullish message.

To become a member of Kimble Charting Solutions, click here.





450-Point Friday – Dow Erases Half of its Losses – Traders Think that’s Bullish

Isn't that amazing!

What a fantastic market that can drop 900 points in 2 days and then RALLY back 450 points in 3 days.  It's AMAZING!  That's what it seems like if you listen to the Financial Press and I bet that, before I just pointed it out – you were thinking this was a strong weak for the market.  Well, it isn't.  In fact, we're pretty much where we were on November 1st (27,350) so it hasn't been a strong 5 weeks as we close week 1 of December.

We have a strong Non-Farm Payroll Report this morning at 266,000 jobs added and that's giving us a bit more lift at 8:30 and the last two reports have been revised up 42,000 jobs which is a big boost for the Dollar and an initial boost for the indexes until it occurs to someone that job numbers this strong means there's no way in Hell the Fed will lower rates next Wednesday – they should be raising them! 

There's a bit of noise in the report as 50,000 GM workers returned to work and are included in the numbers that bumped up October and November data revisions.  Overall, we're adding about 170,000 jobs a month this year – about the same pace as Obama had over his 8 years – except Obama came in when there were still huge losses but, either way, simply on our normal track with wages rising at an annualized 3.1%.  

There's also a huge bump from Census Workers and, unfortunately for Trump, he won't be able to keep them and that means we're going to see some very harsh unemployment numbers that will be as unfair to look at then as the positive numbers are now – keep that in mind in both directions…

Also note that 3.1% increases in labor costs are ahead of the sub 2% official inflation rate and that puts the squeeze on Corporate Margins and, as labor gets tighter, wages tend to go even higher.  That's why Trump is trying to force 1M people off food stamps and back to work – his Top 1% buddies need to put supply back into
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4 Dead After Two Robbers Hijack UPS Van, Ending In Epic Gun Battle On Florida Highway 

Courtesy of ZeroHedge View original post here.

Four people have been confirmed dead after a UPS truck was hijacked by two suspects following a robbery attempt of a jewelry store on South Florida's Miracle Mile Thursday, reported CBS Miami.

The suspects led police on a two-county rush-hour chase through Miami and ended in a hail of gunfire on Miramar Parkway and Flamingo Road in Miramar.

The incident began around 4 pm Thursday in Miami-Dade County, where two people attempted to rob a jewelry store on the Miracle Mile.

The suspects exchanged gunfire with the owner of the jewelry store, reported Coral Gables Police Chief Ed Hudak Jr.

The suspects then hijacked a UPS truck, abducting its driver, Hudak said.

Hudak said the chase went on for about 20 minutes during rush hour in Miami.

Chopper 4 captured the video of the chase. There was even video that went viral on social media showing at least 20 officers, some with assault rifles, engaging in an epic gun battle with suspects on Miramar Parkway and Flamingo Road.

"The armed suspects engaged law enforcement, opened fire, exchanged fire between law enforcement and the suspects," said George Piro, Special Agent in Charge of the Miami Field Office. "Unfortunately, the suspects are now deceased, but also two additional innocent civilians deceased."

Piro said the dead include both suspects, the UPS driver, and an innocent bystander killed in the car.

UPS said it was "deeply saddened to learn a UPS service provider was a victim of this senseless act of violence."





Futures Near Record High On Burst Of “Trade Deal Optimism”

Courtesy of ZeroHedge View original post here.

With the much anticipated November jobs report looming (see preview here), futures are back to trading just shy of all time highs, enjoying a burst of trade deal optimism when first President Trump said China trade deal talks were "moving right along", and then, at 1am ET, China announced it would waive import tariffs imposed last year on some U.S. soybean and pork shipments… which of course is hardly a concession as Beijing is rushing to source more meat to fill a record hole in its pork inventory and production.

Trump’s upbeat comments on Thursday and China's fake concession was enough to encourage algos to BTFATH, despite once again there being no agreement over whether existing tariffs should be dropped as part of an initial deal to ease the long standoff. European shares, including the broader Stoxx 600 gained 0.5% in early trade before grinding sideways, with indexes in Frankfurt and Paris up by similar amounts. The UK's FTSE 100 outperformed, gaining 0.75% as GBP slips back below 1.3150. Retailers, travel names and miners outperform with only the health care sector in negative territory

Europe's Friday euphoria promptly ignored the latest disastrous German industrial output, which unexpectedly plunged in October, pointing to persistent weakness in the backbone of the economy. Berlin said, however, that new orders and business expectations suggest output may stabilize.

The buoyant mood to end the week – at least until today's NFP print is announced – mirrored the risk appetite in Asia, where MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5%, with Asian stocks rising for a second day, led by technology companies, as China worked toward waiving retaliatory tariffs on imports of U.S. pork and soy. Most markets in the region were up, with Hong Kong and South Korea leading gains. The MSCI Asia Pacific Index is set for its first weekly advance in a month. The Topix edged higher, supported by machinery and construction firms. Japanese household spending dropped the most in three and a half years.

China stocks posted their biggest weekly advance in


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Six-Story Building Collapses In Nairobi; 2 Killed, Dozens Trapped

Courtesy of ZeroHedge View original post here.

This is not a good look for "Africa's Rising Star."

A six-story building in Nairobi, the Kenyan capital, collapsed on Friday, killing at least two people and trapping an unknown number – possibly dozens – of others in the pancaked debris.

Sadly, building collapses are relatively common in Nairobi, where explosive population growth has incentivized developers to cut corners on regulation. But a six story building mostly rented by families (22 reportedly lived in the building) still ranks as a major preventable disaster.

According to Nairobi county police chief Philip Ndolo, at least 10 people have been rescued by neighbors digging through the rubble with their bare hands. Eight victims have been taken to a hospital, and more wounded are expected, according to Bloomberg.

"Tragedy has struck us again," public works official Gordon Kihalangwa said. "Some people have been trapped inside and we are doing our best to free them."

Whatever caused the collapse wasn't immediately clear. But as the morning dragged on, hundreds of people gathered to watch from nearby buildings as emergency responders took their first tepid steps into the rubble. Many feared disturbing what was left of the structure, for fear that it could collapse, even as heavy excavation equipment arrived at the site.

Every now and again, workers would find a body, or a survivor, and a gurney would be called in. Medical personnel set up a temporary station at a series of stalls nearby.

After a series of deadly building collapses killed more than 15 people in Nairobi in 2015, Kenyan President Uhuru Kenyatta ordered an audit of all the country’s buildings to see if they were up to code. During the audit, the National Construction Authority found that 58% of the buildings in Nairobi were unfit for habitation.

That doesn't bode well for a city that is supposedly gentrifying quickly.

In other news, the governor of Nairobi was arrested on Friday shortly after Kenya's chief prosecutor ordered that he be detained on charges of economic crimes. Nairobi Gov. Mike Sonko is just the latest official to be hauled in on corruption charges in a country where


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Why The Stock Bull Is A Big Meh For Most Americans

Courtesy of ZeroHedge View original post here.

Via Global Macro Monitor,

Interesting piece by the FT today that only one-third of Americans feel the benefits of the great bull market.   Only 40 percent of the population realizes stocks are up for the year.  These are tough numbers for a so-called “populist” president who claims the stock market bull as one of his greatest achievements and much of his base is not participating in the gains.

Nearly two-thirds of Americans say this year’s record-setting Wall Street rally has had little or no impact on their personal finances, calling into question whether one of the strongest bull markets in a decade will boost Donald Trump’s re-election chances.

A poll of likely voters for the Financial Times and the Peter G Peterson Foundation found 61 percent of Americans said stock market movements had little or no effect on their financial wellbeing. Thirty-nine percent said stock market performance had a “very strong” or “somewhat strong” impact. 

The survey suggested most Americans are not aware of market movements, with just 40 percent of respondents correctly saying the stock market had increased in value in 2019. Forty-two percent of likely voters said the market was at “about the same” levels as at the start of the year, while 18 percent believed it had decreased.- FT

Say It Ain’t So, Joe.  How Can This Be So?

The above survey closely tracks the Fed’s data on the distribution of stock ownership by wealth percentiles.  Rarely does the economic data so closely confirm such a survey study.

The data show that 86.4 percent of all equities are held by the top 10 percent of households as of the end of June 2019.  Even with a very generous assumption that 60 percent of pension entitlements are allocated to equities, the numbers just don’t change much.

Most of the difference, when including our generous assumption on pension assets,  is allocated to the upper-middle class, who fall in the 50-90 percentile of households, where one-third of the assets of this cohort group are in the form of pension entitlements.


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Philstockworld November Portfolio Review

Image result for one million dollars animated gif$152,053! 

That's right, after closing our our last STP/LTP paired portfolios in September, 2019 with over $2.6M from a $600,000 start in Jan 2018, we decided to put $100,000 back to work in a new Short-Term Portfolio on October 1st.  We haven't started a new Long-Term Portfolio yet, but our STP is already up 52% in just 2 months and, if we average 26% a month for 24 moths – that's $25,638,527 (compounded) so I'm not at all worried that we won't make enough money if we don't deploy our other $500,000 re-starting cash to the LTP right away as 26% a month is not likely to keep going but, if it does – than $100,000 is all we'll need to be very happy!  

52% in two months is a silly amount of money to make and we have to keep that in perspective because we could have just as easily have lost 52% so I'm only comfortable with the relatively small risk in the closely-watched STP – where we can take advantage of long and short positions over varied time-frames.  

We still have our Butterfly Portfolio and our Hemp Boca Portfolio from 2018 and 2019 respectively but Money Talk, Dividends, Earnings are also new portfolios – all started with $100,000 of virtual cash in October and November.  

As it's early in the cycle, I don't have a lot to say so we're just consolidating our first round of Portfolio Reviews here:

Short-Term Portfolio Review (STP):  Doing way better than planned but mostly due to BKNG working out perfectly (even a broken clock….) but also as there is only MJ on the losing side and not too much damage there.  While the Portfolios are small, it's a good time to practice the expectations game.  

Overall, I'm worried we turn down next week on low volume but, then again, they aren't done beating the dead horse of "China Progress" so this drift may go on for another month – into the year's end.  Keep in mind I didn't WANT to have money back in play – it was just so boring to not play….


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UAE Private Sector Tanks To 10-Year Low Amid Recession Fears   

Courtesy of ZeroHedge View original post here.

The second-largest economy in the Middle East, the United Arab Emirates (UAE), has just recorded business activity at a decade low, reported Reuters.

IHS Markit UAE Purchasing Managers' Index (PMI) printed at 50.3 in Nov. from 51.1 in Oct., hitting the lowest level since Aug. 2009 and on the threshold of declaring a contraction in growth.

Last year, the manufacturing and services sectors (pretty much covering UAE's non-oil sector) recorded growth of 55.8 but had slid to almost contraction territory by late 2019.

New orders plunged into contraction (48.9) in Nov. from 51 in Oct., which has resulted in companies discounting prices to attract new business as the economic slump continued to intensify.

"Anecdotal evidence commonly linked the decline to subdued market conditions and weaker customer demand," said David Owen, an economist at IHS Markit.

An employment downturn was also initiated in 2019. Job levels dropped in Nov., indicating that last month was one of the fastest decline in the workforce for non-oil companies in nearly a year.

Despite UAE's four years of economic deceleration since oil collapsed in 2014, the country is finally experiencing weakness spreading from its oil sector into the broader economy.

The country's deteriorating property sector risks the quality of assets held by domestic banks could create banking difficulties in the early 2020s.

"Weaker asset quality will also put pressure on profitability," said Redmond Ramsdale, Fitch's head of Middle East bank ratings, who reently spoke with the Financial Times.

With the UAE economy and domestic banks still not fully recovered from the 2008 crisis, the economy is once again rapidly decelerating with financial turbulence likely seen in the next 12 to 18 months.

And just a reminder, UAE banks hold tens of billions of dollars in loans to Dubai government-related entities, with a maturity wall in 2021.

Dubai is currently going through a housing market downturn that has the risk of spreading contagion fears across the continent.

 

 





Dismal 2019 Numbers Show Why Illinois Pensions Will Continue To Fail

Courtesy of ZeroHedge View original post here.

Authored by Ted Dabrowski and John Klingner via Wirepoints.org,

The Commission on Government Forecasting and Accountability’s special pension report released this week shows yet again how strong markets and ever-more taxpayer funds can’t fix the flaws in the state’s politician-run pension system.

Illinois’ pension shortfall grew to a record $137 billion in 2019, up from $134 billion the year before. That increase continues a near unabated increase in pension liabilities since 2000, when the state’s shortfall was just $16 billion. Given Illinois politicians have shown no appetite to amend the constitution to reform pensions, the shortfall is likely to continue its upward trend.

A lack of reform has taken a real toll on taxpayers and the ability of the state to meet its obligations to teachers, state workers, university employees, judges and lawmakers. The state’s accrued liabilities – the sum of the state’s yet-to-be-paid obligations to pensioners and active workers – has grown so quickly that they have overwhelmed the state’s finances.

That stress becomes quickly evident when those total pension obligations are compared to the state’s available tax revenues over time. Wirepoints covered that in our report Illinois state pensions: Overpromised, not underfunded.

In 1987, obligations to members of the five state-run pension funds was $18 billion, or 1.6 times more than the state’s then-general fund budget of $11 billion.

Today, the state’s obligations total $229 billion, or 5.7 times the state’s budget of $40 billion.

That growth in pension obligations has dwarfed the ability of state taxpayers to fund them. 

The lack of reform has also forced Illinoisans to contribute a record $10.1 billion in 2019 to pay for state pensions and the debt service on pension obligation bonds. Retirement costs now consume more than a quarter of the budget. No other state in the nation spends that much of their budget on pensions.

In contrast, Illinois taxpayers in 2009 paid just $3.2 billion toward pensions, or 10 percent of the budget. 

Taxpayer contributions to pay for pensions have grown by about 13 percent annually


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Phil's Favorites

American influence could take the hit as Putin, Zelenskiy try to make peace in Donbass

 

American influence could take the hit as Putin, Zelenskiy try to make peace in Donbass

Zelenskiy is facing a tough meeting with Russia’s Putin on Dec. 9. Ukrainian Presidential Press Office via AP

Courtesy of Erik C. Nisbet, The Ohio State University and Olga Kamenchuk, The Ohio State University

President Vladimir Putin of Russia and his Ukrainian counterpart, Volodymyr Zelenskiy, are set ...



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Kimble Charting Solutions

Gold Miners Indicator Attempting Multi-Year Breakout, Says Joe Friday

Courtesy of Chris Kimble

Are Gold Mining stocks about to be sent a bullish signal they haven’t received in years? Possible says Joe Friday.

This chart looks at the Senior Miner/Junior miner (GDXJ/GDX) ratio over the past few years. Historically when the ratio is heading up, miners tend to do very well.

The ratio has created a series of lower highs just below the falling line (1), since the summer of 2016. The ratio is currently testing the strong falling resistance line and the June 2019 highs at (2).

Joe Friday Just The Facts Ma’am; If the ratio succeeds in a double breakout at (2), it sends miners a long-awaited bullish message.

...

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Zero Hedge

4 Dead After Two Robbers Hijack UPS Van, Ending In Epic Gun Battle On Florida Highway 

Courtesy of ZeroHedge View original post here.

Four people have been confirmed dead after a UPS truck was hijacked by two suspects following a robbery attempt of a jewelry store on South Florida's Miracle Mile Thursday, reported CBS Miami.

The suspects led police on a two-county rush-hour chase through Miami and ended in a hail of gunfire on Miramar Parkway and Flamingo Road in Miramar.

The incident began around 4 pm Thursday in Miami-Dade County, where two people attempted to rob a jewelry store on the Miracle Mile.

The suspects exchanged gu...



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Insider Scoop

7 Healthcare Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Sierra Oncology, Inc. (NASDAQ: SRRA) shares increased by 43.3% to $0.55 during Friday's pre-market session. The market cap stands at $23.1 million. The most recent rating by Oppenheimer, on December 06, is at Outperform, with a price target of $1.20.
  • Cassava Sciences, Inc. (NASDAQ: SAVA) stock moved upwards by 40.6% to $2.53. The market value of their outstanding shares is at $20.6 million.
  • Puma Biotechnology, Inc. (NASDAQ: PBYI) stock increased by 5.9% to...


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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 

Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices.

The cycle below shows prices are ready to move in the months ahead (older chart re posted).


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Digital Currencies

Chinese Crypto Exchange IDAX Locks Cold Wallet As CEO "Goes Missing"

Courtesy of ZeroHedge

By William Suberg via CoinTelegraph.com

Chinese cryptocurrency exchange IDAX has suspended deposits and withdrawals after its CEO allegedly disappeared.

In a blog post on Nov. 29, IDAX, which earlier this week warned it was seeing a run on withdrawals, said the whereabouts of Lei Guorong were currently unkno...



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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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