Posts Tagged ‘MONEY MACHINE’

Once More For Emphasis: SOMEONE INVENTED A MONEY MACHINE

Once More For Emphasis: SOMEONE INVENTED A MONEY MACHINE

Courtesy of Joshua M Brown, The Reformed Broker 

I don’t know what it takes to get people’s attention these days.  Peel your eyes away from the latest episode of Glee and drop the spork you’re using to shovel artificial mashed potatoes into your face for just one moment.

Is everyone following?  OK, read this, please:

The founder of Tradebot, in Kansas City, Mo., told students in 2008 that his firm typically held stocks for 11 seconds. Tradebot, one of the biggest high-frequency traders around, had not had a losing day in four years, he said.

That gem appeared in a New York Times article about high frequency trading.  The article came out on May 16th and no one is talking about it.  Nobody seems to think that the invention of a machine that has made its owner a profit EVERY SINGLE TRADING DAY FOR FOUR YEARS is such a big deal.

Have you all Green Mountain Coffee’d yourselves into a zombie trance?  Well?

An automatic money machine.  Seriously.  Plug it in, maintain the gears and software and voila!  Money.

There isn’t any stock research or economic musing going on.  According to the article, the automatic money machine’s operators don’t even know what the stocks are that it’s trading.  Again – the machine almost can’t lose money because it’s holding stocks for an average of 11 seconds.…
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Treasury to Resume the Monetization of the Fed’s Balance Sheet to Support the Wall Street Banks

Treasury to Resume the Monetization of the Fed’s Balance Sheet to Support the Wall Street Banks

Courtesy of JESSE’S CAFÉ AMÉRICAIN

This Treasury Supplemental Financing Program is designed to provide public funds for the Fed’s efforts to purchase and then liquidate toxic assets and derivatives from the financial sector, effectively absorbing their losses and monetizing them.

The Treasury creates new notes and sells them on the open market. The money obtained in these sales is deposited at an account at the Federal Reserve. The Federal Reserve uses this money to purchase toxic assets from the banks at its own discretion and pricing, subject to little oversight and market discipline.

Senator Chris Dodd said "the Fed could become an ‘effective Resolution Trust Corporation,’ purchasing and ultimately disposing of depreciated assets.

It looks very much like a stealth bailout. It is even more of a scandal because of the Fed’s resistance to any disclosures on the principles and specifics by which they are allocating taxpayer money.

Where this gets even more interesting is that the Fed in turn is buying Treasury debt after issuance through its primary dealers, debt that was issued by the Treasury to provide funds to the Fed.

Even more than a stealth bailout, this is starting to smell like ‘a money machine.’ Money machines are what Bernanke euphemistically called ‘a printing press.’ What is odious about this particular printing press is that the output is being given directly to a few big banks by a private organization which they own.

I believe that it is still illegal, by the letter of the statutes, for the Fed to directly purchase Treasury paper. But in this case, the Fed is buying Treasury paper with money supplied by the Treasury. Since the paper is passing through the marketplace, and the Primary Dealers are taking their commissions, it may be in conformance with the letter of the law. But it looks like it violates the spirit of the law.

And given that in many cases the Primary Dealers are the principal beneficiaries of the subsidy programs, selling their toxic debt to the Fed at non-market prices, this starts to appear like a right proper daisy chain of self-dealing and fraud.

As you can see from the background information below, this is a ‘temporary’ program from 2008 that the Treasury keeps promising to ‘wind down.’

This is not a resolution trust by…
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Phil's Favorites

Momentum Monday - Growth Stocks Have COVID and Ivanhoff Lived

 

Momentum Monday – Growth Stocks Have COVID and Ivanhoff Lived

Courtesy of Howard Lindzon

Happy ‘markets closed’ Monday as we pay respects to Martin Luther King Jr.

Last week Ivanhoff had COVID, but the young scrappy man beat it.

We cannot say the same things about growth stocks which continue to struggle from the financial cocktail aftermath of it.

Here is this week’s episode of Momentum Monday. You can watch/listen right here or I have embedded it on my blog below:

Here a I...



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ValueWalk

Trillium Gold Mines (TSXV:TGM): How This Gold Company Might Hedge your Inflation Risk

By Adam Torkildson. Originally published at ValueWalk.

Investors are concerned about inflation and justifiably so. Consumer prices spiked in 2021 to levels not seen in decades in the U.S. and Canada; in fact, for most global economies, 2021 marked a sharp break from what has been an unusually long period of low-to-moderate inflation. Are we headed for a repeat of the 1970s when inflation reached double digits? If your investment does not generate sufficient returns to beat inflation, one thing is certain – inflation can erode the value of your portfolio, even if you maintain positive returns year-over-year. Many younger investors have never faced this invisible drain on their purchasing power.

Historically, gold as an asset class has proved its worth time and time again as an effective hedge against inflation and econ...



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Politics

What Supreme Court's block of vaccine mandate for large businesses will mean for public health: 4 questions answered

 

What Supreme Court’s block of vaccine mandate for large businesses will mean for public health: 4 questions answered

New York City’s vaccine mandates are unaffected by the court ruling. AP Photo/Mary Altaffer

Courtesy of Debbie Kaminer, Baruch College, CUNY

The U.S. Supreme Court on Jan. 13, 2022, blocke...



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Zero Hedge

Ghislaine Maxwell Will No Longer Fight To Keep Epstein 'John Does' Secret; Suspected Of 'Intimate Relationship' With Prince Andrew

Courtesy of ZeroHedge View original post here.

Convicted sex offender and UK socialite Ghislaine Maxwell will no longer appose keeping "vast swaths of information" about her "sex trafficking operation" with Jeffrey Epstein sealed, after accuser Virginia Roberts Giuffre requested they be made public, according to the Daily Mail.

One of Maxwell's lawyer stated in a letter to federal judge Loretta Preska last week that the defense team will no l...



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Chart School

US Dollar Short Term Cycle Peak Near - Update

Courtesy of Read the Ticker

The short term US Dollar cycle peak is upon us, it is time for capital flows to rule the direction of the DXY.



Previous Post: US Dollar Short Term Cycle Peak Near



Capital flows and interest rate differentials move currency around.



If capital flows take over, then they DXY is going into the 80's at least. Of course hiking rates 4 times is easier on the world when the DXY is near 80 rather than 95. A lot if US debt held by emerging markets is at risk otherwise. And yes a lower US dollar in early 2022 helps China out, as it suppo...



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Biotech/COVID-19

What Supreme Court's block of vaccine mandate for large businesses will mean for public health: 4 questions answered

 

What Supreme Court’s block of vaccine mandate for large businesses will mean for public health: 4 questions answered

New York City’s vaccine mandates are unaffected by the court ruling. AP Photo/Mary Altaffer

Courtesy of Debbie Kaminer, Baruch College, CUNY

The U.S. Supreme Court on Jan. 13, 2022, blocke...



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Digital Currencies

The metaverse is money and crypto is king - why you'll be on a blockchain when you're hopping

 

The metaverse is money and crypto is king – why you’ll be on a blockchain when you’re virtual-world hopping

In the metaverse, your avatar, the clothes it wears and the things it carries belong to you thanks to blockchain. Duncan Rawlinson - Duncan.co/Flickr, CC BY-NC

Courtesy of Rabindra Ratan, Michigan State University and Dar Meshi, Michigan State University ...



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Kimble Charting Solutions

Inflation About To Blast Off or Is The Peak In Play?

Courtesy of Chris Kimble

Current data suggests that inflation has been in our everyday lives for several months. And today’s Producer Price Index data was pretty ugly.

BUT… could inflation be peaking?

Today’s chart 2-pack offers a glimpse of why inflation could subside over the near-term.

Here we look at the “monthly” chart of the US Dollar and Euro currencies. It’s pretty easy to see the rising trend channel for the US Dollar and falling trend channel for the Euro. As well, both currencies have formed a wedge pattern, with the US Dollar testing resistance and the Euro testing support.

Shou...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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





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. Contact Ilene to learn about our affiliate and content sharing programs.