Posts Tagged ‘TARP extended’

TARP Extended, Now a “Petty Cash Drawer for Politically Favored Interests

TARP Extended, Now a "Petty Cash Drawer for Politically Favored Interests"

Courtesy of Mish

Drunken fools and slush funds have one thing in common. No one ever acts to cut them off. Thus, it should be no surprise Treasury Extends TARP.

Facing opposition from Republican lawmakers, the Obama administration is extending its $700 billion financial-rescue program until next October, as expected, Treasury Secretary Timothy Geithner said Wednesday.

The Troubled Asset Relief Program, which has been a lightning rod for criticism that the government aided Wall Street while ignoring Main Street, had been set to expire Dec. 31. As of Dec. 9, the Treasury had roughly $309.5 billion in TARP funds available for new commitments and programs.

Some funds may be used to increase Treasury’s contribution to the Term Asset-Backed Securities Loan Facility. Based on the statute that created TARP, the Obama administration would need Congress to approve any further extension of the use of TARP funds.

Mish: Approval?

Since when does the Treasury or the Fed ask for approval?

President Obama said Wednesday the extension is really a "winding down" with a changed focus on troubled homeowners, small banks and small businesses.

Mish: It’s an extension, we just don’t want to call it that.

Obama added that the TARP program has served its original purpose of stemming the financial crisis, cost less than expected, and given government officials a chance to reduce the deficit faster.

GOP lawmakers have sought to block the extension, arguing that that the White House’s plans to use TARP to fund more government spending violates the intent of the law and adds to America’s debt burden.

"TARP was supposed to be a temporary plan to restore the health of the credit markets and protect the economy from a ‘doomsday’ scenario," said Rep. Spencer Bachus, R-Ala., the ranking member on the House Financial Services Committee. "Instead, the Obama administration is turning TARP into a permanent bailout agency and petty cash drawer for politically favored interests."

Mish: The original purpose was met so we are going to use the money for a slush fund instead. Does the law allow that? Excuse me, I almost forgot ….

Approval?

Since when does the Treasury or the Fed ask for approval?

According to Geithner’s letter to Congress, Treasury does not expect to deploy more than $550 billion of the funds.


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Phil's Favorites

Rogue science strikes again: The case of the first gene-edited babies

 

Rogue science strikes again: The case of the first gene-edited babies

Chinese scientists led by He Jiankui claimed they used CRISPR to modify human embryos that eventually were born as twin girls. AP Photo/Mark Schiefelbein

Courtesy of G. Owen Schaefer, National University of Singapore

The idea of scientists tinkering with the genes of babies was once the provenance of science fiction, but now it’s apparently entered the realm of reality: On Nov. 26, Chinese scientist He Jiankui reported the historic live births of ...



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Zero Hedge

Are Grisly Warning Labels Coming To US Cigarettes?

Courtesy of ZeroHedge View original post here.

Soon US smokers could see the shocking visual warning labels on cigarette packets that Americans have come to identify with Europe. US health officials are making a new push to require graphic images to be placed on every cigarette pack by law across the US to discourage smoking, as the current mere textual warning hasn't changed since 1984. The Associated Press reported this week:

The Food and Drug Administration on Thursday proposed 13 new warnings that would appear on all cigarettes, including images of ...



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The Technical Traders

Negative Yields Tell A Story Of Shifting Economic Leadership

Courtesy of Technical Traders

Negative yields are becoming common for many of the world’s most mature economies.  The process of extending negative yields within these economies suggests that safety is more important than returns and that central banks realize that growth and increases in GDP are more important than positive returns on capital.  In the current economic environment, this suggests that global capital investors are seeking out alternative solutions to adequately develop longer-term opportunities and to develop native growth prospects that don’t currently exist.

Our research team has been researching this phenomenon and how it relates to the continued “capital shift&rdq...



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Insider Scoop

Heavy Volume Drives Low-Float Stock Plus Therapeutics Up 200%

Courtesy of Benzinga

Plus Therapeutics Inc (NASDAQ: PSTV) is the latest and one of the most extreme recent examples of the powerful combination of low float and heavy trading volume.

Plus shares traded higher by more than 215% on Friday. The biotech stock more than tripled after the company reported ...



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Lee's Free Thinking

Long Term Stock Market Chart Perspective

Courtesy of Lee Adler

After a big day like yesterday, I like to get a little long term stock market chart perspective. (Yes, this stilted verbiage is for search engine optimization ).

We do that with a monthly bar chart, which I update when relevant in Lee Adler’s Technical Trader. That’s in addition to the regular daily bar/cycle charts covering the past year, and a weekly cycle chart covering the past 4 years.

I wrote on July 14, in reference to the price and indicator patterns on the weekly chart:

The market has overshot a 3-4 year cycle projection in terms of both price and time. There are no long term projections. A 4 year cycle high is ideally due now. A 4 ye...



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Kimble Charting Solutions

S&P About To Decline 14%, Catching Up With The Crude Oil Declines?

Courtesy of Chris Kimble

This chart looks at the performance of the S&P 500, Crude Oil and the Yield on the 10-Year note over the past 4-months.

Crude Oil has declined around 14% more than the S&P during this time frame. Yields have declined, even more, around 36%. The is a huge spread between these assets over this short of a time period.

A few importa...



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Chart School

Bitcoin 2019 fractal with Gold 2013

Courtesy of Read the Ticker

Funny how price action patterns repeat, double tops, head and shoulders. These are simply market fractals of supply and demand.

More from RTT Tv

Ref: US Crypto Holders Only Have a Few Days to Reply to the IRS 6173 Letter

Today's news from the US IRS has been blamed for the recent price slump, yet the bitcoin fractal like the gold fractal suggest the market players have set bitcoin up for a slump to $9000 USD long before the IRS news hit the wire.

Get the impression some market players missed out on the b...

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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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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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Promotions

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In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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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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