Posts Tagged ‘U.S. Government’

GE: A Really Great Bet On Big Government

GE: A Really Great Bet On Big Government (GE)

Courtesy of Jay Yarow at Clusterstock


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Jim Chanos: Short Big Pharma

Jim Chanos: Short Big Pharma

Courtesy of John Carney at Clusterstock

 


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Uh Oh: China Doesn’t Want To Lend Us Money Anymore

Uh Oh: China Doesn’t Want To Lend Us Money Anymore

Courtesy of Henry Blodget

Graph from the NY Times:

china finances less of the US deficit


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Friday Newsdump: Deficit Projections Upped By $1.9 Trillion

Friday Newsdump: Deficit Projections Upped By $1.9 Trillion

 


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Peter Schiff: Warren Buffett Is Out To Lunch

Peter Schiff: Warren Buffett Is Out To Lunch

Courtesy of Joe Weisenthal at Clusterstock

Euro Pacific Capital chief Peter Schiff showed up on Fox Biz to discuss Warren Buffett’s doom-mongering in the NYT today. Schiff tries to thread the needle, saying that Buffett is right that the dollar will collapse, but wrong to think that the bailouts and stimuli we’ve done so far were necessary.

See Also:

Buffett: US Government Debt Increasing 1% Of GDP Per Month

Buffett: Debt Mountain Could Turn America Into A Banana Republic (BRK)

Peter Schiff Ambushed On MSNBC (VIDEO)

 


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Why Won’t Barney Frank Just Agree To Audit The Fed?

Why Won’t Barney Frank Just Agree To Audit The Fed?

barney frank tbiCourtesy of Moe Tkacik of ClusterStock

We assured Peter that Barney Frank had a long record of supporting Ron Paul’s efforts to impose greater transparency upon the actions of the Fed.

‘In 2007 Barney Frank had in fact given an affectionate interview on the subject of Ron Paul’s quixotic campaign for the presidency to the New York Times magazine in which he said of his relationship with his colleague from Texas:

"We first bonded because we were both conspicuous non-worshipers at the Temple of the Fed and of the High Priest Greenspan.”

But Peter was not satisfied; he was certain conspiracy must be afoot. He began talking about JP Morgan and the Council on Foreign Relations, Skull & Bones and the various other front organizations in addition to the Fed through which some believe a secretive cabal of elites known as the Illuminati govern world affairs. (The Masons, Peter said, may also be involved.)

The conversation echoed another we’d had back in November, when while writing a story about, of all people, Barney Frank, we looked up an old Reagan-era rival of Frank’s by the name of Bill Dannemeyer.

As an Orange County Republican serving in the eighties Dannemeyer had made a name for himself  reading graphic depictions of gay sex from the floor of the House, claiming people with AIDS emitted "spores that cause birth defects" and leading an infuriated crusade to oust Barney Frank over a relationship he’d carried on with a male prostitute.

But by the time we got around to talking to Dannemeyer he had mellowed considerably. He no longer saw Frank as the promulgator of some sort of insidious "gay agenda."

All he asked of Frank as a public citizen was for him to use his chairmanship of the Financial Services Committee to pass a bill demanding a full congressional audit of the Federal Reserve. (Dannemeyer, too, had referenced the Illuminati and the Council on Foreign Relations, JP Morgan and the Rockefellers.)

It would take too much space to explain even the bit we do


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Officials Hint At Higher Taxes For Healthcare

Officials Hint At Higher Taxes For Healthcare

larry summers sleeping tbiCourtesy of Joe Weisenthal at Clusterstock

Speaking on the Sunday morning shows, neither Tim Geithner nor Larry Summers would rule out the prospect of higher taxes to pay for healthcare:

AP: Geithner and Summers both sidestepped questions on Obama’s intentions about taxes. Geithner said the White House was not ready to rule out a tax hike to reduce the federal deficit; Summers said Obama’s proposed health care overhaul needs funding from somewhere.

"There is a lot that can happen over time," Summers said, adding that the administration believes "it is never a good idea to absolutely rule things out, no matter what."

During his presidential campaign, Obama repeatedly pledged "you will not see any of your taxes increase one single dime." But the simple reality remains that his ambitious overhaul of how Americans receive health care — promised without increasing the federal deficit — must be paid for.

Here’s the problem. It’s not that higher taxes to pay for healthcare are inherently a bad idea. Indeed, if the idea is to expand coverage and leave nobody uninsured then of course reform is going to be expensive. The problem is that it acknowledges the plan has no solution on the cost side. We keep hearing about how we need to bend the cost curve down so that medical care doesn’t swallow up all of our money and bust the deficit. So while we might be able to handle things on the government side, via taxes, it means that overall we’re making no progress on costs — just paying for it in a different way.

Anyway, Republicans will go crazy with the latest statements. We applaud their honesty, but the messaging on healthcare continues to be awful.

obama

See Also:

Obama Loses The Healthcare Debate

 

 

 


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China Avoids US Bond Sales

China Avoids US Bond Sales

Courtesy of timgeithner 24march09 closeup tbiJoe Weisenthal of Clusterstock

This week saw a series of monster bond sales--so many, in fact that buyers may be getting a stomachache.

WSJ: Tension on Wall Street trading desks began building late last week when the Treasury surprised the market with plans for a record week of sales. A Monday sale of $90 billion in Treasury bills with maturities of as much as a year went well. But China appeared absent from the following two sales, which totaled $81 billion of debt, traders say.

By Thursday morning, trading-desk heads were frantically working with clients to ensure a better fate for the $28 billion seven-year note auction. It did fare far better, allaying some concerns.

When asked about the shaky auctions, a Treasury official gave exactly the kind of answer that could assure nobody.

"We believe by maintaining the deepest, most liquid market in the world, we will continue to attract capital from a broad array of investors," said Andrew Williams, a spokesman for the Treasury Department.

Read the whole thing >

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Barofsky Discovers The Bailout Was Based On A Big, Fat Lie

Barofsky Discovers The Bailout Was Based On A Big, Fat Lie

neil barofsky tbiCourtesy of John Carney at Clusterstock

At the heart of the clash between TARP watchdog Neil Barofsky and his critics in the Obama administration is that Barofsky thinks that the bailout should be publicly accountable for meeting its public goal: Keeping banks lending money to fuel the economy. 

The Treasury Department, meanwhile, is happy with the secret goal--recapitalizing banks and consolidating weak banks with stronger ones.

This dichotomy is vividly portrayed in this essay by Glen Greenwald:

Barofsky wants to compel banks to account for those [TARP] funds and then publicize that information, while the administration opposes such efforts, claiming that accounting for TARP monies is impossible due to the "fungibility" of those funds.  To disprove that claim, Barofsky sent out voluntary surveys to the bank which proved that those funds could be tracked (and he found TARP funds were being used by receiving banks largely to acquire other institutions and/or create "capital cushions" rather than increase lending activity, the principal justification for TARP).

Now it’s been obvious to many of us for quite some time that financially unhealthy banks would never use the TARP money for anything but hoarding, paying bonuses and trying to prop themselves up. But that’s because we’re as cynical as the architects of the TARP. Barofsky, a career prosecutor, takes the entirely reasonable view that government programs shouldn’t be based on lies.

zombie bankOn a deeper level, what Barofsky is running into is a core problem with the way the TARP was designed. There’s simply no way the government could use capital injections to spur lending into a recessionary economy. It was bound to be used to increase capital cushions. And that’s because the Treasury Department and the Federal Reserve simply lacked the political imagination to find a way to shore up the financial system without propping up zombie banks.

What else could they have done? Very simply, we could have allowed failing firms to fail, wiped out shareholders, devastated bondholders, seized depositor assets, perhaps while increasing liquidity to make sure healthy financial institutions had enough cash on hand to deal with any panic.

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Second photo: Zombie haiti ill artlibre, license at Wikimedia.

 


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Bailout = $23.7 T & Watchdog Slams Banks’ Use of Cash

Total Bailout = $23.7 TRILLION

Courtesy of Joe Weisenthal of ClusterStock

Here’s a crazy stat for you. The total amount of US backstops and bailouts has reached a staggering $23.7 trillion!

How do we know? Because TARP watchdog Neil Barofsky is going to say so in his fresh report, and that report was leaked to many top media outlets, like WaPo and Dow Jones. If it’s available to the public, we certainly can’t find it on the SIGTARP website. The last report that’s up is from April, 21.

Presumably, one of Neil Barofsky’s main goals is to promote transparency within TARP. He could start by increasing transparency in his own office, instead of playing footsie with the same old media pals.

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TARP Watchdog Slams Banks’ Use Of Cash

Courtesy of Joe Weisenthal of ClusterStock

Neil Barofsky, the TARP Inspector General, comes back today with a by-now old classic.

Banks aren’t using the cash for lending, as would be proper, but are instead using it to make investments, or to repay debt, or in some cases — gasp! — to make acquisitions.

The Treasury has fired back with, again, the same old response: Money is fungible. It’s impossible to say which cash is going where.

This debate is really tired, and we think Barofsky is being disingenuous, perhaps because as IG he has to justify his work.

Here’s the thing, and it’s really pretty simple: No matter what politicians were saying at the time, TARP wasn’t passed to spur lending, and it wasn’t an investment. There were fears of a run on the bank, and the solution was to just take a whole big chunk of taxpayer money and throw it at the system. That’s it.

It was a blunt measure, and the long-term consequences of it we may come to regret, but it pretty much worked.

bailouts

To, after the fact, go back and say, "Ah, but you said it was about lending, and banks aren’t lending," is just silly. That was never the point, and Barofsky, presumably, knows that, otherwise we should get a more informed IG. Besides, since when does anyone who’s serious take Congress at its word? That’s his first problem right there.

And See: 

Please, Just Stop Saying Guarantees Are Costless

 

 


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Phil's Favorites

The Investigation: A Search For the Truth in Ten Acts.

Tune in to a star-studded live stream event ripped straight from the pages of the Mueller Report called The Investigation: A Search for the Truth in Ten Acts.

...

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Zero Hedge

2 Year Auction Unexpectedly Strong Just As Powell Pours Cold Water On Treasuries

Courtesy of ZeroHedge. View original post here.

In the chaos over Powell's unexpectedly less dovish comments which hit the tape at exactly 1pm, when sent stocks lower, and the dollar and bond yields sharply higher, the primary market had no time to react as it had already submitted its indications for today's $40 billion 2 Year auction when Powell suddenly pulled the rug from under the bond market, sending 2Y yields higher and yet since there was solid demand for the auction before Powell's commentary, the sale of 2Y bonds was a smashing success, stopping at a high yield of 1.695%, 1bp inside the 1....



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ValueWalk

Beyond Meat vs Impossible Burger: Comparing The Vegan Meat Burgers

 

Beyond Meat vs Impossible Burger: Comparing The Vegan Meat Burgers

Courtesy of Vikas Shukla, ValueWalk

Pexels / Pixabay

The trend of vegan food has been gathering momentum in the last few years as people become more health conscious. They have also begun to realize the environmental impact of raising meat for human consumption. According to PETA, it takes an estimated 1...



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Kimble Charting Solutions

Wilshire 5000 Creating A Triple Top? An Important Breakout Test Is In Play!

Courtesy of Chris Kimble.

The stock market has been on fire of late, rallying up to the edge of price resistance on several indexes. Today, we look at one of those stock market indexes: the Wilshire 5000.

The Wilshire 5000 tracks all of the stocks in the US market, so it is a broad-based index that carries significant importance when gauging the health of the overall US stock market.

Looking at the long-term “weekly” chart above, it is pretty clear that the index is at an important price juncture.

The Wilshire 5000 spent the last 25 years trading within a rising price channel (1)...



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Insider Scoop

Jefferies Upgrades Deere, Cites 'Significantly Improved Farmer Income Outlook'

Courtesy of Benzinga.

Farmer buying power will remain pressured for 2019, but this will change for the better next year and will help support Deere & Company (NYSE: DE), according to Jefferies.

The Analyst

Jefferies' Stephen Volkmann upgraded Deere from Hold to Buy with a price target lifted from $150 to $190....



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Chart School

Formula for when the Great Stock Market Rally ends

Courtesy of Read the Ticker.

When valuations for the boring water company or the boring electric company is trading like your Facebook, Apple, Amazon or Netflix or Google (ie FANG) you know something is wrong.

This is when a seriously over valued market is screaming at you.

Of course the reader must understand in a world where money printing goes super nuts (Zimbabwe style) the stock market may go hyper inflationary and picking a time frame for a top is never a good idea, but we are not there yet. There is no Ben Bernanke helicopter money to the masses yet (ie MMT). 

To see when water company's (and such like) are nearing the crazy FANG like valuations a review of the Dow Jones Utility Index channel shows us how history can repeat. The c...

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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

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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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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