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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Kimble Charting Solutions

Bearish Divergences Similar To 2000 & 2007 In Play Again!

Courtesy of Chris Kimble

Does history at important junctures ever repeat itself exactly? Nope

Do look-alike patterns take place at important price points? Yup

This chart looks at the S&P 500 over the past 20-years.

In 2000 and 2007 bearish momentum divergences took place months ahead of the actual peak in stocks.

Currently, momentum has created a bearish divergence to the S&P 500 for the past 20-months, as the seems to have stopped on a dime at its 261% Fibonacci extension level of the 2007 highs/2009 lows.

Joe Friday Just The Fact Ma’am; A negative sign for the S&P 500 with the divergence in play, would take place if support b...



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Zero Hedge

Libra Members Consider Quitting Project Due To Gov't Pressure: Report

Courtesy of ZeroHedge View original post here.

Authored by Marie Huillet via CoinTelegraph.com,

At least three of Facebook’s early backers for its planned Libra stablecoin launch are considering withdrawing their support in light of the fierce regulatory pushback.

...



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Phil's Favorites

Jamie Dimon Is in a Whale of a Mess on the WeWork IPO

Courtesy of Pam Martens

The WeWork IPO preliminary prospectus was filed last week with the Securities and Exchange Commission (SEC) and the company has been getting savage reviews ever since. WeWork is a commercial real estate company leasing out office space but is attempting to mesmerize the public into believing it is some genius new-age thinker.

JPMorgan Securities LLC, a unit of JPMorgan Chase, and Goldman Sachs & Co. are listed as lead underwriters on the IPO. Scott Galloway, a professor at NYU’s Stern School of Business, wrote on his blog that “bankers (JPM and Goldman) stand to register $122 million ...



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The Technical Traders

Do Good Traders Make Good Gamblers?

Courtesy of Technical Traders

Without breaking the rules, have you ever made a trade that was guaranteed to make you money? A trade that was literally guaranteed to succeed.

If you’re struggling to come up with an answer, we’ll give you a helping hand, the word you’re searching for is likely no. Every financial trade ever made – no matter how sound and well researched using technical analysis – carries with it an element of risk.

Outside factors beyond your control always have the possibility of turning profits into losses and ecstasy into agony. In many ways, trading is similar to gambling. For instance, you may think you know ...



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Insider Scoop

Earnings Scheduled For August 22, 2019

Courtesy of Benzinga

Companies Reporting Before The Bell
  • Hormel Foods Corporation (NYSE: HRL) is estimated to report quarterly earnings at $0.36 per share on revenue of $2.29 billion.
  • BJ's Wholesale Club Holdings, Inc. (NYSE: BJ) is projected to report quarterly earnings at $0.37 per share on revenue of $3.38 billion.
  • DICK'S Sporting Good...


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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

Everything awesome? Gold over $1500. Central banks are printing money to generate fake demand. Germany issues first ever 30 year bond with negative interest rate. Crazy times!

Even Australia and New Zealand and considering negative interest rates and printing money, you know a bunch of lowly populated islands in the South Pacific with no aircraft carriers or nuclear weapons. They will need to do this to suppress their currency as they are export nations, as they need foreign currency to pay for foreign loans. But what is next, maybe Fiji will start printing their dollar. 

Now for a laugh, this Jason Pollock sold for more than $32M in 2012. 





Ok, now call Dan...

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Lee's Free Thinking

Watch Out Bears! Fed POMO Is Back!

Courtesy of Lee Adler

That’s right. The Fed is doing POMO again.  POMO means Permanent Open Market Operations. It’s a fancy way of saying that the Fed is buying Treasuries, pumping money into the financial markets.

Over the past 6 days, the Fed has bought $8.6 billion in T-bills and coupons. These are the first regular Fed POMO Treasury operations since the Fed ended outright QE in 2014.

Who is the Fed buying those Treasuries from?

The Primary Dealers. Who are the Primary Dealers?  I’ll let the New York Fed tell you:

Primary dealers are trading counterparties of the New York Fed in its implementation of monetary policy. They are also expected to make markets for the New York Fed on behalf of its official accountholders as needed, and to bid on a ...



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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

Free eBook - "My Top Strategies for 2017"

 

 

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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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