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.


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.


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

Bernie Sanders Hasn't Quite Captured What Wall Street Does: It's Actually a Fraud-Monetization System with a Money-Printing Unit Called the New York Fed

Courtesy of Pam Martens

By Pam Martens and Russ Martens: January 21, 2020 ~

Senator Bernie Sanders has come closer than anyone on the Presidential campaign trail in defining what Wall Street actually does. Sanders has repeatedly stated at his rallies that “the business model of Wall Street is fraud.”

That analysis is correct but abbreviated. Sanders needs to go further. It’s not just Wall Street’s business model that has left the United States with the greatest wealth inequality since the Roaring Twenties (a time whe...

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Zero Hedge

Are Consumers Nearing The End Of Their Road Of Debt?

Courtesy of Zero Hedge. View original post here.


Are consumers getting close to the end of their road of debt?

Total consumer debt grew and set yet another new record in November, according to the most recent data released by the Federal Reserve. But the rate of growth slowed and credit card debt contracted slightly for the third month out of the last four.

Total consumer debt grew by $12.5 billion to $4.176 trillion. (Seasonally adjusted). That represents an annual growth rate of 3.6%, down from 5.5% in October.

The F...

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Kimble Charting Solutions

Hang Seng Index Double Topping At 2007 Highs?

Courtesy of Chris Kimble

Could the Hang Seng Index be “Double Topping” at its 2007 highs? Possible, yet not proven!

The Hang Seng Index attempted to break above its 2007 highs at (1), only to see a key reversal pattern take place the following month.

After the reversal pattern, the index has created a series of lower highs, just below falling resistance.

So far this month, the index is attempting to break above falling resistance, where it could be created a bearish reversal monthly pattern at (2).

What would it take to prove that a double top was i...

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Insider Scoop

Earnings Scheduled For January 21, 2020

Courtesy of Benzinga

Companies Reporting Before The Bell
  • Halliburton Company (NYSE: HAL) is projected to report quarterly earnings at $0.29 per share on revenue of $5.11 billion.
  • TAL Education Group (NYSE: TAL) is estimated to report quarterly earnings at $0.09 per share on revenue of $839.96 million.
  • Signature Bank (NASDAQ: ... more from Insider

The Technical Traders

Using the copy-paste formula in the Forex market

Courtesy of Technical Traders

In Forex there are many techniques available to boost up the profit factors. However, as there are millions of people trying to make a profit it is not easy to get the right tricks. There are many brokers offering high leverage trading account to the interested traders. They also provide useful insight into the market so that the traders can make a decent profit. In fact, some brokers often sell signals to their clients so that they can start earning money in the early stage of their careers.

At present, this method has earned a huge following as many investors don’t like to spend time staring at the chart. In this article, we are going to try to bust the myth about this infamous technique...

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Members' Corner

The War on All Fact People


David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...

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Chart School

SP500 Kitchin Cycle Review

Courtesy of Read the Ticker

The biggest known news date in the next 18 months is the US Election. The biggest unknown news date is when the US believes it is in a economic recession.

The Kitchin Cycle is still working.

We must conclude the major 900 period low is now in, and we are now in a up swing, which may top out ate 2020 or late 2021. Any future top out may only generate a 10% to 20% correction, of course this can be deemed very mild. This is expected, but the expected does always play out. 

Rolling the dice to get '7' does not always work. Post US elections seasonal's aligned with a poor start of the decade seasonal trends, add on high global recession risk, add on a stock market slump tends to occur in the years ending 9,1,2,3,4 (like 1973, 1...

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires


Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:


The ‘experts’ I hear from keep saying that once 300B more in reserves have ...

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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...


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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/

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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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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