The HardHead Fund

2011-02-15T18:34:00.003+09:00

What the Market Wants: Stocks over Bonds, Small Caps over Large

by Sabrient - February 14th, 2011 10:15 pm

Courtesy of David Brown, Chief Market Strategist

We’re going to start with what I do know – and then I’ll tell you what I don’t know.

Clearly, the market wants equities. Since September 1, 2009, the S&P 500 has gained approximately 25% and the Nasdaq, 35%—both rising in almost straight lines, interrupted by only one 5% pullback. Since February 2009, the S&P 500 is up 100% and the Nasdaq is up 120%, although not quite as smoothly and consistently as the past six months. Obviously, the market has wanted equities throughout this whole period—and throughout most of that period, the market has wanted more than anything else small-cap growth stocks, as you can see in the market stats below.

There are plenty of bears predicting a near-term correction, and indeed there could be one. But I believe that, particularly over the past six months, the market has been fueled by money moving from bonds into equities due to fear of interest rate increases. Of course, corporate America’s return to profitability, as reflected in strong quarterly earnings, also added fuel, butquite a lot of the fuel has come from short-covering sellers.

You might recall that we reached a historic record in cumulative short interest a year or so ago. That number has dropped but is still quite high, and short-sellers have been covering out of fear of further gains by the market. This has lifted stocks that don’t deserve the boost, along with the good stocks, but that’s what happens when short positions dominate a stock. I’m not aware of a VIX-like index that measures short sellers’ fear of the market going up, but if there were one, it would be a very high number these days.

The VIX itself—the so-called “fear indicator” that measures investors’ fear of the market going down—is at historically low levels, around 15, which jibes with the market’s exuberant rise.

Will it continue? That’s what I don’t know.

I would be reluctant to bet against the market right now as there’s still a lot of fuel to add to the sizzle. Inevitably, interest rates will rise, the thought of which plagues long-term bond holders who may have to turn to stocks; short-sellers will keep covering their shorts; and although the current earnings season for all practical purposes is over, corporations will continue to earn more money as they embrace their streamlined, no-fat infrastructure.… have to be a member to read the rest (but wait 24hrs and its free)

AND the rest of the story I call it - from today

http://shadowcapitalism.com/2011/02/15/chinese-cpi-comes-in-at-whisper-figures-after-cut-to-food-weighting-while-new-loans-come-in-at-%C2%A51-2t-as-westlb-portuguese-gdp-weigh-on-euro-13f-monday/

20110215

sorry

2011-02-03T19:29:00.001+09:00

my posts are not regular as I am fighting cancer - more 2 come later

Goldman still rules the world

2011-01-20T02:36:00.000+09:00

Employees at Goldman Sachs Group Inc earned an average of $430,700 each in 2010.

read all

Awesome Apple

2011-01-19T07:43:00.001+09:00

Apple Inc. reported blowout earnings growth for the December quarter as strong holiday sales of the iPhone and iPad drove the company’s results for the period.

The company also parted with its customarily conservative forecast with an outlook for the March quarter that was also well ahead of Wall Street’s estimates.

REALLY AWESOME!!!

JP Morgan replaces Goldman Emmmmm

2011-01-15T02:59:00.002+09:00

JP Morgan bankers get $10 BILLION pay and bonus pot.

read here

Goldman pledges openness

2011-01-12T06:19:00.001+09:00

Goldman pledges openness, avoids shakeup - Ha Ha Ha... sure they will!!!

Goldman Sachs Group Inc pledged to be more open about how it makes money and to put clients' interests ahead of its own.

Read it all here:

First joke of the FED year

2011-01-05T20:09:00.002+09:00

U.S. blue-chip stocks edged higher Tuesday after minutes from the Federal Reserve’s last meeting showed the central bank registered moderate improvement in the economy and saw no reason to modify its major bond-buying program.

In the minutes, the central bank said that a stronger U.S. economy is among the reasons behind the rise in government bond yields, which may undermine its efforts to keep the recovery going via low interest rates. In November 2010, the Fed announced a $600 billion bond purchase program, known as “quantitative easing,” or “QE2.” Despite the improvement in the economy, Fed officials “generally felt that the change in the outlook was not sufficient to warrant any adjustments to the asset-purchase program,” the minutes showed.

Bad Omen for the New Year

2011-01-02T22:53:00.001+09:00

More than 1,000 black birds to die and fall from the sky over an Arkansas town.

link

Irish Financial Bailout

2010-12-29T21:40:00.001+09:00

So this is how it's done...

It is a slow day in a damp little Irish town. The rain is beating down and the streets are deserted.. Times are tough, everybody is in debt and everybody lives on credit.
On this particular day a rich German tourist is driving through the town, stops at the local hotel and lays a 100 Euro note on the desk, telling the hotel owner he wants to inspect the rooms upstairs in order to pick one to spend the night. The owner gives him some keys and, as soon as the visitor has walked upstairs, the hotelier grabs the 100 Euro note and runs next door to pay his debt to the butcher. The butcher takes the 100 Euro note and runs down the street to repay his debt to the pig farmer. The pig farmer takes the 100 Euro note and heads off to pay his bill at the supplier of feed and fuel. The guy at the Farmers' Co-op takes the 100 Euro note and runs to pay his drinks bill at the pub. The publican slips the money along to the local prostitute drinking at the bar, who has also been facing hard times and has had to offer him "services" on credit. The hooker then rushes to the hotel and pays off her room bill to the hotel owner with the 100
Euro note. The hotel proprietor then places the 100 Euro note back on the counter so the rich traveller will not suspect anything. At that moment the traveller comes down the stairs, picks up the 100 Euro note, states that the rooms are not satisfactory, pockets the money and leaves town.
No one produced anything. No one earned anything. However, the whole town is now out of debt and looking to the future with a lot more optimism. And that, ladies and gentlemen, is how the bailout package works "AND YOU THOUGHT IT WAS DIFFICULT"

Vatican Bank = Goldman Sachs = Mafia

2010-12-12T14:37:00.003+09:00

Institute for Religious Works is a bank is under harsh new scrutiny in a case involving money-laundering allegations that led police to seize $30 million in Vatican assets in September. Critics say the case shows that the "Vatican Bank" has never shed its penchant for secrecy and scandal.

Is Apple Worth More Than Gold?

2010-12-10T09:38:00.000+09:00

Apple Inc. (NASDAQ: AAPL) and gold have both been major gainers this year. That makes it hard to ignore the notion that the gold trade may have become almost the same as the Apple trade. After looking at the pros and cons of this comparison, it looks like there are far more similarities than differences. To keep things simple, we are using the SPDR Gold Shares (NYSE: GLD) as the comparison.

Read more: Is Apple Worth More Than Gold?

Men with their toys

2010-12-06T17:22:00.002+09:00

South Korea’s military began live-firing drills off its coastline, similar to exercises held last month that North Korea says prompted it to shell a South Korean island, killing four people.

The South Korean government warned ships to avoid 29 areas, including one about 7 miles (11 kilometers) from Daecheong island close to the disputed western border. A spokesman at the Joint Chiefs of Staff in Seoul, who declined to be named because of military policy, couldn’t confirm whether all the drills had started on schedule.
North Korea yesterday warned that the South risked "catastrophic consequences" with its plans. The government “is so hell-bent on the moves to escalate the confrontation and start a war that it is recklessly behaving bereft of reason,” the state-run Korean Central News Agency said in a commentary.

------

Oil is at 90 dollars a barrel. The governments of Europe, Japan, and the United States are saturated with debt. House prices in the US are falling again, and there’s no job growth in America. Put it all together, and for some reason, many are still imagining that we’re in an economic recovery.

CANCER SUCKS

2010-12-04T01:04:00.001+09:00

I'm still fighting cancer and it has moved into my left lung and several other places. The pain has begun and I am now on Tramadol (similar to Morphine) and coughing up blood from time to time. My days posting to this blog are fewer and fewer as I am still working full time and doing chemo.

However, I must say God has been good to me as my Bucket List is complete.

WikiLeaks.org removed from DNS servers

2010-12-03T13:01:00.000+09:00

You can't get to Wikileaks.org anymore. It's down because they removed the domain from the global dns servers. However, you can still access the site at http://213.251.145.96

North Korea again - duh

2010-11-23T17:50:00.002+09:00

At 2:34PM (KST), North Korea fired artillery shells across the ocean border, and at least 200 shells landed on South Korea’s Yeonpyeong island. While there have been altercations in the past, the South Korean people are experiencing a panic because the artillery shells were fired at an inhabited island.

Wall Street insider-trading probe

2010-11-21T17:41:00.001+09:00

My luck - HA!

U.S. nearing end of major Wall Street insider-trading probe

The Journal reported that authorities are investigating bankers at Goldman Sachs in particular who may have given confidential information about health-care mergers to certain investors. Goldman is the top provider of investment banking services in health-care deals. A Goldman spokesman declined to comment.

Ron Paul in Charge of Fed Oversight?

2010-11-05T09:37:00.001+09:00

from FOXNEWS:

Here's a little irony in the House GOP sweep: The next chairman of the monetary policy subcommittee -- overseeing the Federal Reserve?

None other than Ron Paul (R-Texas), who'd just as soon abolish the Fed.

Paul is the ranking member of the Subcommittee on Domestic Monetary Policy and Technology on the Financial Services , which oversees the Federal Reserve, the U.S. Mint and American involvement with international development groups like the World Bank. Unless someone bumps him, he's next in line for the subcommittee gavel.

Stockman on Bloomberg TV

I think the Fed is injecting high grade monetary heroin into the financial system of the world

Bernanke Experiments Boost Economy

2010-11-04T07:43:00.000+09:00

Bernanke Experiments With Crisis Tools to Boost Economy

Oh CRAP CRAP the dollar is just going to hell - just so the S&P 500 companies that do business can make a profit due to the low dollar. This is such a BONEHEAD MOVE - DUH!

Business as usual

2010-10-28T23:09:00.000+09:00

Wells Fargo erred in thousands of foreclosures

Wells Fargo erred in thousands of foreclosures, promises to fix but won't halt seizing homes.

Please read

2010-10-26T10:30:00.000+09:00

This should be read and understood by all Americans Democrats, Republicans, EVERYONE!!

To the present and past Presidents and all 535 voting members of the Legislature,

It is now official you are ALL corrupt morons:

a.. The U.S. Postal Service was established in 1775. You have had 234 years to get it right and it is broke.

b.. Social Security was established in 1935. You have had 74 years to get it right and it is broke.

c.. Fannie Mae was established in 1938. You have had 71 years to get it right and it is broke.

d.. War on Poverty started in 1964. You have had 45 years to get it right; $1 trillion of our money is confiscated each year and transferred to "the poor" and they only want more.

e.. Medicare and Medicaid were established in 1965. You have had 44 years to get it right and they are broke.

f.. Freddie Mac was established in 1970. You have had 39 years to get it right and it is broke.

g.. The Department of Energy was created in 1977 to lessen our dependence on foreign oil. It has ballooned to 16,000 employees with a budget of $24 billion a year and we import more oil than ever before. You had 32 years to get it right and it is an abysmal failure.

To hell with American Express n Glen Beck

2010-10-20T01:55:00.001+09:00

AND DUMP AMEX STOCK - they reduced my credit limit 25% for no REASON!!!

Investors are stupid - like AMEX

2010-10-19T01:08:00.000+09:00

Apple shares are down 5% after reporting an excellent quarter and Apple's as usual "CRAPPY GUIDANCE."

However, short term and long term marketable securities totaled $51 billion at the end of the September quarter compared to $45.8 billion at the end of the June quarter, an increase of $5.2 billion. Cash flow from operations was $5.7 billion.

APPLE generated record revenue of over $65 billion, an increase of over $22 billion year-over-year or 52%.

Apple sold 14.1 million iPhones in the quarter which represents a 91% unit growth over the year-ago quarter.

Steve Jobs on the IPAD - The iPad incorporates everything we have learnt about building high value products from iPhones, iPods and Macs. We create our own A4 chip, our own software, our own battery chemistry, our own enclosure, our own everything. And this results in an incredible product at a great price. our potential competitors are having a tough time coming close to iPad's pricing, even with their far smaller, far less expensive screens.

To hell with American Express

2010-10-19T00:55:00.003+09:00

Today, I went to charge my hospital bill to American Express and was informed my card wasn't accepted. Earlier in the week I contacted AMEX asking about my next payment due to the fact I was in the hospital and a few weeks earlier I was bitching about AMEX increasing my rates for NO REASON!!! I had about a $10,000 credit remaining on my AMEX and today I receive an email that they cut my credit line by about $6,000.

Luckily, I called a REP an explained my problem and he told me my account was under review... WTF all because I mentioned I was in the hospital for awhile. He granted me a $5,000 extension so I could pay my bill... yeah thanks AMEX you look like a nice guy NOT!!!

I will be an AMEX HATER to the day I die after being a loyal customer for nearly 20 years

DAMN CANCER

2010-10-18T05:01:00.001+09:00

I have been in a Korean hospital for over a month and just got out today. They cut me 2 times to remove more cancer from my insides. Now, I have a little in my lung.... it's an conspiracy I tell ya !!! GOLDMAN must run the cancer cells of the world - lol

A cannibal was walking through the jungle and came upon a restaurant operated by a fellow cannibal.

Feeling somewhat hungry, he sat down and looked over the menu....

+Tourist: $5.00

+Broiled Missionary: $10.00

+Fried Explorer: $15.00

+Baked Liberal or Grilled Conservative: $100.00

The cannibal called the waiter over and asked, "Why such a high price for the Politicians?"

The cook replied, "Have you ever tried to clean one?
They're so full of crap, it takes all morning."

More lies from the masses

2010-09-16T02:26:00.000+09:00

Industrial Capacity: Watch The Revisions!

Claimed to have increased:

Industrial production rose 0.2 percent in August after a downwardly revised increase of 0.6 percent in July.

So it's actually down 0.2%, since the previous report was up 1.0%.

See how that happens? They hide the truth in plain sight and make you believe that things have improved when in fact, compared to the previously-reported levels, they did not.

Capacity utilization was 74.7%, which was a clean miss on expectations.

The output of consumer goods declined 0.4 percent in August after having risen 0.8 percent in July. In August, the index for consumer durables fell 3.0 percent, with decreases occurring in all of its major components. The output of automotive products recorded the largest drop, 5.2 percent, and the output of appliances, furniture, and carpeting declined 2.1 percent.

But but but but.... we were also told that inventories were building? Uh, that's not so good, right?

This means that not only is output slowing but sales are slowing faster, otherwise inventories would be drawn down, not built up.

Don't buy the hype - read for the facts.

Most of the time the truth is right under your nose.

MARKET-TICKER

Uncle Ben had two faces it seems

2010-09-09T01:04:00.000+09:00

The Federal Reserve said the U.S. economy maintained its expansion while showing “widespread signs of a deceleration” in mid-July through the end of August, according to a survey by 12 regional Fed banks.

Five regional banks reported “economic growth at a moderate pace” and two pointed to “positive developments or net improvements.” The remaining five banks said conditions were mixed or decelerating.

The report underscores the Fed’s view that while the recovery from the worst recession in seven decades has cooled, the economy isn’t relapsing into a contraction. In a speech last month in Jackson Hole, Wyoming, Fed chairman Ben S. Bernanke said “the preconditions for a pickup in growth in 2011 appear to remain in place.”

In the previous regional report, released July 28, the Fed said “economic activity has continued to increase, on balance.” Two Fed districts reported the economy “generally held steady,” while two others said the pace of growth “had slowed recently.”

CRIME does PAY if you are RICH

2010-08-31T04:38:00.008+09:00

Mark Hurd to the curb for financial impropriety has today reported it'll pay $55 million in a settlement with the US Department of Justice relating to some fiscal delinquency of its own. HP was accused of greasing up the wheels of business, as it were, by throwing cash around to companies who would recommend its services to state procurement agencies. This particular set of allegations related to a federal contract obtained by HP in 2002, and the settlement also extinguishes investigation into whether or not the computer vendor had provided incomplete information to the US government. That's all well and good, but we have to question the size of these levies. Today's also the day that HP announced a new $800 million supply contract with the US Air Force... GO UNCLE SAM!!!

Also My Money Man SPEAKS... heed his words of wisdom

I'm the IDIOT today - 4got it's a POMO day

2010-08-27T14:28:00.000+09:00

One of the most beloved phenomena of Fed intervention is the "miraculous" ramp in stocks on days in which the Fed's Permanent Open Market Operations (POMO) occurred: while this was a requisite in 2009 when the Fed monetized $700 billion in Treasurys, it had gradually disappeared from the public consciousness after the termination of the Treasury portion of QE1 in October 2009. Well, now that POMO is back courtesy of QE Lite, and with the help of various sellside analysts, Primary Dealers knew precisely which Treasury CUSIPs to purchase in advance of the auction for a quick leveraged pick up of a few hundred bps. And now that the money is funded back to the PDs, as of the end of the POMO operation at 11am Eastern, it needs to find a new home. And with the PDs providing the initial impetus for a risk asset (read stock) ramp, and momo quants picking up the sloppy seconds as they jump over each other to send the momentum driven ramp ever higher.

What this means is that going forward, every single day that the Fed is monetizing bonds via 10:15-11:00am POMOs, it will be very foolhardy to short into the Fed's stock surging offensive. As a reminder, here are the immediately upcoming POMO days through the end of August: August 19, August 24, August 26, and September 1. Shorting on those days has once again become implicitly illegal.

From Tylor Durden

Futures up on Speculation... whew

2010-08-27T07:49:00.000+09:00

We are surrounded by IDIOTS daily!

(Bloomberg) -- U.S. index futures rose, indicating stocks will pare their third week of declines, on speculation Federal Reserve Chairman Ben S. Bernanke will signal measures to stimulate the economy. The yen weakened as Japan’s Naoto Kan pledged “bold” action to prevent further gains in the currency.

Bernanke will discuss the outlook for the economy and policy responses at the central bank’s annual symposium in Jackson Hole, Wyoming. The U.S. economy probably slowed in the second quarter even more than initially calculated, economists surveyed by Bloomberg said before today’s Commerce Department report. Japan’s Prime Minister Kan said the government will compile an outline of its stimulus plan on Aug. 31.

“The Fed needs to lay out the available measures that it can take in order to try and inject some more liquidity into the market,” Richard Cookson, global chief investment officer at Citigroup Inc.’s Private Bank in London, said on Bloomberg Television’s “On The Move” with Mark Barton. “On the one hand he doesn’t want to say that everything is going to hell in a hand basket, while on the other hand, what he does want to do is say, is if things do deteriorate further, this is what we can do.”

Bush vs Obama - - - - BOTH STINK

2010-08-26T08:32:00.000+09:00

We were promised stimulus, programs and policies that would have lasting effects. What we got instead was a trillion dollar sand castle. Now that the inexorable tides have eroded away our leadership's best-laid (and funded) plans, someone needs to be held accountable.

Haven't you noticed the subtle shift in the rhetoric? It used to be about creating jobs, but lately they've been banging the drum about how many jobs they've "saved".

Not that John Boehner and the Republicans have put out any world-stopping ideas either (cut taxes for a change?)...but still, they are right: This Obama administration "economic team", or what's left of it, couldn't create a single net job if their careers depended on it.

From : crap I can't remember where I got it - sorry

What is the FED really afraid of?

2010-08-26T04:39:00.000+09:00

The Federal Reserve Board sought to delay the court-ordered release of documents identifying banks that might have failed without the U.S. government bailout while it considers an appeal to the U.S. Supreme Court.

The Fed asked the U.S. Court of Appeals in New York yesterday to delay implementation of a ruling that compels the central bank to release the documents.

“The stay is necessary to permit the board to consult with the Department of Justice regarding an appeal to the Supreme Court,” Fed spokesman David Skidmore said.

Bloomberg

Markets Falling off a cliff

2010-08-24T09:41:00.000+09:00

Existing home sales in June dropped 5.1 percent,

Consumer spending was weak again and the trend continues.

But have no fear as corporate profits are higher than EXPECTED!

Someone is lying here... emmm.

HERE comes the knockout punch for some companies:

from Bruce Krasting

About 25 years ago I worked for a few months with a team of deep thinkers who were trying to convert Capital Leases into Operating Leases for tax and accounting purposes. The objective was to get the most optimal treatment; (1) tax deductible amortization of the asset and (2) keep it off the balance sheet so as to hide the true debt level and therefore improve balance sheet ratios. There were strict rules that were supposed to avoid this. But is was a goldmine idea if it could be done. This was early derivative days. Make something look different than what it actually was. I thought it was a dumb idea, so I quit and went to sell junk bonds at Drexel. Turns out the folks involved figured it out and made a bundle selling it. I am still glad I was not involved.

Now, a quarter century later, the regulators are catching up to this. It is possible that changes will be made. If they do, it will have very significant implications. The Economist has an article that sums things up pretty well. Here is the link, some sections of the report:

This new rule, proposed on August 17th by the two regulators (IASB and FASB), has shocked companies everywhere.

The change will make a lot of firms look wobblier: a survey by PricewaterhouseCoopers, an accounting firm, found that it would add about 58% to the average company’s interest-bearing debt.

Many companies are close to their maximum debt limits, and the new rules could push them over the edge. Small wonder they are howling.

Other companies will see their apparent return on capital plunge. Many firms will see their debt-to-equity ratio rise and their ability to borrow fall.

You can look at each company’s BS and estimate what the impact of the new rules will be. The article suggests that airlines and retailers will be hard hit. The list of companies with Operating Leases is endless. I would imagine that most of the S&P 500 will be impacted one way or the other.

Yesterday's market was a dead cat bounce =)

2010-08-18T07:13:00.001+09:00

Economist Larry Kotlikoff, author of The Coming Generational Storm, warns: "Let's get real. The U.S. is bankrupt. Neither spending nor taxing will help the country pay its bills" ... Economist Peter Morici warns: "Unemployment is stuck near 10%. Deflation coming. Stock market threatens collapse. The Federal Reserve and Barack Obama are out of bullets. Near zero federal funds rates, central bank purchases, a $1.6 trillion deficit have failed to revive the economy." ... Simon Johnson, co-author of 13 Bankers, warns: "We came close to another Great Depression, next time we may not be so lucky." Why? Because Wall Street's already well into the next bubble/bust cycle -- the "doom cycle."

Jim Rogers : had capitalism been allowed to work we wouldn't be in this situation , if back in 1994 or 1998 people have been allowed to collapse we would not had the prosperity we had in the early part of this decade on the other hand we would not had the collapse that we have now , we had an artificial prosperity now we have an artificial decline if you will...that's government interference that's not capitalism that caused that that 300 million Americans that now have to pay for the people in the financial district and say the other 10 million who did do these things ...I mean that's absurd that's not the way the system is supposed to work ,this is how the system is supposed to work : incompetent people fail , competent people will come along take over their over their assets reorganize and the system starts over , it's called creative destruction it's a capitalist kind of thing ....what's happening now is the government is coming along and taking the money from the competent people giving it to the incompetent people and saying now you compete with the competent people with their money ...the whole system is wicked that's called socialism ...you should recognize that ....you should recognize that system that's what the socialist do that's what the communist tried to do....."

ROLLING ROLLING - D O W N

2010-08-12T08:47:00.000+09:00

Ohhhhh my another 480,000 Americans are out of work this week.

Just how is GOLDMAN SACHS going to save the USA?

They are NOT - they are just going to pack up and move to SINGAPORE.

News - Nothing has changed for the last year

2010-08-11T08:59:00.001+09:00

SAME OLD CRAP TO ME - I never understood why the market was up this year to begin with at all.

Should I feel sorry? Shoot me....

2010-08-09T07:38:00.001+09:00

Goldman's Best

Goldman Sachs Group Inc., the bank that makes the most revenue trading stocks and bonds, lost money in that business on 10 days in the second quarter, ending a three-month streak of loss-free days at the start of the year.

Losses on Goldman Sachs’s trading desks exceeded $100 million on three days during the period that ended on June 30, according to a filing today by the New York-based company with the U.S. Securities and Exchange Commission. The firm also disclosed that trading losses surpassed its value-at-risk estimate, a measure of potential losses, on two days.

Trading results across Wall Street firms declined after Goldman Sachs and its biggest rivals posted perfect results, with no losing days, in the first quarter. Goldman Sachs’s $5.61 billion in second-quarter trading revenue exceeded all of its Wall Street competitors. The bank, overseen by Chairman and Chief Executive Officer Lloyd Blankfein, relied on trading for 71 percent of its revenue in the first half of the year, down from 80 percent a year earlier.

Today’s filing also shows that the firm’s traders generated more than $100 million on 17 days during the quarter. Of the 65 days in the quarter, Goldman Sachs traders made money on 55 days, or 85 percent of the time.

Simple solution

2010-08-08T14:54:00.002+09:00

Market Rides a Wave of Hope to End Higher

2010-08-06T06:57:00.000+09:00

Breaking News:

Unemployment tops 70%, Aliens Invade, WW-III Declared, Deadly Infectious Virus on Rampage Across Globe, All Fortune 500 Co's Declare Chapter 11, FDIC Goes Under, Money Markets Break the Buck (again), China Nukes Japan....

PAretiree

No jobs + No new houses = BULL Market

2010-08-05T09:40:00.000+09:00

Initial jobless claims which rose 19,000 in the July 31 week to 479,000. The prior week was revised 3,000 higher to 460,000. The four-week average rose 5,250 to 458,500.

HAVE NO FEAR GOLDMAN SACHS n CREW will save the BULLS

JackAss report of the Week - only 457K jobs loss

2010-07-29T08:50:00.002+09:00

But don't worry KIDS - that JOB REPORT is 3,000 jobs less than what was expected... Soooo market will be up today just on this report.

GOLDMAN and CREW are hiring to take your precious $$$ and turn it into a profit for them. Therefore, little boys n girls it is a BULL MARKET as the FED prints the money and gives it to all the Wall St investment banks at ONLY 0.25% interest.

All looks normal to me - Wall St is hiring

2010-07-29T06:26:00.000+09:00

(MarketWatch) -- Facing a $19.1 billion state deficit and with no budget in place, California Gov. Arnold Schwarzenegger reinstated furloughs for state workers in an executive order declaring a fiscal emergency Wednesday.

The new furloughs call for state employees to take three unpaid days off a month, starting Aug. 1, until the state can enact a new budget or the state has enough cash on hand for the fiscal year.

Ok who lied about new housing sales?

2010-07-28T08:02:00.003+09:00

The Mortgage Bankers Association composite index for the week ending July 23 declined a seasonally adjusted 4.4 percent from one week earlier. The refinance index decreased 5.9 percent from the previous week. However, the purchase index increased 2.0 percent from one week earlier and is the highest purchase index observed in the survey since the end of June.

Emmm 2% increase...... smelly stuff

New home sales in June rebounded 23.6 percent after plunging a revised 36.7 percent in May. The June pace recovered to an annualized 330,000 from a revised 267,000 for May.

Im going to check into the hospital Friday to see if my brain and other parts are OK... for real. Cancer sucks and too bad it is on Wall Street for the rest of the decent people in the world trying to make a living... BY NOT CHEATING!

Ha... more bad data and MARKET UP

2010-07-27T10:23:00.000+09:00

Consumer confidence dipped in July-again over worries about the jobs picture and over income prospects. The overall consumer confidence index slipped to 50.4 in July from an upwardly revised 54.3 in June (initially 52.9). Analysts projected July to print at 51.0. The latest decrease was led by a drop in expectations to 66.6 from 72.7 in June. But the present situation sub-index also declined-to 26.1 from 26.8.

Those seeing jobs as hard to get rose to 45.8 percent in July from 43.5 percent the prior month. On the issue of expectations of income, 17.5 percent see income down in six months, compared to 16.8 percent in June. Only 10 percent expect higher income in six months, compared to 10.6 percent in June.

Market surges on Crap news again - Wall St only one buying

2010-07-26T21:06:00.002+09:00

Goldman Analyst looking for inside info

Gezz this market is so manipulated it is sicking. BLAH BLAH - it dont matter as GOLDMAN n CREW feed off the fundamental traders.

Today, Bloomberg stated new home sales jumped... ohh really did they? Ever here of a DEAD CAT bounce?

Sales of U.S. new homes rose in June more than forecast following an unprecedented collapse the prior month, a signal the worst of the slump triggered by the end of a government tax credit is over.
Purchases increased 24 percent from May to an annual pace of 330,000, figures from the Commerce Department showed today in Washington. The rate was the second-lowest in data going back to 1963 after May’s downwardly revised 267,000 pace.
Economists forecast sales would rise 3.3 percent to an annual pace of 310,000, according to the median of 73 projections in a Bloomberg News survey. Estimates ranged from 260,000 to 360,000.
The government had initially estimated May sales at a 300,000 rate and revised down figures for every month since March. The 37 percent plunge in May was the biggest on record.
***
Purchases of previously owned homes, which are tabulated when a contract closes, fell a less-than-forecast 5.1 percent in June.
***
Home seizures jumped 38 percent in the second quarter from a year earlier, RealtyTrac Inc. said last week, putting lenders on pace to claim more than 1 million properties this year.

STUPID is here again

2010-07-22T09:29:00.003+09:00

Futures up triple digits? On what news you say?

FUTURES

	VALUE	CHANGE	% CHANGE
Dow	10,170.00	112.00	1.11
S&P 500	1,078.20	14.30	1.34
NASDAQ 100	1,837.00	21.50	1.18

Stocks and U.S. futures gained as EBay Inc. and Caterpillar Inc.’s earnings beat estimates and growth accelerated in European manufacturing and services. The dollar fell after Federal Reserve Chairman Ben S. Bernanke said the economic outlook is “unusually uncertain.”

The Stoxx Europe 600 Index climbed 1.3 percent at 8:30 a.m. in New York as 10 stocks advanced for every one that declined. Futures on the Standard & Poor’s 500 Index gained 1 percent, paring gains after the Labor Department said jobless claims rose more than forecast last week. The Dollar Index dropped 0.8 percent, and copper increased for a fourth day.

The unexpected acceleration in manufacturing and service industries signaled Europe’s economy is growing.

JOBLESS CLAIMS ARE +460,000 and existing home sales are ONLY DOWN 5.1%.

The index of leading economic indicators fell 0.2 percent in June and, excluding the interest rate spread, would have fallen a rounded 0.6 percent. The rate spread, exaggerated by near zero rates on the front end, has been holding this index up throughout the recovery.

The factory workweek was the single biggest negative for the report followed by vendor performance. These are two readings hinting at trouble for the manufacturing sector, the sector that has been leading the economy out of recession.

Technical and fundamental traders gets slammed again again by Wall St Crooks!

update - 10:20AM

EQUITY INDEXES

	VALUE	CHANGE	% CHANGE
S&P 500	1,093.69	24.10	2.25
NASDAQ	2,240.76	53.43	2.44
Russell 2000	630.11	17.47	2.85

Duh - really? Are people going to listen to fundamentals again?

2010-07-21T14:36:00.000+09:00

US stocks pulled lower as Wall Street mulled the written testimony of Federal Reserve Chairman Ben Bernanke. The Fed chief said the central bank is ready to take further action should the economy significantly worsen.

Does he see something I have been seeing the past 12 months or more?

APPLE ROCKS AGAIN - the best stock on the planet

2010-07-21T08:24:00.000+09:00

"The numbers are spectacular," said Shaw Wu of Kaufman Brothers in an email. "They were able to post very strong results despite an inventory drawdown on the iPhone 4 -- looks like they managed the iPhone 3GS to 4 transition smoother than expected."

For the quarter ended June 27, the company reported earnings of $3.25 billion, or $3.51 per share, compared with earnings of $1.83 billion or $2.01 per share for the same period the previous year.

Revenue jumped 61% to $15.7 billion.

$45 BILLION IN CASH FOLKS - Apple is worth more than the US Government!

The best song of the YEAR!

2010-07-21T07:21:00.000+09:00

The Bellamy's are on a bus tour right now in the states and are singing this on every stop & are getting ready to go overseas. This has caused quite the uprising. It's even been said that it should be banned in the US and that if the Bellamy's leave the US, they won't be allowed back. Plus people (politicians) are saying it offends them...guess the truth hurts!!!

Corporate GREED RULES AMERICA

2010-07-20T16:06:00.000+09:00

No longer known as the Godfather of Wall Street - Goldman Sachs reached God status today!

SAN FRANCISCO (MarketWatch) -- Goldman Sachs Group Inc.'s Chief Financial Officer David Viniar said Tuesday that market sentiment hasn't turned yet, after a tough second quarter in which the firm's clients were a lot less active.

"Sentiment can change very, very quickly, but it has not turned yet," Viniar said during a conference call with analysts after Goldman released quarterly results.

Also, the FED ganged up with Goldman today. Shares climbed amid speculation the Federal Reserve will take steps to spur the economy.

Bloomberg:

Nine of 10 industries in the S&P 500 advanced as traders speculated Federal Reserve Chairman Ben S. Bernanke may tomorrow announce plans to stimulate the economy. Commodity producers and homebuilders, which defied the earlier slump, led gains in stocks after better-than-estimated 2.1 percent growth in building permits spurred optimism in the outlook for demand.

“The market is getting a boost here on a story from somewhere that the Fed is going to announce that they will stop paying interest on reserves where they are currently paying 0.25 percent,” said Peter Boockvar, equity strategist at Miller Tabak & Co. in New York. “This would be the Fed’s attempt to force banks to lend money instead of parking it at the Fed.

It took Congress about 2,400 pages to document its plan for reforming America's financial system, but the appropriate reaction for the nation's consumers can be summed up in just three words: Thanks for nothing.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is a big sham. The bill is about what most people expected from this Congress. It is a total disaster. It can't even work on a budget and has delayed that until after the election, passing a temporary spending bill instead. No wonder the approval rating of Congress is lower than the belly of a snake.2400 pages to say nothing meaningful? What bunch of garbage."

AGAIN - I AM SO SHAMED TO BE AN AMERICAN. TO HELL WITH GOLDMAN SACHS AND THE FED.

Market up again on bad news - hi Goldman n Crew

2010-07-20T14:02:00.000+09:00

EQUITY INDEXES

	VALUE	CHANGE	% CHANGE
S&P 500	1,078.07	6.82	0.64
NASDAQ	2,203.50	5.27	0.24
Russell 2000	616.73	3.65	0.60
S&P/TSX Comp	11,575.82	32.35	0.28
Mexico Bolsa	31,931.86	85.98	0.27
Brazil Bovespa	64,362.55	1,065.51	1.68

as of 2PM

Redbook is reporting less strength than ICSC-Goldman. Redbook's same-store sales tally shows a plus 2.7 percent year-on-year rate for the July 17 week, slightly below the four-week average of 2.9 percent. ICSC-Goldman's year-on-year rate is plus 4.2 percent with its four-week average at plus 3.6 percent.

Unlike ICSC-Goldman, Redbook offers a month-on-month rate which is pointing to trouble for the ex-auto ex-gas reading of the Commerce Department's retail sales report. Redbook sees a 0.6 percent decline for July, the same decline it saw for June. This comparison jives with company news from retailers who are increasingly warning that consumer caution is growing.

Goldman Sachs and others caused starvation

2010-07-16T11:15:00.001+09:00

Most politicians and investors have a place reserved in hell...

as Goldman and others caused the cost of rice to soar +300%.

Here's an article by Johann Hari of The Independant that describes the mechanism that causes human generated starvation. It is caused by speculators bidding up prices of food commodities so that the poor of the world have to go to sleep empty stomach having not enough pennies in income for the day to afford adequate nutrition.

I also witness this first hand in the Philippines last year. In Korea the price more than doubled.

Goldman and SEC kiss each other asses - Crime Does Pay

2010-07-16T08:40:00.002+09:00

Goldman Sachs and the SEC settled the great big fraud charge at a dollar amount of $550 million just now. The regulators get to claim victory while the Eloi get to continue their frolic atop the fluffy clouds of privilege and untouchability. Nobody admits wrongdoing, rightdoing or frankly, admits anything at all for that matter.

The image that comes to mind when I think of this battle is that of a serpent swallowing its own tail, like the mythological Ouroboros of the ancient Egyptians.

Let’s do a quick civics course for those who’ve lost track…

There are three branches of government in the United States - Wall Street, Hollywood and the Military. Every once in a while, their courtesans in Congress feel the need to "tax" these firms for either actual dollars or for reasons of reputation and appearances.

So in this era, with trillions of dollars in wealth demolished and incinerated, the big case was finally brought to serve as a symbol that "someone on Wall Street was gonna pay." Two government appendages, Goldman and the Commission, faced off in conference rooms and before the cameras on Capitol Hill. After months of wrangling, they came to an agreement that allows shareholders and regulators alike to carry on business as usual and hold their heads up high.

Remember kids, crime never pays, but institutional influence and deep pockets can absolve you of anything.

ALSO -

Financial Reform Bill

Like health-care reform, this bill is being drawn up to grab headlines but its details betray it as nothing more than a slap on the wrist for Wall Street. It is true that Wall Street can commit grand theft and apparently get off with nothing more than community service.

All from PHILSTOCKWORLD

$832 Billion saved 3 million jobs - Emmmm

2010-07-16T03:21:00.000+09:00

According to the White House - The $862 billion stimulus bill created or saved 2.5 million to 3.6 million new jobs since it passed last year.

Read more:nydailynews

Well if I take 862 billion and divide it by 3 million = $287,333.33 per individual

There are about 308 million people in the USA - which comes to $2798.70 per individual.

25% of the population is below 19 years old.

Therefore, if we pay everyone 19 years and older the sum would have been $3731.60.

Government at work. There is a reason Godfather Goldman makes BILLIONS and the GOVERNMENT can not make a $1 profit.

SEC and more BullShat

2010-07-15T15:30:00.001+09:00

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission said it's Enforcement Division plans to make a "significant announcement" later on Thursday. Goldman Sachs Group shares rallied more than 3% after the statement. It's not clear what the SEC might say, however, the Wall Street Journal reported earlier on Thursday that Goldman suggested a broad settlement with the SEC that would cover a lawsuit the regulator filed against the investment bank in April and other mortgage-related probes. The SEC and Goldman declined to comment on that report.

Check out this latest surge at 3:30 PM - this has been on-going for some time. I bet you a $1 computer trading is behind it. CROOKS continues to run the market.

BaDaDing KaFlop -> No Customers Duh

2010-07-14T09:09:00.001+09:00

Damn I'm so tired of computer trading... no fundamentals apply.

SLOT MACHINE ANONYMOUS Inc.

July 14 (Bloomberg) -- Sales at U.S. retailers fell in June for a second month, indicating the pace of economic recovery moderated heading into the second half of 2010.

Purchases decreased a more-than-projected 0.5 percent following a 1.1 percent May drop, Commerce Department figures showed today in Washington. Excluding auto dealers, demand fell 0.1 percent, matching the median forecast of economists surveyed by Bloomberg News.

Target Corp. and Gap Inc. were among retailers whose sales trailed forecasts, signaling a lack of jobs and a loss of wealth are restraining spending, the biggest part of the economy. The financial turmoil caused by the European debt crisis and cooling inflation led the Federal Reserve last month to renew a pledge to hold interest rates near zero.

“The consumer soft patch is not as pronounced as we thought a month or two ago,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Consumers are still a bit concerned. A lot of the angst is because stocks went into negative territory.”

Prices of goods imported into the U.S. fell in June by the most since January 2009, led by declines in costs of oil, business equipment and consumer goods, a report from the Labor Department also showed today. The 1.3 percent drop in the import price index was more than projected and followed a revised 0.5 percent decline in May.

The only ones with money are Wall Street and Government workers it seems.

MBA Purchase Applications

In yet another negative indication for the post-stimulus housing market, the Mortgage Bankers Association's purchase index fell 3.1 percent in the July 9 week signaling yet another decline for mortgage applications. The index is at a 14 year low. Applications for refinancing, which have been very high due to low interest rates, slipped back 2.9 percent. Refinancing made up 79 percent of all applications in the week. Thirty-year mortgages edged higher to 4.69 percent, still near a record low.

Market foul or CROOKS

2010-07-13T09:05:00.000+09:00

Alcoa - Thomson Reuters consensus estimate 90-days ago was $0.23 rather than the $0.12 consensus that we had today ahead of its earnings.

Read more: Alcoa Clears A Very Low Bar - 24/7 Wall St.

Did anyone mention the gain was due to lower natural gas prices?

Did anyone mention retail sales? - no change from a year ago!

Redbook reports steady retail conditions in the July 10 week, at a plus 3.1 percent same-store year-on-year pace. The rate is unchanged from the prior week and compares with a plus 3.0 percent year-on-year average over the last four weeks. Retailers are in clearance mode, cutting prices of summer goods and helped in the week by hot weather. The early indication for the month-on-month comparison with June is negative, at minus 0.4 percent. Yet financial markets aren't thinking about July, instead June is the focus ahead of tomorrow's monthly retail sales report from the Commerce Department.

REDBOOK

The BullShat Rally of Crap continues

2010-07-07T16:04:00.001+09:00

Media (Bloomberg) stated market up due to upbeat retail.... huh?

American retail sales bolstered optimism in the earnings season and investors speculated European banks will pass stress tests.

The RedBook Report last month:

Highlights
Redbook reports a steady and moderate pace for store sales in the May 28 week. Year-on-year same-store sales extend a five-week trend at plus 2.5 percent. The report sees no change for month-on-month sales, sales held back by a calendar shift for Memorial Day which pushed sales into this month.

and this month;

Highlights
Redbook says hot weather in the July 3 week spurred demand for summer merchandise and drove shoppers into air-conditioned malls. Year-on-year, same-store sales in the period rose 3.1 percent for a six tenths gain from the prior week's pace. But month-on-month, sales are down 0.5 percent in a result that points to trouble for the ex-auto ex-gas category of the June retail sales report.

HH: Folks this is nothing but a Goldman burn the shorts day - who knows which way the retards of Wall Street will tilt the slot machine in the next few days.

Shiver-Me Timbers - TOLD YA

2010-06-29T07:21:00.000+09:00

Did you buy TZA?

What is next? Invest in NOTHING!

The Bloomberg BullSh*t Sale

2010-06-24T20:26:00.003+09:00

Jobless claims thankfully fell back in the June 19 week, down 19,000 to 457,000. But taking some of the shine off the numbers is a 4,000 upward revision to the prior week. Like the latest week, the four-week average also fell, though only by a very slight 1,500 to a 462,750 level that is still 5,000 higher than mid-May -- a reading that does not point to improvement for the June employment report.

Clearly good news is a 45,000 decline in continuing claims to 4.548 million. Here the four-week average is modestly lower than mid-May, at 4.667 million in a reading that points to improvement for June payrolls. The unemployment rate for insured workers, which has been see-sawing, slipped back one tenth to 3.5 percent.

The dumb only gets dumber at BolaBolaBerg News (bolabola is Tagalog slang for Bull sh*t).

Afrer many months of reporting good things are coming there is ONE RULE on Wall Street - the CONSUMER RULES ALL!

FROM SeekingAlpha Blog:

Retail stocks are getting destroyed this week as market participants come around to the fact that the U.S. consumer hasn’t fully recovered from the Great Recession. Since its April peak the Retail Holders Index (RTH) has been crushed -15%. Market pundits are furiously downgrading retail names and talking about “persistent weakness” in the U.S. consumer. That was not the case just two months ago when just about everyone was convinced that the consumer was back and healthy as ever.

No jobs No houses No customers = DOOM

2010-06-23T10:23:00.000+09:00

First there was cash for clunkers which pulled vehicle sales dramatically forward. Then there was first-round housing stimulus late last that pulled sales out of the early part of this year, followed by second-round stimulus which, yes, pulled sales out of May! And how! New home sales plunged 33 percent in May to an annual rate of 300,000, the lowest rate on the books in data going back to 1963. Making matters worse are very deep downward revisions to the stimulus-fed months of April and March, revisions totaling 108,000.

The bad news continues. Supply on the market surged to 8.5 months from April's 5.8 months, which is certain to slow construction and related jobs. Heavy supply will also hurt prices which fell 1.0 percent to a median $200,900. Year-on-year there's no recovery for prices, down a median 9.6 percent.

Supply may be heavy but the actual number of new homes on the market, at an adjusted 213,000, is the lowest since 1970, more evidence of how deeply the residential construction sector has fallen. The recent run of weekly mortgage application data, the latest this morning, point to more trouble in June.

Warning: The Lake Wobegon Effect

2010-06-22T08:24:00.001+09:00

Warning: The Lake Wobegon Effect is the single best summary of today's stock market psychology, high-frequency trading, behavioral economics theories and the new science of irrationality ... and it's sucking the life out of America's soul. Here, listen to more of these arrogant musings surfacing everywhere from deep in our collective brains:

All Wall Street bankers are worth 100 times any Main Street investor
All Corporate American CEOs deserve to make 400 times their workers
All children of all Forbes 400 billionaires deserve to inherit tax-free
All lobbyists deserve millions when winning billions for special interests
All taxpayers should pay for catastrophic mistakes of Wall Street Fat Cats
All rich hedge fund managers deserve to be taxed at capital gains rates
All senators deserve to become millionaire lobbyists when they retire
And Goldman Sachs CEO Lloyd Blankfein deserves a $100 million bonus

This is America's collective brain buzzing along at hyperspeed. This is the toxic irrationality driving America in the 21st Century ... and it really is destroying our soul from within. Seriously, look outside the isolation bubble you live in. Ask why so many other American brains are on autopilot, guided by what Yale psychologist Dr. Paul Bloom humorously calls the Lake Wobegon Effect in his New York Times review of "The Invisible Gorilla" by psychologists Christopher Chabris and Daniel Simon:

READ the rest at MarketWatch

SAD STATE OF AFFAIRS we are in :(

A true story about IRAQ from a solider

2010-06-22T01:43:00.000+09:00

Having spent a few years of my life in Iraq this soldier reflects some of my own thoughts on the STUPID BUSH WAR! My hearts go out to the soldiers that were sent to fight a stupid cause and to the Iraqi people that had to deal with Bush idealism - "Removing Saddam Hussein was the right decision early in my presidency, it is the right decision now, and it will be the right decision ever." — Washington, D.C., March 12, 2008[13]

George W. Bush - an American embarrassment that humiliated the world!

SELL ur LONGS its DOOMSDAY TIME

2010-06-21T10:49:00.001+09:00

For once in my life I finally agree 100% with Mr Tice of the BEARX fund.

BUY TZA

Relax, it's just a depression - the market keeps going UP

2010-06-17T08:48:00.000+09:00

The number of Americans seeking jobless benefits last week unexpectedly rose to a one-month high, indicating firings are staying elevated even as the U.S. economy grows.

Initial jobless claims increased by 12,000 to 472,000 in the week ended June 12, Labor Department figures showed today in Washington. Economists surveyed by Bloomberg News projected 450,000 claims, according to the median forecast. The number of people receiving unemployment insurance rose, while those getting extended benefits dropped.

Some companies are trimming payrolls to boost or maintain profits at the same time overall employment has grown each month this year. The figures show that bigger job gains needed to spur consumer spending, which accounts for 70 percent of the economy, may be slow in developing, keeping the unemployment rate close to 10 percent.

“The labor market is not improving,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. “If you really are going to have a sustainable recovery, you need the labor market to improve.”

Dr Doom will be right soon

2010-06-16T09:54:00.000+09:00

All you have to do is read AND observe to find out the state of our economy. You do not need Ben to tell you anything.

FACT: DOW was 14,200 Oct. 2007, today is 10,300, thus losing roughly
$ 6-7 Trillion in equity.

FACT: Housing has lost $ 3-5 Trillion in equity PLUS all the bad data that you have listed, PLUS the 6-7 million Americans that are +30 days late on their mortgages, you already listed the foreclosures.

FACT: To compensate for this, CNN Money ran this article. You can see PLAINLY what Ben at the FED (thru monetization of money) and the US Congress (thru multiple Legislative Stimulus programs) have achieved. Nearly $ 5 Trillion has been pumped into the economy!

http://money.cnn.com/news/specials/storysupplement/stimulus-tracker/index.html

This has lead Bill Gross, CEO of PIMCO to write this article for www.SeekingAlpha.com

http://www.businessinsider.com/henry-blodget-bill-gross-assets-are-15-trillion-overvalued-and-fed-will-keep-rates-at-0-forever-to-keep-the-fantasy-alive-2009-10

That's right. WE ARE OVERVALUED as a Nation. This is something NO ONE can manipulate or undue or change. That's right. The article says ALL equities should be 50 cents on the dollar!

I only PRAY it indeed is ONLY 50 cents on the dollar!

That is why I am preachin' go into CASH. All assets, even Gold, just like in the Great Depression, deflated in value. Did you notice 2 days ago Market Watch published article that Bill Gross is buying up US Treasuries?? He was LOATH to do this until recently. Nothing mentioned about buying Gold!!

FACT: Personal Public debt, not to be confused with the 50 states accumulative debt of $187 billion for the 2009-2010 Fiscal Year, is $ 2.46 Trillion. This is Credit and Store Cards ONLY. Not housing.

Wall St getting ready for a major DUMP?

2010-06-15T10:44:00.000+09:00

Why would Goldman and Crew Wall Street allow the market to get so high? I'm betting they will be shorting it soon. I just keep building my short position little by little.

The fundamentals have NOT returned to the market - - - from Bloomberg

The homebuilders' housing market index fell back a steep five points in June to 17 from a recovery peak of 22 of May. The biggest decline came in current single-family sales, down six points to 17 and pointing at trouble for May's existing home sales report to be released next week in what will be a key report that will offer the most important look yet at the post-stimulus market.

Future indications in today's report were slightly less negative than current sales. Purchases six months out fell four points to 23 while traffic fell two points to 14. Overall declines were posted across regions.

Consumer sentiment - what the heck is it?

2010-06-14T07:07:00.001+09:00

YES, it REALLY is STUPID - similar to my grammar.

According to Bloomberg:

Definition:

The University of Michigan's Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy. Consumer sentiment is directly related to the strength of consumer spending. Consumer confidence and consumer sentiment are two ways of talking about consumer attitudes. Among economic reports, consumer sentiment refers to the Michigan survey while consumer confidence refers to The Conference Board's survey.

The Surveys of Consumers have been conducted by the Survey Research Center at the University of Michigan since 1946. It consists of consumer attitudes – survey results are released twice each month at 10.00am Eastern Time: preliminary estimates usually on the second Friday of each month, and final results on the fourth Friday.

500 American household surveyed and the result is this:

“Investors have been concerned about a double-dip recession in the U.S. later this year,” said Tomochika Kitaoka, a senior strategist at Mizuho Securities Co. in Tokyo. “The report on consumer sentiment showed it is less likely to be the case as the economy continues to recover.”

500 people move TRILLION dollars markets?

Who regulates these people and how they gather/report this data?

Could it be similar to Goldman gathering sensitive financial data (US Government contract to assist the FED) - however not reporting its findings to the Goldman corporate office to position themselves on the market?

I'm not sure but nothing about GREED will surprise me!

READ THE REPORT HERE:

It is simply amazing what they can get away with

2010-06-11T10:13:00.000+09:00

Doesn't this man look like a gangster to you?

Vincenzo Corliane

The Corliane brothers had been looking for a new member to the family for some time - I think they have a new address at the FED working as investment advisors.

RETAIL SALES continue to SUCK along with unemployment - however the FED, Goldman, and CREW are hard at work again flipping investors off going against fundamentals. Oh the consumer sentiment is higher than expected.

HOLLY SMOKES - does anyone know how this data is organized?

Definition

The University of Michigan's Consumer Survey Center questions 500 households each month on their financial conditions and attitudes about the economy.

Dumb n Dumber - S&P up 2.5%

2010-06-10T11:17:00.002+09:00

Yes Charlie Brown the INSANITY continues - even MARKETWATCH has its head up its Bung-hole!!!

By Kristina Peterson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks surged Thursday after U.S. jobs data brightened modestly, adding to optimism over the prospects for economic growth in Europe and China. The market was buoyed early as data showed the U.S. labor market firming a bit. HUH? What the hell is she talking about?

Pointing to a stabilizing jobs market, the Labor Department said Thursday that initial claims for jobless benefits fell by 3,000 to 456,000 the week ended June 5. However, the previous week's level was revised upward, to 459,000 from 453,000. Total claims lasting more than one week, meanwhile, fell to their lowest level since Dec. 13, 2008. Economists surveyed by MarketWatch had expected initial claims to come in at 445,000 for the week ended June 5.

FOLKS this is out right STUPIDITY - and the worst TRADE GAP in a long time, Things are not looking very well - but of course Goldman and Crew are buying today... but will they sell off the last 30mins? I have no damn idea but I doubt it - but I do expect tomorrow will be a BIG RED DAY!

How Goldman keeps making money

2010-06-10T04:14:00.002+09:00

Goldman Sachs created and sold the Hudson CDO in late 2006. The Hudson Mezzanine 2006-1 CDO contained credit default swaps that referenced $2 billion in subprime, BBB-rated residential mortgage-backed securities.

Goldman Sachs selected the assets in the deal, the firm was also the only investor buying credit protection on the entire transaction.... would you believe by AIG? Remember who told the FED they should bail out AIG - emmmm was it GOLDMAN? Duh!

According to the U.S. Senate’s Permanent Subcommittee on Investigations, led by Levin... Goldman Sachs was short on the Hudson Mezzanine CDO, meaning it stood to gain from a collapse because of the credit protection it had purchased, a marketing document for the deal released by Levin’s committee states that “Goldman Sachs has aligned incentives with the Hudson program.”

So Goldman shorted the Hudson CDO and also had AIG cover any loses of the Hudson CDO... so thats like me going to Vegas - knowing I'm going to lose money and find some dumbass insurance salseman to insure me for any losses... all the while I BEG MY FAMILY to invest in me on my trip to Vegas!

The whole story in Bloomberg:

Inflation coming - why?

2010-06-10T01:34:00.001+09:00

Cheap labor markets are getting harder to find -

Chinese Workers have been emboldened by a law introduced in January 2008 aimed at strengthening their contractual rights. The global economic downturn kept wages down and increased workers’ grievances. Now, wages in Guangdong have started growing again. This month the province raised minimum wage levels by more than 20%.

Honda -

A strike crippled Honda’s car production in late May was relatively discreet: no picketing, no clashes with police, little sign of copycat action. But it was significant. The stoppage was one of the biggest and longest-running in an enterprise with foreign investors.

Monday, another Honda parts factory in China has stopped production after many of its workers went on strike, just days after the Japanese automaker agreed to raise salaries for Chinese employees who walked out at another Honda factory.

Apple -

Apple is investigating claims of poor working conditions at a Chinese iPod factory, the company said Friday, vowing not to tolerate any labor violations. The company was responding to a report by a British newspaper, the Mail on Sunday, that alleged workers at an unnamed iPod factory were paid as little as $50 to work 15-hour shifts making the devices.

Wired

Goldman and Ben Bernanke's real world

2010-06-09T17:02:00.001+09:00

The stark reality of "wage slavery" is that the owners of the means of production (capitalists) are now taking the jobs of American workers to chattel labor nations such as China, Mexico, and many others. The owners want to pay even less for labor than they now are and they want cheaper production costs as well. They don't care if the workers in these other countries are in literal bondage to their overseers, as in Asian sweatshops. And they certainly don't have any concern if American workers become destitute and homeless.

Taxpayer money bails them out

Workers are dumped!

Banks aren'tallowed to fail

Corporate crime is encouraged

Taxpayers are forced to support capitalists

Taxpayers drown

FROM: another blog

Goofy speaks the truth

2010-06-08T09:46:00.000+09:00

"Trust me there is no housing problem" - July 07 Uncle Ben said!

Wall Street was poised for a higher open on Tuesday after Federal Reserve Chairman Ben Bernanke said the US economy appeared to have enough momentum to avoid a double-dip recession. Bernanke, in comments at the Woodrow Wilson Center in Washington.

HH: YEAH, WHATEVER - just like the rest of the idiots in WASHINGTON and WALLSTREET!

Why the big jump in the market?

2010-06-04T09:26:00.001+09:00

It is simple Goldman math - they (GOLDMAN) are on a Government contract to provide the numbers to the Government for Government reports. Two days ago Goldman came out with a public release telling their customers the job data will be good - HA! Goldman and crew are shorting on the upswings. You think Goldman is going to make their investment public... boy do I have a deal for you! I have an oil well in the Gulf that pumps plus 5,000 a barrel a day for sale - it is a STEAL!

THIS ECONOMY STINKS FOLKS!!! Drive the dollar to the ground to pump up factory orders -but what happens if the dollar goes up - Oops we don't want to talk about that!

Where is the SEC?

2010-06-03T10:25:00.002+09:00

J.P. Morgan hit with record fine for putting client funds at risk

Firm's U.K. arm failed to properly segregate up to $23 billion of customer money

Too bad our SEC can't do a damn thing right to fight these guys and Goldman.

Another 450K jobs POOOF and the market does NOT CARE!

Yesterdays BONEHEAD JUMP was simply GOLDMAN n CREW playing with $$$. Boys and their toys with no MOM or DAD to keep them in check!

Durable goods up - yet right - read the small print

2010-05-26T08:41:00.003+09:00

Highlights

The April durables report lived up to its reputation as a volatile series but this it was not just in the new numbers but in revisions. Net, durables are still notably healthy. New factory orders for durable goods in April surged 2.9 percent after a revised no change the month before. The headline number topped analysts' projection for a 1.5 percent comeback.

Excluding the transportation component, new durables orders slipped 1.0 percent after a 4.8 percent spike in March. The jump in the headline number was led by huge 16.1 percent boost in the transportation component, following a 13.1 percent fall in March. The swing was largely in civilian aircraft.

Foreign airlines were foreseeing the dollar gaining so therefore the main orders jumped - Duh! Do you think the Government stepped in and purchased more aircraft parts - you bet cha! Who do you think complies the data for Uncle Sam under contract... would it be none other than GOLDMAN SACHS? Emmmm, I wonder how many contracts they have with the FED. But wouldn't that be a conflict of interest - a bank that trades in derivatives that has inside FED data? - - HA no way HOMER - Bart Simpson would never let that happen!!!

Joke of the day -

2010-05-25T23:13:00.001+09:00

Uncle Gold Bunny (Goldman Sachs)

at work in the background?

“It was a technical rebound,” said James Paulsen, who helps oversee about $375 billion as chief investment strategist at Wells Capital Management in Minneapolis. “The stock market was oversold. We’ve breached so many levels so quickly. The economic recovery is still in place.”

Well, to this old fart it seems looking at yesterdays data the banks were up to their old tricks again buying their own stocks pushing up the market in general. If the FED would give me a few BILLION with less than 1% interest I think I could move the markets if I collaborated with my peers.

Market down - SURPRISE SURPRISE - NOT for me!

2010-05-25T06:24:00.001+09:00

A combination of Korean tensions, Spanish bank health worries and inter-bank lending woes slammed U.S. stock futures on Tuesday as markets looked for set for a second day of heavy losses.

SURPRISE SURPRISE - NOT for me!

But what is a surprise is markets are falling like GW Bush in a presentation WITHOUT panic! Folks I been saying for over a year something AINT JUST RIGHT!!! OF course GOLDMAN and CREW will come out soon with another ROB THE TAXPAYER plan to save the world.

Two people I never listen to until today:

George Soros echoed a "game over" warning with a "stark warning ... that the financial world is on the wrong track and that we may be hurtling towards an even bigger boom and bust than in the credit crisis."
Now Dow Theory's Richard Russell is warning the public of an imminent crash: "Sell ... get liquid ... by the end of this year they won't recognize the country."

Ahhh fundamentals are returning to the markets

2010-05-20T14:03:00.001+09:00

The S&P 500 is continuing its fall from a 19-month high on April 23 to a drop of more than 10%, a level typically considered a correction. The index has trimmed its rise from its March 2009 bottom to nearly 62%.

Folks, I simply do not believe this is a simple correction. As I have been blogging here for sometime now that this market has been driven only by paperless money... courtesy of the FED, Goldman and crew.

When you have +400,000 people losing their jobs every week for YEARS something is WRONG! Peter can't rob from Paul anymore because Paul is BROKE!!!

Why NOT BAN naked shorts PERMANENTLY

2010-05-18T22:30:00.003+09:00

ABOUT DAMN TIME!!!

Germany’s BaFin financial-services regulator said it will introduce a temporary ban on naked short selling and naked credit-default swaps of euro-area government bonds starting at midnight. The ban will also apply to naked short selling in shares of 10 banks and insurers that will last until March 31, 2011, BaFin said today in an e-mailed statement.

It's about time to stick it to the CRAP-HEADS of Wall St. but our politicians are worried about where they will get their money to promise us more lies in the future. At least someone learned from one of our mistakes.

CONGRATS GERMANY!!!

However, many Governments have attempted to subvert the market via regulations, decrees, laws and printing money. They have lost every time. Weimar Germany? Argentina and Brazil in the 70's and 80's? USSR? Red China? Pol Pot's Cambodia? Cuba? Chavez' Venezuela? Point me out to one game the government played and came out winning when the buzzer sounded.

Jim rogers speaks about this 14 mins into the clip.

One of the largest problems of the USA

2010-05-12T01:39:00.003+09:00

WHY is this allowed?

May 12 (Bloomberg) -- Four of the largest U.S. banks, including Citigroup Inc., racked up perfect quarters in their trading businesses between January and March, underscoring how government support and less competition is fueling Wall Street’s revival. Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs Group Inc., the first, second and fifth-biggest U.S. banks by assets, all said in regulatory filings that they had zero days of trading losses in the first quarter. Citigroup Inc., the third-largest, doesn’t break out its daily trading revenue by quarter. It recorded a profit on each trading day, two people with knowledge of the results said. “The trading profits of the Street is just another way of measuring the subsidy the Fed is giving to the banks,” said Christopher Whalen, managing director of Torrance, California- based Institutional Risk Analytics. “It’s a transfer from savers to banks.”

The trading results, which helped the banks report higher quarterly profit than analysts estimated even as unemployment stagnated at a 27-year high, came with a big assist from the Federal Reserve. The U.S. central bank helped lenders by holding short-term borrowing costs near zero, giving them a chance to profit by carrying even 10-year government notes that yielded an average of 3.70 percent last quarter.

Gee Wally

2010-05-11T07:04:00.001+09:00

Leave it to the Beaver to find out what is going on here.

Seems it was Washington, DC that suggested the European bailout and that the President (Bush III - who is for change - NOT) has Goldman n Crew to support him as they did Baby Bush... the world will be doomed.

One can NOT short this market which is ran managed by Goldfingers and support of crum-bugs from DC.

Thought to ponder

2010-05-10T23:49:00.000+09:00

To think this mess started because Greece was having problem making a $9B debt payment.

What is the ~$1 Trillion for?

Folks there is more trouble down the road!!

Calling a Fake Punt

2010-05-10T06:20:00.001+09:00

May 10 (Bloomberg) -- European stocks rallied after policy makers unveiled an unprecedented loan fund worth almost $1 trillion and a program of bond purchases to stop the sovereign- debt crisis. Asian shares and U.S. index futures soared.

Under the loan package, euro-area governments pledged 440 billion euros in loans or guarantees, with 60 billion euros more in loans from the EU’s budget and as much as 250 billion euros from the International Monetary Fund.

Hell, thats sounds great - but where are they "really" going to get the money - it's only a pledge? (time will tell)

from the econotwist blog

Bringing In 007?

As some commentators and financial bloggers already have pointed out; this is now getting ridiculous!

All the political leaders are doing is adding more uncertainty to the market.

How can they expect investors to follow the rules when they don’t know what they are?

Unfortunately, these panic reactions are nothing new in the history of economic crisis.

Heard about “The South Sea Bubble”?

The South Sea Company was a British joint stock company that traded in South Americaduring the 18th century. Founded in 1711, the company was granted a monopoly to trade inSpain‘s South American colonies as part of a treaty during the War of Spanish Succession. In return, the company assumed the national debt England had incurred during the war.Speculation in the company’s stock led to a great economic bubble known as the “South Sea Bubble” in 1720, which caused financial ruin for many.

In spite of this it was restructured and continued to operate for more than a century after the Bubble.

At the top of the crisis a resolution was proposed in the British parliament that bankers should be tied up in sacks filled with snakes and tipped into the murky Thames.

Sir Isac Newton was one of the “speculators” who lost all his money in the South Sea Bubble.

“I can calculate the movement of the stars, but not the madness of men,” he said.

My name is Bond; Junk Bond…

Goldman commits FRAUD - really?

2010-04-16T09:44:00.000+09:00

The SEC charged Goldman Sachs and one of its vice presidents, Fabrice Tourre, with defrauding investors by omitting key facts in its structuring and marketing of a collateralized debt obligation known as ABACUS 2007-AC1 that was tied to the performance of subprime residential mortgage-backed securities.

According to the SEC release, "Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO."

HH:
Like that is a surprise - Gezzz!

Oh and housing starts are up - WHY?

The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
The tax credit applies only to homes priced at $800,000 or less.
The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

Another 480,000 people out of work

2010-04-15T09:12:00.000+09:00

Claims continue to pile up due to special administrative factors. Initial jobless claims jumped for a second week, up 24,000 in the April 10 week to 484,000.

Have no fear - GOLDMAN SUKS n Crew will save the day once more.

Factories are gearing up in all regions they say... but the jobs are going away. Sooner or later Peter has to pay Paul.