WHAT’S UP? – Let’s take a day off from bashing, thrashing and smashing politics & economics. Looking at the lighter side – Swine Flu kisses; Obama and bankers; Obama changes middle name; Late night  comedians on politics; and how I created the Iraq war.

Is Swine Flu transmitted by Oinkers? 

No – So kids, find a pig & lick, lick, lick 

Barack Obama in a private meeting with bankers – “my administration is the only thing standing between you and pitch forks.” (Fortune magazine pg.64)

The Co – Star of the New Star Trek Movie

A&E

Salon composite/AP Photo

Barak “Spock” Obama

———

From Late Night TV – About the replacement of a new Supreme Court Justice. (from About.com:Political Humor)

“A vacancy on the Supreme Court. This is something we haven’t seen in a while. Let’s just hope the president is better at picking a justice than the justices were at picking a president.” –Jay Leno

“They say President Obama will most likely pick a woman. And I think that’s probably true, because today, Clarence Thomas was seen renting porn.” –Bill Maher

“Barack Obama may choose Hillary Clinton as Souter’s replacement. So the big question now is, well, can she make the transition from pantsuits to robes.” –David Letterman

——— 

Just ask my kids and Grandchildren – Everything I say is absolutely true.

The one time I ran into Cheney and Bush was in the 2000 campaign.  They were planning Iraq war. Bush turned to me and said,  ”We plan to kill millions of Muslim’s and one sculptor.” Being a sculptor I asked why kill a sculptor? Cheney turned to Bush and said,  ”See I told you liberals wouldn’t care about the Muslims.”

———

STOCKS

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING

Index Percentage % Volume
Dow -1.20% up
NASDQ -2.44% up
S&P500 -1.32% up
Russell2000 -2.41% -

-

Technicals & Fundamentals

Major markets retreated in huge volume. What Wall Street calls a “distribution” day. A significant loss in increased above average volume. = Bear’s dance.

XLF - The ETF that tracks financials (mostly shadow banks ) fell -2.88% in increased, above average volume.

Monthly Jobs Report – (breaking news 8;30 EST) -539,000 jobs is bad but below expectations. Rate now up to -8.9%. from 8.5%. Last month revised down a bit. (699,000 to 663,000)

Best spin – third month in a row job loss declined and smallest loss since Oct.. Better than expected news good for stocks

Stress Test

The big news is the announcement of the ”Stress Test” on 19 biggest Shadow Banks. You can read about some analysis here (NYT) & here (Tim Geithner) here.(Simon Johnson)  Obviously, I’d pick Simon Johnson’s to read.

What’s good is bad - The stress test basically mandates that banks have a certain amount of capital on hand. This is good because it keeps them from being over leveraged. However, as banks raise the capital to meet this quasi mandate they will have a difficult time loaning out $ because loans are liabilities.

10 of the 19 big Shadow banks were found to be a total of $75 billion short. Why it’s easy to be skeptical of this number is the introduction of “mark to market” accounting and the fact that when relatively smaller Lehman Brothers went belly up they had @ $400 billion in over leveraged debt.

Bottom Line – Wall Street investors have accepted these numbers and bullish for stocks.

——–

Repeat - All  Investor 411 positions (except GLD) are outperforming the benchmark S&P 500 by a wide margin. See Positions.

RepeatThe $64 Trillion dollar question - We have rapidly created an incredibly massive subsidy system for America’s Shadow Institutions – How do we disconnect from these wealthy welfare recipients?


Long Term Outlook = NEUTRAL

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING !

  • Share/Save/Bookmark