OWS Chant
“Banks Got Bailed Out
We Got Sold Out”
Cartoonist – Horsey (Thanks to Paul for heads up on this cartoon)
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“Wall Street Aristocracy Got
$1.2 Trillion in Secret Loans”
To keep us from plunging into depression in 2008 – the too big to fail “aristocracy” got a whole lot more $$$$ than we thought. – Bloomberg News – 8/11
Here’s the list of the Fed’s Secret lifelines (near 0% loans) to the Shadow Banks. Bloomberg LINK bigger chart and lots more data
How Much Profit did the Shadows make from
a $1,200,000,000,000 ($1.2 Trillion) Loan???
Who knows?
The too big to fail shadows don’ t even have to have mark to market accounting.
We do know they went out and bought more financial WMD’s or derivatives. The size of this market has reached - $707,568,901,000,000 (this includes $107 trillion in the last 6 months – will bet a lot of these derivities had something to do with Europe)
Growth/profits in the bubble building derivatives market increased almost 18% in the last 6 months Source & Source & Source
“We Got Sold Out”
An Alternative Solution
From Ed Yardeni – Money Magazine.
We have an inventory of @ 3.5 million unsold homes – This negatively impacts the housing price of all of our houses.
“The government could fill 2 million homes by matching the down payment, up to $20,000, for people who aren’t already home owners. A million more buyers could collect rental income tax free for 10 years… cost at most 40 billion”
Sure there are problems, but it does take massive pressure on housing. What’s $40 billion compared to whatever the opaque nominal value of $707,568,901,000,000 is?
- Norquist & Company are not going to let the aristocracy finace this
- Jealousy over exactly who exactly gets the means based homeowner loan
- It does nothing to fix the opaque WMD financial derivatives market.
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Yankee Bob’s
Part 2
Continued from Sunday night
There are several ways the system aids financial white collar crime.
- Congress may pass laws to win their reelections but they can be toothless.
- A commission to regulate say, speculative futures trading to prevent price manipulation in basic commodities may be in place but if the commission refuses to act or parses the meaning of speculation in a way that is friendly to the speculators,…then the speculators are free to game the prices. Not really hypothetical is it?
- Another way to defang regulations is to simply not fund the enforcement by the various organs. Hence the call of all the GOP candidates to defund or cut back the EPA because who needs clean air or clean water ? Regulations cost corporations money, that’s true. But who honestly believes that the corporations can or will self regulate in the public’s interest?
Well, the GOP does. Pawlenty was outraged when that bridge in Minneapolis collapsed. Oh, months before he had cut funding to the bridge inspectors so the inspection that could have prevented it was delayed..and the bridge fell down before it was inspected.
Even when the government has regulatory powers,corporations thru lobbyists, fight to cut funding for enforcement or to put corporate friendly regulators in place. They barrage the media with advertising money.
How many stories get killed or shoved to minor space because of fear of alienating the sponsor?
We probably graduate more communications majors then social science majors. Who is there to employ them but the corporate interests? There are armies of communication majors out there working overtime to make sure that the interests of the corporations has a stronger voice then the truth.
They shape the future by distorting the truth.
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STOCKS
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The Stock Market Skater STILL on European Thin Ice
US Equities went nowhere in Friday’s shortened trading session.
Since I am not on the speed dial of our Fed, Europe’s Central Bank, Germany’s Financial minister or China’s President, I have no idea of what’s going on with the manipulators of European stocks, bonds and debts.
All the above entities have reason socialize the risk. Major, too big to fail, shadow banks have for years been reaping the gains.
Some rumor or fact has sent European markets soaring. Not hard to do with an oversold market. The rumors/facts have always turned out to be just rumors or inconsequential to the actual debt. Here’s some links on what’s happening this AM – CNBC , Reuters
Germany’s DAX today up +3.14% at 6:00 AM EST
DAX up +3.63% at 8:30 AM
So expect US stocks to follow. – Huge rally at open
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Reading The Tea Leaves
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Our #1 technical forecasting tool, the McCellan Oscillator rose to -98.43. 50DMA at +10.97 = Bullish
While we did see a record -140 on the MO in August, a -98 with the 50 DMA at +11 means the market is very ripe, technically, as it was on Friday.
Same Bottom Line - News from Europe can and will trump the technically bullish oversold US market. A -98 says, technically, the slightest bit of perceived good news can have a major positive impact on stocks.
From Friday AM – Traders – Few are going to be willing to hold stocks over weekend on fear of more bad news. However another Dow 200+ point fall puts us in OMG oversold territory. You need a lot of guts, no financial earthquake in Europe & a better than expected black Friday would help, but you could see a rally Monday AM.
On a short term basis – Because of the rally in Europe –
It sure looks like the predicted oversold Monday rally is about to happen.
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Positions
Hopefully Longer term positions.
Tomorrow in Paul’s Corner
YOUR Stock List #4
EUO (double short the Euro currency) 1/2 position Bought at 18.60 Friday, EUO closed yesterday at 18.72
Trades/Investments Under consideration-
- APPL (long) AMZN (short) hedge trade.
- Any trade that shorts the market on a rally.
- Focus sector to short – financials
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Longer Term Outlook
3+ months
Investors411 has recently downgraded the outlook to CAUTIOUSLY BEARISH – We, therefore, are on the cusp of change and it may take a week or so to see if the downgrade holds.
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CAUTIOUSLY BEARISH
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Investors411 has 5 different valuations - BULLISH, CAUTIOUSLY BULLISH, NEUTRAL, CAUTIOUSLY BEARISH, and BEARISH.
Everything written in BROWN is a repeat from a previous day(s)
AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING
ALL TRADING INVOLVES RISK AND POTENTIAL LOSS OF PRINCIPLE
CHECK ALL DATA, I MAKE MORE THAN GRAMER ERRORS.
