Vampire Squid/Goldman Sachs

It’s election day across America. The people will VOTE. But there are many of us that will argue that the winner will not be red or blue, but “Puke Green”.  One such author is the Rolling Stone’s Matt Taibbi who has likened Wall Street Shadow bank Goldman Sachs to “a great vampire squid wrapped around the face of humanity.”

What has GS done to deserve such a title? They have been there every step of the way as we deregulated the financial industry .

  • It started with GS CEO Robert Rubin, Clinton’s Treasury Secretary, whose protegee was Larry (Darth Vader) Summers that helped deregulate the rules governing financials.
  • It was another GS CEO Henry Paulson who bailed out the too big to fail shadow banks (a necessary evil
  • It was Larry Summers, Tim Geithner who many believe are in the pocket of the Too Big To Fail investment banks (GS is obviously one of these). They fought agains Democrats that tried to make  substantives reform like reinstating Volker rule and ending too big to fail.
  • Of course, the entire Republican Party is kissing cousins with the Vampire Squid.”

The Vampire Squid is even growing because hidden corporate cash is now shaping the very fabric of our democracy.

In short Taibbi points out that America has become a paradise for high class theives and congress their willing lapdogs who’ve hijacked the American workers into backing policies that favor the rich. He identifies the godmother of the “grifter class” as Ayn Rand and her chief disciple Alan Greenspan.

You can read a lot more about the Vampire Squid and others stuck on your face, the American media, lobbyists and most politicans in GriftopeiaTaibbi’s new book.

“The financial crisis that exploded in 2008 isn’t past but prologue. The stunning rise, fall, and rescue of Wall Street in the bubble-and-bailout era was the coming-out party for the network of looters who sit at the nexus of American political and economic power. The grifter class—made up of the largest players in the financial industry and the politicians who do their bidding—has been growing in power for a generation, transferring wealth upward through increasingly complex financial mechanisms and political maneuvers. The crisis was only one terrifying manifestation of how they’ve hijacked America’s political and economic life.”

Source

KISS & Stocks (Keep It Simple Stupid)

If you don’t understand a term look in up at Investopedia.com dictionary

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

DOUBLE CHECK ALL DATA, I MAKE MORE THAN GRAMMAR MISTAKES

Index Percentage Volume
Dow +0.06% down
NASDQ -0.10% down
S&P +0.09% down
Russell 2000 -0.68% -

Technicals, Fundamentals & Analysis

Investors411 record – 5 years of beating benchmark S&P 500

US Stock Markets -

Only one more day before the Fed announces what it will do with the QE2. Same prediction that has held up for the last week remains. Stocks remain flat until the dollar speaks. Wednesday is the day the Fed speaks on QE2 and therefore the dollar.

Investors411 has a long and successful  history of investing in emerging economic markets while the US growth was weaker. Now, the Fed has to inject more cash into a flatline economy through QE 2. This should help big US companies that grow though exports by acting as a damper on the dollar. Here’s some suggestion by a Seeking Alpha author on RTF’s that benefit from QE 2

What Will the Fed do? What Will the Fed do? What Will the Fed do?

Significant Indexes

  • The Dollar (USD) [Anything daily price move over +/- 0.50 is significant. Dollar usually moves inversely to stocks] The dollar fell +0.35% yesterday. Dollar currently moving sideways within a range (see below). Back in middle of consolidation range. Trend for stocks = Neutral
  • The Baltic Dry Index (BDI) [measures cost of world trade. Also proxy for China, emerging markets, exporting countries]Fell a -1.12% yesterday. BDI now consolidating after bull run that began in June. The BDI has been overshadowed by the dollar moves.  Longer term Pattern now= Neutral
  • McClellan Index – (MO) [The rough guideline is over +60 = overbought market = sell positions or short stocks, & -60 = oversold market = buy stocks.] Basically flat closed at -15.27% yesterday. Six week trend (see chart) is starting looking bearish but location still = NEUTRAL

Reading Tea Leaves.

Again Mantra for last two weeks -“Any move in UUP (tracking ETF for dollar) above 22.7 resistance is trouble for stocks. Any move below 22.18 support level is good for stocks. A breakout of either the support or resistance level will tell you who wins the dollar war.” UUP closed at 22.41

Bottom Line = Most technic al analysts I look at are bearish. All significant indicators in NEUTRAL and Long Term Outlook still Slightly Positive, gives bulls slight advantage.

However, All eyes on Fed and how big QE2 is going to be. What the Fed says and does about QE 2 Wednesday will probably set the course for stocks and settle the dollar war.

Positions

The  Positions Section link to latest & former buys and sells  - These are positions I actually own

(I do manage 6 accounts that have other positions)

  • EWS (Singapore)
  • SSO (2x what S&P does).

Again the Mantra for the last week - “Not making any specific move until dollar breaks out of its range. I would look at a breakout higher for the dollar, and a corresponding fall in stocks and the MO to oversold as a buying opportunity for long term investors. “Looks like next Wednesday Fed meeting is the big event.

Look for Paul R’s always enlightening remarks on stocks and sectors in the comments section of the blog. See POSITION section of blog for lists of potential stocks & ETF’s including ”YOUR Stock List.

Longer Term Outlook - CAUTIOUSLY BULLISH

AS ALWAYS, DO YOUR OWN RESEARCH BEFORE INVESTING!

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