Sooner or later, the deniers will realize that the global economy is coming apart at the seams and that holding any kind of asset that isn't tangible, liquid or immediately tradable may not be worth the risk.
Almost daily, there are signs that the euro experiment is imploding, with Greece and France now at the forefront, but Italy, Spain and Portugal not far behind in terms of insolvency, anarchy and chaos.
The issues are the same: governments promised too much, spent too much and now don't have the funds to continue operating as they were during boom times. The specific trouble for nations using the Euro as currency is that they cannot print their way out of their messes, a la the United States, and must rely on the continued support of their neighboring nations and the ECB and IMF to fund their operations.
In Greece, the leader of Greece's Left Coalition party, Alexis Tsipras, began to start forming a coalition government, calling for repudiation of the bailout measures forced upon the nation and an investigation into whether the bailouts were even legal.
As Greece moved closer and closer to anarchy, chaos, and the eventual default upon its debts, it is becoming more clear that Greece will not long remain a member of the Eurozone, it's fate sealed by decades of underfunding pensions, loose tax policies and general corruption at high levels of the government.
France's new president, Francois Hollande, has promised voters to curtail the austerity measures that have cut jobs and pensions and has crippled the nation's economy.
European stocks were, by and large, down on the day, while in the US, the major indices suffered heavy losses early on, but rallied in the afternoon on nothing but vapors and in defiance of the reality offered by a collapsing European Union and general sluggishness in the global economy.
The Dow was down as many as 198 points before the afternoon rally cut those losses in half. The same was true on the NASDAQ and S&P, the latter down 22 points before shaving them to a marginal decline.
Despite the completely bogus and likely foolhardy buying into the dip mentality that is pervasive in these day-traded, momentum markets, the smartest of the smart money has probably already headed for the hills, seeking safe havens in treasuries or other hard assets, though one could not tell that from the action in gold, which, along with silver, was battered down and did not experience relief.
Central banks have been buying gold with both hands recently, all the better for them is their ability to dictate price to the market, swooping in to buy at bargain prices. However, today's activity was reminiscent of early 2008, before the great collapse that took all assets lower, though gold and silver began rebounding months before equities. Today's trade was more than likely the result of margin calls on stocks, being paid off by selling gold and silver, another foolhardy strategy.
While the utter collapse of the Euro and the global economy is by no means a certainty, signs of slowing and antecedent deflation are emerging, the real question being how far the US Federal Reserve, the ECB and other central banks will go with more policy easing and money printing before the game engulfs them completely.
The late-day rally on wall Street may have eased some nerves and cooled some of the fear, but the trend is surely in place, as stocks have fallen in four of the past five sessions (five for five for the Dow).
Also notable was the heavy volume, another sign that investors who want out are getting out, albeit not at the prices they may have wanted. Additionally, new highs - new lows has been negative for three consecutive sessions.
Dow 12,932.09, -76.44 (0.59%)
NASDAQ 2,946.27, -11.49 (0.39%)
S&P 500 1,363.72, -5.86 (0.43%)
NYSE Composite 7,887.26, -61.50 (0.77%)
NASDAQ Volume 2,169,278,000
NYSE Volume 4,215,958,500
Combined NYSE & NASDAQ Advance - Decline: 2403-3181
Combined NYSE & NASDAQ New highs - New lows: 110-178
WTI crude oil: 97.01, -0.93
Gold: 1,604.50, -34.60
Silver: 29.46, -0.66
Showing posts with label austerity. Show all posts
Showing posts with label austerity. Show all posts
Tuesday, May 8, 2012
Friday, March 2, 2012
Down Day All Around as Week Ends; Spain says 'No' to Austerity
Either everybody and their brothers-in-law were taking profits on Friday or there's some kind of disturbance in the Force, because not only were stocks down, but so were oil, gold and silver.
Just for the record, it was another brutally low volume day in equities and very light on economic data. Sure enough, however, our friends in Europe attempted to make things interesting as Spanish Prime Minister Mariano Rajoy defied his EU overlords in Brussels by setting a softer budget target than originally agreed upon.
The targeted budget deficit for 2012 was supposed to be no larger than 4.4 percent of GDP, but Rajoy targeted a deficit that will amount to 5.8 percent of assumed GDP.
Of course, the numbers game is a nebulous one, especially considering Spain's unemployment rate hovering around 20% nationwide.
As EU leaders prepared for a summit beginning Saturday in Brussels, they were greeted by hundreds of union protesters railing against austerity. Similar protest were held in Greece and Spain. Across Spain, students protested cuts to education budgets and the demonstrators clashed with police in Barcelona.
The Spanish demonstrations were large, estimated in the tens of thousands.
Back here on planet America, there were no protests of any size to speak of, though it seemed like everyone was more in a mood to forget about money and budgets and just go home for the weekend.
Dow 12,977.57, -2.73 (0.02%)
NASDAQ 2,976.19, -12.78 (0.43%)
S&P 500 1,369.63, -4.46 (0.32%)
NYSE Composite 8,125.17, -49.94 (0.61%)
NASDAQ Volume 1,754,632,875
NYSE Volume 3,346,330,500
Combined NYSE & NASDAQ Advance - Decline: 1748-3844
Combined NYSE & NASDAQ New highs - New lows: 185-42 (beginning of convergence?)
WTI crude oil: 106.70, -2.14
Gold: 1,709.80, -12.40
Silver: 34.52, -1.14
Just for the record, it was another brutally low volume day in equities and very light on economic data. Sure enough, however, our friends in Europe attempted to make things interesting as Spanish Prime Minister Mariano Rajoy defied his EU overlords in Brussels by setting a softer budget target than originally agreed upon.
The targeted budget deficit for 2012 was supposed to be no larger than 4.4 percent of GDP, but Rajoy targeted a deficit that will amount to 5.8 percent of assumed GDP.
Of course, the numbers game is a nebulous one, especially considering Spain's unemployment rate hovering around 20% nationwide.
As EU leaders prepared for a summit beginning Saturday in Brussels, they were greeted by hundreds of union protesters railing against austerity. Similar protest were held in Greece and Spain. Across Spain, students protested cuts to education budgets and the demonstrators clashed with police in Barcelona.
The Spanish demonstrations were large, estimated in the tens of thousands.
Back here on planet America, there were no protests of any size to speak of, though it seemed like everyone was more in a mood to forget about money and budgets and just go home for the weekend.
Dow 12,977.57, -2.73 (0.02%)
NASDAQ 2,976.19, -12.78 (0.43%)
S&P 500 1,369.63, -4.46 (0.32%)
NYSE Composite 8,125.17, -49.94 (0.61%)
NASDAQ Volume 1,754,632,875
NYSE Volume 3,346,330,500
Combined NYSE & NASDAQ Advance - Decline: 1748-3844
Combined NYSE & NASDAQ New highs - New lows: 185-42 (beginning of convergence?)
WTI crude oil: 106.70, -2.14
Gold: 1,709.80, -12.40
Silver: 34.52, -1.14
Friday, February 10, 2012
Greece: Deal or No Deal; Booking Profits Today
Finally, after four days of running essentially in place, stocks took a morning downturn and turned it into an all-day event, as US indices suffered their worst loss of 2012.
The catalyst for the day-long decline was none other than Greece, where the deal struck on new austerity measures just yesterday quickly became unglued as the leader of the LAOS party, Giorgios Karatzaferis, said publicly that his 16-seat faction (of Greece's 300-member parliament) would vote against the planned austerity measures this Sunday.
The departure of the small faction caused a major uproar in financial markets, which see the defection as a major blow to the overall refinancing plan put in place by the EU, ECB and IMF (the "troika"). Globalist financial leaders have demanded that the Greek government sign onto the strict austerity measures before taking further steps to ease the crisis in Greece with another round of bailout funds before the deadline for Greece to repay roughly $14 billion occurs on March 20.
Additionally, as many as five cabinet ministers of the newly-formed Greek coalition government have reportedly resigned, signaling even further defections from the nation-destroying plan to keep Greece afloat and the Archbishop of Athens - and leader of the Orthodox church - sent a letter to Prime Minister Lucas Papademos warning of a "social explosion" of poverty, homelessness and rioting should the country continue on its current, destructive path.
Even today, protesters hurled gas bombs and rocks at Greek police in and around the capitol as the nation enters a dangerous, deadly phase of its struggle for sovereignty.
The bottom line is that Greece can and probably should extract itself from the EU and begin - as soon as humanly possible - converting from the disabled Euro currency back to the drachma. The levels of debt are far too onerous for Greece to ever repay without severe costs in lives and livelihoods, and the rising passions of the people may dictate to the government and the gloablist EU statists the correct course for the country, lest it fall to the desires of those clamoring for continued support from the ECB, which thus far have produced only a worsening situation.
A disorderly default by Greece would open the door to similar situations in Portugal and especially Ireland, where debt slavery is becoming a way of life and the citizens of the Emerald Isle find themselves chained to the wishes of their banker overlords. Extrication from the EuroZone and the Euro currency is now being seen as a path toward self-sufficiency and national unity in countries with severe debt issues, including Spain, Italy and Belgium.
Dissolution of the European Union and destruction of the Euro currency caused by domino-like defections is an end-game that the globalists and supra-governing mechanisms of the EU cannot even begin to comprehend and that is why almost all European stock markets - along with US markets - ended the day deep in the red.
The losses today in the Dow, NASDAQ and S&P 500 were a sudden shift from the plodding gains of recent days and may be signaling a shift in global economic expectations. Today was surely a day in which some short-term traders ran for cover, as US Treasury bonds improved, pushing yields lower.
A move lower in oil, gold and silver, as the US dollar rose in value is probably a temporary condition, at least for the metals, but any continued move lower by the Euro - which took a sudden downturn on today's news - would more than likely contribute to a run on equities as the correlation trade between the US dollar, the Euro and risk assets continues to suggest.
With the turn of the new year, the Euro has strengthened, but the destruction today should serve as a warning to investors and speculators that the recent strength is hardly sustainable. Imagining a Euro at 1.20 to the dollar, or even at par, could turn out to be the worst nightmare for many hedge funds and even long-term investors.
US stocks have reached a point of no return - at or near multi-year highs - and the concept of a euro-fomented retreat is not only palpable, but probable at this juncture.
Investors worldwide will be holding their collective breaths this weekend in anticipation of the Sunday vote by Greece's parliament and the response from the European financial authorities. While complete resolution is a distant hope, some clarity should come to markets by Monday, though the projected outcomes are radically different.
Plenty of profits were booked today, and, if the Greek situation continues to devolve into chaos, many more traders and investors will be heading for the sidelines. The markets - indeed, all of Europe and most of the world - are headed toward a climatic conclusion or convulsion in the days and weeks ahead. Should the Greeks decide to reject austerity and the burdens of continued debt, all bets are off.
Dow 12,801.23, -89.23 (0.69%)
NASDAQ 2,903.88, -23.35 (0.80%)
S&P 500 1,342.64, -9.31 (0.69%)
NYSE Composite 7,992.05, -89.20 (1.10%)
NASDAQ Volume 1,786,934,125
NYSE Volume 3,798,787,500
Combined NYSE & NASDAQ Advance - Decline: 1420-4233
Combined NYSE & NASDAQ New highs - New lows: 144-21
WTI crude oil: 98.67, -1.17
Gold: 1,725.30, -15.90
Silver: 33.60, 0.31
The catalyst for the day-long decline was none other than Greece, where the deal struck on new austerity measures just yesterday quickly became unglued as the leader of the LAOS party, Giorgios Karatzaferis, said publicly that his 16-seat faction (of Greece's 300-member parliament) would vote against the planned austerity measures this Sunday.
The departure of the small faction caused a major uproar in financial markets, which see the defection as a major blow to the overall refinancing plan put in place by the EU, ECB and IMF (the "troika"). Globalist financial leaders have demanded that the Greek government sign onto the strict austerity measures before taking further steps to ease the crisis in Greece with another round of bailout funds before the deadline for Greece to repay roughly $14 billion occurs on March 20.
Additionally, as many as five cabinet ministers of the newly-formed Greek coalition government have reportedly resigned, signaling even further defections from the nation-destroying plan to keep Greece afloat and the Archbishop of Athens - and leader of the Orthodox church - sent a letter to Prime Minister Lucas Papademos warning of a "social explosion" of poverty, homelessness and rioting should the country continue on its current, destructive path.
Even today, protesters hurled gas bombs and rocks at Greek police in and around the capitol as the nation enters a dangerous, deadly phase of its struggle for sovereignty.
The bottom line is that Greece can and probably should extract itself from the EU and begin - as soon as humanly possible - converting from the disabled Euro currency back to the drachma. The levels of debt are far too onerous for Greece to ever repay without severe costs in lives and livelihoods, and the rising passions of the people may dictate to the government and the gloablist EU statists the correct course for the country, lest it fall to the desires of those clamoring for continued support from the ECB, which thus far have produced only a worsening situation.
A disorderly default by Greece would open the door to similar situations in Portugal and especially Ireland, where debt slavery is becoming a way of life and the citizens of the Emerald Isle find themselves chained to the wishes of their banker overlords. Extrication from the EuroZone and the Euro currency is now being seen as a path toward self-sufficiency and national unity in countries with severe debt issues, including Spain, Italy and Belgium.
Dissolution of the European Union and destruction of the Euro currency caused by domino-like defections is an end-game that the globalists and supra-governing mechanisms of the EU cannot even begin to comprehend and that is why almost all European stock markets - along with US markets - ended the day deep in the red.
The losses today in the Dow, NASDAQ and S&P 500 were a sudden shift from the plodding gains of recent days and may be signaling a shift in global economic expectations. Today was surely a day in which some short-term traders ran for cover, as US Treasury bonds improved, pushing yields lower.
A move lower in oil, gold and silver, as the US dollar rose in value is probably a temporary condition, at least for the metals, but any continued move lower by the Euro - which took a sudden downturn on today's news - would more than likely contribute to a run on equities as the correlation trade between the US dollar, the Euro and risk assets continues to suggest.
With the turn of the new year, the Euro has strengthened, but the destruction today should serve as a warning to investors and speculators that the recent strength is hardly sustainable. Imagining a Euro at 1.20 to the dollar, or even at par, could turn out to be the worst nightmare for many hedge funds and even long-term investors.
US stocks have reached a point of no return - at or near multi-year highs - and the concept of a euro-fomented retreat is not only palpable, but probable at this juncture.
Investors worldwide will be holding their collective breaths this weekend in anticipation of the Sunday vote by Greece's parliament and the response from the European financial authorities. While complete resolution is a distant hope, some clarity should come to markets by Monday, though the projected outcomes are radically different.
Plenty of profits were booked today, and, if the Greek situation continues to devolve into chaos, many more traders and investors will be heading for the sidelines. The markets - indeed, all of Europe and most of the world - are headed toward a climatic conclusion or convulsion in the days and weeks ahead. Should the Greeks decide to reject austerity and the burdens of continued debt, all bets are off.
Dow 12,801.23, -89.23 (0.69%)
NASDAQ 2,903.88, -23.35 (0.80%)
S&P 500 1,342.64, -9.31 (0.69%)
NYSE Composite 7,992.05, -89.20 (1.10%)
NASDAQ Volume 1,786,934,125
NYSE Volume 3,798,787,500
Combined NYSE & NASDAQ Advance - Decline: 1420-4233
Combined NYSE & NASDAQ New highs - New lows: 144-21
WTI crude oil: 98.67, -1.17
Gold: 1,725.30, -15.90
Silver: 33.60, 0.31
Thursday, February 9, 2012
50 State AGs Bend to Will of Banks in Foreclosure Settlement Deal
This is the kind of market that causes financial writers to suffer a severe case of "writers block," the disease that infests the creative part of the mind because there's simply no action in financial markets.
For the fourth day in a row, the major stock indices barely budged, but managed to produce marginal gains, except for the NYSE Composite, which was down slightly. The pattern was virtually the same, with a dip in the morning followed by a quick comeback and a flat to slightly rising curve through the session. One change was that the advance-decline line favored the downside, but guess what? Options expiry is next Friday, so expect the markets to continue climbing though the middle of next week. Bankers gotta eat, ya know?
There was a bit of news from Greece, where the government finally agreed to tougher austerity measures which will reduce wages, headcount, and pensions. The deal cleared the way for talks with the troika to resume, though there are still significant hurdles to be worked out with both the public funding sources and the private ones.
The agreement did little to move US markets, which have been stuck in a regimen of low volume and little movement all week (I mentioned that earlier, I know).
In the other major development of the day, the 50 state Attorneys General announced that their deal with the five major banks involved in the sub-prime, robo-signing mortgage and foreclosure fiasco had been finalized, with the holdouts from California, New York and Delaware finally coming around to see it the banks' way.
The $26 billion deal will provide little relief to underwater homeowners (maybe $1500-2000) and offers a $2000 cash bonus to people who lost their homes to fraudulent foreclosures between 2008-2011. Anyone who paid their mortgage on time, is currently in foreclosure or falls outside those chosen dates: out of luck.
That the deal was yet another windfall for the banks cannot be understated. These banks, through shoddy originations, poor (sometimes none) documentation, fraud and other nefarious tactics, bilked the American public, the US government and mortgage-backed securities bondholders of billions, if not trillions of dollars, worldwide. The paltry sum of $26 billion spread out over a three-year span is nothing more than a rounding error for these white-collar criminals.
If there's outrage to be heard from the general public, don't count on it amounting to much as the US populace has already put up with enough government and business malfeasance the past 12 years that the screamers and shouters are already worn out from 9/11, the security state, illegal wiretaps, TSA gropings, the Iraq and Afghanistan wars, etc. The list goes on and on and the American public has virtually resigned itself to the fact that resisting the influence of a broken, fascist federal government is tantamount to economic suicide and hardly worth the effort.
Little by little, the feds have taken away essential liberties granted by the constitution (that "piece of paper" as GW Bush called it) and are in the process of shredding every last ounce of fight and goodness that typified the America of yesteryear. It's depressing, but blatantly obvious that the direction of the country is careening quickly toward an oligarchy in which the well-connected, well-heeled are treated far differently than the poor working slobs. Money is power and the feds know this well. This is the most corrupt government in the world and neither the Democrats nor the Republicans have a monopoly on the corruptive power as they both drink from the same hose: that of the rich, in deference to the citizenry.
The only potential upside to the plight of the average American is that the federalistas are hopelessly incompetent, so compliance with all their rules, regulations, edicts and taxes can generally be avoided with a little bit of ingenuity and a good dose of umbrage. The downside is that as federal tax revenues decrease (a logical occurrence and already well underway), the bureaucrats and oligarchs will become even more oppressive and brutal. Those of us wishing to stay and fight or hope for the best had better be prepared for another decade of distrust, distortions and dishonesty from the top down, though, as Americans - and others - have been noted for in the past, defiance of officials and mendacious governance can be a powerful elixir for those who have been harmed.
Today's "settlement" with Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial (formerly known as GMAC) is nothing more than a cover for the inadequacies of our elected Attorneys General, who found it more expeditious to glad-hand their political donors than follow the rule of law. What a shame. America used to be such a nice place.
Dow 12,890.46, +6.51 (0.05%)
NASDAQ 2,927.23, +11.37 (0.39%)
S&P 500 1,351.95, +1.99 (0.15%)
NYSE Composite 8,081.25, -1.73 (0.02%)
NASDAQ Volume 2,148,275,750
NYSE Volume 4,058,775,250
Combined NYSE & NASDAQ Advance - Decline: 2687-2940
Combined NYSE & NASDAQ New highs - New lows: 289-13 (no comment)
WTI crude oil: 99.84 (really?)
Gold: 1,741.20, +9.90
Silver: 33.92, +0.21
For the fourth day in a row, the major stock indices barely budged, but managed to produce marginal gains, except for the NYSE Composite, which was down slightly. The pattern was virtually the same, with a dip in the morning followed by a quick comeback and a flat to slightly rising curve through the session. One change was that the advance-decline line favored the downside, but guess what? Options expiry is next Friday, so expect the markets to continue climbing though the middle of next week. Bankers gotta eat, ya know?
There was a bit of news from Greece, where the government finally agreed to tougher austerity measures which will reduce wages, headcount, and pensions. The deal cleared the way for talks with the troika to resume, though there are still significant hurdles to be worked out with both the public funding sources and the private ones.
The agreement did little to move US markets, which have been stuck in a regimen of low volume and little movement all week (I mentioned that earlier, I know).
In the other major development of the day, the 50 state Attorneys General announced that their deal with the five major banks involved in the sub-prime, robo-signing mortgage and foreclosure fiasco had been finalized, with the holdouts from California, New York and Delaware finally coming around to see it the banks' way.
The $26 billion deal will provide little relief to underwater homeowners (maybe $1500-2000) and offers a $2000 cash bonus to people who lost their homes to fraudulent foreclosures between 2008-2011. Anyone who paid their mortgage on time, is currently in foreclosure or falls outside those chosen dates: out of luck.
That the deal was yet another windfall for the banks cannot be understated. These banks, through shoddy originations, poor (sometimes none) documentation, fraud and other nefarious tactics, bilked the American public, the US government and mortgage-backed securities bondholders of billions, if not trillions of dollars, worldwide. The paltry sum of $26 billion spread out over a three-year span is nothing more than a rounding error for these white-collar criminals.
If there's outrage to be heard from the general public, don't count on it amounting to much as the US populace has already put up with enough government and business malfeasance the past 12 years that the screamers and shouters are already worn out from 9/11, the security state, illegal wiretaps, TSA gropings, the Iraq and Afghanistan wars, etc. The list goes on and on and the American public has virtually resigned itself to the fact that resisting the influence of a broken, fascist federal government is tantamount to economic suicide and hardly worth the effort.
Little by little, the feds have taken away essential liberties granted by the constitution (that "piece of paper" as GW Bush called it) and are in the process of shredding every last ounce of fight and goodness that typified the America of yesteryear. It's depressing, but blatantly obvious that the direction of the country is careening quickly toward an oligarchy in which the well-connected, well-heeled are treated far differently than the poor working slobs. Money is power and the feds know this well. This is the most corrupt government in the world and neither the Democrats nor the Republicans have a monopoly on the corruptive power as they both drink from the same hose: that of the rich, in deference to the citizenry.
The only potential upside to the plight of the average American is that the federalistas are hopelessly incompetent, so compliance with all their rules, regulations, edicts and taxes can generally be avoided with a little bit of ingenuity and a good dose of umbrage. The downside is that as federal tax revenues decrease (a logical occurrence and already well underway), the bureaucrats and oligarchs will become even more oppressive and brutal. Those of us wishing to stay and fight or hope for the best had better be prepared for another decade of distrust, distortions and dishonesty from the top down, though, as Americans - and others - have been noted for in the past, defiance of officials and mendacious governance can be a powerful elixir for those who have been harmed.
Today's "settlement" with Bank of America, JP Morgan Chase, Wells Fargo, Citigroup and Ally Financial (formerly known as GMAC) is nothing more than a cover for the inadequacies of our elected Attorneys General, who found it more expeditious to glad-hand their political donors than follow the rule of law. What a shame. America used to be such a nice place.
Dow 12,890.46, +6.51 (0.05%)
NASDAQ 2,927.23, +11.37 (0.39%)
S&P 500 1,351.95, +1.99 (0.15%)
NYSE Composite 8,081.25, -1.73 (0.02%)
NASDAQ Volume 2,148,275,750
NYSE Volume 4,058,775,250
Combined NYSE & NASDAQ Advance - Decline: 2687-2940
Combined NYSE & NASDAQ New highs - New lows: 289-13 (no comment)
WTI crude oil: 99.84 (really?)
Gold: 1,741.20, +9.90
Silver: 33.92, +0.21
Monday, February 6, 2012
As Greece Prepares for Potential Default, Markets Take Pause
The troubled nation of Greece took center stage again today, as talks to reach agreement on restructuring private and public debt reached yet another impasse and discussions between Primier Lucas Papademos and leaders of the recently-formed unity government also could not agree on austerity measures to be imposed in order to receive the next round of bailout money from the trokia - the EU, ECB and IMF.
Today, Papademos asked experts at Athens' finance ministry to compile a detailed analysis of what a Greek default would entail. The immediate response was that a bankruptcy of Greece would make what happened in Argentina more than a decade ago look like "a picnic."
With that backdrop, stocks opened sharply lower and remained in the red for the duration of the session, which marked the lowest volume day of the year. Rather than outright selling, traders seemed content to wait and watch developments in Europe, hoping that a default of Greece can be avoided. The major averages, though all down for the session, finished at or near their highs of the day.
Stocks are still up for the year. Today's pullback, like many before it, was minor and actually created more opportunities for day-traders than anyone else.
Dow 12,845.13, -17.10 (0.13%)
NASDAQ 2,901.99, -3.67 (0.13%)
S&P 500 1,344.33, -0.57 (0.04%)
NYSE Composite 8,041.85, -18.58 (0.23%)
NASDAQ Volume 1,648,986,500
NYSE Volume 3,310,194,500
Combined NYSE & NASDAQ Advance - Decline: 2293-3331
Combined NYSE & NASDAQ New highs - New lows: 211-9
WTI crude oil: 96.91, -0.93
Gold: 1,724.90, -15.40
Silver: 33.71, -0.04
Today, Papademos asked experts at Athens' finance ministry to compile a detailed analysis of what a Greek default would entail. The immediate response was that a bankruptcy of Greece would make what happened in Argentina more than a decade ago look like "a picnic."
With that backdrop, stocks opened sharply lower and remained in the red for the duration of the session, which marked the lowest volume day of the year. Rather than outright selling, traders seemed content to wait and watch developments in Europe, hoping that a default of Greece can be avoided. The major averages, though all down for the session, finished at or near their highs of the day.
Stocks are still up for the year. Today's pullback, like many before it, was minor and actually created more opportunities for day-traders than anyone else.
Dow 12,845.13, -17.10 (0.13%)
NASDAQ 2,901.99, -3.67 (0.13%)
S&P 500 1,344.33, -0.57 (0.04%)
NYSE Composite 8,041.85, -18.58 (0.23%)
NASDAQ Volume 1,648,986,500
NYSE Volume 3,310,194,500
Combined NYSE & NASDAQ Advance - Decline: 2293-3331
Combined NYSE & NASDAQ New highs - New lows: 211-9
WTI crude oil: 96.91, -0.93
Gold: 1,724.90, -15.40
Silver: 33.71, -0.04
Wednesday, June 29, 2011
Greece Passes Austerity; Next Up: US Debt Limit
While there was little doubt that the Greek parliament would "do the right thing" and pass the 5-year austerity package in order to secure another $17 billion in their continuing slavish relationship with the IMF, ECB and EU, the results on the streets of Athens suggest that the plan may not be to the liking of the average Greek, if there is such a creature.
Imagine this happening in the United States. A consortium of banks hold the US government hostage, saying, in effect, "do this, or we cut off your allowance." The this being the layoff of thousands of government employees, wage cuts for others, a 10% tax increase and the selling off (privatization) of state assets, one wonders how the Greek populace will like living in abject poverty for the remainder of their lives. In America, one need not wonder. It would most likely pass, but the popular fury and anger would be ferocious.
So it is in Greece, where protesters hailed rocks and stocks at police throughout the day and police returned with salvos of tear gas. There was a great deal of looting and confrontation with the police, but few arrests. It seems the Greek police, some of whom will be paid less in a few weeks than they are now, or may not have jobs at all, have a bit of a heart for their countrymen and women.
Essentially, along with the 10% tax increase, services will be cut by about 25%, along with available government positions and wages. $50 in Greek assets will be privatized, begging the question of just what the Parthenon may be worth to some European oligarch-trash who wish to add it to their art collection.
The measure passed with a vote of 155-138, with some abstentions, since the Greek parliament is comprised of 300 members. But one has to wonder just how long it will last before the money-starved Greeks begin to turn on the government again and again, seeing the bailout as nothing more than another stalling tactic for a bankrupt nation and largesse for the elitist bankers.
Stocks and commodities both were buoyed by the passage, as the globalists averted another crisis in the flawed and corrupt fiat money system. So, the result, higher prices for everything, except, of course, wages.
The next chink in the armor to be fixed would be the US insolvency issue, that of raising the debt debt ceiling so the world's largest net creditor can continue to borrow and spend until the elections of 2012, at least. The deadline of August 2nd approaches with all due haste, though both houses of congress will not be convened at the same time, if they keep to their schedules.
The House was already in recess this week and will be until July 5th, though the senate recess - scheduled for July 4-10, is in doubt, with Democrats seeking to cancel it, and Republicans all too willing to stay in Pro Forma session, fearing recess appointments by the President.
With any luck, the tow houses of financial horror could actually do some deal-making between the 10t of July and the August 2 deadline, and that would be almost a surety, as both houses will recess on August 8 and not return until September 5, after Labor Day and well beyond the statutory constraints of passing a new debt ceiling.
Just like in Greece, however, it's expected that the senate and the president will approve some kind of deal at the last moment, ensuring maximum discomfort and anxiety for the good people of America. Of course, any talk of a balanced budget amendment, currently being espoused by various Republicans, should be recognized immediately as a complete sham, though there is some hope that some semblance of spending restraint may be written into any new bill. The long money is on the government beating the deadline by days and getting back to doing what they do best, spending money they don't have.
Dow 12,261.42, +72.73 (0.60%)
NASDAQ 2,740.49, +11.18 (0.41%)
S&P 500 1,307.41, +10.74 (0.83%)
NYSE Composite 8,228.50, +92.52 (1.14%)
Gainers beat losers by a solid margin, 4185-2361. On the NASDAQ, new highs were better than new lows by a 100-29 margin, while on the NYSE, the new highs outnumbered new lows, 81-14. The combined total of 181 new highs to 43 new lows suggests that we're back to "risk on" for the foreseeable future, though, being summer, a sideways trend always has great potential. Volume was light, but not actually awful.
NASDAQ Volume 1,816,885,000
NYSE Volume 4,316,723,500
WTI crude futures rose remarkably again, up $1.88, to $94.77, along with gasoline, which has been rocketing of late. The most recent price gouges have not shown up at the punp yet, though they surely will by the weekend. AAA reports that the average price of a gallon of unleaded regular is $3.54, with higher price in the more populous states of the Northeast and West coast.
Gold got a little nibble of a bid, rising $9.10, to $1511.20. Silver spiked 92 cents, to $34.86.
Tomorrow morning initial unemployment claims numbers may do damage to the current three-day rally in stocks, though a positive report could produce more cries of "soft patch" and a continuation of the "risk on" trade.
Imagine this happening in the United States. A consortium of banks hold the US government hostage, saying, in effect, "do this, or we cut off your allowance." The this being the layoff of thousands of government employees, wage cuts for others, a 10% tax increase and the selling off (privatization) of state assets, one wonders how the Greek populace will like living in abject poverty for the remainder of their lives. In America, one need not wonder. It would most likely pass, but the popular fury and anger would be ferocious.
So it is in Greece, where protesters hailed rocks and stocks at police throughout the day and police returned with salvos of tear gas. There was a great deal of looting and confrontation with the police, but few arrests. It seems the Greek police, some of whom will be paid less in a few weeks than they are now, or may not have jobs at all, have a bit of a heart for their countrymen and women.
Essentially, along with the 10% tax increase, services will be cut by about 25%, along with available government positions and wages. $50 in Greek assets will be privatized, begging the question of just what the Parthenon may be worth to some European oligarch-trash who wish to add it to their art collection.
The measure passed with a vote of 155-138, with some abstentions, since the Greek parliament is comprised of 300 members. But one has to wonder just how long it will last before the money-starved Greeks begin to turn on the government again and again, seeing the bailout as nothing more than another stalling tactic for a bankrupt nation and largesse for the elitist bankers.
Stocks and commodities both were buoyed by the passage, as the globalists averted another crisis in the flawed and corrupt fiat money system. So, the result, higher prices for everything, except, of course, wages.
The next chink in the armor to be fixed would be the US insolvency issue, that of raising the debt debt ceiling so the world's largest net creditor can continue to borrow and spend until the elections of 2012, at least. The deadline of August 2nd approaches with all due haste, though both houses of congress will not be convened at the same time, if they keep to their schedules.
The House was already in recess this week and will be until July 5th, though the senate recess - scheduled for July 4-10, is in doubt, with Democrats seeking to cancel it, and Republicans all too willing to stay in Pro Forma session, fearing recess appointments by the President.
With any luck, the tow houses of financial horror could actually do some deal-making between the 10t of July and the August 2 deadline, and that would be almost a surety, as both houses will recess on August 8 and not return until September 5, after Labor Day and well beyond the statutory constraints of passing a new debt ceiling.
Just like in Greece, however, it's expected that the senate and the president will approve some kind of deal at the last moment, ensuring maximum discomfort and anxiety for the good people of America. Of course, any talk of a balanced budget amendment, currently being espoused by various Republicans, should be recognized immediately as a complete sham, though there is some hope that some semblance of spending restraint may be written into any new bill. The long money is on the government beating the deadline by days and getting back to doing what they do best, spending money they don't have.
Dow 12,261.42, +72.73 (0.60%)
NASDAQ 2,740.49, +11.18 (0.41%)
S&P 500 1,307.41, +10.74 (0.83%)
NYSE Composite 8,228.50, +92.52 (1.14%)
Gainers beat losers by a solid margin, 4185-2361. On the NASDAQ, new highs were better than new lows by a 100-29 margin, while on the NYSE, the new highs outnumbered new lows, 81-14. The combined total of 181 new highs to 43 new lows suggests that we're back to "risk on" for the foreseeable future, though, being summer, a sideways trend always has great potential. Volume was light, but not actually awful.
NASDAQ Volume 1,816,885,000
NYSE Volume 4,316,723,500
WTI crude futures rose remarkably again, up $1.88, to $94.77, along with gasoline, which has been rocketing of late. The most recent price gouges have not shown up at the punp yet, though they surely will by the weekend. AAA reports that the average price of a gallon of unleaded regular is $3.54, with higher price in the more populous states of the Northeast and West coast.
Gold got a little nibble of a bid, rising $9.10, to $1511.20. Silver spiked 92 cents, to $34.86.
Tomorrow morning initial unemployment claims numbers may do damage to the current three-day rally in stocks, though a positive report could produce more cries of "soft patch" and a continuation of the "risk on" trade.
Tuesday, June 21, 2011
Markets Up on Greek Deal Hopes
Well, that headline is not a joke. Surely, nobody on Wall Street has ever heard the phrase, "beware Greeks bearing gifts," though by tomorrow, everyone will know whether the second bailout of Greece - with a third coming by the end of August, almost certainly - will be a bonus or a canard.
The issues facing the Greek government are the roll-over of some $10 billion in maturing debt, plus another $40 billion in August. Right now, the deal is on, if Greek prime minister, George Papandreou, receives a vote of confidence from the Greek parliament, in a vote scheduled at the stroke of midnight in Greece (5:00 pm EDT).
Papandreou looked to have enough votes to win the crucial vote of confidence in parliament which would pave the way to passage of the latest austerity measures next week, ensuring a $12 billion advance from the ECB and the IMF.
With time winding down on the vote, crowds were beginning to form in Syntagma Square, directly across from the Parliament building. A vote of no confidence would be seen as a victory for the Greek populace, and if Papandreou does get the needed votes, rioting and confrontation are a near-certainty, as much of the population would like to detach Greece from the EU, return to the drachma and move on. (We will post an update of the vote as soon as it is confirmed.)
Elsewhere, investors looked past more horrifying housing numbers, as existing home sales in May fell by 3.8% from April and are down 15.3% from the same time last year, according to the report released by the National Association of Realtors (NAR).
So, once again, Wall Street demonstrated just how far detached from Main Street it really is, a chasm that only seems to keep widening.
Dow 12,190.01, +109.63 (0.91%)
NASDAQ 2,687.26, +57.60 (2.19%)
S&P 500 1,295.52, +17.16 (1.34%)
NYSE Composite 8,156.27, +124.05 (1.54%)
Advancing issues defeated decliners, 5430-1205. On the NASDAQ, there were 55 new highs and 32 new lows. The NYSE registered 68 new highs and 25 new lows, effectively ending the 12-day stretch in which the lows held the advantage with the combined numbers at 123 new highs and 57 new lows. What a difference a Greek makes!
Volume on the day was marginally better than on Monday, which is saying very little.
NASDAQ Volume 1,825,893,375
NYSE Volume 3,913,965,750
WTI crude futures edged up 14 cents, to $93.40. Gold added $6.30, to $1546.80 and silver was up 37 cents to $36.43. The moves in precious metals reflected the uncertainty of global economic conditions.
Tomorrow the Federal Reverse Open Market Committee will issue another one of the periodic edicts, keeping interest rates at near ZERO, and, presumably, will include the words, "extended period" for how long they believe it will be before they actually raise rates one iota.
The Fed is stuck in no-man's land, with a stumbling, structurally-impaired domestic economy and the threat of inflation due to a falling dollar. Thus far, the Fed has taken the easy route of monetary stimulation, throwing trillions into a stagnant economy, and that's likely to be their choice for many months, if not years, to come.
In reality, Greece is a side-show.
The issues facing the Greek government are the roll-over of some $10 billion in maturing debt, plus another $40 billion in August. Right now, the deal is on, if Greek prime minister, George Papandreou, receives a vote of confidence from the Greek parliament, in a vote scheduled at the stroke of midnight in Greece (5:00 pm EDT).
Papandreou looked to have enough votes to win the crucial vote of confidence in parliament which would pave the way to passage of the latest austerity measures next week, ensuring a $12 billion advance from the ECB and the IMF.
With time winding down on the vote, crowds were beginning to form in Syntagma Square, directly across from the Parliament building. A vote of no confidence would be seen as a victory for the Greek populace, and if Papandreou does get the needed votes, rioting and confrontation are a near-certainty, as much of the population would like to detach Greece from the EU, return to the drachma and move on. (We will post an update of the vote as soon as it is confirmed.)
Elsewhere, investors looked past more horrifying housing numbers, as existing home sales in May fell by 3.8% from April and are down 15.3% from the same time last year, according to the report released by the National Association of Realtors (NAR).
So, once again, Wall Street demonstrated just how far detached from Main Street it really is, a chasm that only seems to keep widening.
Dow 12,190.01, +109.63 (0.91%)
NASDAQ 2,687.26, +57.60 (2.19%)
S&P 500 1,295.52, +17.16 (1.34%)
NYSE Composite 8,156.27, +124.05 (1.54%)
Advancing issues defeated decliners, 5430-1205. On the NASDAQ, there were 55 new highs and 32 new lows. The NYSE registered 68 new highs and 25 new lows, effectively ending the 12-day stretch in which the lows held the advantage with the combined numbers at 123 new highs and 57 new lows. What a difference a Greek makes!
Volume on the day was marginally better than on Monday, which is saying very little.
NASDAQ Volume 1,825,893,375
NYSE Volume 3,913,965,750
WTI crude futures edged up 14 cents, to $93.40. Gold added $6.30, to $1546.80 and silver was up 37 cents to $36.43. The moves in precious metals reflected the uncertainty of global economic conditions.
Tomorrow the Federal Reverse Open Market Committee will issue another one of the periodic edicts, keeping interest rates at near ZERO, and, presumably, will include the words, "extended period" for how long they believe it will be before they actually raise rates one iota.
The Fed is stuck in no-man's land, with a stumbling, structurally-impaired domestic economy and the threat of inflation due to a falling dollar. Thus far, the Fed has taken the easy route of monetary stimulation, throwing trillions into a stagnant economy, and that's likely to be their choice for many months, if not years, to come.
In reality, Greece is a side-show.
Wednesday, May 4, 2011
American Sheeple Love to Be Fleeced and Played
The lies, half-truths and material obfuscation by the government has reached new heights with the latest flip-flop on the "Osama bin Laden is dead" story.
Now the president won't release a picture of a dead bin Laden because it might inflame the Jihadists of the world. Rubbish! Pure, unadulterated nonsense from the man who is supposed to be the leader of the greatest nation on the planet, but is now exposed as nothing more than a simple liar.
Lies, lies and more lies are all the American people can expect from the most corrupt government the world has ever seen. The details of this entire, "we got him" affair have changed so often as to strain credulity until it doubles over in laughter or vomiting, or both.
First, the story originally released by AP on Sunday night, May 1, was that bin Laden was killed a week prior and that the White House had been waiting for DNA tests to confirm that the victim was indeed the world's bogeyman. Anyone watching the news scroll on FoxNews or CNN saw it, undeniably. That story vanished as soon as the president stepped up to the podium that Sunday night.
Then there were reports of a firefight, now, no firefight. Osama was armed, then he wasn't; he used his wife as a human shield, then he didn't and it wasn't even his wife, then it was his wife and she was shot because she rushed one of the Seals. There were two helicopters, no, three, no, there were four. Then Osama bin Laden is taken out of the compound to Afghanistan and rushed to an aircraft carrier for a proper burial at sea. Sure, that's completely understandable, especially if you believe Osama bin Laden was a seaman or a pirate.
Of course, there's the implausibility factor of a huge compound with 18-foot high walls, topped by barbed wire in a town populated by retired Pakistani military people, which never raised any suspicion for five or six years. That's certainly believable.
The entire episode is one huge farce and sadly, the iPad buying American sheeple public-at-large will gooble up every last sound bite of it, all the while chanting, USA, USA, USA! because the American sheeple actually love being conned, swindled, cheated, fleeced and sheared by their government. After all, this is the culmination of the 9/11 attacks, the major farce that has to this day never been adequately explained.
But, so what? Osama the Terrible is dead, right, and whether he's been dead for five, six or seven years is really immaterial because the powers that be are changing the narrative. They had to, because the most recent narrative of borrow and spend and gas at $4.00 a gallon and rising food prices and war on three fronts wasn't really going all that well, was it?
So, now, we have crashing commodity prices, falling stocks and oil down seven bucks in three days. Get ready for the new AUSTERITY coming to America. The sheeple will be fleeced from an entirely different direction and instead of calling it a recession or a depression, it will be known as a period of "slow growth" or "stagnation." Anything but calling a spade a spade, a recession a recession, a depression a depression.
The American sheeple will receive less in government service and be taxed more for it all in a "shared sacrifice" decade of austerity that is evolving even as we sit back and watch the latest American Idol or Star Dancing. America has been permanently dumbed-down and defeated, and the government loves it because an ignorant public is a well-behaved public. Give them their bread and circuses, today known as food stamps and football, and they'll just blindly follow along.
That's just the way it is, sheeple, one and all. You love being played.
Dow 12,723.58, -83.93 (0.66%)
NASDAQ 2,828.23, -13.39 (0.47%)
S&P 500 1,347.32, -9.30 (0.69%)
NYSE Composite 8,506.61, -78.07 (0.91%)
For a change, everything (except bonds) went down. Declining issues overwhelmed advancers - for the third day in a row - by a score of 4700-1904. On the NASDAQ, the flip required to shake the markets from rally mode to selling spree occurred today with 52 new highs, but 53 new lows. On the NYSE, stubbornness prevailed with 89 new highs and 28 new lows, but it's getting closer. Volume, unsurprisingly, was up again today, on a down day, an ominous warning that more selling is on the way.
NASDAQ Volume 2,250,185,000
NYSE Volume 5,078,037,500
Commodities continued to be whipped into submission. WTI crude oil futures fell another $1.81, to $109.24, the lowest price in two weeks. Gold tumbled another $20.60, to $1516.50 and silver took another massive beating, down $2.27, to $39.39. And, this just in after the close, margin requirements on silver are being raised again by the CME. Apparently sending the price of silver down $11 in three days isn't enough to square all of HSBC's and JP Morgan's short positions.
The often-discredited ADP Payroll report for April was released prior to the open today, showing private payrolls increasing by 179,000, short of consensus. But the real news was that the ISM Services index fell from 57.3 in March to 52.8 in April, a pretty big loss and well below consensus estimates of 57.5.
Tomorrow comes another week of initial unemployment and continuing claims, which precedes the BLS non-farm payroll report on Friday.
Prepare for disaster because we've been living one for the past three years.
Now the president won't release a picture of a dead bin Laden because it might inflame the Jihadists of the world. Rubbish! Pure, unadulterated nonsense from the man who is supposed to be the leader of the greatest nation on the planet, but is now exposed as nothing more than a simple liar.
Lies, lies and more lies are all the American people can expect from the most corrupt government the world has ever seen. The details of this entire, "we got him" affair have changed so often as to strain credulity until it doubles over in laughter or vomiting, or both.
First, the story originally released by AP on Sunday night, May 1, was that bin Laden was killed a week prior and that the White House had been waiting for DNA tests to confirm that the victim was indeed the world's bogeyman. Anyone watching the news scroll on FoxNews or CNN saw it, undeniably. That story vanished as soon as the president stepped up to the podium that Sunday night.
Then there were reports of a firefight, now, no firefight. Osama was armed, then he wasn't; he used his wife as a human shield, then he didn't and it wasn't even his wife, then it was his wife and she was shot because she rushed one of the Seals. There were two helicopters, no, three, no, there were four. Then Osama bin Laden is taken out of the compound to Afghanistan and rushed to an aircraft carrier for a proper burial at sea. Sure, that's completely understandable, especially if you believe Osama bin Laden was a seaman or a pirate.
Of course, there's the implausibility factor of a huge compound with 18-foot high walls, topped by barbed wire in a town populated by retired Pakistani military people, which never raised any suspicion for five or six years. That's certainly believable.
The entire episode is one huge farce and sadly, the iPad buying American sheeple public-at-large will gooble up every last sound bite of it, all the while chanting, USA, USA, USA! because the American sheeple actually love being conned, swindled, cheated, fleeced and sheared by their government. After all, this is the culmination of the 9/11 attacks, the major farce that has to this day never been adequately explained.
But, so what? Osama the Terrible is dead, right, and whether he's been dead for five, six or seven years is really immaterial because the powers that be are changing the narrative. They had to, because the most recent narrative of borrow and spend and gas at $4.00 a gallon and rising food prices and war on three fronts wasn't really going all that well, was it?
So, now, we have crashing commodity prices, falling stocks and oil down seven bucks in three days. Get ready for the new AUSTERITY coming to America. The sheeple will be fleeced from an entirely different direction and instead of calling it a recession or a depression, it will be known as a period of "slow growth" or "stagnation." Anything but calling a spade a spade, a recession a recession, a depression a depression.
The American sheeple will receive less in government service and be taxed more for it all in a "shared sacrifice" decade of austerity that is evolving even as we sit back and watch the latest American Idol or Star Dancing. America has been permanently dumbed-down and defeated, and the government loves it because an ignorant public is a well-behaved public. Give them their bread and circuses, today known as food stamps and football, and they'll just blindly follow along.
That's just the way it is, sheeple, one and all. You love being played.
Dow 12,723.58, -83.93 (0.66%)
NASDAQ 2,828.23, -13.39 (0.47%)
S&P 500 1,347.32, -9.30 (0.69%)
NYSE Composite 8,506.61, -78.07 (0.91%)
For a change, everything (except bonds) went down. Declining issues overwhelmed advancers - for the third day in a row - by a score of 4700-1904. On the NASDAQ, the flip required to shake the markets from rally mode to selling spree occurred today with 52 new highs, but 53 new lows. On the NYSE, stubbornness prevailed with 89 new highs and 28 new lows, but it's getting closer. Volume, unsurprisingly, was up again today, on a down day, an ominous warning that more selling is on the way.
NASDAQ Volume 2,250,185,000
NYSE Volume 5,078,037,500
Commodities continued to be whipped into submission. WTI crude oil futures fell another $1.81, to $109.24, the lowest price in two weeks. Gold tumbled another $20.60, to $1516.50 and silver took another massive beating, down $2.27, to $39.39. And, this just in after the close, margin requirements on silver are being raised again by the CME. Apparently sending the price of silver down $11 in three days isn't enough to square all of HSBC's and JP Morgan's short positions.
The often-discredited ADP Payroll report for April was released prior to the open today, showing private payrolls increasing by 179,000, short of consensus. But the real news was that the ISM Services index fell from 57.3 in March to 52.8 in April, a pretty big loss and well below consensus estimates of 57.5.
Tomorrow comes another week of initial unemployment and continuing claims, which precedes the BLS non-farm payroll report on Friday.
Prepare for disaster because we've been living one for the past three years.
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