As has been noted here recently, the correlation between the Euro and US stocks is operating in perfect harmony. Today, with the Italian 10-year note dipping below the magic 7% yield line, the euro gained in strength against other currencies, most notably the US dollar, which sent - as it always does - US stocks upward.
There's really no further analysis to the US stock market needed, so long as Europe remains in crisis and the unannounced policy of the Fed and Treasury is to keep the US dollar weak. Whenever the Euro is rising, so too US stocks, and when the Euro is down, so are equities across the pond. It's a losing strategy in the big picture view, but that doesn't prevent Wall Street's masters of the universe from making bank on both sides of the trade.
One could suggest that the entire global economy is now tied to the fates of Greece and Italy, though in reality, it's the Fed and the major US banks that are pulling most of the strings. Just as fundamentals no longer matter for stock-picking, so too the daily drumbeat of Euro-craziness that manifests itself in speeches, statements and the occasional turnover of a sovereign government.
Keeping the dollar week and the Euro strong is all that matters, even though the Euro should, realistically, be trading at par with the dollar or lower. Eventually, this is a failing policy that will flatten everything: stocks, currencies, politicians and their weakened governments.
The correlation is not perfect, however, as our New highs - New lows indicator below demonstrates in perfect fashion. Today was a "risk on" event, though more of a momentum play than a true rally.
On the domestic front, Jefferson County, Alabama, filed for Chapter 9 bankruptcy protection on Wednesday after defaulting on a sewer project that plagued the county for nearly two decades. The county, which is home to Alabama's largest city, Birmingham, filed for $4 billion, making it the largest municipal bankruptcy filing in US history.
The story behind the bankruptcy is a pantheon of the the ills plaguing the once-great United States, involving the EPA - which ordered the county to upgrade its sewer system - corrupt local officials, who were offered and took sweetheart deals from - you guessed it - Wall Street speculators. There's blame and shame aplenty to go around, as 22 local officials were indicted and convicted for their roles in the corruption.
The federal government has bailed out banks, insurance companies and automakers, but when it comes to cites where Americans actually live and work, no dice. The county goes belly-up, leaving creditors holding worthless paper. It's an American tragedy brought to you by the crony capitalists spanning the nation.
Also making domestic headlines, RealtyTrac reported that foreclosure filings rose seven percent in October from the previous month, as lenders got back to work after the robo-signing scandal had derailed their efforts for a year. While Nevada remained atop the foreclosure rate for the 58th straight month, California took over as the top dog for October with a 17% spike in default notices. The top ten states for foreclosure activity (these are the places worth considering moving to in the next 3-5 years because housing prices will be ridiculously low) are Nevada, California, Arizona, Florida, Michigan, Georgia, Illinois, Idaho, Oregon and Colorado.
God bless America. We've been in a depression for three years but nobody will admit it. It's a shame, because this is a good country with some very wonderful people, but our political leaders and Wall Street bankers have bastardized the entire financial system.
Tomorrow being Veteran's Day, be sure to honor our living and fallen military men and women, and, maybe, save a little bit of wrath for those who made them fight, and die, for causes that benefitted a few at the expense of the many.
Dow 11,893.86, +112.92 (0.96%)
NASDAQ 2,625.15, +3.50 (0.13%)
S&P 500 1,239.70, +10.60 (0.86%)
NYSE Composite 7,423.64, +70.19 (0.95%)
NASDAQ Volume 1,908,959,750
NYSE Volume 4,015,058,500
Combined NYSE & NASDAQ Advance - Decline: 3629-1866
Combined NYSE & NASDAQ New highs - New lows: 36-104
WTI crude oil: 97.78, +2.04 (WTI is becoming WTF. Oil up more than $20 in the past six weeks.)
Gold: 1,759.60, -32.00
Silver: 34.11, -0.26
Thursday, November 10, 2011
Financing Your Personal Injury Claim
We've all seen the ads for personal injury lawyers on TV, promising to fight for your rights and help you obtain a settlement from an insurance company.
It's big business and personal injury settlements or awards by courts can run into the tens or hundreds of thousands of dollars, and, in severe or exceptional cases, even more. The lawyers at most high-quality personal injury firms are battle-tested and necessary for claimants fighting insurance companies, all of which have their own legal teams of highly qualified attorneys.
While getting a lawyer to handle your case is usually as easy as making a phone call - because most will work on a percentage fee basis with minimal up-front costs - waiting to get paid on your claim can be stressful, since many times, the personal injury sufferer will be out of work while the slow court process proceeds.
Because of the long time between an accident and an award, there are companies which provide lawsuit cash advances to bridge the income gap and offer personal injury claimants money to make ends meet while their lawsuit commences.
Terms are fairly straightforward and the money can be repaid upon receipt of the personal injury award. Leave it to the legal profession to come up with a solution to what can be a serious situation.
It's big business and personal injury settlements or awards by courts can run into the tens or hundreds of thousands of dollars, and, in severe or exceptional cases, even more. The lawyers at most high-quality personal injury firms are battle-tested and necessary for claimants fighting insurance companies, all of which have their own legal teams of highly qualified attorneys.
While getting a lawyer to handle your case is usually as easy as making a phone call - because most will work on a percentage fee basis with minimal up-front costs - waiting to get paid on your claim can be stressful, since many times, the personal injury sufferer will be out of work while the slow court process proceeds.
Because of the long time between an accident and an award, there are companies which provide lawsuit cash advances to bridge the income gap and offer personal injury claimants money to make ends meet while their lawsuit commences.
Terms are fairly straightforward and the money can be repaid upon receipt of the personal injury award. Leave it to the legal profession to come up with a solution to what can be a serious situation.
Wednesday, November 9, 2011
Stocks Whacked as Italian Bonds Blow Out, Euro Dives
Today was all about Italy, in the aftermath of Tuesday's tumultuous parliamentary session, Italian Prime Minister Silvio Berlusconi announced that he would resign after parliament passes economic reforms demanded by the European Union. He also promised not to run in Italy's next election.
While the initial market response to Berlusconi's departure was mildly positive, in the belief that a new government might make a difference, the bond markets broadly disagreed, sending yields on Italy's 10-year note to over 7%, a level broadly believed to be one at which Italy would not be able to finance itself. The country has built up a mammoth debt load of €1.9 trillion, and financial experts agree that at 7% on the 10-year and an even higher rate on the five-year, Italy will be unable to avoid either default or a bailout by EU authorities.
With the bond markets were facing up to Italy's demise, the Euro traded lower against other currencies, including the US dollar, which, in turn caused a collapse in US equity prices, culminating in a mammoth decline on the Dow of nearly 400 points or 3.2%, with the other major indices dropping by even larger percentages.
The conditions in Europe continue to deteriorate by the day, and the Italian problems could bring on an even more calamitous situation than has prevailed prior to this most recent debt catastrophe because Italy is simply too large for a bailout. There simply is not enough money available to the ECB or the recently-enlarged EFSF.
All other economic data and financial news paled by comparison to the realization that Italy would follow Ireland, Greece and Portugal down the debt-hole.
Every market sector was lower, led by financial stocks, conglomerates and basic materials, each of which registered a decline of more than 4.5 percent.
It was a dismal day for stocks, but one the market had been anticipating, though hoping it would never come. A default by a country the size of Italy may cause the Euro to become vastly devalued (and maybe even doom it as a viable currency), pushing up the US dollar, exactly the opposite of what the Wall Street insiders prefer. It's another seminal moment in the financial crisis that will not end.
Dow 11,780.94, -389.24 (3.20%)
NASDAQ 2,621.65, -105.84 (3.88%)
S&P 500 1,229.11, -46.81 (3.67%)
NYSE Composite 7,357.91, -314.00 (4.09%)
NASDAQ Volume 2,107,168,250
NYSE Volume 4,639,047,500
Combined NYSE & NASDAQ Advance - Decline: 634-5048
Combined NYSE & NASDAQ New highs - New lows: 39-97
WTI crude oil: 95.74, -1.06
Gold: 1,791.60, -7.60
Silver: 34.36, -0.79
While the initial market response to Berlusconi's departure was mildly positive, in the belief that a new government might make a difference, the bond markets broadly disagreed, sending yields on Italy's 10-year note to over 7%, a level broadly believed to be one at which Italy would not be able to finance itself. The country has built up a mammoth debt load of €1.9 trillion, and financial experts agree that at 7% on the 10-year and an even higher rate on the five-year, Italy will be unable to avoid either default or a bailout by EU authorities.
With the bond markets were facing up to Italy's demise, the Euro traded lower against other currencies, including the US dollar, which, in turn caused a collapse in US equity prices, culminating in a mammoth decline on the Dow of nearly 400 points or 3.2%, with the other major indices dropping by even larger percentages.
The conditions in Europe continue to deteriorate by the day, and the Italian problems could bring on an even more calamitous situation than has prevailed prior to this most recent debt catastrophe because Italy is simply too large for a bailout. There simply is not enough money available to the ECB or the recently-enlarged EFSF.
All other economic data and financial news paled by comparison to the realization that Italy would follow Ireland, Greece and Portugal down the debt-hole.
Every market sector was lower, led by financial stocks, conglomerates and basic materials, each of which registered a decline of more than 4.5 percent.
It was a dismal day for stocks, but one the market had been anticipating, though hoping it would never come. A default by a country the size of Italy may cause the Euro to become vastly devalued (and maybe even doom it as a viable currency), pushing up the US dollar, exactly the opposite of what the Wall Street insiders prefer. It's another seminal moment in the financial crisis that will not end.
Dow 11,780.94, -389.24 (3.20%)
NASDAQ 2,621.65, -105.84 (3.88%)
S&P 500 1,229.11, -46.81 (3.67%)
NYSE Composite 7,357.91, -314.00 (4.09%)
NASDAQ Volume 2,107,168,250
NYSE Volume 4,639,047,500
Combined NYSE & NASDAQ Advance - Decline: 634-5048
Combined NYSE & NASDAQ New highs - New lows: 39-97
WTI crude oil: 95.74, -1.06
Gold: 1,791.60, -7.60
Silver: 34.36, -0.79
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