Editor's Note: There is so much to be said here, I could write for days and not even begin to scratch the surface, so today's normal single post is being broken into two parts, but since this is a blog in reverse chronological order, I'm publishing this part last.
First, an overview of the day's events.
Basically, if you're not up to speed on the destruction of the American financial, legal and constitutional system. The administration and the congress - collectively the worst bunch of people ever elected to public office - have conspired to take $700 billion dollars of taxpayer money, ostensively to bail out Wall Street and foreign firms which are likely already insolvent, and buy up their unsalable bad paper.
There will, as usual, be cursory oversight and some lame, toothless provisions to limit executive pay for plan participants.
Stocks soared on reports suggesting swift passage of the legislation, with bipartisan agreement. President Bush met with Twiddle-Dee and Twiddle-Dum, otherwise known as candidates John McCain and Barack Obama, both of whom pledge change, but, when it really matters, simply go along with the status quo.
The Dow rallied nearly 200 points, though it was up over 300 at different points of the day.
Dow 11,022.06 +196.89; NASDAQ 2,186.57 +30.89; S&P 500 1,209.18 +23.31; NYSE Composite 7,927.87 +159.05
Advancers trampled decliners, 4205-2145, but check out the new highs (23) to new lows (277), 12-1, not very promising. I'd say, even with this artificial stimulus stocks still aren't going anywhere soon, except lower.
Oil gained $2.29, to $108.02. No surprise there, or in metals movement. Gold sank $13.00, to $882.00. Silver fell 17 cents to $13.28.
Continue to part 2...
Thursday, September 25, 2008
Joy Ride Up (and Down) Wall Street (Part 2)
The government, which is supposedly under the purview of the "people" has run amuck. They are not responsive to the wishes of the people. Congressional aides said that calls were coming in to their offices yesterday 99-1 AGAINST any kind of bailout, yet the government presses ahead.
And, sure, we've had these kinds of things before, but this is very different. They are going to sweep away all the wrongdoing with what's likely to become $2 trillion before they're done, with absolutely no accountability.
If the government passes this legislation - and I'm pretty sure that they will - you can kiss this country good bye in less than 20 years. All of the baby boomer generation will have retired by then, most of them to a life of poverty and degradation as prices soar and social security is cut back.
I have three nieces whom I love. Their futures are being wasted by this insidious government only interested in winning the next election. Once any politician gets to Washington, they become part of one bigger party: the ruling class.
Whoever wins the election will do no better. I thought Obama was the agent of change. WELL, HE CAN START BY NOT GOING ALONG WITH THE STATUS QUO. HE'S JUST ANOTHER ONE OF THEM, AND SO IS MCCAIN. We will get no change, no matter who wins. Just more of the same. And slowly, slowly, our freedoms are eroded and the nation falls further and further into debt and the politicians and Wall Street do as they please while we struggle to get by.
Adieu, America. You are not the country I once knew. You are a perversion, a shadow, a shallow reflection of what once was great.
I am thoroughly disgusted and beyond enraged. I am now the opposition.
A message posted to a message board called the bailout plan, "...a fascist takeover hiding behind a cultivated emergency."
That language is completely appropriate.
How this affects you and me: a rough outline
Every taxpayer (different from every American, as it excludes children, retirees, those on welfare or other public assistance, etc.) will incur about $5000 of debt, maybe $10,000 when it's all over, to be paid by current and yes, future taxpayers. Plus interest.
You won't get a bill for it, but you will notice that the government, in its infinite wisdom will work out other "market mechanisms" to ratchet up the pressure on the American taxpayer.
Highway tolls, fees for licenses, excise taxes, property taxes, sales taxes, will all increase all the way down the food chain. Services from government will shrink in size and scope. Basic necessities will cost more: gas, food, heating oil. The government will impose more tariffs on foreign goods to help pay the bill. They don't care that you'll pay more for anything imported, and just about everything is.
The dollar will continue to sink in value. Corporations, most of which do business outside the US will prosper. Home values will decline or stagnate. Wages will stagnate while the govt. takes more out of your paycheck.
So, while there's no actual bill to pay, the money is coming out of your pocket in the form of increased fees, inflation, and a lower standard of living which has as an ultimate end, nothing but devastation and failure, because the bill never gets paid, never gets forgiven.
The bailout doesn't even begin to solve the problem, it exacerbates it, kicking the can down the road. Trouble is, the road is a dead end.
Our government lies, cheats and steals from the public on a daily basis. And it's time for Americans to do the same to them. Stop paying whatever taxes you can. The loopholes are out there. I urge everyone to file a dba and form a home business, take all the deductions and lose money. Stiff them right back. What are they going to do? Put us all in jail.
Don't laugh. They might. The greed and hubris of this government knows no bounds. The stupidity of their idealism is that eventually, there will be no one left from which to steal.
The truth of the matter - which they won't tell us, ergo, the bailout - is that half of the major banks and financial institutions are already insolvent and so is the government. After this and Fannie and Freddie, we'll be over $11,000,000,000,000 in debt. And that, my friends, is $36,700 for every man, woman and child in America owed to foreign governments and lien holders. Pay up!
And, sure, we've had these kinds of things before, but this is very different. They are going to sweep away all the wrongdoing with what's likely to become $2 trillion before they're done, with absolutely no accountability.
If the government passes this legislation - and I'm pretty sure that they will - you can kiss this country good bye in less than 20 years. All of the baby boomer generation will have retired by then, most of them to a life of poverty and degradation as prices soar and social security is cut back.
I have three nieces whom I love. Their futures are being wasted by this insidious government only interested in winning the next election. Once any politician gets to Washington, they become part of one bigger party: the ruling class.
Whoever wins the election will do no better. I thought Obama was the agent of change. WELL, HE CAN START BY NOT GOING ALONG WITH THE STATUS QUO. HE'S JUST ANOTHER ONE OF THEM, AND SO IS MCCAIN. We will get no change, no matter who wins. Just more of the same. And slowly, slowly, our freedoms are eroded and the nation falls further and further into debt and the politicians and Wall Street do as they please while we struggle to get by.
Adieu, America. You are not the country I once knew. You are a perversion, a shadow, a shallow reflection of what once was great.
I am thoroughly disgusted and beyond enraged. I am now the opposition.
A message posted to a message board called the bailout plan, "...a fascist takeover hiding behind a cultivated emergency."
That language is completely appropriate.
How this affects you and me: a rough outline
Every taxpayer (different from every American, as it excludes children, retirees, those on welfare or other public assistance, etc.) will incur about $5000 of debt, maybe $10,000 when it's all over, to be paid by current and yes, future taxpayers. Plus interest.
You won't get a bill for it, but you will notice that the government, in its infinite wisdom will work out other "market mechanisms" to ratchet up the pressure on the American taxpayer.
Highway tolls, fees for licenses, excise taxes, property taxes, sales taxes, will all increase all the way down the food chain. Services from government will shrink in size and scope. Basic necessities will cost more: gas, food, heating oil. The government will impose more tariffs on foreign goods to help pay the bill. They don't care that you'll pay more for anything imported, and just about everything is.
The dollar will continue to sink in value. Corporations, most of which do business outside the US will prosper. Home values will decline or stagnate. Wages will stagnate while the govt. takes more out of your paycheck.
So, while there's no actual bill to pay, the money is coming out of your pocket in the form of increased fees, inflation, and a lower standard of living which has as an ultimate end, nothing but devastation and failure, because the bill never gets paid, never gets forgiven.
The bailout doesn't even begin to solve the problem, it exacerbates it, kicking the can down the road. Trouble is, the road is a dead end.
Our government lies, cheats and steals from the public on a daily basis. And it's time for Americans to do the same to them. Stop paying whatever taxes you can. The loopholes are out there. I urge everyone to file a dba and form a home business, take all the deductions and lose money. Stiff them right back. What are they going to do? Put us all in jail.
Don't laugh. They might. The greed and hubris of this government knows no bounds. The stupidity of their idealism is that eventually, there will be no one left from which to steal.
The truth of the matter - which they won't tell us, ergo, the bailout - is that half of the major banks and financial institutions are already insolvent and so is the government. After this and Fannie and Freddie, we'll be over $11,000,000,000,000 in debt. And that, my friends, is $36,700 for every man, woman and child in America owed to foreign governments and lien holders. Pay up!
Wednesday, September 24, 2008
Just Another $700,000,000,000 Day at the Office
The debate on Capitol (or should it be "Capital") Hill rages over whether to grant Treasury Secretary Henry Paulson a $700 billion check to ball out failing - or already failed - financial institutions.
On Tuesday, the Secretary and Fed head Ben Bernanke gave testimony and fielded questions from the Senate. Today, it was members of the House of Representatives who took turns poking and prodding the "Desperate Duo." The hue and cry for accountability, protection and limitations on executive pay could not have been louder.
On the last point, Paulson and Bernanke finally gave in, bowing to congress' demands that CEO and top executive pay be slashed for firms participating in the plan. Whatever they lawmakers come up with, it will likely be watered down, non-binding and easily skirted. With $700 billion floating around, who's going to miss a couple hundred million for Paulson's buddies here and there?
The debate also raged on message boards. A message I posted on one such board seemed to sum up the situation to the satisfaction of a number of participants. It follows, in part, below:
That pretty much summarizes my position. Meanwhile, a number of developments overnight and during the day are worth noting.
The FBI has launched a preliminary fraud investigation into the workings of Fannie Mae, Freddie Mac, Lehman Bros., and AIG, along with 22 other firms. The agency seeks information and background leading up to the various bailouts - all manufactured with close care by Paulson and Bernanke, I should add - and whether fraudulent practices were used in the lead-up to the eventual massive bailout proposal now under debate.
Goldman Sachs (Paulson's former firm) and Morgan Stanley were granted quick approval to change their designation from investment banks to holding - or, commercial - banks, in addition, they are seeking exemptions to retain their commodities and other businesses that normally don't fall under the rules. The speed at which these approvals were granted was breathtaking. No accounting, no review, no peering into the firms' practices. I suppose that when you're sweeping billions under the rug, you take care to do so quickly.
Dow 10,825.17 -29.00; NASDAQ 2,155.68 +2.35; S&P 500 1,185.87 -2.35; NYSE Composite 7,768.82 -16.45
President Bush will address the nation at 9:00 ET tonight on the airwaves. Hurrah!
In light of the confluence of events, the markets took a breather, trading in a narrow range. That still didn't prevent declining issues to outpace advancers, 3938-2363, or for new lows to overwhelm new highs, 294-19. Yes, 19.
Commodities were mixed, with oil falling 88 cents, to $105.73, gold up $3.80 to $895.00 and silver up 27 cents to $13.44.
John McCain could simply not resist the opportunity to grandstand, calling for cancellation of Friday's scheduled debate between him and Barack Obama, ostensibly to return to Washington to help get the legislation passed. He must be really worried about debating head-to-head with Obama.
What's sure to follow are calls that the Democrats are dragging their feet on this legislation. The administration surely wants to get its mitts on that bundle of cash and, as usual, they will hold a gun to the head of Democrats and the American public to get it.
What a day!
Volume was extremely light.
NYSE Volume 1,081,259,000
NASDAQ Volume 1,815,884,000
On Tuesday, the Secretary and Fed head Ben Bernanke gave testimony and fielded questions from the Senate. Today, it was members of the House of Representatives who took turns poking and prodding the "Desperate Duo." The hue and cry for accountability, protection and limitations on executive pay could not have been louder.
On the last point, Paulson and Bernanke finally gave in, bowing to congress' demands that CEO and top executive pay be slashed for firms participating in the plan. Whatever they lawmakers come up with, it will likely be watered down, non-binding and easily skirted. With $700 billion floating around, who's going to miss a couple hundred million for Paulson's buddies here and there?
The debate also raged on message boards. A message I posted on one such board seemed to sum up the situation to the satisfaction of a number of participants. It follows, in part, below:
Fannie and Freddie, the guarantors of about 50% of all mortgage loans in the US have already been taken over by the govt. The "banks" who made the loans repackaged the mortgages and sold them to investors.
The stupidity of the top financial firms was in their greed, they kept a lot of these mortgage packages - officially off their books - but still there, and in some cases borrowed against those same, bad funds to leverage themselves even more, until it all began to unravel.
Instead of dispersing the risk, they kept much of the risk concentrated in their off-balance sheet transactions, a la Enron. There are numerous parties and counter parties, all leveraged out through derivatives which will cause unknown damage across the credit spectrum.
At this point in time, the $700 billion has little to do with mortgages, and much more to do with credit risk, leverage and derivative exposure by top financial firms. There's no regulation of this money and risk and it continues to flare up as companies are exposed. Some of it is criminal, some just bad judgment. These companies caused the problem by not diversifying risk like they were supposed to according to their models and were leveraged 35-1 in some cases. Now it is unwinding and the carnage could be great though there will be survivors.
It needs to be unwound without bailouts and tax money or else it will just continue and will result in a real catastrophe down the road. You can't just play games and never get caught. There are consequences and the bailout is designed to take the burden off the financial companies which will be harmed or are already insolvent.
That pretty much summarizes my position. Meanwhile, a number of developments overnight and during the day are worth noting.
The FBI has launched a preliminary fraud investigation into the workings of Fannie Mae, Freddie Mac, Lehman Bros., and AIG, along with 22 other firms. The agency seeks information and background leading up to the various bailouts - all manufactured with close care by Paulson and Bernanke, I should add - and whether fraudulent practices were used in the lead-up to the eventual massive bailout proposal now under debate.
Goldman Sachs (Paulson's former firm) and Morgan Stanley were granted quick approval to change their designation from investment banks to holding - or, commercial - banks, in addition, they are seeking exemptions to retain their commodities and other businesses that normally don't fall under the rules. The speed at which these approvals were granted was breathtaking. No accounting, no review, no peering into the firms' practices. I suppose that when you're sweeping billions under the rug, you take care to do so quickly.
Dow 10,825.17 -29.00; NASDAQ 2,155.68 +2.35; S&P 500 1,185.87 -2.35; NYSE Composite 7,768.82 -16.45
President Bush will address the nation at 9:00 ET tonight on the airwaves. Hurrah!
In light of the confluence of events, the markets took a breather, trading in a narrow range. That still didn't prevent declining issues to outpace advancers, 3938-2363, or for new lows to overwhelm new highs, 294-19. Yes, 19.
Commodities were mixed, with oil falling 88 cents, to $105.73, gold up $3.80 to $895.00 and silver up 27 cents to $13.44.
John McCain could simply not resist the opportunity to grandstand, calling for cancellation of Friday's scheduled debate between him and Barack Obama, ostensibly to return to Washington to help get the legislation passed. He must be really worried about debating head-to-head with Obama.
What's sure to follow are calls that the Democrats are dragging their feet on this legislation. The administration surely wants to get its mitts on that bundle of cash and, as usual, they will hold a gun to the head of Democrats and the American public to get it.
What a day!
Volume was extremely light.
NYSE Volume 1,081,259,000
NASDAQ Volume 1,815,884,000
Tuesday, September 23, 2008
The Self-Fulfilling Financial Meltdown Prophecy
The Gospel according to Bernanke and Paulson:
Heed ye these dire warnings. Iffeth thou do not giveth the sum of seven hundred billion US drachmas to your brethren in the financial services industries, whatfor good are ye, oh, congress!
For iffeth thou shall fail to giveth away the money of the taxpayers to the richest men in the world, a terrible plague shall befall both of your houses: those of the House and yeah, that of the Senate as well.
No companies shall be spared the wrath of the vicious economic maelstrom which will surely come iffeth thou do not giveth over the money before the Sabbath, or Friday, or whenever you decide to go into recess, whichsoever of these comes first.
Heed ye these words well and giveth without oversight or conditions and without restraint on the prophets Bernanke and Paulson, for they shall lead us into the desert, and out, and probably back in and out and eventually down a black hole of debt.
These are the words of a pair of Wall Street snake oil salesmen.
That the financial crisis occurs on the week before quadruple-witching (last week) and in the heat of a taut presidential and congressional election is just a little too coincidental in its timing, isn't it?
Am I the only one who smells something fishy here, especially noting that every day the congress delays passage of the "emergency" bailout plan for failed Wall Street banks, stocks slide further still?
Monday was full of drama, and Tuesday was a nice sequel, with the markets tacking on further losses as Bernanke and Paulson testified before congress on the urgent need for $700 billion dollars.
Really! They want it before the week is over, and without deliberation and without the usual markup process and without oversight provisions, and $150 billion - as proposed by Senator Schumer - is not enough, and no cuts to executive pay for companies who participate in the largest single fraud ever perpetrated on the American taxpayer. Right away! The credit markets are frozen, don't you know?
Well, the ordinary American just isn't really buying it. Life keeps going on as normal in most parts of the country. People have ready cash or credit and sure, there's some suffering, but that's always been there. And those foreclosed homes, well, sell them at a discount. Hey, the people who bought them lost. The banks who lent the money, based on bogus appraisals and worthless credit checks, or no credit checks, can stand to lose a few billion.
Besides, weren't these loans all packaged up and re-sold to unwitting investors? Why do the banks and financial institutions have these toxic tranches of mortgage debt on their books. Are they just that stupid? And if they are, they deserve to go down the memory hole. No bailout. Not now, not ever, not on my - and your - dime. No siree!
Wall Street, meanwhile, played the part of the wounded puppy again on Tuesday while lawmakers on both sides of the aisle cast doubt on the program and some Republicans, notably Senators Shelby - who wants alternatives - and Bunning, have expressed outright opposition to the plan. Democratic Senator Christopher Dodd said the plan was "not acceptable."
So, get ready for the greedy self-dealers on Wall Street to send the markets into another dizzying decline. The word is out there. Either give us what we want, or we'll break the system.
Many would love to see them try to tank their own companies because for every unscrupulous, corrupt banker or financier, there's another lurking behind every trade and what once was yours becomes mine, and at a much lower price, thank you very much.
As if the stock market wasn't shaky enough on its own. It doesn't need any extra "help" finding a bottom.
Dow 10,854.17 -161.52; NASDAQ 2,153.34 -25.64; S&P 500 1,188.22 -18.87; NYSE Composite 7,785.27 -133.34
Our market guides were right on target again. Declines led advancers, 4419-1951. New lows surged again past new highs, 286-35.
Oil dipped $2.76, to $106.61 on the November contract. Gold was clipped $17.80, ending at $891.20. Silver also fell 28 cents, to $13.17. Commodities behaved normally.
If the market doesn't crash by Friday, it will serve as testament to the recklessness and deceit of both Bernanke and Paulson and their unashamed pleas to help the feckless bankers, "right now." They should both be locked up and the keys tossed away.
My advice to congress - despite them never listening to me ever before - is to do nothing, adjourn and recess on Friday and don't come back until after the election. Sure, the stock market may be down some by then, but I'll bet the US and global financial systems will still be functioning.
Volume was moderate, not like there was a crisis or panic. It's bad, but not that bad.
NYSE Volume 1,152,885,000
NASDAQ Volume 1,999,011,000
Heed ye these dire warnings. Iffeth thou do not giveth the sum of seven hundred billion US drachmas to your brethren in the financial services industries, whatfor good are ye, oh, congress!
For iffeth thou shall fail to giveth away the money of the taxpayers to the richest men in the world, a terrible plague shall befall both of your houses: those of the House and yeah, that of the Senate as well.
No companies shall be spared the wrath of the vicious economic maelstrom which will surely come iffeth thou do not giveth over the money before the Sabbath, or Friday, or whenever you decide to go into recess, whichsoever of these comes first.
Heed ye these words well and giveth without oversight or conditions and without restraint on the prophets Bernanke and Paulson, for they shall lead us into the desert, and out, and probably back in and out and eventually down a black hole of debt.
These are the words of a pair of Wall Street snake oil salesmen.
That the financial crisis occurs on the week before quadruple-witching (last week) and in the heat of a taut presidential and congressional election is just a little too coincidental in its timing, isn't it?
Am I the only one who smells something fishy here, especially noting that every day the congress delays passage of the "emergency" bailout plan for failed Wall Street banks, stocks slide further still?
Monday was full of drama, and Tuesday was a nice sequel, with the markets tacking on further losses as Bernanke and Paulson testified before congress on the urgent need for $700 billion dollars.
Really! They want it before the week is over, and without deliberation and without the usual markup process and without oversight provisions, and $150 billion - as proposed by Senator Schumer - is not enough, and no cuts to executive pay for companies who participate in the largest single fraud ever perpetrated on the American taxpayer. Right away! The credit markets are frozen, don't you know?
Well, the ordinary American just isn't really buying it. Life keeps going on as normal in most parts of the country. People have ready cash or credit and sure, there's some suffering, but that's always been there. And those foreclosed homes, well, sell them at a discount. Hey, the people who bought them lost. The banks who lent the money, based on bogus appraisals and worthless credit checks, or no credit checks, can stand to lose a few billion.
Besides, weren't these loans all packaged up and re-sold to unwitting investors? Why do the banks and financial institutions have these toxic tranches of mortgage debt on their books. Are they just that stupid? And if they are, they deserve to go down the memory hole. No bailout. Not now, not ever, not on my - and your - dime. No siree!
Wall Street, meanwhile, played the part of the wounded puppy again on Tuesday while lawmakers on both sides of the aisle cast doubt on the program and some Republicans, notably Senators Shelby - who wants alternatives - and Bunning, have expressed outright opposition to the plan. Democratic Senator Christopher Dodd said the plan was "not acceptable."
So, get ready for the greedy self-dealers on Wall Street to send the markets into another dizzying decline. The word is out there. Either give us what we want, or we'll break the system.
Many would love to see them try to tank their own companies because for every unscrupulous, corrupt banker or financier, there's another lurking behind every trade and what once was yours becomes mine, and at a much lower price, thank you very much.
As if the stock market wasn't shaky enough on its own. It doesn't need any extra "help" finding a bottom.
Dow 10,854.17 -161.52; NASDAQ 2,153.34 -25.64; S&P 500 1,188.22 -18.87; NYSE Composite 7,785.27 -133.34
Our market guides were right on target again. Declines led advancers, 4419-1951. New lows surged again past new highs, 286-35.
Oil dipped $2.76, to $106.61 on the November contract. Gold was clipped $17.80, ending at $891.20. Silver also fell 28 cents, to $13.17. Commodities behaved normally.
If the market doesn't crash by Friday, it will serve as testament to the recklessness and deceit of both Bernanke and Paulson and their unashamed pleas to help the feckless bankers, "right now." They should both be locked up and the keys tossed away.
My advice to congress - despite them never listening to me ever before - is to do nothing, adjourn and recess on Friday and don't come back until after the election. Sure, the stock market may be down some by then, but I'll bet the US and global financial systems will still be functioning.
Volume was moderate, not like there was a crisis or panic. It's bad, but not that bad.
NYSE Volume 1,152,885,000
NASDAQ Volume 1,999,011,000
Monday, September 22, 2008
Market Chaos: Theater of the Absurd
If you thought last week's market action was wild, hold on. The second act: this week, figures to create such a climate of fear and derision the likes of which most traders and common people have never seen.
Remember 9/11.
That bears repeating: Remember 9/11, when the Twin Towers were felled, supposedly by fires caused by airplanes smashing into them 90 stories above ground. It was fiction then and it is fiction now.
And, you'll recall that the first thing the Bush administration did was to enact the Patriot Act, stripping out habeas corpus and other rights from the constitution and rushed through Congress without deliberation or debate.
The current "crisis" is nothing more than the handiwork of the same criminals. Henry Paulson, Treasury Secretary and former CEO of Goldman Sachs (more on those louts later in this article), put forward a piece of legislation to the congress calling for an "emergency" bailout of Wall Street companies and financiers to the tune of $700 billion - more or less - or else risk the "collapse of the US economy."
The language in Mr. Paulson's proposed legislation included this nugget: "Decisions by the Secretary [of the Treasury] pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Of course it would. The administration is attempting to nationalize all the wealth in America. They've already glommed up most of the mortgage debt through the bailouts of Fannie Mae and Freddie Mac. They now own 80% of AIG, which was the nation's largest insurance firm. They are disguising a complete takeover of America's wealth by scaring everybody into believing that there is no alternative.
They are so utterly corrupt, deceitful, dishonest and ruthless that every American should be scared, not of financial ruin, but of tyranny and a de facto coup d' etat by the same group of "leaders" who marched us into Iraq on threats of "imminent danger", "weapons of mass destruction" and "the smoking gun is a mushroom cloud" rhetoric.
How absurd is it? Take a look at these closing numbers:
Dow 11,015.69 -372.75 (-3.27%); NASDAQ 2,178.98 -94.92 (-4.17%); S&P 500 1,207.09 -47.99 (-3.82%); NYSE Composite 7,918.67 -268.46 (3.28%)
And that's with short-selling of nearly 800 "select" companies being sheltered by the SEC's no-shorting rules which went into effect last week and will expire - however conveniently - on September 29, after congress has acceded to the demands of the Treasury Secretary and has gone into recess, of course.
The proposed Wall Street bailout has raised the ire of a slew of activist groups and the call is unified: No deal without accountability, enforcement and financial penalties to corporate executives. Better yet, some groups are calling for the best outcome of all: that congress take their scheduled recess beginning this Friday, and stay in recess until after the elections on November 4 without passing any legislation including this rushed, ill-intentioned (and probably unnecessary) bailout proposal.
The level of absurdity reached new levels on Monday as Goldman Sachs and Morgan Stanley - the two remaining investment banks out of five - asked to change their designation from investment bank to commercial bank. If approved, the crooks who robbed corporations of shareholder value for years can now take money directly from consumers as well.
Henry Blodgett makes the case in "Wall St. R.I.P."
More hilarity came from Yahoo's Tech Ticker with columnist
Aaron Task asking if last week was the market bottom.
Judging by the comments and today's results, Mr. Task ought to begin polishing up his resume right quick. His credibility as an economic correspondent is nil.
Market breadth was prominently bearish with decliners trouncing advancers, 5032-1365, or by a 4-1 margin. New lows retook their position above new highs, 182-60. Volume was extremely light due to the lack of short-selling and covering on many issues, general investor disgust and the declines of today represent a beginning of the final unwinding of this overly-leveraged market. Many small investors are clearly on the sidelines, and certainly, fund managers are shedding even more dead weight from their portfolios in light of the extreme market conditions, to say nothing of the impending end of the third quarter.
Commodities boomed once again, with crude oil for November delivery settling up $6.62, to $109.37. After spiking up $25, a clear threat from the PPT and those calling the shots of what's to come if congress doesn't grant Paulson and Treasury wide-ranging, sweeping powers to take over the wealth of the nation, the October contract closed at $120.92, up $16.37, the largest one-day gain ever for the slimy commodity. Gold was up $44.30, to $902.00. Silver, the day's best performer, was up nearly 8%, gaining 97 cents, to $13.45 per ounce.
NYSE Volume 1,269,865,000
NASDAQ Volume 1,914,590,000
Remember 9/11.
That bears repeating: Remember 9/11, when the Twin Towers were felled, supposedly by fires caused by airplanes smashing into them 90 stories above ground. It was fiction then and it is fiction now.
And, you'll recall that the first thing the Bush administration did was to enact the Patriot Act, stripping out habeas corpus and other rights from the constitution and rushed through Congress without deliberation or debate.
The current "crisis" is nothing more than the handiwork of the same criminals. Henry Paulson, Treasury Secretary and former CEO of Goldman Sachs (more on those louts later in this article), put forward a piece of legislation to the congress calling for an "emergency" bailout of Wall Street companies and financiers to the tune of $700 billion - more or less - or else risk the "collapse of the US economy."
The language in Mr. Paulson's proposed legislation included this nugget: "Decisions by the Secretary [of the Treasury] pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Of course it would. The administration is attempting to nationalize all the wealth in America. They've already glommed up most of the mortgage debt through the bailouts of Fannie Mae and Freddie Mac. They now own 80% of AIG, which was the nation's largest insurance firm. They are disguising a complete takeover of America's wealth by scaring everybody into believing that there is no alternative.
They are so utterly corrupt, deceitful, dishonest and ruthless that every American should be scared, not of financial ruin, but of tyranny and a de facto coup d' etat by the same group of "leaders" who marched us into Iraq on threats of "imminent danger", "weapons of mass destruction" and "the smoking gun is a mushroom cloud" rhetoric.
How absurd is it? Take a look at these closing numbers:
Dow 11,015.69 -372.75 (-3.27%); NASDAQ 2,178.98 -94.92 (-4.17%); S&P 500 1,207.09 -47.99 (-3.82%); NYSE Composite 7,918.67 -268.46 (3.28%)
And that's with short-selling of nearly 800 "select" companies being sheltered by the SEC's no-shorting rules which went into effect last week and will expire - however conveniently - on September 29, after congress has acceded to the demands of the Treasury Secretary and has gone into recess, of course.
The proposed Wall Street bailout has raised the ire of a slew of activist groups and the call is unified: No deal without accountability, enforcement and financial penalties to corporate executives. Better yet, some groups are calling for the best outcome of all: that congress take their scheduled recess beginning this Friday, and stay in recess until after the elections on November 4 without passing any legislation including this rushed, ill-intentioned (and probably unnecessary) bailout proposal.
The level of absurdity reached new levels on Monday as Goldman Sachs and Morgan Stanley - the two remaining investment banks out of five - asked to change their designation from investment bank to commercial bank. If approved, the crooks who robbed corporations of shareholder value for years can now take money directly from consumers as well.
Henry Blodgett makes the case in "Wall St. R.I.P."
More hilarity came from Yahoo's Tech Ticker with columnist
Aaron Task asking if last week was the market bottom.
Judging by the comments and today's results, Mr. Task ought to begin polishing up his resume right quick. His credibility as an economic correspondent is nil.
Market breadth was prominently bearish with decliners trouncing advancers, 5032-1365, or by a 4-1 margin. New lows retook their position above new highs, 182-60. Volume was extremely light due to the lack of short-selling and covering on many issues, general investor disgust and the declines of today represent a beginning of the final unwinding of this overly-leveraged market. Many small investors are clearly on the sidelines, and certainly, fund managers are shedding even more dead weight from their portfolios in light of the extreme market conditions, to say nothing of the impending end of the third quarter.
Commodities boomed once again, with crude oil for November delivery settling up $6.62, to $109.37. After spiking up $25, a clear threat from the PPT and those calling the shots of what's to come if congress doesn't grant Paulson and Treasury wide-ranging, sweeping powers to take over the wealth of the nation, the October contract closed at $120.92, up $16.37, the largest one-day gain ever for the slimy commodity. Gold was up $44.30, to $902.00. Silver, the day's best performer, was up nearly 8%, gaining 97 cents, to $13.45 per ounce.
NYSE Volume 1,269,865,000
NASDAQ Volume 1,914,590,000
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