Ireland and FBI Hedge Fund Raid Don't Dent POMO-Driven Market

According to the World Bank, the population of Ireland (circa. 2008) is 4,425,675. On Sunday, ministers from the ECB, EC, IMF and the Irish government announced a bailout plan for the nation worth roughly $110 billion, or, $24,853.00 for each and every citizen on the island nation.

Naturally, the citizenry won't be getting any of the money. That's going to the banks. The public will be saddled with the debt, an amount so monstrous that one would wisely assume that it will never be repaid. The reason: the banks. Why would it be any other entity running up amazing mountains of debt. Earlier this year, the Irish government bailed out the banks to the tune of about $60 billion, but apparently, that wasn't quite enough, and now the government itself is threatened, by the populace on one side and the IMF and European Union on the other.

Some members of the government are already saying that they won't vote in favor of the package, and are calling for new elections in January. Protests sprung up on Monday, though they were small, organized by Sinn Fein, the political arm of the IRA.

Essentially, Ireland is the second in line - after Greece - for where most of Southern Europe is going: begging to the other members of the EU and the IMF for more money to keep their bankrupt economies going. Portugal is widely believed to be next, then Spain and Italy. These nations, should they accept the same or similar terms as the Irish, will be indentured to global banking interests until they default on the loans or rise up and through out the bankers and overthrow their governments. Either way, the populace will be the worse off for it, as tax hikes are certain on the one hand, and desperation and poverty in an every man for himself environment on the other.

There are those, and their numbers are growing, who believe that it's time for the people to take back their nations, though nobody is particularly keen on the idea of any brutal government crackdown that would surely come in response to a popular uprising.

Thus, the question on the minds of many Europeans tonight is: Would you rather pay taxes and just work your life away, saving nothing, to preserve the present order, or take the chance that things might be better after a bloody coup, a period of anarchy and a reformed Europe that isn't under the thumb of the banking and government oligarchy?

Good question. Only the future holds the answer. Ireland is giving us clues, though, thus far, most prefer the status quo, no violence and payment of tribute without end to governments which have proven to be at least incompetent and at worst, corrupt to the core.

Here in America, the condition is not nearly so dire, but it's close. Our $14 trillion debt is not going away any time soon, our government seems to stumble from one crisis to the next, never fixing anything, while the banks keep hiding their losses off their balance sheets through eased accounting rules and the help of the Federal Reserve.

Today's POMO (money for Wall Street) was a paltry $8.3 billion. More is scheduled for tomorrow, then after a break for Wednesday and Thursday, the injections of cash will continue without respite every business day through December 9. It's how we here in America have now confronted our massive, non-payable debt. We print more money.

The other major story today involved FBI raids on three hedge funds suspected of insider trading. That sent stocks - already down on the rising dollar and Irish blarney - to their lowest levels of the day, the Dow down by nearly 150 points just before 1:00 pm. But - and there's always a "but" these days - with all that POMO money sloshing around, this decline, like all others before it, was viewed as a buying opportunity by the Primary Dealers, flush with cash and stocks rallied for the remainder of the session, closing with marginal losses on the major exchanges, the NASDAQ actually sporting a solid advance.

Dow 11,178.58, -24.97 (0.22%)
NASDAQ 2,532.02, +13.90 (0.55%)
S&P 500 1,197.84, -1.89 (0.16%)
NYSE Composite 7,610.30, -30.78 (0.40%)

Advancers narrowly defeated decliners, 3249-3198. There were 368 new highs and just 68 new lows. Volume, the broken record, was laughably low.

NASDAQ Volume 1,865,878,625
NYSE Volume 4,305,755,500

Oil finished the day down just 24 cents, at $81.74, though it was off more than a dollar earlier in the day. Gold was lower earlier, but rallied to $1366.60, a gain of $12.50. Silver also showed upside, gaining 52 cents, to $27.87.

Dull End to a Wild Fortnight

At the end of a wild two weeks, everybody needed a break and they got one, in one of the slowest trading days in some time. News flow was also minimal.

In sync with the rest of the market, General Motors (GM), on its second day of trading as a new, reformed entity, fell almost back to its IPO price, hitting 33.11 at just about 10:00 am. The stock and the rest of the market (Dow was down 62 points) took a sudden turn and churned to slight, positive gains by the sessions end.

Overall, the major indices have barely moved since the mid-term elections. The Fed's incessant currency devaluation efforts have also, thus far been for naught.

Dow 11,203.55, +22.32 (0.20%)
NASDAQ 2,518.12, +3.72 (0.15%)
S&P 500 1,199.73, +3.04 (0.25%)
NYSE Composite 7,641.08, +21.14 (0.28%)
NASDAQ Volume 1,878,265,250
NYSE Volume 3,921,869,500

Advancers finished well ahead of losers, 3546-2632. There were 279 new highs and 73 new lows. Volume was extremely light.

Oil was flat, at $81.85. Silver last printed 27.35, +0.36. Gold spot closed at $1354.10, up 60 cents.

Rinse, repeat, ponder the future. Ireland remains in talks with the EC, ECB and IMF. They're getting the "full monty" from the financiers, if you will.

Market Motors Ahead on GM IPO

The entire trading day was a well-orchestrated event staged by the power brokers of Wall Street, the government and the shills on CNBC, designed exclusively to give the pet project of the bailout bunch, General Motors, a bright and cheery IPO send-off.

Shares of GM's rebirth IPO (initial public offering - somewhat of an oxymoron in this case) priced the previous day at $33 and opened with immediate upticks shortly after the general markets had commenced trading. That it would get a positive set up was assured by a gargantuan ramp-up in the futures, ostensibly on news that Ireland was veering toward accepting a bailout from either the EU or the IMF or a combination of both. Only in these wacky times can the fact that a nation is being saved from ruin by the very same bankers who ruined it foment a powerful rally, but, that's the world in which we now live.

The set-up got GM off to a nice start with the rest of he market despite fears that some traders would "flip" the stock, and surely some did. Shares of GM hit a high of 35.99 shortly after the open and retreated the rest of the day, hitting a low of 33.89 before settling at 34.19 at the close for a gain of 3.61%, no big deal.

The Fed pumped more money in the direction of the primary dealers. This is a permanent fixture now as the Fed has already set down a timetable for a daily POMO through December 9, with the exception of the Wednesday before and the Friday after Thanksgiving (next week).

Another interesting note was news that Warren Buffet was to receive the Medal of Freedom, just a day after practically falling all over himself in praise of the government in his NY Times op-ed. At least he'll be in equally-suspect company. German Chancellor Angela Merkel and former US President George H.W. Bush are among other recipients named by President Obama.

From this we can only surmise that the level of greed, corruption and naked narcissism has finally reached critical mass amongst the elitists.

Dow 11,181.23, +173.35 (1.57%)
NASDAQ 2,514.40, +38.39 (1.55%)
S&P 500 1,196.69, +18.10 (1.54%)
NYSE Composite 7,619.94, +131.18 (1.75%)
NASDAQ Volume 2,083,305,250.00
NYSE Volume 5,373,779,000

Advancers trounced decliners, 5093-1419; new highs surpassed new lows for the second straight session, 299-59, but volume, up to 20% of which on the NYSE was attributed to trades on GM, was weak.

Commodities also ramped up. The front end of the crude oil futures gained $1.41, to $81.85. Gold picked up $16.10, to $1,353.00, while silver rose more than 5%, up by $1.32, to $26.83.

Unemployment claims were little changed from the previous week and October stock options expire tomorrow. The latest word from the continent is that Irish leaders are still resistant to a bailout, though the pressure is building for them to take the money and plunge the country into an even worse situation, with bills and interest owing to the IMF with no hope of ever paying its way out. This same thing has happened before, in Argentina and other South American countries. The usual outcome is the rape of the nation's wealth to the detriment of the populace.

Erin go Bragh, indeed.

A Fairly Quiet Day Awakens Warren Buffett

Ireland didn't accept the EU or IMF offers for a bank bailout, nor did they default on their debt, and the mortgage/housing/foreclosure problems also didn't go away because the AGs of 50 states are in negotiations on a settlement with the banks.

But Warren Buffet's fawning praise for the worst scoundrels in the government, published today as an op-ed "letter" from "Nephew Warren" to Uncle Sam raised more than just eyebrows around the financial world and in the public conscience.

Buffet, one of the world's richest men, benefitted greatly from the 2008 bank bailouts, snatching up a piece of Goldman Sachs (about $5 billion worth) and Wells Fargo, putting the Oracle of Omaha clearly in the camp of the serial monetary abusers atop our grand government/industry pyramid.

His effort at humor or insight was simply lost on most people, especially those wh have been kicked out of their homes, lost jobs or simply are having trouble making ends meet in the worst economy since the Great Depression. Buffet singled out Hank Paulson, Sheila Bair, Tim Geithner, George W. Bush and Ben Bernanke for acting with "courage and dispatch" amidst the evolving crisis.

The piece came as somewhat of a surprise from Buffett, normally fairly apolitical, expressing thanks from a government of which he is often critical.

Other than that, the Fed pumped another $7..9 billion into the primary dealers and stocks stalled once again. So far, even though it's still early in the game, the Fed's QE2 hasn't amounted to much of anything, and since the money goes to banks, who will likely keep it rather than lend it, it isn't going to do anything. In truth, QE2 is nothing more than a backdoor bailout for the banks suffering with heavy real estate losses both on and off their books. But, who's looking?

Dow 11,007.88, -15.62 (0.14%)
NASDAQ 2,476.01, +6.17 (0.25%)
S&P 500 1,178.59, +0.25 (0.02%)
NYSE Composite 7,488.76, +16.13 (0.22%)

Advancing issues led decliners, 4719-2726, and new highs took back the advantage from new lows after relinquishing control for a day, yesterday, 179-80. There's quite a bit of pumping in individual issues keeping the lows and highs separated at this point. Obviously, with options expiration just two days off, there's plenty of arbitrage between stock prices, puts and calls to call this any kind of "orderly" market. It is anything but.

Volume continued in the doldrums as it has for the entire year.

NASDAQ Volume 1,836,918,250.00
NYSE Volume 4,508,769,500

Oil continued to nosedive, losing another $1.90 on the day, to $80.44. It had been nearly 90 just a week ago. Gold fell $1.50, to $1,336.90. Silver bucked the trend, up 28 cents, to $25.51.

Fed's QE2 an Abject Failure; Ireland Says NO to EU, IMF

Events are developing, albeit slowly, but as far as one can tell, the incessant pumping of cash into markets by the Fed (another $6 billion today) has not fixed anything, solved anything, nor does it appear that it ever will amount to anything other than another massive debt upon US taxpayers.

With that in mind, maybe it's time for taxpayers to consider exactly what purpose does what they're paying to the government purport. Basically, every dime a taxpayer has sent to Washington, DC in the past two years has been very much like throwing said dime into a wishing well. Nothing changes, no charges will ever be brought against the openly criminal banks and congress simply covers up for them.

In Ireland, forces are at work trying to get the Irish government to accept austerity measures from either the EU or IMF or both, expressly to BAIL OUT THEIR INSOLVENT BANKS. It's an important distinction that the Irish people and the Irish government are not - by and large - not in default, it is the banks that are in deep, deep trouble, trouble that threatens - and should - spill over to Portugal, Italy, Spain, Greece, then France, the UK and eventually here to the US.

The entire financial disaster we have been suffering over the past two years has been entirely the fault of the banks, in every country, who pledge allegiance to no nation, only to money. The time has come for the people of countries around the world to DEMAND that their governmental representatives refuse any further dealings with the banks, to come to the truth that the banks are criminals of the grandest scale, and that they need to be charged, prosecuted and made to make reparations and serve time AS CRIMINALS.

The banks have brought the world to a standstill, yet the politicians - save a few brave souls in Ireland, possibly - have neither the inclination nor the raw nerve to speak the truth and bring JUSTICE.

We will shortly learn that even state Attorneys General have no backbone and are likely paid handsomely by the banks, having already wrapped up their investigations and are seeking a settlement with the banks rather than prosecuting them for the widespread abuses that have recently come to light in residential foreclosures.

The banks continue to steal the wealth of the people and the politicians are only interested in sweeping the problems under various rugs which now are so lumpy that one cannot walk upon them.

In light of ongoing developments, we advise withdrawing all unnecessary funds from any large bank, those being mostly Bank of America, JP Morgan Chase, Wells Fargo and Citigroup, and having as little to do with them as possible. If the banks have no means of accessing the money of people, they will die a long, slow, painful death. While a quick resolution via the truth is preferable, a long slow turning of the screws may have to do.

God save us; we are all slaves to the banks.

Meanwhile, Wall Street voiced its general displeasure with all things once again, for the fifth time in the last seven session (six of seven for the S&P and NASDAQ) by selling off, this time in more pronounced fashion.

Dow 11,023.50, -178.47 (1.59%)
NASDAQ 2,469.84, -43.98 (1.75%)
S&P 500 1,178.34, -19.41 (1.62%)
NYSE Composite 7,472.63, -144.88 (1.90%)

Declining issues shellacked advancers in the broadest selling seen in months, 5399-1146. New lows took the edge over new highs, ending a long string of wins for the highs stretching back to March, 2009, 237-176. This flip should serve as an absolute, without-a-doubt sell signal to anybody who still has skin in the game. As the author of this blog has advised against stocks since 2007, preferring only cash, silver, gold, raw land and tools of trade as "investments", there will be no pain felt from any market decline, correction or crash, though it appears evident that we are on the cusp of one of the latter two options.

Volume was quite high, another sell signal, considering the depth of today's decline.

NASDAQ Volume 2,261,298,250
NYSE Volume 6,063,200,500

Stocks weren't the only investments losing value. Commodities were roundly hammered. Crude oil fell another $2.52, to $82.34. Foodstuffs - wheat, corn and soybeans - all suffered more than five percent declines in price on the Chicago Board of Trade. Gold's last print was off $31.10, to $1338.40. Silver fell 86 cents, to $25.23, as exchanges continue to increase margin requirements on not just the precious metals but on many diverse commodities.

The global financial system once again is stressed beyond its means, mainly because losses at the world's largest banks have not been realized. Unstable conditions will continue to be the norm until these losses are realized and written down. That has not been an option the banks or the politicians are willing to consider.

There is only one solution which will solve much of the crisis, and that is to shut down many of the global banking interests, including central banks, and limit government's ability to borrow.