Nothing like the deposition of a dictator to raise the animal spirits of the ruthless Wall Street crowd. The self-proclaimed Masters of the Universe are probably plotting now on how to best liberate the newly-free people of Egypt from their valuables.
Meanwhile, back at the exchanges, stocks started lower again and then rapidly moved up, similar to yesterday's trading, though with a little more lift. In addition to the news out of Cairo, the Primary Dealers were once again treated to a little $7 billion POMO, courtesy of their favorite Central Banker, Chairman Ben Bernanke.
Actually, with an overthrown government in the Middle East and $7 billion in walking-around money, one would think that today's results were less-than-adequate. Then again, stocks were extremely overpriced in October of last year, and it's been straight up since then, so there must be a dearth of new suckers... er, investors.
Dow 12,273.26, +43.97 (0.36%)
NASDAQ 2,809.44, +18.99 (0.68%)
S&P 500 1,329.15, +7.28 (0.55%)
NYSE Composite 8,374.89, +37.76 (0.45%)
Volume was pretty thin again, but advancing issued lambasted decliners, 4637-1883. NASDAQ recorded 237 new highs and a mere 25 new lows. On the NYSE, the numbers were skewed even more, with 318 new highs and only 10 new lows.
NASDAQ Volume 2,074,279,250.00
NYSE Volume 4,690,140,000
With tensions subsiding in Egypt, oil traders took down the price by $1.15, to $85.58. By the same rationale, gold fell $2.10, to $1,360.40, and silver was off by 10 cents, to an even $30.00 at the close of trading in NY.
With the markets up, winter coming to a fast end, Mubarak out and nothing but good times ahead, we evoke the spirit of depression-era impresario Ted Lewis, asking the musical question, Is Everybody Happy?
Friday, February 11, 2011
Thursday, February 10, 2011
Dow Ends Win Streak... Barely; Mubarak to Stay, Same with Bernanke
Houston, we have a problem. The markets are no longer liquid enough even for machines to move them. Today's trade, on the back of a gloomy outlook from Cisco (CSCO) after the close on Wednesday, was pathetic, and fitting, upon the widespread rumors that the NYSE would be sold to the Deustch Bourse and that President Mubarak of Egypt would step down.
None of that seemed to matter very much, as well as the rosy picture painted by the release of the current first time unemployment claims, which came in at 383,000, far better than expected.
The markets (or, those who control the markets) would have none of it, at least for the first half-hour of trading, that is. as all major indices dropped right from the opening bell, hitting bottom right about 10:00 am, 1/2 hour into the session. The Dow shed 83 points, but immediately rallied back up 50 points, shaving off the losses and trapping the retail investors who sold in the early part of the day.
For the remainder of the session, stocks vacillated in a narrow range, finally ending nearly unchanged, with the Dow down, the S&P and NASDAQ barely in the green. The Dow snapped an 8-day win streak with a 10-point loss. Ho-hum. It was a day of futility all around as nothing newsworthy seemed to either occur nor move stocks in any clearly-defined direction.
Dow 12,229.29, -10.60 (0.09%)
NASDAQ 2,790.45, +1.38 (0.05%)
S&P 500 1,321.87, +0.99 (0.07%)
NYSE Composite 8,337.13, -6.86 (0.08%)
Advancers and decliners were nearly at a stalemate, with winners ahead slightly at the close, 3281-3170. NASDAQ new highs totaled 175, with new lows at 30. On the NYSE, there were 180 new highs, with 18 new lows. Volume was dull on the NYSE, but rather strong on the NASDAQ, due primarily to heavy selling from Cisco, which reported nearly flat second quarter earnings, but scared some with downbeat forecasts. The 13% drop in the stock was probably a bit exaggerated as seems to the theme these days. Anything even slightly positive or negative results in big moves one way or the other in the most-tightly-wrapped market ever.
NASDAQ Volume 2,512,622,250.00
NYSE Volume 4,705,256,500
Commodities mostly treaded water as well. Oil gained two cents, to $86.73. Gold was off $3.00, to $1,362.50, but silver shed 18 cents, to $30.09.
Put this one in the books and store it for future reference. One gets the feeling that there's quite a bit of tension out there in the trading pits and something big is about to occur. A major sell-off or resumption of the rally would not be much of a surprise over the next two to three sessions.
None of that seemed to matter very much, as well as the rosy picture painted by the release of the current first time unemployment claims, which came in at 383,000, far better than expected.
The markets (or, those who control the markets) would have none of it, at least for the first half-hour of trading, that is. as all major indices dropped right from the opening bell, hitting bottom right about 10:00 am, 1/2 hour into the session. The Dow shed 83 points, but immediately rallied back up 50 points, shaving off the losses and trapping the retail investors who sold in the early part of the day.
For the remainder of the session, stocks vacillated in a narrow range, finally ending nearly unchanged, with the Dow down, the S&P and NASDAQ barely in the green. The Dow snapped an 8-day win streak with a 10-point loss. Ho-hum. It was a day of futility all around as nothing newsworthy seemed to either occur nor move stocks in any clearly-defined direction.
Dow 12,229.29, -10.60 (0.09%)
NASDAQ 2,790.45, +1.38 (0.05%)
S&P 500 1,321.87, +0.99 (0.07%)
NYSE Composite 8,337.13, -6.86 (0.08%)
Advancers and decliners were nearly at a stalemate, with winners ahead slightly at the close, 3281-3170. NASDAQ new highs totaled 175, with new lows at 30. On the NYSE, there were 180 new highs, with 18 new lows. Volume was dull on the NYSE, but rather strong on the NASDAQ, due primarily to heavy selling from Cisco, which reported nearly flat second quarter earnings, but scared some with downbeat forecasts. The 13% drop in the stock was probably a bit exaggerated as seems to the theme these days. Anything even slightly positive or negative results in big moves one way or the other in the most-tightly-wrapped market ever.
NASDAQ Volume 2,512,622,250.00
NYSE Volume 4,705,256,500
Commodities mostly treaded water as well. Oil gained two cents, to $86.73. Gold was off $3.00, to $1,362.50, but silver shed 18 cents, to $30.09.
Put this one in the books and store it for future reference. One gets the feeling that there's quite a bit of tension out there in the trading pits and something big is about to occur. A major sell-off or resumption of the rally would not be much of a surprise over the next two to three sessions.
Wednesday, February 9, 2011
Miracle Rally Sends Dow to 8th Straight Gain
Over the past two days, I've tried to make the case that I am optimistic instead of pessimistic and that the recovery we've been told over and over and over again ad nauseum is actually real and not fully backed by the free printing of money.
Oddly enough, we have in America a free press, but it is largely the one used by the Treasury and the Fed to create money, not the one that enlightens opinion with words of wisdom. I have tried my best to drink the Kool-aid that says all is well, the Fed has the economy under control and that unemployment really is only 9%, when all along I know there are dangers lurking everywhere, the Fed is actually out of control (lost all control when they dropped interest rates to ZERO), and that unemployment in America is much closer to 20% (maybe even above that) than 10% when factoring in all the part-time jobs, heuristic and hedonic measurements and adjustments made by the BLS and other government statistic-throwers.
I simply cannot profess to any kind of fundamental economic theory that would have me believe that the best way to solve a debt and solvency crisis is with more debt and by keeping insolvent companies (banks, GM, Chrysler) afloat with taxpayer dollars. Neither can I avow to any belief in the Federal Reserve, knowledgeable in the fact that the Fed, since 1913, has reduced the buying power of the US dollar by 97% and that since 1971 - when Nixon closed the gold window - the world has been operating with a fantasy reserve currency, backed only by the good faith and credit of the United States of America, the world's biggest borrower and instigator of costly wars for the national "good."
Label me a pessimist if you must, but not before reading this somewhat over-the-top (but not by much) article on why small businesses aren't hiring.
Then read the comments, including this one:
Some of the biggest news today was that concerning the proposed merger of the NYSE/Euronext and the Deutsche Boerse. As it turns out, merger is an incorrect term by which to identify this transaction. Rather, the NYSE is selling itself to the Deutsche Boerse, meaning that even though there will be co-headquarters in New York and Berlin, the Germans will hold the controlling interest - about 60% - meaning one of our most basic institutions, the venerable New York Stock Exchange, will be largely owned by foreigners.
While this is not new nor novel - recall the Japanese buying up most of Manhattan's expensive real estate in the 70s (at inflated prices) - the precedent it sets is troubling. What will we sell next? The Empire State Building, the Statue of Liberty, the Capitol, the White House?
Some may argue that the latter two edifices are already foreign-owned, the title is still officially held by the US government, for now, though, as economics becomes more and more a dark science, that is subject to change. As it is, I am writing from a home heated by fuel supplied by a company based in Spain - a deal backed fully some years ago by Senator Charles (Sellout) Schumer - so, if our energy resources are to be parceled out to foreigners, why not the rest of the country. After all, there's no security risk in that, no?
Maybe having a bunch of rich German bankers running the NYSE is a good thing in disguise. The low volume of trading (Tuesday was the lowest of 2011 so far) is a signal that the exchange may not even be worth what the Germans are supposedly offering, which is about a 10% premium from where the stock (NYX) closed on Tuesday. Maybe it's time for Americans to throw up he white cloth en masse and surrender to the economic forces of the rest of the planet, put up big "for sale" signs in all the harbors and ports, and say goodnight. The party is officially over. Call it a day. Stop pretending that we're "exceptional" and sell us off for parts.
Maybe some of us could actually get a job in the deal. Of course, it would be a wages more commensurate with those in Thailand or Nigreia, but, hey, it's a buyer's market. Maybe the banks can sell off all that unsold REO for pennies on the dollar and retire their debt, along with their businesses. Let's be honest. America is for sale and the parceling out of the NYSE is just one, big, obvious example of just how broke we really are.
Speaking of broke, one thing that the crooks and manipulators on Wall Street simply could not see happen was breaking the string of positive closes by the Dow, which managed, miraculously, devoid of any news, to shake out of its dolorous decline of more than 40 points around 2:45 pm, and close slightly positive for the 8th day in a row. Now I know that America is bankrupt, financially as well as morally.
Strange as it may seem, only the Dow ended in plus territory and it was the only one riding a winning streak. Somebody at Goldman Sachs must have a bet, heavily-leveraged, that the Dow will continue going up for ten straight days. Only two left!
Dow 12,239.89, +6.74 (0.06%)
NASDAQ 2,789.07, -7.98 (0.29%)
S&P 500 1,320.89, -3.68 (0.28%)
NYSE Composite 8,343.84, -36.01 (0.43%)
Declining issues still stomped all over advancers, 4089-2399. New highs outnumbered new lows on the NASDAQ, 162-20; and on the NYSE, 196-13. Volume was down in the pits again, just barely above Tuesday's 2011-low level.
NASDAQ Volume 1,898,219,125.00
NYSE Volume 4,424,957,000
Oil futures finished slightly lower, down 23 cents, to $86.71, as OPEC production reached its highest level in two years and gasoline supplies in the US were at their highest levels in 21 years, due to diminishing demand.
Gold gained $1.40, to $1,365.50, while silver was flat, at $30.28.
In Washington, our comedy channel, otherwise know as congress, proposed some "big" spending cuts in the 2011 budget, which, by the way, is already five months down the road. These cuts of anywhere between $35 billion and $74 billion, are minuscule compared to the overall size of the proposed federal budget ($3.8 trillion) and less than 3% of the proposed deficit.
These aren't cuts, they're a mockery of the American public and the laws of economics.
Lastly, the video not to be missed, in which the difference between homeowners who don't pay mortgages and bankers who cheat at every turn is discussed:
Bankster vs. Deadbeat
Oddly enough, we have in America a free press, but it is largely the one used by the Treasury and the Fed to create money, not the one that enlightens opinion with words of wisdom. I have tried my best to drink the Kool-aid that says all is well, the Fed has the economy under control and that unemployment really is only 9%, when all along I know there are dangers lurking everywhere, the Fed is actually out of control (lost all control when they dropped interest rates to ZERO), and that unemployment in America is much closer to 20% (maybe even above that) than 10% when factoring in all the part-time jobs, heuristic and hedonic measurements and adjustments made by the BLS and other government statistic-throwers.
I simply cannot profess to any kind of fundamental economic theory that would have me believe that the best way to solve a debt and solvency crisis is with more debt and by keeping insolvent companies (banks, GM, Chrysler) afloat with taxpayer dollars. Neither can I avow to any belief in the Federal Reserve, knowledgeable in the fact that the Fed, since 1913, has reduced the buying power of the US dollar by 97% and that since 1971 - when Nixon closed the gold window - the world has been operating with a fantasy reserve currency, backed only by the good faith and credit of the United States of America, the world's biggest borrower and instigator of costly wars for the national "good."
Label me a pessimist if you must, but not before reading this somewhat over-the-top (but not by much) article on why small businesses aren't hiring.
Then read the comments, including this one:
I am a self employed business owner, and my brother is also a small business owner. Neither of us will hire an employee under any circumstance, even if the economy was improving or even just steady. Here is why; the local, state, and Fed governments are out of their f---ing minds with rules, regulations, fines, direct and indirect ( hidden ) taxes. Hiring an employee is almost a form of self destruction where you are forced to provide guarantees to the employee and the state to provide for their well being. OSHA, Labor dept, DOT, Workers Comp., Unemployment, Health Care rules for Cobra, retirement , EPA, Dept. of Environmental Conservation, IRS, State Taxation, etc. etc. and f--k all of that bull---t. Been there, done that, will not do it again. This article describes myself and almost all the self employed people that I know to perfection. When help is needed, hire other self employed guys and gals, 1099 them and you are done. Keep overhead to an absolute minimum.Maybe then, you'll begin to understand my anti-corporate, anti-government opinions.
Some of the biggest news today was that concerning the proposed merger of the NYSE/Euronext and the Deutsche Boerse. As it turns out, merger is an incorrect term by which to identify this transaction. Rather, the NYSE is selling itself to the Deutsche Boerse, meaning that even though there will be co-headquarters in New York and Berlin, the Germans will hold the controlling interest - about 60% - meaning one of our most basic institutions, the venerable New York Stock Exchange, will be largely owned by foreigners.
While this is not new nor novel - recall the Japanese buying up most of Manhattan's expensive real estate in the 70s (at inflated prices) - the precedent it sets is troubling. What will we sell next? The Empire State Building, the Statue of Liberty, the Capitol, the White House?
Some may argue that the latter two edifices are already foreign-owned, the title is still officially held by the US government, for now, though, as economics becomes more and more a dark science, that is subject to change. As it is, I am writing from a home heated by fuel supplied by a company based in Spain - a deal backed fully some years ago by Senator Charles (Sellout) Schumer - so, if our energy resources are to be parceled out to foreigners, why not the rest of the country. After all, there's no security risk in that, no?
Maybe having a bunch of rich German bankers running the NYSE is a good thing in disguise. The low volume of trading (Tuesday was the lowest of 2011 so far) is a signal that the exchange may not even be worth what the Germans are supposedly offering, which is about a 10% premium from where the stock (NYX) closed on Tuesday. Maybe it's time for Americans to throw up he white cloth en masse and surrender to the economic forces of the rest of the planet, put up big "for sale" signs in all the harbors and ports, and say goodnight. The party is officially over. Call it a day. Stop pretending that we're "exceptional" and sell us off for parts.
Maybe some of us could actually get a job in the deal. Of course, it would be a wages more commensurate with those in Thailand or Nigreia, but, hey, it's a buyer's market. Maybe the banks can sell off all that unsold REO for pennies on the dollar and retire their debt, along with their businesses. Let's be honest. America is for sale and the parceling out of the NYSE is just one, big, obvious example of just how broke we really are.
Speaking of broke, one thing that the crooks and manipulators on Wall Street simply could not see happen was breaking the string of positive closes by the Dow, which managed, miraculously, devoid of any news, to shake out of its dolorous decline of more than 40 points around 2:45 pm, and close slightly positive for the 8th day in a row. Now I know that America is bankrupt, financially as well as morally.
Strange as it may seem, only the Dow ended in plus territory and it was the only one riding a winning streak. Somebody at Goldman Sachs must have a bet, heavily-leveraged, that the Dow will continue going up for ten straight days. Only two left!
Dow 12,239.89, +6.74 (0.06%)
NASDAQ 2,789.07, -7.98 (0.29%)
S&P 500 1,320.89, -3.68 (0.28%)
NYSE Composite 8,343.84, -36.01 (0.43%)
Declining issues still stomped all over advancers, 4089-2399. New highs outnumbered new lows on the NASDAQ, 162-20; and on the NYSE, 196-13. Volume was down in the pits again, just barely above Tuesday's 2011-low level.
NASDAQ Volume 1,898,219,125.00
NYSE Volume 4,424,957,000
Oil futures finished slightly lower, down 23 cents, to $86.71, as OPEC production reached its highest level in two years and gasoline supplies in the US were at their highest levels in 21 years, due to diminishing demand.
Gold gained $1.40, to $1,365.50, while silver was flat, at $30.28.
In Washington, our comedy channel, otherwise know as congress, proposed some "big" spending cuts in the 2011 budget, which, by the way, is already five months down the road. These cuts of anywhere between $35 billion and $74 billion, are minuscule compared to the overall size of the proposed federal budget ($3.8 trillion) and less than 3% of the proposed deficit.
These aren't cuts, they're a mockery of the American public and the laws of economics.
Lastly, the video not to be missed, in which the difference between homeowners who don't pay mortgages and bankers who cheat at every turn is discussed:
Bankster vs. Deadbeat
Tuesday, February 8, 2011
Stocks Causing a Boom, or a Mirage?
If you're invested in stocks, you'll be happy to know that the Dow recorded its seventh straight gain today. It's been an incredible run from the last day of January through the first six trading days of February, with the most-watched stock index up a whopping 410 points over the seven-session run and up more than 2200 points since this leg of the rally began on September 1, 2010. That's a nifty 22% gain in just over five months - a very neat trick.
Stocks in general have been a great place to be for the last 23 months, since the bottom on March 9 2009, with the major averages all up more than 80%.
Should one argue with such success? Maybe not. Maybe Ben Bernanke knows exactly what he's doing by continuously inflating the money supply, even though his critics argue that he's causing severe inflation and a bubble in commodities or that his practices will eventually implode in a hyperinflationary event that will kill the US dollar.
So far, the commodity trade has been profitable, and it may be nearing bubble status, though it seems to have calmed recently. The long term effects of Bernanke's runaway money-printing policy will not be evident for many more months, since he's planning on continued bond repurchases (his preferred method of handing out the gelt) through June of this year.
Before that, we'll have great gnashing of teeth and showing of fangs by aroused congressmen, mostly of the Republican variety, and a renewed debate over raising the debt limit to something beyond $15 trillion. The show on the hill will no doubt be one for the ages, but in the end will likely amount to little more than theatrics, of which the congress is highly skilled. Many in the chambers of our two legislative branches could have just as easily made themselves famous in Hollywood or Broadway. Arguably, the path to stardom and the ultimate pay scale is much better in Washington, however.
One cannot argue with the stock market performance, however. Whatever your political stripes or economic theory, the gains have been potent and powerful. Whether they will last, once the Fed pulls the plug and stops its endless printing regime, is open to debate.
Dow 12,233.15, +71.52 (0.59%)
NASDAQ 2,797.05, +13.06 (0.47%)
S&P 500 1,324.57, +5.52 (0.42%)
NYSE Composite 8,379.85, +43.21 (0.52%)
As expected, advancing issues soared past decliners, 4978-2538. NASDAQ New highs: 168; new lows: 19. NYSE new highs: 266; new lows: 11. Volume was very low again.
NASDAQ Volume 1,816,377,500
NYSE Volume 4,428,776,000
Commodities piqued some interest today on both sides of the ledger. Crude oil was down 54 cents, to $86.94, continuing a trend. Gold gained $15.90, to $1,364.10, while silver headed again toward recent highs, up 93 cents, to $30.27.
Meredith Whitney has drawn the ire of legislators on Capitol Hill for her call for a Muni bond crash.
Ms. Meredith see looming shortfalls in state budgets fomenting failure in a slew of public works projects, ending in defaulted bond offerings. Others feel there's more to it - like unfunded future liabilities - and that many states face an uphill battle, though their fates could be relieved by a robust economy.
We bring you both Meredith Whitney and James Pethokoukis in the very same video:
Stocks in general have been a great place to be for the last 23 months, since the bottom on March 9 2009, with the major averages all up more than 80%.
Should one argue with such success? Maybe not. Maybe Ben Bernanke knows exactly what he's doing by continuously inflating the money supply, even though his critics argue that he's causing severe inflation and a bubble in commodities or that his practices will eventually implode in a hyperinflationary event that will kill the US dollar.
So far, the commodity trade has been profitable, and it may be nearing bubble status, though it seems to have calmed recently. The long term effects of Bernanke's runaway money-printing policy will not be evident for many more months, since he's planning on continued bond repurchases (his preferred method of handing out the gelt) through June of this year.
Before that, we'll have great gnashing of teeth and showing of fangs by aroused congressmen, mostly of the Republican variety, and a renewed debate over raising the debt limit to something beyond $15 trillion. The show on the hill will no doubt be one for the ages, but in the end will likely amount to little more than theatrics, of which the congress is highly skilled. Many in the chambers of our two legislative branches could have just as easily made themselves famous in Hollywood or Broadway. Arguably, the path to stardom and the ultimate pay scale is much better in Washington, however.
One cannot argue with the stock market performance, however. Whatever your political stripes or economic theory, the gains have been potent and powerful. Whether they will last, once the Fed pulls the plug and stops its endless printing regime, is open to debate.
Dow 12,233.15, +71.52 (0.59%)
NASDAQ 2,797.05, +13.06 (0.47%)
S&P 500 1,324.57, +5.52 (0.42%)
NYSE Composite 8,379.85, +43.21 (0.52%)
As expected, advancing issues soared past decliners, 4978-2538. NASDAQ New highs: 168; new lows: 19. NYSE new highs: 266; new lows: 11. Volume was very low again.
NASDAQ Volume 1,816,377,500
NYSE Volume 4,428,776,000
Commodities piqued some interest today on both sides of the ledger. Crude oil was down 54 cents, to $86.94, continuing a trend. Gold gained $15.90, to $1,364.10, while silver headed again toward recent highs, up 93 cents, to $30.27.
Meredith Whitney has drawn the ire of legislators on Capitol Hill for her call for a Muni bond crash.
Ms. Meredith see looming shortfalls in state budgets fomenting failure in a slew of public works projects, ending in defaulted bond offerings. Others feel there's more to it - like unfunded future liabilities - and that many states face an uphill battle, though their fates could be relieved by a robust economy.
We bring you both Meredith Whitney and James Pethokoukis in the very same video:
Monday, February 7, 2011
Rationale for Optimistic Pessimism
Realists are often mistaken for pessimists, and for that reason and because my views are often considered pessimistic by the average viewer or reader, it's appropriate to couch my ideas in a more palatable form.
By and large, today's data is fully indicative of what I see wrong with the current economic condition and system, and a discussion will follow today's figures.
Dow 12,161.63, +69.48 (0.57%)
NASDAQ 2,783.99, +14.69 (0.53%)
S&P 500 1,319.05, +8.18 (0.62%)
NYSE Composite 8,336.64, +48.14 (0.58%)
As is clearly evident, the stock markets continued to rally on Monday, and advancers finished well ahead of declining issues, 4447-2097. New highs on the NASDAQ beat new lows, 259-20, and on the NYSE, 343-12. These measures are at extremes and have been for at least the past two-and-a-half months. Volume, another semi-permanent feature of the "new" market (post-Lehman crash) was back in the abyss.
NASDAQ Volume 1,782,761,625.00
NYSE Volume 4,389,051,500
Crude oil futures on the front end fell to their lowest level in a month, down $1.55, to $87.48. Gold lost 80 cents, to $1,348.20, and seems to be stuck at that $1350 level, while silver is exhibiting better fundamental value, up 28 cents, to $29.34. Silver is poised for another breakout above $30, and this time, will carry gold higher, but outperform on a relative basis.
Getting back to my optimistic pessimism, a move upward in stocks may be reason for celebration for some, especially high corporate officers and bank executives, though not so much for the average rank-and-file employee.
That's why my commentary on rising values of equities is often layered with considerable doses of cynicism. Gains in the stock market are purely paper trades, which may look great in your retirement account - for now - but we've seen this play before. The true beneficiaries of higher stock prices are speculators with more money than they need and the aforementioned CEOs and higher executives.
I wouldn't be so sour on global corporations if they paid their fair share of taxes, didn't inordinately benefit the top 1% of wealthy people in the world, weren't the worst violators of most environmental regulations and didn't exploit both their own employees and consumers in general every chance they get. Other than that, they're OK.
In reality, not all corporations are inherently evil, though they receive largesse from government that the ordinary citizen is not afforded. Some are better than others, and the world would probably be a better place if we had more Steve Jobs and Apples and less of Jamie Dimon and JP Morgan and their ilk.
So, seeing corporations report above-average earnings while 15 million Americans are without jobs really raises my ire. I like to think I stand for the good values in America, where anyone can get a decent job at a living wage, not be treated as a tax-and-wage slave and where there's some wealth equity, but I just don't see that in corporate America, where greed and outrageous salaries for those at the top of the food chain are the norm.
Besides the obvious reasons to dislike corporations and their Wall Street pimps, the current climate is one in which the entire sector is being fueled by endless money creation by the Federal Reserve, with the dough flowing right to the largest financial institutions while the middle and lower classes are left with the dribble down of inflation and stagnant wages.
The current climate of fascism, which, in its purest form, is a marriage of corporations and the government, to the detriment of the citizenry. This fascist state has been growing for the past 30 years (yes, it started with the great Ronald Reagan) and has been ramped up by both recent presidents: Bush and Obama.
Much of the corporate-government fascism is tied to the military as well, which continues to waste our resources in an ugly spending spree of destructive capitalism. The wars in Iraq and Afghanistan are abominations designed only to keep the status quo and the powerful in power. While America seems calm and secure at the present, the underlying squandering of resources through corporate subsidies and military adventurism are ultimately harmful to society at large.
So, while I may sound pessimistic concerning investments and Wall Street, the death or considerable downsizing of these institutionalized wealth destroyers would be good for the bulk of Americans. The status quo means higher and higher taxes and deficit spending to the moon, debts that can never be repaid and eventual default. Only by changing attitudes and the game itself will America return to being a beacon of hope and good for the world instead of the monolithic monstrosity of domination it has become.
In my mind - and maybe yours - America is about self-determination and freedom. Freedom of speech, of ideas, of movement. We have become so desensitized to our own plight that we allow ourselves to be stopped at roadblocks when driving our cars, patted down and molested at airports and watched by surveillance cameras as we walk our streets.
So, no, I do not wish to see more of the same corporations - hand-in-hand with government - taking more of our freedoms and stifling more innovation. I wish to see an America chock full of wishful, free thinkers, workers, doers and entrepreneurs. Small business is the real engine that runs this economy. The mega-corporations are aberrations, and bad ones. For every Wal-Mart that goes up, 100 small businesses close their doors. For every Citi, Chase or Bank of America branch, more money is stolen from local economies, never to return. For every Exxon-Mobil or Chevron fixing prices, more people cannot do what they please or spend their money on what they want or need and for every tax or government give-away, another would-be entrepreneur leaves for Asia or South America, where economies are growing, where regulations don't stifle competition and growth.
There are plenty of places to park your money for investment purposes, but Americans of this generation have not learned the hard lessons of the Great Depression: that stock certificates are only paper and only worth what "a greater fool" is willing to pay for them. We haven't learned that a home is a place to live, not a piggy bank, should cost no more than three times one's annual income, and shouldn't take 30 years to pay off a mortgage upon one.
Americans of today have been deluded by media, lied to by politicians and robbed by the fractional banking debt system of the Federal Reserve. So, yes, I revel in the failures of Wall Street and the government and their institutionalized lunacy and await their demise, even cheer it on. For once we have purged the system of the excesses, parasites and the unholy alliance of big business and big government can America regain its sense of value, fairness and equality.
America has always stood for the people first, but we've lost our way, through deceit, apathy and payoffs. I see change happening on the fringes. More people are expressing their doubts and concerns openly. Others are making material changes, not satisfied with working only to pay taxes, mortgages, food and utility bills.
Politicians always offer change for the better but haven't delivered a long time. The change surely must come from the people, by the people and for the betterment of the people. I feel we can do it, though the struggle may be long and difficult and that is why I am optimistic.
By and large, today's data is fully indicative of what I see wrong with the current economic condition and system, and a discussion will follow today's figures.
Dow 12,161.63, +69.48 (0.57%)
NASDAQ 2,783.99, +14.69 (0.53%)
S&P 500 1,319.05, +8.18 (0.62%)
NYSE Composite 8,336.64, +48.14 (0.58%)
As is clearly evident, the stock markets continued to rally on Monday, and advancers finished well ahead of declining issues, 4447-2097. New highs on the NASDAQ beat new lows, 259-20, and on the NYSE, 343-12. These measures are at extremes and have been for at least the past two-and-a-half months. Volume, another semi-permanent feature of the "new" market (post-Lehman crash) was back in the abyss.
NASDAQ Volume 1,782,761,625.00
NYSE Volume 4,389,051,500
Crude oil futures on the front end fell to their lowest level in a month, down $1.55, to $87.48. Gold lost 80 cents, to $1,348.20, and seems to be stuck at that $1350 level, while silver is exhibiting better fundamental value, up 28 cents, to $29.34. Silver is poised for another breakout above $30, and this time, will carry gold higher, but outperform on a relative basis.
Getting back to my optimistic pessimism, a move upward in stocks may be reason for celebration for some, especially high corporate officers and bank executives, though not so much for the average rank-and-file employee.
That's why my commentary on rising values of equities is often layered with considerable doses of cynicism. Gains in the stock market are purely paper trades, which may look great in your retirement account - for now - but we've seen this play before. The true beneficiaries of higher stock prices are speculators with more money than they need and the aforementioned CEOs and higher executives.
I wouldn't be so sour on global corporations if they paid their fair share of taxes, didn't inordinately benefit the top 1% of wealthy people in the world, weren't the worst violators of most environmental regulations and didn't exploit both their own employees and consumers in general every chance they get. Other than that, they're OK.
In reality, not all corporations are inherently evil, though they receive largesse from government that the ordinary citizen is not afforded. Some are better than others, and the world would probably be a better place if we had more Steve Jobs and Apples and less of Jamie Dimon and JP Morgan and their ilk.
So, seeing corporations report above-average earnings while 15 million Americans are without jobs really raises my ire. I like to think I stand for the good values in America, where anyone can get a decent job at a living wage, not be treated as a tax-and-wage slave and where there's some wealth equity, but I just don't see that in corporate America, where greed and outrageous salaries for those at the top of the food chain are the norm.
Besides the obvious reasons to dislike corporations and their Wall Street pimps, the current climate is one in which the entire sector is being fueled by endless money creation by the Federal Reserve, with the dough flowing right to the largest financial institutions while the middle and lower classes are left with the dribble down of inflation and stagnant wages.
The current climate of fascism, which, in its purest form, is a marriage of corporations and the government, to the detriment of the citizenry. This fascist state has been growing for the past 30 years (yes, it started with the great Ronald Reagan) and has been ramped up by both recent presidents: Bush and Obama.
Much of the corporate-government fascism is tied to the military as well, which continues to waste our resources in an ugly spending spree of destructive capitalism. The wars in Iraq and Afghanistan are abominations designed only to keep the status quo and the powerful in power. While America seems calm and secure at the present, the underlying squandering of resources through corporate subsidies and military adventurism are ultimately harmful to society at large.
So, while I may sound pessimistic concerning investments and Wall Street, the death or considerable downsizing of these institutionalized wealth destroyers would be good for the bulk of Americans. The status quo means higher and higher taxes and deficit spending to the moon, debts that can never be repaid and eventual default. Only by changing attitudes and the game itself will America return to being a beacon of hope and good for the world instead of the monolithic monstrosity of domination it has become.
In my mind - and maybe yours - America is about self-determination and freedom. Freedom of speech, of ideas, of movement. We have become so desensitized to our own plight that we allow ourselves to be stopped at roadblocks when driving our cars, patted down and molested at airports and watched by surveillance cameras as we walk our streets.
So, no, I do not wish to see more of the same corporations - hand-in-hand with government - taking more of our freedoms and stifling more innovation. I wish to see an America chock full of wishful, free thinkers, workers, doers and entrepreneurs. Small business is the real engine that runs this economy. The mega-corporations are aberrations, and bad ones. For every Wal-Mart that goes up, 100 small businesses close their doors. For every Citi, Chase or Bank of America branch, more money is stolen from local economies, never to return. For every Exxon-Mobil or Chevron fixing prices, more people cannot do what they please or spend their money on what they want or need and for every tax or government give-away, another would-be entrepreneur leaves for Asia or South America, where economies are growing, where regulations don't stifle competition and growth.
There are plenty of places to park your money for investment purposes, but Americans of this generation have not learned the hard lessons of the Great Depression: that stock certificates are only paper and only worth what "a greater fool" is willing to pay for them. We haven't learned that a home is a place to live, not a piggy bank, should cost no more than three times one's annual income, and shouldn't take 30 years to pay off a mortgage upon one.
Americans of today have been deluded by media, lied to by politicians and robbed by the fractional banking debt system of the Federal Reserve. So, yes, I revel in the failures of Wall Street and the government and their institutionalized lunacy and await their demise, even cheer it on. For once we have purged the system of the excesses, parasites and the unholy alliance of big business and big government can America regain its sense of value, fairness and equality.
America has always stood for the people first, but we've lost our way, through deceit, apathy and payoffs. I see change happening on the fringes. More people are expressing their doubts and concerns openly. Others are making material changes, not satisfied with working only to pay taxes, mortgages, food and utility bills.
Politicians always offer change for the better but haven't delivered a long time. The change surely must come from the people, by the people and for the betterment of the people. I feel we can do it, though the struggle may be long and difficult and that is why I am optimistic.
Subscribe to:
Posts (Atom)
Posts
