These days, investors have extremely short memories. The Ponzi system that is running - and ruining - Wall Street likes it that way because they can profit from excess trading and wild swings in prices.
Just four days ago, the world seemed to be about to end. Lybia was exploding and the oil we get from the Middle East was about to be cut off. Panic was rampant. Too bad it was all a lie and the big move in oil prices due more to speculation than the madness of kings and monarchs.
The US gets the vast majority of its oil from Canada, Mexico, Nigeria and Venezuela, though Saudi Arabia is third on the list. Lybia isn't even in the Top 15 and Algeria's contribution amounts to more of a rounding error than a vital statistic.
Like the manufactured gasoline shortages of the 70s, the recent oil scare was purely for the entertainment and profit of the privileged class of investors who rig the game and they did just fine, thank you, now having sold their shares at the top and repurchased at a better price, which, of course, they will pimp and pump to the half dozen retail investors remaining solvent until the next "disaster du jour."
Stocks remain overvalued since the few days of decline did little to deflate the current bubble. There's really no good reason to own any equities at all unless you have a vested stake in a certain company's fortunes or can derive a substantial dividend without any risk (impossible).
Gold and silver have sold off a bit as the week dragged on from panic to placidity, though they remain the best investments and nothing that happens between now and the end of time (2012?) will change that. In fact, one need not even tie up money in precious metals. Cash is still useful, as are some of the things it buys, like hard capital goods, machinery, tools, select art and rarities, for which there will always be a market.
In any case, Wall Street saw fit to end the week on a high note, though they didn't exactly make much of a dent in the big declines from Tuesday and Wednesday. Thank goodness it was a short week or it would have likely ended at new highs.
Dow 12,130.45, +61.95 (0.51%)
NASDAQ 2,781.05, +43.15 (1.58%)
S&P 500 1,319.88, +13.78 (1.06%)
NYSE Composite 8,378.04, +101.75 (1.23%)
Winners led losers by an outrageous margin, 5291-1272, confirming the belief that insiders executed a perfect pump-dump and buy on the unsuspecting, foolish public once again. That kind of disparity is usually reserved for days led by stunning positive news, though nowadays any good POMO from the Fed will suffice, apparently. Volume was once again in the sewer, as has been the norm. There is always higher relative volume on sell-offs than on purely positive sessions.
On the NASDAQ, there were 88 new highs and 22 new lows. There were 135 new highs and 12 new lows on the NYSE. Thank you Chairman Comrade Bernanke!
NASDAQ Volume 1,894,895,125
NYSE Volume 4,380,597,000
Crude oil gained 60 cents, to close at $97.88, but was up 9% for the week. Get ready to start pushing your car to work. Gold lost $6.50 in value, to $1,409.30, and silver was down 27 cents, though the recent run has put the price near or at 30-year-highs.
And just in case you don't actually believe the CPI measures inflation properly, here's one man's figures on how much prices are actually rising.
Ah, well, enjoy the weekend. Spring Training is well underway. In fact the World Champion Giants played the Arizona Diamondbacks in the first game today. No results yet, probably because they play in Arizona, where news travels slowly.
Showing posts with label Bernanke. Show all posts
Showing posts with label Bernanke. Show all posts
Friday, February 25, 2011
Friday, February 18, 2011
Silver, 10-Year Note Are New Safety Plays
Let's dispense with the general recap right away:
The first thing that jumps out is how absurdly out of step the major indices are, with the Dow plowing ahead by nearly 6/10 of 1% and the other indices flat. This is as it has been for many months. There are extreme inequities in equities, to coin a phrase and it is a certain sign of manipulation and flights of both fancy and safety.
Dow 12,391.25, +73.11 (0.59%)
NASDAQ 2,833.95, +2.37 (0.08%)
S&P 500 1,343.01, +2.58 (0.19%)
NYSE Composite 8,507.90, +10.49 (0.12%)
Advancers finished ahead of decliners, 3600-2902. On the NASDAQ there were 248 new highs, 14 new lows. On the NYSE, new highs led new lows, 350-8. Volume was well short of being exciting.
NASDAQ Volume 2,123,685,000
NYSE Volume 4,421,542,500
As the Middle East becomes ever more the hotbed of revolution, with uprisings in nearly every country across North Africa and the Persian Gulf, investors are seeking safety and finding a comfortable place to park their money in commodities in general, but silver in particular.
Silver rocketed again today in price as buyers piled in prior to the three-day weekend, pushing the price up to $32.30, a gain of 73 cents, and even higher after the close in New York. By the time markets open in the US on Tuesday, silver could be selling for $35/ounce, so powerful is the short-covering move and subsequent break-out. Gold is closing in on all-time highs again, gaining $3.50 today, to finish at $1,388.60 in NY. Oddly enough, oil futures were down on the day, losing 16 cents, to $86.20, seemingly wanting to settle somewhere between $80 and $85 per barrel, a price with which most - both suppliers and buyers - can live.
The other area receiving an inordinate amount of attention, as Chairman Bernanke nukes the dollar, is the 10-year note, which continued to rally today, pushing yields down to 3.58% at the close. The price of the 10-year is still 100 basis points higher than it was during the summer, thanks to the inflationary effect of the Fed's ZIRP and QE2. Still, money has to go somewhere and the smart money is peeling out of overpriced stocks and into the relative safety of bonds.
For our money, silver still looks like the very best raw investment, bar none. One should be looking for deals on autos and machinery these days, before inflation gets out of control.
A three-day weekend means not having to listen to the talking heads on CNBC for an entire 72 hours. Bliss!
The first thing that jumps out is how absurdly out of step the major indices are, with the Dow plowing ahead by nearly 6/10 of 1% and the other indices flat. This is as it has been for many months. There are extreme inequities in equities, to coin a phrase and it is a certain sign of manipulation and flights of both fancy and safety.
Dow 12,391.25, +73.11 (0.59%)
NASDAQ 2,833.95, +2.37 (0.08%)
S&P 500 1,343.01, +2.58 (0.19%)
NYSE Composite 8,507.90, +10.49 (0.12%)
Advancers finished ahead of decliners, 3600-2902. On the NASDAQ there were 248 new highs, 14 new lows. On the NYSE, new highs led new lows, 350-8. Volume was well short of being exciting.
NASDAQ Volume 2,123,685,000
NYSE Volume 4,421,542,500
As the Middle East becomes ever more the hotbed of revolution, with uprisings in nearly every country across North Africa and the Persian Gulf, investors are seeking safety and finding a comfortable place to park their money in commodities in general, but silver in particular.
Silver rocketed again today in price as buyers piled in prior to the three-day weekend, pushing the price up to $32.30, a gain of 73 cents, and even higher after the close in New York. By the time markets open in the US on Tuesday, silver could be selling for $35/ounce, so powerful is the short-covering move and subsequent break-out. Gold is closing in on all-time highs again, gaining $3.50 today, to finish at $1,388.60 in NY. Oddly enough, oil futures were down on the day, losing 16 cents, to $86.20, seemingly wanting to settle somewhere between $80 and $85 per barrel, a price with which most - both suppliers and buyers - can live.
The other area receiving an inordinate amount of attention, as Chairman Bernanke nukes the dollar, is the 10-year note, which continued to rally today, pushing yields down to 3.58% at the close. The price of the 10-year is still 100 basis points higher than it was during the summer, thanks to the inflationary effect of the Fed's ZIRP and QE2. Still, money has to go somewhere and the smart money is peeling out of overpriced stocks and into the relative safety of bonds.
For our money, silver still looks like the very best raw investment, bar none. One should be looking for deals on autos and machinery these days, before inflation gets out of control.
A three-day weekend means not having to listen to the talking heads on CNBC for an entire 72 hours. Bliss!
Label:
10-year note,
Bernanke,
silver
Thursday, September 18, 2008
US Stocks Gain on Treasury Plan Rumor and Innuendo
Briefly, how the Dow gained 400 points after losing 450 on Wednesday:
Naturally, the idea behind the Fed money-pumping and Paulson's late-day desperate jawboning are efforts in futility. Bad debt is bad debt, plain and simple. Wall St. wheelers and dealers made bonehead loans without proper regulatory supervision and now the federal government is supposed to bail them out.
Throwing money at the markets in overnight loans and swaps has proven - over the last 13 months of declining stock values - to be a purely stop-gap affair. Paulson's plan has little chance of finding sponsors in congress and even less opportunity to be acted upon anytime soon. Congress goes into recess at the end of the month, less than two weeks ahead.
But, that doesn't stop the CNBC equity pimps from applauding every single rumor or gesture by either Treasury Secretary Paulson or Fed head Bernanke. The two are have been anointed as infallible. And the gullibility of investors cannot be underestimated. Today's late surge was supposed to indicate that the crisis had passed... at least for now.
Elsewhere, Morgan Stanley (MS), one of only two remaining investment banks (the other is Goldman Sachs), is apparently in talks to be acquired by Wachovia Bank (WB). As odd as that combination sounds, Wachovia, itself under scrutiny be investors for a shaky balance sheet, rocketed up 59% on the day, from 9.12 to 14.50. Morgan Stanley gained over 3%.
Apparently, combining two failing companies into one will magically transform the remaining single entity into a financial powerhouse. Over the past 12 months, Wachovia has lost 75-80% of shareholder value. It traded as high as 53 per share last year. Morgan Stanley has dropped from nearly 70 to 22, a 68% decline.
Washington Mutual or WaMu, the nation's largest savings and loan bank, also got a boost, though hardly one of any significance, gaining 98 cents to close at 2.99. The stock is down more than 80% from a year ago. Goldman Sachs is attempting to find a buyer or additional funds for the troubled institution.
It's a real morass of bad money chasing more bad money. Wall Street's finances haven't been in such a state of chaos since the Great Depression and these mergers and fixes still fail to address the underlying cause - highly leveraged debt-to-equity and derivatives of staggering magnitude.
These repairs also don't offer any hope to the hosing market or the flagging economy. They are nothing more than chimeras, designed to keep the public unaware of the significance of the crisis. 98 out of 100 Americans actually don't have any idea of what is really occurring, but they do know that - in an overall sense of the game - today's gains canceled out yesterday's losses.
Dow 11,019.69 +410.03; NASDAQ 2,199.10 +100.25; S&P 500 1,206.51 +50.12; NYSE Composite 7,775.16 +334.77
The late-day rally lifted most boats but not all. Advancing issues had a huge edge over losers, 4811-1648. It was not enough to register one of the most unbalanced reading in new highs vs. new lows. 169 stocks made new highs, but 1438 reached new 52-week lows.
Gold was once again in the spotlight, rising $46.50, to close in New York at $897.00. Gold is up $118 in just two days. Silver gained $1.03 to $12.70. The move in the metals begs the question: If everything is all good now, why are investors flocking to safe havens like the metals and bonds?
Oil even managed a small gain of 58 cents, to close at $97.54, after briefly topping the $100 mark earlier in the day. Strangely enough, what was the topic of heated discussion just weeks ago - oil - has now faded to the back pages.
Volume was absolutely off the charts in one of the most volatile and high volume days of the year. Considering so much money was pumped into the markets by central bankers, that should not be a surprise. Nor should the dramatic climb of the indices. After all, most of the trading was nothing more than shady self-dealing.
NYSE Volume 2,430,078,000
NASDAQ Volume 3,914,326,000
- Before the markets open, the Federal Reserve, along with the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank inject $180 billion into into financial markets in an effort to add liquidity.
- By 10:00 am, the plan seems to be working. The Dow Jones Industrials are up 200 points.
- Investors, still shaken from Monday and Wednesday's fallout, begin to sell. By noon, the Dow is unchanged. By 1:00 pm, it is down nearly 150 points.
- In a rocky afternoon session, the Dow regains its positive footing, but by 2:45 it is just above the unchanged mark.
- CNBC reports that Treasury Secretary Paulson is in talks with congress about creating a pool for bad debt, similar to the Resolution Trust Corp. which helped clean up the savings & loan mess in the late 1980s and early 1990s.
- By 3:00 pm, the Dow is back up 200 points and adds another 200 in the closing hour.
Naturally, the idea behind the Fed money-pumping and Paulson's late-day desperate jawboning are efforts in futility. Bad debt is bad debt, plain and simple. Wall St. wheelers and dealers made bonehead loans without proper regulatory supervision and now the federal government is supposed to bail them out.
Throwing money at the markets in overnight loans and swaps has proven - over the last 13 months of declining stock values - to be a purely stop-gap affair. Paulson's plan has little chance of finding sponsors in congress and even less opportunity to be acted upon anytime soon. Congress goes into recess at the end of the month, less than two weeks ahead.
But, that doesn't stop the CNBC equity pimps from applauding every single rumor or gesture by either Treasury Secretary Paulson or Fed head Bernanke. The two are have been anointed as infallible. And the gullibility of investors cannot be underestimated. Today's late surge was supposed to indicate that the crisis had passed... at least for now.
Elsewhere, Morgan Stanley (MS), one of only two remaining investment banks (the other is Goldman Sachs), is apparently in talks to be acquired by Wachovia Bank (WB). As odd as that combination sounds, Wachovia, itself under scrutiny be investors for a shaky balance sheet, rocketed up 59% on the day, from 9.12 to 14.50. Morgan Stanley gained over 3%.
Apparently, combining two failing companies into one will magically transform the remaining single entity into a financial powerhouse. Over the past 12 months, Wachovia has lost 75-80% of shareholder value. It traded as high as 53 per share last year. Morgan Stanley has dropped from nearly 70 to 22, a 68% decline.
Washington Mutual or WaMu, the nation's largest savings and loan bank, also got a boost, though hardly one of any significance, gaining 98 cents to close at 2.99. The stock is down more than 80% from a year ago. Goldman Sachs is attempting to find a buyer or additional funds for the troubled institution.
It's a real morass of bad money chasing more bad money. Wall Street's finances haven't been in such a state of chaos since the Great Depression and these mergers and fixes still fail to address the underlying cause - highly leveraged debt-to-equity and derivatives of staggering magnitude.
These repairs also don't offer any hope to the hosing market or the flagging economy. They are nothing more than chimeras, designed to keep the public unaware of the significance of the crisis. 98 out of 100 Americans actually don't have any idea of what is really occurring, but they do know that - in an overall sense of the game - today's gains canceled out yesterday's losses.
Dow 11,019.69 +410.03; NASDAQ 2,199.10 +100.25; S&P 500 1,206.51 +50.12; NYSE Composite 7,775.16 +334.77
The late-day rally lifted most boats but not all. Advancing issues had a huge edge over losers, 4811-1648. It was not enough to register one of the most unbalanced reading in new highs vs. new lows. 169 stocks made new highs, but 1438 reached new 52-week lows.
Gold was once again in the spotlight, rising $46.50, to close in New York at $897.00. Gold is up $118 in just two days. Silver gained $1.03 to $12.70. The move in the metals begs the question: If everything is all good now, why are investors flocking to safe havens like the metals and bonds?
Oil even managed a small gain of 58 cents, to close at $97.54, after briefly topping the $100 mark earlier in the day. Strangely enough, what was the topic of heated discussion just weeks ago - oil - has now faded to the back pages.
Volume was absolutely off the charts in one of the most volatile and high volume days of the year. Considering so much money was pumped into the markets by central bankers, that should not be a surprise. Nor should the dramatic climb of the indices. After all, most of the trading was nothing more than shady self-dealing.
NYSE Volume 2,430,078,000
NASDAQ Volume 3,914,326,000
Thursday, February 28, 2008
Bernanke Mentions Bank Failures, Market Swoons
Ben Bernanke, in his second day of testimony to the House Financial Services Committee, finally let the cat out of the bag, saying, "I expect there will be some failures," referring to smaller, regional banks which got in over their heads in mortgage financing.
Pointing out that the larger, money center banks had sufficient capital ratios, Bernanke made it clear that he didn't anticipate "any serious problems of that sort," with larger banking interests.
The only problem with the Chairman's statement is that the bigger banks are the ones with the serious problems, a few of which, including Citigroup, Merrill Lynch, JP Morgan (Chase), have had to scurry to raise funds from foreign governments in so-called "sovereign Funds" from countries such as Abu Dhabi, Kuwait, Singapore, and Dubai.
Smaller, regional banks are generally more circumspect and conservative in their financing and investing operations.
Bernanke's words stunned the markets, but he used a velvet hammer to deliver them, knowing full well that the larger banks are teetering on the brink of insolvency and, so serious are their liquidity and confidence problems, that they are loathe to lend to anyone but those customers with perfect credit portfolios.
Stocks were down across the board, with some of the hardest hit in the banking and financial sector. The Dow ended its streak of four straight positive gains with a pullback from resistance above the 12,725 area.
Dow 12,582.18 -112.10; NASDAQ 2,331.57 -22.21; S&P 500 1,367.68 -12.34; NYSE Composite 9,221.88 -71.01
Those calling for a bottom or resumption of the bull market (HA!) should likely take this as a warning that the January 22-23 lows are there to be retested and likely broken to the downside.
Corporate earnings have by and largely been uninspiring, new unemployment claims were up sharply this week (+19,000) and the banking crisis is hiding behind the housing slump, which only seems to worsen with each passing day.
A couple of notes about housing are worth mentioning. Some estimates put the value of all US households at around $20 million. Thus, if prices dropped 9%, as recently reported, that's a $1.8 TRILLION loss in perceived value. That has a sting.
Secondly, realtors mention that the slump has hut most in large cities, and especially in Florida and California. 2nd and 3rd tier metropolitan areas (cities under 300,000) and many rural communities never experienced the dramatic rise in real estate values and thus are not witnessing severe discounting in prices.
Overall, the action on Thursday was decidedly negative. Losing issues beat gainers by a hearty 5-2 margin, 4323-1944. New lows continued to hold the upper hand on new highs, 233-135, a condition which has now persisted for some four months.
Oil priced at a new record of $102.60, up a whopping $2.95 on the day. Gold gained $6.50 to close at another record high of $967.50. Silver continued to skyrocket, up another 38 cents to $19.71.
Those guys who were telling you to buy gold last year, the year before and the year before that? They were right. And, judging from the looks of things, it's still not too late. Many experts are expecting the precious shiny stuff to easily reach $1500 over the next 18-24 months.
NYSE Volume 3,814,476,250
NASDAQ Volume 2,017,081,000
Pointing out that the larger, money center banks had sufficient capital ratios, Bernanke made it clear that he didn't anticipate "any serious problems of that sort," with larger banking interests.
The only problem with the Chairman's statement is that the bigger banks are the ones with the serious problems, a few of which, including Citigroup, Merrill Lynch, JP Morgan (Chase), have had to scurry to raise funds from foreign governments in so-called "sovereign Funds" from countries such as Abu Dhabi, Kuwait, Singapore, and Dubai.
Smaller, regional banks are generally more circumspect and conservative in their financing and investing operations.
Bernanke's words stunned the markets, but he used a velvet hammer to deliver them, knowing full well that the larger banks are teetering on the brink of insolvency and, so serious are their liquidity and confidence problems, that they are loathe to lend to anyone but those customers with perfect credit portfolios.
Stocks were down across the board, with some of the hardest hit in the banking and financial sector. The Dow ended its streak of four straight positive gains with a pullback from resistance above the 12,725 area.
Dow 12,582.18 -112.10; NASDAQ 2,331.57 -22.21; S&P 500 1,367.68 -12.34; NYSE Composite 9,221.88 -71.01
Those calling for a bottom or resumption of the bull market (HA!) should likely take this as a warning that the January 22-23 lows are there to be retested and likely broken to the downside.
Corporate earnings have by and largely been uninspiring, new unemployment claims were up sharply this week (+19,000) and the banking crisis is hiding behind the housing slump, which only seems to worsen with each passing day.
A couple of notes about housing are worth mentioning. Some estimates put the value of all US households at around $20 million. Thus, if prices dropped 9%, as recently reported, that's a $1.8 TRILLION loss in perceived value. That has a sting.
Secondly, realtors mention that the slump has hut most in large cities, and especially in Florida and California. 2nd and 3rd tier metropolitan areas (cities under 300,000) and many rural communities never experienced the dramatic rise in real estate values and thus are not witnessing severe discounting in prices.
Overall, the action on Thursday was decidedly negative. Losing issues beat gainers by a hearty 5-2 margin, 4323-1944. New lows continued to hold the upper hand on new highs, 233-135, a condition which has now persisted for some four months.
Oil priced at a new record of $102.60, up a whopping $2.95 on the day. Gold gained $6.50 to close at another record high of $967.50. Silver continued to skyrocket, up another 38 cents to $19.71.
Those guys who were telling you to buy gold last year, the year before and the year before that? They were right. And, judging from the looks of things, it's still not too late. Many experts are expecting the precious shiny stuff to easily reach $1500 over the next 18-24 months.
NYSE Volume 3,814,476,250
NASDAQ Volume 2,017,081,000
Thursday, February 14, 2008
Bernanke, Paulson Speak, Markets Sink
One would suppose, with three-quarters of the Plunge Protection Team (PPT) busy testifying before congress, that there would be nobody at the controls to prevent a market sell-off.
That's precisely what happened - be it coincidence or otherwise - on Thursday, as Fed Chairman Ben Bernanke, Treasury Secretary Henry Paulson and SEC Chairman Christopher Cox delivered testimony on the economy to Senate Banking Committee members.
In their remarks, both Bernanke and Paulson both indicated they felt the economy was in a somewhat delicate condition, owing mostly to a continuing credit crisis in which bankers have had difficulty lending to any but the most credit-worthy applicants.
What their remarks did not reveal, though hinted at, was that the bankers themselves were the cause of the precarious credit conditions, by participating in the massive fraud and deception that is now the subprime mortgage and related derivative investment mess.
And what a mess it is. Bank of America report released today suggested that the losses related to subprime mortgages was more than $7.7 trillion globally.
Another money center was hit with unfortunate fallout on Thursday, adding to the market's woes. Swiss financial giant UBS revealed a net loss of 4.4 billion Swiss francs ($4.0 billion dollars, $2.7 billion euros) in 2007, including an $18 billion writedown in damaged securities.
Dow 12,376.98 -175.26; NASDAQ 2,332.54 -41.39; S&P 500 1,348.86 -18.35; NYSE Composite 8,968.41 -105.07
Today's losses nearly matched yesterday's outsized gains, and even though the markets are higher for the week, momentum has clearly swung back to the bears. Declining issues outpaced advancers, 4720-1530, while new lows expanded the gap over new highs, 203-97.
Friday's economic reports include the NY Empire State Index and capacity utilization, though neither will likely weigh more on investors than today's dire and apprehensive assertions by Paulson, Cox and Bernanke.
Volume continues to be on the tepid side, as money largely sits, awaiting a safe entry point or going elsewhere.
Oil gained another $2.19 today, closing at $95.46. For the second day in a row, precious metals barely budged. Gold was up 80 cents to $911.00; silver lost 10 cents to $17,26.
Here's a tip. Buy sugar futures and sell corn futures. It's seven times more efficient to produce ethanol from sugar than from corn. On top of that, Tata Motors (TTM) is financing in a company which has tested and is producing a car that runs on air. That should serve as quite a blow to the oil barons.
NYSE Volume 3,630,146,750
NASDAQ Volume 2,270,238,000
That's precisely what happened - be it coincidence or otherwise - on Thursday, as Fed Chairman Ben Bernanke, Treasury Secretary Henry Paulson and SEC Chairman Christopher Cox delivered testimony on the economy to Senate Banking Committee members.
In their remarks, both Bernanke and Paulson both indicated they felt the economy was in a somewhat delicate condition, owing mostly to a continuing credit crisis in which bankers have had difficulty lending to any but the most credit-worthy applicants.
What their remarks did not reveal, though hinted at, was that the bankers themselves were the cause of the precarious credit conditions, by participating in the massive fraud and deception that is now the subprime mortgage and related derivative investment mess.
And what a mess it is. Bank of America report released today suggested that the losses related to subprime mortgages was more than $7.7 trillion globally.
Another money center was hit with unfortunate fallout on Thursday, adding to the market's woes. Swiss financial giant UBS revealed a net loss of 4.4 billion Swiss francs ($4.0 billion dollars, $2.7 billion euros) in 2007, including an $18 billion writedown in damaged securities.
Dow 12,376.98 -175.26; NASDAQ 2,332.54 -41.39; S&P 500 1,348.86 -18.35; NYSE Composite 8,968.41 -105.07
Today's losses nearly matched yesterday's outsized gains, and even though the markets are higher for the week, momentum has clearly swung back to the bears. Declining issues outpaced advancers, 4720-1530, while new lows expanded the gap over new highs, 203-97.
Friday's economic reports include the NY Empire State Index and capacity utilization, though neither will likely weigh more on investors than today's dire and apprehensive assertions by Paulson, Cox and Bernanke.
Volume continues to be on the tepid side, as money largely sits, awaiting a safe entry point or going elsewhere.
Oil gained another $2.19 today, closing at $95.46. For the second day in a row, precious metals barely budged. Gold was up 80 cents to $911.00; silver lost 10 cents to $17,26.
Here's a tip. Buy sugar futures and sell corn futures. It's seven times more efficient to produce ethanol from sugar than from corn. On top of that, Tata Motors (TTM) is financing in a company which has tested and is producing a car that runs on air. That should serve as quite a blow to the oil barons.
NYSE Volume 3,630,146,750
NASDAQ Volume 2,270,238,000
Label:
Bernanke,
Paulson,
Plunge Protection Team,
PPT
Wednesday, January 23, 2008
PPT Rallies Markets, Raises False Hopes
I've mentioned the Plunge Protection Team (PPT) on this blog more than just a few times. While some people think that the President's Working Group on Financial Markets is some kind of chimera that I and other tin-hat conspiracy nuts have created out of whole cloth, there's more than enough evidence - including today's mythic 631-point rally - to prove that the PPT does indeed exist and now operates almost in plain sight.
Here are just three articles concerning the PPT from fairly credible sources:
THE TRAGEDY OF THE US STOCKMARKET Part 2 - PPT failing, panic in Washington...
Gold will rise, US Dollar would burn
Plunge Protection Team Now Official
There are many more which can be found using any search engine, but try this Google News search for links to current articles on the PPT.
After the absurd move today, rallying the Dow from a low of 11,644.81 to a high of 12,276.67, there should be no doubt that the US economy is in the midst of a serious crisis. The problem is that 95% of Americans don't know this because they will see the stock market rebounded today. Half will not know that the Dow was down more than 300 points. The other half will see that but simply not care.
All of this PPT-induced buying began at 12:45, when the markets bottomed out for the second straight day and it continued without interruption right through to the close.
Dow 12,270.17 +298.98; NASDAQ 2,316.41 +24.14; S&P 500 1,338.60 +28.10; NYSE Composite 8,805.68 +144.51
I have seen many a strange event on the markets, but today's takes the cake, the ice cream, plate, fork and napkin. Yesterday, I called the market rally the biggest fraud ever perpetrated in financial markets. I was wrong. Today's action takes that prize, hands down.
Let me be clear. Small investors in America are neither sophisticated or very smart. They get the majority of their information from television (CNBC) or paid shills, invest mostly in mutual funds which they barely comprehend and probably spend less than two hours per week analyzing market trends, individual stocks or financial events.
On the other hand, Americans still trust their federal government which is a major mistake. Here's a short list of non-credible functions, offices and people in the highest positions of power in the United States:
Thus, the not-so-clandestine operatives of the PPT get to manipulate markets without impunity, resulting in erratic and unexplainable movements like today. This inspires hope in the little people, even though that hope is based on nothing more than a government printing press spitting out $100 bills as fast as it can and operatives in the stock markets buying everything in sight with both hands.
Advancers finally got a leg up on decliners, 4234-2198, but new lows were again dramatically ahead of new highs, 864-60.
Oil slipped by $2.22 to $86.99. Gold closed at $883.10, -7.20, while silver fell by 14 cents to $15.97.
Unless there's any doubt, nobody should be trading stocks unless they have a solid understanding of economics and the workings of the PPT, as the former is fundamental and the latter is a market dynamic which cannot be understated.
Stocks will eventually fall again, retracing the lows of today and yesterday. Within months, if not weeks, the indices should be well below today's levels, though due to the activity of the PPT, the timing of the collapse is difficult to discern.
If you are long stocks or call options, you should not be playing in this market. It's a very dangerous playground and some of the kids carry knives. If you're short or in puts - the advisable position - keep your stops fairly tight and a sharp eye on radical movements like today's. 600-point gains can drastically alter your profits.
NYSE Volume 6,765,203,000
NASDAQ Volume 3,585,647,750
Here are just three articles concerning the PPT from fairly credible sources:
THE TRAGEDY OF THE US STOCKMARKET Part 2 - PPT failing, panic in Washington...
Gold will rise, US Dollar would burn
Plunge Protection Team Now Official
There are many more which can be found using any search engine, but try this Google News search for links to current articles on the PPT.
After the absurd move today, rallying the Dow from a low of 11,644.81 to a high of 12,276.67, there should be no doubt that the US economy is in the midst of a serious crisis. The problem is that 95% of Americans don't know this because they will see the stock market rebounded today. Half will not know that the Dow was down more than 300 points. The other half will see that but simply not care.
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Economic reporters never mention the PPT, and always assign turnaround movements in the middle of market collapses as either bargain hunting, program trading or tied to the price of oil. So, the average Joe or Jane with money in their 401k thinks everything is OK. All the while the US dollar continues to sink into a black hole on the PPT's profligate spending in US equity markets.Edmonton, Vancouver, Bad Credit, Divorced, Bankruptcy OK. Apply online.
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All of this PPT-induced buying began at 12:45, when the markets bottomed out for the second straight day and it continued without interruption right through to the close.
Dow 12,270.17 +298.98; NASDAQ 2,316.41 +24.14; S&P 500 1,338.60 +28.10; NYSE Composite 8,805.68 +144.51
I have seen many a strange event on the markets, but today's takes the cake, the ice cream, plate, fork and napkin. Yesterday, I called the market rally the biggest fraud ever perpetrated in financial markets. I was wrong. Today's action takes that prize, hands down.
Let me be clear. Small investors in America are neither sophisticated or very smart. They get the majority of their information from television (CNBC) or paid shills, invest mostly in mutual funds which they barely comprehend and probably spend less than two hours per week analyzing market trends, individual stocks or financial events.
On the other hand, Americans still trust their federal government which is a major mistake. Here's a short list of non-credible functions, offices and people in the highest positions of power in the United States:
- The president and his administration and cabinet
- Congress: both houses are equally inept and unworthy of trust
- The Federal Reserve, the Chairman (Ben Bernanke) and the Board of Governors
- Treasury Secretary Henry Paulson
- Mainstream Media, especially ABC, NBC, CBS, FOX (lapdogs of the government)
- The SEC
- CEOs of any major corporation and all of the Dow companies
Thus, the not-so-clandestine operatives of the PPT get to manipulate markets without impunity, resulting in erratic and unexplainable movements like today. This inspires hope in the little people, even though that hope is based on nothing more than a government printing press spitting out $100 bills as fast as it can and operatives in the stock markets buying everything in sight with both hands.
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Market internals show just exactly how ridiculous today's 300-point gain on the Dow really is. Volume was the highest in a long time, surpassing yesterday's highest of 2008. That makes sense, since the PPT had to buy a lot of stocks while people were busy selling them and then covering their short positions as the fraudulent rise overwhelmed everything.Stocks go up and down. Make money in both directions with exclusive options advisor.
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Advancers finally got a leg up on decliners, 4234-2198, but new lows were again dramatically ahead of new highs, 864-60.
Oil slipped by $2.22 to $86.99. Gold closed at $883.10, -7.20, while silver fell by 14 cents to $15.97.
Unless there's any doubt, nobody should be trading stocks unless they have a solid understanding of economics and the workings of the PPT, as the former is fundamental and the latter is a market dynamic which cannot be understated.
Stocks will eventually fall again, retracing the lows of today and yesterday. Within months, if not weeks, the indices should be well below today's levels, though due to the activity of the PPT, the timing of the collapse is difficult to discern.
If you are long stocks or call options, you should not be playing in this market. It's a very dangerous playground and some of the kids carry knives. If you're short or in puts - the advisable position - keep your stops fairly tight and a sharp eye on radical movements like today's. 600-point gains can drastically alter your profits.
NYSE Volume 6,765,203,000
NASDAQ Volume 3,585,647,750
Friday, January 11, 2008
Wall Street Imploding over Credit Concerns
Wall Street was in retreat mode from the opening to closing bells on Friday as investors sold stocks amid an ongoing credit and banking crisis.
Today's headliners were American Express (AXP) and Merrill Lynch (MER), both of which were seen suffering the consequences of an eroding US economy.
American Express was down more than 10% as the company warned that it would miss first quarter analyst estimates due to having to bolster reserves for delinquent credit card users. Stocks of other credit card companies such as Discover, MasterCard and CapitalOne also suffered losses on Friday as panic selling took hold of virtually anything even rumored to be close to a financial, banking or credit company.
Merrill Lynch joined a growing number of banking/brokerages that are having to write off billions of dollars worth of near-worthless credit-backed paper, due to the unwinding of subprime mortgages and a gnawing mortgage meltdown which is showing no signs of abating. The company reportedly will have to write down as much as $15 billion in the most recent quarter alone. More losses may be forthcoming for Merrill and other banking/finance concerns.
There was no doubt about the direction of stocks on Friday, as the selling began at the opening bell and did not relent all day long. Investors are finally awakening to the depth and seriousness of the credit crisis engulfing the entire world economy.
Dow 12,606.30 -246.79; NASDAQ 2,439.94 -48.58; S&P 500 1,401.02 -19.31; NYSE Composite 9,347.47 -143.29
While Fed head Ben Bernanke has pretty much promised more interest rate cuts, it's becoming increasingly apparent that the Fed and
In the most obvious indicators that are tracked here, declining stocks beat back advancers by 4344-2020. New lows, which have consistently led new highs since November 1, 2006, expanded the bulge once again, 516-96.
From a technical standpoint, all the major indices closed at or near new lows for the new year, all within the closing bottoms put in on Tuesday of this week. The late-day Wednesday PPT-led closing rally and Thursday's Bernanke bounce were nearly completely repudiated on Friday.
Although 2007 will go down as a positive-return year for US stocks, those gains have all but been eviscerated in the first 8 trading days of 2008, and the worst may yet be forthcoming. According to the steadfast January Barometer, which is 85% accurate, the direction of stocks in January carries a strong correlation to the direction for the remainder of the year. 2008 currently looks like an iron-clad lock to be a negative one for investors, though Bernanke and Co. will have the final say when they will almost surely announce a rate cut of somewhere between 50 and 100 basis points on January 30.
What's worse, our uninspired leaders in government and finance show little wherewithal in extracting us from this morass. Taking a cue from the political debate, if there ever was a time for change - and we're talking about major changes in policy and implementation - now is the time.
NYSE Volume 4,438,587,500
NASDAQ Volume 2,355,680,750
Today's headliners were American Express (AXP) and Merrill Lynch (MER), both of which were seen suffering the consequences of an eroding US economy.
American Express was down more than 10% as the company warned that it would miss first quarter analyst estimates due to having to bolster reserves for delinquent credit card users. Stocks of other credit card companies such as Discover, MasterCard and CapitalOne also suffered losses on Friday as panic selling took hold of virtually anything even rumored to be close to a financial, banking or credit company.
Merrill Lynch joined a growing number of banking/brokerages that are having to write off billions of dollars worth of near-worthless credit-backed paper, due to the unwinding of subprime mortgages and a gnawing mortgage meltdown which is showing no signs of abating. The company reportedly will have to write down as much as $15 billion in the most recent quarter alone. More losses may be forthcoming for Merrill and other banking/finance concerns.
There was no doubt about the direction of stocks on Friday, as the selling began at the opening bell and did not relent all day long. Investors are finally awakening to the depth and seriousness of the credit crisis engulfing the entire world economy.
Dow 12,606.30 -246.79; NASDAQ 2,439.94 -48.58; S&P 500 1,401.02 -19.31; NYSE Composite 9,347.47 -143.29
While Fed head Ben Bernanke has pretty much promised more interest rate cuts, it's becoming increasingly apparent that the Fed and
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other central banks can do little to prevent consumers from falling behind on everything from mortgage payments to credit card bills as the most basic of necessities, food and energy, continue to rise in price and eat away at family budgets. Easy credit, from 2000 though 2006, is the culprit and easing interest rates to make money even more affordable is clearly not the answer.Forex Foreign Currency Exchange Trading Beginner's Resource Center.
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In the most obvious indicators that are tracked here, declining stocks beat back advancers by 4344-2020. New lows, which have consistently led new highs since November 1, 2006, expanded the bulge once again, 516-96.
From a technical standpoint, all the major indices closed at or near new lows for the new year, all within the closing bottoms put in on Tuesday of this week. The late-day Wednesday PPT-led closing rally and Thursday's Bernanke bounce were nearly completely repudiated on Friday.
Although 2007 will go down as a positive-return year for US stocks, those gains have all but been eviscerated in the first 8 trading days of 2008, and the worst may yet be forthcoming. According to the steadfast January Barometer, which is 85% accurate, the direction of stocks in January carries a strong correlation to the direction for the remainder of the year. 2008 currently looks like an iron-clad lock to be a negative one for investors, though Bernanke and Co. will have the final say when they will almost surely announce a rate cut of somewhere between 50 and 100 basis points on January 30.
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All of this has somewhat of a snowball effect. As homeowners default and banks and mortgagors suffer losses, equity investors also take a hit. When homeowners and consumers are squeezed, they liquidate assets, including stock portfolios, in order to pay for necessities. Outflows from funds accelerate and there's less money to go into stocks. A declining market is inevitable as is recession.Stocks go up and down. Make money in both directions with exclusive options advisor.
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What's worse, our uninspired leaders in government and finance show little wherewithal in extracting us from this morass. Taking a cue from the political debate, if there ever was a time for change - and we're talking about major changes in policy and implementation - now is the time.
NYSE Volume 4,438,587,500
NASDAQ Volume 2,355,680,750
Wednesday, October 31, 2007
Are the Markets FED Up?
The FOMC of the Federal Reserve Board reduced, as expected, the federal funds rate by 25 basis points, or 0.25% to 4.50%. This was the second consecutive reduction in the federal funds rate, following September's 50 basis point cut.
The markets responded with common bravado, with the major indices up sharply. In the statement released today, the Fed stated that following this reduction, the inflation risks roughly parallel that of economic deterioration, meaning that they may pause when they next meet on December 11.
Read the full Fed statement.
Dow 13,930.01 +137.54; NASDAQ 2,859.12 +42.41; S&P 500 1,549.38 +18.36; NYSE Composite 10,311.61 +146.64
Essentially, the Fed knows they cannot lower rates without regard to the intense pricing pressure from commodities, especially oil, because doing so would risk the erosion of the dollar even further. This puts Bernanke and the Fed in quite the prickly position. Wall Street and the Republicans want softer rates and a solid economy, while economists everywhere are telling them that the US dollar cannot take any more of a beating. Somewhere in the middle is the US population, seemingly stuck between a stagnant economy and higher prices for everything - stagflation.
What stood out in today's trading was the action of the economically-sensitive banking sector and the overall muted reaction to the smallest cut the Fed could make. The Dow, just prior to the release, was already up about 90 points on news that 3rd quarter GDP checked in at a solid 3.9%, so it only added 40 points on the rate news.
Stocks such as Countrywide Financial (CFC), Citigroup (C), Merrill-Lynch (MER) and Bank of America (BAC), actually lost ground following the release. All but Countrywide - which dropped a full point after the release - regained all or most of the ground given up, mostly due to short-covering rallies. The banking sector is in crisis mode and many investors are acutely aware of the condition of credit markets.
As if to magnify the folly of the Fed's latest move, oil for December delivery advanced by a huge number, up $4.15 to close at $94.53. Gold closed sharply higher - up $8.20 to $796.00 - as did silver, gaining 13 cents to $14.46.
The commodity markets responded even more bluntly than the equity markets to Bernanke's boneheaded maneuvers over the past two FOMC meetings. One has to question both the validity of government data and the wisdom of the Fed as currently composed. On Friday, October Non-Farm Payroll data is announced prior to the open and that data will shed more light on the economy.
Let's all join hands and pray that the Fed did the right thing at the right time.... On the other hand, let's all go out and have a couple of drinks. We're going to need something to stiffen our resolve for what's ahead for the US economy - and it isn't a pretty picture.
Short bank and financial stocks. Bank failures are a sorry possibility and more severe economic disruptions will occur in 2008.
NYSE Volume 3,957,900,250
NASDAQ Volume 2,593,399,750
The markets responded with common bravado, with the major indices up sharply. In the statement released today, the Fed stated that following this reduction, the inflation risks roughly parallel that of economic deterioration, meaning that they may pause when they next meet on December 11.
Read the full Fed statement.
Dow 13,930.01 +137.54; NASDAQ 2,859.12 +42.41; S&P 500 1,549.38 +18.36; NYSE Composite 10,311.61 +146.64
Essentially, the Fed knows they cannot lower rates without regard to the intense pricing pressure from commodities, especially oil, because doing so would risk the erosion of the dollar even further. This puts Bernanke and the Fed in quite the prickly position. Wall Street and the Republicans want softer rates and a solid economy, while economists everywhere are telling them that the US dollar cannot take any more of a beating. Somewhere in the middle is the US population, seemingly stuck between a stagnant economy and higher prices for everything - stagflation.
What stood out in today's trading was the action of the economically-sensitive banking sector and the overall muted reaction to the smallest cut the Fed could make. The Dow, just prior to the release, was already up about 90 points on news that 3rd quarter GDP checked in at a solid 3.9%, so it only added 40 points on the rate news.
Stocks such as Countrywide Financial (CFC), Citigroup (C), Merrill-Lynch (MER) and Bank of America (BAC), actually lost ground following the release. All but Countrywide - which dropped a full point after the release - regained all or most of the ground given up, mostly due to short-covering rallies. The banking sector is in crisis mode and many investors are acutely aware of the condition of credit markets.
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Breadth was actually solid, with advancing issues leading decliners by a 22-9 margin. New highs outpaced new lows, 420-233.Edmonton, Vancouver, Bad Credit, Divorced, Bankruptcy OK. Apply online.
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As if to magnify the folly of the Fed's latest move, oil for December delivery advanced by a huge number, up $4.15 to close at $94.53. Gold closed sharply higher - up $8.20 to $796.00 - as did silver, gaining 13 cents to $14.46.
The commodity markets responded even more bluntly than the equity markets to Bernanke's boneheaded maneuvers over the past two FOMC meetings. One has to question both the validity of government data and the wisdom of the Fed as currently composed. On Friday, October Non-Farm Payroll data is announced prior to the open and that data will shed more light on the economy.
Let's all join hands and pray that the Fed did the right thing at the right time.... On the other hand, let's all go out and have a couple of drinks. We're going to need something to stiffen our resolve for what's ahead for the US economy - and it isn't a pretty picture.
Short bank and financial stocks. Bank failures are a sorry possibility and more severe economic disruptions will occur in 2008.
NYSE Volume 3,957,900,250
NASDAQ Volume 2,593,399,750
Label:
Bernanke,
Fed,
interest rates
Wednesday, October 24, 2007
Crash Averted by PPT
The absolute garbage coming from the Federal Reserve in the form of jawboning, daily repurchase agreements and soon-to-be-announced round of rate cuts, have distorted and perverted the US equity markets to a point at which there should be no investor confidence whatsoever.
With the markets down significantly all day, the Fed and Treasury, under the guise of the Plunge Protection Team (PPT, or, more specifically, the President's Working Group on Financial Markets) sent stocks soaring off their lows and nearly into positive territory. The most egregious escapade was on the Dow, which went from being down 190 points at 2:15 to UNCHANGED at 3:15. Right around 3:10 ET, the index went absolutely parabolic, gaining 70 points in under four minutes.
There are no brokerages, investors or arbitrageurs on the planet who could have accomplished such a monumental market-moving feat other than the PPT, working in concert with the nation's largest brokerages, Merrill Lynch (more about them later), Goldman Sachs, et. al.
The fraud perpetrated upon the people of the United States is one which purports that our financial markets are safe and secure, when in fact they are propped up daily by infusions of cash from the Federal Reserve and brokerages working in concert.
Only some late day selling by honest market participants kept the markets from a complete recovery into positive territory. That the Dow finished the day anywhere near positive is an affront to every educated trader on the planet. I take these matters personally, since it is my money (and others) being toyed with by the Fed.
The unmitigated actions by the Fed of late have become so pronounced and obvious to seasoned market watchers as to be laughable, were it not for the fact that they are pumping billions of dollars into the markets to avoid a complete and utter capitulation of the equity markets. With the worldwide credit markets already in a state of seizure, the Fed and Treasury actions are a desperate propping up by a bunch who are effectively destroying the value of the US Dollar every day. They deserve nothing less than a monumental market crash followed by ouster from office and criminal proceedings.
It's sick. It should stop, but it won't. We're under a fascist regime, so all lies are allowed, even big ones that affect the lives of every man woman and child in the country and millions more who haven't even been born.
Dow 13,675.25 -0.98; NASDAQ 2,774.76 -24.50; S&P 500 1,515.88 Down 3.71; NYSE Composite 10,009.30 -31.69
Despite the outright rigging by the Fed, PPT, Goldman, etc., stocks sagged again on Wednesday as the overhang of the mortgage malaise continues to haunt any company even remotely associated with the housing industry.
Merrill Lynch, one closely aligned by the weight of their mortgage portfolio, got the ball rolling downhill before the markets opened, offering a third quarter report that the officers of the company wish had been chewed up by a friendly dog.
Merrill (MER) lost so much money this quarter it won't fit on the screen. They were pounded most of the day and according to reports, investors were withdrawing money from Merrill trading accounts as quickly as they could.
As sickening as the corrupt Fed intervention into today's (and every day's) market was, declines outnumbered advances 2 to 1 and new lows distanced themselves from new highs, 353-161. It's a very sick market which should have closed at or near the intraday lows.
Oil was up another $1.83 to $87.10, gold gained $2.50 to $765.60, and silver slipped 6 cents to $13.59
But, really, how did the Dow lose less than a point? The US economy is virtually on its knees. That's without a doubt, despite what the president, Ben Bernanke, Hank Paulson, or any other paid shill tells you.
NYSE Volume 3,803,483,500
NASDAQ Volume 2,739,684,250
With the markets down significantly all day, the Fed and Treasury, under the guise of the Plunge Protection Team (PPT, or, more specifically, the President's Working Group on Financial Markets) sent stocks soaring off their lows and nearly into positive territory. The most egregious escapade was on the Dow, which went from being down 190 points at 2:15 to UNCHANGED at 3:15. Right around 3:10 ET, the index went absolutely parabolic, gaining 70 points in under four minutes.
There are no brokerages, investors or arbitrageurs on the planet who could have accomplished such a monumental market-moving feat other than the PPT, working in concert with the nation's largest brokerages, Merrill Lynch (more about them later), Goldman Sachs, et. al.
The fraud perpetrated upon the people of the United States is one which purports that our financial markets are safe and secure, when in fact they are propped up daily by infusions of cash from the Federal Reserve and brokerages working in concert.
Only some late day selling by honest market participants kept the markets from a complete recovery into positive territory. That the Dow finished the day anywhere near positive is an affront to every educated trader on the planet. I take these matters personally, since it is my money (and others) being toyed with by the Fed.
The unmitigated actions by the Fed of late have become so pronounced and obvious to seasoned market watchers as to be laughable, were it not for the fact that they are pumping billions of dollars into the markets to avoid a complete and utter capitulation of the equity markets. With the worldwide credit markets already in a state of seizure, the Fed and Treasury actions are a desperate propping up by a bunch who are effectively destroying the value of the US Dollar every day. They deserve nothing less than a monumental market crash followed by ouster from office and criminal proceedings.
It's sick. It should stop, but it won't. We're under a fascist regime, so all lies are allowed, even big ones that affect the lives of every man woman and child in the country and millions more who haven't even been born.
Dow 13,675.25 -0.98; NASDAQ 2,774.76 -24.50; S&P 500 1,515.88 Down 3.71; NYSE Composite 10,009.30 -31.69
Despite the outright rigging by the Fed, PPT, Goldman, etc., stocks sagged again on Wednesday as the overhang of the mortgage malaise continues to haunt any company even remotely associated with the housing industry.
Merrill Lynch, one closely aligned by the weight of their mortgage portfolio, got the ball rolling downhill before the markets opened, offering a third quarter report that the officers of the company wish had been chewed up by a friendly dog.
Merrill (MER) lost so much money this quarter it won't fit on the screen. They were pounded most of the day and according to reports, investors were withdrawing money from Merrill trading accounts as quickly as they could.
As sickening as the corrupt Fed intervention into today's (and every day's) market was, declines outnumbered advances 2 to 1 and new lows distanced themselves from new highs, 353-161. It's a very sick market which should have closed at or near the intraday lows.
Oil was up another $1.83 to $87.10, gold gained $2.50 to $765.60, and silver slipped 6 cents to $13.59
But, really, how did the Dow lose less than a point? The US economy is virtually on its knees. That's without a doubt, despite what the president, Ben Bernanke, Hank Paulson, or any other paid shill tells you.
NYSE Volume 3,803,483,500
NASDAQ Volume 2,739,684,250
Thursday, August 09, 2007
CRASH
Let's call a spade a spade.
This market is all but wiped out, as is the US economy. We'll be lucky if we're not invaded by a foreign power.
We've had a president in office for the past 6 1/2 years - and for the most part, a compliant Congress of his party - who's done everything in his power to dismantle the social fabric and the constitution and spend and borrow every last dime of our nation's wealth.
The policies of George W. Bush and the lack of regulation and oversight of the administration and congress have put the nation on the precipice of capitulation. Our financial system is about to implode under the weight of bad loans made right under the eyes of our elected and non-elected officials. The former and current Secretaries of the Treasury and Chairmen of the Fed, Alan Greenspan and Bernanke, are the main delinquents. The current holders of those offices should be immediately relieved of their duties and the president should be impeached. They have failed us miserably and probably engaged in criminal activity. At least in the President, Vice President and Attorney General's case, we are sure that they did.
Those who do not agree should take account. Our bridges and roads are crumbling, we spend billions a month in a war effort that has produced no tangible result except death and destruction, and now our financial institutions are under siege.
If that's not enough, maybe you'd prefer to wait until some of the banks fail or we go to war with Iran or the president declares martial law. Maybe then you'll wake up from your stupidity-induced stupor and see what liberals and progressives have been screaming about.
Or maybe you're content watching and believing in whatever lies they tell you on FOX News. In that case, go ahead and stick your head in the sand. The real intellectual forces of this country have no use for you and your kind.
Dow 13,270.68 -387.18; NASDAQ 2,556.49 -56.49; S&P 500 1,453.09 -44.40; NYSE Composite 9,449.31 -296.89
The Dow Jones Industrial Average lost 380 points today. That's one hefty loss. The other indices followed and it's very likely that the losses would have been larger had not the PPT (Plunge Protection Team, aka the President's Working Group on Financial Markets) been stepping in to stem losses.
Meanwhile, Mr. Bush is heading out of town for a 3 week vacation, but he made sure to mention, before he left, that taxes on corporations should be lowered. After all, Bush made the tax system safe for millionaires and billionaires, why not multi-national corporations who have little to no allegiance to the United States of America?
More ill-advised policy. Just what we need.
Market internals were not as bad as one would expect. Declining issues outpaced advancers by a 15-6 margin. There were 197 new highs, but 606 new lows.
Oil futures closed down 56 cents, to $71.59. Gold and silver were absolutely shattered, with gold off $13.50 and silver down 47 cents. A buying opportunity.
By the way, if you think today was bad, it was only the 2nd worst day of the year, and there's more downside ahead - a lot more.
The Dow, S&P and NASDAQ are all still positive for the year, but one gets the felling that it's a temporary condition. The Dow closed 2006 at 12,463. We're getting closer.
This market is all but wiped out, as is the US economy. We'll be lucky if we're not invaded by a foreign power.
We've had a president in office for the past 6 1/2 years - and for the most part, a compliant Congress of his party - who's done everything in his power to dismantle the social fabric and the constitution and spend and borrow every last dime of our nation's wealth.
The policies of George W. Bush and the lack of regulation and oversight of the administration and congress have put the nation on the precipice of capitulation. Our financial system is about to implode under the weight of bad loans made right under the eyes of our elected and non-elected officials. The former and current Secretaries of the Treasury and Chairmen of the Fed, Alan Greenspan and Bernanke, are the main delinquents. The current holders of those offices should be immediately relieved of their duties and the president should be impeached. They have failed us miserably and probably engaged in criminal activity. At least in the President, Vice President and Attorney General's case, we are sure that they did.
Those who do not agree should take account. Our bridges and roads are crumbling, we spend billions a month in a war effort that has produced no tangible result except death and destruction, and now our financial institutions are under siege.
If that's not enough, maybe you'd prefer to wait until some of the banks fail or we go to war with Iran or the president declares martial law. Maybe then you'll wake up from your stupidity-induced stupor and see what liberals and progressives have been screaming about.
Or maybe you're content watching and believing in whatever lies they tell you on FOX News. In that case, go ahead and stick your head in the sand. The real intellectual forces of this country have no use for you and your kind.
Dow 13,270.68 -387.18; NASDAQ 2,556.49 -56.49; S&P 500 1,453.09 -44.40; NYSE Composite 9,449.31 -296.89
The Dow Jones Industrial Average lost 380 points today. That's one hefty loss. The other indices followed and it's very likely that the losses would have been larger had not the PPT (Plunge Protection Team, aka the President's Working Group on Financial Markets) been stepping in to stem losses.
Meanwhile, Mr. Bush is heading out of town for a 3 week vacation, but he made sure to mention, before he left, that taxes on corporations should be lowered. After all, Bush made the tax system safe for millionaires and billionaires, why not multi-national corporations who have little to no allegiance to the United States of America?
More ill-advised policy. Just what we need.
Market internals were not as bad as one would expect. Declining issues outpaced advancers by a 15-6 margin. There were 197 new highs, but 606 new lows.
Oil futures closed down 56 cents, to $71.59. Gold and silver were absolutely shattered, with gold off $13.50 and silver down 47 cents. A buying opportunity.
By the way, if you think today was bad, it was only the 2nd worst day of the year, and there's more downside ahead - a lot more.
The Dow, S&P and NASDAQ are all still positive for the year, but one gets the felling that it's a temporary condition. The Dow closed 2006 at 12,463. We're getting closer.
Label:
Bernanke,
Greenspan,
Plunge Protection Team,
PPT
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