Obama's Latest Bailout Plan Summarized In 4 Words: "3000 Bucks For Thingamajigs"
For
those who missed Obama's post-NFP sermon on Friday, here is a summary
of the Keynesian-in-Chief's latest plan to fix the country: $3000 for
everyone to buy "thingamajigs." We wish this was a joke.The We-Fixed-Nothing Chickens Are Coming Home to Roost
The reality that the global Status Quo has fixed absolutely nothing in four years is finally coming to roost in the global economy. Though there is an endless array of complexity to snare the unwary, the source of instability is both visible and easily understood: too much debt that will never be paid back. Making matters much worse, much of the money that was borrowed--by sovereign governments, local governments, households and private enterprises--was squandered on consumption or malinvestments, and so there are precious few assets or collateral underlying the debt. Even when there is an asset--for example, a vacant house in a vacant development in Spain, or a Greek bond--the market value is considerably lower than the purchase price. The reality is that trillions of dollars, euros, yen and renminbi in phantom wealth will disappear when the losses that have already taken place are finally recognized. Everyone in the world with exposure to the global economy will become poorer in terms of abundant money floating around buying goods and services as credit dries up and deleveraging wipes out trillions of dollars, euros, yen and renminbi of phantom wealth.Johnson & Johnson Versus US 10 Year Government Bonds
Admin at Marc Faber Blog - 1 hour ago
Everything looks bad at the present time and people are relatively bearish.
At the same time, you have the 10-year note at less than 1.5 percent and
you have stocks like Johnson & Johnson (JNJ) yielding almost 4 percent. I'm
not saying Johnson & Johnson (JNJ) won't go down with the rest of the
market, but if you have a time horizon of 10 years, I believe you're going
to make more money in Johnson & Johnson than you will in U.S. government
bonds. - *in CNBC*
*Marc Faber is an international investor known for his uncanny predictions
of the stock market and futures markets around the ... more »
US Economic Situation is Very Dire
Admin at Jim Rogers Blog - 1 hour ago
If you are going to raise taxes in 2013 I assure you the economy is going
to slow down and slow down a lot. Cutting spending would be good, by the
way. It would help the economy. Would they do that? I doubt it because too
many lobbyists are going to race in and say 'you can't cut my spending. - *
Newsmax.TV *
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*
False Breakdown In Equities But Patience Still Required
Eric De Groot at Eric De Groot - 2 hours ago
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mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes;
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mso-para-margin:0in; mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan; font-size:10.0pt; ...
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]
GLD (ETF) Total Assets WA Stochastic
Eric De Groot at Eric De Groot - 2 hours ago
GLD's total assets WA stochastic reads 33%. A cross above 50% generates an
entry signal for long-term investors. The late February 2012 down trend
line was broken to the upside on Friday. Chart: London PM Fixed Gold and
GLD (ETF) Total Assets WA Stochastic -------------------------------------
Insights is intended to reflect excellence in effort and content....
[[ This is a content summary only. Visit my website for full links, other
content, and more! ]]
Be Very Careful About 2013 & 2014
Admin at Jim Rogers Blog - 4 hours ago
Latest video interview with RT.com.
*Jim Rogers is an author, financial commentator and successful
international investor. He has been frequently featured in Time, The New
York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The
Financial Times and is a regular guest on Bloomberg and CNBC.*FaceBook Down 40% From Highs To New All-Time Low
Sad
to say, it looks like we were right last week when we pointed out the
coincident ripfest on Thursday that ended perfectly at a previous VWAP
close and enabled heavy volume to exit into month-end (and on those
weekly option expiries). With a $26 handle once again and having traded
as low as $26.57 this morning (40% from the $45 IPO-day highs and 30% from its IPO level), FakeBoom truly is the gift that keeps on giving... losses.Please Donate
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Factory Orders Add Insult To Economic Injury
Nobody could have predicted that today's April Durable Goods number (and key component of where Q2 GDP is headed) just over two weeks from the FOMC's June 20 meeting, will be a slaughter. NOBODY.
Printing at -0.6%, the number was a huge miss to expectations of a 0.2%
rise, and is the 3rd drop in the last 4 months. The previous number
was also revised lower from -1.5% to 2.1% so at least it rose.
Still, this was miss number 5 out of the past 7 reports. Excluding
transportation, new orders plunged 1.1%, after falling another 0.7% in
march.. The main reason for the headline collapse: a 21.5% plunge in
defense orders. As Bloomberg's Rich Yamarone said, "Crummy" start for 2Q
investment component of GDP report as shipments of nondfense capital
goods ex-aircraft fell 1.5%. Expect Q2 GDP forecast cuts from Goldman et
al within minutes: we expect Hatzius to trim his 2.1% Q2 GDP estimate
to about 1.8%.Another Rumor Of A Plan For A Conference Call To Bail Out Everyone
Just in case the epic collapse in the NY ISM (an indicator virtually nobody had heard of until today) which tumbled from 61.2 to a 49.9 contraction, was not enough of a hint that the economic virtuous cycle is a myth, and that CTRL-P'ing will be required, here comes the latest rumor via Reuters:- G7 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS TO HOLD PHONE CALL ON EUROPE TUESDAY MORNING - CANADA FINANCE SPOKESWOMAN
Art Cashin: Mighty Money Printer Has Struck Out
And now for some Monday morning poetry with the Chairman of the Fermentation Committee.Deflation?
We have recently witnessed a boom-and-bust cycle in Real Estate in Europe that overcame the banks of several nations including Ireland and Portugal. Now Spain is about to show up to be counted in my view. The issue all across Europe is that the sovereign does not have enough assets or capital to bailout their banks and many European banks are impaired; make no mistake. The first move was to lay off a lot of non-performing assets in securitizations at the ECB but the price always gets paid which will either be severe losses at the ECB requiring re-capitalization or the ECB handing back the collateral to the various banks which would probably bankrupt some of them especially in Spain, France and Italy. The ECB maneuver brought early success but now, as loans become due and as non-performance builds and losses must be recognized; the real truth forces itself upon balance sheets. There is a day when the auditors say, “Show me the money” and when it isn’t there the infamous “Oh My God” moment begins. Now Bubba, when you use the screwdriver and release the air from the tires it causes all of those little lights on the dashboard to begin to flash and then if you try to drive the car it goes “bump-bump” down the road. No Bubba, get off of your knees and get your mouth off of the thingy; you cannot blow air back into the tires that way.The Export-Driven Warmonger: Germany Supplying World, And Israel, With Submarines
While
the Mutually Assured Destruction game is playing out economically in
Europe as Spain (et. al.) square off with Germany, it seems we just ticked a minute closer to midnight on the doomsday clock globally. In a somewhat stunning report from Der Spiegel,
Israel is arming up to six new German-made submarines with nuclear
weapons. These subs are being built in Germany and it turns out the
helpful German government has known of this Israeli nuclearization for
decades - despite official denial (more lying when it matters we
presume). In one of the more ironic comments, according to extensive
research carried out by the magazine, Israel is equipping submarines
that were built in the northern German city of Kiel and largely paid for by the German government
(Not only is Berlin financing one-third of the cost of the submarine,
around €135 million ($168 million), but it is also allowing Israel to
defer its payment until 2015) with nuclear-tipped cruise missiles. The
missiles can be launched using a previously secret hydraulic ejection
system. Israeli Defence Minister Ehud Barak told Spiegel that Germans should be "proud" that they have secured the existence of the state of Israel "for many years." Vendor-financing for WWIII FTMFW.Chesapeake Yields To Icahn, Adds 4 New Independent Directors, McClendon Steps Down As Chairman
The first step toward the terminal McClendon ouster is here, because as a reminder, broken management teams are fixable, as we explained last week. Not surprisingly, stock is up 5% in the premarket. Next steps: a big balance sheet suitor? Carl C. Icahn, Chesapeake’s second largest shareholder, said, “We appreciate the Board’s willingness to listen to shareholders and to respond appropriately. Under Aubrey’s leadership, Chesapeake has assembled great assets and I am confident I can help the Company create significant shareholder value from these assets. We enjoyed a very good relationship when I acquired almost 6% of the Company’s stock in late 2010 and I look forward to a similarly constructive relationship now.”Is June 6th D-Day Once Again?
While we do not agree that anything will happen on Wednesday
(or pre-Greek-election to be more precise) - aside from perhaps a small
bump in BoE LSAP, Peter Tchir provides a useful update to our original 'full central bank menu'
two weeks ago. Markets and economies are teetering across the globe.
More and more people are coming to the conclusion that a Greek Exit
would be catastrophic.
Central banks won’t want to act as though they are panicking, but
neither will they want to wait much longer to act. Tchir believes
investors will be extremely disappointed if nothing happens and expects
markets to decline rapidly. If central bankers do take some
policy actions, it is key to figure out which ones are practical, which
are merely symbolic, and which are just a dream and not an action. Who says what is just as important in some cases as what they say. When Merkel says something, we all need to listen.
When anyone from the EU in Brussels says something, it will be the
same thing they have said over and over and is completely self-serving
and should be ignored. Anything Draghi and Bernanke might say is critical to listen to, because in this weird world, they have the most power to do something meaningful in a short period of time."Crunch Time" - Goldman's Confidence That QE Will Be Announced On June 20 "Has Grown"
We all know that things are bad and getting worse. Goldman's Jan Hatzius take this opportunity to summarize all the various ways in which the global economy is floundering and once again floats the Goldman solution to everything: More QE, this time with a Bill Gross twist, pun and all, where the Fed again pulls a 2009 and goes for MBS: "Our confidence that the FOMC will ease policy once more at the June 19-20 meeting has also grown... Our baseline remains that Fed officials will purchase a mixture of mortgages and long-term Treasuries, financed via balance sheet expansion and possibly coupled with an extension of the forward guidance into 2015. This would be considerably more powerful than an extension of Operation Twist or other ways of changing the composition of the balance sheet, which are possible alternatives but are limited by the relatively modest amount ($200bn) of short-term paper that is still available for sale on the Fed's balance sheet." Well, if anything, global or Fed-based easing will most likely not come before the Greek June 17 elections - after all Greek confidence has to be crushed heading into the Euro referendum, and the only way to do this is by facilitating collapsing markets. So those hoping for a groundbreaking ECB announcement on June 6 will be disappointed. But June 20? That is fair game. We look forward to seeing PIMCO MBS holdings rise to a new all time high when the monthly TRF update is posted in a few days. Also look for something like this in the EURUSD if and when Bernanke surprises few at 2:15 pm on June 20.Daily US Opening News And Market Re-Cap: June 4
The absence of the UK from today’s trade is particularly evident, with volumes remaining particularly light across all asset classes. Nonetheless, European equities are largely seen drifting higher with the exception of the DAX index, which is yet to move over into positive territory. News flow remains light with the highlight of the day so far being comments from the Troika, confirming that Portugal remains on track with its bailout program, and have confirmed that the country will receive the next EUR 4.1bln tranche in July. FX moves remain in a tight range, with EUR/USD looking relatively unchanged, with the USD index slightly weaker as the US comes to market. Looking ahead in the session, participants can look forward to US ISM New York and Factory Orders data as the next risk events of the session.Overnight Sentiment: Confused
One word explains the overnight action: confusion. After opening down 10 points just shy of unchanged for the year following fearful Asian trade, futures have rebounded and are now almost unchanged courtesy of a UK-market which is offline for the next two days, letting Europe take advantage of another day of impotent rumor-mongering and wolf-crying, this time focusing on a 7pm press conference in which Merkel will say more of the same vis-a-vis Europe's non-existence Banking Union, but at least Europe will have closed at the highs. Not much on today's docket so expect more kneejerk reactions to rumors, which have a positive half-life measured in the minutes.Today’s Items:
Robert Zoellick, chief criminal of the
World Bank, warned that financial markets face a rerun of the Great
Panic of 2008. The flow of money into so-called ‘safe havens’ such as
UK, German and US government debt turned into a stampede. Events in
Greece could trigger financial fright across the euro-zone. The summer
of 2012 offers an eerie echo of 2008… But most likely far worse.
Next…
A Chinese Bank Run?
http://www.zerohedge.com/news/chinese-bank-runA Chinese Bank Run?
We have seen it in southern Europe, now
bank runs appear to be happening in China. Bank runs have spread to
China’s industrial and construction-heavy city of Wuyishan. The start
of the bank run was based on rumors that the government would freeze
personal bank accounts as part of investigation for a company that went
bust. Even if such a story were untrue, perceptions like this can
accelerate bank runs anywhere… Including within the U.S.
In April 2010, we got bombarded about the
new $100 dollar bill. More than two years later with a bunch of fishy
stories about wrinkles, we are still waiting. The Federal Reserve
claims they will give six months notice before issuing a new note;
however, if a bank holiday comes because of bank runs, they could easily
issue notes as the replacement note that will not be exchanged at a one
to one ratio. You know, a debasement of currency.
Next…
Quick Notes About the Unemployment Rate
http://www.marketoracle.co.uk/Article34951.htmlQuick Notes About the Unemployment Rate
Here are a few…
1. U.S. manipulated unemployment rate increased to 8.2%
2. Long-Term unemployment rose by 310,000
3. There are 8,098,000 workers who are working part-time but want full-time work.
And we are headed into a recession with these numbers?
1. U.S. manipulated unemployment rate increased to 8.2%
2. Long-Term unemployment rose by 310,000
3. There are 8,098,000 workers who are working part-time but want full-time work.
And we are headed into a recession with these numbers?
JPMorgan has returned about $600 million
from the MF Global disaster that, as of now, has $1.6 billion missing.
While most payments have not been disclosed publicly, this may be a
result of the impending litigation that JPMorgan may find itself from
the multiple government agencies. I bet a trip to Guantanamo Bay for
Financial Terrorist Jon Corzine would jog his memory on the remaining $1
billion.
The Shanghai Futures Exchange has begun
trading in silver contracts. The contracts are expected to be bullish
for silver prices, with traders stating that it could make market
manipulation more difficult. Investment in silver has been booming in
China with a sluggish performance in stocks and other paper markets.
Looks like the CME
may be in for a lot of trouble. Add the fact that China is set to buy
the London Metals Exchange and things get more interesting. Keep
stacking!
Since Janet Incompentano could not find a terrorist if one came up and slapped his face, he has decided demonstrate the Peter Principle
through weather forecasting. They are actually warning Americans to be
prepared for hurricanes. Well duh!!!! What’s next, a national alert
about gas prices?
Finally, Please prepare now for the escalating economic and social unrest. Good DayPlease Donate
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