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This morning's Producer Price Index was unchanged (0%). The market did not react (it went up on the bad news, surprise, surprise), but that is not good news at all. The number has been very weak for some time and if tips over into the read, it will signal a possible start into deflation, something that would be next to impossible to stop with the Fed sitting on zero ammo to fight it.
That is why we are about to see "QE-2", which is an act of desperation by a Fed that is in a panic over the possibility that deflation may take hold in the economy if it slips back into recession. I see that as almost a certainty unless newly elected conservatives can somehow stop the implementation of most of obama's programs and regulations which have strangled the private sector.
mlsoft
lx...
Soros...
It is hard to understate how much that change has done to negatively alter the form of government that our founding fathers set up. Our founding fathers intentionally did not give us a pure democracy, and for very good reason. The Senate was designed to be a restraint on rampant populism, and it should be especially useful in retarding the growth of entitlements and a government takeover by those elements who owe their living to the government, such as we have seen with the government employee unions. Had the Senate been performing its proper function, it would have been much more difficult for the unions to enrich themselves through excessive pay plans and pensions far above those in the private sector.
We are no longer a Republic and the destruction of our designed form of government has been a catastrophic disaster. Moreover it will be very difficult, if not impossible, to reverse the fatal error.
mlsoft
lx...
lx...
Interesting that when confronted by facts you always respond either by deflection or by changing the subject entirely. Your bogus claims and theories are just that --- bogus --- and when confronted you have no answer.
mlsoft
RDG...
So now we see why the radical progressives put so much energy into electing like minded Secretaries of State all across the nation over the past few years. That move now makes outright voter fraud both so much easier and more likely to succeed.
mlsoft
h24ever...
extel...
clouds...
Be prepared to see all kinds of voting fraud in the coming election -- it will be rampant as the "progressives" do everything to retain their power. Not only by reid in Nevada, but all over the country.
I predict there will be far more voter fraud in this election than in any previous election in history.
mlsoft
clouds...
No true "Christian" who has informed himself on what the Bible teaches (which is the first duty of any Christian) could possibly support these people.
mlsoft
ng...
Beginning when bernanke was just a pup that greenspan liked, I have always said that bernanke is nothing but greenspan on steroids.
It will not turn out well.
mlsoft
sumgravy...
clouds...
It is inconceivable that someone could actually support this scum for any office, much less a senator.
They are bring Chicago style politics to the whole nation.
mlsoft
hap...
I disagree.
Abortion is the murder of an unborn baby.
mlsoft
RDG...
In every case, the driver should be charged with vehicular manslaughter (or 2nd degree murder, depending on the state). The driver has wrongfully taken the life of another. In many (if not most) states, this is already the case and that is an implicit denial of a woman's right to commit murder by means of the abortion of her baby.
mlsoft
clouds...
There is no "right to choose" that allows a mother to legally murder her unborn baby. Such a right is not found anywhere in the Constitution. In fact, Roe v Wade would utterly nauseate any of the founders, and even many liberal judicial experts who favor the results of Roe v Wade admit it is a terrible decision that makes a travesty of constitutional law.
How about a "right to choose" for the baby -- after all, it is the baby that is being murdered -- by its own mother no less, and with the full approval of our courts. But in the 5th Amendment to the Constitution, we do find that no person is to "be deprived of life, liberty, or property, without due process of law."
Abortion is the murder of an innocent baby. According to our Constitution each child to be put to death is entitled to a specific court proceeding to determine whether or not he or she should be put to death.
At the very least, abortion is a concept that is outside the powers enumerated to the Federal Government by the Constitution.
mlsoft
lx...
There are hundreds (perhaps thousands) of types of certificates, and there is no inherent idea of ownership or value for most of them. There are all kinds of certificates of awards, certificates of achievement, certificates of appreciation, certificates of attendance, certificate of completion, and so on.
As is almost always the case, your theory is totally bogus and based on thin air.
mlsoft
extel...
LOL -- Question: Who owns obama?? The answer, of course, is soros.
mlsoft
From CBS Market Watch:
Includes a number of things I have been saying here. Note the huge outflows from the markets, then consider how we have managed to hit new recovery highs -- the answer, of course, is manipulation of the markets.
http://www.dailyfinance.com/story/investing/what-u-s-markets-sorely-lack-investors-faith/19687866/
Have American investors lost faith in the nation's financial markets? Statistics from mutual fund trade group Investment Company Institute suggest the answer is yes. Investors have been pulling their money out of U.S. equities for 24 straight weeks, last week withdrawing $623 million from U.S. stock funds and investing $1.45 billion in overseas equity funds instead.
Mutual funds that invest solely in U.S. stocks have reported a massive $92 billion outflow as Americans give up on the stock market, despite its huge run-up from the lows of March 2009. The numbers offer a more accurate indicator of investor sentiment than polls that survey a tiny percentage of investors. Institutional money managers and individual investors alike have been voting with their feet and abandoning the market both equity funds and mortgage-backed securities.
Twice Shy
With stocks and corporate profits rising, and pundits reporting that U.S. corporations have huge amounts of cash, why aren't investors jumping into the bull market?
For one thing, U.S. stocks have crashed twice in less than nine years -- between 2000 and 2002 and between 2008 and 2009 -- handing investors 40% to 80% in losses. As the old adage goes: "Once bitten, twice shy." Stock investors have been bitten twice.
On top of that history, investors may no longer trust the transparency of the nation's financial markets. First of all, Wall Street has become dominated by short-term traders who can instantly react to news. As Peter Cohan recently reported on DailyFinance, 70% of the trades on U.S. exchanges are held for an average of only 11 seconds, and that makes long-term investors vulnerable.
Follow the Money
Then there's all the insider selling, which by some accounts has reached the breathtakingly bearish ratio of 1,169 to 1, meaning insiders are selling 1,169 shares for every one they're buying. Insiders are presumed to have the best information about their own companies' prospects. So, if they're selling, what does that suggest about rosy forecasts for future profits? What do you believe: What insiders say, or what they do with their own money? Understandably, investors seem to be more influenced by the latter.
In addition, much of what passes for facts in the financial news doesn't pass the "sniff test": As blogger Mish Shedlock recently reported, many stories about corporations sitting on vast stashes of cash neglected to look at the other side of the balance sheet: liabilities. While the top 50 market-cap companies in the country collectively report $3.7 trillion of cash on hand, they also owe a total debt of $4.45 trillion, bringing the net cash balance to negative $749.6 billion, according to Shedlock. All together, corporate debt has skyrocketed to $7 trillion.
Meanwhile, the mortgage market hasn't proven that it deserves any more trust than the stock market. As Richard Bowen, former senior vice president of CitiMortgage, testified before the Financial Crisis Inquiry Commission in April, his company "continued to purchase and sell to investors even larger volumes of mortgages through 2007," even though defective mortgages increased rapidly in 2007.
"This is not just errors and omissions," testified Joshua Rosner, managing director at independent research consultancy Graham Fisher. "This appears to be a massive fraud perpetrated on the investing public on a scale never before seen."
So, it's no wonder that the market for mortgage securities that aren't government guaranteed is dead in the water. From a peak of $2.3 trillion in mortgage-backed securities that weren't issued by Fannie Mae or Freddie Mac in June 2007, according to Bloomberg, only $15 billion were backed by banks and other private firms last year, while 99%, or $1.5 trillion, of mortgage securities came from government-backed loans.
It's clear that institutional money managers don't think mortgages are worth much at this point: Many of the mortgage-backed securities sold as low-risk AAA-rated investments are now trading for pennies on the dollar, and even the top deals are selling for just 50 cents on the dollar.
Seeking Shelter
With the stock market dominated by opaque high-frequency trading that's inaccessible to average investors, and a mortgage market still struggling to recover from a history of fraud and misrepresentation of risk, investors' loss of faith in American financial markets is hardly a mystery.
Until the markets are restored to trustworthy transparency and insider trading and fraud are vigorously prosecuted, it might be wise for investors to pull their money out and keep it safe.
Tagged: corporate balance sheets, Financial Crisis Inquiry Commission, foreclosure crisis, foreclosure fraud, high-frequency trading, insider selling, loss of faith, loss of trust, MBS, mortgage, mortgage backed securities
-------------------------
mlsoft
lx...
I am sure that the following are just unintentional oversights, but:
1) Once again, there is no link to a credible source for the information in this article -- please tell us the source of your information for both posts.
2) Even without a link, I see no reference at all to Bill Gates. As I said, I suppose that this is an unintentional oversight <gg>.
and
3) You still have not furnished a link to the assertions about Bill Gates in your first post. (again I am sure this oversight was unintentional <gg>).
Or would you rather just withdraw your unfounded assertions.
mlsoft
lx...
makesum...
You are certainly entitled to your opinion, of course, but in my opinion that is one of the more ludicrous ideas I have ever heard. It would take away all the incentive to invest one's time, work, and capital investment required to begin a company, which, in case you are not aware, is the primary source of new jobs.
Apparently you also are not aware that Gates is using most all that vast, evil income every year to fund his charitable giving that he and his wife are spreading throughout the world to truly help the poor. It is his intention to give away 90% of his total wealth before he dies.
But yes, he must be a very, very greedy and evil man.
mlsoft
RDG...
Over all, good answers, but a couple of them were incomplete. For instance:
intheclouds...
trinity...
ng...
The market is in a bubble now. It has been manipulated ever higher based on nothing and today's market action is a perfect example. The outlook for the economy and the $US is grim, and earnings are incredibly inflated with bogus numbers. If we used the accounting principles that were commonly accepted in the 60's and 70's, then PE's would be out of sight.
Folks apparently do not understand that "quantitative easing" is just a new name for monetizing the debt, a process that should scare everyone to death. It guarantees that the $US will be devalued, causing the real value of everything we own to decrease. It is the ultimate economic lunacy, employed as an act of desperation in order to stave off a wave of deflation which would cripple our economy in the same way the great depression did.
mlsoft
You have to LOL when watching them drive the market up 50+ points on the close today. So predictable.
Mortages blowing up again and QE2 should have completely tanked the market. Folks just do not understand the implications of either.
mlsoft
EZ...
Although there are a plethora of reasons not to vote for any democrat who supported obama and his agenda, in my opinion, the entire election should hinge on just one event.
Even though health care represents one sixth of the entire economy and there is no issue that touches each American more personally than health care, when the Health Care bill was "presented" to the congress to be voted upon no one but a small group of hard core far left members of the Democratic Party knew what was contained in the bill. In nancy pilosi's words, the rest of America could only learn what was in the bill after it was passed. The rest of congress, both republicans and democrats, were to approve it on faith before they could find out what was in the bill.
That is not how things are done in America. It is how things are done in socialist dictatorships, not in America.
Americans should utterly repudiate the party that perpetrated this atrocity based on this one deed alone.
mlsoft
Sorry, duplicate post.
mlsoft
RDG...
National media. Local media had plenty of people verifying that she did indeed pimp for Obie in the polling place. Not like it is a felony, as it is only a Class C Mis, but it still happened.
You are not being realistic. If the dems refuse to object to two black panther thugs standing outside of a polling place with a baseball bat while hurling racial epithets at whites in order to intimidate potential white voters, what make you think they would do anything about michelle obama??
mlsoft
Sorry -- duplicate post.
mlsoft
Interesting market action today. The action of the "President's Working Group" (PPT) was very obvious, especially on the close. Of course with all the bad news this morning, it was a given that they would be in the market to prevent a big sell off, but it was as if they wanted to publicly demonstrate that they are there to "protect us".
I think the idea is to assure market participants that they are not going to allow a big decline in the markets regardless of the news background. Doing so makes their job easier -- at least until it fails.
mlsoft
redfisher...
Certainly no surprise there.
Simple econ 101 tells anyone that an insurer cannot be required to take on preexisting conditions without a huge increase in premiums for everyone.
Even obama and his minions understand that. The unspoken goal of obamacare is to force a single payer system (socialized medicine) on the American public to be paid for by the American taxpayer.
The ultimate outcome is that obamacare is intentionally designed to bankrupt America by destroying our medical care, our economy and ultimately our way of life.
Everybody has to understand this if we are to survive.
mlsoft
ONEBGG...
Brown has perfectly followed the alinsky model -- he has deflected the race for governor of California from the issues (where he cannot win) to being focused on a trivial non-event. The tactic has worked to perfection and he now leads in the polls.
How can Californians be so stupid?? The political history of California for the past 50 years proves that this particular race is no anomaly. What a sad commentary. We can only pray that our nation does not follow California into utter ruin.
mlsoft
ONEBGG...
extel...
As I have been saying for a while, anyone that holds state or muni bonds needs to take a good long look at them because I believe that we could easily see a rash of state and especially municipal defaults over the next few years. With some exceptions, these have to be viewed as high risk investments.
mlsoft
EZ...
That depiction you posted had the correct governing philosophy for the obama state:
Geo...
I don't know if they explained it all to you or not, but it is more serious than that. When you came in as "obese", your entire medical history was uploaded directly to michelle obama. michelle will go over your file thoroughly, consulting your IRS file and all of your internet posting history, and then share your file on a final consultation with oprah, rev. wright, and bill ayers. Together, they will make your final determination.
Being obese is serious, after all. Under obamacare, had you been carrying a briefcase, it would have put you enough overweight that you would automatically be terminated. As it is, your fate will entirely depend on your skin color, gender, voting history, and ethnic heritage. If you are white, male, and last voted in a republican primary, your execution will take place tomorrow morning -- my condolences to your wife.
If not, well, we will see. After all, we DO need to reduce the population in order to avoid global warming, right???
mlsoft
augusta...
ng...
In case you haven't noticed, we have already begun monetizing our public debt, and it is amazing how few are alarmed at this and how most, even in the financial media, seem to fully accept it. The monetization of the debt at this point is economic suicide for our nation.
Globally, there will be no "winners" in all of this, there will only be chaos and survivors. I think that the EU in some form, will be a survivor, but with its membership cut in half. Another potential survivor will be the UN as a de facto "one world government" which will likely come out of all of the global chaos strengthened because of the demise of many of many previously strong nations, and the crippling of the rest, leaving a vacuum in world leadership. I base these twin beliefs on both current observations and on Biblical prophesy, which has never been wrong.
We are headed into the path that leads only to the destruction of our nation. I believe that those now in control of our government have chosen this path intentionally, but whether that is true or not, if we do not quickly change our policies and government spending, the path to destruction is inevitable.
mlsoft