MADOFF SCAM: ABOLISH FED >> IPOs Are Returning—And So Is Confidence in the Stock Market <<~~ Obviously this fellow is bribed by the FED to write such nonsensical articles coming from cnbc. ~~)))
| 22 Sep 2009 | 10:31 AM ET
The strongest level of initial public offerings in two years has given more ammunition to those who think the stock market rally is for real.
After a year of virtually no IPOs as credit evaporated from the market, eight deals worth $3.5 billion are flooding the market this week.
The deals are coming from various sectors and could finally pull the much-lamented sideline cash—$3.5 trillion parked in no-yield money markets alone—back into the market.
And the interest extends beyond those directly involved in the deals and into the realm of analysts and portfolio managers interested in the market's overall behavior.
"Not that I place so many IPOs, but it interests me because it's a very positive sign for the market," says Uri Landesman, head of global growth strategies at ING Investment Management in New York. "We went through practically a year without any IPOs, the reason being because there was no appetite for them. Because these companies and brokerage firms see there's a market, that's very encouraging."
The influx of IPOs—the most in one week since December 2007—marks a significant signpost for the return of risk to the market.
Despite the market's six-month rally that has jacked up the major indexes by more than 53 percent, much of the move came from short-term trading and institutional investors, analysts say.
To be sure, there remains doubt about how much can be gleaned from one week's worth of IPO activity. But the short-term jump at least is encouraging, and the market will be watching closely for signs of follow-through.
"Five companies in one month does not a trend make," says Peter Boni, president and CEO of Safeguard Scientifics , a Wayne, Pa.-based holding company that provides IPO capital. "There's been a lot of cash parked in mutual funds as of late. The appetite for growth and risk versus safety has changed a little."
This week's IPOs will begin pricing Tuesday.
Among the biggest deals on the market: # Foursquare Capital, $500 million for a real estate investment trust to be run by a unit of money manager Alliance Bernstein. The company will buy toxic assets through government programs. # A123 Systems, $225 million for the lithium battery maker, which is drawing curiosity because the company is not considered profitable. # Shanda Interactive, a Chinese media company, is spinning off its Shanda Games unit in a $725 million offering.
How successful the offerings are could go a long way towards assuaging the fears of investors who still aren't convinced by the six-month rally.
"These IPOs want to hit the market while the iron is hot," says Tom Higgins, chief economist at Payden & Rygel in Los Angeles. "That's just a rational response for some of these smaller companies that were delaying IPOs because of financial concerns. You have had pent up demand for capital among these firms."
The deals run from real estate to technology, giving further hope that the rally can stay broad-based and will be fueled by availability of capital.
Early in the market's run-up, investors were wary that much of the momentum came from technical points and the undervaluing of beaten-down companies. Wall Street now is looking for signs of fundamental underpinnings for future growth.
"Clearly most investors are still sacred to death and I would not cite this as a reason to call the market frothy or scary," says Jordan Kimmel, market strategist at National Securities in New York. "It's definitely a sign of a little confidence peeking back, in what I'm calling the second phase of the bull market. The first phase was just a reflection off the bottom, the second being a little more investment confidence."
The influx of IPOs didn't just start this week.
Offerings started picking up in July and since then 33 companies have filed for IPOs against just 11 for the first half of 2009.
And another big one is right around the corner: Insurance industry risk specialist Verisk in two weeks will launch the biggest IPO since last year's $19.7 billion offer from Visa .
While most have risen in value, long-term risks are ever-present with IPOs, and some analysts fear the market is getting ahead of itself with its growing appetite for public offerings.
"Investors are optimistic that the economy has turned and that the Fed has won the battle. I just view that as another reason to be bearish," says Lee Markowitz, partner at Continental Capital Advisors in New York. "The IPO activity is just another sign that people are optimistic and willing to buy prospective returns for the future when they should be quite cautious."
For now, though, the busy IPO climate seems to show that the time could be right to dip back into risk.
"Absolutely it will be an even more bullish sign to get the deals off," ING's Landesman says. "The initial step that they're even trying to bring them to market is a good thing."
>> U.S. Treasury debt (( the FED Bernanke defrauding Americans and the Nation to pump financial markets as usual -- nothing new under the fraudulent organization. ~~)))
...prices traded modestly higher on Tuesday afternoon after an auction of $43 billion new two-year notes met with strong demand.
A policy meeting at the Federal Reserve, which some fear might yield some talk of the eventual need to remove monetary stimulus, put a lid on the bond market.
Title: To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Sponsor: Rep Paul, Ron [TX-14] (introduced 2/26/2009) Co-sponsors (291) Latest Major Action: 2/26/2009 Referred to House committee. Status: Referred to the House Committee on Financial Services.
Greedy PIGS >> Farrell: Too Early for Fed 'Exit'! <<< still wanting to defraud the nation and Americans to pump markets using the US debt -- insanely greedy pigs and traitors. ~~))))
Posted By: Vince Farrell | | 23 Sep 2009 | 09:25 AM ET
We're not Waiting for the Robert E. Lee (1913 Broadway musical, later a movie starring Mickey Rooney and Judy Garland- I think. And please don't tell me you don't know Mickey Rooney or Judy Garland. I can't be that old,) but it seems like that. The Fed will meet and have an announcement, and the G20 will also issue a communiqué. It would be nice to get the process moving a bit faster and the recovery more obvious, but patience is required. # Slideshow: The World's Best Banks 2009
The economy appears to be taking firmer root. We commented on the Index of Leading Indicators yesterday noting that the increase was the fifth in a row and a five year high. It used to be that three in a row would indicate the end of a recession. It may well this time as the high holies that determine the start and stop of a recession do so only after a significant time lag. The Institute of Supply Manufacturing's last reading would be consistent with a 3% GDP growth rate. With the recent strength from the New York Fed Index and the Philadelphia Index, we can expect continued expansion for the ISM. Also, the bulk of the $787 billion stimulus package has yet to be felt, but soon will be as expenditures are catching up with allocations. I mentioned that if inventories stopped being liquidated it would result in a 1.3% pop to GDP (annualized.) The economy looks to have some underlying near term drivers.
With the continued flow of good news, albeit modest, the argument could be made for the Fed to start to exit the stimulus mode. It is, I think, way too early for that. Unemployment is still rising and Fed tightening usually begins well after unemployment peaks. The peak rate is still some months ahead of us. If the Fed statement Wednesday afternoon at 2:15 Eastern time contains the phrase "Economic conditions are likely to warrant exceptionally low levels of the Federal Funds rate for an extended period of time" then we know the Fed will continue on its current path for some time. The only possible curve ball could involve the program for buying agency debt and mortgage backed securities. The Fed is committed to buying $1.25 trillion of mortgage backs and they are likely to extend the time frame for so doing. If there was to be language they would end the program early it could be construed as the first step towards tightening. That is why it won't be mentioned.
The Federal Housing Finance Agency -FHFA- issued its mostly ignored report on housing Tuesday. Mostly ignored since there are so many others like next week's Case Shiller Index that seem more informative. But the FHFA had good news that is worth passing along. The index was up .3% for the fifth gain in seven months. Using just this measure, home prices fell 12% (could be why it's not looked at since home prices fell so much more) but have now rebounded 1.5%. Use this as a supporting argument that the decline in housing prices might be near an end. Slideshow: Highest State Foreclosure Rates
The two year Treasury auction was well received. The notes were heavily oversubscribed with a bid to cover of 3.23 (323 bonds bid for every 100 the Treasury sold) and "indirect" buying, which includes foreign participation, of 45.2%. Recent auctions have seen a 2.78 bid to cover and 43.75% indirect buying. Foreign buying of Treasuries continues strong despite the weakness of the dollar and the huge financing schedule for future debt auctions. One explanation for say Chinese participation is that China loans money to us via the route of bond purchases to keep the dollar in a range so their currency does not have to rise. Their export markets are thus protected to some extent.
Despite my own unease about the market's rise, there are arguments for it to continue upwards. End of the quarter window dressing is real and probably in full swing. Buying shares of stocks at the end of a quarter and issuing portfolio reports makes it look like you have been in the game. Also, everybody's favorite measure of volatility and risk, the VIX index, has been anything other than volatile. Sydney Williams in a recent piece pointed out that July, August and September of last year saw 30 days of 1.5% moves in the volatility index. This year for the same stretch of time we have had only 8 days of 1.5% movement. A lack of volatility is not typical of a market peak (or of a market bottom for that matter.) URL: http://www.cnbc.com/id/32966432/
Fed audit review beginning in Congress 'This is history in the making and victory is within reach' Posted: September 25, 2009 12:50 am Eastern
Members of Congress will holding a hearing tomorrow on a plan by U.S. Rep. Ron Paul, R-Texas, to audit the Federal Reserve, which oversees U.S. monetary policy, and his supporters are calling it a precedent-setting event.
"This is history in the making and victory is within reach," said a statement on the RonPaul.com website, which is maintained in support of the congressman but is not linked to him.
WND reported just days ago that the congressman, who has sponsored similar legislation on and off since the 1980s, believes this is the year there actually will be progress on his efforts to open up the books of the private organization that sets interest rates, controls the U.S. money supply and impacts consumers in a hundred ways.
The Federal Reserve, an independent organization apart from the U.S. government, largely has operated behind a veil of secrecy for decades, but Paul told WND its operations could be about to face the light of day.
The hearing today is before the House Financial Services committee, and the plan should be ready for quick approval. It has co-sponsorship from nearly 300 members of the 435-member House – including all of the Republicans and a significant number of Democrats.
Democratic Rep. Barney Frank scheduled hearings on the proposal to start tomorrow. Paul said Frank has confirmed his support of an audit plan.
According to a schedule posted on the website of the committee, "Oversight and Audit Issues at the Federal Reserve" will be discussed.
Demand the money managers come clean by signing the petition in support of an audit of the Federal Reserve now!
The Paul support site wrote, "Imagine what will happen if H.R. 1207, the Federal Research Transparency Act, comes up for a vote in Congress! With two-thirds of the House of Representatives already co-sponsoring this bill, it has real potential to pass – but only if we educate and rally the people to support it and get our [members of Congress] to put it to vote and pass it."
Paul long has been a critic of the secrecy of the Federal Reserve.
You've never needed to understand money like you need to understand it now! "Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free" unravels the deception of the Federal Reserve and presents a crystal clear picture of the financial abyss towards which we are heading.
"Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar," he said earlier. "Since 1913, the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve's loose monetary policy."
He said the recent economic circumstances are helping generate support, and there are a multitude of questions that eventually could be answered.
For example, who made the decision to help Goldman Sachs and let Lehman Brothers fail? Was there a personal agenda? Who decided how much money to give General Motors? What about the money deals the Federal Reserve cuts with other nations? Who are the beneficiaries?
When the plan was introduced, Paul said, "How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation.
"Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations. While the conventional excuse is that this is intended to reduce the Fed's susceptibility to political pressures, the reality is that the Fed acts as a foil for the government. Whenever you question the Fed about the strength of the dollar, they will refer you to the Treasury, and vice versa. The Federal Reserve has, on the one hand, many of the privileges of government agencies, while retaining benefits of private organizations, such as being insulated from Freedom of Information Act requests."
Paul has warned, "The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government-established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight? Particularly when hundreds of billions of dollars of currency swaps have been announced and implemented, the Fed's negotiations with the European Central Bank, the Bank of International Settlements, and other institutions should face increased scrutiny, most especially because of their significant effect on foreign policy. If the State Department were able to do this, it would be characterized as a rogue agency and brought to heel, and if a private individual did this he might face prosecution under the Logan Act, yet the Fed avoids both fates."
Paul, who told WND the Fed has "more money than Congress," said, "There's going to be a lot of yelling and screaming before this is over."
Federal Reserve officials, meanwhile, are "fighting tooth and nail" against releasing any information sought under several lawsuits already in the court systems, he said.
WND recently reported that the Fed, despite being ordered to disclose to whom it awarded some $2 trillion in discount "stimulus" loans, continues its fight for secrecy.
This is a bill in the U.S. Congress originating in the House of Representatives ("H.R."). A bill must be passed by both the House and Senate and then be signed by the President before it becomes law.
Bill numbers restart from 1 every two years. Each two-year cycle is called a session of Congress. This bill was created in the 111th Congress, in 2009-2010.
The titles of bills are written by the bill's sponsor and are a part of the legislation itself. GovTrack does not editorialize bill summaries. 2009-2010
Federal Reserve Transparency Act of 2009
HR 1207 IH
111th CONGRESS
1st Session
H. R. 1207
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
February 26, 2009
Mr. PAUL (for himself, Mr. KAGEN, Mrs. BACHMANN, Mr. BARTLETT, Mr. JONES, Mr. REHBERG, Mr. POSEY, Mr. BROUN of Georgia, Mr. POE of Texas, Mr. BURTON of Indiana, Mr. ABERCROMBIE, and Ms. WOOLSEY) introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To amend title 31, United States Code, to reform the manner in which the Board of Governors of the Federal Reserve System is audited by the Comptroller General of the United States and the manner in which such audits are reported, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Federal Reserve Transparency Act of 2009’.
SEC. 2. AUDIT REFORM AND TRANSPARENCY FOR THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.
(a) In General- Subsection (b) of section 714 of title 31, United States Code, is amended by striking all after ‘shall audit an agency’ and inserting a period.
(b) Audit- Section 714 of title 31, United States Code, is amended by adding at the end the following new subsection:
‘(e) Audit and Report of the Federal Reserve System-
‘(1) IN GENERAL- The audit of the Board of Governors of the Federal Reserve System and the Federal reserve banks under subsection (b) shall be completed before the end of 2010.
‘(2) REPORT-
‘(A) REQUIRED- A report on the audit referred to in paragraph (1) shall be submitted by the Comptroller General to the Congress before the end of the 90-day period beginning on the date on which such audit is completed and made available to the Speaker of the House, the majority and minority leaders of the House of Representatives, the majority and minority leaders of the Senate, the Chairman and Ranking Member of the committee and each subcommittee of jurisdiction in the House of Representatives and the Senate, and any other Member of Congress who requests it.
‘(B) CONTENTS- The report under subparagraph (A) shall include a detailed description of the findings and conclusion of the Comptroller General with respect to the audit that is the subject of the report, together with such recommendations for legislative or administrative action as the Comptroller General may determine to be appropriate.’.
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