9/9/11…razzle dazzle ’em

NOTE: because this wasn’t published Friday (stayed in drafts), it is ahead of today’s post (9/12)/ Sorry, TB

 

Bloomberg Top Stories:

*Stocks Drop, German Yield Drops on Global Economic Concerns; Oil Retreats

*Obama Channels Economic Frustration With $447 Billion Plan to Boost Jobs

*Canada Loses Jobs for First Time Since March as Jobless Rate Rises to 7.3%
*Ghost of Lehman Haunts Leaders Amid European Debt-Crisis Policy Paralysis

*Restaurant Stocks Reflect U.S. Spending Doubt, Signaling Fed May Ease More ???

*Yahoo Chairman Roy Bostock Risks Losing Own Job After Ousting Carol Bartz

*U.S. Market Funds Halve Investments in German, U.K. Banks Over Past Year

*New York Tightens Security After ‘Credible’ Terrorist Threat, Mayor says

*San Diego Utility Restores Power After Blackout Affected 1.5 Million Homes

(lost power, internet, and phone here just as Obama began to speak too…hmmmm?)

Volume declined slightly to 3.8B shares from 3.9B shares as low as Friday’s 3.8B for NYSE stocks while trades executed on the Big Board were steady at a weak 946M shares, but still at lowest in six sessions from 1.12B shares vs Friday’s 975 million. As predicted, the rallies are ‘faux’ on low volume. Note that last Monday’s rally on 912M shares was lowest since July 26th, while Tuesday’s massive early morning selloff to catch up with Europe’s Monday rout, was on higher volume…this has been the case since the market peaked in 2009. We also had a ‘double top’ in July with the first coming on 7/7 and the second on 7/24, which was never broached and negates the recent rally. In just four sessions we nearly obliterated the entire rally. Advance/Declines were negative again: -3.5:1 vs +9:1 vs -2.6:1 vs -5.6:1 on NYSE and -3.1:1 vs +5.5:1 vs -2:1 vs -4.6:1 on Nasdaq. Breadth was also negative: -5.7x vs +18x vs -3.8x vs -19x -7x on NYSE and -1.8x vs +26x vs -1.9x vs -14x vs -4.7x on Nasdaq. New 52 week highs rose to 66 from 38 while new lows, which exploded to 467 Tuesday, rose to 79 from 55… increasing the number of NEGATIVE ratio days! The VIX rose modestly and closed at 34.32 vs 33.38 and back above Friday’s level! 48 was the selloff high, not seen since 5/21/10: 48.20!

Look at the last five sessions…all are net negative: Dow -1.0% vs +2.5% vs –0.9% vs -2.2% vs -1.0%; Transports -1.3% vs +3.4% vs -0.9% vs -3.4% vs -1.4%; S&P 500 -1.1% vs +2.9% vs -0.7% vs -2.5% vs -1.2%; Nasdaq Composite -0.8^ vs +3.0% vs -0.3% vs -2.6% vs -1.3%; 100 -0.4% vs +2.6% vs flat vs -2.3% vs -1.0%; Russell 2000 -2.1% vs +4.2% vs -0.4% vs -3.4% vs -2.5%. So much for trimming the losses!

Global stocks are weak, especially Korea and India: FTSE -0.4% vs -0.6% vs +2.1% vs -3.6% vs -1.5%; CAC 40 -1.1% vs -0.3% vs +2.9% vs -4.7% vs -2.3%; DAX -0.5% vs -1.1%!!! vs +3.8% vs -5.3% vs -2.4% vs -1.6%; Nikkei -0.6% vs +0.3% vs +2.0% vs -1.9% vs -1.2%; Hang Seng -0.2% vs -0.7% vs +1.7% vs -3.0% vs -1.8%; Korean KOSPI -1.8%!!! vs +0.3% vs +3.8% vs -4.4% vs -0.7%; Indian Sensex -1.7%!!! vs +0.9% vs +1.2% vs -0.6% vs +0.9%, only net gainer. U.S. futures weak and slipping: DOW -100; SPX -11.70; NDQ -16.75.

Gold is weaker following its usual pattern: after hitting a record high of $1923.50 on Tuesday it plunged below $1900 and closed $1873.30. Overnight it is $1851.20 -$6.10. Crude falling again aftrer stalling for two days at the 40 day moving average and is now $86.94 -$2.11, with major resistance at $90!

 

…and now for the show…

 

Give ’em the old razzle dazzle
Razzle dazzle ’em
Give ’em act with lots of flash in it
And the reaction will be passionate
Give ’em the old hocus pocus
Bread and feather ’em
How can they see with sequins in their eyes?

What if your hinges all are rusting?
What if, in fact, you’re just disgusting ?
Razzle dazzle ’em
And they’ll never catch wise!

Give ’em the old razzle dazzle
Razzle dazzle ’em
Give ’em a show that’s so splendiferous
Row after row will grow vociferous
Give ’em the old flim flam flummox
Fool and fracture ’em
How can they hear the truth above the roar?
Throw ’em a fake and a finagle
They’ll never know you’re just a bagel,
Razzle dazzle ’em
And they’ll beg you for more!

Give ’em the old razzle dazzle
Razzle dazzle ’em
Back since the days of old Methuselah
Everyone loves the big bambooz-a-ler

Give ’em the old three ring circus
Stun and stagger ’em
When you’re in trouble, go into your dance
Though you are stiffer than a girder
They let ya get away with a murder
Razzle dazzle ’em
And you’ve got a romance

Give ’em the old Razzle dazzle
Razzle dazzle ’em
Give ’em an act that’s unassailable
They’ll wait a year ’til your available!

Give ’em the old
Double whammy
Daze and dizzy ’em
Show ’em the first rate sorcerer you are

Long as you keep ’em way off balance
How can they spot you got no talents?
Razzle dazzle ’em
Razzle dazzle ’em
Razzle dazzle ’em
And they’ll make you a star!

 – from Chicago! Yee haw!

…there in half of the column TB summed up Obama’s speech. Trouble is that he sounds this way all the time and nothing comes of it. How can you come on strong and end up looking weak? By incorporating the sound bites they can’t ignore with those you want. Normally this would be called compromise but not with this crowd. Furthermore, he promised to fund it…which is an impossibility, and said he would be back in a week with how he will do it…Houdini couldn’t do it! That gives the GOP ammunition to blast it, but carefully since their leadership rating is 13!

First some of the GOP didn’t up in protest, then when he commented on Buffett’s willingness to pay more taxes they broke out in laughter. Meanwhile Boehner sat there looking like an undertaker, after the warm (yeah right) greeting he shared with Joe Biden. This is the Grand Obstructionist Party at its worst. Don’t expect miracles. Dick Cheney set the stage for disrespecting the office by faking his leg injury so he didn’t have to stand when Obama was sworn in. If you doubt this, the comments he has made on others in his book shows his contempt for everyone but himself. He is a truly scary man.

Actually, had this been the original stimulus plan instead of the one proposed by his inept advisors, we might be getting somewhere. Time will tell how this plays out.

TB and others have said from the beginning that this was a totally trumped up crisis…that by working together Congress could make headway. First of all social security is not bankrupt…or wouldn’t be if Congress hadn’t raided the trust funds and replaced them with treasury bills now yielding zero percent and adding to the problems. Second, we have until 2037 to fix it and many fixes could have significant impact now. Means testing of seniors with minor children being paid when they don’t need the money comes to mind as an obvious blunder.

Medicare could be fixed and wouldn’t be nearly as bad off if Dubya hadn’t implemented Part D with the able support of the GOP-led Congress and the Dems.

Obama’s recommendations on regulatory reform made sense by not trashing financial regulation and health and safety.

There is nothing worse than an insider turned outsider to hurt you. Mike Lofgren is one of those people. He was a senior GOP staffer of 28 years, highly esteemed  who bolted in revulsion about what the party he believed in has become. Read what he says at Mike Lofgren/truth-out.org. He states that as soon as the elections were over a decision was made to ‘create a crisis’ and that was just what they did. While TB is no fan of Rahm Emanuel, at least he said “let no crisis go to waste” – not cause one. From the very beginning three things were obvious to TB:

1.they were blowing the budget problems out of proportion. They were a result of the financial bailout (what else could we do?) but began with two rounds of Bush tax cuts which reduced revenues, two wars, implementation of Medicare Part D, and economy induced reduction of tax revenues as a result of the financial crisis. Furthermore they repeatedly blamed the entire problem on Obama and the Dems

  1. the debt ceiling should not have been used to hold America hostage to a vocal minority
  2. they did not have and do not have any intention of compromising on anything substantial.

This is why TB has been so vehemently in opposition to the GOP. What they are doing is un-American and arguably treason. You decide.

. . .  – – –  . . .    . . .  – – –  . . .

Another friend and reader checked in with this note:

 
Got a chuckle out of Biden's "Barbarians at the Gate" speech in Cinncinati on Labor day 'cause there is a little historical irony. It was Cincinnatus, for whom Cincinnati is named, who was called by the Senate during the early days of the republic to come to Rome to keep the barbarians at the gate. Wonder if Biden knows, probably not. 

See what you learn from reading this column? Enjoy your weekend!

TB

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