10/18/11…Occupy America

TB’s Quotes of the Day, thanks to Will Beaumont (in memory of Ken Kaufmann):

 

Thomas Jefferson: “I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power (of money) should be taken away from the banks and restored to the people to whom it properly belongs.”

 

John Adams: “All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation.

A Revolution of government is the strongest proof that can be given by a people of their virtue and good sense.”

 

James Madison: “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and it’s issuance. 

Of all the enemies to liberty war is, perhaps, the most to be dreaded because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes, known instruments for bringing the many under the domination of the few. No nation could preserve its freedom in the midst of continual warfare.

I believe there are more instances of the abridgment of the freedom of the people by the gradual and silent encroachments of those in power than by violent and sudden usurpations.”

 

Abraham Lincoln: “The money powers prey upon the nation in times of peace and conspire against it in times of adversity. It is more despotic than a monarchy, more insolent than autocracy, and more selfish than bureaucracy. It denounces as public enemies all who question its methods or throw light upon its crimes. I have two great enemies, the Southern Army in front of me and the bankers in the rear. Of the two, the one at my rear is my greatest foe.

I see in the future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong its reign by working upon the prejudices of the people until wealth is aggregated in a few hands and the republic is destroyed.”

 

Theodore Roosevelt: “The death-knell of the Republic had rung as soon as the active power became lodged in the hands of those who sought, not to do justice to all citizens, rich and poor alike, but to stand for one special class and for its interests as opposed to the interests of others.”

 

Dwight D. Eisenhower (on the military-industrial complex which is also a problem…why are we still in Afghanistan?) “Every gun that is made, every warship launched, every rocket fired signifies in the final sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, the hopes of its children. This is not a way of life at all in any true sense. Under the clouds of war, it is humanity hanging on a cross of iron.”

Still think Occupy Wall Street is a joke? Every financial crisis is brought on by the banks themselves…always has been always will…and as Simon Johnson said, “every crisis the IMF was called in on was due to the financial sector getting too close to the government.” T Of course, there was Herbert Hoover, venerated by the Institute that bears his name, but for what? He did

 

Bloomberg Top Stories:

*Goldman Sachs Posts Second Qtrly Loss in 12 Years After Markdown! Coming to roost?

*Wholesale Prices in U.S. Rise More Than Economists Estimated on Food, Fuel – not to worry!

*Stocks Fall on French Rating Concern, China’s Economy –yeah, that’s the reason! NOT!

*BofA Said to Split Regulators Over Moving Merrill Derivatives to Bank Unit – just do it!

*France Risks Loss of Top Grade as EFSF Bailout Fund Expands – and the beat goes on…

*Citigroup Plans to Shutter Proprietary Unit After Rout in Equity Trading – never fails, does it?

*Losing $13.5 Billon to Piracy Spurs Microsoft-Led Europe Legal Push – finally?

*Steinhardt Pledging Picassos for Stock Exchange Shows Appeal of Art Loans

*Lehman, Deutsche Bank Dispute Meaning of English Words – as in ‘bankruptcy’

*Shalit Freed as Israel Begins Prisoner Release That May Spur Peace Talks

*Former Royal Marines to Fight Pirates Off Africa as Shipping Under Attack – duh! Finally!!!

*Candidates Channeling Reagan Don’t Talk About His Record of Tax Increases – very selective!

*Los Angeles Wooed by Occupy Wall Street Protest May Face Higher Debt Costs
Volume barely budged to 3.74B shares from 3.64B shares from 3.94B shares on a big down day with disappointments both from the G-20 (as TB predicted), and bank earnings reports. NYSE stocks executed on the Big Board rose slightly to 905M shares from 847M shares, marking five of the last six days below 1B shares! Advance/Declines were negative: -4.5:1 vs +5:1 on NYSE and -4.5:1 vs +3:1 on Nasdaq. Breadth was even more negative: -7x vs +6x  on NYSE and -5.3x vs +3.2x on Nasdaq! New 52 week highs dropped to 40 from 55, while new lows which rose to 56 from 37. The ratio turned NEGATIVE again leaving it positive for just two one day periods in months! VIX ROCKETED to 33.39 +5.15!!!, and worse gapped up on the open and closed another gap from last week! CAUTION!!!! – but didn’t TB warn of that all last week??? The 40 day (36.24) and 50 day (36.44) remain res. 30 is again support followed by the 200 day, 22.92.

Here are the results for the past six days, yesterday wiped out almost all of last weeks gains and we are looking DOWN today. FRIDAY is OPTIONS EXPIRY: Dow -2.1% vs +1.5% vs -0.4% vs +0.9% vs. -0.2% vs +3.0%; Transports -2.8% vs +2.2% vs -0.6% vs +1.3% vs. +0.2% vs +3.9%; S&P 500 -1.9% vs +1.7% vs -0.3% vs +1.0% vs. +0.1% vs +3.4%; Nasdaq Composite -2% vs +1.8% vs +0.6% vs  +0.8% vs +0.7% vs +3.5%; Nasdaq 100 -1.6% vs +1.9% vs +0.9% vs +0.8% vs +0.7% vs +3.5%; Russell 2000 -3.4%!!! vs +2% vs -0.2% vs +1.7% vs. +0.6% vs +4.4%; NYSE Financials -2.9% vs +1.2% vs -1.7% vs +2.5% vs -0.3% vs +4.7%. Citi declined 1.7% despite the earnings surprise; BAC -2.6%; WFC -4.2%!!! – all leaders, JPM fell another 2.7%!!!

Global stock markets are being hammered: FTSE -1.1% vs +0.2% vs +1.1% vs -0.9% vs. +0.3% vs -0.7%; CAC 40 -1.6% vs +0.1% vs +1.2% vs -1% vs. +1.4% vs -0.5%; DAX -0.2% vs -0.1% vs +1% vs -1% vs.+1.2% vs -0.3%; Nikkei -1.6% vs +1.5% vs -0.9% vs +1% vs. -0.4% vs +2%; Hang Seng -4.2% vs +2% vs -1.4% vs +2.3% vs +1.0% vs +2.4%; Korean KOSPI -1.4% vs +1.6% vs +0.7% vs. +0.8% vs. +0.8% vs +1.6%%; Indian Sensex -1.6% vs -0.3% vs +1.2% vs. -0.4% vs. +2.6% vs -0.1%. US futures weak too, except Nasdaq: DOW -45; SPX -3.50; NDQ UP 3.50? Bonds sharply higher: 10 yr now 2.12% +5/16, off a RECORD low 9/23 of 1.6855%; 30 yr  3.10% +9/16; Long TIP still barely above 1%! 1.02% +11/16.

Gold plummeting after falling modestly yesterday. It closed $1676.60 -$6.40), following 9/26’s low of $1534, lowest since 7/6!), but is now $1642.20 -$34.40!!! 9/23’s low was nearly to the 200 day, $1536.60, now critical support. The record high is $1923.70, a buying climax on 9/6. Res is at convergence of 40/50 day: $1750. Crude was also down yesterday, closing at $86.38 -.42, and is off slightly overnight to $86.09 -.30. 10/4’s close was lowest since 9/23/10 as was low of $74.95! Major sup/res at $85, convergence of 40 and 50 day m/a’s. Beware of options expiry on Friday!!!

…OWS has now spread to most major cities while the GOP continues to decry them and says they aren’t saying what they want…it is very clear what they want from today’s quotes above! They want a Congress that answers to the people…they want to stop the way Wall Street creates boom/busts yet prospers in either event. They are sick of a Congress where ideologues prevent any solution to the crisis. Hard to capsulate all that, but that is what they want. Sure, some of them are whiners, but not the way Herman Cain suggests…what a guy! According to him they are just lazy and jealous since he made it so anyone can. Think again Cain…didn’t Cain kill his brother? Oh, that was the other Cain. This is the Cain of 9-9-9 who if successful, which he won’t be as the tax lobby will prevent ANY tax reform as it has since the Reagan days…before?  Michelle finally got it right when she said, turn the numbers upside down and you will see that the devil is in the details. Meanwhile Cain can only say ‘do the math’ as he did and some public accountant from Toledo or whatever? Did that PA ever take an econ class? Doubtful.

 

The banks, not people created the crisis. You can apply for all the loans you want but if your credit isn’t good you shouldn’t be able to get one…yet the banks not only did that, some falsified numbers to put you into that home! So who should be blamed, people who have watched home prices soar and found that is the only way for them to make money (certainly not from the niggardly pay raises they have received over the past 30 years…of course Perry says just cut the minimum wage and you will create jobs…what kind of jobs, Rick?).

 

But the banks weren’t stupid…or the mortgage companies…they leveraged themselves knowing they would sell them to…drum roll please…WALL STREET!!! …with just 60 days recourse (in the end that couldn’t even save them from their greed). Of course, Goldman, Merrill, and the like packaged this crap up into pools which the rating agencies through an incredible feat of alchemy turned into Aaa/AAA for the most part, but as all who buy from the alchemist know…it is fools gold! Don’t you feel foolish? About as much as you did buying stocks like thiswon’tfly.com?

 

Of course the banks have been doing this to you for decades…Sandy Weill’s Citi, Chase, Capital One, BofA, and others sending out unsolicited credit cards to bad risks because miss a payment and you pay 28% interest…it’s all in the numbers…just like alchemy though, it doesn’t work!

 

Come on people, vent your anger at the culprits instead of those who the Koch brothers backed Tea Party has told you to blame…where are the good guys? Worse, where are the leaders???
. . .   – – –  . . .

The tragic accident that took the life of Greg Wheldon was sooo Las Vegas. The promoters  wanted excitement, they got excitement. They started Wheldon last with the lure of a $5 million prize. This is not NASCAR, this is open-wheel racing and there is nothing riskier. Wheldon found out the hard way because when his wheel contacted the car ahead at 220 mph…while running four abreast…he went airborne, as did at least one other car. That is a very sad ending to a life.

 

A friend wrote about the three hikers held in Iran and their heroes welcome. He was appalled as what they did was stupid. TB took it as a sense of relief but at great cost to the taxpayers. This, like the camera crew who crossed the Yalu River into North Korea was foolish and reckless. What were they thinking? TB suspects they don’t feel like heroes…and they have already suffered.

 

Have a grand day!

 

TB

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