11/22/11…call THEM irresonsible

…call THEM irresponsible

TB saiz: a committee with an even number of members is doomed to fail. Do you have any doubts about this…particularly with a presidential election a year away? Throw them all out!  Reform corporate America and you will also reform Congress…bet on it! (worth repeating as they did fail…set up to fail!). If Superman was the Supercommittee he wouldn’t need kryptonite to be weakened.

The following song of the errant Congressman is dedicated to those forthright people we call the Congress of the United States of America…God bless them…nobody else will! TB

Call me irresponsible – call me unreliable, throw in undependable too
Do my foolish alibis bore you, well I’m not too clever – I just abhore you
Call me unpredictable – tell me I’m impractical, rainbows I’m inclined to pursue
Call me irresponsible – yes I’m unreliable,
But it’s undeniably true – I’m irresponsibly bad for you

(as conducted by Grover Norquist)

-TB’s words in bold. With apologies to Sammie Cahn and Jimmy Van Huesen. By the way, it is a myth that Nero fiddled while Rome burned…the same cannot be said of this Congress…and we have twelve more months of these sick games…at least! The presidency is at stake.

 

Bloomberg Top Stories:

*Economy in U.S. Expands Less Than Estimated as Companies Cut Inventories – now you know why Target is starting Black Friday at midnight and WalMart at 4am – disgusting…tell them!

*U.S. Stock-Index Futures Extend losses as 2% GDP Growth Less Than Forecast

*Supercommittee Failure Poses Risk to U.S. Economy Even as Rating Affirmed – TB said he would have cut it…but Congress holds sway over these guys and they are afraid!

*Germany Sees No ‘Bazooka’ in Resolving Debt Crisis as Spanish Yields Surge – TB never figured out why Paulson said ‘a bazooka in your pocket?’ Behind you maybe, but…

*Dodd-Frank May Hamper Policy Makers Shielding Banking System in a Crisis – rightly so!

*Buffett-Beating Gains Gives Jobs Heirs Reason to Sell Apple, Disney – no man is an island

*Sears Rebound Vanishing in Swaps with 9% Jobless Rate – ah, but Black Friday looms!

*Vegas Monorail Plan Rejected With wide Creditor Support – good! We don’t need it!

*Education Bonds Returning 9.4% Assist Record Connecticut Sale

*JPMorgan Scrapping Mexican December Rate-Cut Forecast on Peso Slump

*Oil Abundance in Canada Sands Provoking Anxiety Over Lust for Fossil Fuels

*Oil-Tanker Return to Profit Threatened as Ships Seen Accelerating – slow is good for them!

*Wall Street Unoccupied as 200,000 Job Cuts Bring ‘Darkets Days’ to Bankers – get it folks?

*U.S. Joins Allies to Fight Iran’s Nukes by Targeting Its Oil, Central Bank

*Political Blame Game Begins Before U.S. Debt Committee Announces Failure

*Anti-Government Paul Reaps Biggest Gains from Government Workers – go figure???

*Taliban in Pakistan Declare Cease-Fire to Support Peace Talks, AP Reports – trust them?


Volume returned to an ‘average’ 4B shares from 3.7B as one might expect on a big down day!. NYSE stocks executed on the Big Board remaindd below average slumping to 932M shares from 955 shares from 1B shares making seven of the last eight sessions, including the lowest volume since May 27th (692M on the day before the Memorial Day weekend, a modest up day)! Low yet volatility remains high!?!  The market never gained traction yesterday and ended with 2% declines. Advance/Declines were very negative: -5.6:1 vs +1.4:1 vs -4.3:1 vs -3.3:1 vs +1.8;1 vs  -3:1 vs +6:1 vs +2.3:1 vs -9:1!!! vs on NYSE and -4.9:1 vs -1.1:1 vs -2.5:1 vs -1.3:1 vs +2.1:1 vs -3:1 v +3.6:1 vs +1.7:1 vs -6.9:1! on Nasdaq. Breadth was VERY negative: -14.6x vs -1.1x vs -13.6x!!! vs -5.4x vs +1.8x vs -5.5x vs +12.8x! vs +2x vs -60x!!! on NYSE and -3.9x vs -1.9x vs -4.3x! vs -2.7x vs +2.5x vs -3.6x vs +6x vs +1.6x vs -18x!!!! on Nasdaq. New 52 week highs rose slightly to 54 vs 48, while new lows rose by a third to 199 from 141. The ratio is now negative by 3.7:1.  VIX rose again and is back above the 40/50 day m/a’s at 32.00 -32.51!!!

Here are the results for the past nine sessions: Dow -2.1% by 30:0 vs +0.2% vs -1.1% by 14:1 vs -1.6% vs +0.1% vs -0.6% vs +2.2% vs by 9:1 vs -3.2% by 30:0; Transports -2.3% by 19:1 vs +0.6% vs -1.5% by 9:1 vs  -2% vs +0.8% vs -0.7% vs +2.8% vs +1.3% vs -3.8% by 19:1; S&P 500 -1.9% by 15:1 vs flat vs -1.7% by 19:1 vs vs -1.6% vs +0.5% vs -1%! vs +2% vs +0.9% vs -3.7% by 499:1!!!; Nasdaq Composite -1.9% by 5:1 vs -0.6%! vs -2%! by 3:1 vs -1.7% vs +1.1% vs -0.8% vs +2% vs +0.1% vs -3.9% by 7:3; Nasdaq 100 -1.9% by -5.7:1 vs -0.8%!! vs -2.3%! by 19:1! vs -1.7% vs +1.1% vs -0.6% vs +1.9% vs -0.1%vs -3.6% by 99:1; Russell 2000 -2.4% by 11:1!!! vs +0.1% vs -1.5% by 3.3:1 vs -1.8% vs +1.4% vs -1.6%! vs +2.6% vs +0.9%+3.9:1 vs -4.8% by 4.7:1; NYSE Financials -2.4% by 14:1 vs +0.5% vs -2% by 7:1 vs -1.8% vs +0.1% vs -1.8% vs +2% vs +0.4% 2.3:1 vs -5.6% by 63.5:1!!! BAC -5%!!! vs -0.3% vs -1.7% vs -3.8% vs +1.3% vs -2.6% vs +3% vs -2.1%; C -4.9%!!! vs +1.1% vs -3.2% vs -4.1% vs -1.3% vs -3.2% vs +2.4% vs -0.7%. Ratios are horrible! …and without that much volume!

 

Global stock markets weaker especially Europe for a SEVENTH straight day: FTSE flat vs -2.2%! -0.5% vs -2%!!! vs -0.8% vs -1% vs -0.6%; CAC 40 -0.2% vs -2.8% vs +0.1% vs -1.5% vs flat vs -2% vs -1.3%; DAX -0.6% vs -2.9% vs +0.2% vs -1.4% vs -1.1% vs -1.9% vs -1.1%%; Nikkei -0.4% vs -0.3% vs -1.2% vs +0.2% vs -0.9% vs -0.7% vs +1.1%; Hang Seng +0.1% vs -1.4% vs -1.7% vs -0.8% vs -2%! vs -0.8% vs +1.9%; Korean KOSPI +0.3% vs -1% vs -2% vs +1.1%! vs -1.6% vs -0.9% vs +2.1%; Indian Sensex finally up following EIGHT straight down sessions due to huge withdrawals from India funds: +0.8% vs -2.6% vs -0.6% vs -1.9%!!! vs -0.6% vs -1.4% vs  -0.4% vs 1% vs closed vs -1.2%. U.S. stock futures weaker: DOW -41; SPX -4; NDQ -13! Bonds flat but remain below 2% and 3% respectively: 10 yr 1.95% +1/16. RECORD low 9/23 of 1.6855%; 30 yr 2.94% +1/8; Long TIP 0.82% +3/16 vs .57% at high week ago Tuesday. The 5 yr TIP yields MINUS 0.80%! 10 yr +.03% vs -.03% Libor  0.50% 3 mo., and 0.71% 6 mo., a very steady upward climb – 3 mo. at 0.5% and six month approaching 0.75%…bears watching! Bills 0.01% from one month out to six months where it is just 0.05%! 

Gold modestly higher after tanking yesterday. It closed at $1678.60 -$46.40 and is now $1690.80 +$12.10. The record high is $1923.70, a buying climax on 9/6. RES is again $1712, the 50 day. Crude traded to highest since 5/5 on Thursday, $103.37, but sold off below $100 Friday, where it remains closing $96.92 -.49, and is now $97.82 +.90. It is still copying the pattern in gold when it peaks! Support at the 200 day (95.34), still rising. Major support is the convergence of the 50 and 40 day m/a’s, now crossed, at $88.96-.81, and also still moving up.

 

Groupon watch continues (GRPN) IPO Priced at @$20 11/3

Day1 $31.14-25.90 closed 26.11 +$6.11

Day2 $27.78-24.59 closed $25.97 -.14

Day3 $26.21-24.75 closed $24.90 -$1.07

Day4 $24.56-22.76 closed $24.02 -88 – gap down on open from $24.75-$24.56 – now res.!
Day5 $24.96-23.20 closed $24.41 +.39 – first up day and higher high, higher low!

Day6 $25.23-23.61 closed $24.25 -.16 – down again on an inside session

Day7 $24.16-23.40 closed $24.07 -.18 – lower high and lower low

Day8 $24.74-23.23 closed $24.07 unched – slight outside day (higher high, lower low)

Day9 $24.30-23.75 closed $24.03 – new low on an inside day…tell it goodbye!

Day10 $24.77-23.60 closed $24.77 +.74 – positive key reversal but volume is gone!

Day11 $26.25-24.20 closed $26.19 +1.32 – higher high but indicated opening is $24.19.

Day12 $26.90-23.28 closed $23.58 -$2.61 – despite higher high, higher low, new low close!

 

…the battle of ideologues continues to hold the American people hostage and most likely the standoff will continue until (or after) the 2012 elections. While TB does not totally endorse the Democratic side, the sham tax increases (cutting loopholes while lowering the marginal rate for the top 1%), could not be backed without offending their constituencies (including TB!). Furthermore, their insistence that the Bush tax cuts, which created the deficit problem in the first place, be made permanent showed their insincerity towards compromise.

 

Meanwhile, the markets reacted accordingly, the rating agencies said they won’t cut the rating, although on the basis of their original cuts it should have been done…after all, the reason was the dysfunctional Congress. For his part, Obama failed to show leadership…again.

 

So both the people and the markets are under the spell of the most dysfunctional Congress of our lifetime…disappointing and disgusting.

 

. . .   – – –  . . .

Here is a letter to the SEC TB wrote on banning CEO’s from also being board chairmen of their company:

 

As an investment professional I am appalled at the number of corporations where the CEO also is the board chairman.

I am appalled that the SEC allows this despite the refusal to act on the majority of advisory votes by shareholders, especially when most shares are held by mutual funds who vote with management. The SEC is failing to enforce the duty of corporate boards to act as stewards to the shareholders.

CEO’s often argue that it is cheaper to not have an outside board chairman. Given the size of CEO compensation packages, even when performance is poor as shown in this table adapted from AdvisorOne magazine on the eight most overpaid CEO’s in America.

In every one of these cases the CEO is also Chairman of the Board! Add to the Jon Corzine who destroyed MF Global, and Jamie Dimon of JPMorganChase who has opposed all attempts at reform. The will of the shareholders is not being protected. That is the job of the SEC.

Hopefully, someone in your organization will consider this and investigate doing something about an abuse of corporate power at shareholder expense.

Sincerely,

 

William J. Darusmont

 

If you agree and wish to add your comments email: chairmanoffice@sec.gov

(note that there is no ‘s’ on chairman…strange that)

 

Just keep thinking of Thanksgiving and turkey! Don’t be one!

 

TB

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: