12/8/11…lies, damned lies, and…

Bloomberg Top Stories:

*ECB May Dig Deeper to Stimulate Bank Lending After Cutting Key Rate to 1%

*Euro Weakens, German Two-Year Bond Yield Reaches Record Low After Summit

*Draghi Courts Bundesbank in Bid to Avoid Trichet’s Fate on Bond Purchases

*China Banking Crisis Led by Bad Debts Seen by 61% in Global Investor Poll

*Bernanke Favored by 71% in Poll of Global Investors Preferring Fed to ECB

*European Calls Highest in 20 Months Before Leaders Meet on Crisis

*Companies Face $12 Trillion Equity-Funding Shortage by 2020, McKinsey Says

*Falling U.S. Mortgage Debt Erodes Consumer Spending as Wealth Effect Fades !!!

*Franco-British Alarm of 1989 Comes True as Merkel Drives EU Crisis Plan

*Corzine to Tell Panel He Doesn’t Know Where Missing MF Global Millions Are – HAH!

*Republicans Seeking Jewish Support Say Obama Undermines Israel Security – Desperate?

*U.S. Delay on Climate-Change Deal Prompts Backlash From Europe to Barbados

Volume rose again to an average 4.1B shares from 3.73B shares, in a second hodge-podge session producing mixed results. Meanwhile, NYSE stocks executed on the Big Board rose to a still below average 968M, from 802, and while still 10% below average,the the first 900M share day in the last five sessions! Also,17 of the last 19 sessions have been less than 1B! Don’t get lazy here! Advance/Declines were weak and mixed for a third session:+1.1:1 vs +1.1:1 vs +3.5:1 vs +1.4:1 vs -1.5:1 vs +30:1 on NYSE and -1.2:1 vs -1.3:1 vs +2.2:1 vs +1.5:1 vs -1.6:1 vs +4.5:1 on Nasdaq. Breadth was also mixed: +1.8x vs -1.1x vs +5x vs +1.6x vs +1.2x vs +30x on NYSE and -1.2x vs -1.5x vs +3x vs -1.1x vs +1.3x vs +10x on Nasdaq. New 52 week highs slipped to 135 from 143 while new lows rose to 70 from 66….climbing again! The ratio fell to less thabn 2x positive. VIX ROSE for a THIRD session, albeit slightly. It closed 28.67 +.54, remaining above the 26.46-27.01 gap up from 10/27 and 10/31. Meanwhile the 12 mo. ave. lies at 23.65 – fear still prevails!

Here are the results of the past six sessions: Dow +0.4% vs +0.5% vs +0.6% vs flat vs -0.2% vs +4.2%!!!; Transports +0.1% vs -0.8% vs +1.5% vs +0.8% vs -0.8% vs +4.8%; S&P 500 +1% vs flat vs -0.2% vs +4.3%; Nasdaq Composite FLAT vs +0.1% vs +1.1% vs flat vs +0.2% vs +3.8%; Nasdaq 100 FLAT vs -0.2% vs +1.1% vs -0.3% vs +0.6% vs +3.8%; Russell 2000 -0.1% vs flat vs+1.6% vs +0.6% vs +0.9% vs +5.9%!!!; NYSE Financials UP 1%? vs -0.1% vs +1.8% vs +1.3% vs  -0.9% vs +5.9%.  Leaders: BAC +1.9% vs -0.2% vs +2.7% vs +1.7% vs +7.3%!!! C +0.3% vs -0.3% vs +5.9%. This despite layoffs at Citi and lowered revenues???.


Global equity markets weaker, except UK: FTSE +0.3% vs -0.4% vs +0.2% vs +0.7% vs +1.5% vs +0.5% vs +2.9%; CAC 40 -0.4% vs -0.5% vs -0.5% vs +1.4% vs +1.9% vs flat vs +3.5%;  DAX FLAT vs -0.9% vs -0.8% vs +0.8% vs +1.7% vs -0.5% vs +4.2%!; Nikkei -0.7% vs +1.7% vs -1.4% vs +0.6% vs +0.5% vs +1.9% vs -0.5% vs +2.3% vs +1.6%; Hang Seng -0.7% vs +1.6% vs -1.2% vs +0.7% vs +0.2% vs +5.6%!!! vs -1.5% vs +1.2% vs +2% vs -1.4% vs -2.1%!!!; Korean KOSPI -0.4% vs +0.9% vs -1% vs +0.4% vs flat vs +3.7% vs -0.5% vs +2.3% vs +2.2% vs -1% vs -2.4%!!!; Indian Sensex -2.3%!!! vs +0.4% vs closed vs -0.3% vs +2.2% vs +2.2% vs +0.7% vs -1% vs +3%, up only 7 times in the last 20 sessions and today’s wiped out the attempted rally. U.S. stock futures weaker and mixed: DOW -11; SPX -3; NDQ +2.50. Bonds weaker with 10’s and 30’s still above 2% and 3% respectively. 10 yr 2.06% -5/16. RECORD low 9/23 of 1.6855%; 30 yr 3.10% -11/16; Long TIP 0.84% -3/4. 0.57% at high three weeks ago. The 5 yr TIP yields MINUS 0.91%! 10 yr -0.04%. 3 mo. Libor 0.54%, and 0.76% 6 mo. – 3 mo. above 0.50% and six month above 0.75%…stable but yearend approaches! Bills -0.01% one month, 0.00% 3 months. 6 months 0.04%.

Gold rallied Wednesday and remains above $1700. It closed at $1744.80 +$13 and is now $1747.70 +$2.40. The record high is $1923.70, a buying climax on 9/6. SUP is $1710/1725, the 40/50 day m/a’s. Res at $1800-1806, the November highs. Crude dipped slightly Wednesday closing $100.49 -.79, and is now $100.94 +.45. $100 holding – so far! Support at the 200 day (96), still rising. Major support is the 40/50 day m/a at $95.12-92.43, also still moving up.



…Tb won’t even call it politics…it’s blasphemy! Jon Corzine scheduled to testify before Congress…wonder how they will treat a ‘brother’? He says he has no idea where client money went…uh huh, Jon! Just keep lying as you have done for so long now.


We continue to delude ourselves that all is well in Europe…hell, the rest of the world. This despite a Global Investor Poll which shows that two-thirds see a banking crisis brewing in China. They have crony-capitalism (sic?) there that would even embarrass the U.S. Friends get lent money, then lend it to those who can’t get it at Mafia rates of interests…they have had suicides over an inability to pay. Many of these are sound companies who cannot get money elsewhere.


Do you really believe all is well with the world? Seriously? Do you really believe that given the record levels of volatility – in stocks AND bonds, on an almost daily basis…that stocks represent value? Do you believe CEO’s of the biggest companies…especially financial stocks deserve what their packages dictate they get? Do you believe that the board of directors represents you, the shareholder? If you can answer ‘yes’ to all of these questions you are either delusional or TB doesn’t know a bond from a hole in the ground. Wake up and smell the napalm! It’s nice!


. . .   – – –  . . . note that the same old SOS applies…perhaps more so after the rally!

Thomas Jefferson said that an informed electorate is the key to a democracy. He was right!


Now contrast this to the ‘anyone but Obama’ theme…is it rational? Is it informed? Given the candidates the GOP has proposed and the fact that they are dominated by the evangelical vote at this time anyway, do you really want anyone but Obama?


This is not an endorsement of Obama but it is disgusting to hear him blamed for things he inherited…and which came about due to the GOP being in control of the White House and Congress. Of course the Dems did their share when in control, but at least they aren’t being hypocritical about it. We have already lost at least two (Perry and Cain), hopefuls that were scary in their lack of understanding of how government functions, and Bachman could be a third. She who wishes to teach Intelligent Design along with evolution and let the kiddies decide. What about separation of church and state…the evangelicals she is pandering to, are already teaching them that. Worse, it is carrying over to spending on science…where we limit stem cell research, and deny global warming, making us look like total fools.


TB can find so many things to criticize Obama without the lies being spread by Romney, who when called on them became irate, and now Gingrich, who accuses him of cutting defense spending when the evidence does not support this…yet both stand by their statements. Pity.


Capitalism is defined as ‘creative destruction’ and so it is…but what do you call this? Denial? Foolish Destruction?


Have a great day…and again, don’t let the Buzzard’s get you down!




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