Financial topics

[malleni]

Little more about "the confidence"...

yesterday text:
http://www.bloomberg.com/apps/news?pid= ... V0pFcAFyZw

But, please look at the language:
"...
Referring to the Federal Reserve “as the world’s biggest junk investor,” and to Chairman Ben S. Bernanke as “helicopter Ben,” Yu said the Fed has dropped “tons of money from the sky since the subprime crisis.”

“The balance sheet of the Federal Reserve not only has expanded like mad but is also ridden with ‘rubbish’ assets,” he said.
..."

If that is not "the LOST confidence" - I do not know what confidence is.

[gerald]

A comment I read years ago, I forget where, may be appropriate
" The American people are treated like mushrooms, they are kept in the dark and fed manure".

[aedens]

Spain next malleni on IMF short list to bail? I cannot see the EU rushing in for them in Latvia but i do not there peg rate?
As stated on the sidelines "nuetral" untill October or next douple dip buy.
I thinks the cascade may of begun...
Russia is cracking quicker then I assumed on capitilazation.
It is past confidence issue now.

http://zerohedge.blogspot.com/2009/06/l ... y-and.html

[jwfid]

More on Latvia from AEP at the Telegraph:

http://www.telegraph.co.uk/finance/fina ... Europe.htm

Joe

[freddyv]

This is a quote from Bill Gross of PIMCO on Bloomberg Radio:

"I think it is important to recognize that General Motors is a canary in this country's economic coal mine; a forerunner for what's to come for the broader economy. Their mistakes have resembled this nation's mistakes; their problems will be our future problems. If the U.S. and General Motors have similar flaws and indeed symbiotic fates, they appear to be conjoined primarily by the un-competitiveness of their existing labor cost structures and the onerous burden of their future healthcare and pension liabilities. Perhaps the most significant comparison between GM and the U.S. economy lies in the recognition of enormous unfunded liabilities in healthcare and pensions. Reportedly $1,500 of every GM car sold in the dealer showrooms goes to pay for current and future health benefits of existing and retired workers, a sum totaling nearly $60 billion. The total future healthcare liability for all U.S. citizens can be measured in the tens of trillions."

I concur, indubitably.

--Fred

PS - Credit to Richard Russell and his newsletter, where I lifted the quote from.

[freddyv]

A comment I read years ago, I forget where, may be appropriate
" The American people are treated like mushrooms, they are kept in the dark and fed manure".

We are only treated that way because we allow it. The American people have been bought off with trinkets while the powers-that-be can do anything they wish, right in front of us and no one seems to care.

--Fred

[aedens]

It appears that the inability of the political and business elite to learn anything from their own mistakes is a chronic and incurable condition "History".
The question now is whether the next big shock will make society more able to learn the lessons from the crisis. We know the answer to that already.
Would the world be a better place without the dollar? It will not matter, we will move a plant from Bruessels to Italy for a reason, we built one in China.
You know as well as I do what the root of the matter is. SDR in more stable zones "basket currency" will enable captial to where it is needed - eco 101
posted long long ago. Marx is dead and we go where his ideas are allowed to die. All China has to do is pay attention to domestic growth and expansion and we discussed that circa 1986 with my freinds from bejing. Do not think my postings are Political. I hate politics and suggested Human Action "mises" and saved him money on the tech bubble. He was very happy on that call and yes he has two PhD's. Some have the tools to see trends and science applications. I work with men and women from all over the planet and the frontal issue is intel on what we cannot invest in given ground condition.
Because of their perceived success, call them what you may, 4GW challengers will not be a passing fad nor will they remain low tech killers. Our opponents eagerly learn and adapt rapidly to more efficient modes of killing. We can no longer overlook our own vulnerabilities as societies or underestimate the imaginations of our antagonists. In a world of 4 GW or Hybrid Wars, the price for complacency and inept strategy only grows steeper. Breif yes, does my Employer want me to post? No but some things are more important. Missing is some crucial context but we agree more than you can imagine between the lines....
Clarification for edification is -the bloggers ability to see ahead of the curve.-

I’m wondering why the post above by mellini on the Fed manipulating the market hasn’t gotten more discussion. It seems that major newspapers should be screaming in their headlines “Fed Manipulating Stock Market!” How bad must things be if the Fed has to print off and dump $20 billion into the market every week or so to keep it from crashing? Here’s another “green shoot” that has the government’s hands all over it. As Matt Stiles pointed out, this is all like Weekend at Bernies, with the government trying to prop up a dead economy.

Another view.....

Aedens,

In my point of view - it is definitely not so complicated as you described in this text.

I really do not see the reason to "explain" obvious fraud with 1000 words. <-------------- sorry was typeractive that night had some time...

btw 88.82% of stocks on the NYSE are now above their 50 day moving averages so yea duck and cover IMO. But it is never the short sellers that cause a decline. A major decline only occurrs when the majority are all on one side. If you reach the point that 85-95% of investors are bullish, you have sucked in the last guy. All you need is to spook that herd, and it will turn and run collectively. When you scare the majority, you have 85-95% sellers and no buyers. Never will you find that many shorts at the high. Those who sell the high against a bullish consensus of 85% - 95%, are a slim minority.


The only consistent sector of derisking was basic materials with $20 billion in CDS sold. TD
Irony: --"Your workers will be limited, My child. It is necessary for your safety and the well-being of your mission with Us. Your greatest adversaries will be those who should know better. August 15th 1971

[malleni]

Spain next malleni on IMF short list to bail? I cannot see the EU rushing in for them in Latvia but i do not there peg rate?
As stated on the sidelines "nuetral" untill October or next douple dip buy.
I thinks the cascade may of begun...
Russia is cracking quicker then I assumed on capitilazation.
It is past confidence issue now.

http://zerohedge.blogspot.com/2009/06/l ... y-and.html

Aadens,

I agreed completely that there are huge problem in EU too.
it would be stupid to deny it.

But, even before on some discussion I accented the dimension of one country which are investigated.
The explanation is simple:
"The quantity - does meter - in economy."

So when you for example talking Latvia:
https://www.cia.gov/library/publication ... os/lg.html
... you are talking about small country of about 2 million people with TOTAL GDP of about 2 billion $ !!!
(remember: Just GM is "short" about 100 billion $ now when Obama administration is bought it!)

Additionally - Latvia is not in Euro zone so I do not thinking that this will be a "great problem" for EU... (it is just simple as usually - "Anglo-Saxon nonsense" on work... and since Anglo-Saxons at present day manipulate 90% of word media - it is not strange at all that they now screaming - Wolf, wolf....)

You have right about Spain. It is a bigger problem for EU, but I do not think that EU will rush to "bail out" this country (and NO other for this meter neither).
Simple - not because ECB does not want to do it - but because it CAN NOT do it.
There:
1. "the Law" - The Treaty of Maastricht - which do not allowed ECB to bail out any country in EU (and STRONG opposition of Germany to change it)
2. the inefficiency of the EU bureaucracy - which can not agree about anything (which I understand as very good in those times)

You see what happened of ECB "baying" of EU "treasury" in the last month... The decision(but only "the "decision"-nothing more) to 60 billion EUR would be bought was (very difficult!) made - but nothing happened since it...
Here is one Anglo-Saxon argued about this event:
http://www.guardian.co.uk/business/feedarticle/8513677

On the other side you have very effective FED and US administration with already enormous "bail-out" packages for everybody... (at least 500 billion $ until now and planed more massive in future!)

I you looking "the countries" (as you did) AND do not forget "the quantity" - that California is even better example to research:
http://en.wikipedia.org/wiki/California#Demographics
- The country of 37 million citizens.
- 8th largest economy of the World with total GDP of 1.8TRILLION $!

Now governor of California saying this:
- California will run out of cash in 14 days
http://www.bizjournals.com/pacific/stor ... ily23.html

... and Anglo-Saxon media is not interested at all...
No.
The poor Latvia is more "interesting" as well as more "dangerous" for EU!!!
Please...
Give me a brake...


But Aadens,
I think that there is one good reason to discuss EU too.
Namely - due to EUs inefficiency and no-ability to print money (inflate) on the one side and destruction of credit on the other side - I think that EU is heading to some kind of US 30-ties great deflation.
Additionally - I think that this will be very hard, but also good for the EU despite all.
Some people on this forum just love deflation and I could agree with them on this point.

Regarding US - I am so sure that in US will not happened neither "D" of deflation.
There you have just huge - inflation and perhaps even currency destruction i.e. hyperinflation.

[gerald]

Regarding the health care and pension problem there is a solution, nature's way. Nature, ultimately, always has the final say.
The solution.--- From a cost benefit perspective if you do not work, you do not eat. Regarding health care, if the cost is excessive verses the persons future productivity, sorry. Yes, this is a cruel approach, but societies have done this before, in order to survive. As an extreme example, you can't have every healthy productive person taking care of an old nonproductive person, After all, who is then left to create the goods necessary for survival? By the way, I am in my 60's, reality is reality.

[The Grey Badger]

There are two considerations here -

1) Those that have worked and have earned pensions. The pensions, like the health benefits, are actually part of the person's salary, but the first is (as today's catchword goes) "deferred salary" and the second is, like all benefits, "in lieu of salary."

2) Those who are too young to work and whose parents either can't support them, won't support them, or are dead.

A subset of those are teenagers who are quite able to do some jobs but whom our very own labor laws relegate to begging, stealing, and prostitution.

Your answer in such cases?