Market Sniper

Desmond Lachman at the American Enterprise Institute doesn't get the logic of giving Big Ben another term: "The Fed chairman's tenure has been checkered at best. There must be other candidates who could be expected to do a better job."

Think Bernacke is out and Summers is in. Got to give those Goldman boyz better jobs you know. To be a central banker, one must leave his scruples, ethics and morality at the door. Got a much better idea, the abomination known as the Federal Reserve System needs to be abolished. It is unconsitutional in every aspect and needs to be swept into the dustbin of history as just another failed "experiment." A free people need to be in the control of the money and possess it. Honest money. Money not subject to manipulation by craven politicians and central bankers.

Kristjan Velbri wishes gold bulls would stop whining about price manipulation. "There are much larger forces in play that will determine the price of gold in the coming years."

Feeds into the perceiption manipulation. Gold manipulated? Of course it is! Two banks hold 90+% of the active short position in gold futures and basically are woking a short corner in the gold futures market. They are exempt from position limits a they also just "happen" to be the trustee banks for the two largest gold ETFs and therefore, are "qualified hedgers"! Gold does NOT fluctuate in value! The perceived values of fiat curencies fluctuate in value! Gold is quoted in dollars (or another fiat of your choice). Turn that on its head. Start thinking of dollars quoted in gold. Might be able to escape the perceiption manipulation then. I do not care what the so called "price" of gold is, I just convert my fiat into gold every chance I get. The "price" goes "down", great, I just get more gold when I buy. You convert paper to real money as often as possible. The lessons of history are VERY clear on this subject. Ignore history at your own peril.

Closing Update for July 2

Continued.....The previous large divergences in order of magnitude were 2001, 1973, 1974 and 2002. In each case, markets were significantly lower in the second half of the year. Just a heads up, folks.

Closing Update for July 2

Good a time a any to look a little history. Year to date the Nasdaq is +11.9% and the DOW is -8.05%. This is the secod laget divergence since the founding of Nasdaq

Book Review: What Has Government Done to Our Money and The Case for a 100 Percent Gold Dollar

Rothbard has done more damage than any wing of the Austrian School to the case for a return to the gold standard with the foolish arguement for 100% backing. The British Gold Standard stood the test of time for over a century with an average of 19% backing. With absolutely unrestricted convertability to specie, 100% backing is not only foolish, it is dangerous. Such a situation led to numerous liquidity crises in the United States, the last of which, the Panic of 1907, led to the abomination known today as the Federal Reserve System. The mere FACT that you can convert to gold on demand requires prudent fiscal and monetary policies be pursued. No need for 100% backing.

Employment Numbers Uniformly Horrible

I suppose the USA should put Austria first, right Vienna? LOL..we did. We elected one of your native sons as governor of California. Look what THAT did for us, first state to be going bankrupt. LOL


On Jul 03 05:52 AM Vienna wrote:

> You have always been putting america first ! Your poured your toxic
> assets all over the world, bombed countries to fund your military
> complex, and buy tons of cheaps stuff from poor people to generate
> massive revenues for your corporations.
> US was one of the few countries not to sign Kioto protocol, so don't
> complain about environmental standards of other countries.
> What more do you want to to for america.

Employment Numbers Uniformly Horrible

Very major problems with the unemployment figures: 1) Birth/death deflator is skewing the numbers. Per shadowstats, take that manipulation out and we are north of -700,000 jobs for June and under reports unemployment by 2.5 million per year; 2) It does not measure people that have lost unemployment benefits (numbers will only grow for a while on that one!); 3) it does not measure self-employed whose businesss have gone up in smoke (think real estate related-leasing agents, brokers, appraisers, etc.); 4) it does not measure people who have not been employed looking for work (think recent college graduates); 5) it does not measure discouraged unemployeed, those that have just given up and 6) it certainly does not measure marginally employed, those part timers at Burger King looking for full time work. No, these statistics can now be taken with a grain of salt.

This chart shows just how deep the current job loss cycle is compared to previous recessions.

That chart is barely half the story. per Shadowstats, the ACTUAL unemployment number today was north of -700,000!.per shadowstats...June Jobs Loss Was 513,000 Net of Concurrent Seasonal Factor Bias Likely Topped 700,000 with Birth-Death Machinations.Payroll Employment Growth Overstatement Could Top 2.5 Million Per Year with Birth-Death Modeling. Do not believe these numbers being generated. In the immortal words of Benjamin Disraeli..there are three kinds of lies. Lies, damn lies and statistics...or as Dear Old Dad Used To Say...figures lie and liars figure!

Bank failure number 52 for the year and number 7 for the day: Founders Bank, Worth Illinois.

Gives a whole new meaning to New Jack Citi, does it not? LOL


On Jul 02 08:31 PM herbert hoover wrote:

> How the hell does Citigroup stay open?

What to Do in This Market? Just Stay Put for Now

To confirm head and shoulders, need SPX at 8800. And EVERYBODY is looking at that. That is bothersome in and of itself.


On Jul 01 07:06 PM Jimbob wrote:

> Look at the chart above. A Head & Shoulders has just been created.
> Very bearish - look out below.

What to Do in This Market? Just Stay Put for Now

Yes, good advice. Might take a straddle option position in one or more of the broad market indexes for July, August and/or September. Should move fairly large in one direction or the other.

As the SEC plans to shed the first glimmer of light on "dark pools" (private, opaque trading markets) likely by having them report monthly volumes, a debate continues over whether retail investors might still get left in the dark.

LOL! You have a point! However, due to the gangster "overtones" of what now passes for the "economy", you think these guys are NOT making money? LOL...Upon taking a tour of Wall Street, Al Capone was overheard to say..."I am in the wrong racket!"

On Jun 29 07:50 PM staples - weebs wrote:

>
> Please do not insult the Mafia like that. They know how to run a
> business.

Calculated Risk takes a position quite different from Mike Shedlock, who calls Ben Bernanke "a disingenuous liar with a memory problem." Quoting James Hamilton: "As someone who's known him for 25 years, I would place him above 99.9% of those recently in power in Washington on the integrity dimension, not to mention IQ."

Well, maybe Jimmy like to go drinking with Ben and thinks he is a great guy. As far as a Fed chairman, may not be a bad as Mr. Magoo (Sir Alan Greenspan) but smart and not a liar? We will let history be the judge. Think Helicopter Ben gets replaced by Mr. Larry Summers at the end of the term. Got to give those Goldman boyz better jobs, ya know. Integrity? Having integrity disqualifies the applicant for any job as a central banker.

As the SEC plans to shed the first glimmer of light on "dark pools" (private, opaque trading markets) likely by having them report monthly volumes, a debate continues over whether retail investors might still get left in the dark.

And the capo de tutti capi is Goldman Sacks.


On Jun 29 07:21 PM nova wrote:

> The WallStreet is a mafia. This criminal cartel must be destroyed.

Ryan Lizza profiles FDIC head Sheila Bair - the unlikely hero to economic liberals who see her as the counterweight to the more Wall Street-centric Geithner - for The New Yorker. Noam Scheiber says the profile shows Bair's FDIC will be the odd regulator out. And John Carney says if not for Bair, Citigroup (C) would have gotten away with recapitalizing CDOs with tax dollars.

Blair up against Goldman Sacks? Think GS wins that one, hands down.