Not always true, there have been crucial government spending in the past that the private sector would not have engaged in...but the government spending laid the framework for the private sector to develop itself. Example....no private company would have set up the satellites that are now being used as GPS b/c it was NOT a money making venture back in the day. Same with the backbone of the internet which was developed by DARPA. There's a long list of innovations like these that we take for granted that were funded by government spending.
Are U.S. Equities Undervalued? New Evidence From A Federal Reserve Model [View article]
Only reason equity prices appear low next to bonds is because bonds are being artifically driven down by the Fed!!!! Aren't over 50% of US bond purchases now made by the Fed? If it wasn't, Treasury yields would be much higher and stocks would appear MUCH more expensive!
In her speech tonight at the Boston Economic Club, Fed Vice Chair Janet Yellen suggests the Fed may be close to taking more easing steps this month in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis. "There are a number of significant downside risks to the economic outlook," Yellen says, "Hence it may well be appropriate to insure against adverse shocks that could push the economy into territory where a self-reinforcing downward spiral of economic weakness would be difficult to arrest." [View news story]
"and over the years I have never heard anyone ever bring up taxes, healthcare or some new financial regulation when we were discussing new projects and future planning....Never....W... Buffett laughed when asked about this same thing....if you are making money you don't care...you can't pay tax unless you have a profit....unless you want to blame the govt for you personal failure"
This is VERY true, especially referring to the "top 1%" and big corporations and hence why the GOP has no response to Buffett when he says...."the ultra-wealthy will always pursue opportunities that make them money regardless of how high taxes are b/c the alternative is you make NO money and it gets eaten away sitting in a savings account. 70% of something is better than 100% of nothing."
However, small businesses definitely have to take taxes and regulation into account for the hiring process.
Facebook (FB +8.9%) uses its lockup expiration day to announce a long-rumored jobs app that allows recruiters to share listings. 1.7M listings are currently provided, and initial partners include Monster (MWW) and BranchOut. LinkedIn (LNKD -1.4%), which received 55% of its Q3 revenue from job listing services, has spiked lower on the news. The general preference among LinkedIn users to keep their personal and professional social media identities separate could insulate the company. (previous) [View news story]
How many people will apply for a job via Facebook using their Facebook profile? are you kidding me? Facebook is for your personal life, not professional.
"Hyper-optimism has returned to the stock market," writes Steve Sears, noting the sharp recent decline (26% in a week) in the VIX (VXX) has brought it just about to levels associated with bull markets. He finds it disturbing as the move is seemingly not tied to economic fundamentals, but the hopium of easier central bank policy. [View news story]
Yes, glad someone is finally making this astute observation.
The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks, says Goldman, seeing it as mandating another $1.1T in equity for the banking system. Banks would need 12 years of earnings to build this amount organically, though the bill would give just 5 - say goodbye to lending. Break up the banks? BAC, C, JPM, and WFC all have multiple divisions with more than $400M in assets - the level at which the bill gets tough on lenders. [View news story]
Las Vegas land prices are rising at a "downright scary" pace, according to a new report from Home Builders Research. Land purchased for about $180K/acre late last year is going for $250K-$275K now, with a few parcels in escrow for $350K. The economy remains too weak "to sustain this level of increases," says the report. Let the Fed worry about that. [View news story]
I hope this is sarcasm....why is it only Vegas if it's because of the Fed?
For someone who is such a Buffett/value investor aficionado, you are surprisingly a huge gold promoter lol
Goldman's Jan Hatzius backs away from his worry about a 2013 recession, saying congressional Republicans have given up on the idea of using the debt ceiling as a way to force spending cuts. No worries on the deficit, which shrunk to 7% of GDP last year on its way to 3% by 2015, says Hatzius. [View news story]
When Goldman publicly says no risk of recession, that means we will get one this year.
Are we seeing a repeat of Yelp's lockup expiration? Facebook (FB +9.7%) has shot higher even though 773M shares and 31M restricted stock units are eligible for sale for the first time. Short-covering is undoubtedly a factor, but Pivotal Research claims many institutions were waiting for the expiration to arrive to jump in. One potential risk: unlike Yelp, Facebook's expiration isn't centered around just a handful of insiders owning large stakes, but is spread out over many employees and investors. [View news story]
Good, then those institutions can have fun holding the bag while insiders sell out.
New York's AG has filed a civil complaint against JPMorgan Chase (JPM), alleging widespread fraud in the sale of mortgage-backed securities in the run-up to the financial crisis. The suit relates to billions of dollars of subprime securities issued by Bear Stearns' before its takeover by JPM, and is the first brought under the authority of a law enforcement group formed by President Obama in January to pursue alleged wrongdoing during the financial crisis. More cases are expected to follow. Shares -0.8% AH. [View news story]
Same way BAC has been sued to hell and back for Countrywide's mess....
Spanish austerity measures coming Thursday will include restrictions on early retirement, PM Mariano Rajoy tells the WSJ, and a new tax authority - including taxes on stock transactions? - as well as job-training programs. They'll still resist a bailout, but if debt interest rates were "too high for too long" the chances of a bailout rise to "100%." [View news story]
Funny....Fox mentioned in summer of 2008 that the president has no control over gas prices. Apparently, they have changed their position on that fact when a Democratic president is in power. Hmm...
FOMC Announcement: QE3 is on to the tune of an open-ended pledge to buy $40B in MBS per month. The pledge to keep rates extraordinarily low is extended until mid-2015. [View news story]
I hope all of you realize that if the Fed let rates rise right now, the US couldn't afford the interest payments on our debt alone. We'd have to default almost instantaneously.
3 Under-Appreciated GDP Facts [View article]
Are U.S. Equities Undervalued? New Evidence From A Federal Reserve Model [View article]
In her speech tonight at the Boston Economic Club, Fed Vice Chair Janet Yellen suggests the Fed may be close to taking more easing steps this month in response to ongoing housing problems, a weak jobs market and the escalating euro zone crisis. "There are a number of significant downside risks to the economic outlook," Yellen says, "Hence it may well be appropriate to insure against adverse shocks that could push the economy into territory where a self-reinforcing downward spiral of economic weakness would be difficult to arrest." [View news story]
3 Under-Appreciated GDP Facts [View article]
This is VERY true, especially referring to the "top 1%" and big corporations and hence why the GOP has no response to Buffett when he says...."the ultra-wealthy will always pursue opportunities that make them money regardless of how high taxes are b/c the alternative is you make NO money and it gets eaten away sitting in a savings account. 70% of something is better than 100% of nothing."
However, small businesses definitely have to take taxes and regulation into account for the hiring process.
Here's What Happened The Last Time The Fed Owned All Outstanding Treasuries [View article]
Facebook (FB +8.9%) uses its lockup expiration day to announce a long-rumored jobs app that allows recruiters to share listings. 1.7M listings are currently provided, and initial partners include Monster (MWW) and BranchOut. LinkedIn (LNKD -1.4%), which received 55% of its Q3 revenue from job listing services, has spiked lower on the news. The general preference among LinkedIn users to keep their personal and professional social media identities separate could insulate the company. (previous) [View news story]
"Hyper-optimism has returned to the stock market," writes Steve Sears, noting the sharp recent decline (26% in a week) in the VIX (VXX) has brought it just about to levels associated with bull markets. He finds it disturbing as the move is seemingly not tied to economic fundamentals, but the hopium of easier central bank policy. [View news story]
The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks, says Goldman, seeing it as mandating another $1.1T in equity for the banking system. Banks would need 12 years of earnings to build this amount organically, though the bill would give just 5 - say goodbye to lending. Break up the banks? BAC, C, JPM, and WFC all have multiple divisions with more than $400M in assets - the level at which the bill gets tough on lenders. [View news story]
http://bit.ly/XCyOXH
I must've missed the memo where he was a Democrat
Las Vegas land prices are rising at a "downright scary" pace, according to a new report from Home Builders Research. Land purchased for about $180K/acre late last year is going for $250K-$275K now, with a few parcels in escrow for $350K. The economy remains too weak "to sustain this level of increases," says the report. Let the Fed worry about that. [View news story]
For someone who is such a Buffett/value investor aficionado, you are surprisingly a huge gold promoter lol
Goldman's Jan Hatzius backs away from his worry about a 2013 recession, saying congressional Republicans have given up on the idea of using the debt ceiling as a way to force spending cuts. No worries on the deficit, which shrunk to 7% of GDP last year on its way to 3% by 2015, says Hatzius. [View news story]
Here's What Happened The Last Time The Fed Owned All Outstanding Treasuries [View article]
Are we seeing a repeat of Yelp's lockup expiration? Facebook (FB +9.7%) has shot higher even though 773M shares and 31M restricted stock units are eligible for sale for the first time. Short-covering is undoubtedly a factor, but Pivotal Research claims many institutions were waiting for the expiration to arrive to jump in. One potential risk: unlike Yelp, Facebook's expiration isn't centered around just a handful of insiders owning large stakes, but is spread out over many employees and investors. [View news story]
New York's AG has filed a civil complaint against JPMorgan Chase (JPM), alleging widespread fraud in the sale of mortgage-backed securities in the run-up to the financial crisis. The suit relates to billions of dollars of subprime securities issued by Bear Stearns' before its takeover by JPM, and is the first brought under the authority of a law enforcement group formed by President Obama in January to pursue alleged wrongdoing during the financial crisis. More cases are expected to follow. Shares -0.8% AH. [View news story]
Spanish austerity measures coming Thursday will include restrictions on early retirement, PM Mariano Rajoy tells the WSJ, and a new tax authority - including taxes on stock transactions? - as well as job-training programs. They'll still resist a bailout, but if debt interest rates were "too high for too long" the chances of a bailout rise to "100%." [View news story]
FOMC Announcement: QE3 is on to the tune of an open-ended pledge to buy $40B in MBS per month. The pledge to keep rates extraordinarily low is extended until mid-2015. [View news story]