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  • QE Will Never End With The Continuing Soft Data [View article]
    This article speaks to the US dollar role as a global reserve currency, and to the Fed's deserve not to exacerbate foreign (non-US) economic weakness by tapering. This confirms to me, along with the Fed's extensive lending to foreign CBs since 2008, that their first priority is maintaining dollar hegemony, not full employment or price stability. See:
    Nov 3 08:25 PM | 1 Like Like |Link to Comment
  • QE Will Never End With The Continuing Soft Data [View article]
    Concur with Steve H. and Samuraitrader...

    Last Wed market commentator John Mauldin sent out a review of QE efficacy from Hoisington Investment Mgt. No Austrian-school ideology, no Tea Party anger, just the facts. It is worth this link:

    This begs the question: if QE has not worked why does the Fed keep doing it when all it does it enable a feckless US Congress dithering on true fiscal reform?

    My own observations are that the Fed's first priorities, contrary to their bait-and-switch rhetoric, are neither full employment nor price stability.
    Nov 2 03:32 PM | 1 Like Like |Link to Comment
  • AMR's (AAMRQ.PK) board is reportedly due to meet tomorrow and on Tuesday to discuss the latest developments in its merger negotiations with US Airways (LCC), which could be finalized within two weeks. The airlines still need to agree on the management structure, the makeup of the boards, and the final price. AMR thinks its plan to exit Chapter 11 as independent carrier is still viable, although it's less likely. [View news story]
    The current AMR CEO TOM Horton has proven all he knows how to do is paint airplanes a new colour (with typical Texan poor taste), give markets (SDQ, STI) away to JetBlue, and outsource flying to the cheapest vendor (Republic). Horton and his inner circle need to be fired, and replaced with a CEO who knows how to run a quality airline -- not just a GM with wings.
    Jan 27 03:27 PM | 1 Like Like |Link to Comment
  • Market At Risk Again As Finland, Netherlands Undermine EU Progress [View article]
    Suggest new article title:

    "Market at risk again as Finland, Netherlands sensibly demand PIIGS accountability and credible ESM enforcement mechanism"
    Jul 4 03:56 PM | 2 Likes Like |Link to Comment
  • Bearish economist Gary Shilling is ... bearish, flatly predicting another recession in 2012 as housing inventories continue to drag. Not surprisingly, his favorite picks are Treasurys - the longer term the better. "I think they're going to 3%," he says of the 30 year, currently yielding 4.2%.  [View news story]
    Shilling is late to the game. Gluskin Scheff economist David Rosenberg made the long Treasury call last Jan-Feb.
    Jun 24 01:48 PM | 2 Likes Like |Link to Comment
  • The Fed is risking a second Depression by putting pressure on banks to raise more capital, analyst Dick Bove writes in a scathing note that accuses the central bank of losing "all sense of reality." Banks must be allowed room to lend money and conduct business but are being handcuffed by onerous capital restrictions, Bove believes.  [View news story]
    Bove is a fool and a propagandist pimp who will say anything the too-big-to-fail banks tell (or pay) him to say. Like this statement in March 2008 just before Bear Stearns collapsed and six months before the entire banking sector collapsed:

    "This is a generational opportunity to buy (bank stocks) on the cheap."

    Why does SA quote this idiot without revealing his clear conflicts of interest?
    Jun 7 05:17 PM | 1 Like Like |Link to Comment
  • A bullish call on BofA (BAC) from Barron's, which thinks the stock could rise more than 40% in the next two years as the bank's credit portfolio improves and as CEO Brian Moynihan works to improve earnings. Potential investors may want to see what Monday brings before jumping in.  [View news story]
    Barron's is just pimping for a criminal enterprise...preemptively released to blunt Wikileaks, email dump on Monday.

    BAC should be prosecuted under RICO (along with GS, C, WFC, JPM, and former AIG and LEH senior officers)...

    SA should have a red "***Caveat Emptor***" warning attached to such Wall Street propaganda...
    Mar 13 09:36 PM | 3 Likes Like |Link to Comment
  • The U.S. is not “printing money” uncontrollably and flooding the world with dollars that will lead to hyperinflation, Cullen Roche writes. "Yes, the U.S. government is running a massive $1.5T deficit, however, by any metric of money supply we can see that this is barely offsetting the continued de-leveraging that is occurring across the U.S. economy."  [View news story]
    Interesting semantic argument by Mr. Roche. However, the Fed's "new" money does not remain solely in the US economy. It allows the banks -- and the hedge funds they lend to -- to speculate in a global economy. While this inflationary policy may simply keep an otherwise deflating US economy treading water, it has caused significant -- and politically volatile -- inflation in the rest of the world. Hence, Tunisia, Egypt, soon Libya...and hopefully Iran.
    Mar 8 05:21 PM | 5 Likes Like |Link to Comment
  • MGM Cashes In...Investors Take the Hit [View article]
    Do you believe LVS will do a secondary offering?
    Oct 24 07:23 AM | Likes Like |Link to Comment
  • According to a somewhat bizarre report on Informa Global this morning, the U.S. and China have reached an agreement on yuan appreciation in exchange for the U.S. holding off on QE2.  [View news story]
    Bernanke (Summers/Geitner) is playing high-stakes poker with the Chinese. QE2 is the hand he's holding, but the Chinese don't know how many aces he's holding (i.e. how big the QE2 will be). Other US trading partners are taking the pain of the dollar rise for long term gain of the QE2 bluff paying off. This was probably all worked out at the B-berg Group meeting in Spain months ago, where exchange rates were a primary topic of conversation. What's in it for Chinese? The commodities they buy priced in $$$ get cheaper, and protectionist legislation is forestalled in Congress.
    Oct 14 08:29 AM | 1 Like Like |Link to Comment
  • Economist David Rosenberg speculates that real Q4 GDP (.pdf) would have declined more than 7%, rather than rising the announced 5.7%, if stimulus benefits are stripped away. Some other analysts expect sharp downward revisions.  [View news story]
    Not down 7%....a 7% difference btwn US Govt Q4 GDP and Rosie's estimate without stimulus:


    "...And, as for the last two “positive quarters” — well, Q3 would have been -1.0% QoQ at an annual rate and -1.5% for Q4 (as opposed to the +5.7% annualized print)."
    Feb 3 12:44 PM | 1 Like Like |Link to Comment
  • Don't Ask Taibbi to Be Krugman [View article]
    Taibbi has done what the MSM will not: show just a bit of the deception beyond the so-called 'recovery' meant to mollify the unwashed masses who work outside Manhattan. Best para:

    "These are the kinds of voters whom Obama's gang of Wall Street advisers is counting on: idiots. People whose votes depend not on whether the party in power delivers them jobs or protects them from economic villains, but on what cultural markers the candidate flashes on TV. Finance reform has become to Obama what Iraq War coffins were to Bush: something to be tucked safely out of sight."
    Dec 12 04:32 PM | 10 Likes Like |Link to Comment