Dallas Fed Manufacturing Index:-15.6 vs. +5.0 expected, +7.4 previous. Production fell to -0.5 from +9.9. New Orders -4.9 from +9 - the first negative reading this year. Prices +2.5 vs. +19.1. Expectations -6.7 vs. +15.3. [View news story]
This report is meaningless, the economy is doing well.
Paul Krugman: "The austerity agenda looks a lot like a simple expression of upper-class preferences, wrapped in a facade of academic rigor. What the top 1% wants becomes what economic science says we must do." Ken Langone responds: Runaway deficits are the older generation "stealing" from the young, and Paul Krugman has never met a payroll and doesn't have to worry about profit margins. [View news story]
As long as productivity and innovation occurs living standards would rise. All else is just noise.
Government intrusion can slow down innovation. The leaner the government the better. More government spending is a sign that excess production is faltering and productivity is waning.
"There are less ways to cheat on a balance sheet than an income statement," says Bruce Berkowitz, explaining why he focuses on the one rather than the other (and why he'll probably never be a buyer of auto stocks). In this great 35-minute chat from late last year, he again makes his case for AIG and BAC - "it's the 90s all over again" - and SHLD - selling for the liquidation value of its merchandise; the brands and the real estate are free. [View news story]
Financial Services companies can use their balance sheet to hide liabilities, there are also off balance sheet vehicles to do so.
One can't just rely on a single financial statement to get a conclusion. One has to look at all, BS, IS, CF, SE.....etc.
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
I really don't know if silver prices are going to go down more or not. What I know is that I would keep my silver holdings untouched for the moment. I still hold silver bought from 2000.
By the way, I also hold equities and bonds. Having gold and silver doesn't make a person anti-equity... a stereotype brought by fanatics.
Precious Metal Miners Are For Trading: Add Some On Dips [View article]
I hold gold equites from 2003 which are still up a lot. I traded in-out in 2008-2009 to make some decent gains. Overall I prefer to hold the gold itself.
By having a mix of gold, bonds and equites I have done very well.
Spanish unemployment rose to a fresh record of 27.2% in Q1 from 26% in the previous quarter and topped consensus of 26.5%, with 6.2M people out of work. Youth unemployment increased to 57.2%. The figures "highlight the serious situation of the Spanish economy as well as the shocking decoupling between the real and the financial economy," says Citi strategist Jose Luis Martinez. Ibex -1.1%. (PR) [View news story]
Population growth in Spain is now negative for the first time since a long, long time ago.
Let's look at Spain's problems: 1) They have high labor costs and high regulatory burden which prevents outsize gains in exports. 2) Internal Demand is going down as taxes are punitive. 3) Credit is nonexistent for those employed. 4) Productivity is below those of German, Belgian workers. 5) Fixed exchange vis a vis with manufacturing powerhouse Germany which prevents any long term gain in economic gains overall.
Be Careful Shorting A Market With Corporate ROIs Near All-Time Highs [View article]
Companies are getting leaner, technology is reducing labor costs overall and credit is cheap...excellent environment for equities. I still don't like the slack labor market which presents a long term problem. We may never see unemployment below 5%.
Some Apple (AAPL) commentary: 1) Horace Dediu estimates the iPhone and iPad's component costs respectively rose 29% and 65% Y/Y in FQ2, well above rev. growth of 3% and 40%. This, along with a mix shift towards iPads, is mostly responsible for Apple's gross margin drop (rather than price pressure). 2) Tero Kuittinen sees similarities between 2013 Apple and 2007 Nokia. "The strongest parallel is in the weird way both companies started fighting the consumer preference for larger displays … and then dug in as margins began eroding rapidly." Tim Cook may have just hinted a bigger iPhone will eventually arrive. But how long will it take? (yesterday) [View news story]
AAPL growth is slowing down, putting an end to the ridiculous growth estimates created by the sell side analysts. Market competitors are getting aggressive on pricing, doesn't bodes well for next year margins.
The economy, says Harvard's Clayton Christensen, suffers from too much "efficiency" innovation, which tends to lead to job losses, and not enough "empowering" innovation, which creates jobs. Because "efficiency" innovation provides a quicker return, one remedy is to change the tax code to encourage long-term innovation. [View news story]
The economy biggest problem is the constant pressure put on businesses by people that are incompetent.
Politicians.....
Please let the private market alone. Stop meddling with it to buy votes. Companies are flush with cash, and there is record amounts in "safe assets"...capital that could have already jump started the economy!
It is repulsive to see how they use the emotions of poor people to incite class warfare. Playing us like we are the pawns in their chess game.
"Asian-Americans are the highest-income, best-educated and fastest-growing racial group in the United States," the Pew Research Center wrote in recent massive study. The WSJ discusses the rise of Asian-Americans in a weekend essay, saying that they "have become the immigrant group that most embodies the American promise of success driven by will and resolve." [View news story]
The left can't handle that the US economy after taking more than $5T in debt is going nowhere. Food stamps claims keep increasing.....
The NYT tells the fascinating story of how frenetic bankers like Ralph Eads III raised way too much money to finance the shale gas production dreams of those like his frat brother Aubrey McClendon (CHK). "Quit drilling," pleaded T. Boone Pickens to his fellow EXCO (XCO) board members as gas prices plunged. It made sense, but there was a problem: The terms of the EXCO's financing and leasing agreements required the company to continue. [View news story]
The "dirty" industry has the best paying jobs for those who come from poor and middle class families. The "dirty" industry pays more in taxes at the state and federal level than the "green energy" industry.
Exxon Mobil pays more in taxes than GE. Exxon Mobil is used as a scapegoat for the failure of this administration in securing energy independence and restraining prices of its equivalents.
People like you want to enforce a utopian world into us. It isn't right. Millions of poor Americans are struggling already with record gas prices. It is horrible what you people are doing. Enough is enough!
Apr. Retail Sales: +0.1% vs. -0.3% expected, -0.05% prior (revised). Ex-auto -0.1% in-line with expectations. [View news story]
Feb. S&P Case-Shiller Home Price Index: +1.2% M/M vs. +1.0% expected, +1.0% prior. [View news story]
A lot of seeking alpha doomers have gone poof! Nothing like eating crow isn't it doomers?
Dallas Fed Manufacturing Index: -15.6 vs. +5.0 expected, +7.4 previous. Production fell to -0.5 from +9.9. New Orders -4.9 from +9 - the first negative reading this year. Prices +2.5 vs. +19.1. Expectations -6.7 vs. +15.3. [View news story]
Paul Krugman: "The austerity agenda looks a lot like a simple expression of upper-class preferences, wrapped in a facade of academic rigor. What the top 1% wants becomes what economic science says we must do." Ken Langone responds: Runaway deficits are the older generation "stealing" from the young, and Paul Krugman has never met a payroll and doesn't have to worry about profit margins. [View news story]
Government intrusion can slow down innovation. The leaner the government the better. More government spending is a sign that excess production is faltering and productivity is waning.
"There are less ways to cheat on a balance sheet than an income statement," says Bruce Berkowitz, explaining why he focuses on the one rather than the other (and why he'll probably never be a buyer of auto stocks). In this great 35-minute chat from late last year, he again makes his case for AIG and BAC - "it's the 90s all over again" - and SHLD - selling for the liquidation value of its merchandise; the brands and the real estate are free. [View news story]
One can't just rely on a single financial statement to get a conclusion. One has to look at all, BS, IS, CF, SE.....etc.
Silver: Do Not Be Fooled - Lower Prices Ahead [View article]
By the way, I also hold equities and bonds. Having gold and silver doesn't make a person anti-equity... a stereotype brought by fanatics.
Precious Metal Miners Are For Trading: Add Some On Dips [View article]
By having a mix of gold, bonds and equites I have done very well.
Spanish unemployment rose to a fresh record of 27.2% in Q1 from 26% in the previous quarter and topped consensus of 26.5%, with 6.2M people out of work. Youth unemployment increased to 57.2%. The figures "highlight the serious situation of the Spanish economy as well as the shocking decoupling between the real and the financial economy," says Citi strategist Jose Luis Martinez. Ibex -1.1%. (PR) [View news story]
Let's look at Spain's problems:
1) They have high labor costs and high regulatory burden which prevents outsize gains in exports.
2) Internal Demand is going down as taxes are punitive.
3) Credit is nonexistent for those employed.
4) Productivity is below those of German, Belgian workers.
5) Fixed exchange vis a vis with manufacturing powerhouse Germany which prevents any long term gain in economic gains overall.
Be Careful Shorting A Market With Corporate ROIs Near All-Time Highs [View article]
Some Apple (AAPL) commentary: 1) Horace Dediu estimates the iPhone and iPad's component costs respectively rose 29% and 65% Y/Y in FQ2, well above rev. growth of 3% and 40%. This, along with a mix shift towards iPads, is mostly responsible for Apple's gross margin drop (rather than price pressure). 2) Tero Kuittinen sees similarities between 2013 Apple and 2007 Nokia. "The strongest parallel is in the weird way both companies started fighting the consumer preference for larger displays … and then dug in as margins began eroding rapidly." Tim Cook may have just hinted a bigger iPhone will eventually arrive. But how long will it take? (yesterday) [View news story]
The economy, says Harvard's Clayton Christensen, suffers from too much "efficiency" innovation, which tends to lead to job losses, and not enough "empowering" innovation, which creates jobs. Because "efficiency" innovation provides a quicker return, one remedy is to change the tax code to encourage long-term innovation. [View news story]
Politicians.....
Please let the private market alone. Stop meddling with it to buy votes. Companies are flush with cash, and there is record amounts in "safe assets"...capital that could have already jump started the economy!
It is repulsive to see how they use the emotions of poor people to incite class warfare. Playing us like we are the pawns in their chess game.
"Asian-Americans are the highest-income, best-educated and fastest-growing racial group in the United States," the Pew Research Center wrote in recent massive study. The WSJ discusses the rise of Asian-Americans in a weekend essay, saying that they "have become the immigrant group that most embodies the American promise of success driven by will and resolve." [View news story]
The NYT tells the fascinating story of how frenetic bankers like Ralph Eads III raised way too much money to finance the shale gas production dreams of those like his frat brother Aubrey McClendon (CHK). "Quit drilling," pleaded T. Boone Pickens to his fellow EXCO (XCO) board members as gas prices plunged. It made sense, but there was a problem: The terms of the EXCO's financing and leasing agreements required the company to continue. [View news story]
Exxon Mobil pays more in taxes than GE. Exxon Mobil is used as a scapegoat for the failure of this administration in securing energy independence and restraining prices of its equivalents.
People like you want to enforce a utopian world into us. It isn't right. Millions of poor Americans are struggling already with record gas prices. It is horrible what you people are doing. Enough is enough!
Follow Einhorn In The Chipotle Short? [View article]
Housing Starts, New Permits Rise Sharply In September: The Economy Isn't Deteriorating [View article]