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blunderbuss

blunderbuss
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  • More stimulus on the way as dove joins BOJ board? [View news story]
    "WHY ARE STOCKS STILL SOARING…?"

    ANSWER: In the US - stock buybacks at 0% interest, which reduces supply and creates a short squeeze.
    Feb 6, 2015. 02:22 AM | Likes Like |Link to Comment
  • U.S. car sales dazzle in January as $2 gas factors in [View news story]
    I see subprime auto loans are not even mentioned in this "news" alert. The CEOs think we're going to tie ourselves down to a five-year auto loan because of one season of cheap gas? Don't make me laugh.
    Feb 3, 2015. 08:03 PM | 7 Likes Like |Link to Comment
  • How Tesla's Deceptive Self-Defined Gross Margin REALLY Compares To Porsche's [View article]
    >>Wasn't Norton the best motorcycle ever made? They never needed maintenance and lasted forever... and they went under. Sad but true.
    Jan 9, 2015. 08:04 AM | 2 Likes Like |Link to Comment
  • Does McDonald's Need An Activist? [View article]
    I guess you've forgiven them for their "tainted meat scandal" in 2014.

    From CNN:
    http://cnn.it/1F9jyJd

    From the Daily Mail:
    http://dailym.ai/1F9jARj

    "Just fine," considering they should've thrown it out months earlier...
    Jan 5, 2015. 06:14 AM | Likes Like |Link to Comment
  • The Tesla Gigathreat [View article]
    (Apologies for the late reply.)

    DISCLOSURE: I am in J. Petersen's camp.

    <<Are you suggesting Elon/Tesla has no strategy or is a poor leader who does not have vision?>>

    I am stating that the project is going to fizzle out, that Tesla's acolytes are making vastly exaggerated claims for its sales potential, and its Free Cash Flow, the last time I could be bothered to check, was ROUGHLY $177 million IN THE RED. Yet they continue to make promises about supercharger networks and sales to Norway that turn out to be a pig in a poke. If they make a cheaper version of their Model S that has a longer range with a cheaper cost, then the resale value of used Model S's will be crippled. Plus, now I'm reading about defective drive trains that need to be replaced at a modest cost of $15,000...

    Even if this is a car for the 1%, the 1% didn't become the 1% by being stupid with their money.

    We know that the share value has been sustained by stock buybacks and QE purchases; if QE is well and truly over, then the bubble will burst.
    Dec 30, 2014. 07:55 AM | Likes Like |Link to Comment
  • The Tesla Gigathreat [View article]
    <<Elon isn't afraid to use his own money>>

    He seems to be going to the public and increasing the company debt at regular intervals. That has been written about in the media.

    <<Elon... still has a huge amount of passion and does what he does for the challenge of doing it.>>

    Enthusiasm is no substitute for a feasible strategy. Plenty of soldiers in WW1 had a great deal of enthusiasm at the start of the war, and they were slaughtered. Their leaders were aimless.
    Dec 22, 2014. 07:06 AM | 1 Like Like |Link to Comment
  • Student Debt Poised To Crimp U.S. Economy [View article]
    >> I see what you did there.
    Dec 21, 2014. 08:37 AM | Likes Like |Link to Comment
  • The Most Dangerous Market Since 2008 [View article]
    <<American now produces more oil than any other country.... That results in more demand for dollars. But you knew that already ...>>

    What I also know already is that several countries have been attacking the petrodollar recycling arrangement created by Henry Kissinger. Iran, for example, has been demanding that Japan pay for oil exports in yen, not USD, since 2007. And in future, we will see further arrangements made that will threaten the hegemony of the USD.

    See what you think of this article (it's a long one) --
    http://bit.ly/ULTuIL
    Oct 23, 2014. 01:51 PM | Likes Like |Link to Comment
  • The Most Dangerous Market Since 2008 [View article]
    << The Euro, Yen, and please do not say China. There is not viable alternative.>>

    Russia's and China's currencies are backed by gold, as they are acquiring a lot of it. America's money is not even backed by oil anymore, as countries around the world are de-dollarizing.
    Oct 20, 2014. 03:48 AM | Likes Like |Link to Comment
  • The Most Dangerous Market Since 2008 [View article]
    I don't think it's quite that simple.

    I hope we're all taking this into consideration --

    "the companies of the S&P500 itself... cumulatively repurchased a whopping $160 billion of their own stock in the first quarter [of 2014]!"

    http://tinyurl.com/qgh...

    That's correct. Even if the POMOs of free money are called to a halt, banks are still taking advantage of ZIRP to get deep into debt, buy bank tons of stock (causing occasional short squeezes, which further thrust share value upwards) and use that increase in equity to absorb other firms.

    This is madness. Eventually people will conclude that the dollar is worthless and readjust their holdings of international reserves, and then the currency markets will give the dollar a shock.
    Oct 19, 2014. 11:41 AM | Likes Like |Link to Comment
  • 4 Reasons The Jobs Report Stinks [View article]
    >>
    1) a job is a job - it doesn't matter if the person is 34 or 54. Just like a dollar is a dollar.
    >>

    You cannot be serious.

    David Stockman just wrote a column about the appalling shortage of "breadwinner" jobs here on SA -- http://tinyurl.com/lzz...

    An excerpt --

    "...Over the course of 170 “jobs Fridays” since mid-2000, the latter have apparently never noticed the single most stunning fact embedded in the monthly BLS report. Namely, that outside of health and education there has not been one net new job created in the American economy since July 2000! Yes, not a single new job—as in none, nein, nichts, nada, zip!..."

    You'd do us all a favor by going back to "MST3K".
    Oct 5, 2014. 12:01 PM | 1 Like Like |Link to Comment
  • 4 Reasons The Jobs Report Stinks [View article]
    Your trolling is beyond subpar.

    From the article --
    "...In September, 25-to-54 year olds saw a decline of 10,000 jobs on a seasonally-adjusted basis. Within what age group were the gains concentrated? Interestingly enough, the 55-and-over demographic saw an impressive 230,000 net gain in jobs. Overall, the decline in the 25-to-54 year old category makes the headline number much less impressive...."

    Seniors are clinging to the workforce and re-entering because they cannot afford to retire. If you look around you, you'll see this is true and has been for years.
    Oct 5, 2014. 11:49 AM | 2 Likes Like |Link to Comment
  • Tesla: Is Short Interest The Best Contrarian Indicator Of All Time? [View article]
    As long as QE is a factor, and the fundamentals don't seem to matter, then this extremely dubious company, and many other bubble stocks like it, are going to rise on the strength of stock buybacks and short squeezes resulting from stock buybacks.

    Zero Hedge has touched on this a few times:

    "Most Shorted" Stocks Out-Perform "The Market" Five-Fold Today
    http://tinyurl.com/kcn...

    Presenting The Best Trading Strategy Over The Past Year: Why Buying The Most Hated Names Continues To Generate "Alpha"
    http://tinyurl.com/n4u...

    The Squeeze Continues... "Most Shorted" Stocks Are Screaming Higher
    http://tinyurl.com/muv...

    I could go on, but to assume that TSLA is rising solely because Iron Man fans think Elon is cool is to ignore some "new fundamentals" in the Bernanke-Yellen helicopter drop.
    Sep 11, 2014. 09:59 AM | Likes Like |Link to Comment
  • It's Nightmarish Contemplating A 9/11 Anniversary With ISIS [View article]
    Is anyone expecting some sort of attack, a la Benghazi, by terrorists to remind us of 9/11 all over again?
    Sep 11, 2014. 09:22 AM | Likes Like |Link to Comment
  • Workday - The Absolute Definition Of A Bubble [View article]
    Here's another reason why the share prices of these bubbles might continue going up -- Charles Hugh-Smith asks whether CEOs are borrowing money (ZIRP financing, remember) to facilitate share buybacks --
    >>>>
    Where is the data proving Corporate America isn't borrowing billions of dollars and using the nearly-free money to buy back shares? Buying back shares reduces the float (stocks available for purchase by the public), reducing supply and creating demand which pushes prices higher....

    When executives and others at the top of the corporate pyramid have such an enormous incentive (stock options worth tens of millions of dollars) if they can push the stock price higher with buy-backs paid with borrowed money and accounting gimmicks that inflate headline earnings, then why wouldn't they do precisely that?...

    As for dodgy accounting: when the dodgy accounting has been institutionalized, it's no longer viewed as dodgy. Which brings us to the money shot of the comment: “Executive compensation based on stock performance” is killing corporate America....
    >>>>

    SOURCE --
    "Of Two Minds" 01 September 2014 http://tinyurl.com/kvv...
    Sep 3, 2014. 10:10 AM | Likes Like |Link to Comment
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