Wednesday, January 27, 2010

Newsworthy Items From Today

I suppose the S&P climbed a little more than 5 points on the good news that the one month treasury yield turned negative, or was it that the new home sales declined sharply in December, or was it that the FOMC is not gonna raise rates cause things are not as rosy as expected, or was it cause Geitner an Paulson testified that neither knew shit about the AIG deal, or was it the release of the AIG schedule A, or the suspension of MM withdrawals, or O's speech tonight? I don't know what it was. I do know that the good news is that the markets will rally on any news is BACK! Wooo Hoooo! What a great day!


New Home Sales Decline Sharply in December was the first thing out of the shoot this morning. "The Census Bureau reports New Home Sales in December were at a seasonally adjusted annual rate (SAAR) of 342 thousand. This is a sharp decrease from the revised rate of 370 thousand in November (revised from 355 thousand)." Everyone knows that demand had been pulled forward thru "stimulus" packages designed to kick start the home buying spree that will bring us out of this melee. Wrong! Guess again Mr. Smarty Pants. You can force a horse to water, but if he does not have a job he can't pay for a friggin house (especially one he can't get a loan to pay with!) Add to this post DataQuick on California: Record Notices of Default filed in 2009.

"NO, you can not have YOUR money, sorry." Yup, that is what they are going to say in the next crash when you show up at the teller and want to make a withdrawal. No, I'm not kidding. Suspending Money Market Redemptions Is Now Legal; SEC Approves New Money Market Regulation In 4-1 Vote Welcome to Pottersville! I guess it is not such A Wonderful Life. so instead of giving you 97 cents on the dollar in a run on the banks, save your gas money. IMO, we all should have seen this one coming. IMO, this is a HUGE tell that they know some sort of systemic event is coming. What other reason would they have to in act this? Uh...just in case? This is really fucked up.

As only Denninger provides FOMC Statement 1/27 In English The important part is things are not getting better and they will leave rates right where they are for some time (the banks have not made enough money yet). 

Oregon's Death Spiral; Business Owners Say "I'm moving out" This is just stupid, but may be a sign of things to come. Overtaxing the rich and hitting their bonuses hard. Face it. I believe it is coming for all of us. Do you care to explain how we will pay off the deficit (that we know of)? Wake up if you think there is any other way to get money for programs other than it coming out of our pockets. They may be biting the bullet early ahead of the curve. Yes, I agree that cutting waste is priority number one before raising taxes, but that will cost jobs immediately - whether directly or indirectly. Jobs cost revenues. Thus the rock and hard place issue arises. Soon you will see state privatization. We'll be paring off against each other. Just wait - you heard it here first. 

Do you trust anything you hear out of China? I don't. Here is an enlightening look into what may be the truth on their economy and what's been going on over there. On China’s Overinvestment, LOL and you thought we had a bubble. Our building are sitting empty because our businesses have gone out of business. Their are empty because they built them, just to build them. Look out when they implode. They will be coming after their treasury holdings and that will then be the end of us.

Are there signs of things getting toppy in the market (other than the obvious)? Sure, try Margin Debt Increases By 30% In 2009, Currently At $231 Billion  "The NYSE's most recent disclosure of margin debt indicates a surge in trading in margin accounts, where total debt shot up to $231 billion as of December, up $58 billion from February or 30%, and also an increase of 4.5% from November. This is an indication that "animal spirits" have surged by about the same amount as the broader market since the market lows: in other words, speculation is now rampant, and, to make things even better, is very much on margin, or leveraged. And we all know what happens when levered speculative bets turn out not quite as expected. For those who may be confused, Dow Jones provides a useful primer of how a margin call feedback loop tend to make things ugly, fast.

I will not listen to O tonight. Honestly, I can't stand to see his face or hear his voice. You know how you feel about someone that has lied to you constantly? Yeah, that feeling. LOL, and he is president? What a sad state of affairs we are in. I'll catch the highlights/low lights in the am on the news.

GL out there. I'm sure the PPT will be out in force in the am to celebrate our fearless leader's SOTU speech and the glorious recovery we are experiencing. God Bless America!

Freedom Watch Judge Napolitano with Gerald Celente - A freak show, socialism, fraud and war - OH MY!