Quiet Before The Storm?

Sorry for not posting last night or this morning, servers were down and internet access was a no go.

The Greece hot potato is being tossed around still, the ISM numbers were fictionally good, employment was fictionally good and the market closed flat.

Mish's thoughts on the ISM report and some factors surrounding it that you will not read elsewhere are in ISM Service Sector Expands, Backlog of Orders and Employment Still Contracting; Public Sector Catchup Coming. The thing I like most about what Mish is bringing to the table these days is his focus on the state and city level budget shortfalls. These will hit home more than the "national" bullshit you read about on a daily basis. In this post is a link to a recent speech given by the new NJ Governor Christie. Please take a moment to watch this. This guy is ready to kick some butt and take names to get his states budget shortfalls worked out and he does not care who gets pissed. It is the best thing I have heard in a long time. Denninger takes on the ISM BS in We're Schizoid! (Non-Manufacturing ISM). Both are not that impressed and poke unique holes in the report.

You market timers may find this one interesting (I finally went short today BTW) Has Goldman Called The Market Top: GS Sells $3.1 Million Leveraged Index-Linked Notes Referenced To 1123.7 On The S&P. Zero Hedge as usual is above the line on their reporting and timing of reports. This one is quite interesting. Maybe we can take advantage of a tip from the gods on high (and hope like hell it is not a sucker play).

Since everyone else has posted it, I'll complete the circle - No Wonder the Economy Isn't Improving from Washington's Blog is a wonderful post on the idiocy demonstrated by our leaders and an expose of the bullshit that flows endlessly from Washington (sounds like something I would like!).

TPC has this from Rosy - ROSENBERG: THE MARKET LOOKS TOPPY. “In a secular bull market, a six-month trading range can be viewed as a pause that refreshes. But in a secular bear market, it more than likely reflects a classic topping formation, as was the case in the spring and summer of 2007 when the S&P 500 also flirted with the 1,500 mark for as long a period as it has hovered around the 1,100 threshold since last fall. Keep in mind that similar to 2007, we are starting to see some fraying around the edges in the latest set of economic data releases — jobless claims, housing starts and sales, core goods orders and shipments, construction, ISM and consumer confidence.” Put that with the GS report above and some of my fine analysis and I'd say you better be getting those horses saddled up.

In what I thought was the best new of the day, ZH has Philly Fed's Plosser Speaks: Too Big To Fail Must End, "I believe these three actions would go a long way toward improving financial stability. Enacting a credible bankruptcy process to solve the too-big-to-fail problem, clarifying the Fed's umbrella supervision and financial stability roles, and enhancing market discipline are steps we must take to lower the probability of a future crisis. We could simplify the entire financial regulatory legislative initiative by focusing on these three key elements. We do not need huge new bureaucracies, or a complete restructuring of our regulatory agencies." Damn, two tough and sensible speeches in the same week, what, did Washington run out of cool-aide? 

Last, but not least, I bring you a radio interview from Bob Chapman that I thought was interesting. I like the way this guy thinks (extreme like me). This may be a bit conspiracy laced for some of you, but maybe it is time to buy into some of those theories. "They are preparing for a large world wide meeting of the kind of the Smithsonian meeting in the seventies and they will decide from there which currency to devalue against which ...The whole Toyota issue is the American government behind the scenes telling the Japanese either you buy my treasuries or I destroy your best exporting part of the industry.... The UK may break up from the European Union, Warren Buffett should be in jail not in CNBC says Bob Chapman , 10 years ago everybody knew that Greece and Italy were in bad shape but everybody looked at the other side ..."

For the latest on the Greece saga, you can always turn to this link at the FT.com.

Have a  good evening.

Whutz In The Newz?

Jobs report leaked by White house? LOL, now that's funny, but I don't put anything past this administration. Maybe they wanted to test the waters to see what kind of withdrawal they had to make for the PPT in the am. Did the White House leak Friday's employment report? Obama has before. 


Mish has a doozy in Service Sector ISM Back In Contraction; Stimulus Fades Already - "Not only are there no pavement fairies, there are no fairies of any kind. The idea that Keynesian work projects can stimulate the economy back to a lasting recovery is loony. Japan proved that for two decades, but Keynesian clowns still insist it's just a matter of throwing more money around until something good happens. Nothing good happened in Japan from Quantitative Easing or Keynesian stimulus efforts and nothing good will happen in the US from them either. The problem is debt and the cure is paying off that debt, not going deeper into it. In the meantime prepare for the double-dip or an economic flatline at best because that is how the signs are pointing." I'm gonna keep on hammering home this point. We are in deep shit and no one seems to really notice (or at least want to admit it). Maybe the reincarnation of a Comcastic CNBS will help the masses get back up to speed?

Both Zero Hede and Denninger have this one covered, so since we all read ZH, I thought I'd give Karl the nod on the post here. Here It Comes... (Sovereign Treasury Sales) "If Japan starts selling in size rates on the long end will go materially higher.  This will whack the daylights out of the cash price for these bonds.  Who else has a lot of these things?  China. Stampede risk here?  Yep. Danger to our government's ability to finance its profligate spending? Uh huh." This is a big deal especially with the Fed testing the repo waters. Can you say double whammy? do you blame Japan? I'm surprised that we have not seen more of this already (that we are at least aware of). Taking liquidity (the life blood) out of the markets and treasury sales at the same time would be like removing the feeding tube. Not good.

Leave it to TD and team at the almighty Zero Hedge to expose the meaningful. The Untold Story - Emergency Unemployment Compensation Claims Surge By 265k In One Week  - "In light of this massive divergence in jobless trends, an eager Kool Aid drinking world is expecting Goldman's Jan Hatzius to provide a forecast (with at least 10 significant digit precision) ahead of tomorrow's NFP number. Jan, don't let the Goldman prop trading desk down!!!"

The Pragmatic Capitalist has AN INTERVIEW WITH A COMMERCIAL REAL ESTATE INSIDER  - "We owe foreigners $50 trillion. The government wants to sink the dollar so that we’ll owe $25 trillion.. Longer term, it’s better to have a strong currency. But as a debtor nation, we want the dollar weak. In any event we’ll eventually be owned by foreigners. But what does Obama care if he sells out the country? The leaders are international, and they take care of themselves. Once you’re in this vicious cycle, you’re in it. The nature of the information is a problem once you’re so weak." That sums it up nicely. Can you say End Game? This was a good read coutesy of Phil's Stock World.

I am not ignoring the Bernanke hearings today. I believe that would be overkill reporting it here. What was not overkill was his hearing. IMO he got off real easy today. I believe that if some of the Senators would show some real emotion the public would love it and that would do us all some good. 

Don't forget to keep an eye on the National Debt Clock.

Tomorrow morning should be interesting. If 1080 in the minis gives way get your hard hats out. I'll do a Look Into The Futures post later tonight if anything is cooking.

Have a great holiday season.