Archive for the ‘Wall Street’ Category

“Defining Occupy Wall Street”

The right-wing attempts to define the Occupy Wall Street movement!

Maybe the Occupy movement — rapidly spreading to a city near you — defies explanation. But the one thing that can be said, unequivocally, is that it grows daily fueled by the growing frustration at the decline of this great nation and the number of egregious issues that must be addressed.

It is an unrest and dissatisfaction of a Congress that is not listening to the many while supporting the few; a Congress that has been deaf to the voice of justice and fairness.

They are the cadre of hard-working Americans disenfranchised by the system and declaring the causes, individually and collectively, which impel them to express their grievances. And, like the Opressions listed by our 56 signators of the Declaration of Independence, those grievances and usurpations are listed below for all to see and understand, conceding that these will not be the sum of their grievances.

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Posted in Economy, Occupy, Politics, Wall Street | 2 Comments »

“Stimulating a Dead Economy”

My newest article is now available on The Huffington Post. Click on the HuffPo linke to read it there.

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The U.S. economy is surviving only because of over-stimulation.

We’re living on fumes in this country, and the pursuit of happiness has come to an end for millions of families!

Main Street is still suffering. But, the Market is on Viagra, shored up by QE2, the Fed program to buy hundreds of billions of dollars in U.S. Treasury Bonds. As QE2 winds down, and the economy falters, the discussion turns to the possibility of QE3.

A tremendous number of band aids have been administered to keep the U.S. economy from hemorrhaging; to prevent not only a domestic collapse, but a global one.

Each attempt to divert a financial disaster has had varying levels of success; many failing to achieve their intended goals.

Why have we needed so much stimulus?

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Posted in Economy, HuffPost Articles, Predictions, Wall Street | Comments Off

Up! Up! and Up! But Why?

Wall Street continues its climb in spite of the pain they’ve cause on Main Street.

The last two weeks the Street bounced back from its retreat to under 12,000 the previous week. The dow hit a yearly low of 11,613 and the S&P bottomed at 1,256 on Wednesday the 16th of March.

The bulls fight to keep the markets above 12 despite all the turmoil and chaos in the world. On Friday it closed at 12,373 after hitting nearly 12,420 earlier in the session.

Continuing unrest and disruptions in the Middle East, nuclear uncertainty in addition to the devastation in Japan, and financial disruption in Portugal and the United Kingdom, should have sent the market into a 500 or more point tailspin.

With all the uncertainty, why is the market still rising?

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“Hiding America’s ‘Real’ Economy!”

This article is available on The Huffington Post and was posted at 5:00 pm on January 20. Click on link to view on the Huff Post.

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America’s economy seems to be recovering but is that the ‘real’ story?

Some fourth quarter economic indicators—retail sales, manufacturing, stock market, corporate profits—portend a rising economy significant enough to avoid another slide to the bottom.

The optimism on Wall Street is palpable as the stock market continues to rise, or melt up as they now say, a result of the positive indicators over recent months. And the heightened exuberance the consumers showed this holiday season was also a positive sign. Manufacturing has been rising for the last several months which is seen as paramount to an improving economy.

The stock market is on its way back to its peak, due, in part, to record corporate profits.

The market is considered a forward looking indicator, and the private sector seems poised to stand on its own and no longer require the extreme measures it needed from the Federal Government.

So what could possibly go wrong and who would even whisper that things weren’t getting better?

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“A Half-Fast Bill and Premature Evacuation!”

Powerful Financial Regulation would be good for all Americans!

The Senate passed their version of financial regulation, (S.3217) ‘The Restoring American Financial Stability Act of 2010.’ It now moves to conference to be melded with the House Bill, (HR4173) officially called ‘The Wall Street Reform and Consumer Protection Act of 2009,’ which passed the House 223-202.

Majority Leader, Harry Reid, with the help of Democrats and a few Republicans, in a moment of premature evacuation brought a half-fast piece of legislation to the floor without addressing or revisiting some of the most important amendments up for consideration.

Despite passing with a vote of 59 to 39, the Bill is weak and falls far short of its potential of fixing a messed up banking system, economy, the gambling on derivatives, and the Federal Reserve. Several amendments were added to strengthen the bill, but some of the most important failed to pass or were not brought up for vote. And there is little hope that it will get fixed in Conference.

Conferencing of the Bill will be conducted by Senators Shelby, Chambliss, Lincoln and Representative Barney Frank and a few others. But is it salvageable?

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Posted in Finance, Wall Street | 5 Comments »

“Surrounded by Warning Signs!”

Could the stock market still feel the pain of a double dip?

The market had a huge scare last week which left Wall Street reeling!

Traders, analysts, and everyone on Wall Street are worried that this might not just be a glitch. They’re calling it a “flash crash” but it could be one of the many warning signs that the market is just two converging economic crises from a meteoric fall to a new bottom?

The new bottom—a more realistic bottom given all the band aids that have been applied to this economy—could be the second leg of the double dip. There is compelling evidence, largely ignored, that the March low of 6,547 could be tested again.

Despite the rising markets there has been a pall over the trading floors for sometime. And rightly so. The signs are there and they are many.

But does that indicate a double dip?

Last Thursday, David Hefty, CEO of Cornerstone Wealth Management appeared on Squawk On the Street and identified several of the huge warning signs that threaten the global markets.

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Posted in Economy, Markets, Wall Street | 1 Comment »

“One Fat Finger From Disaster!”

Living in a scary over-leveraged, under-capitalized global economy!

As everyone is well aware, on Thursday afternoon, panic struck like a lightning bolt on the trading floors of the stock markets.

Twenty minutes of feverish chaos exposed the vulnerability of the markets. World markets have embraced a model that teeters on tremendous risk. So much so that it has abandoned its purpose; its reason for existence. This leaves them vulnerable to the terrifying moves that occurred globally on Thursday.

Like the Big Banks, the markets have become giant casinos putting everyone’s money and financial stability at risk. That couldn’t have been more apparent than the meteoric fall near the end of the trading day on Thursday.

Some blame a ‘fat finger,’—a trader hitting a ‘b’ for billion instead of a ‘m’ for million—for triggering the events that sent markets spiraling to investment hell. But that wasn’t the only problem the market encountered in that brief, illuminating moment in time.

Human error could conceivably be at the center of Thursday’s sell-off, but technology could prove to be the market’s nemesis rather than its friend. Orders set in motion by high speed, market gaming, computers sent the market tumbling at a record pace as each triggered event triggered another round of events. The two, individually or together, may be the nexus for the eventual destruction of global markets. For whatever reason stocks went on that wild ride, it created a lot of excitement on the trading floors.

So what do investors do after such a frightening occurrence?

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“False Positives”

The markets are still bullish almost 8 months after the March 9th bottom. The Dow closed above 10,000 on October 14th and the bulls have been fighting to stay above it since then. But it has been trending below the ten thousand mark for the last 24 or so days.

The hopes were that earnings for the quarter being reported would be decent. This would give the bulls the ammunition to push the Dow and S&P still higher, well above the 10,000 mark.

So, where is the market going?

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“Shades of Shipping Hues”

Shades and hues
of shipping news,
Will not diffuse
the Shipping cues.

And markets choose
or just refuse
to see the clues,
Of the storm that brews
around The Shipping Blues.

There is even more depressing news about the difficulties in the shipping industry. Even niche ports, such as the Port of Hueneme, are being affected by the slowing economy.

The Port of Hueneme, in Ventura County, south of Oxnard, north of Los Angeles lost $1.3 million during their fiscal year ended June 30. The profit at the port was $1 million the previous year. The port relies mostly on automobiles and produce at their 130-acre facility.

Ronald D. white, author of the informative article about the problems at the largest ports in the country, has also written about the difficulties at Port Hueneme, “Tiny Port Hueneme is hit by perfect storm.”

The perfect storm White describes is further evidence of the head-winds confronting a perceived recovery.

Despite the need to rebuild inventories the ports have not seen the benefits. The ports are clearly a leading indicator of the economy, and judging from the current traffic, the future doesn’t look too promising.

The ports are indicating that there is little demand for either imports or exports. Demand is down because the consumer’s purchase power has declined drastically. If the consumer is not able to buy the products there is no need to restock inventories.

Until the consumer returns to spending; which cannot be accomplished without jobs, rising salaries, and a reduction in debt, we can expect a slow holiday season.

Maybe then we will see a ‘real’ decline in the overheated stock markets.

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Posted in Economy, Shipping, Uncategorized, Wall Street | Comments Off

“Challenging Cooperman”

Last October the widely respected founder and Chairman of Omega Advisors, Mr. Leon Cooperman, saw signs of a bottom in the markets. The Dow was around 9,200 that day and the S&P was just below 1,000 points.

After reading his comments and based on my own informal research I sent Mr. Cooperman a letter and a copy of my book, “Final Audit.” I issued Mr. Cooperman a challenge, a friendly one, stating that the market would continue to tumble and that we would be lucky if it bottomed near 7,000 on the Dow and 740 on the S&P.

We know what happened in March!

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