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Central Planning

Central Planning1

      by Larry Levin   A pathetic defense of central-planning, excuse me – central banking – was offered by the central-planning banker in chief of the USSA a few days ago: Janet Yellen. In her speech about “Rising Inequality” Janet spewed the following truth, but of course offered no true reason as to why it is happening - “The extent of and continuing increase in inequality in the United States greatly concerns me. … It is no secret that the past few decades of widening inequality can be summed up as significant income and wealth gains for … [Read more...]

Messed Up

Messed Up2

      by Larry Levin   With another massive up day in the markets on Tuesday on dismally low volume, it is officially back to the baffling and the bizarre. Whatever the incumbent politicians will tell you in their stump speeches as we approach the mid-term elections, the "economic recovery" that we keep hearing about is less than stellar. Not that the politicians running against the incumbents seem to be offering any solutions. But the facts speak for themselves. Here are 19 truths about the state off the US Economy from the Economic Collapse … [Read more...]

Sticksave

Sticksave2

      by Larry Levin   Well things are back to “normal” for the time being. Earnings disappointments, check. Bad economic news, check. Market rebound, check. Another Central Bank sticksave, check. Yesterday it was IBM, today it is the other consumer-spending bellwether, Coke, to disappoint on earnings. But Coke didn’t just miss, it missed big, reporting $11.98 billion in sales, well below the estimated $12.12 billion. In addition, they had warnings about the future, guiding "below its long-term EPS growth target for 2014." Of course the shakiness … [Read more...]

Bonds

bond funds

      by Larry Levin   Equities were not the only market that experienced high volatility last week; the bond market did as well. At one point, the 10-YR Note shocked the market by violently trading below the 2% water mark. I believe that a great deal of that volatility was due to the sell-off in stocks, which was due to the ending of QE3 Treasury purchases, which may have sparked a short-covering rally due to one very short and very large fund. A short-covering rally in bonds forces the price higher but the yields lower, which created the sub 2% trade, … [Read more...]

QE 4

QE 41

      by Larry Levin   If you have been paying attention to the real reason why the Federal Reserve conducted QE2, Operation Twist, QE3, etc it is not to help the jobless, or to lift inflation, or for the general economy. No, it is now and has always been to boost the stock market. I know that this isn't part of the Fed's mandate, but why would that matter to a group of secret bankers? Just two days ago, when the market (ES) was trading at a shockingly low level of 1875.00, word came from on-high that a Fed member mentioned a possible QE4 action. Could it … [Read more...]

Cra-Cra Zone!

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        by Larry Levin   Wednesday's markets – all of them – were absolutely crazy, or cra-cra as the kids say. The energy markets were mad yesterday, while stocks and BONDS went ape-sh*t today. As Rod Sterling may have said: There is a fifth dimension beyond that which is known to man. It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man's fears and the summit of his knowledge. This is the dimension of FALLING … [Read more...]

Park the Prius

Prius2

      by Larry Levin   Park the Prius and pull the SUV out of the garage. Oil prices posted their biggest one-day drop in nearly two years Tuesday as a U.S.-led wave of crude has crashed into weak global demand, threatening the stability of some countries and providing an economic lifeline to others. Tuesday’s slide of 4.5% by U.S. crude oil to $81.84 a barrel on the New York Mercantile Exchange left the price down 20% since the start of June. That was the lowest closing price since June 2012, and some analysts predict the price will fall as much as $10 a … [Read more...]

Creative License

Creative License2

      By Larry Levin   Often bizarre, always baffling and generally broken, the financial markets and the economy, the subject of these missives, have provided me with plenty of material. Well, now the financial analysts and other mainstream players have also ditched the traditional jargon and are reaching for artistic and creative references. From Bloomberg: Ed Yardeni cited “The Wizard of Oz.” International Monetary Fund Managing Director Christine Lagarde went with both “Alice in Wonderland” and Harry Potter. Stephen King -- the HSBC … [Read more...]

Stormy Seas

StormLake

        by Larry Levin   As the bond markets are closed today to honor the Spaniard that discovered America, the announcement was made by the Swedes to honor a Frenchman. How very international. Jean Tirole has won the 2014 Nobel Prize for economics for his work that has shed light on how governments should regulate powerful companies that dominate markets, the Royal Swedish Academy of Sciences said on Monday. Tirole's research showed that market regulations should be carefully adapted to the conditions of specific industries, rather than … [Read more...]

Bulls Having Trouble Escaping Dampened Global Sentiment

bullresting

    After gaining modest ground in early action, the U.S. equity markets are extending their recent sell-off amid festering global growth worries, particularly toward the eurozone, while volume is lighter than usual with the domestic bond markets closed for Columbus Day. Moreover, data is on the light side, with the domestic earnings and economic calendars quiet today ahead of a heavy week of reports. Early support for equities came as China reported a stronger-than-expected September trade report. In equity news, CSX Corp is receiving a boost from reports that Canadian Pacific … [Read more...]