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We own AIG and don’t control it. We now own GM and also, don’t control it. As the US moves from a ‘capitalist’ system to a fascist ’state controlled’ system we left out the ’state control’ part while making the state part of it. See? HAHAHA. Good grief, this stupid Bilderberg system of using our state to take over systems while not letting the government take over is the real story here. Also, the mass suicide methodology of the US capitalist system is ridiculous. The fear that our government will be seen as socialist is great. The government is a private preserve of the very rich who control the political process from top to bottom. But they can’t bear even the slightest potential public oversight so we have bizarre headlines like:
U.S. Vows To Be Hands-Off Owner of GM – Forbes.com
As our auto industry dies, they hope to be stronger and nimbler? HAHAHA. And where is Jack be nimble planning to jump to? Not over a candlestick. The jumping jacks here are all about being very nimble while running off to China. Period. End of story.
The global financial crisis may morph into a second, equally virulent phase where borrowing costs rise again, debilitating cash-strapped banks, and punishing investors all over again. Early warnings signs of this scenario include surging government bond yields, a slumping U.S. dollar, and the fading of the bear market rally in U.S. stocks.
Optimists hope that a fragile two-month rally in world stock markets, a rise in U.S. Treasury yieldsl signal that a recovery is around the corner. But gloomy analysts insist that thinking is delusional.
With GM’s bankruptcy no longer hanging over Wall Street, perhaps now investors can get their minds right for some really bad news. We’re talking about the looming bankruptcy of California, of course, and of at least a few more big-budget states whose books are in equally disastrous shape, including New York, Arizona, New Jersey, Nevada, Rhode Island and Florida. All told, the 50 states are looking at budget shortfalls totaling $350 billion over the next two-and-a-half years, according to the Center on Budget and Policy Priorities.
The financial crisis deepens, fed by positive feedback. Job losses reduce personal spending, resulting in more lost jobs. The USA lost 539,000 jobs in April 2009. That's supposed to be good news because in the previous month we lost even more: 699,000 jobs. We're supposed to find hope in the second derivative. The basic number is the number of jobs. The monthly losses are the first derivative. I'm afraid to try to fit an algebraic formula to the employment numbers. When it finally bottoms out, the number of employed people might be down to one: President Obama and nobody else.
I'm reading and enjoying Paul Ormerod's book Butterfly Economics. The "butterfly" is a reference to atmospheric general-circulation computer models that are very sensitive to the initial conditions. Ormerod gives a clear explanation of positive feedback. When I finish reading it, I'm going to put it on my bookshelf next to Bert Malkiel's A Random Walk Down Wall Street.
In a few years, there will be an abundance of non-geological explanations for peak oil: OPEC cut back production to support the price. Investment in new oil sources was interrupted by the drop in the oil price. The Hubbert prediction did not involve the minutiae of the oil markets. It could well be that the oil-supply tail is wagging the world economic dog.
As best we can figure, this rally is providing cover for the big Wall Street banks who are issuing equity as fast as their little hooves can move, to qualify for the TARP payback mechanism.
By 'proving' that the market wishes their debt and equity, Timmy says they will be permitted to pay back their TARP funds, and be released from scrutiny on their bonuses. While the volumes stay thin and the Fed's wallet remains fat, this rally make continue. Or at least an optimistic trading range.
A U.C. Berkeley report shows that most Internet users don’t understand web site privacy policies, and that major online businesses like Google Inc. freely gather data and share it with affiliated businesses via loopholes in those policies. Using trackers called “web bugs,” third parties collect user data from many popular web sites, and sites often allow this, even though their privacy policies say they don’t share user data with others.
Discussion of the 50% Retracement Rule,
potential future price levels, time studies, key dates, Fibonacci, Gann, Astro numbers, Robert Rhea's Great Depression analysis.
German Chancellor Angela Merkel, in a rare public rebuke of central banks, suggested the European Central Bank and its counterparts in the U.S. and Britain have gone too far in fighting the financial crisis and may be laying the groundwork for another financial blowup. "I view with great skepticism the powers of the Fed, for example, and also how, within Europe, the Bank of England has carved out its own small line," Ms. Merkel said in a speech in Berlin. "We must return together to an independent central-bank policy and to a policy of reason, otherwise we will be in exactly the same situation in 10 years' time." Ms. Merkel also said the ECB "bowed somewhat to international pressure" when it said last month it plans to buy €60 billion ($85 billion) in corporate bonds -- a move that is modest in comparison to asset-buying by its counterparts, the U.S. Federal Reserve and the Bank of England. Details are to be unveiled by the ECB's president, Jean-Claude Trichet, Thursday.
Funny how Bloomberg, who ran this originally, edited the headline and removed it. Did someone in The Administration or Treasury call Bloomberg and complain? Telegraph: In his first official visit to China since becoming Treasury Secretary, Mr Geithner told politicians and academics in Beijing that he still supports a strong US dollar, and insisted that the trillions of dollars of Chinese investments would not be unduly damaged by the economic crisis. Speaking at Peking University, Mr Geithner said:
"Chinese assets are very safe." The comment provoked loud laughter from the audience of students.
This isn't worth a mention over here? University students can see through our BS in seconds, but the sheeple here in America don't, and we continue to allow these clowns to have their hands on the levers of fiscal policy. Simply amazing; the Chinese have clearly figured it out, and they're not beyond expressing it. Of course our so-called "media", say much less our Washington Political Establishment, provide all the trappings of undeserved decorum to someone when college students in a foreign country can see right through it. Turbo Timmy and our media continue to insist on the exquisite tailoring in Timmy's new suit, while the Chinese see his schlong and beer belly hanging out in the breeze.