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Tuesday, May 01, 2012 – The Return of Occupy Wall Street

DOW + 65 = 13, 279 SPX + 7 = 1405NAS + 4 = 305010 YR YLD +.04 = 1.96%OIL – .15 = 106.01GOLD – 2.10 = 1663.20SILV -.04 = 31.07PLAT + 3.00 = 1577.00 The Dow Industrials hit the highest point since December 2007. Later this week we’ll have reports on retail sales and the big monthly jobs report on Friday. Today, the ISM reported their manufacturing index rose to 54.8% last month from 53.4% in March. The results were much better than anticipated. We may have hit a top in the stock market: Former Federal Reserve Chairman Alan Greenspan said U.S. stocks offer good value and are likely to rise as corporate earnings increase over time. “Stocks are very cheap,” Greenspan said today at the Bloomberg Washington Summit hosted by Bloomberg Link, citing “a very low price-earnings ratio. There is no place for earnings to grow except into stock prices,” I mean, when Greenspan speaks it must be a contrary indicator. Today is the one year anniversary of the killing of Osama bin Laden. President Obama is in Afghanistan, and he’ll deliver a speech a little later. Today is also May Day. Occupy Wall Street is back; trying to resurrect the movement with May Day marches, which gained momentum through the day. Protesters marched on banks, chanted anti-corporate slogans, and clashed with police in an opening day of sorts for the movement’s summer revival. In New York, hundreds of protesters gathered in Union Square. A crowd surged out …

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March, Friday 23, 2012

DOW + 34 = 13,080SPX + 4 = 1397 NAS + 4 = 3067 10 YR YLD -.04 = 2.24% OIL + 1.40 = 106.75 GOLD + 17.90 = 1663.80 SILV +.65 = 32.34PLAT + 4.00 = 1630.00 Bloomberg News is reporting that Jon Corzine, the former CEO of MF Global gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in one of the brokerage’s accounts with JPMorgan Chase in London. Back in December, Corzine testified that he never intended to misuse customer funds, he didn’t know where the money went, and (quote) “I did not instruct anyone to lend customer funds to anyone.”  Now, investigators have an email from the firm’s treasurer, three days before the company collapsed, and it says the transfer of funds was “Per JC’s direct instructions.” Somebody is going to have to re-hypothecate their testimony. Federal Reserve Chairman Ben Bernanke says the economy is operating below its level prior to the financial crisis. Bernanke said: “Consumer spending is not recovered, it’s still quite weak relative to where it was before the crisis. In terms of debt and consumption and so on we’re still way low relative to the patterns before.” I think what Bernanke is saying is: go shopping; go into debt if you don’t have money but just buy something. The US changed in the early 1980s from a model where rising worker wages were seen as the driver to growth and hence a focus of policy, …

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