Financial Review

Quiet, Almost Too Quiet

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-03-09-2017.mp3Podcast: Play in new window | Download (Duration: 13:15 — 7.6MB)Subscribe: iTunes | Android | RSS…..Flat days the new norm. Glass-Steagall lives? ECB holds steady. Layoffs down. Jobless claims up. AZ loses jobs in Jan. Bill Gross on the Trump mirage and nitro on a bumpy road. 10-year note crosses 2.6%. No sale on paint. GE sells water works. Sears fading away. Flippers got legs. Happy and healthy cities. Financial Review by Sinclair Noe for 03-09-2017

READ MORE →
Uncategorized

Hamlet Dies by Sinclair Noe Record Highs for Dow and S&P. DOW + 169 = 15,460SPX + 22 = 1675NAS + 57 = 357810 YR YLD – .10 = 2.57%OIL – 1.92 = 104.60GOLD + 22.70 = 1286.60SILV + .69 = 20.25 To taper or not to taper? That is the question. Whether ’tis nobler in the mind to suffer the slings and arrows of outrageous bond market feral hogs or to feed the savage beasts with unending securities purchases. Or to tighten against a Sea of non-existent inflationary troubles And by opposing end them: to die, to sleep, to slaughter the feral hogs at the Discount Window trough; and end the thousand Natural shocks that markets are heir to? Is that all? To taper, to tighten, perchance to Dream; Aye, there’s the rub. For one is QE and the other is accommodative monetary policy, while fiscal policy and structural reforms are nothing more than ephemeral motions, the stuff of what dreams may come, When we have shuffled off this mortal coil. Well, that’s enough of our literary mosh pit for today. As I recall, Hamlet died. The FOMC minutes released by the Fed yesterday, were much ado about nothing… sorry. There was a bunch of talk that boiled down to the basic idea that Quantitative Easing and interest rates are two separate policies. The FOMC bigwigs have no intention of raising the interest rate target; that is off limits. The securities purchases under QE will taper off at some …

READ MORE →
Uncategorized

Thursday, October 18, 2012 – The Only Day Like it Ever

The Only Day Like it Ever by Sinclair Noe DOW – 8 = 13,548 SPX – 3 = 1457NAS – 31 = 307210 YR YLD +.01 = 1.83%OIL un = 92.09GOLD – 8.30 = 1742.60SILV – .38 = 32.92PLAT – 19.00 = 1651.00 Do you remember where you were 25 years ago? It was a Sunday; 1987. The news of the day was that Nancy Reagan had been hospitalized with cancer; there was a threat of war with Iran and within 24 hours the US was shelling Iranian oil platforms; there were concerns about Germany’s currency; the United States, wanting to prop up the dollar and restrict inflation, tightened policy faster than the Europeans. US pressure on Germany to change its monetary policy was one of the factors that unnerved investors.The stock market had a wave of steady selling on Friday and the Dow dropped 108 points. Most people really weren’t aware; this was before we all had computers and smart phones and tablets. Maybe you read about the Friday sell-off in the Sunday newspaper. Maybe you thought about selling a little bit of your portfolio, but the truth is that it was already too late. Halfway around the world, the dollar-backed Hong Kong markets were chopped down 10%. And then the crash spread. European bond markets collapsed, which caused interest-sensitive savings and loans and money center banks to plunge. Monday morning, October 19, 1987 the crash washed across lower Manhattan. In a flash, the Dow crumbled and by the …

READ MORE →
Uncategorized

Wednesday, July 25, 2012 –

Sandy Weill, Glass-Steagall, and Banksters on the Wrong Side of History-by Sinclair NoeDOW + 58 = 12,676SPX -0.42 = 1337NAS – 8 = 285410 YR YLD unch = 1.41OIL +.61 = 90.67GOLD + 23.70 = 1605.80SILV +.38 = 27.44PLAT + 15.00 = 1406.00One story today. In 1993 Sandy Weill acquired Shearson Lehman; in quick order he also bought up Travelers Corp and Aetna Life and Casualty and then Salomon Brothers. He began calling the conglomerate, Travelers Group. In April 1998, Travelers Group announced an agreement to undertake the $76 billion merger between Travelers and Citicorp. The new company, called Citigroup, combined a commercial bank holding company with an insurance company and investment banking; it was a big one stop shop that included Citibank, Travelers, Smith Barney, Primerica, Citifinancial, Shearson, Aetna, and Salomon. At the time, it was the largest merger in history and created a financial behemoth with operations in 100 countries. It was also illegal based upon the Glass-Steagall Act of 1933.Let’s go back in time to explain Glass-Steagall. At the height of the Great Depression the Congress conducted hearings which showed that the presumed leaders of American enterprise, the bankers and brokers, were guilty of disreputable and dishonest dealings and gross misuses of the public’s trust, literally buying control of politicians. The hearings started in 1932 and they uncovered plenty of abuses. JP Morgan maintained a “preferred list” of clients that would get special deals, huge discounts on stock purchases that could then be flipped for a quick …

READ MORE →