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Wednesday, October 09, 2013 – Scum in the Steam Room

Scum in the Steam Room by Sinclair Noe DOW + 26 = 14,802SPX + 0.95 = 1656NAS – 17 = 367710 YR YLD + .01 = 2.65%OIL – 2.03 = 101.46GOLD – 11.90 = 1308.00SILV – .40 = 21.99 We’ll get to Janet Yellen in a bit. First, I’m getting sick and tired of this stupidity oozing out of Washington; you are too, I know. Americans’ confidence in the economy has deteriorated more in the past week during the partial government shutdown than in any week since Lehman Brothers collapsed on Sept. 15, 2008, which triggered a global economic crisis. Gallup’s Economic Confidence Index tumbled 12 points to -34 last week, the second-largest weekly decline since Gallup began tracking economic confidence daily in January 2008. And that poll was taken at the end of last week. Since then, we’ve hit a new low. The government is still shut down. I don’t know why. John McCain delivered a speech on the Senate floor; he said: “To think that we were going to repeal Obamacare, which would have required 67 Republican votes, of course, was a false premise.” So, I really don’t know why we are still having a shutdown. He then went on to recognize the five families of US soldiers killed last weekend in Afghanistan; 21 soldiers have died since the shutdown started. When a soldier is killed in battle, the family receives about $100,000 in death benefits. A month ago, the Pentagon warned the politicians on Capitol Hill that …

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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 …

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