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Monday, September 16, 2013 – Do It Again

Do it Again by Sinclair Noe DOW + 118 = 15,494SPX + 9 = 1697NAS – 4 = 371710 YR YLD – .02 = 2.86%OIL – .53 = 106.06GOLD – 14.00 = 1314,90SILV – .45 = 21.92 The Bank of International Settlements is a Swiss based central bank for the central banks, kind of a global clearing house. The BIS has just issued its quarterly economic review. The conclusion: it’s 2007 all over again, but even worse. All the previous imbalances are still there, but total public and private debt has grown to more than 30% of GDP in advanced economies, and bubbles are forming in emerging markets. Subordinated debt has in Europe and the US has ballooned. Leveraged loans are at an all time high. The BIS said interbank credit to emerging markets has reached the highest level on record while the value of bonds issued in off-shore centers by private companies from developing nations exceeds total issuance by firms from rich economies for the first time. So, there is more debt than ever, and a greater appetite for risk. And if the Fed raises interest rates this week there will almost certainly be a spill-over effect; global borrowing costs will rise. The international financial system is more unbalanced than 5 years ago, and there is a concern that markets can remain liquid under stress. If there is a problem with liquidity, the BIS figures there are fewer lifelines than before. The global markets, including the US, have become …

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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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Monday, April 30, 2012 – The Euro is Actually Kind of Important – Corporate Campaign Bribery – OWS Comes out of Hibernation

DOW – 14 = 13,213SPX – 5 = 1397NAS – 22 = 304610 YR YLD – .02 = 1.91%OIL -.07 = 104.80GOLD + 1.50 = 1665.30SILV – .26 = 31.11PLAT – 4.00 = 1574.00 A sharp drop in an index of Midwestern manufacturing and a slowdown in U.S. consumer spending last month added to worries that the U.S. economy is slowing down. Weaker earnings reports from health insurer Humana and the owner of the New York Stock Exchange, NYSE Euronext. The losses were broad. Nine of the ten industry groups in the S&P 500 fell, led by materials. Only telecoms rose. The Spanish government said that country’s economy shrank 0.3 percent in the first three months of the year, the second straight quarter of contraction. Spain is the fourth-largest economy among the 17 countries that use the euro. The worry is that Europe’s bailout funds won’t be big enough to rescue Spain if it needs help. Ratings agency Standard & Poor’s downgraded Spain’s government debt to just three notches above junk Friday. Earlier today, S&P lowered its rating for 11 Spanish banks, which are loaded with bad debt from a collapsed housing market. The good news is the euro hasn’t collapse, at least not yet. Somehow, the countries of the European Union continue to overcome their varied self-interest and they seem to do just enough to avoid catastrophe, at least for now. One reason the Euro still exists is because it is more than a monetary union, it is also …

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