Where Progressive Thinkers and Truth Seekers Gather to be active Public Citizens and Peacfully Pursue Social Justice and engage in conversation and debate about Truth about Government and the Economy and Investing and where Freedom, Justice, Equality and Fairness aren’t just slogans but foundational Principles of Free and Humane Citizens who care about their brothers and sisters on this Earth. Civil Debate and Solution oriented thinking and educational resources and an intellectual community are welcome here. This is designed to be the ultimate town hall and resource for information and education and opinion to counter balance the increasingly homogeneous establishment news media and spin. In the spirit of JFK, RFK and MLK, this site seeks the path of peaceful resistance to injustice and the pursuit of freedom, justice, social justice and the Spirit of the real America.

The Job Market, Education and Personal Viewpoints

Let's Start That Discussion Here and Now- Workforce 2000

Submitted by Veteran_Lender on Mon, 03/02/2015 - 08:30.

I find it fascinating how some things jogged from memory can illuminate. My focus has been on supernova... the idea that at one point after the 1980's our corporations would grow too large and employ so few that they would burst like supernovae, as opposed to implode as they did in 1983 from downsizing when too much of them were reliant on US productivity.

A 2011 Nouriel Roubini Analysis Resurfaces

When an economic analysis is offered, the audience expects no sooner have the lights been extinguished and the crew relaxes, the walls will cave in and everything will implode; or, if not, there is little substance to the evaluation and it can be swept away.

IGNORANCE IS EXPENSIVE! Can we afford it?

The jury is still out on that decision.

Unpublished thoughts from five years ago.

.

Axel Leijonhufvud, UCLA and Unv. Of Trento, Italy

At Bussels, October 14, 2009 ECFIN 6th Annual Research conference of the Economic and Financial Affairs Directorate of the European Commission

“If all subprime mortgages had gone to default, total loss to investors would have amounted to a few hundred billion dollars. . . American and European governments and International Agencies have committed more than 10 times that amount trying to stabilize the system.”

Economics Theory and the "REAL" World

A short discussion reproduced in the Tsunami Thread about five years ago - March, I believe - which would then have put the introduction back a month or so prior (as always: the recall could be mistaken) - explained in short detail the intent of the Fed to shift everyone into a negative interest rate environment. Simple enough, cut interest to the Zero Lower Bound (ZLB) and allow inflation to take over at a higher rate, debasing the value of your money. The process yields cheaper money to pay off the more expensive debt incurred.

As Oil sinks, Gold rises. Jan 20, 2015

All manner of speculation is replacing common sense these days: Oil was touted to reach as far down as 25 while a Saudi prince counsels bid goodbye to thoughts of $100 crude and OPEC, now with Iran's unofficial approval continues to pump and distribute to an over-supplied market; and China is supposedly smuggling gold into their treasury while the small Swiss franc creates a stir in Europe.

To what positives can Wall Street look forward?

Could one day signal the rebirth of investment and a more positive recovery?

What happened to encourage the one and a quarter percent jump (up 212.88)in the DJIA averages yesterday?

Oil jumped 18¢; the December, 2014 FOMC minutes were released which provided insights into participants expectations for future GDP growth, 2.2 to 2.5% by 2017 and beyond with inflation calming from 2.0 to 2.2% for the September, 2014 preliminary figures to 1.8 to 2.0 in 2017 and a PCI inflationary impact of 1.8 to 2.0%. This was accompanied by the vague suggestion that the Fed will wait a couple of months before deciding what action to take on interest rates.

The Years Change but the same headlines recirculate

Second day of the New Year and already the déja vue epidemic is in play.

Bloomberg headlined the marvelous US stock markets opening shooting straight up a hundred points or so at opening this morning and then collapsing. It was expected. Market pros are intent on creating an impression and dragging some unsuspecting neophytes into the game, shear them of some pocket change and once those early expenses are covered the market is released to follow the way the path of least resistance. . . down.

Some room to think. . . Quo Vadis? Beyond 2014

It's all fun and games until someone gets poked in the eye...

Stock Market or Media confusion?

How to explain stock markets' unpredictable volatility?

The media is subject to this quandary on a daily basis. How do they solve it? - Is it no more than answering, what's covered in the news services in the past five minutes?

The Retail Market - sales and conditions

Veteran Lender has posted frequently on the condition of our retail markets, from the viewpoint of products, consumer needs and satisfactions and the conditions of retail industry itself. These two posts, the first from the beginning of 2014 and a current (Nov. 1st) addition may give the reader a sense of how we fare in the essential retail markets, the source of nearly 100% of our needs - except for those who have a direct private source of their own, farms, hobby manufacturing, inventors, etc. (not a large or significant market group in our economy).

How goes the dismal October, 2014?

Two gurus faced off with three Bloomberg staff members to discuss the outlook after a volatile October and the descriptive phrase 'Goldilocks' entered into the conversation.

Late entry Oct. 15, 2014 - Before we douse the lights for a few hours rest.

Germany's DAX headed down at a 2.47% rate at market's close this afternoon. To start their Oct 16, Asia's markets are drifting down at a slightly moderated rate, but red. Italy was particularly hard hit, off 4.44%, losing 850.86.

Market Activity and Economists' frustrations

Part I - Science and a career in science

Five Nobel Laureates - Plus Another bright light - and Pressing Global Issues

June, 2012, Charles Wyplosz, Professor of International Economics at the Graduate Institute, Geneva and Director of the International Centre for Money and Banking Studies among other activities and contributions, Contributed a column to voxeu which may have passed before many eyes without much stir. It was titled "One more summit: The crisis rolls on". This could have been interpreted into conversational language as, "So the EU summit was conducted and where are the results? What was accomplished for all the hulabaloo?"

The European Central Bank's Recovery Prescription

The ECB prescription for recovery is a repeat of the Bernanke QE plan which the US Fed followed to no avail, and from which it is now finding it difficult to untangle itself after an eight year mess. The best that can be hoped for is if there were a stirring at all, it would have been minimal, based on vaporous hope, nothing more. Is there any evidence that an asset purchase plan, which transfers toxicity from one sector to another, generates any response other than a nation holding its collective breath, both public and private, with the underlying hope that "This time will be different"?

Behind Market activity Opening dismal October, 2014

By 11:00 AM EST,the US markets had recovered from the 1% + drop opening, standing at approx. - 0.76%. Red still predominated globally but for the positive Hang Seng and CSI 300.

Explanations for the decline centered on the US ebola patient and relevant industries: e.g., airlines and travel in those confined quarters - generally down; pharmaceuticals at work on ebola medicines; healthcare, on clothing, etc., generally up.

Not helping matters are

  • slowing factory activity in the US and Asia in September;
  • construction spending declines;

Market activity, Thursday, September 25, 2014 - Reality and Fantasy colliding?

At 11:16 AM this morning, the Dow stood at slightly more than 200 down. Thursday appears to be the new "unloading" day; dump on Thursday and pump on Friday to establish a firmer outlook for the start of the new week. However, the Dow dipped below 17,000 and hit a support level and bounced to a minimally higher point at about the 16,998 level at this time.

Reuters featured an article that highlighted the record high decline in durable goods orders, -18.2% - where a -17.5% decline had been anticipated. We're "due for a correction".

News Breaks – Weakness Everywhere!

Amazing what can develop in one week’s time when least expected. The hope had been that the Fed could have announced that since the economy is doing so well we’d be able to raise interest rates. Suddenly, the consumer inflation indices are down, the bond markets which had been maneuvering in anticipation of the increases find themselves out on a lonely prairie abandoned and the dollar is slipping, and on both sides of the rate issue principals are retracting.

Futures lower, USD sheds some luster, gold rebounds, and Phillips looks for greater returns.

Smaller things create the greater picture.

Also a sign of the times, the Phillips group appears committed to ridding themselves of their first reason for being - electric light bulbs. Reuters had the short blurb announcing Phillips intention among other headlines that indicate our shared path regardless of the feasibility and compatibility with current situations. These are a mark of our times.

Home sales disappoint, Stock markets pull back!

So the Reuters headlines herald today as the Dow dips a modest amount, barely edging into the three digit negative area.

The short blurb on existing home sales finishes off with the quick summary,

" . . . much weaker than expected raising new concerns about the level of growth in the economy."

A Note on Retail Businesses

We've mentioned traffic in US retail business on more than one occasion and in more than an off-handed way. Veteran Lender has contributed the thought that some leading retail corporations may be facing more than a squeeze before the year-end holidays and might even be forced into consolidation of some sort. O&G has voiced concern about the light traffic encountered in malls and stores. Now, Fortune magazine has an article in their September 22 issue starting off with a question for a title - "Where have all the shoppers gone?" Reflection on the Secular Stagnation?

We're sitting on top of the world - - In case you haven't heard.

Paul Krugman is quite a fortunate man - all due to his industry, intelligence and planned investment in his future. The number of people with his blessings are so few even with the ridiculously low calculated suggestion that we are only six degrees (contacts) away from knowing everyone on the face of the earth, the chance of our coming into face to face contact with someone of his caliber is prohibitive.

An update on the puzzling report on derivatives - 8/26/14

Before the Dodd-Frank Act was signed into law, an enterprising reporter cornered Representative Barney Frank and asked a few questions about the contents of the Bill as passed. One of the questions was whether the Act brought all derivatives under regulation. The answer was short, "No, it didn't. It wasn’t meant to." Congressional records carry similar disclosures from both Frank and Dodd in respective recorded responses.

Reuters touts S&P advancing records rather than record advances.

The main headline on the Reuters site today looks for S&P to continue its upward move despite no indication from "fundamentals" that value has increased. In their words, -

"The level has more psychological than fundamental significance, and it could prompt market participants to consider whether their holdings have become stretched."

Secular Stagnation, chasing after the golden fleece while ignoring the flock.

Voxeu.org has a new e-book available, Secular Stagnation: Facts, causes and cures, edited by Coen Teulings and Richard Baldwin. It is available at this site: -

http://www.voxeu.org/content/secular-stagnation-facts-causes-and-cures

A shorter, lead-in version is on the voxeu.org site, at: -

http://www.voxeu.org/article/secular-stagnation-facts-causes-and-cures-n...

Headlines and beyond: 8-13-14 AM

Reuters primary headlines - meaning bolder type and more prominent location than the second tier headlines - provide the following for consideration -

  • Weak retail sales point to slowdown in U.S. consumer spending;
  • Wall St. rises with ease in Ukraine, Iraq tensions 9:41am EDT;
  • Macy's cuts same-store sales forecast, shares drop 9:07am EDT;
  • U.S. Fed seen moving slowly after first rate hike in second quarter 2015: Reuters poll 9:43am EDT; and,
  • U.S. mortgage applications fall in latest week: MBA

Fighting Debt with Inflation

The culmination of papers suggesting the Fed increase the inflation target, points out some of the problems and negative aspects residing in Inflationary policy.

Outlook for August 6th, 2014 - Class War continues - Chapter n-1!

FIRST- Veteran Lender's post should open this thread

In-Fighting...

Submitted by Veteran_Lender on Wed, 08/06/2014 - 12:05.

Obviously, the day took a nasty turn after your update yesterday, but the message remained spot-on. There is one thing to add to your commentary- that the in-fight for power through financial manipulation takes a mighty toll on us all.

Outlook Thursday, July 31, 2014

Very short initial post before markets open in the US, on which we'll expand our thoughts.

  • Bloomberg shows futures worldwide in the red - all but for China Securities Index 300;
  • Major Impetus appears to be geopolitical unrest and the Fed's nearing the end of its current QE culling process; and
  • Foods are down in US and Insurances up - the last apparently explained by the ludicrous cycle of insurance stocks appreciating since an important source of their income derives from the rising prices of market equities held.

An effective multiplier, but senseless. Simple ask if the same multiplier applies on the way down?

"Dark Pools" and Brokers' Opinions Responding to a Bloomberg Poll

One broker is quoted at the top of the article, in paragraph three -

“I don’t like secret societies,” said Peter Nielsen, a senior investment analyst and poll respondent at Saturna Capital Corp. in Bellingham, Washington, which oversees $4 billion. “I don’t like secret trading; it just runs against my personal disposition,” he added. “I’m a big believer in transparency -- huge believer in transparency. Even the word ‘dark pool’ freaks me out.”

This from a man who earns his living at the market.

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