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.
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, -
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: -
A shorter, lead-in version is on the voxeu.org site, at: -
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
The culmination of papers suggesting the Fed increase the inflation target, points out some of the problems and negative aspects residing in Inflationary policy.
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.
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?
One broker is quoted at the top of the article, in paragraph three -
This from a man who earns his living at the market.
Impossible to think of the exchange between a customer seeking to terminate service from a supplier and the arrogant refusal to respond to his request as possible anywhere but in the land of the dollar.
What does Janet Yellen have in reserve to be revealed in her coming testimony before Congress?
A Reuters headline poses the question facing more than the Fed alone - more than her cohorts in the various committees, systems and sectors in the US or elsewhere: How to chart a path to "normalization".
Despite the smiles, displays of confidence and self-congratulating attitudes, what do their faces show when the spotlights are turned off and the crowds disperse?
A Reuters article on Vatican banking today reports even the Vatican cannot resist temptation in its banking system and adopted the code of ethics – or dropped them is more a propos – to race after riches and scruples be damned!
. . . how many as a result of attempting to analyze markets' next move or whether they are paused in anticipation? Or governments' next commitment to policy or program?
So many bubbles have generated air space beneath us, there's question enough whether the flooring has the support we need. It's honeycombed with weakness that can disappoint us on any step from here on, forward or backward. . . and in our indecisiveness, we do too much of both!
Two news items exhibit unexpected turns of rationale which may be of the same species:
- Part One: Paul Krugman calls to task those with "delusions" about inflation - and classifies the group in the "Conservative" category; and,
- Part Two: Reuters features an article that strongly suggests Central Banks (specifically the Fed, BOE and BOJ) are giving up the "openess" of "forward guidance" and returning to the days of opacity, when Monetary Policy was and "art".
Previous Comments on the vital JOBS issue which is not improving - moved to front and center.
Reuters reports that Barclays, which assumed Lehman Bros US business, is involved in "Dark Pool" operations, described as allowing large institutions to engage in market activity anonymously. The problem surfaced when increased activity suggests parties other than large institutions are allowed access to the process.
New York's Attorney General filed a lawsuit Thursday and Barclays promptly lost $3.4 billion, approximately 6.5% of market value Thursday before stabilizing Friday.
For those not absolutely certain of the definition of the commonly used phrase “liquidity trap" this begins with an extraction from a 1960's paper by Friedman-Schwartz entitled “Money and Business Cycles” -
Since February, 2008 we've been on a quest to explain the 2007 crisis and the failures that prolonged recovery. We gathered sufficient courage to begin concentrating in earnest in a thread on Microsoft's Money Talk forum initiated by Duffminster early February, 2009.
- By the seventh of the month, we listed our version of the four main problems the system faced, which Duff moved forward to occupy message #15 in the tsunami thread - beginning March, 2009..
The link to the article in Old and Gray's blog site is -
Monday, July 15th, Paul Krugman defended President Obama's record in his NYTimes column. Health Care and Climate: President Obama's Big Deals. The grounds cited, leaders should be judged by their achievements, not by their press reports, may sound logical, but are of no use to the unemployed, under-employed, of otherwise stressed or deprived by issues of income and sustenance - e.g., low interest rates, inadequate return for their career-long social security payments, diminishing compensation - all adding up to difficulty in making ends meet, etc.
This is the third entry on statistics provided by the Bureau of Labor Statistics (BLS) and jobs in which disagreement on the principles of arithmetic are in dispute.
Figures provided are prefaced with "seasonally adjusted" which may cover the mythical "multitude of sins". The sinful part is the reporting, in this case by Reuters, and the conclusions drawn about the "strengthening economy"?
If readers responded to the email address posted here less than 24 hours ago, humble apologies are in order.
The promise from the site was anonymity, but delivery on service is some kind of maze O&G is unable to master. Last night access was possible; this morning, the site will not accept O&G's login.
With regret, the offer must be retracted.
Again, with apologies.
With only the month of June remaining before closing out the second quarter of 2014, where are the good signs for recovery?
What’s the value of High Frequency Trading (HFT) if additional unanticipated, un-contracted for and onerous “deadweight costs” are attached to the expense of participant traders all for the benefit of “market makers” and “market bandits”? And will it have any effect on day traders or the general perception of the markets' integrity?
Jamie MeGeever, Reuters' chief Markets Correspondent in Europe. . . and elsewhere for that matter. . reported on May 11, 2014 that
His observation -
From Business headlines to market activities - Could this be the day of demarcation?
From Reuters leading headline of jobless claims hitting a seven-year low (which could be a good sign except for the fact there are still more jobless added to the rolls) to the stock markets' weak performances all around today, Wednesday, May 15, 2014, there's reason enough to be concerned.
In an exclusive article published today, Sarah N. Lynch of the Reuters Washington Bureau reported
The link to the Reuters article -
A Reuters Headline --
By Lucia Mutikani
WASHINGTON, Thu May 8, 2014, 11:23am EDT
Submitted by Old and Gray on Wed, 05/07/2014 - 12:25
The Fed is not yet finished polishing its image and exerting its influence on the shaky recovery from the 2007 crisis. O&G expressed an opinion of the reason why it seems so inept in dealing with the unraveling system which with yet another year about to be added to its efforts still appears to be without a sound policy.
The times that try men's souls. . .
Consumer confidence is above expectations: 83.0 expected, 84.1 delivered. Yet, Ford and Amazon performance is below expectations; Ukraine situation still teetering between two unknowns; new unemployment enrollees up more than anticipated by approximately 4% last month; the world still swimming in doubt; and, US markets opening strongly down; bouncing, yet still three digits off early afternoon at an approximate 0.23% decline. (Dow ended the day off 0.85%; NASDAQ, -1.75%; S&P, -0.81%.)
Who's looking after the real world nowadays?
Not too long ago Greg Mankiw felt compelled to defend the extraction of money from circulating media out of proportion to benefits realized. The reference is to the increasing disparity between allocations to top level wealth and what remains to be divided between those occupying the real world.
First project post Veteran Lender's entry here, very a propos in view of the color of nearly every world market, and Bloomberg's menacing blood red futures.
Submitted by Veteran_Lender on Fri, 04/11/2014 - 06:31.