By John Galt September 4, 2011 – 21:45 ET Honestly I thought we might see a bit more of a violent reaction to Friday’s trading and technical breakdown of our markets but it has yet to materialize. If the world is stupid enough to be waiting on a pre-game speech from The Regime for guidance, than the world is going to be sorely disappointed. The bigger problems (yes, bigger than unemployment) have always been in the financial system in Europe and the U.S. If there…
By John Galt August 31, 2011 – 07:50 ET While Americans in the Northeast stripped the shelves bare thinking that grocery stores magically reproduce fresh stock at will, the future crisis building up worldwide regarding a potential rice shortage continues. With China experiencing major problems due to weather, Japanese rice contaminated with radiation from Fukushima, and South Korea reporting a sharp decline in production the other day, now flooding is threating the Mekong Delta region of Vietnam where a record crop was projected. From China…
By John Galt August 31, 2011 – 07:35 ET To read the column in full from this morning’s print edition of the UK Telegraph, click on the title below: Double-dip fears across the West as confidence crumbles
By John Galt August 31, 2011 – 07:05 ET Yesterday the Case-Shiller indices were updated by Standard & Poor’s (Click here to read full report) and the bottom line without much drama is simple: Year over year the 20 city composite was down 4.5% year over year (seasonally adjusted) and 4.9% (NSA) Month over month the composite was down 0.1% (SA) and basically unchanged month over month. The five city condo index improved in Boston, Chicago, and New York where areas of high government spending…
By John Galt August 30, 2011 – 18:05 ET This little gem of a story from Business Day, a South African financial news publication should be another warning to the sleeping morons in D.C. and Wall Street: Renminbi may replace dollar in Sino-African trade While the Bernank and the Bammer have been out beating their chests about the “world’s reserve currency” the nation of Communist China has been quietly setting up international trade agreements with nations who have crucial supplies of raw materials and strategic…
By John Galt August 30, 2011 – 05:25 ET Analysts had projected some relief in the European financial system and the Italian markets after today’s bond auctions in Rome, but so much for that: As soon as the results came in, with a higher yield I might add, the FTSE-MIB stock index plunged -109 points after trading modestly higher most of the morning. The snapshot above is only the latest indication that the markets are still roiled over the PIIGS problems and with what is…
By John Galt August 29, 2011 – 18:28 ET Oh man, oh man, oh man. Thank you Yves Smith for capturing this one: FDIC Objects to $8.5 Billion BofA Settlement (Updated) Click on the link to read the FDIC document and the bloodshed. Thank you Yves at Naked Capitalism. Wow, this is a fun one to read because the truth is sadistically painful and enjoyable.
By John Galt August 29, 2011 – 11:30 ET From CoinWorld.com (click on title read full article): Liberty Dollars may be subject to seizure Federal officials call medallic pieces ‘contraband’ from the article: Liberty Dollars held by collectors may be subject to seizure as contraband by federal law enforcement, officials with the U.S. Attorney’s Office and Secret Service said Aug. 24. Statements by officials for those two federal law enforcement agencies seem to reverse the position taken in comments released from the United States Attorney’s…
By John Galt August 29, 2011 – 10:45 ET The outlook from the Dallas Federal Reserve Bank report on manufacturing has gone from bad to worse in the August survey. The general business activity index remained negative for the fourth month in a row and fell from –2 to –11.4 and indications within the survey tend to signal further declines in the immediate future. The index overall has reached the flat line which in and of itself is a bad indicator for the nation: This…
By John Galt August 29, 2011 – 10:20 ET The latest report from the National Association of Realtors indicates the end of the cash for clunkers housing stimulus was probably the last peak in activity we will see for quite some time. The amount is higher than last July’s low reading, which is the highlight the NAR will continue to point towards but the reality is that this is a long term trend line to the downside after the failed Obama housing stimulus program which…
By John Galt August 29, 2011 – 09:55 ET The breaking news of the morning is that Bank of America, the institution whose CEO recently said on television that the company did not need to raise capital, has now raised another $8.3 billion which apparently it does not need by selling part of its stake in the China Construction Bank. This makes the one week take including Warren Buffett’s unnecessary investment a tad over $13.8 billion of fresh capital raised that they do not need.…
By John Galt August 28, 2011 – 23:10 ET From Reuters: Egypt reduces size of T-bill sale Sun Aug 28, 2011 11:49am GMT EXERPTED: The central bank sold 2 billion pounds of 91-day T-bills, the same amount it had offered, on behalf of the ministry. The average yield rose to 11.995 percent from 11.928 percent at last week’s auction. It sold only 2 billion pounds of 266-day T-bills, instead of the 3.5 billion pounds it had asked for. The average yield rose to 12.981 percent…
By John Galt August 28, 2011 – 22:45 ET From the South Korean news agency Yonhap August 29, 2011: S. Korea’s rice output to hit 10-year low this year SEOUL, Aug. 29 (Yonhap) — South Korea’s rice production is forecast to hit a 10-year low this year due to shrinking farm land and lower yields caused by unfavorable weather conditions, a state-run think tank said Monday. According to the Korea Rural Economic Institute, rice production is expected to reach 4.12-4.24 million tons this year, down…
By John Galt August 28, 2011 – 22:00 ET I for one, do not blame them in the least. Despite reports earlier tonight of two Greek banks merging to “strengthen” the system there, the fears of a potential Lehman Brothers style event are rampant among the insiders of the world financial elites. The nation of Hong Kong which suffered greatly during the Asian Tiger crisis of the 1990′s created a system where sensitivities to foreign bank issues and investment in region requires extra monitoring by…
By John Galt August 28, 2011 – 20:20 ET While America and the northeastern states are fascinated with a tropical storm that while tragic, was minimal in economic impact overall, one of the largest shipping companies in the world reported their H1 2011 earnings and it should give everyone a moment to reflect on the probability of a Q3 recession beginning in September of this year as I have postulated for months now. The report from the communist Chinese majority owned shipping corporation COSCO was…
By John Galt August 28, 2011 – 16:05 ET Enough Irene and back to the other storm, brewing quietly but stronger in Europe. Ambrose Evan-Pritchard points out in today’s commentary from the UK Telegraph the dangerous road Germany is traversing with the leadership of Angela Merkel hanging in the balance. It is a must read as it highlights the point I have been making of the nature that this coming September will be “different this time” as many major financial issues coalesce in one point…
By John Galt August 28, 2011 – 09:15 ET This is a very minimal tropical storm with little threat to life and limb thus this will be the only posting on this system. The Bermuda government has issued a tropical storm warning and that should be about the extent of the threat. The satellite photo’s below exhibit why this is such a minimal threat: NHC advisory #1 (only one I’ll be posting): 000 WTNT31 KNHC 281213 TCPAT1 BULLETIN TROPICAL STORM JOSE SPECIAL ADVISORY NUMBER 1…CORRECTED…
By John Galt August 28, 2011 – 09:11 ET I smell a whole lot of “I survived Hurricane Irene” with the New York City outline in the background t-shirts heading for the donation bin…. 0900 EDT update from the NHC: 000 WTNT64 KNHC 281302 TCUAT4 TROPICAL STORM IRENE TROPICAL CYCLONE UPDATE NWS NATIONAL HURRICANE CENTER MIAMI FL AL092011 900 AM EDT SUN AUG 28 2011 …CENTER OF IRENE MOVES OVER NEW YORK CITY… REPORTS FROM AN AIR FORCE HURRICANE HUNTER AIRCRAFT AND NATIONAL WEATHER SERVICE…
By John Galt August 27, 2011 – 16:30 ET As the mainstream media hypes up the nine now 6 foot storm surge of Hurricane Irene, a quick reminder: Katrina’s surge was: 29 FEET Thus I’m not going to get excited about this as the only problems this should cause will be from freak accidents or the cleansing of the gene pool as Darwin Award winners claim their prize. Hurricanes are survivable storms but for some reason people insist on ignoring the warnings or acting like…
By John Galt August 26, 2011 – 05:30 ET Just a quick note before the insanity begins. I think Q2 GDP revision will disappoint with a 0.9% figure and Bernanke will follow with a Lewinsky and no concrete action to give financial markets a reason to rally. With the short end of the yield curve already trading in negative territory, if there is not a confirmation of Operation Twist and some declaration of more easing, there will be a massive sell off this afternoon in…
By John Galt August 25, 2011 – 17:30 ET The annual story about the new words added to the lexicon of the English language has been presented to the public on a not so slow news day as per this Reuters story: US Merriam-Webster dictionary adds “tweet,” “bromance” Some of the clever words highlighted in the article include: “Tweet” “Bromance” “Crowdsourcing” “Parkour” “Boomerang child” While the list is extensive, I feel there are some clever words which are important to the English language that were…
By John Galt August 25, 2011 – 16:45 ET While the mainstream media focuses on the fictional reason for the ramp in seasonally adjusted unemployment claims caused in their words by “striking Verizon workers applying for unemployment benefits” (CBS Radio news at noon and 1 p.m. EDT), the reality is that the Labor Department’s computers are, as usual, suffering from a fritz created by a unicorn pooping skittles into it’s floppy disk slot. The chart for non-seasonally adjusted claims shows a different story yet I…
By John Galt August 24, 2011 – 22:30 ET Sorry to sound cruel to those who have endured or those about to be engulfed by this monster storm, but the question has to be asked. The storms of 2004-2005 were thought to be a major contributing factor to the ultimate decline and fall of the U.S. economy in 2007 as Federal government spending and waste went into overdrive after the 2004 Florida hurricane blitz with government stimulus to help our state recover then in 2005…
By John Galt August 24, 2011 – 18:40 ET Uh, all I have is a headline but I thought the “Apple” nuke test photo was appropriate. Can we say “short the QQQQ’s tomorrow” boys and girls? Wow. From the WSJ: Full release from Apple now available: PRESS RELEASE: Letter from Steve Jobs August 24, 2011–To the Apple Board of Directors and the Apple Community: I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s…
By John Galt August 24, 2011 – 18:30 ET I’m going to need more popcorn and beer for this fight, it’s getting good now. God I’m going to hate this if Twitter EVER goes to the Pay-Per-View concept…. And the bear with the Lion’s Heart replies: Follow me on Twitter as I follow both of them and enjoy the back and forth. Though I am biased and tend to support the guy who doesn’t act like a dirty old man at South Beach disco’s.
By John Galt August 25, 2011 – 16:30 ET Remember, gold is the adjustment for inflation; the chart for the DJIA in 1999 is not adjusted for inflation or “priced in 2005 dollars” as the BLS and BEA likes to game it. No other commentary is necessary other than my previous entry. (Click on the chart to enlarge/reduce) On August 25, 1999 the DJIA closed at 11,326.04. Today it closed at 11,320.71. I’m just sayin’. 3 weeks ago, gold was rallying above today’s levels. I’m…
By John Galt August 24, 2011 – 13:55 ET A little late posting this from the report this morning but I wanted to check some data and see if my hunch was correct. As usual, it was. Thankfully machinery and capital goods orders do look better but generally the headlines flashed across the screens this morning tell a tale of using month over month and year over year statistics to extract the most desirable headline. The trailing 6 month non-seasonally adjusted figure though shows a…
By John Galt August 24, 2011 – 13:30 ET The hottie doesn’t seem to concerned about her gold (yes, sex sells). Seriously, if you are freaking out, click on the banner above this article and sell Bobby all your precious metals so you don’t have to worry about the CNBS Fast Money team knocking on your front door and saying: Gold is selling off today and if anyone has been listening to my program, I’ve warned about $100 plus days swinging to the upside AND…
By John Galt August 24, 2011 – 08:55 ET Starting this month I shall be updating the series, sometimes with a special news entry when justified, but definitely in the Economic stats and data pages in the upper right hand corner of these pages. The latest sales figures reflect the depression in real estate continues with an average duration on the market for new homes still in excess of 6 months, this month at 9.4. Until the housing market recovers the American economy will flounder…
By John Galt August 24, 2011 – 07:35 ET Uh, recovery? Bueller? Anyone? From Reuters (click on headline to read full story): Mortgage purchase applications at 15-year low: MBA 7:13am EDT NEW YORK (Reuters) – Home mortgage applications for purchases fell to a nearly 15-year low last week as resurgent worries about the strength of the economy kept buyers at bay, an industry group said on Wednesday. Sadly the worries are not unfounded. But convincing the beanheads who actually believe the bovine scatology their bureaucratic…
By John Galt August 23, 2011 – 22:05 ET If you haven’t been following theses updates, I would suggest you start now as the FDIC is apparently starting a new “active” phase. Click on this link to review the latest charts and excellent work by this hard working contributor.
By John Galt August 22, 2011 – 21:35 ET Quadriplegic says violent neighbor assaulted him with fish: Vegans on the Red Planet? PETA says yes, please Kuwait denies “bad mouth smell” traffic ticket I report, you decide. God knows why I report this crap.
By John Galt August 22, 2011 – 16:25 ET Oh the temptations to add a lot of commentary to this but here is an excerpt from the Reuters story: Exclusive: Goldman CEO hires high-profile defense attorney 3:39pm EDT By Andrea Shalal-Esa WASHINGTON (Reuters) – Goldman Sachs Chief Executive Lloyd Blankfein has hired Reid Weingarten, a high-profile Washington defense attorney whose past clients include a former Enron accounting officer, according to a government source familiar with the matter. Blankfein, 56, is in his sixth year at…
By John Galt August 22, 2011 – 10:00 ET The charts that I have been maintaining for over a year now are available within the economic charts pages to the right for permanent review and of course, after the releases on these pages. Now that my schedule has gone from just madly insane to regular insane, these charts will be updated in a more timely manner. No commentary really is necessary because the Federal Reserve doesn’t eat, doesn’t drive or pay for their own gas…
By John Galt August 22, 2011 – 08:55 ET Yup, it would appear the rumors of QE∞ and the removal of the whacky Colonel from power in Libya will be enough to power the markets higher today. Expect thin volume all week until GS receives the leak as to if there will be another round of Bernanke money bombs dropped on the economy. Remember to watch the one stock that the Fed loves to flaunt in your face, Goldman Sachs, to see what happens. 109-110…
By John Galt August 22, 2011 – 08:34 ET The Chicago Federal Reserve Bank’s National Activity Index was released a few minutes ago and shows some improvement and avoided the dreaded decline to the -0.7 level which indicates a pending or current recession per most readings. With this good news, the markets should enjoy today’s Dead Dictator Bounce as I like to call it and rally off the recent lows on low volume. Here is the chart from the Chicago Fed and the entire report…
By John Galt August 21, 2011 – 20:05 ET I guess we can all stop worrying now, all hail the Bernank and other central banksters. From the UK Telegraph, Ambrose Evans-Pritchard’s latest column (click on the title to read in full): 8/22 AEP: Relax, central banks can still save us
By John Galt August 21, 2011 – 18:25 ET Lots of breaking news tonight so here is the summary from the BBC, Reuters and the UK Telegraph (Click on story titles to read in full): Libya live: Gaddafi’s regime ‘crumbling’ as rebels advance 23.12 Al Jazeera is now reporting that Gaddafi’s eldest son Mohammed has surrendered. 23.11 The Algerian Foreign Ministry is denying that Gaddafi is in its grounds. 23.01 Abdul Hakim, a Tripoli resident, has told the BBC that he is looking forward to…
By John Galt August 21, 2011 – 09:25 ET As I scan the Sunday morning papers, some stories stick out more than others. This is another in a long list of Bank of America customer service nightmare stories that stands out. From the August 20th U.K. Daily Mail (click on the title to read the article in full): Woman, 70, and terminally ill husband face losing their home for paying the mortgage too early It would be funny if this were not the only example…
By John Galt August 20, 2011 – 08:30 ET And the selling continues with the Saudi markets failing to hold the psychological level of 6000 and down 164.47 points as of this posting. The selling worldwid appears to be snowballing into a potentially ugly event Sunday night and Monday which will end up on America’s doorstep once again. (Chart from btflive.net) Update: Closed on the day -2.58%. Well below the magic 6000 level for investor confidence. Next up is a retest of the 5000 mark.
Recent Comments