Gary North, link -- trotsky, 12:52:34 11/09/06 Thu
forgot the link, here it is:
lewrockwell.com
@Gary North on Susan Bies -- trotsky, 12:49:16 11/09/06 Thu
"The thought that this verbally dull, uninformative, cost-push economist is in charge of establishing monetary policy for 300 million Americans is unnerving."
you can say that again, and this is actually putting it mildly.
"Let us hope that she really doesn’t speak for her colleagues. If she does, then they are equally uninformed regarding economic theory."
i believe this hope can be abandoned right here without further ado. listen to what they say in their public appearances - they are to a man Keynesians with a remarkably weak grasp of even the most basic economic concepts. in fact it is no exaggeration to state that the man chairing this august body of bureaucrats is a downright economic crank.
so, no hope there. if it helps to calm you down, pray a bit maybe, but it won't help either. this bunch is beyond redemption.
@PoG -- trotsky, 11:53:10 11/09/06 Thu
looks like the buy stops just above the recent interim high have been triggered.
@CDE -- trotsky, 11:32:40 11/09/06 Thu
this one remains on delta-hedging squeeze alert. the $5 strike is the one where most of the call OI is concentrated, so a fair bit of covering is probably being set in motion by breaching it. other stocks in the vincinity of important call strikes: HMY (15 strike), GFI (17.5 strike), GG (27.5 strike).
approaching important strikes: AEM (40), KGC (12.5).
@sentiment update -- trotsky, 11:22:22 11/09/06 Thu
money flows into the Rydex pm fund have strenghtened markedly in recent weeks, and at 195 the cumulative cash flow ratio is now 20 points above the May 2005 low. this denotes an unwinding of the previous pessimism is in progress, a necessary ingredient for every rally.
meanwhile in the XAU options, put activity continues to dominate. for instance, yesterday's volume put/call ratio was a rather stunning 3.11, as approx. 6,100 puts were traded vs. approx. 1,900 calls. the p/c OI ratio clocks in at 1.21, which is comfortably in bullish territory (121 puts open for every 100 calls in the three front months).
@humorous barb by Sinclair -- trotsky, 11:14:43 11/09/06 Thu
"Dear Jim,
Now that the election is over what area of manufacturing to you believe will benefit the most?
Yours,
Green Hornet
Dear Green Hornet,
That is simple: Shredders.
Regards,
Jim"
@the immorality of the welfare state on stark display -- trotsky, 10:34:41 11/09/06 Thu
"Welcome to the Golden Age of Public Finance.
That's the message voters sent to the municipal market yesterday, as they approved the majority of the record $78.6 billion in bonds placed on the ballot this year."
"The election of 2006 marks a watershed for the municipal market. Never before have voters had to consider so many bond issues. Never before had they approved so many."
"The people who approved these bond issues, most of them, I'd bet, grew up in the 1970s.
What does that have to do with it? These are people who are used to having nice things.
By comparison, those who grew up in the Great Depression and the 1940s were used to making do. They were suspicious of government, and of debt."
the ME, ME, ME generation that always wants something for nothing at work in short. of course the State will have to steal the money from someone, somehow. it will either have to tax, to borrow, or both. SOMEONE will pay. the borrowings will be partly 'paid' for via inflation, which is nothing but a hidden tax (which incidentally hits the poorest members of society MOST - the rich plutocracy just loves inflation, since it means the poor are paying their taxes).
i'm always surprised that Hornberger, Rockwell et al. remain so optimistic that the people of America will one day find their way back to the principles of liberty that attended the nation's founding. this election tells me the opposite is true - they seem to be in love with socialism. none are so enslaved as those who falsely believe themselves to be free.
bloomberg.com
@a beautiful chart -- trotsky, 10:19:02 11/09/06 Thu
this is a junior gold miner i have mentioned here in the past - it has also broken out, BLRV:
stockcharts.com
@trade deficit contracts sharply -- trotsky, 10:10:19 11/09/06 Thu
the trade deficit plunged by 6.8% - which incidentally is the biggest monthly decline since February of 2001.
everybody on Wall Street - really EVERYBODY - will tell you that's bullish, but the truth is, it's just the opposite.
a falling trade deficit is always associated with a weakening economy and a worsening of the social mood (it falls because people spend less, and people spend less because they don't feel optimistic).
in other words, if this is the beginning of a trend, it will be very bearish for the broader stock market. note also, that the trade deficit is indirectly a source of market liquidity. the bigger the dollar based earnings of the world's exporters, the more money flows back into dollar denominated financial instruments. so a shrinking deficit is a sort of double whammy actually as far as the stock market is concerned. |
