Morning Call [8:00am ET] A sharp -1.0% sell-off in the US Dollar this morning has the prices of most equities and commodities flying. Here we go again.
Word of the day: Bear Trap. Answers.com says it is “a false signal that the rising trend of a stock or index has reversed when it has not". Investopedia says “This can occur during a bear market reversal when short sellers believe the markets will sink back to its declining ways. If the market continues to rise, the short sellers get trapped and are forced to cover their positions at higher prices.”
I suppose this particular rally will collapse when financial industry lobbyists don’t get their every “i” dotted and “t” crossed as the lawmakers in Washington attempt to merge House and Senate bills into a single piece of banking reform legislation.
Say it isn’t so, but, according to AP this morning, the facts are that “at least 56 industry lobbyists have served on the personal staffs of the 43 Senate and House members who will shape the legislation over the next two weeks”. Will the public really get what is needed?
In any case, the Nikkei 225 closed up +1.80% today and the European exchanges are about +1.0% higher at this point. The Euro future is up +1.02% to 1.2253. Market technicians are looking to the S&P at 1100 and DJIA at 10300, from the futures at 1093.5 and 10207 at present, as being the next line in the sand. After that, they are pointing us south.
Have a great day.
CTA Trading Desk Post-Close Report
Strength in the Euro (FXE+1.12%) propelled S&P futures higher in Globex trading Sunday evening, and continued the following morning as under-invested money managers were forced to chase performance, reaching for offers regardless of price. After a nearly +1.5% rally carried prices to the upper end of the trading range, and into the vicinity of the 200-day moving average, hot money took profits gradually pushing prices back into the overnight range. Selling grew more concentrated after Greek sovereign debt was downgraded, with prices eventually finishing the session slightly lower on the day (S&P-0.18%).
The S&P has now formed a box bordered roughly by 1040 and 1110, with 3 drives to the edges in each direction. Triple tops and triple bottoms rarely hold a fourth time, so the next penetration of either boundary should lead to a break out the prevailing swing.
Although the underlying fundamentals seem shaky at best, world governments need higher asset prices over the next few years as they attempt to “grow” their economies out of this debt problem. Forcing citizens out of the safety of savings accounts and into investments with potential greater returns is how we got into this mess in the first place, but this is the path leaders have again chosen to create an appearance of sustainable growth.
Understanding that the flood of fiscal stimulation can cause higher stock prices in the short term means traders have to put fundamentals on the back burner when making daily trading decisions. It means acknowledging government officials are willing to do everything in their power to move prices higher no matter what the long-term implications are for the western world.
Being open to seeing both sides of a trade means we can objectively assess price behavior and are able to formulate a game plan to trade profitably.
The rejection off the upper end of the box means motivated sellers are still waiting in the wings. If the S&P is able to rally over 1110, look for selling to reemerge at 1130. Any violation of the lower boundary at 1040 still carries ominous implications.
Have a great evening.
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Comments
WIR #24 Brilliant
I don't know how Bill does it. The amount of data & editorial work is just unbelievable.
There was a reference to one of the comments last week concerning debt that deserves another look:
Also helping out in the blog this week was Davefairtex who advanced a thesis that you know I have bought into. See blog (#64221):
Lastly, I think there will come a time when the focus of sovereign debt issues comes to the United States. Right now we're spending like drunken sailors and that's kept the double dip away for longer than in Europe. According to Consumer Metrics, we will drop back into recession. Once that happens, we will no longer be winning the less ugly contest, and at that point I believe the long dollar trade will reverse. The Fed will likely print money as a response, and money will race back into euros.
All I can add is the old saying that drunken sailors eventually run out of money. The U.S. doesn't.
There was a excellent article in yesterday's Dallas Morning News concerning debt & some individual experiences that are well worth the time to read if you have a few minutes:
http://www.dallasnews.com/sharedcontent/dws/bus/st...
Happy Monday!
Cara 100 Ratings Changes
Good morning.
CCL - Carnival initiated with a Buy at Lazard Capital. Target $48
RCL - Royal Caribbean initiated with a Buy at Lazard Capital. Target $38
Gulf cleanup companies
Last night on Huckabee there were several demonstrations of products which could be used to clean up the Gulf. As far as I could tell each is a private company and probably not listed on any market. All were harmless to wildlife and demonstrations showed feathers being immediately cleaned by the products. None is in use yet.
(Baz, Thanks for the CLH reminder.)
There were impressive results from each although obviously on a very small scale. There is over a million tons of one item available right now. The most impressive was an EPS approved mat made of human hair which can absorb oil quickly, be wrung out and reused many times — actually saving the oil as well as the environment, so it could pay for itself at least to some degree.
The examples of government bureaucratic delays were many, including the refusal to use a large stack of pantyhose stuffed with human hair given by hairdressers in (I believe) California. It seems there was "no EPA approval rating". So how bad could it have been to try it?
An on camera interview with the fire chief of an Alabama town on the coast was outstanding. After being turned down by state and federal officials when he asked for immediate aid, he called a town meeting and decided to engage in a bit of DIY emergency action.
They butted a series of barges end to end to act as a break water and began their own cleanup. The barges calmed the waters and they kept their shore protected while others have been devastated.
Good old American initiative and ingenuity at its best. We don't need government help — we need it to get out of the way!
It's not on Huckabee's website yet, but I will continue to check.
http://www.foxnews.com/huckabee/index.html
----------
To catch a thief?
“...at least 56 industry lobbyists have served on the personal staffs of the 43 Senate and House members who will shape the legislation over the next two weeks”.
I guess they operate under the belief that the way to beat the Mafia is to hire a thief to catch a thief.
Don't I wish?
Put this on a "post-it" note by your monitor.
Been watching a trader who does extensive work with price and time patterns using fibonacci timing calculations. He was correct with his call of the May 25th low [was off by 0.26pt] and the May 26th high in advance. For some time now he has been calling for a turning point on the 14th but until the 7th wasn't sure which way. He has made the following call.
"the 34th day is on Monday Jun 14, also the 89th fibo hour [14:15] is on Jun 14. we might have a little unfinished business in terms of time. upside is a little above 1100, i guess 1101. the next turn day is 55th on Jul 13, should be a substantial low, my target is spx 820"
Also I been following a technique called T-bar which uses cycles to form a T shape on the price charts that predicts the time of a turning point for that index or stock. A significant turning point has been predicted for sometime now for June 14th @ 11:00. The T-bar time predictions tend to be off a little bit on the time either by a few mins or even an hour maybe 2.
Anyhooooo.... something to watch for today. We will know either way by EOD if they were right.
" Paranoia
is oftentimes nothing more than heightened awareness "...
Re: Gulf cleanup companies
you might appreciate this invention from a most unlikely source.
http://motherjones.com/blue-marble/2010/06/how-doe...
Chin up loannetter, making a buck can be done equitably.
Cara 100 Update
GOOG - PT Lowered from $565 to $560 @ Caris & Co. Average rating.
Re: WIR #24 Brilliant
"All I can add is the old saying that drunken sailors eventually run out of money. The U.S. doesn't."
The funny thing is when I wrote that, I was conscious of all the sailors I happen to know (drunken and otherwise) and I silently apologized to them for maligning them. :)
C T
Seems like he wants to be right either way.
Bear Trap Recovery?
By Colin Twiggs
June 14, 2010 3:30 a.m. ET (5:30 p.m. AET)
These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.
A number of major markets, including the Nikkei 225 and Shanghai Composite, have indicated the start of a primary down-trend, but there are now signs of a widespread resurgence, with bullish divergence on Twiggs Money Flow (13-week) warning of a bear trap.
USA
Dow Jones Industrial Average
The Dow recovered above its declining trendline, while Twiggs Money Flow (13-week) displays a bullish divergence. Breakout above 10300 would indicate a bear trap.
Re: C T
Colin will always point out the "what if then scenarios". He gives you the criteria to look for both bearish and bullish directions. As we all know the market will go where it will go and turn on a dime if it wants to. You just need to be ready to change your strategy when it does.
run em up run em down
Perhaps HBB is running the usual scenerio.
Run the stocks down last week to botttom of trading range.
Beggining of this week run them up.
Later in week stocks end up up in middle of trading range so most options expire worthless.
Cara 100 Update (Final)
GOOG - estimates, target cut at Citigroup. Shares of GOOG now seen reaching $630. Estimates also lowered, given currency changes. Buy rating.
T.I.P has company
In addition to Thailand, Indonesia and the Philippines being
up on the year. Malaysa turned green and most notable:
Germany XETRA DAX 5957.4 5938.9 6047.8 1.8% 1.5%
up 1.5% for 2010.
Re: Gulf cleanup companies
Interesting — thanks.
Nokia: Conditions Worsening
from Barrons:
http://tinyurl.com/2863wxh
The Russians Blew It
Knock down the Kyber pass, they got the gold in Afgahnistan, wait till they find the oil. It seems the local geologists saved reports from the Russians, they left them behind in their hasty retreat. Someday the US embassy will be bigger there than in Iraq. All we have to do as good citizens is fund a bailout for the cleanup of the gulf, support a three pronged war front, let the chinese keep buying our bonds, and let the lobbyists look out for our interests. That is a good fundimental view for a long term bull market, oh yea, know anybody hiring? I hear truck driving is good, I got a buddy making $0.43 per mile, this weekend, he had a pick up on friday to drop off on Sunday evening, total mileage, 46 miles, he's makin money. His company started off the year with 52 trucks and trailers setting vacant in the yard, now there are over 200. That is just one of their yards, they have five he tells me. But, the vice pres's and chief officers haven't taken any cuts in their wages and bonus packages. Imagine that. Is this the bottom for the transports? I am long the casino's, that it where the truck drivers spend their time.
Re: Nokia: Conditions Worsening
Good find. Thanks.
Re: Put this on a "post-it" note by your monitor.
Now at the area highlighted by trader you referred... have the post-it hanging in view. Not trading on the info... just curious if it works this time around.
SPY
Appears to be a breakaway gap not yet confirmed by volume.
Buyers - Caveat Emptor
1 month, 3 month, 6 month T-Bill yields in freefall while equities rise. This doesn't paint a picture of Risk ON 100%. This smells Bull Trap. Will happily concede if these yields resume rising... If VIX begins rising while equities rise - watch out below.
Best guess - money being parked for a reason. That reason could be imminent market correction or waiting until 1110 busted and market resumes climb.
Shorting SPX via - long ES put options.
Re: Buyers - Caveat Emptor
Released on 6/14/2010 11:30:00 AM For 6/14/2010 11:30:00 AM
Auction Results
6-Month Bill Treasury Rate 0.150%
Bid/Cover 4.25
Total Amount $27 B
Gold
Is it a short term double top on GLD?
St. Louis Fed President Bullard - Tokyo speech 6-14
"I expect the U.S. recovery in GDP to be complete in the third quarter of this year."
Exerpt from 5 page transcript:
http://research.stlouisfed.org/econ/bullard/Bullar...
Update to SPY formation
In http://caracommunity.com/content/bill-cara%E2%80%9... we spoke about signal for reversal according to attached chart. Most of conditions for that reversal are met: descending triangle is effectively ruined, horizontal resistance at 110 is broken. Successful re-test of it is all that is left to confirm the bull likely being in charge again
Re: Put this on a "post-it" note by your monitor.
Good idea Scott...for amusement only... But I have to admit I have made trading decisions [shorting]in the past on the T-bar calls and have done well. Here is a copy of the last T-bar chart I have. I saw it posted sometime on the 11th. As you know by now, at 11:20 today the SPX hit a high and began selling off. The T-bar chart had a turning point marked at 11:00. Not bad..uh?
I'm anxious to see if the 2:15 call will unfold.
MOODYS DOWNGRADES GREECE
1:07:35 PM
*MOODYS DOWNGRADES GREECE GOVT BOND RATINGS FOUR NOTCHES TO BA1 FROM A3; NOW JUNK STATUS
- Moody's: "The Ba1 rating reflects our analysis of the balance of the strengths and risks associated with the Eurozone/IMF support package. The package effectively eliminates any near-term risk of a liquidity-driven default and encourages the implementation of a credible, feasible, and incentive-compatible set of structural reforms, which have a high likelihood of stabilizing debt service requirements at manageable levels,"
- The rating agency's base-case scenario envisions Greece implementing the policy changes it needs to stabilise its debt-to-GDP ratio at around 150% by 2013, and reduce its debt burden, defined as the interest payment/revenues ratio, gradually thereafter (expected at 20% in 2014).
Note:
- Fitch currently rates Greece at BBB- (lowest level of investment grade)
- S&P currently rates Greece at BB+
- Reminder: On 5/10 Moody's commented that its next downgrade of Greece was likely to be substantial, and could be cut to junk
Re: MOODYS DOWNGRADES GREECE
Vad, any symbols come to mind as to viewing the reaction. I see NBG but
there must be bettet ones?
Re: Put this on a "post-it" note by your monitor.
Scott [FYI]
Re: MOODYS DOWNGRADES GREECE
I have to say, reaction is interestingly mute. Remember Spain downgrade? You could short practically anything (well, aside of short ETFs of course, LOL), and come out a winner. This downgrade is being largely ignored. FAS dropped lousy 20 cents and fully recovered; WFC dropped 10 cents and fully recovered. Doesn't look like it's going to have much effect - either market fully expected this or Greece situation is not about bond ratings anymore since it's not expected to be financed via bond sales for the time being...
Re: MOODYS DOWNGRADES GREECE
Everyone's at lunch right now, unless they think lunch is for wimps. This downgrade sets up QT's afternoon 'fibo hour':
"the 34th day is on Monday Jun 14, also the 89th fibo hour [14:15] is on Jun 14. we might have a little unfinished business in terms of time. upside is a little above 1100, i guess 1101. the next turn day is 55th on Jul 13, should be a substantial low, my target is spx 820"
We'll see...
BP Goes To Washington
Quoting WSJ today:
In a letter sent Monday to BP Chief Executive Tony Hayward, the Democratic leaders of the House Energy and Commerce Committee say that in the days and hours leading up the April 20 explosion, BP appears "to have made multiple decisions for economic reasons that increased the danger of a catastrophic well failure." The letter, written by committee Chairman Henry Waxman and oversight subcommittee Chairman Bart Stupak, advises the Mr. Hayward to bring other officials and technical experts to answer an array of pointed questions under oath about specifics of the well's design, safety measures, and operations on the Deepwater Horizon rig. The letter cites evidence that "at the time of the blowout, the Macondo well was significantly behind schedule" and says those delays appear "to have created pressure to take shortcuts to speed finishing the well." An email message sent between two BP engineers six days before the explosion in which one drilling engineer calls the project a "nightmare well which has everyone all over the place."
Re: BP Goes To Washington
Goldman Sachs and BP chief Tony Hayward sold shares weeks before oil spill.
http://www.theworldsprophecy.com/goldman-sachs-and...
Out of long position
Exit long position in BYD, $0.28 on 600 shares. Card player, not a gambler.
Is it only the polite company speaking of the bear?
Re: MOODYS DOWNGRADES GREECE
Greece old news already? Same way Dubai just disappeared? Wonder what it's going to take to end this silliness. Will it the the last grain of sand that tips the pile, or some major financial catastrophe...
Re: BP Goes To Washington
I felt in my gut something like this happened. I've also heard rumors that should BP survive, they have another GOM prospect that is truly an "elephant discovery" that will allow them to pay off all claims many times over. That's a little hard to believe. Maybe we'll find out if they survive.
Re: Update to SPY formation
Market still feels a bit schizophrenic to me. XLU is high on the watchlist, which is not a sign to me that we're in rally mode. Most of the big moves for the past week have been oil/services related, along with solar stocks helped by the euro's move.
I think we need a bit more time to see which way things will go. The failed test today of the 200 DMA isn't super bullish to me. A close above 1108 would help sway me the other way.
Re: BP Goes To Washington
Bill, the unknowns of these deep, deep drillings are hard to comprehend... One more blowout and all bets are off.....
Its all a crapshoot on BP
but if they can avoid BK and cut the dividend, then it is possible, maybe not probable, But possible, the equity price could kiss $ 23.00... This could be made possible on a huge melt-down, something on the order of a 500 million share day.. I was thinking $ 26 ( 10% off $ 29 low, so far )... the 20 year shows a decent match, dip & fill, from the two areas at the $ 23 mark...
Re: Put this on a "post-it" note by your monitor.
There are some serious leading negative divergences forming. By the looks of the candle formation, something like a shooting star reversal could form. At this point, bears may have an edge.
Seems like FRPT would be a good fit for ' someone '
heavily involved in ' capitalistic growth ' in Afghanistan....
" Ron Paul doesn't even have a basic understanding of
fundamental economics ".... another, just-now, famous CNBC quote to be framed...
sorry, meant to credit the astute Ron Insana.....
:)
Re: Update to SPY formation
Vad - It all depends on the time period you're looking at. I would wait a few days to say that the descending triangle is ruined. We have seen plenty of breaks that are headfakes, in both directions.
Re: Update to SPY formation
Might be best to close the .02 gap from Friday's high vs today's low first.
Re: Update to SPY formation
Take a look at the attached chart - as soon as price moved above the descending line, it IS ruined as a chart formation. If you mean that downward bias is not ruined - sure; violation of that triangle doesn't mean the direction is clearly defined - it simply means that to structure one's actions one needs some other indication.
Re: " Ron Paul doesn't even have a basic understanding of
Words can not descript my anger.
Re: Update to SPY formation
I think part of the problem with extremely short term trading is that breaks like these are oftentimes headfakes. Too many people are watching the same levels. I'd rather look at a longer term time frame and say...what are the closing prices on a daily/weekly/even monthly basis and can we build trendlines off of those?
Today's action is pretty clear to me that there is a heavy top at the 200 DMA. My long term trading tells me that we need to be bearish / in cash when the S&P closes at least 3% below the 200 DMA and bullish when it closes at least 3% above the 200 DMA. We're in the former camp right now until it closes 3% above.
Re: Update to SPY formation
I'd suggest keeping responses in comparable context so that discussion makes sense. My chart is daily, and read provided to it is based on daily chart - not monthly, not weekly. If different time frame provides different directional read - it is simply different time frame, they contradict each other constantly. Great as an addition, but one time frame does not negate the other - as long as one keeps his trade in the same time frame as his read. Nor there is better or worse time frame - each trader picks the pond to swim.
Also, speaking of the next direction - notice that my last condition for reversal to bullish read has not been met still. Re-test of 110 was not successful so far, support didn't hold. So, until that happens, it's still bear.
TED Spread
I know a lot of bears are talking about the TED spread widening considerably, but we have to look at the levels at which it is currently at. Unless it gets above the high 60s I don't think it's a cause for concern yet. During the period of tranquility in the 2000's, the spread was right around where it currently is.
FD:
I'm currently about 30% long and 70% short, but I'm not pinning my investment strategy on this metric.
Re: Update to SPY formation
Absolutely. I think we're saying the same thing. I have just found it easier/less stressful to look at longer term time frames and remind myself over and over to pay attention to those time frames while in a trade. Its so easy to get headfaked out of a position if I pay attention to shorter time frames rather than longer ones if I had originally entered a position based on a longer term trend playing out.
Re: Put this on a "post-it" note by your monitor.
A follow up on the trader who made the 2:15 call today...
~~~~~~~
"please remember, what i am proposing here:
1). today's high(whatever that is) would be the top for one whole month, potentially for the rest of the year.
2). after today, any day in one month, if we see any higher price than today's, that means i am wrong, and should stop out and re-consider.
3). if true, the risk reward ratio is near excellent. and probably means any entry today would be good. "
~~~~~~~~~
Also found this which maybe of interest to some of you, especially in light of the downgrading of Greece today.
http://tinyurl.com/2f74nvz
Re: Put this on a "post-it" note by your monitor.
Cool. I should use that for my trading. Simply say "If I'm right, my entry is good."
Re: Put this on a "post-it" note by your monitor.
LOL.... He is from China so his English is some what limited but he is a very intelligent individual. But I'm glad it works for you Olaf. Now you can bank some serious coin from here on out.
Re: Put this on a "post-it" note by your monitor.
I'm from Germany, so my English is also somewhat limited. I'm currently back-testing his strategy by filtering out only those entries when I was right. Looks very promising ...
Hywel Jones remembered
This weekend, The Bahamas Association of Athletic Associations Hywel Jones National Junior Championships produced 13 qualifiers for the World Junior Championships and 39 qualifiers for the CAC Junior Championships.
Bordeaux 2009
Futures apparently out of control. Good for the inventury, bad for adding to current positions ...
http://bit.ly/bQhezn
New UBS Research on Gold
Thorough and informative stuff from the Swiss.
http://www.lemetropolecafe.com/img2010/Midas/goldr...
Cheers.
Meltup Update
For those of you who enjoyed the Meltup video, a Meltup Update Video has been released. It covers events that have happened since the original video was made public.
http://tinyurl.com/c2m34v
Running time 6:54
-----------
From Zacks TV - Stock Picks of the Week:
JOYG
DLTR
CLH
Re: New UBS Research on Gold
That's a keeper, Doc.
Thanks,
BH
Section 5 on page 2 is interesting.....
... http://www.marketwatch.com/story/what-obama-wont-t...
Re: Bordeaux 2009
yes 2005 and 2009 are millesimes des reference for Bordeaux. I have been happy to purchase what 2005 is available when the shop offers its 20% discount. My thoughts had once turned to buying the odd quality box of 12, but a friend from Geneva assures me that no one with money will think to buy wine from just any old person. I am left with the impression it is a closed club. I am nonetheless prepared to enjoy the pleasures myself.
2009 put away for 10-15 years could well provide a nice return for those in the know as the next cycle of economic growth begins.
Re: WIR #24 Brilliant
ALOHA!!
I love to see GROUND REPORTS, especially ones about debt. I don't care who's debt it is. It could be Obama's, the US Treasury's, ordinary city folk, country folk or PIIGS. No matter, because somehow "debt" and how it is viewed is as diverse as interpreting the Bible. Some people look at debt as pure evil and some see it as their savior.
I want to pick certain statements from that Dallas Morning News article, because I think it generally represents the diverse views of government and personal debt in America today.
LINK: http://www.dallasnews.com/sharedcontent/dws/bus/st...
First off is the lack of "solvent asset-based money" has nothing to do with our debt-based money as today our US Dollar is nothing more than a "debt derivative". USD=DEBT Its all "liabilities" and no "assets".
A lifelong Democrat makes this comment ...
"I believe in reaching out and helping others," she said. "Those people who earn more – they ought to pay more."
That's a given. Who doesn't believe in a helping hand? But there is a difference between a "temporary" helping hand and a permanent welfare crutch!
This Democrat is a good example of the public school education in action! This lifelong Democrat, just like lifelong Republicans, are products of brainwashing. Being "lifelong" anything is just plain dangerous. Just ask Darwin ...
Generally speaking if you earn more you take on more risk. At some point the risk is not worth the tax burden. There has never been any proof that paying more taxes leads to more solvency and more fiscal strength. If that were the case then NY and CA, two of the most heavily taxed States in America would be solvent today. Instead they are asking for bailouts.
I am a perfect example of what happens when high net worth individuals feel they are getting taxed too much. We quit and we move! We quit being productive by reducing our output. My company in California went from having a payroll of 40 to having a payroll of 5. Why? Because the tax burden from producing more was not worth the effort I as a business owner wanted to risk. You have to remember that most people who are high income producers take on more risk as either owners or managers. If taxes are raised too high then the incentive to take on more risk evaporates rapidly. That is exactly why we cut our payroll down. Then as I saw the writing on the wall I just gave up and sold out and pursued a less "risk intensive" business and focused on cutting debt and managing future tax liabilities as I neared retirement age. I moved out of California in favor of a less tax focused state.
As it is I have substituted producing a product that the masses can use(schools, VOiP and prisons) for producing no product at all. I just gamble in the money and stock markets. I employ no employees and produce nothing but net long term profits which are taxed much less than when I was producing schools! Its kind of like "welfare" as I have no incentive to produce anything useful to society. In that sense I am just like Congress, I produce nothing, I only take. Well, I do produce flowers, which is way more than Congress does!
Then the author steps in here to publish yet another fallacy ...
Politicians aren't known for misreading the electorate; if voters wanted sacrifice, they would get it. So for anyone frustrated with the paralysis in Washington, a glance in the mirror might help explain it.
I would say 99.9% of Americans and their values have not been represented in Washington DC simply because Washington DC has shown that it is incapable and inept at carrying out even the simplest directive from voters. Who voted for more hunger in America? Yet now we have more hunger in America than ever before with 40.5 million Americans on food stamps, 13% of the population. In 1970 those on food stamps made up only 3% of the total population.
Who voted for our money to buy half as much as it did in 1980? Who voted to go off the gold standard?
Who voted to bailout banks and unions? Put simply these massive bailouts were never put up for vote by the American public, when in fact they should have been. Polls showed most Americans would have preferred the banks that were insolvent to go BK and let GM and AIG go BK ...
"I don't feel as a country we do enough to help our elderly," Meochia Watkins said.
Please look at any US Treasury statement and the two biggest line items, where Americans put most of our hard-earned paychecks are into Social Security and Medicare ... that is the elderly. Now had this person said that "I don't feel the DEMS and REPS should be borrowing from Trust Funds" then there is no doubt seniors would not be as bad off today.
The biggest LIABILITY to America is the fact that we elect a monopoly to back our money and run our country. Clearly the biggest liability America has is its leadership.
"You're finally going to say to hell with it," Fulton said. "We're saying to hell with the government, because they want to waste money. Doggone it, it's frustrating. I love the country and I hate to see it. I hate to see our irresponsibility."
If there is severe fiscal insanity in America, which there is, then it comes from a severely dysfunctional monetary system. It is that simple. You cannot trust the "human condition" ... the ego ... to be responsible and adhere to fiscal restraint when it is handed a blank check. Get rid of the blank check and the human condition is taken out of the equation and a meaningful long term store of value can be reinstated monetarily. One that rewards savers and not debtors. We have spent 100 years voting this two party monopoly into power so that they will do the "right thing". It has not worked.
The author publishes a completely false statement ...
Last year, 11.1 percent of Americans' personal income went to taxes – the least since 1950 and well below the peak of 18.6 percent a decade ago.
Does that 11.1% include excise taxes, property taxes, sales taxes, payroll taxes? According to the TAX FOUNDATION Americans spent more on taxes than food, clothing and shelter combined in tax year 2009. The author never defines this 11.1%.
Yet for the last two years, a majority called their own tax burden "about right."
Perhaps this is because the top 20% of income earners pay 95% of taxes.
"People are suffering, and people need work. You have to circulate money to make money," she said.
The true problem is too much money has been circulated for far too long. Here we have the typical reply for those in debt ... inflate. This is unfortunately the condition of America when government is employed instead of its citizens.
She retired last year and works part time at Cedar Hill Community College to supplement her $1,069 monthly Social Security payments – a sum so modest, she considers it wrong to cut payments for future retirees or to make them wait longer to collect. "How would you like to live on that?" she said.
When a monopoly exists competition and competence are lost. We have had two monopolies for nearly 100 years. One is a money monopoly and the other a political monopoly. This lady suffers because her money buys less which is caused by government spending more by utilizing a flawed monetary system.
... In a Republican congressional district represented by Rep. Kenny Marchant of Coppell – computer consultant Steve Agee blames a general culture of overspending. He's dubious that health care and Social Security, let alone Iraq and Afghanistan, are the main debt culprits.
"To some degree, the war has given everybody a little bit of an excuse," he said. Still, "I don't lose sleep over it. Maybe because it's so big. Trillions of dollars is way beyond comprehension."
He never puts two and two together to understand how it is our government can spend trillions? What monetary mechanism allows this to happen? Yet the only Presidential Candidate who offered a monetary based CHANGE was barely allowed to debate Obama and McCain.
"We've got to have a good balance, looking at things from a social perspective and from a business perspective," Agee said.
No we don't! That says nothing except to insult my intelligence. When have we ever had that in Congress? In reality all we have ever had is two sides of the isle and lobbyist writing laws. We need a new monetary system and a new political system that allows only "people to run for office instead of well lobbied monopolies"!
"The premise I'd like to see tested," said Bixby, of the Concord Coalition, "is whether you have to pander to the public. Maybe you do. If that's the case, we're never going to fix the problem."
This guy needs to replace the word "pander" with the word "lie" ... It would be more accurate. Naturally any politician is only an expert at one thing ... getting elected. Its been a 100 year Darwinian model of survival of the most dishonest! Where is the pander in that? If anything gets "pandered" to in Washington DC it is the special interest groups and unions. The US TAXPAYER is not represented in Washington DC at all. All we are is a receptacle for unending Congressional debt.