Fed Humiliated With Red Close Despite Dovish FOMC And GDP Revision

July 31, 2013

A very volatile day in stocks ended with a violent high volume dump from post-FOMC highs on heavy MoC selling pressure that left the S&P and Dow with red closes. S&P futures still managed their best month since Oct 2011 - though unable yet again to capture the 1,700 flag. The size and scale of the ‘rotation’ into the close (and strength in bonds) leaves us wondering who is buying and who is selling. For some context, post-FOMC, S&P -4pts, 10Y -8bps, Gold +$10, USD -0.15%; so it seems bonds benefited the most and stocks seem to be crying out for moar. The Dow has now closed red for 3 days-in-a-row – the worst streak in seven weeks.

How long do you think print, print print will work before peopl figure out the phony numbers are just to distract the unwary?

Markets are going sideways … with a down trending.


SHILLER: ‘We’re Living In A Totally Artificial Real Estate Economy’

March 27, 2013

“One thing that makes it very hard to forecast home prices right now is that we’re living in a totally artificial real estate economy,” said Shiller, co-creator of the Standard & Poor’s/Case-Shiller Index, a widely followed measure of housing prices.

Shiller pointed to the Federal Reserve, which last week reaffirmed its policies on bond purchases and record-low interest rates. In September, the Fed launched a third round of quantitative easing (QE), in which it has bought $40 billion of mortgage-backed securities per month, primarily in mortgage-backed bonds.

Meanwhile, Fannie Mae and Freddie Mac, the two largest U.S. home funding sources, remain in government conservator-ship as Congress looks for ways to raise new tax revenues, Shiller noted.

“All of these things are weighing on the futures of housing,” Shiller said on CNBC’s “Futures Now,” adding the recovery might even be a bubble. “One thing you learn from history is that bubbles can occur at any time.”


Fed Projects High Unemployment Into 2015

March 21, 2013

OK so today the Fed says they are going to keep on printing. Until the economy improves.

The latest on the recovery.

WASHINGTON– The Federal Reserve said Wednesday that the U.S. economy has strengthened after pausing late last year but still needs the Fed’s extraordinary support to help lower high unemployment.

In a statement after a two-day meeting, the Fed stood by its plan to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it says it will continue buying $85 billion a month in bonds indefinitely to keep long-term borrowing costs down.

Read more at manufacturing.net …

But apparently they didn’t tell the same story to those who know better. You see how it works? Differing stories for different audiences.

Here It Comes Again …

March 7, 2013

Is another downgrade on the way?

Low information voters, pay attention, your future is about to be downgraded, again.

On Monday, Standard & Poor’s, for the first time, shifted its outlook on U.S. creditworthiness to “negative” because of the nation’s accumulating debt. The announcement rattled investors and could increase pressure on both sides in Washington to work out a broader deal as part of the upcoming vote over increasing the government’s borrowing authority.

WP reports:

The ratings agency Standard & Poor’s warned the United States on Monday that it could lose its coveted status as the world’s most secure economy if lawmakers don’t rein in the nation’s nearly $14.3 trillion debt.

The finding, the first of its kind in the 60 years that S&P has been judging the country’s credit quality, sent a jolt through the markets and injected a new sense of urgency into the debate gripping Washington over whether to allow the Treasury to keep borrowing.

S&P changed its outlook on the United States from “stable” to “negative” and said the federal government could lose its AAA rating if officials fail to bring spending in line with revenue.

Liberal Mecca: Illinois’ credit rating downgraded; state drops to worst in the nation

January 27, 2013

Can’t Pay For all their free stuff. Moochers and looters, not happy.

Illinois’ credit rating has taken another hit.   Standard & Poor’s Ratings Service downgraded the state from an “A” rating to “A-minus”, making it the worst in the country.
The New York ratings firm’s ranking means taxpayers may have to pay tens of millions of dollars more in interest when the state borrows money for roads and other projects.
The downgrade is the latest fallout over the $96.8 billion debt to five state pension systems.
The downgrade now ties Illinois with California, but California has a positive outlook.
Illinois’ fragile overall financial status netted it a negative outlook, putting it behind California overall.
The ratings came out now because Illinois plans to issue $500 million in bonds within days.

Spain downgraded by S&P (heading towards “junk” status)

October 10, 2012


Standard & Poor’s lowered its credit rating for Spain on Wednesday, in a move that could complicate Madrid’s effort to avoid requesting a financial bailout.

S&P cut Spain’s long-term credit rating two notches to “BBB-” from “BBB+,” the ratings agency said in a statement. It also lowered the nation’s short-term rating and said the long-term outlook for Spain is negative, meaning it could lower the rate further.

The move reflects the risk of “increasing social discontent” as the Spanish economy slips deeper into recession, according to S&P. It also warned of “rising tensions” between the central government and Spain’s semi-autonomous regions.

A growing number of Spain’s 17 regional governments have requested bailouts from the central government in Madrid. Catalonia, the largest of region, has threatened to secede.

“Overall, against the backdrop of a deepening economic recession, we believe that the government’s resolve will be repeatedly tested by domestic constituencies that are being adversely affected by its policies,” said S&P. “Accordingly, we think the government’s room to maneuver to contain the crisis has diminished.”

n addition, S&P warned that the latest plan to recapitalize Spanish banks “still lacks predictability.”

Spanish banks need to raise a total of €60 billion to fill the hole left by the bursting of the nation’s property bubble, according to a recent audit. Euro area finance ministers agreed in June to provide up to €100 billion in bailout loans to recapitalize Spain’s banking sector.

Read more at buzz.money.cnn.com …

Illinois’ credit rating downgraded after pension reform failure

August 30, 2012

Unions won’t see what they have done is unsustainable, so they want to bring the place down. Like Greece.

Illinois’ credit rating was downgraded by Standard & Poor’s on Wednesday, a move that came after Democrat Gov. Pat Quinn’s inability to persuade lawmakers to cut costs in the state’s debt-ridden public employee pension system.

The agency lowered the state’s credit rating from A+ to A, citing a “lack of action” on changes aimed at decreasing the pension system’s unfunded liability, which could hit $93 billion by next summer if nothing is done. Standard & Poor’s also gave Illinois a “negative outlook,” saying the state’s budget future remains uncertain.

It’s unclear what impact the new rating will have on Illinois’ pocketbook, but it is likely that it will cost the state more to borrow money to finance construction projects including new schools, roads and bridges.

Only California is ranked lower than Illinois by the S&P, with a credit rating of A-. But unlike Illinois, California has been given a “positive outlook.” Illinois already has the lowest credit rating in the nation from Moody’s Investors Service, which has warned that another downgrade is possible unless something is done to address the state’s growing pension liabilities.

Hey Obama isn’t that your State?

Why yes, I believe it is…

What’s the excuse for that? This is where I learned all about fiscal responsibility … from the great corrupt blue state unionized Democrat stronghold of the Democratic People Republic of Illinois!

Mr Barrack Huessein Kardasian, More Happy Talk Please: S&P keeps US rating unchanged, outlook ‘negative’

June 9, 2012

It’s your spending, sir, that is the root of the problem. Your irresponsible socialistic spend. Eventually everyone will figure it out ……

I missed the President Kardasian’s speech yesterday, had some work to do, so I am now trying to figure it all out. Let’s see, I think he said it wasn’t his dumb “no drill for oil” policy, it was simply the States weren’t hiring enough state workers. Yeah well in Florida our taxes are so high, the state doesn’t have the money NOR DOES IT NEED more state workers.

What we need is to throw in the garbage all your new crap regulations, set YOU out at the curb for pick-up in the morning and get back to minding our free market economy. Your European Socialism New Party crap does not work, no matter which genius is in charge.

And you wonder why he is our Ostrich Economics Professor president.

The States are broke sir, and your stimulus for state workers unions has now been spent. Another failure on the USA long ride to financial hell. Does 5 more trillion in new debt ring a bell with anyone?

Along comes the S&P and pours cold water on yesterday’s teleprompter happy talk, the U.S. private sector is doing fine, sure it is, as long as you have your very own 747 and taxpayer money to pay for the fuel. Why not go out to Hollyweird each week to see the boys and girls and the “whatever” and get their money? Bet you Mr Barrack Hussein Kardasian didn’t get within 1,000 feet of anyone making less than $100,000.

Solution Mr Kardasian proposes … RAISE TAXES, to completely choke off any signs of life in the struggling private sector economy. The shear genius of liberals is phenomenal:

Read the rest of this entry »

Hell Day: Worst Day of 2012, Dow Goes Negative For Year

June 1, 2012

Stocks suffered their worst day of the year, with the Dow tumbling into negative territory for 2012, after a disappointing jobs report in addition to dismal data from China and Europe fueled fears over the health of the global economy.

Whether the stock selloff continues through the summer “really depends on the government,” said Doug Roberts, managing partner at Channel Capital Research. “If [the Fed] starts making news about QE3, than you can start to see this [selloff] is going to be relatively short-lived.”

Print more money … What good will that do that the first two didn’t???

The EU is still cooking off and could blow any moment now.

Hah, if Obama doesn’t get the economy working, meaning he needs to abandon everything he is doing, he is toast. As it should be.

The S&P 500 and the Nasdaq also fell more than 2 percent to enter correction territory.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped above 26.

All 10 S&P sectors closed firmly in negative territory, led by financials and consumer discretionary.

OK, Define Post-Crisis, I Dare You: Homes Prices Drop 2% to Post-Crisis Lows

May 30, 2012

Home Prices Drop 2% – To Post-Crisis Lows

From a relentlessly spinning Associated Press, yeah I know, normal people would just say lying, but they are all we got left for a press, for now:

Homes Prices Drop 2% to Post-Crisis Lows: Case-Shiller

May 29, 2012

Home prices fell in the first quarter to new post-crisis lows, but prices were up in March from February for the first time in seven months.

The increase is the latest evidence of a slow recovery taking shape in the troubled housing market.

You see?  Just “the latest evidence of a slow recovery taking shape.” I wonder what a normal recobvery would look like to the AP?

It’s almost as if their jobs depend on talking up the economy enough to get Obama re-elected. You get the sense the media is all in on this election?

The Standard & Poor’s/Case-Shiller home price index showed that prices increased in 12 of the 20 cities it tracks.

Still, the major indexes ended the first quarter at new post-crisis lows, the report said. For the first quarter, prices were down 2 percent, compared to a 3.9 percent decline in the last three months of 2011.

Prices increased in Tampa and Miami — two of the hardest hit markets. Las Vegas — the nation’s worst market — so no change in prices. Prices dropped sharply in Detroit, Chicago and Atlanta.

The increases partly reflect the beginning of the spring selling season. The month-to-month prices aren’t adjusted for seasonal factors.

So have we finally found a number that is not seasonally adjusted? We can’t have that! Everything has to be cloaked in wiggle room and error, just in case ….

The overall index of 20 cities was essentially unchanged in March, after falling 0.8 percent in February.

All of which is just more “evidence of a slow recovery taking shape.”


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