Stocks: Market Crash Looming

[Brian Defferding]

Thank ya! Be sure to go to Young Americans for Liberty's blog to see more of my cartoons. I usually post at least one every week. *thumbs up*

 

[wgadget]

Wow...Today's morning news was quite alarming..

734 job cuts from the Cobb County schools alone...And that will only take care of HALF the budget cuts.

http://www.ajc.com/news/cobb/cobb-schools-to-consider-480868.html

 

[Sarge]

Greek Debt downgraded by Moody's. By the time the get a loan they will not be able to afford one.

Jobless Claims 456K Still bad anyway one looks at it and no matter how much they try to spin it to better.

Right on the job losses. More on the way. 24 Fuddruckers Restaurants closing due to BK of parent co. More jobs gone and more space for lease.

Pinnacle cutting 220 jobs as casino closes.

CT. 2,500 teachers face lay offs.

Sallie Mae to cut 2,500 jobs. And a ton more. Too many to post.

My guess it is June before we see all the State cuts finalized. It will be in the thousands.

 

[Sarge]

Brian,

Great on the cartoon.

Picture this in Illinois. They are going to extend and pretend on not paying vendors, if they can get away with it, until Dec. 4B that vendors will not get paid. How are they suppose to survive?

Then talking about a 33 percent increase in state income tax. Oh yeah. All my cousins are going to love that one.

http://www.pantagraph.com/news/stat...cle_3f2181ca-4cbc-11df-abe0-001cc4c002e0.html

They are trying to shove the problem into next years budget.

 

[Sarge]

And get ready if this is correct.

"Ninety percent of U.S. school superintendents say they expect to dismiss teachers at the end of the school year, a survey
finds.

U.S. Education Secretary Arne Duncan estimates the number of jobs likely to be lost at 100,000 to 300,000."

 

[MsDoodahs]

They are trying to shove the problem into next years budget.

The Keynesian Can Kick.

 

[AmericasLastHope]

Rogers: Goldman May Fuel 20 Percent Market Tumble

Billionaire investor Jim Rogers says the SEC allegations against Goldman Sachs could act as the catalyst end markets downward regardless of the outcome of the charges.

"Markets are overdue for a correction," says Rogers, chairman of Rogers Holdings.

"When the markets are ready for a correction, something will come along ... the straw that breaks the camel's back," he told CNBC.

"Any market that goes up this much, this fast, this steadily without correction — it's not normal. When that sort of things happens, the market could be setting itself up for a 15 to 20 percent correction."

Rogers wasn't surprised by the SEC's actions, pointing out that these kinds of investigations usually take place after major financial meltdowns

"When the tide goes out, you see who's swimming naked,” Rogers said, quoting Warren Buffett. “I'm sure there will be many, many more skeletons to come."

Though Rogers believes this could well be the beginning of a correction, he doesn’t advise selling just yet. However, he says investors should start thinking about adding shorts to their portfolio, and suggested shorting indexes, bank stocks included.

As usual, Rogers strongly suggests buying gold. "Go back to 2008, you have AIG go broke, Lehman go broke,” he notes.

“There was a gigantic forced liquidation in commodities — not because of fundamentals, but because people were forced to sell ... it would be an opportunity."

http://moneynews.com/StreetTalk/jim...n/2010/04/19/id/356121?s=al&promo_code=9CB5-1

 

[Sarge]

If they are correct, and if it blows, all will want to pay close attention. It is a much bigger volcano, and food stuffs might become a big problem let alone travel over there.

http://www.property-casualty.com/Ne...-Ash-Blast-Probably-Coming-Soon-Says-RMS.aspx

Greece is getting more dicey by the minute. Moodys might have also downgraded some Portugal debt. Waiting to confirm.

 

[Sarge]

More open office space on the way. Morgan Stanley to close 120 overlap offices due to their merger with Smith Barney.

School cuts in the hundreds continue.

 

[Sarge]

Some might remember me questioning the sudden increase in Treasury Tax Receipts last month. The receipts had been tanking until last month with spending moving up.

The following thread from the Ticker Forum is a great read on the subject. Note the big other addition.

What will they do for April when they don't have that other again?

http://www.tickerforum.org/cgi-ticker/akcs-www?post=135119

The thread has two great articles and great discussion.

Time is running out fast on the shell game.

 

[HOLLYWOOD]

When I look over the US Treasury's monthly reports, one thing that caught my eye is: "OTHER". I couldn't believe how many "OTHER"s were listed throughout the pages. For the Treasury to group so many "others" that add up to $100's of BILLIONS in dollars is alone, I presume, for a number of reasons, most likely not to inform the public. Like Seizures, repossessions, garnishments, Fines, Penalties, Collections charges, ALTERNATIVE MINIMUM TAXES, etc... all under Personal Income Tax Revenue.

Where the HELL did the US Treasury's Luck Charms get the "Magically Delicious" $1/4 TRILLION in Revenue in the Yellow/Red boxes below for the month of MARCH 2010? Big up from the previous 5 Months of revenue for those data points.

http://home.comcast.net/~lcmgroupe/2010/Article-Extend_Pretend-Gaming_the_US_Tax_Payer.htm

EXTEND & PRETEND: Gaming the US Tax Payer

[FONT=&quot]Today, April 15th, most of us grudgingly settle our [/FONT] [FONT=&quot] annual obligations[/FONT][FONT=&quot] with the government tax authorities. But for how long will we keep doing this? How long will we support the government’s Ponzi scheme that makes a mockery out of the monies we have annually contributed obediently to our Social Security and Medicare accounts? What I am going to share with you may make this a haunting question for you throughout the next taxation year.[/FONT]
[FONT=&quot] I have been writing extensively about the unregulated $605 Trillion Global Derivatives market along with the ‘Extend & Pretend’ Program that has resulted in an explosive market rally from the depths of the post financial crisis. Despite my reluctance, my writings and research has forced me to some undeniable conclusions. Our government is presently ‘gaming’ the US Tax Payer. Let me explain how.[/FONT]

[FONT=&quot]‘WHALES MAKE WAVES’[/FONT]

[FONT=&quot] A smoking gun is seldom found at the scene of the crime. Instead the crime must be pieced together through the linkage of clues. Clues build a case that is based on facts. Facts which can convince a jury of our peers that ‘beyond a reasonable doubt’ we know how and by whom a crime was carried out. Therefore I am not going to speculate. I am simply going to lay out the facts of a series of suspicious clues for your consideration that show we are being gamed.[/FONT]

[FONT=&quot] I was an investor in Enron and was on the earnings conference calls with Ken Lay, Jeff Shilling and Andrew Fastow. I knew something was wrong with Enron’s meteoric rise, but I couldn’t put my finger on it and consequently I lost money. I subsequently learned during the collapse about the new world of offshore accounting and financial instruments such as SPE’s (Special Purpose Entities). How companies could legally move debt off their asset ledger. A few years later, I again knew something was terribly wrong as I watched housing prices explode and witnessed kids buying McMansions and driving prestigious cars, with jobs that didn’t appear to be able to support this life style. I subsequently learned during the financial crisis about the mysterious world of financial instruments such as CDS, CDO CLO et al and the vehicles such as SIV’s (Structured Investment Vehicles) that allowed banks and financial instruments to circumvent capital requirements and move debt off their balance sheet. The resulting Shadow Banking System flooded the global financial markets with cheap, highly available credit to anyone that had a pulse.[/FONT]

[FONT=&quot] I recently discovered and have written about a whole new world of PPP/PPI, Novation Agreements and the SPC (Structured Purpose Company) and how the $437 Trillion Interest Rate Swap business has been broadly employed throughout Europe and the US at all levels of governments: sovereign, state, city and local. It is now just beginning to fill the world courts with legal proceedings and financial entanglements. This is yet another in my experience of witnessing ever increasing levels of financial malfeasants.[/FONT]

[FONT=&quot] What has been conspicuously missing from all these examples is the world’s biggest debtor. [/FONT]

[FONT=&quot] Missing is the debtor with the most incentive to take advantage of all these innovations and creative ways to hide debt. Missing is the debtor most needing to finance ever increasing expenditures. Surely this debtor is not so pure that they have forsaken what was created in their own country because they saw the inherent risks, that they alone took the high road that almost every country, state, city or local government succumbed to. Of course we are talking about Uncle Sam here. The person we pay our taxes to every year.[/FONT]



[FONT=&quot] SUSPICIOUS CLUE #1[/FONT][FONT=&quot] - PLUMMETING US MONEY SUPPLY DESPITE QE (Quantitative Easing)[/FONT]


[FONT=&quot]SUSPICIOUS CLUE #2[/FONT][FONT=&quot] – US TREASURY AUCTION – Historic Direct versus Indirect Bids[/FONT]


[FONT=&quot]SUSPICIOUS CLUE #3 [/FONT] [FONT=&quot] - MAJOR PARTICIPANTS REDUCING US TREASURY HOLDINGS[/FONT]


[FONT=&quot]SUSPICIOUS CLUE #4[/FONT][FONT=&quot] – DRAMATIC COMMERCIAL BANK LENDING SPIKE[/FONT]


[FONT=&quot]SUSPICIOUS CLUE #5[/FONT][FONT=&quot] – HISTORIC 10 YEAR INTEREST RATE SWAP REVERSAL[/FONT]


[FONT=&quot]SUSPICIOUS CLUE #6[/FONT][FONT=&quot] – HISTORIC & UNPRECEDENTED TRANSFER OF FUNDS[/FONT]


[FONT=&quot]SUSPICIOUS CLUE #7[/FONT][FONT=&quot] – GOLD MARKET MANIPULATION CONFIRMED IN CFTC HEARINGS[/FONT]

[FONT=&quot]

[/FONT]


[FONT=&quot]

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[FONT=&quot]
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[Sarge]

H,

I thought you might like seeing this. Yep just "other" chump change in the Billions they will not identify. Most, when accounting, identify billions.

It looks like M1 getting ready to head into the red bucket and M1 getting ready to dive.

I think we are getting close to this blowing up. The big month of April we will know shortly. We shall see if they have a big other then. After April things head down until June.

 

[HOLLYWOOD]

H,

I thought you might like seeing this. Yep just "other" chump change in the Billions they will not identify. Most, when accounting, identify billions.

It looks like M1 getting ready to head into the red bucket and M1 getting ready to dive.

I think we are getting close to this blowing up. The big month of April we will know shortly. We shall see if they have a big other then. After April things head down until June.

Under the US Treasury report... "OTHER" is used on the money pages: 458 Times

Also you have to review the end of the monthly ASCII report only where they indicate little hidden things like: FEBRUARY 2010 report... deficit revised $3.1 higher than initially reported...

Take a Look at the GAO's Report on US FY 2011 Budget which starts Oct 1, 2010: http://www.gpoaccess.gov/usbudget/fy11/index.html

or this little GEM of revising last year's numbers(2009)... even 2007's numbers:

TABLE 4

1/ In accordance with the Social Security Act as amended: “Individual
income taxes, Withheld” have been increased and “Federal Insurance
Contribution Act Taxes” correspondingly decreased by $5,578 million($5.6 BILLION) to
correct estimates for the quarter ending March, 2009. “Individual income
taxes, Other” have been decreased and “Self-Employment Contribution Act
Taxes” correspondingly increased by $604 million to correct estimates
for calendar year 2007 and prior.

These reports detail accounting transactions affecting
receipts and outlays of the Federal Government and off-budget
Federal entities, and their related effect on the assets and
liabilities of the U.S. Government. Information is presented in
the MTS on a modified cash basis.

These collections, also called governmental receipts, consist mainly of tax receipts
(including social insurance taxes), receipts from court fines,
certain licenses, and deposits of earnings by the Federal Reserve
System. Refunds of receipts are treated as deductions from
gross receipts.

Budget of the United States Government, Fiscal Year 20__ (Available from
GPO, Washington, D.C. 20401 on a subscription basis only and on the internet at
http://www.gpoaccess.gov/usbudget/). This publication is a single volume which
provides budget information and contains:
-Appendix, The Budget of the United States
Government, FY 20__
-The United States Budget in Brief, FY 20__
-Analytical Perspectives
-Historical Tables

Combined Statement of Receipts, Outlays, and Balances of the United States
Government (Available from Financial Management Services, U.S. Department of Treasury,
Washington, D.C. 20227 and on the internet at http://fms.treas.gov/annualreport/index.html).
This report includes budgetary results at the summary level and presents individual receipt
and appropriation accounts at the detail level.

 

[Sarge]

H,

I really think we have passed the tipping point. Soon the whole financial statement will read OTHER.

 

[audienceofone]

wow great info
you will never see this in the msm......

 

[Sarge]

Let me see, Turbo non pay tax Timmy elects to pledge 1.1 Billion of our tax dollars to the World Bank. How nice of you. What about the IRS employees that are not paying taxes Timmy? Do you promise to pall all your taxes Timmy?

Mean while back at the ranch, job losses mount to help pay for your generosity.

VA. "Lillian Vernon closing. 200 job losses at call center by next Aug.

VA. "American of Martinsville 225 immediate job cuts."

Thousands of teacher and below job cuts happening.

They all wish to thank you Timmy for the additional burden you are placing on them and the rest of us.

 

[Sarge]

Hey Timmy, 600 people are going to be paying less taxes that you are giving away. Timmy, you are going to puke after April, when you don't have the money to give away.

http://www.jsonline.com/business/92057889.html

21 percent pay cut all 600 people.

 

[angelatc]

VA. "Lillian Vernon closing. 200 job losses at call center by next Aug.

VA. "American of Martinsville 225 immediate job cuts."

.

Interesting. VA is one of the states that's been able to stay ahead of the wave because of the DC largesse that flows into it. I wonder if this is signaling the end of their stamina.

 

[Sarge]

Not sure if it is the start of a new trend.

I do know that Applied Materials let go a bunch there, including my nephew, and they were shifting jobs to India.

My nephew said he can't find a job. No one is hiring. He is a sharp and can't get a job.

 

[Sarge]

647 job cuts tomorrow at Ralph's Grocery in Riverside and LA tomorrow. 400 plus of the cuts at Riverside CA locations.