Stocks: Market Crash Looming

[Sarge]

Had to post this one. Different view point on Fed Meeting today.

http://www.etfguide.com/research/359/23/Fed's-June-Meeting-Statement-Very-Negative/

How about ugly on the way?

 

[Sarge]

Just in case some nuts want to contribute to Nancy P.

http://thehill.com/blogs/blog-brief...-for-donations-to-fend-off-gop-investigations

Do ya just think she is nuts or worried? Do you think she might have reason to worry?

Talk about any idiot that donates for something that has yet to happen.
Help us all, for the CA people that keep putting her back in office. We can't afford her office rent, personal jets, and other idiotic ideas anymore.

I will so laugh my butt off when CA wakes up. By then it will be too late and they will never get me to help them.

Looks like Australia might be getting ready to dump PM Rudd today if, the news is right.

 

[HOLLYWOOD]

Had to post this one. Different view point on Fed Meeting today.

http://www.etfguide.com/research/359/23/Fed's-June-Meeting-Statement-Very-Negative/http://www.etfguide.com/research/359/23/Fed's-June-Meeting-Statement-Very-Negative/

How about ugly on the way?

The FOMC is full of shit. Notice how they carefully word their statements?

AnyHoo, we all know the FED FUNDS RATE won't change until mid 2012 with all the subprime/Alt-A/etc mortgages still in play and doesn't whine down until then. We've posted those MBS charts plenty of times.

The Federal Reserve... I see the MSM media continues to treat them like a honest valid financial system. Cronism runs far and wide straight to the doors of the FOMC. Frigin Propaganda~!

 

[Sarge]

H,

Right you are.

I think the big boys are running out of friends. It sounds like PM Rudd in Australia is on his way out from 5 minutes ago. I think he is conceding he is going to loose the support vote.

Start adding up the big names going down the tube. Blair, likely Rudd and a few more.

If they don't have control of the newbies it might just get interesting.

Some are vowing to move out of Australia if the women wins. Best I can tell she might have been aligned with the Communist. Not an allegation, just from what I remember reading today.

Too much is going on so fast to keep it all straight right now.

BP knocked off the well cap, with a remote, and now oil is now gushing out major time. Talk about incompetents that should be prosecuted. There is more to this story than most well likely ever know.

The Govt. knew about the problems in Feb. and didn't do a thing. BO will get this one shoved in his face before the next elections is my guess.

 

[HOLLYWOOD]

H,

Right you are.


BP knocked off the well cap, with a remote, and now oil is now gushing out major time. Talk about incompetents that should be prosecuted. There is more to this story than most well likely ever know.

The Govt. knew about the problems in Feb. and didn't do a thing. BO will get this one shoved in his face before the next elections is my guess.

I'm still focused on the platform explosion and the suspects... So where's the usual suspects... EPA, Department of the Interior, MMS bosses? Oh, I see there's no problem for the MMS to constantly receive budget increases year after year and no problem collecting royalties for all the Big Oil companies... Cookie cutting blowout documentation across the industry.

All there heads should be in a basket.

http://www.mms.gov/index.htm

The New Bureau of Ocean Energy Management, Regulation, and Enforcement (BOE) Web Site is Under Construction​

Secretarial Order 3302, issued June 18, 2010 renames the

Minerals Management Service to the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOE). <===



The name change is effective immediately.
We will be working over the next several days to make the appropriate changes to our web site. To visit the former MMS web site, click here.

FASCIST SELLOUTS of both parties...

 

[tmosley]

Just found out three local Wendy's just closed, apparently due to the "bad economy" (having spoken to someone who knows the owner). Supposedly Lubbock is supposed to have the second strongest economy in Texas, which is supposed to rank among the top states in terms of economy. Makes me wonder if even the local numbers are gamed.

 

[HOLLYWOOD]

Yes and the winner of today's Fiscal Cluster F**k is: California... AGAIN.

Sure the unemployment is only 12%. Well the middle class is leaving in droves or outta work, now the Unemployment Insurance Fund is going to skyrocket from a deficit of $6 Billion in '09 to $21 Billion in 2011!

http://blogs.sacbee.com/capitolalertlatest/2010/06/unemployment-insurance-deficit.html

CALIFORNIA Unemployment insurance deficit to hit $21 billion next year

California's budget deficit is estimated at just under $20 billion, but it could be overshadowed next year by the rapidly increasing gap between income and outgo in the state fund that pays unemployment insurance benefits.


A new forecast of the Unemployment Insurance Fund's long-term condition, published by the Employment Development Department, says the UIF's deficit, which was $6.2 billion at the end of 2009, is expected to hit $15.3 billion by the end of this year(2010) and $20.9 billion by the end of 2011.
That forecast, believe it or not, contains a nugget of good news. The 2011 year-end deficit had been projected to be even higher, but a slow recovery from recession, the department says, should increase employment over the next year and a half and therefore reduce the outflow of unemployment checks.

There are about 2.3 million unemployed workers in California now, but that should fall as hiring picks up, EDD says, although it will remain above 2 million in 2011.
The state's UIF, which is financed by payroll taxes on employers, was exhausted many months ago. The state has borrowed billions from the federal government for the past year and a half, plus dispatched more billions in extended benefits financed entirely from the federal treasury.
The state is on the hook for interest on that debt beginning next January. Some officials believe that as part of its national recovery efforts the federal government at some point may forgive states' UI loans. But if the loans must be repaid, it may require increases in employers' payroll taxes, which now total $4.4 billion a year, scarcely a third of the $11.4 billion in state-financed benefits being paid out this year.



Read more: http://blogs.sacbee.com/capitolalertlatest/2010/06/unemployment-insurance-deficit.html#ixzz0roThusBq

 

[Merk]

but a slow recovery from recession, the department says, should increase employment over the next year and a half

Uh-huh...

Some officials believe that as part of its national recovery efforts the federal government at some point may forgive states' UI loans.

 

[HOLLYWOOD]

50 Ohio Jobs Heading South of the Border

24. June 2010
More than 50 manufacturing jobs in Ohio appear to be heading to Mexico. The news comes via a state filing by Peco II Inc., a communications power systems maker, which said the company will relocate its manufacturing operations south of the border as part of a cost-cutting plan. According to the Business First of Columbus, 21 jobs that [...]


Boston Bio-Tech Company Cutting 60% of Staff (100)


24. June 2010
The Boston Business Journal reports febit Inc., a DNA analysis technology firm, is slashing its Boston-area workforce by 60 percent. The German-based bio-tech company, founded in 2005, employs between 90 and 100 people at its Lexington center, which means up to 60 people could lose their jobs. According to the report, the cuts are the result of [...]


Governor’s Decision Bad For Michigan Job Market

24. June 2010
Last month, Michigan governor, Jennifer Granholm, blocked the issuance of a permit for a new power plant in Rogers City, which rests on the upper Michigan peninsula on the shores of Lake Huron. According to a piece in the Detroit Free Press, her decision will have disastrous repercussions both for the state’s economy and the [...]


Spartan Motors Cutting Workforce in Restructuring

23. June 2010
Automotive chassis maker Spartan Motors Inc. said Wednesday it is taking several steps to help save money, including cutting jobs. The company did not specify how many positions would be eliminated, but other steps Spartan is taking is selling its ambulance-making unit, reducing retainer fees of its directors and cutting the salaries of members of its [...]


Town of Flower Mound Cutting 14 Positions

23. June 2010
Cuts are coming to the Town of Flower Mound in Texas. Officials announced this week that 14 positions will be cut and staff will be reorganized in order to save $776,000 during the next fiscal year. According to the Dallas Morning News, the cuts include the director of parks and recreation, the fire marshal, and the [...]


LA Schools To Layoff 3,000 Workers

23. June 2010
So. Cal. Public Radio: Los Angeles Unified’s education board approved a final budget yesterday for the next fiscal year that anticipates mass layoffs to the tune of 3,000 employees. The cuts come as a result of the school district’s efforts to close gaps in its giant funding deficit. Many of the cuts are non-teacher positions such [...]

RealNetworks Slashes Jobs, Office Space in Restructuring

22. June 2010
RealNetworks is eliminating 85 positions, including a quarter of its executive team, as part of a reorganization plan the company announced Tuesday. The restructuring is designed to curtail declining revenue for the Seattle-based company. RealNetworks, which is known for its audio and video Internet solutions, has a 1,700-strong workforce in the U.S., Asia and Europe. In addition to the [...]


Smart Grid Jobs Shot Down In Baltimore County

22. June 2010
Baltimore Gas and Electric’s plan to create some 1,700 jobs has been shot down, according to the Baltimore Business Journal. The plan was rejected by the Maryland Public Service Commission late Monday evening. The company’s intent was to install 2 million new customer electricity meters that would allow both consumers and utility employees to track [

Patriot Coal To Close Mine In West Virginia

22. June 2010
The fourth largest U.S. coal mining corporation, Patriot Coal Corporation, announced today that it has closed its Harris No.1 mine in West Virginia. According to Bloomberg Businessweek, the move will cost upwards of 175 jobs. The company’s stock fell by 15 percent upon the announcement. The mine has been closed, according to company sources, due to [...]


Teachers Get The Axe in Eastern Pennsylvania

22. June 2010
Facing a steep budget deficit, eastern Pennsylvania’s Easton Area School Board voted Monday to ax 72 teachers. The Associated Press reports the cuts, which includes 27 high school teachers and the district’s computer technology coordinators, caused an uproar from the teacher’s union at the meeting. That’s because, according to union president Kevin Deely, the labor group [...]

 

[angelatc]

US growth estimate revised down to 2.7%

The US economy grew at an annual rate of 2.7% in the first three months of 2010, slower than previously estimated.

The Commerce Department had previously estimated growth at 3% versus the same period in 2009.

More at the link.

 

[FunkBuddha]

Business investment and consumer spending - important components of GDP - were both revised down.

I'm no economist, so by all means, correct me if I'm wrong.

But isn't the formula for GDP C(consumer spending) + I(investment) + G(government spending) + NX(net exports) = Y(GDP)? So, if C,I, and NX are down, you could still have positive Y by increasing G, right?

 

[FunkBuddha]

I'm no economist, so by all means, correct me if I'm wrong.

But isn't the formula for GDP C(consumer spending) + I(investment) + G(government spending) + NX(net exports) = Y(GDP)? So, if C,I, and NX are down, you could still have positive Y by increasing G, right?

Sorry. didn't complete my thought before clicking "Post"(I had to pee.)

Does increasing G through inflating the money supply have an immediate effect on C, I, and NX or is it longer term? It seems to me like it would be more useful to post the numbers for C,I,G and NX rather than combining them into the GDP number.

 

[angelatc]

I won't argue that Dforkus has some valid points, but the bottom line is, regardless of the market valuation of stocks or anything else, I don't think anyone can deny that we are witnessing the unraveling of the very fabric of our economy.

I just ahd my second annual review with no raise, the year before that I got a whopping $500. This is not done because the company I work for is struggling (it isn;t at all) and it isn't because I am not a good employee (Last year my numbers were second on a team of 15 people, this fiscal year just completed they were about 5th). No it was done primarily for two reasons.

1. The company feels it can do whatever it wants to regarding its employees as in the current economy they have no viable options..

Labor is like any other commodity. Supply is up, so price is down.

 

[angelatc]

http://www.cnbc.com/id/37732312/

More than 90 banks miss TARP payments.

 

[HOLLYWOOD]

Garden Spot, Oh No's... Not Jersey! I don't know about you but, "This Ain't No Recovery... This is Headed For a Depression!"

http://www.nj.com/news/index.ssf/2010/04/nj_lawmakers_work_to_avert_1b.htmlN.J.

Lawmakers work to fix $1.7B Unemployment Fund Deficit, avert 52 percent tax hike for businesses...

Newark NJ in massive layoff mode: http://www.nj.com/news/index.ssf/2010/06/mayor_booker_proposes_up_to_20.html#_login

[h1]Mayor Cory Booker proposes massive layoffs, benefits cuts to offset $180M budget gap[/h1]

The Star-Ledger Newark Mayor Cory Booker delivers his State of the City address in February.

NEWARK — To address what he calls the biggest budget crisis in a generation, Newark Mayor Cory Booker is proposing a radical restructuring of city government, which includes massive layoffs, cuts in employee benefits, departmental reorganizations and the creation of a municipal utilities authority.
Huge increases in personnel costs, such as health care and pensions, and massive loss of revenue, such as state aid and the end of one-shot Port Authority payments, have combined to create a $180 million budget gap, Booker said today at a Star-Ledger editorial board meeting. The answer is a "massive change in the way we do government," he said.
Between now and September, Booker said he will propose a series of measures to the city council and the state to fill the current budget hole and permanently reduce the city’s structural deficit. The major proposals include:



• Layoffs ranging from several hundred to 2,000 city workers.
• Renegotiating contracts with city unions for benefit cuts.
• Creating a municipal utilities authority to run Newark’s water resources.

 

[Original_Intent]

Fed to begin massive money printing

http://www.telegraph.co.uk/finance/...er-money-printing-by-the-Federal-Reserve.html

RBS tells clients to prepare for 'monster' money-printing by the Federal Reserve
As recovery starts to stall in the US and Europe with echoes of mid-1931, bond experts are once again dusting off a speech by Ben Bernanke given eight years ago as a freshman governor at the Federal Reserve.

By Ambrose Evans-Pritchard, International Business Editor
Published: 5:11PM BST 27 Jun 2010

Entitled "Deflation: Making Sure It Doesn’t Happen Here", it is a warfare manual for defeating economic slumps by use of extreme monetary stimulus once interest rates have dropped to zero, and implicitly once governments have spent themselves to near bankruptcy.

The speech is best known for its irreverent one-liner: "The US government has a technology, called a printing press, that allows it to produce as many US dollars as it wishes at essentially no cost."

Bernanke began putting the script into action after the credit system seized up in 2008, purchasing $1.75 trillion of Treasuries, mortgage securities, and agency bonds to shore up the US credit system. He stopped far short of the $5 trillion balance sheet quietly pencilled in by the Fed Board as the upper limit for quantitative easing (QE).

Investors basking in Wall Street's V-shaped rally had assumed that this bizarre episode was over. So did the Fed, which has been shutting liquidity spigots one by one. But the latest batch of data is disturbing.

The ECRI leading indicator produced by the Economic Cycle Research Institute plummeted yet again last week to -6.9, pointing to contraction in the US by the end of the year. It is dropping faster that at any time in the post-War era.

The latest data from the CPB Netherlands Bureau shows that world trade slid 1.7pc in May, with the biggest fall in Asia. The Baltic Dry Index measuring freight rates on bulk goods has dropped 40pc in a month. This is a volatile index that can be distorted by the supply of new ships, but those who watch it as an early warning signal for China and commodities are nervous.

Andrew Roberts, credit chief at RBS, is advising clients to read the Bernanke text very closely because the Fed is soon going to have to the pull the lever on "monster" quantitative easing (QE)".

"We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable," he said in a note to investors.

 

[devil21]

Massive printing will probably make the stock markets go up, not crash.

 

[Slutter McGee]

Just found out three local Wendy's just closed, apparently due to the "bad economy" (having spoken to someone who knows the owner). Supposedly Lubbock is supposed to have the second strongest economy in Texas, which is supposed to rank among the top states in terms of economy. Makes me wonder if even the local numbers are gamed.

I worked in retail (Hastings) down in Lubbock during the worst of everything. Business sucked, and our hours were cut, but it really wasn't that bad. There were no layoffs until the store closed, but that was thanks to all the crap going on around the football stadium, not because of the economy. Its the same here in Amarillo. I don't see many layoffs at all, but people aren't hiring much either...almost like business is in a holding pattern.

Sincerely,

Slutter McGee

 

[Cowlesy]

http://www.cnbc.com/id/37732312/

More than 90 banks miss TARP payments.

Makes you wonder what they used the TARP money for.

 

[angelatc]

Well, Congress didn't pass the unemployment extension. So if our economic theories hold true, unemployment should begin falling.