Stocks: Market Crash Looming

[Sarge]

H,

Right you are. The Fed might well have no control if the bond market decides to bump the rate in spite of them.

Problem. "The downgrade to junk status led investors to dump Greece’s bonds, driving yields on two-year notes above 25 percent today from 4.6 percent a month ago as concern deepened the nation will delay or reduce debt payments."

Does everyone think by Monday the rate will be lower? At what percent does Greece finally say there is no way we can afford the interest? They bail Greece and they open the vault to the rest.

Euro is tanking the longer it drags on.

Bennie has to be having a stroke along with the rest. They wait too long and the same is going to happen here with all our debt.

If they change the wording in the next 10 the bond people will be all over it. I don't expect a rate change but, some change in wording. That will be what I guess the bond people will looking at likewise.

 

[Sarge]

Fed. No change in rate or wording.

 

[Sarge]

CA. "Land O'Lakes announced on Wednesday plans to idle it's cheese manufacturing plant in Tulare." 100 jobs going gone.

 

[Sarge]

Yep it is getting better Bennie,

Jobless Claims 448K. Consensus was for 447K Prior week was 456K. No big improvement at all.

The longer this goes on, any blip in the economy is likely to get very ugly on any new down trend.

 

[Sarge]

KD is talking about the Fed incurring 113B of debt through the 29th of this month.

I took a look at the April Treasury tax receipts which shows up to April 27th. It shows 169,208B of receipts and combined individual and corporate refunds of around 73B.

Last April the receipts ran 269,000 B. Tomorrow is the last day of April, and short of tricks, there is no way they are going to come up with 100B in 4 days, And I am not subtracting the refunds in the 100B I say they have big problems and it gets worse next month as the Tax receipts continue to fall.

We will know around May 12 or so. Their assertion that tax receipts are rising is total BS.

For those that wish to look themselves.

http://www.fms.treas.gov/dts/index.html

Note page 3 and last year May receipts were 117B. If that tanks, as I suspect it will, it is ugly time. You don't think the bond guys are not going to pick up on that fast. If little ole me can see the tanking, they sure as heck will.

 

[ChooseLiberty]

BREAKING: Unusual price action continued today as the Dow closed above 11k support on serious volume. Nothing to see here folks, move along.

Traders at the scene commented - "We told you already. The market will go up forever. Or until the USA collapses. Whichever."

 

[ChooseLiberty]

Some Wharton profs on Goldman/Abacus.

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2481

 

[Sarge]

Interesting article. Thank you.

Silver State Schools Credit Union in NV said it is closing 21 branches to save money. They made some comments about school teachers getting hit on decreased salary as they are going back to 9 months of teaching.

The rest of the States are dealing with that now. If Bennie and Timmy think tax receipts are bad now, wait a couple of months.

I checked the Treasury Tax Receipts this am. and they are showing through the 28th. UGLY to say the least. They could be down 150B over April last year, from what I am seeing. If that happens I suspect it becomes panic time. The spending is exploding and the receipts are tanking.

I further suspect any jobs found will be at lower wages. Less tax receipts, Timmy, in case you don't understand.

 

[Sarge]

Turning into an ugly Friday.

UPS closing call center Santa Maria and 260 jobs being cut. They will not be able to go to other UPS locations.

Florida Power and Light to cut 300 Jobs due to drop in home construction.

Milwaukee Public Schools cutting 682 jobs including 260 teachers.

Abington Hospital to Cut 100 Jobs in PA.

ACS cutting 268 jobs in Kentucky.

113 to be cut in KY courts.

 

[Sarge]

A little something they are trying to hide,

http://blog.al.com/live/2010/04/deepwater_horizon_secret_memo.html

Oil spill much worse than they are letting on. If this is correct, wait until they have to admit 25K to 30K barrels a day are spilling.

"Game Crazy Set To Close All Remaining Stores in two weeks." 250 stores still open.

Do ya just think they might have at least one employee running each store. Wait could they have two?

 

[Lafayette]

A little something they are trying to hide,

http://blog.al.com/live/2010/04/deepwater_horizon_secret_memo.html

Oil spill much worse than they are letting on. If this is correct, wait until they have to admit 25K to 30K barrels a day are spilling.

"Game Crazy Set To Close All Remaining Stores in two weeks." 250 stores still open.

Do ya just think they might have at least one employee running each store. Wait could they have two?

They most likely have 1 full time manager and 4 to 5 part time employees.

As for the oil spill, im sure it will put a lot of fishermen out of work, as well as hits to tourism. Not to mention its a good scape goat for bigger government.

 

[Sarge]

If the following is correct, it is bigger govt. that likely caused this. Who was working the well. Halliburton. Who was on the board of Halliburton? Dick Cheney? Who lobbied Dick to not approve the safety valves that might have prevented this at depths of 5K feet and more?

YouTube - The REAL REASON Behind the BP Oil Spill in the Gulf of Mexico - 2010

You are right on the potential impact on the fishing industry down there. Class action suits already filed. The problem is those put out of business will likely wait years while the attorney's make their billions.

Too early to tell but, a ton of us could be impacted and have damages from higher seafood prices, not able to get shrimp and oysters and higher gas prices. Way too early to tell until they can shut off what they can't shut off right now.

Credit to TF for finding the youtube

 

[Sarge]

Ben B. is a damn liar. He flat out told Ron Paul that we would not be involved in a bailout of Greece. He can't weasel out by saying well it is the IMF. They just sent them a big check. What I want to know is, how much of this 30B are we paying through the IMF?

http://www.bloomberg.com/apps/news?pid=20601087&sid=aE.Yt34w8ha4&pos=1

Get ready for Portugal and Spain to seek loans next gang. Don't hold your breath that Greece will cut anything. They will riot first.

We also have the UK and Ireland that still have major problems. There is likely going to be a tax payer revolt if they keep giving all our money away.

 

[Zippyjuan]

If the following is correct, it is bigger govt. that likely caused this. Who was working the well. Halliburton. Who was on the board of Halliburton? Dick Cheney? Who lobbied Dick to not approve the safety valves that might have prevented this at depths of 5K feet and more?



Credit to TF for finding the youtube

Let me see if I have this point straight. Bigger government caused the oil well problem. Free market supporters say that the government should get rid of regulations on industry and let them police themselves. In this case, it was supposedly because there was not enough government regulation on safety valves? So should we regulate and make government bigger or let the market decide what to do? Would a free market in the oil industry lead to fewer spills and accidents? If we need more regulations on oil firms to prevent this, isn't that an arguement FOR bigger government?

 

[Sarge]

I agree that comment was stupid as written.

I am against the big dollar lobby money to determine what gets or doesn't get done.

 

[tmosley]

Let me see if I have this point straight. Bigger government caused the oil well problem. Free market supporters say that the government should get rid of regulations on industry and let them police themselves. In this case, it was supposedly because there was not enough government regulation on safety valves? So should we regulate and make government bigger or let the market decide what to do? Would a free market in the oil industry lead to fewer spills and accidents? If we need more regulations on oil firms to prevent this, isn't that an arguement FOR bigger government?

You can't have a free market in a place where no-one is allowed to own property. This is exactly the case at sea.

If people were allowed to own the land under the ocean, and that which is above, then there would be recourse. In order to avoid lawsuits, they would have multiple redundencies and more powerful safety checks.

BP won't be allowed to fail. If they were allowed to fail, the next company would be more careful.

 

[TheState]

Movie Gallery closing down, 2400 stores...

http://www.zerohedge.com/article/blockbuster-announces-full-liquidation-shutter-all-2415-outlets

Movie Gallery's Chapter 22 just turned into a 7. The WSJ reports that the firm has decided to shutter all of its 2,415 stores and liquidate completely. Previously, the bankrupt movie rental chain had hoped to continue operating with a trimmed down asset base, and close just half of its stores. Alas, the melting of the icecube could not be stopped. This is nonetheless good news for liquidating advisor Gordon Brothers which just saw its bill double. As for main competitor Blockbuster, which itself is on the verge of bankruptcy (yes, those still do occur in the US, but the business must be really atrocious plus have no unionized workers anywhere within 50 miles of its operations), it is unclear whether the liquidation of Movie Gallery will be beneficial or merely too late. Tangentially, businesses all over America and the world which otherwise would benefit from the bankruptcy of their weaker competitors and flourish, are suffering just as much, courtesy of the no-risk/no-failure doctrine recently instituted by the administration, which has made Survival of the Fittest irrelevant.

 

[audienceofone]

A little something they are trying to hide,

http://blog.al.com/live/2010/04/deepwater_horizon_secret_memo.html

Oil spill much worse than they are letting on. If this is correct, wait until they have to admit 25K to 30K barrels a day are spilling.

"Game Crazy Set To Close All Remaining Stores in two weeks." 250 stores still open.

Do ya just think they might have at least one employee running each store. Wait could they have two?

Sarge beat me to it,(you are a machine!) Just got back from staying with friends down on the coast and I can tell you for sure the impact is already being felt down there. I hope its just hype like the swine flu because I truly love the gulf coast and go down there all the time. Does anyone else think its funny that hurricane katrina can destroy every oil rig in its path and not a single leak? All this with goldman sux under fire and Greece getting bailed out?

Filled up with gas on the way back and its already way up.
Stay tuned and be prepared

 

[Lafayette]

Movie Gallery closing down, 2400 stores...

http://www.zerohedge.com/article/blockbuster-announces-full-liquidation-shutter-all-2415-outlets

Is the 2400 the number of stores they had left after the first round or two of closings?

If so that's at least 5 people per store plus all the corporate jobs.

Ouch

 

[angelatc]

http://www.laborradio.org/node/13433

Off a left wing news site:

Whirlpool plans to close a U.S. refrigerator plant in June to ship more American jobs to Mexico. Doug Cunningham has more.

By Doug Cunningham

Whirlpool Corporation is shutting down a refrigerator plant in Evansville, Indiana that will put 1100 people out of work. Are they having trouble selling refrigerators in these bad economic times? No. Whirlpool is profitable and still selling plenty of refrigerators here. But they want to ship these jobs to Mexico where they can produce them cheaper and without having to respect U.S. labor and environmental regulations. Whirlpool took $19 million in economic recovery money and now instead of helping our economy recover, it’s destroying 1100 good American jobs. The AFL-CIO has started an online petition drive telling Whirlpool to “Keep It Made In America” to save our jobs. You can find it at unionvoice.org/campaign/Evansville The AFL-CIO says Whirlpool should reverse its decision to keep these 1100 jobs in the U.S. and help our economic recovery. The labor federation says taxpayer economic recovery money should be used to create jobs in America, not ship them to cheap labor markets in other countries.