Stocks: Dow ends down 313 points after Obama win

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Well I guess we know what Wall Street thinks about the election results:

Stocks ended sharply lower Wednesday, one day after the re-election of President Obama. The Dow Jones industrial average closed down about 313 points, or 2.4%.

Investor reaction is decidedly negative over the defeat of the more business-friendly Mitt Romney and the continued gridlock in Congress that makes it tough for lawmakers to avert a fiscal policy crisis by year-end.

The benchmark Dow remains below the psychologically significant 13,000, not seen since Aug. 3. The Standard & Poor’s 500 index and Nasdaq composite index ended down 2.3% and 2.5%, respectively, with stocks in nearly every industry lower.

The Dow, which settled at 12,933, had its lowest close since Aug. 2; the S&P 500 and Nasdaq had their lowest closes since Aug. 6.

Wall Street pros said negative sentiment was amplified Wednesday after European Central Bank President Mario Draghi expressed concerns ahead of the U.S. market open about the outlook for Europe’s economies, especially Germany.

Others said much of the sell-off is coming from computerized trading programs, which trigger huge sell-offs of stocks at pre-set prices hit versus investors making decisions on the spot about what they think of a stock’s outlook. One exception: Apple (AAPL) shares closed at $558.13, off 3.8% Wednesday. That puts the computer and gadget maker in correction territory, which is still about off 20% from its September intraday high $705.07 a share.

Investors are focusing on what Obama and Congress will do to avert the looming so-called “fiscal cliff.” The biggest fear is Washington’s inability to compromise in a lame-duck session over a host of mandated budget cuts and tax cut expirations set to kick in Jan. 1. Fears are that lack of a deal will roil markets and derail the economic recovery.

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Suppressing truth: A troubling trend

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Just because someone was offended, the truth was discarded about America’s financial condition? Yep!

Just minutes before trend forecaster Gerald Celente took the podium to deliver his keynote address at a Rotarian District Conference banquet, he was informed that the 200 copies of the Spring Trends Journal that he had brought to distribute to attendees had been hastily removed.

Why? Rotary District President Tansukh Dorawala, told Celente, “Someone found the cover offensive and we had to remove them.”

The cover art, created by award winning artist Anthony Freda, encapsulates, graphically and poignantly, an extremely important message regarding the direction in which America is trending and how dire the consequences will be. The illustration portrays a rainbow coalition of obese Americans boarding box cars plainly labeled “Made in U.S.A.” The headline above declares: “Next Train to Auschwitz: All Aboard! Kiss those calories goodbye.” The Trends Journal.

Provocative, yes, but who would find the truth “offensive”? After all, Americans of all ages are, statistically, the most obese people on the planet. Was the “someone” who “found the cover offensive” obese? And if so, does that justify censorship?

Or was it the word “Auschwitz?” Was the offended “someone” Jewish? Or was that “someone” German? Or was that“someone”an obese Jew or German?

Whoever the “someone” was and whatever caused him or her to be offended, the craven acquiescence of the Rotary leadership perfectly illustrates the accuracy of that cover (click here): a grossly overweight, slovenly dressed, pop-culture-conditioned, browbeaten populace (systematically robbed of their Constitutional rights by Presidents Bush and Obama, and stripped of their dignity by TSA gropers) is obediently heading for the boxcars.

The “offensive” cover is, of course, simply an introduction to the content of the Spring Trends Journal.But because a “someone” or somebody’s didn’t like what they saw, a worldwide organization with over 1.2 million members that claims to dedicate itself to “Peace Through Service” deprived its members of 44 pages devoted to peace!

The Journal presents the facts, supportive data and analyses of legislation, Executive Orders, Supreme Court rulings, and government guidelines that portend a Nazi-style dictatorship for the country that still bills itself as the “Land of the Free and the Home of the Brave” … though not quite free enough or brave enough to allow Rotarians to read.

America has become a land of censorship: government censorship, citizen censorship, and self-censorship. Will the people rise up, stand up, speak out and fight for their freedom? Or will they take the “Next Train to Auschwitz?” The future is not foreordained.

RT

Wait, let me help….GO HOME!

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The ultimate in stupid…we need generators and cots so we can stay away from work, build a media center and protest the people who make it possible. Hey, even a 12 year old knows when it’s time to come in from the cold…

NEW YORK (CBSNewYork) – Saturday’s snow storm made life in Zuccotti Park miserable for Occupy Wall Street protesters.

Demonstrators were left drenched with rain and then snow as the storm moved through the region. Central Park set a record for both the date and the month of October with 2.9 inches of snow.

Those camping out in the park have been stockpiling donated blankets, scarves, coats and have been trying to get more tents, cots and tarps.

According to an “urgent” alert on their website, OWS is looking for a number of other donations, including waterproof boots, gloves, hats, hand and foot warmers and disposable foot covers among other things. The site says the protesters “are in need of emergency supplies crucial for cold weather survival (and occupation).”

The site says they also need cots to get protesters off the ground, adding that they don’t have any and “could really use these.”

Reportedly, some have been even getting winter weather survival tips from the homeless.

They say they’re also looking for thermal heaters after fire officials removed six of the protesters’ gas-powered generators from Zuccotti Park on Friday, saying it was safety issue.

“The argument could be made they just wanted to get at our power source,” said demonstrator Brian Najdanik.

Without generators, protesters were left with just flashlights and lanterns. Lights, cooking equipment and the media center at Zuccotti Park were all turned off.

Fire officials say storing gasoline in such packed quarters is simply too dangerous.

But the protesters are coming up with a new solution – a stationary bike and generator connected to a battery.

“We’ve got five bike-powered generator systems that are coming from Boston and we’ve got five more plus other ones that are going to supplement as well so we’re completely, completely off the grid,” said demonstrator Lauren Minis.

Insiders at Occupy Wall Street say they expect to have their media center and the food service area fully powered and illuminated by Monday.

The movement is also expected to reveal just how much money they have raised and spent in the first five weeks of the Occupy Wall Street campaign.

OWS has reportedly raised nearly $454,000 and has spent more than $50,000 so far for things like food, clothing, medical supplies, laundry, media and other expenses.

Merger Could Take NYSE Out of American Control

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Well here we have another American company being taken over by a foreign company.

Merger Could Take NYSE Out of American Control

A German company is in high-level talks to acquire the New York Stock Exchange, Wall Street‘s most recognizable institution.  According to reports published in both the German and American financial press, Deutsche Borse, a Frankfurt-based stock exchange is seeking to take a 60 percent ownership interest in the NYSE.  The merger would create the world’s largest financial exchange.

News of the deal sent both NYSE and Deutsche Borse stock soaring Thursday.

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If US and European regulators sign off on the plan, the new parent company would have dual headquarters in Germany and America.  The merger is not expected to result in major layoffs in New York.  However, the ranks of face-to-face stock traders have already thinned considerably on Wall Street in recent years.

“Stock trading is a commodity business.  There’s just no money in it anymore,” said Greg David, director of Business & Economics Reporting at the CUNY Graduate School of Journalism.

“The fifth largest stock trading firm in the world is located in an office park off the New Jersey Turnpike, so it’s a business that has to change.”

The merger rumblings were greeted positively by investors, largely because the deal with Deutsche Borse would give the NYSE an instant presence in the lucrative derivatives markets.  Traditionalists in the stock business have expressed hesitation about that transition.

“The reason for the stock exchange was to raise capital for business,” said William Higgins, a retired trader who owns 70,000 shares of NYSE stock.

“These derivatives raise no capital.  They’re a new method of gambling.”

NBC New York

U.S. Congressional leaders agree on financial reform bill giving feds power to seize private companies

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Although there are some good points about this bill as Steve has already posted relative to the oil speculators which need to be reigned in, I’m afraid this bill may not be completely what it appears to be on the surface, but instead is possibly another government takeover of the financial system and will determine who succeeds and who fails based not on Congress, but unelected bureaucratic appointees. When we people learn these recent “crisis” have been caused by the government, then the government moves in and says we’ll be your ‘savior’, take over and make everything ok.

“It’s a great moment. I’m proud to have been here,” said a teary-eyed Sen. Christopher J. Dodd (D-Conn.), who as chairman of the Senate Banking Committee led the effort in the Senate. “No one will know until this is actually in place how it works.” (Now where have we heard this before? Nancy …”you won’t know what’s in it until it’s passed.”…Pelosi….that’s where.)

Financial Reform Is a Disaster For Banks, Consumers

New financial services regulations will be so disastrous that Congress will need to repeal them to undo the damage they will cause, banking analyst Dick Bove said Monday.

Calling the proposal “The Anti-American Finance Act,” Bove paints a grim picture of its consequences: Millions of consumers losing their bank accounts; costly and needless bureaucracy; an onerous restriction of money growth; and reduced US competitiveness in the global financial system.

“The Congress has created legislation to solve problems that may not exist and has not created legislation to deal with real problems,” Bove, of Rochdale Securities, said in a note to clients. “The consequences will be quite negative. The bill is so bad that it is certain to be reversed in subsequent Congressional sessions.”

While the proposals have yet to take final form, the legislation calls for more stringent regulation on risk-taking and capital requirements and establishes consumer protection in ways that Bove calls actually counterproductive.

But Bove said lawmakers and policy chiefs have overreacted to the crisis and come up with a set of laws that will ultimately harm the system, the economy and consumers.

“There is no doubt in my mind that in two years, the Congress and regulators will be scrambling to figure out how to undo what they have done with this legislation,” he wrote. “Banks need to lend, so money supply can grow. Forcing bank balance sheets to shrink does nothing to aid the United States economy.”

Higher capital requirements will shrink the money supply, which in turn will trigger deflation, lower incomes, unemployment and a contracting economy, he said.

“No one who is mandating higher capital in banks is considering this,” he said. “In fact, the policymakers are united in their view that the global banking industry needs more capital. It is more likely that the taxpayer is buying a new structure that will be as unworkable as the old one,” he wrote.

As for consumers, price controls and increased regulation will force banks to charge fees for routine services, which will be cut as well.

“Millions of people will lose their bank accounts,” Bove said. “The cost of banking will go up for everyone as the banks apply monthly maintenance fees to all of their customers. Credit availability will be reduced and credit, which is available, will cost more to everyone.”

The only winners in a newly-reformed financial system may be the banks themselves, Bove told CNBC late Monday.

“They’ll get their money,” he said. “It may be a lag of six to 12 months, but they’ll get the money back that they lose as a result of this bill.”

For investors, this means limiting exposure to banks that are largely consumer-oriented. Better bets, Bove said, are the institutions serving the “commercial customer,” like Comerica.

“Those banks look extraordinarily good at the present time,” Bove said.

CNBC

Fed Would Be Shut Down If It Were Audited, Expert Says

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While we’re trying to get all this info from the federal reserve by the hardest, maybe we should consider sticking to the Constitution for coining our money. The founding fathers warned us about the “central banks” long ago, because they had dealt with them back then and knew what would happen. Remember, “those who fail to from learn history are doomed to repeat it.”

The Constitution gives Congress the power to “coin” money….not to delegate it to  “private banks”, i.e. federal reserve.

Article 1 Section 8

….To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;…….

Fed Would Be Shut Down If It Were Audited, Expert Says

The Federal Reserve’s balance sheet is so out of whack that the central bank would be shut down if subjected to a conventional audit, Jim Grant, editor of Grant’s Interest Rate Observer, told CNBC.

With $45 billion in capital and $2.1 trillion in assets, the central bank would not withstand the scrutiny normally afforded other institutions, Grant said in a live interview.

“If the Fed examiners were set upon the Fed’s own documents—unlabeled documents—to pass judgment on the Fed’s capacity to survive the difficulties it faces in credit, it would shut this institution down,” he said. “The Fed is undercapitalized in a way that Citicorp is undercapitalized.”

Grant said he would support legislation currently making its way through Congress calling for an audit of the Fed.

Moreover, he criticized the way the Fed has managed the financial crisis, saying the central bank’s target rate should not be around zero.

“I think zero is the wrong rate for almost any economy,” Grant said, adding the Fed has “embarked on a vast experiment in moral hazard. Interest rates are the traffic signals in a market economy, and everything’s green. … You have to wonder whether these interest rates are the right clearing rate or rather they are the imposition of a central bank.”

Amid a disparity between analysts predicting there will be no rate hikes soon and the fed funds futures indicating tightening by the end of the year, Grant said he thinks the Fed indeed will begin raising rates as inflation creeps into the picture.

Fed funds futures have fully priced in as much as a half-point rise in the target rate from its current range of zero to 0.25 percent.

“If the hairs on the back of your neck stand up when there’s too much unanimity of opinion, then one begins to worry about this,” he said. “The Fed proverbially has been late.”

CNBC.com

Fed Unveils Lending Details After Lawmaker Pressure

The Federal Reserve unveiled its most detailed picture yet of its record $1 trillion expansion of credit, as Chairman Ben S. Bernanke responds to congressional pressure for greater transparency from the central bank.

For the first time, the Fed announced details on the number of borrowers and the ratings of securities pledged as collateral for loans. The data come in a new monthly report released by the central bank today in Washington.

Officials still stopped short of identifying the firms, a measure called for by some lawmakers and the subject of freedom-of-information requests and lawsuits.(Which I might add, the federal reserve it not bound to because it isn’t federal…..it’s private.)

Fed officials believe naming companies would undermine the central bank’s efforts to stabilize the economy, a senior Fed official said at a press briefing today.

Congressional Votes

The Fed’s effort at greater transparency in its emergency lending programs is a response to an April 2 nonbinding budget amendment sponsored by Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, and the panel’s ranking Republican, Alabama Senator Richard Shelby, Bernanke said. That proposal passed 96-2.

The Fed didn’t mention the tougher measure, also nonbinding, sponsored by Sanders, which passed 59-39 on the same day. Bloomberg News filed a lawsuit against the Fed in November seeking the names of borrowers.

Sanders, in a statement last month, threatened to pass the measure again “in a stronger form” if Bernanke failed to accept it. Bernanke told Sanders in February that identifying borrowers would be “counterproductive” and result in “severe adverse consequences for the economy.”

Read entire article at Bloomberg.com

Rick Santelli calls for Tea party on Floor of Chicago Board of Trade

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Rick Santelli of CNBC calls for a Tea Party style even in response the current and former bailout/stimulus deals.

The floor of the Chicago Board of Trade erupts in support and boo’s when asked if they want to pay their neighbor’s mortgage.

He also offers a comparison of Cuba changing over from a individualist to collectivist society and the effect it has had on their economy.

He asks that all capitalists join him in July for a new Tea party on the shores of Lake Michigan.

Check out the video at CNBC.com

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