0%bama seeks relief at DOW 6K ...big loser 0zero
Burled Frau
Dow Ends Around 9,900; Financials Skid
Published: Monday, 8 Feb 2010 | 5:18 PM ET Text Size
By: Cindy Perman
Writer
Stocks tumbled Monday as financials and commodities sold off amid jitters
about the global recovery.
The Dow Jones Industrial Average dropped 103.84, or 1 percent, to close at
9,908.39, the first time its closed below 10,000 since November. The S&P 500
shed 0.9 percent and the Nasdaq lost 0.7 percent.
Major U.S. Indexes.
DJIA 9908.39 -103.84 -1.04 %0.
NCOMP 2126.05 -15.0701 -0.71 %0.
SPX 1056.74 -9.45 -0.89 %0
Worries about debt problems in Greece, Portugal and Spain have dragged on
markets across the globe for the past week as many worry that these are the
next shoes to drop. European finance ministers tried to reassure Group of
Seven leaders that the debt situation there is under control but it hasn't
been as easy convincing investors, who are backing away from riskier bets.
In addition to battling debt, Greece is faced with an assault on another
front: Organized labor. Unions are threatening more strikes if the Socialist
government goes through with a tough cost-cutting plan.
F. George McDuffee
<ach...@jawol.jah> wrote:
<snip>
>Worries about debt problems in Greece, Portugal and Spain have dragged on
>markets across the globe for the past week as many worry that these are the
>next shoes to drop. European finance ministers tried to reassure Group of
>Seven leaders that the debt situation there is under control but it hasn't
>been as easy convincing investors, who are backing away from riskier bets.
=============
Because of globalization and the "brave new world order" its all
one economy.
Obama and his administration have very considerable
accountability for this situation.
While it is true that many of these problems are the result of
long standing practices going back many years, it is also true
that the Obama administration did not make the required
regulatory changes, pounding these up the banker's nose [I said
NOSE] with a 10 pound maul as required during the 18 months since
the collapse of Lehman Brothers.
(1) A new super Glass-Steagall-Volker act has not been enacted.
(2) Derivatives and commodity trading/speculation are still
largely unregulated.
(3) A "small enough to fail" market share and capitalization cap
on financial institutions including banks and insurance companies
has not been imposed.
The old observation "If you always do what you've always done,
you'll get what you always got," remains true. In this case
another bubble burst, resulting in another market crash ,and
another tax payer screw job.
Unka George (George McDuffee)
..............................
The past is a foreign country;
they do things differently there.
L. P. Hartley (1895-1972), British author.
The Go-Between, Prologue (1953).
F. George McDuffee
<gmcd...@mcduffee-associates.us> wrote:
<snip>
>While it is true that many of these problems are the result of
>long standing practices going back many years, it is also true
>that the Obama administration did not make the required
>regulatory changes, pounding these up the banker's nose [I said
>NOSE] with a 10 pound maul as required during the 18 months since
>the collapse of Lehman Brothers.
>
>(1) A new super Glass-Steagall-Volker act has not been enacted.
>(2) Derivatives and commodity trading/speculation are still
>largely unregulated.
>(3) A "small enough to fail" market share and capitalization cap
>on financial institutions including banks and insurance companies
>has not been imposed.
===========
I have received several off-list emails on this observation.
Todays Wall Street Journal has an article that parallels this.
See
http://online.wsj.com/article/SB20001424052748703630404575053514188773400.html
F. George McDuffee
>long standing practices going back many years, it is also true
>that the Obama administration did not make the required
>regulatory changes, pounding these up the banker's nose [I said
>NOSE] with a 10 pound maul as required during the 18 months since
>the collapse of Lehman Brothers.
>
>(1) A new super Glass-Steagall-Volker act has not been enacted.
>(2) Derivatives and commodity trading/speculation are still
>largely unregulated.
>(3) A "small enough to fail" market share and capitalization cap
>on financial institutions including banks and insurance companies
>has not been imposed.
===========
I have received several generally favorable off-list emails on
this observation.
Today's Wall Street Journal has an article that parallels this
observation. See
http://online.wsj.com/article/SB20001424052748703630404575053514188773400.html
<snip>
Banking is based on trust. The banks get our paychecks and hold
our savings; they know where we spend our money and they keep it
private. If we don't trust them, the whole system breaks down.
Yet for years, Wall Street CEOs have thrown away customer trust
like so much worthless trash.
Banks and brokers have sold deceptive mortgages for more than a
decade. Financial wizards made billions by packaging and
repackaging those loans into securities. And federal regulators
played the role of lookout at a bank robbery, holding back anyone
who tried to stop the massive looting from middle-class families.
When they weren't selling deceptive mortgages, Wall Street
invented new credit card tricks and clever overdraft fees.
In October 2008, when all the risks accumulated and the economy
went into a tailspin, Wall Street CEOs squandered what little
trust was left when they accepted taxpayer bailouts. As the
economy stabilized and it seemed like we would change the rules
that got us into this crisis�including the rules that let big
banks trick their customers for so many years�it looked like
things might come out all right.
Now, a year later, President Obama's proposals for reform are
bottled up in the Senate. The same Wall Street CEOs who brought
the economy to its knees have spent more than a year and hundreds
of millions of dollars furiously lobbying Washington to kill the
president's proposal for a Consumer Financial Protection Agency
(CFPA).
<snip>
========
How long are the American people going to put up with a financial
system where the leaders state "crises should be expected every
five to seven years." J.P. Morgan CEO Jamie Dimon.
http://www.cbsnews.com/blogs/2010/01/13/business/econwatch/entry6093076.shtml
"Not to be funny about it, but my daughter asked me when she came
home from school 'what's the financial crisis,' and I said, 'Well
it's something that happens every five to seven years,''' Dimon
said. "We shouldn't be surprised, but we need to do a better
job."
This coming on top of Lloyd Blankfein's [head of Goldman-Sachs]
statement that the "bankers are doing gods work" does nothing to
inspire my confidence in the mental stability of the financial
industry leadership.
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.ece
FWIW -- the US banking and financial industries [or more exactly
their executives, officers and directors] appear dead set on
committing mass professional suicide, ala Jonestown. In and of
itself I do not see this as a serious problem, but they appear
determined to take everyone and everything with them when they
go.
When individuals exhibit these tendencies they are labeled
psychotic, and are regarded as posing a danger to themselves and
others. The normal result is immediate civil commitment in a
secure mental health facility, medical examination/intervention
and as required forced medication.
At the very least individuals with such overt "death wishes"
should be prevented from continued employment in highly sensitive
positions such as airline pilots, nuclear power-plant operators
AND RUNNING THE NATIONS FINANCIAL SECTORS either as regulators or
executives.
F. George McDuffee
<ach...@jawol.jah> wrote:
<snip>
>Published: Monday, 8 Feb 2010 | 5:18 PM ET Text Size
>By: Cindy Perman
>Writer
US stock bubble now reinflated to about 10,400 DJIA [19 Fed 10],
with no supporting data such as improved earning/increased
dividends, new products, etc., but apparently with more tax payer
dollars through TARP, the FRB and other "secret" recovery plans.
[Shades of Richard Nixon!!!]
CNN has an article about the application of the RICO
http://en.wikipedia.org/wiki/Racketeer_Influenced_and_Corrupt_Organizations_Act
statutes to the tobacco companies, seeking disgorgement of their
illegal profits, totaling about 280 billion $US for sales and
promotions to young people [under 18].
http://edition.cnn.com/2010/US/02/19/scotus.tobacco/
This case should provide a clear indication if the Supreme Court
is "fixed" in favor of the corporations.
[click here for possible SCOTUS theme song
http://popup.lala.com/popup/576742270266937725
video
http://www.youtube.com/watch?v=IwN1JTYi5w4 ]
Now if the DoJ will just apply RICO ( and force disgorgement ) to
the banks, brokerages, hedge funds, mutual funds, venture capital
funds, private equity funds, money market funds, insurance
companies, etc. etc. and their officers and directors...