23 April 2014

SP 500 and NDX Futures Daily Charts - Bonfire of the Inanities

"It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes...

In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society — the farmers, mechanics, and laborers — who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their government."

Andrew Jackson, Veto of the Second Bank of the United States
AAPL is the big tickle after hours.   That modern Leviathan is increasing its stock buyback program to $90 billion, is raising their dividend to 3.90, and is declaring a 7 for 1 stock split.  As they are saying on Bloomberg, now 'mom and pop' will be able to buy the stock. Huzzah!  Let's party like it is 1999, and let the fat lady start to at least begin to warm up if not actually start to sing.

Meine Damen und Herren, Mesdames et Messieurs Ladies and Gentlemen,  I am afraid that 'mom and pop' are living from hand to mouth, paycheck to paycheck, and can barely afford to buy food, shelter, gasoline, and basic health services.  It is the wealthy few that are acquiring assets with their Fed subsidized paper.  When you see the common people coming, it will not be with stock market orders in their hands. 
Here is another joke:
Everyman: Knock knock.

Benanke: Who's there?

Everyman: A living wage, the middle class, and human decency.

Bernanke: Who? What? You're not in our rolodex or our model.
And the real joke is that the Fed has had 'the man in the Street' foremost in mind when they bail out and 'regulate' the Banks.

In twenty years the Federal Reserve, under Greenspan and Bernanke, with their friends and servants in Washington and abroad, have managed to destroy one of the great icons of modern Western civilization, that was forged with sweat and blood in two world wars and the Great Depression: the US middle class.

Have a pleasant evening.

The US financial system appears to have a global image problem.