10 February 2008

Political Circuses, but Where's the Bread?

For those of us who enjoy a voyeuristic fascination with the US political process, the 2008 presidential election continues to satisfy beyond all expectation, even for an election that will likely choose a leader who, for better or worse, will be inheriting a mantle similar in many ways to that of Franklin Delano Roosevelt.

The flip flops have been breathtaking.

The Republicans

Not all that long ago, Rudy Guiliani was among the emotional and poll tested frontrunners for the Republicans, whereas John McCain was floundering in terms of money and momentum, with Mitt Romney clearly the annointed choice of the powerful conservative wing of the party.

Mike Huckabee was appealing for his personality and no apology backwoods persona, with Fred Thompson a polished version of the same with a faux-Reaganesque patina. Remember when Fred announced his candidacy on late night television to breathless anticipation? And of course, Mike Bloomberg stood ready to come in to a possibly brokered convention to save the day. Ron Paul always had the mark of a third party candidate in this party of ultimate insiders.

Cut to February 2008, with Mike Huckabee having morphed into the evangelical alternative to the front running John McCain who is anathema to the conservative and religious base of the Republicans, excepting his pronounced hawkishness for war. Thompson turned out to be asleep on the porch, and Romney and Guiliani folded their cards faster than a three card monty game when the police come round the corner. The Guiliani collapse was breath-taking, possibly setting a record for the most money spent to obtain one delegate. Rudy may find a life as the designated Homeland Security Chief, but he would probably prefer attorney general. Romney's fold was most likely a deal of sorts, with some big backing having shifted to McCain behind the scenes.


The Democrats

What started out as the most motley collection of candidates in recent memory has sorted itself out to two frontrunners, and now appears headed for a brokered convention with the opportunity for controversy on the level of the 2000 US elections, hanging chads and all. A brokered convention is one is which the candidate is not chosen by the primary votes, but in back room deal-making by the party politicos.

Barack Obama came seemingly out of nowhere, and having gathered significant backing from key elements of the Democratic party (celebrities and Kennedys), has nudged the Lady Hillary sufficiently to make her weep quietly (although we would view those tears with the same caution as we would the rattles from a desert viper).

In primary election delegates Hillary and Obama are running neck and neck, with Obama having pulled ahead in the donations area. This is a remarkable turn of events given the Clinton reputation for pulling in the big donation bucks. And the 'first black president' Bill Clinton turned into a pale comparison of his former self when his condescending remarks sounded presumptuous. There is an obvious Clinton fatigue in the country which the Democrats would do well to observe.

This election is remniscent of the 1976 elections that catapulted the relatively unknown Jimmy Carter into the Presidency, as the after shocks and weariness of the Nixon presidency drove the public to cast their votes for CHANGE. After Bush, we're there again.

Time to start keeping a close eye now on the Democratic delegate counts. And be aware that no matter how the actual primary elections turn out, the democratic contender may very well be chosen at the convention by party regulars who are unelected and not obligated by any of these pre-election votes. Won't it be something if Obama goes into the convention with the delegates, and the Clintons manage to deal for the actual nomination behind closed doors? After all, Slick Willy himself is a super delegate. McCain could ask for no better break.



Let the games begin!

US Dollar Long Term Chart

If this was a stock chart, what would you think about it?
Would you be buying it now?




BILLIONS SERVED!


09 February 2008

Goldman To Lose Their Sachs?


Another Goldman Perk: Sex Changes
Fortune Magazine, February 8, 2008

Fortune Magazine: Unusual Perks

Goldman Sachs bankers and traders enjoy famously big bonuses and, this year, a little extra job security thanks to their firm's ability to steer clear of the worst effects of the subprime mortgage debacle.

Now, they can add something else to the list of reasons why life is great at Goldman: free sex-change surgery.

Fortune.com reported Friday that Goldman added coverage of sex-reassignment surgery to its medical plan last year. The article was part of a sidebar on “unusual perks” that came with Fortune's latest ranking of the 100 best companies to work for in the United States. (Goldman was No. 9, up significantly from No. 36 last year.)

Goldman employees can undergo the procedure, which normally costs anywhere from $5,000 to $150,000, and have it paid for entirely by their medical insurance.

Goldman isn't the first financial firm to cover sex-change surgery for its workers. A recent survey of more than 1,000 employers conducted by the Human Rights Campaign found that many banks, law firms and other large companies have added at least partial coverage of transgender treatments to their medical plans.

Bank of America, Wachovia and Deutsche Bank are among the firms who now cover such treatments to some extent, Fortune.com said. Goldman and Bank of America will cover the cost of the actual operation. At Wachovia, sex reassignment surgery is considered elective, and so the operation is not covered but related prescriptions and post-operative counseling are.

Goldman's enhanced medical coverage is part of the firm's efforts to “recruit and retain a more diverse workforce,” a Goldman spokesperson told Fortune.

The expanded coverage may cost employers a bit more in the short term, but it's a small price to pay to attract and keep top talent, Pauline Park, chair of the New York Association for Gender Rights Advocacy, told Fortune. “[A]ny employer that does not clearly include gender identity in their employment policies may send a signal that they're not supportive,” she said.

08 February 2008

SP500 Bear Market Update

Continuing the comparison of the 2000-2003 bear market with
the recent decline from the October 2007 market top.

We are at key support.


















The next step could be a big one.


















We just noticed this evening that the current measuring objective of the active chart formation,
the big Head and Shoulders top, is 1182 which is roughly a 25% decline from the October 2007 top.
So we have an intermediate target if this chart comparison is to continue successfully.

The bear market decline of 2000-2003 ended up down roughly 47% from the top.
















That would be about 836 on today's charts, for those
at home who are keeping score.

What Happened in the Last Recession and Bear Market?

Yippee ki-yay....