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.

Bernanke Talks Up the Bankers' Balance Sheet Boogie Woogie - The Truman Sparks Award

Sometimes when I just don't have the words someone more articulate than me on the subject says it all.

Confounded Interest
Bernanke: QE Was For “The Man On The Street”
(Wall Street, That Is!) and Their Electrical Parade
By Anthony B. Sanders

Zero Hedge has an amusing story today based on former Federal Reserve Chairman Ben Bernanke’s speech to the Economic Club of Canada (for a cool $250,000).

*BERNANKE: FED ACTIONS DIDN’T FAVOR WALL STREET OVER MAIN STREET (QE Was For “The Man On The Street”)
* Bernanke Says US Economy Is Heading Towards Complete Recovery

Huh?  The lime colored box shows the rewards of Quantitative Easing to the Man on the Street. In Kingman Kansas, perhaps. Stagnant real household income, employment to population ratio and YoY growth in hourly wage income. And flat-lined mortgage purchase applications.



But for Wall Street, it has been roses, cigars and snifters of cognac.



Of course, retirement funds for workers and investors in the stock market do benefit from The Fed’s quantitative easing. Yet, the jobs market remains stalled while creating low-paying and part-time jobs.

Perhaps Bernanke wants Disney World to rename the Main Street Electrical Parade as the Wall Street Electrical Parade!

Fed policy under Greenspan and Bernanke in two and one half minutes.

Presenting the 'Truman Sparks Award' for Orthogonal Banking Regulation and Obtuse Monetary Policy. - Jesse

Gold Daily and Silver Weekly Charts - Hotel California

Its funny the way that 476,000 ounces of gold have been 'delivered' so far this month, but the warehouse inventories never seem to go down.

Like the Hotel California, you can check out, but you can never leave.

When I was seconded to the ITU in Genève for many weeks at a time, I used to stay in a smaller hotel on the Rue Gevray that was called the Hotel California. It was very convenient because they had efficiency rooms on the top floor with a small kitchen and a balcony with a nice view of the lake.  And it was not a bad walk up the hill to the old League of Nations building, and an equally pleasant walk over to the restaurant areas.

Alas, they have long been out of business. I heard that for some time they were apartments, and then were taken over by student squatters.    I am just sorry that I never acquired one of their signature bath mats, lol.

It was a typical little European hotel, very friendly.  They held the room if one of the regulars took off on the weekend for a trip into the French countryside, or east into the Schweizer Alpen.  I received a Christmas card every year from them for quite some time. 

I understand why no gold seems to be leaving the Comex warehouses, but it is still kind of funny. The 'claims' are really just warrants, and they are passing them around for shits and giggles for the moment. The Comex is not so much a 'real market' of buyers and sellers who actually produce and use the things that they trade, but more of a game of traders, punters, and banksters. 

The drawdowns we saw over the past year were somewhat unusual, especially along with those of so many of the funds and ETFs. I understand the *possible* alternative explanations, especially those peddled by Shill & Troll. But I think something is up behind the scenes.

So let's see what happens. If I am right, at some point the convergence with reality could be impressive.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Wash Cycle

"People feel like the system is rigged against them, and here is the painful part, they’re right. The system is rigged. Look around. Oil companies guzzle down the billions in profits.

Billionaires pay a lower tax rate than their secretaries, and Wall Street CEOs, the same ones the direct our economy and destroyed millions of jobs still strut around Congress, no shame, demanding favors, and acting like we should thank them. Does anyone here have a problem with that?"

Elizabeth Warren

If you have been short this market recently that most likely has been some pain. 'Never short a dull market.' And especially a dull (low volume) market in which the Fed and their Banks are running rampant with free, hot money.

I think we *might* be nearing the end of the wash cycle, and I could be on the lookout for something on the downside, but not quite yet. There is still some room to go higher and shorting is an advantageous, short term strategy at most times.

Disgraceful really, but they do not care.

Have a pleasant evening.