SP 500 and NDX Futures Daily Charts - Into the Maw of The Beast

"It was the incarnation of blind insensate Greed. It was a monster devouring with a thousand mouths, trampling with a thousand hoofs: it was the Great Butcher — it was the spirit of Capitalism made flesh."

Upton Sinclair

The US stock market was very volatile today, plunging on the open, rallying back to triple digits gains in the Industrials, and then plunging back again into the close.

Yeesh, what next.

I think the currency war and its collateral damage in the oil market is roiling markets.

FOMC tomorrow.

Have a pleasant evening.

 

 

 

Matt Taibbi On the Passage of the Spending Bill With Wall St Giveaway By the Senate

A brief word from Matt Taibbi on the passage of the 2015 Spending Bill by the Senate.

Basically, the American People were pushed aside by the Congress to favour JPM and Citigroup who lobbied heavily for public coverage for their gambling on derivatives.

We might expect this from the Republicans, although it is difficult to understand how they can rationalize supporting corporate welfare when they are so tough on entitlements for the poor.  And as for the Democrats...

"If the Democrats actually stood for anything other than sounding as progressive as possible without offending their financial backers, then they would do what Republicans always do in these situations: force a shutdown to save their legislation. How many times did Republicans hold the budget hostage to rescue the Bush tax cuts?

But the Democrats won't do that here, because they're not a real party. They're a marketing phenomenon, a big chunk of oligarchical Blob cleverly sold to voters as the more reasonable and less nakedly corrupt wing of a two-headed political establishment.

So they'll punt on this issue in the name of "maturity" or "bipartisanship," Wall Street will get a nice win, and Hillary Clinton or whoever else is being set up as the Blob candidate on the Democratic side will receive an avalanche of Financial Services donations to stave off Warren (who will begin appearing in the press as an unhinged combination of Lev Trotsky and Spartacus). A neat little piece of business all around. I don't know whether to applaud or throw up."

Read the entire Taibbi article in Rolling Stone here.

Moyers: Democrats Bow Down To Wall Street

The Clintons are the founders of the Wall Street wing of the Democratic Party.

The Republicans are even more servile in pandering to Big Money, but that is little comfort for the cause of genuine reform.

 

And similarly, Elizabeth Warren calls out the Democratic and Republican leadership for putting the public back at risk for the Banks gambling on derivatives.

 

Related:  Democrats Who Voted For Cromnibus Had On the Financial Contributions Feed Bag

               Senate Passes Spending Bill Including the Wall St Derivatives Package

 

Democrats Bow Down to Wall Street

Gold Daily and Silver Weekly Charts - Dreaming of a White Christmas

Stocks continued lower, putting in their worst week since May 2012.

Oil cracked into the $50's. We paid 2.25 per gallon for regular gasoline yesterday. Supply has been healthy, but demand has been off. So this is a mixed bag. We need to keep an eye on retail sales and wages.

I have a suspicion that a lot of the stock selling is part of an end of year portfolio cleansing. We will know more if we see how it goes next week.

This is an FOMC week coming up, and I have included the economic calendar for the entire week below.

I posted an excerpt of an interview with Russian economist Mikhail Khazin last night, and included a notice from TF Metals about the CME adding 'trading collars' to the precious metals, with some fairly broad limits to protect against volatility.    If we start seeing $100 swings in gold and $3 in silver, I suspect it might be a slightly different ball game. 

 

I strongly suggest you read this as Mr. Khazin suggest a reason why this action by the CME might have been taken here.

There was late breaking news on Bloomberg that Austria is considering repatriating their gold.   It will be interesting if this move to secure gold supplies becomes a trend.

 

Next year might be rather eventful in the precious metals.  I am not sure how much action we will see for the rest of December.  The Comex warehouse action was very boring yesterday.  As Mr. Khazin said, Russia and China will not attempt to take on the gold cartel on their own turf in paper gold, given their access to leverage and hot money.  Rather, the play is to keep buying bullion on the world markets, and wait for the paper chase to run up hard into the reality of a lack of physical supply.

 

Or as I have often suggested, they will continue to drain off the physical supply, and at some point, will ask the pyramid of rehypothecated paper bullion dealers to 'stand and deliver.'

 

And I am dreaming of a real 'white Christmas.'

 

I am dreaming of a time when we pay people a fair and living wage, and do not stand idly by while they are oppressed by powerfully connected con men and thieves.  And we do not feel justified in treating God's children like animals because of the color of their skin, the cut of their clothes, or the way in which they pray to Him. 

 

I am dreaming of a day when reformers will love the truth for its own sake, and not for the power, money, and influence that they think they can gain from using it for their own selfish purposes.  Reform is a dangerous game, for we become tempted to think that we are better than we really are because we spend so much time looking at the other fellow's muddy feet.

 

I am dreaming of a Christmas in which we will stop maiming children, and torturing their parents, and destroying their homes, because we can.  I dream of a time when we see God rising up before our nation, in all His power, overwhelming our foolish 'exceptionalism' with His majesty.

 

And I am dreaming of a day when Christians will love Christ when He is all grown up, as much as they do when He is presented as an adorable infant.  And that we will see that embodiment of all that is truly human, and a call and challenge to love, when we are tempted to be harsh and judgemental, dismissive of the common people, and those who work so hard in the vineyards, and like proud Pharisees overlooking our own many shortcomings in self-righteousness.

 

I dream of the day when human lives are considered unequivocally more precious than any metals or money.

 

And most of all, I ask you to remember me in your prayers, as I will be remembering you.

 

Have a pleasant weekend.