15 October 2019

Stocks and Precious Metals Charts - Hope Floats - Stock Option Expiration on Friday


"Among the items of interest in JPMorgan Chase’s written [earnings] presentation was that it spent $6.7 billion in this past third quarter buying up its own stock and thus boosting its stock price artificially beyond outside investor demand. The third quarter buybacks of its stock came on top of spending $5 billion in the second quarter and $4.7 billion in the first quarter, bringing its net repurchases of its own stock just so far this year to a whopping $16.4 billion — money that could have otherwise gone to loans to small businesses to kickstart innovation and job growth in America.

The [House Financial Services'] Subcommittee notes that buybacks have skyrocketed from less than $200 billion in 2000 to a record $811 billion last year. The mega banks on Wall Street are responsible for a big chunk of those dollars.

Another unprecedented and totally crazy aspect of today’s banking scene is that criminal felony charges no longer matter. You can be a bank like JPMorgan Chase, holding $1.6 billion in deposits for risk-adverse savers, while also being regularly charged with crimes."

Pam and Russ Martens, Capping the Craziest Banking Era in US History

Stocks were off to the races today, on optimism for both a US-China trade deal and a Brexit deal.

The usual Banks (JP Morgan Chase, BofA, Citi, Barclays, Deutsche Bank) have been accused of long term collusion and criminal practices in rigging the bond market in Mexico. Ho hum.

There will be a stock market option expiration on Friday.

Have a pleasant evening.



14 October 2019

Stocks and Precious Metals Charts - The Corruption of the Public Mind and Flight Into Fantasy


"It is no exaggeration to say that since the 1980s, much of the global financial sector has become criminalised, creating an industry culture that tolerates or even encourages systematic fraud. The behaviour that caused the mortgage bubble and financial crisis of 2008 was a natural outcome and continuation of this pattern, rather than some kind of economic accident.

This behaviour is criminal. We are talking about deliberate concealment of financial transactions that aided terrorism, nuclear weapons proliferation and large-scale tax evasion; assisting in major financial frauds and in concealment of criminal assets; and committing frauds that substantially worsened the worst financial bubbles and crises since the Depression.

And yet none of this conduct has been punished in any significant way."

Charles H. Ferguson, Heist of the century: Wall Street's role in the financial crisis


"Gold is a trust anchor.  With shares, bonds and other securities: there is a risk to everything.  If things go wrong, prices may fall.  But, crisis or not, a gold bar always holds value.  Central banks such as DNB have traditionally had a lot of gold in their house.  Gold is the ultimate 'nest egg': the trust anchor for the financial system.  If the entire system collapses, the gold stock provides a collateral to start over.   Gold gives confidence in the power of the central bank's balance sheet.  That gives a safe feeling."

Dutch Central Bank Statement



"Being in a position to know and nevertheless shunning knowledge creates direct responsibility for the consequences.”

Albert Speer


"Evil, I think, is the absence of empathy."

Captain G. M. Gilbert, Army Psychologist, Nuremberg Trials


"Those who corrupt the public mind are just as evil as those who steal from the public purse."

Adlai Stevenson

The oligarchs and demagogues of Rome famously provided their public with 'bread and circuses.'

We are being given platitudes and fantasy, often designed to keep the readers in a continual state of distraction, and outrage, addicted to the consumption of junk food and cheap thrills for the mind. 

Stocks vacillated around unchanged today. They could not really bring themselves to admit that the 'trade deal' was just another story.

But it was an odd sort of day. The VIX dropped again, but the Dollar, gold, and silver were all higher together.

Let's see how earnings and the international news affect prices this week.

There will be a stock options expiration on Friday.

Have a pleasant evening.







11 October 2019

Stocks and Precious Metals Charts - Let's Make a Deal - Working for the Weekend


“A dead thing can go with the stream, but only a living thing can go against it.”

G. K. Chesterton, The Everlasting Man


"Some day an absolutely correct verdict—if you like, a perfect critique—will be passed on what each of us is.   We shall not only believe, we shall know, beyond doubt in every fibre of our appalled or delighted being, that as the Judge has said, so we are: neither more nor less nor other.  We shall perhaps even realize that in some dim fashion we could have known it all along.  The unanswerable and (by then) self-evident truth about each will be known to all."

C. S. Lewis, The World's Last Night


"We can believe what we choose. We are answerable for what we choose to believe."

John Henry Newman


"And because of the increase in lawlessness, the love of most will grow cold."

Matthew 24:12


Stocks soared on the the optimistic hopes for the trade deal with China that was announced today, and were further inflamed by the 'teasters' leaked out during the day about the expanded scope of the deal.

And safe havens like the precious metals and bonds and the Dollar were sold.

The market's ardent faith in the pronouncements coming from the White House about the dea' was almost touching.

We eagerly wait for the details of the complete deal, in addition to the agricultural purchases which both countries needed and wanted.

"Time to buy land, farmers!" says the President, always the real estate developer.

The existing 25% tariffs will not be increased to 30% in October.  No decision has been made on the broader December tariffs yet.

Stocks faded into the close on profit-taking, and the metals regained much of their losses.  Silver actually closed up for the day.

On Monday the Bond market will be closed for Columbus Day.  Equity markets will be open.

Let's see what additional information and analysis comes out.

Need little, want less, love more. For those who abide in love abide in God, and God in them.

Have a pleasant weekend.