Trillions in the markets

Most of large funds in trillions, including the Fed, are sitting in the markets; and, the Fed Bernanke will not hint public until he recouped his money in the Fed balance sheet showing 2.3 trillions. Not only the Fed, most of major financial firms are waiting for small investors. For the reason, markets are still holding up.

Even though BofA reported quite bearish comments on Mortgage Mod program that 2/3 of his customers could lose the Mod program which could be signaling massive loan default, markets do not respond. The big funds are staring each other - "Nobody moves!"

http://www.cnbc.com/id/34313098

• Bank of America: 2/3 of Borrowers May Lose Mods
Mr. Schakett told me that of the 65 thousand trial modifications set to expire Dec. 31st with B of A, a full two thirds of the borrowers, while current on their payments, have not submitted the full documentation required to turn a trial mod permanent under the HAMP guidelines.

• Capital Gains: Investors May Take the Money and Run

  The volatile stock market of the past two years and the prospect of higher taxes in the years ahead will have investors crunching the numbers to limit tax exposure more than ever this year. Tax-Friendly Places to Retire

• FedEx Says Earnings Will Top Previous Guidance
• Why Does a Stronger US Dollar Worry Investors?
  • Rates to Remain Low: Bernanke
  • Dollar Reverses Gains
• Fed Will Keep Rates Near Zero Through 2010: Gross
• Something to Count On in 2010: Taxes Likely to Go Up
• Bank of America: 2/3 of Borrowers May Lose Mods
• Citi, US Deadlocked Over Capital Needed for TARP Exit
• US Consumer Credit Falls by $3.51 Billion in October
  

---

So far, Gold bounced off from 1136 retest of the 11/27/09 formation @GC 1158.80 -5.20 -0.45%, with daily momentum turned to negative.

Holiday Trading & Gold correction

We are continuing to see a correction in Gold from the noted 1225.

@GC 1141.50 -28.00 -2.39% 101,196

Is it a hope for a financial market correction or another nightmare for bears?

We haven't seen a market correction since the March low. If the recent correction in Gold bubble is a hint for the markets, it would be excellent opportunity to see a long anticipated correction.

Using the remain bailout money for job creation is reasonable even though that's what the Government is doing anyway.

• The Obama administration will lose $200 billion less than expected from the federal bailout program and is looking at using part of the savings to fund new job creation efforts. Bailout Cost Estimate Slashed

• Profits Booming, Busting Like Never Before: Bernstein
• No Winners if Yuan Rises, Says China Think-Tank
• Five AIG Execs May Quit over Pay: Report
• Obama Urges Democrats to Pass Health Care Bill
• Finally Some Heat in Copenhagen Climate Summit
  • Climate Turning Point?
  • Poll: Will Talks Deliver?
• MetLife Outlook Tops Wall Street Estimates
• GM Taps Spencer Stuart to Conduct CEO Search: Report
• Dubai Govt Ring-Fences Key Assets, Shares Tumble
  • Dubai Government Won't Sell Assets for Dubai World Debt

American Economy Reality

~ American Economy - consumer spending ~

John Smith (American Citizen) started the day early having set his alarm clock

(MADE IN JAPAN)

for 6am.

While his coffeepot

(MADE IN CHINA)

was perking, he shaved with his

electric razor

(MADE IN HONG KONG .)

He put on a

Dress shirt

(MADE IN SRI LANKA ),

designer jeans

(MADE IN SINGAPORE )

and

tennis shoes

(MADE IN KOREA )

After cooking his breakfast in his new

electric skillet

(MADE IN INDIA)

he sat down with his

calculator

(MADE IN MEXICO)

to see how much he could spend today.

After setting his

watch

(MADE IN TAIWAN)

to the radio

(MADE IN CHINA)

he got in his car

(MADE IN GERMANY)

filled it with GAS

(from Saudi Arabia )

and continued his search

for a good paying AMERICAN JOB.

At the end of yet another discouraging

and fruitless day

checking his

Computer

(Made In Malaysia),

John decided to relax for a while.

He put on his sandals

(MADE IN BRAZIL )

poured himself a glass of

wine

(MADE IN FRANCE)

and turned on his

TV

(MADE IN INDONESIA),

and then wondered why he can't find

a good paying job

in AMERICA.

AND NOW HE'S HOPING HE CAN GET HELP FROM PRESIDENT BARAK OBAMA

(MADE IN KENYA)

Hedge Fund Paid Summers $5.2 Million in Past Year
By JOHN D. MCKINNON and T.W. FARNAM
WASHINGTON -- Top White House economic adviser Lawrence Summers received about $5.2 million over the past year in compensation from hedge fund D.E. Shaw, and also received hundreds of thousands of dollars in speaking fees from major financial institutions.

A financial disclosure form released by the White House Friday afternoon shows that Mr. Summers made frequent appearances before Wall Street firms including J.P. Morgan, Citigroup, Goldman Sachs and Lehman Brothers. He also received significant income from Harvard University and from investments, the form shows.

In total, Mr. Summers made a total of about 40 speaking appearances to financial sector firms and other places, with fees totaling about $2.77 million. Fees ranged from $10,000 for a Yale University speech to $135,000 for an appearance paid for by Goldman Sachs & Co.
http://online.wsj.com/article/SB123879462053487927.html

TAX REVOLT (G.CELENTE ON FRIDAY)
http://www.netcastdaily.com/broadcast/fsn2009-0418-3b.mp3

Visual Foreclosure

http://www.youtube.com/watch?v=eAaQNACwaLw

Budget deficit triples to $957 billion for year
March deficit hits $192 billion has receipts drop 28%, outlays rise 41%

The deficit is well on its way to the $1.75 trillion -- or 12.3% of gross domestic product -- that the White House has estimated for the full fiscal year, which ends in September.
The deficit through the first six months is more than three times higher than it was at this time last year. The government has borrowed $1 trillion from the public so far this fiscal year.

In March, the deficit widened to $192.3 billion from $48.2 billion in March 2008. Outlays rose 41% to $321.2 billion from $227 billion, while receipts dropped 28% to $129 billion from $178.8 billion.

__________________________



By the way, I thought one of the great headlines in the papers from those days was, "The deluge of panic selling overwhelms the market. 19 million shares changed hands." 19 million shares changing hands caused the crash in 1929! That's about a minute today. Okay, before the Great Depression, Coolidge was telling us, at the end of his presidency, that everything was cool, and then we got Hoovered. They tried to balance the budget, and they didn't really provide any stimulus. We got Smoot-Hawley. Given the massive implosion of capital and the closing of banks, there clearly was not enough growth in the money supply. Government and the Fed just did a lot of wrong things.

So at the height of the Depression, in 1933, as Roosevelt was coming into his first term, we had 25% total unemployment; 37% (!) of non-farm workers were unemployed; 4004 banks had failed; $3.6 billion in deposits was lost. That's like trillions in dog years, okay? At least in 2009 dog years. You end up with bread lines, and the stock market just keeps going down, down, down (with a few marvelous bear-market rallies – maybe like what we are seeing today?).

Roosevelt comes along and we get the New Deal. He applied massive stimulus. By the way, his stimulus hired people. He put them to work building parks and the Tennessee Valley Authority. They were building a lot of infrastructure. He didn't put it into Democratic wish lists and permanent wealth transfers and welfare and special-interest agendas to increase the overall budget beyond what we could ever hope to actually pay for (without even more radical tax increases), which the Obama Administration is clearly doing. We'll get to the effectiveness of current policies in a moment.

Then let's look at what he did in 1937. With the economy somewhat on the mend, he tried to balance the budget, raise taxes, reduce deficit spending. And what happened? We had another deep recession and unemployment jumped back up to 20%. It was hard to pull that stimulus back out. And it's particularly dangerous to raise taxes in a weak economy.

Most of the people in this room are old enough to remember the Blue Screen of Death. Remember, you would be typing along on your computer and all of a sudden you would get this screen, saying, "You have an impossible error." (Okay, what's an "impossible" error? Clearly something happened that was possible.)

And the only thing you could do was just unplug the thing. You couldn't even turn it off -- you just had to unplug the computer. It was the Blue Screen of Death. Well, that is kind of what World War II was for the world. We unplugged the world economy, and then we started from a new base. We hit the reset button. We were at lows everywhere in the world; places were in a mess. So we began to grow from there. The bebt supercycle started. For all the recessions and bear markets, a new stability ensued, and debt and leverage began to grow.

We'll revisit that point in a moment. We are doing just what I do in my regular e-letter: I'm going to take three or four ideas, and at the end I'm going to try and tie them all together. Let's see how successful I am.

What Is Money?



Let's talk about what money is. For some people it's M-1 or M-2, and they worry that the money supply is growing too much. For some people it's gold; gold is the only real currency. I think those ideas each have their place, and there's some truths to them, but they focus us on the wrong thing.

It's a bit misleading to talk about money supply, because what money really is is roughly $2 trillion of cash and then $50 trillion in credit. Because what do the banks do? They take deposits in and then they borrow money to leverage them up. I take my credit card and I spend with it. I borrow against a house. I have an asset that rises, and I borrow against it.

We have two trillion dollars of actual cash propping up $50 trillion in credit. If we all decided to settle and pay off everything, we couldn't do it because there is not enough cash. There would be massive asset deflation. We, as a nation, are levered 25 to 1, or we were. Now, that $50 trillion is in a real sense the money supply because that is what we are all pretending is real money. I lend you money and you pretend you are going to pay me back. Then you pretend he [pointing at another attendee] is not going to call your debt for cash, and we are all going to keep the system going. Because if we all try to pay each other back at once, we are all collectively -- and this is a technical economic term -- screwed.

So we keep the system going. Now, where are we today? We are at the Great Deleveraging. We are seeing massive losses and destruction of assets, on a scale that is unprecedented. There was massive destruction of assets during the Great Depression, which caused a lot of problems, and we are seeing the same thing today. We are watching trillions simply being poofed (another technical economics term – which will drive my poor Chinese translator crazy!). We are watching people pay down their credit lines, which is one way of saying the supply of money and credit is shrinking.

This is not just in the US, but all over the world. Because when you start adding European cash-to-credit, and Japanese cash-to-credit, and Indonesian and Chinese cash-to-credit, it becomes multiple tens of trillions, and we are watching a goodly portion of that credit be vaporized. So we -- individuals and businesses -- are trying to find that $2 trillion in real cash and get some of it to pay down our debts. We are reducing that massive leveraged money supply down to some smaller number. We are hitting the Blue Screen of Death. We don't know what it is going to reset to, but we have permanently seared the psyche of the American consumer, and it is going to get reset to some lower number, about which I will speculate in a minute.

Now to give you some idea of how important credit was in our recent period of economic growth – and I keep using this slide, but it is an important slide because it shows you what would have happened in the economy without mortgage equity withdrawals. The red lines are what GDP would have been without MEWs. Notice that in 2001 and 2002 we would have had negative GDP for two years, that's 24 months. It would have been as long as or longer than the current recession. Not quite as deep, because we had the Bush stimulus and Bush tax cuts at the time. The Bush tax cuts were very important in keeping the economy rolling over in 2001 and 2002.

Auto Bailout Fails, White House Weighs Options

Reuters | 12 Dec 2008 | 05:39 AM ET

A proposed bailout of U.S. automakers failed in the Senate on Thursday night, raising the specter of an industry collapse that sent Asian markets reeling and sparked fears it could deepen the recession.

Light Volume Markets

Light volume market manipulation~ disaster selling will come after trading up in light volumes days after days.

Major Markets are trading up in light volumes with bailout hype; however, we have enormous bad economic news - millions of job cuts.

Bubbling up markets with infrastructure economic plan causes "inflation" which many can not afford and which will cause more disaster in the future as markets will quickly sell off after hyped just similar as what we have seen during the last several months.

Technically, markets were trading above 60min 200ma during the last 3 days after trading near to 50ma daily ma resistances.

With light volume market manipulation going into next week, a break from S/R will induce vst market reaction; however, it is obvious that markets are manipulated without much volume participation as many are going through financial hardship. Coming into market at this time is just taking greater risk as markets can move quickly. Markets can quickly sell-off after light volume rallies going into or during January with excuses of bad earning reports.

Markets are showing unstable price actions and also have shown strong power to move markets very quickly, therefore, coming into markets with IT/LT investment idea in the current market and economic condition is taking very high risk as we have technically projected lower targets near to DOW 6000 and SPX 600 +/- based on the traditional price movement analysis, e.g. EW, and also our economic condition is supporting the lower projected targets.

Chasing vicious sharp bear market rallies at this point is not a prudent decision.


US Job Losses May Exceed Already Gloomy Forecasts
http://www.cnbc.com/id/28142130


Bailout bubble disaster ~ Failure of US Auto Industry Could Batter Credit Markets

Bailout bubbles will ruin Americans after the hype wears out. Dire warnings of lost jobs and fading U.S. industrial might are driving the Detroit bailout bandwagon, but there's a little-noticed passenger quaking in the backseat—the credit markets.

A bankruptcy or failure of General Motors , Ford or Chrysler would threaten billions of dollars of financial instruments, with untold consequences, say credit market analysts and some pro-bailout lawmakers.

OE week

Qs is trading 30.24 in premarket based on "Bailout" disaster spending more debt money. This is more disaster because it is creating "inflation" from creating some construction related jobs which is not a real cure for our economy. We had over-capacity for decades while Americans are spending their life saving, now in debt. There is no quick cure, especially in globalization environment. It is foolish to be sucked into Bailout hype. Markets are hyping to buy, but markets have a lot of risk which can be burnt quickly. Watch S/R and GL :

New Bubble ~ the same disasters ~ Bailouts

New Bubble : Bailout Bubbles ~ the same disaster problems
Tech Bubble ~ 2000
Housing Bubble ~ 2003-2005
Derivative Bubble ~ 2007
Gold Bubble ~ 2008
Oil Bubble ~ 2008
Bailout Bubble ~ 2008

Oct 2008 Bailout Short Fortune Manipulation

The Grand Short Fortune BAILOUT LEGACY - "911 & "Bailout" - American wealth destruction using "Boom and Bust" manipulation.

http://community.marketwatch.com/groups/bible/topics/-historic-10308--bailout
http://trend-signals.blogspot.com/2008/10/cot-crush-of-largesmall-speculators.html

So how bad was October? One for the history books

1. October has traditionally been a bad month for stocks. Still, the Dow industrials' 15% drop over the last four weeks is the biggest October decline since 1987, when the Black Monday crash sent the blue-chip benchmark down 23% for the month. This month it fell 20 out of 22 trading sessions. During an eight-day losing streak at the beginning of the month, it racked up a total drop of fully 2,396 points.

COT - crush of large/small speculators

When COT shows extreme readings, it is good to pay attention to it. As commented on the previous post, we have historic and unusual manipulation of the markets at the time when the large/small speculators were not expecting the sell-off as we can see the net sentiment was most bullish in a year.

This is "Commercials" against majority; and for this time, it was "bailout" scheme by Bush/Paulson as we know how the bailout and market behaved.

Again, COT is fitting into the big LT plan of American wealth deterioration due to the big long term plan by the mega fund as the COT is showing a snap shot of the recent market sentiment prior to the bailout crisis hype vs the subsequent market sell-off.



COT ~ large and small speculators were forced to sale as market sentiment was not as bearish going into the recent market bailout crisis hype. Net market sentiment was bullish as the net long was the highest point in a year going into "bailout". Evidently, the market crisis was planned to screw up as many as possible.

Bank Bailout Detail

Treasury, Fed to Meet on Stabilizing Markets

The U.S. Treasury and Federal Reserve are meeting on Monday with leading financial market participants to finalize details on a market stabilization initiative.

Treasury - Bailout - TARP

Treasury Dept's Kashkari Outlines Implementation Of Financial Rescue Plan

The super satanic money deception

Weekly ~~> super satanic money hell robbing world.
Almighty GOD damnation to evil greed money robbing many around the world. The blood of many is on their hands inflicting hardship to many. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=32770008

Repeated financial scam in history

Unbelievable abomination greed which we have seen through Bush and Paulson. The greed power is abusing Americans to steal money/wealth and using financial markets to support Nobama so that he will sure win as we can see the POLL runs parallel to market performances. The Paulson manipulation of market can be seen as he did today to support Goldman's agenda, the biggest money donator, supporting Nobama.

God's damnation to the greedy satan worshipers is coming as Bush, Paulson, greenspan gangs who deceived many for decades to gain more power and money. God's damnation to those evil doers is coming.

God's damnation to them for handing over US to abomination obama in exchange for money and power.

To the bloody NWO deceptive evil manipulators who inflicted much hardship to many, who caused wars for money, who deceived many for gaining more money and power.

For GOD is not for deceivers and not for greedy power.

GOD is watching over all our deed and He will show His Mercy to those who are inflicted by the evil greedy power.

_______________________________________________________________


New World Money Power (illuminati)~ The evil greedy money power just stole 5 years of financial market in 2 weeks.


Repeated financial scam in history using the same political and financial drama and crisis to steal massive wealth from many using mass media brain-wash.

Just different background factors with the same plot using economic and political theories by the mega money power - illuminati. Of course, the main tool is the power of money, but practical tool is owning mass media to brain-wash crowd.

The same financial scams robbing many: 1929, 1974, 1987, 2008, etc. with different flavors of schemes.
_______________________________________________________________

May God have Mercy: Our Nation is under attack.

During Bush Administration, many Americans are repeatedly robbed.

Using/Creating "911" crisis to rob to heighten fear which resulted in:

1. robbing Tech bubble financial markets which is a way to steal Americans savings,
2. robbing higher % by further pushing down markets, and
3. setting up for higher oil price using terrorism.

Bubbling up "Housing":

1. robbing Americans home equity,
2. collapsing banks for short fortune, and
3. robbing 401k with hyped financial crisis.

As we witnessed "Bailout" hype scam, all political and financial crisis are motivated by money even creating wars.

We now have criminal financial rumors to rob Americans further putting into more debt.

Many are suffering because of the evil greed and power.

Lord, OUR GOD, deliver US from the evil greed power.

Our nation and Americans are under attack

Our nation and Americans are under attack by our own leaders along with others.

Manipulating and hyping financial crisis with timed news using controlled media.

We have major conspiracy theories going around the internet and as we have witnessed the Bailout bait scam,

any of the major financial conspiracy could be true.

Americans are under financial attack by our own leaders who are robbing us.

The recent Bailout crisis is an example of hyped crisis to rob American wealth.

We need to be alert and very careful against massive deception and detrimental manipulation.

Based on rumors, we could see very volatile markets.

May God save US from the evil power.

God bless America.



Paulson, Bush & Greenspan gangs robbed the world ~ now NEW WORLD SUPER POWER

New Super Power after decades of scheme ~ at least trillions from the decades economic and financial boom and bust scheme - tech bubble and housing bubble among other including oil price hype.


Draining Wealth around the world
http://trend-signals.blogspot.com/2008/10/world-wealth-draining-in-trillions.html


May God have Mercy: Our Nation is under attack.
May God have Mercy: Our Nation is under attack. During Bush Administration, many Americans are repeatedly robbed. Using/creating "911" crisis to rob to heighten fear which resulted in:

1. robbing Tech bubble financial markets which is a way to steal Americans savings,
2. robbing higher % by further pushing down markets, and
3. setting up for higher oil price using terrorism.

Bubbling up "Housing":

1. robbing Americans home equity,
2. collapsing banks for short fortune, and
3. robbing 401k with hyped financial crisis.

As we witnessed "Bailout" hype scam, all political and financial crisis are motivated by money even creating wars.

We now have criminal financial rumors to rob Americans further putting into more debt.
Many are suffering because of the evil greed and power.

Lord, OUR GOD, deliver US from the evil greed power.

Major Markets at supports

SPX 1056.89 after reversing from 1007.97 LT major support 35% correction

DOW 9955.50 after reversing from 9525.32 LT support. 32% correction

Nasdaq 1962.96 after reversing from 1777.02 LT support. 62% RT of Oct 2002. 36% correction

Rich Retirement: Making Millions/Billions by creating panic

Making millions/billions by shorting markets creating panic

http://www.youtube.com/watch?v=HaG9d_4zij8

Paulson gang, Roger gang... making millions /billions shorts
http://www.youtube.com/watch?v=6gZuG-52js0

It's amazing to see crazy talking heads on youtube and speaking nonsense.
http://www.youtube.com/watch?v=Y2liMPsrNlU


George Bush had something else in mind.

The Demise of a Giant Hedge Fund

While theoretically this article makes sound arguments, we are seeing hyped financial crisis to heighten panic by Paulson and Bush admin timed before the election.

Before the last of Wall Street gets sold off as day-old fish on Fulton Street or washed into the East River altogether it's worth asking, what is Wall Street these days anyway?

Bailout Bill on Alernative Energy

US Energy Independence - update

Bailout Bill on Alternative Energy:

• One-year extension for wind and refined coal energy tax credits. A production credit for electricity produced from renewable marine energy sources (meaning through wave power and river power, or by exploiting the differences in ocean temperature). Energy credits for "small wind properties," geothermal heat pump systems, and energy-efficient residential properties.

• New renewable-energy bonds. Up to $800 billion in energy bonds may be offered to the public, with a third from "public power providers," a third from governments, and the remainder from "cooperative electric companies."

• Tax credits for "cellulosic biofuels" and for "carbon dioxide sequestration." An extension of an alternative fuel credit. Tax credits for "new qualified plug-in electric-drive motor vehicles." Bicycle commuters get a nod, as do regulations aimed at "residential top-loading clothes washers."

http://news.cnet.com/8301-13578_3-10057618-38.html

Bailout Bill

Americans don't even know that they are completely robbed ~~ savings, home equities, and now in debt.

The grand scam of world freemarketeers.

Unbelievable ~ Paulson gang is still robbing 401k accounts even after the Bill is passed.

PASSED 263: 171 after 15min vote
Date: Friday, October 03, 2008 1:09:01 PM

The House approved a revised $700 billion financial rescue package, ending a weeklong battle over a controversial measure after lawmakers came under pressure to head off a growing financial crisis.

~~ Historic Friday 10/3/08 ~ Investing in Eternity ~~

Markets are riding roller coaster which is all temporal. We will be experiencing the historical moments as we approach 10/3/08 Friday.

All our moments in our lives will be accountable. Every second which we spent will be accountable. Every action which we choose to do will be accountable in eternity.

~~ Turn your eyes upon Jesus~~
Look full in His wonderful face,
And the things of earth will grow strangely dim,
In the light of His glory and grace.

http://beautifulbible.blogspot.com/2008/10/turn-your-eyes-upon-jesus.html

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Investing in Eternity
Matthew 28:18-20

The Christian life is an active life--one dedicated to working, serving, sharing, and helping. Too often, we think that being a Christian simply means showing up for church each Sunday morning and dropping something into the offering plate. That's a good habit, but if this is the sum total of your Christian life, you've missed the mark.

There is a call that Jesus Christ put on all those who would follow Him. That is, He has called us go into the world and make disciples through baptism and teaching. You may say, "Well, that applies just to ministers and missionaries, right?" No. It's is the responsibility of everyone who claims the name of Jesus.

Just look at first word of Matthew 28:19. What does Jesus say? He says, "Go!" In today's terms, He's saying, "Get off the couch! Turn off the TV! Close the computer! Get up, look at the world around you, and tell someone about Me!"

This is not a suggestion. Nor is it a word to only a handful of believers. If you have been saved by the blood of Christ, then Jesus is talking to you!

Making disciples doesn't mean you have to quit your job and become a full-time missionary to a remote part of the globe. But you could walk outside, knock on a neighbor's door, and demonstrate Christ to him. You don't need a show-stopping sermon to minister to others; you need simply a willing and open heart.

What can you do right now to "go . . . and make disciples"? Think about things you can do today to respond to God's call on your life.