How to solve US Debt is the big question.

This comment was issued before the Fed massive liquidity injection which is just more of the same bubble without genuine productivity growth to justify the bubble.

http://dealbreaker.com/images/thumbs/Hayman%20Letter%20to%20Investors%20Oct%2014%20final%20version.pdf

American Economy Hot air ballooms

REALITY ~ re: Mood of Consumers Posts Record Decline in October

After they are ripped off of their saving and home equities, millions are facing home foreclosure.

Now, markets are working on 401k with continuing the effects of decades of bubble burst.

We need to go through what NIKK Economy went through to wake up from long overspending on debt creating debt bubbles.

The Fed and Probe of Auction-Rate Debt

re: Fed's Evans Says "Three-Front Conflict" Complicates Monetary Policy

Our country needs to go through "Long and Hard Recession" (repenting period)!!! Since 1969, our nation is like Sodom and Gomorrah as the country was going down the corruption, morally and spiritually, as well as our wealth was starting to deteriorate. We need to revitalize our moral and ethical standards as well as our economy by going through very serious rethinking the way we live.



Probe of Auction-Rate Debt Is Far From Over: Cuomo
http://www.cnbc.com/id/26203569/

New York Attorney General Andrew Cuomo told CNBC that his investigation into auction-rate securities sold by banks and brokerages is far from over.

"You have literally dozens of institutions involved," Cumo said in a live interview. "We're starting at the top and working our way down."

Cuomo's comments came after announcing earlier Thursday a settlement with two big brokerages, PMorgan Chase and Morgan Stanley , which agreed to repurchase a combined $7 billion in auction-rate securities at face value from investors.

That followed similar settlements last week by Citigroup and Swiss Bank UBS .

Auction-rate securities are investments that resemble corporate debt, but with interest rates reset at regular auctions. The market for the securities collapsed in February amid deterioration in the broader credit markets.

Stockmarket like minefield attached with bombs

Markets are extremely manipulated. AAPL up 16% in a week, money rotating like locust eating up funds long/short.

It is not like it used to be, it is minefield with bombs attached.

Markets trading in extremely light volume, slaughtering up or down.


Steve Jobs used "LSD", no wonder! He must be sent by satan to brainwash many with filthy lyrics. He invented iPod, a plastic junk with loaded wasteful music which
wastes away many with wrong kinds of stimulus with brainwash with filthy lyrics.


http://en.wikipedia.org/wiki/Steve_Jobs

During this time, Jobs experimented with LSD, calling these experiences "one of the two or three most important things [he had] done in [his] life."[17] He has stated that people around him who did not share his countercultural roots could not understand certain aspects of his thinking.

US Market bubbles

US financial system and mentality needs to go through what Japanese went through since 1990s. US needs to deeply realize what went wrong living in debt abundance too long. The US 80s and big 90s bubbles with overspending, now bankrupting the country.

China SSEC has traded below the LT breakout bubble realizing fast that the market is in bubble, not like US does understand the troubled future blinded by greed and deceit.

SPX is trading below LT resistance; and with more debt, markets pretend to be OK, but it is just another set for a big melt down since we do not have genuine economic growth like what has happened during 2003-2007 ARM gimmick economy.

Financial Markets

bubbles with trillions of debt + "Made in Other-than-USA"

FRE & FNM are the reality. $80 to $10 and $6.

That is the fair representation of FINANCIAL MARKETS.

We do not have anything that will revive our economy especially with markets filled with "Made in Other-than-USA".

Market Signals 080612

Live Charts

Sign of the times ~~ Senator Joseph Lieberman will propose that large institutional investors, including index funds, be banned from buying commodities, according to the New York Times. The hearing will be held June 24th. Not clear what this would cover: would it ban Commodity Index investing? ETFs? I presume not, but in this environment, we will have to wait for clarification.
http://www.cnbc.com//id/25116622

Massive downsize ~ 2 decades old bubble burst

Market update: Stocks jump on better-than-expected retail sales in May. But rebounding crude oil has trimmed gains. Anheuser-Busch jumps 5% after Belgian brewer InBev offers $46 billion for the brewer. Lehman ousts 2 top executives.

~~ SPX LT ~~

Based on market price pattern and historical market performance, it is Greenspan who avoided post-"1987 crash" recession which was the catalyst of the great bubble of 1990-2000. Since then, Americans are getting slaughtered.Dragging inevitable is getting worse.

Alaska has plenty of oil, enough to supply the United States for 200 yrs

July, 1980
Author Lindsey Williams who had executive status with the 9 major oil companies on the Trans-Alaska oil pipeline has written a book stating the facts listing names, dates, and places says: http://www.survivalcenter.com/lw.html

As a former Insider I know Alaska has plenty of oil, enough to supply the United States for 200 years. Lindsey Williams say the world is no where near -
running out of oil.... http://www.youtube.com/watch?v=NbakN7SLdbk

Soros, CME exec to testify on energy manipulation ~ Legendary hedge fund manager George Soros and a top executive at the Chicago Mercantile Exchange are slated to testify next week on manipulation in the energy markets, a Senate panel said Friday, as Washington widens its probe of what's driving record-high oil prices.

Gasoline price went down during Iraq-Iran war for 8 years when Iraq attacked Iran. Since US attacked Iraq, Oil goes up, hence, it is like US is doing a favor for Iran... No wonder there is mouse-cheese chase going on with Iran.
http://en.wikipedia.org/wiki/Iran-Iraq_War

• Commodity bubble Testimony of Michael W. Masters before the Committee on Homeland Security and Governmental Affairs Commodity price is manipulated by speculators ( Index Speculator Demand Is Driving Prices Higher ).

Need to develop effective & efficient technology to extract oil.

• Utah borders Colorado and Wyoming holds about 800 billion barrels. That's three times the size of Saudi Arabia's oil reserves.

Paulson Says End to Market Turmoil Will Take `Months'

$BKX & Housing/ARM crisis

Repeal of Glass-Steagall Act
the wall street fix: mr. weill goes to washington: the long demise of glass-steagall | PBS
Not much ethics reflected on here. $BKX - Near 75 S. Colluded swindle of naive public fallen into greed deception traps. Many are serving and worshiping "money god". Falling into the deception, many have spent home equity which was the main driver of economic and market rebound from Oct 2002 low. Now, US consumers are with a mountain of personal and national debt.

• The MBA's seasonally adjusted index of rate-sensitive refinancing applications fell 8.9 percent to 2,013.5 last week. The gauge of loan requests for home purchases was little changed at 352.7 compared with 352.5 in the previous week.

• Ross: Housing Issues Scarier Than High Oil Prices "Economists allow for the sort of 'wealth effect,' or 'poverty effect,' that's probably something like 5 percent that gets reflected in consumer spending," Ross said. "If it is, that's $180 billion, or more than 1 percent of our gross domestic product."

~~~ US Debt bubble reality: Choas ~~~American taxpayers are on the hook for a record $US 57.3 TRILLION in federal liabilities to cover the lifetime benefits of everyone eligible for Medicare, Social Security and other government programs. That's $US 500,000 per household. When the liabilities of State and local governments are added to this, the total rises to $US 61.7 TRILLION. That's $US 531,472 per household, more than four times what Americans owe in personal debt and mortgages. This is now front page news on USA Today.

Paulson defends Oil price

http://www.cnbc.com/id/24781020/
"The long-term strength [of the U.S. economy] is going to be reflected in the value of our currency," he said. "Our policy has got to be a policy that's going to increase confidence in the U.S. economy. Right now we're in a tough patch." ~~> $USD value was going down for years

Greenspan + Paulson era of US debt bubble link

Oil - Bubble of decades

Derivative bubble

He joined Goldman Sachs in 1974, working in the firm's Chicago office. He became a partner in 1982. From 1983 until 1988, Paulson led the Investment Banking group for the Midwest Region, and became managing partner of the Chicago office in 1988. From 1990 to November 1994, he was co-head of Investment Banking, then, Chief Operating Officer from December 1994 to June 1998; eventually succeeding Jon Corzine (now Governor of New Jersey ) as its chief executive. His compensation package, according to reports, was US$37 million in 2005, and US$16.4 million projected for 2006. His net worth has been estimated at over $700 million.

http://investorshub.advfn.com/boards/read_msg.asp?message_id=29360311

To grasp how significant this five-fold bubble increase is, let's put that $516 trillion in the context of some other domestic and international monetary data:

U.S. annual gross domestic product is about $15 trillion
U.S. money supply is also about $15 trillion
Current proposed U.S. federal budget is $3 trillion
U.S. government's maximum legal debt is $9 trillion
U.S. mutual fund companies manage about $12 trillion
World's GDPs for all nations is approximately $50 trillion
Unfunded Social Security and Medicare benefits $50 trillion to $65 trillion
Total value of the world's real estate is estimated at about $75 trillion
Total value of world's stock and bond markets is more than $100 trillion
BIS valuation of world's derivatives back in 2002 was about $100 trillion
BIS 2007 valuation of the world's derivatives is now a whopping $516 trillion