Best of the Week
Most Popular
1.BrExit House Prices Crash, Flat or Rally? UK Housing Market Affordability Crisis - Nadeem_Walayat
2.Stocks Bull Market Climbs Wall of Worry, Bubble? When Will it End? - Nadeem_Walayat
3.Gold Price Is Now On Its Way To All-Time Highs - Hubert_Moolman
4.Deutche Bank Stock Price Crash - The EU Has Problems Far Beyond the Brexit - Harry_Dent
5.UK interest Rate PANIC CUT! As Banks Prepare to Steal Customer Deposits - Nadeem_Walayat
6.Gold and Silver Bull Phase 1 : Final Impulse Dead Ahead - Plunger
7.Central Bankers Fighting An Unprecedented Global Economic Slowdown - Gordon_T_Long
8.Putin Hacking Hillary for Trump, Russia's Manchurian Candidate? - Nadeem_Walayat
9.Stock Market Insiders Are Secretly Selling, Cycle Top Next Month - Chris_Vermeulen
10.Gold Sector - Is it time to Back up the Truck? – Mortgage the Farm? - Peter_Degraaf
Free Silver
Last 7 days
Ceding ICANN and Internet Control to Globalists - 23rd Aug 16
How to Spot an Oversold Stock Market - 23rd Aug 16
Gerald Celente Sees Worst Market Crash, New Military Conflict, Gold Spike to $2,000/oz - 23rd Aug 16
EU Olympics Medals Table Propaganda Includes BrExit Britain - 22nd Aug 16
BrExit Win's Britain Olympics Success Freedom Dividend, Economy Next - 22nd Aug 16
Stock Market Top Forming, but Slowly - 22nd Aug 16
(Really) Alternative Banking Systems - 22nd Aug 16
Vauxhall Zafira Fires - Second Recall Issued - Inspection Before Bursting into Flames? - 21st Aug 16
Will the Stock Market Bubble Pop Regardless if the FED Never Raises Rates? - 21st Aug 16
US Government Spending - 3 Big Stories Not Being Covered – Part III - 21st Aug 16
Silver Analysis - 20th Aug 16
SPX New Highs, Correction Next? - 20th Aug 16
Housing Bubble - The Marginal Buyer Holds The Pin That Pops Every Asset Bubble - 20th Aug 16
Gold Miners Q2 2016 Fundamentals - 19th Aug 16
Which Price Ratio Matters Most in a Fiat Ponzi? - 19th Aug 16
Big Policies, Bigger Failures - 19th Aug 16
Higher Crude Oil’s Prices and USD/CAD - 19th Aug 16
Here’s Why You Should Look for Dividend Stocks and How - 19th Aug 16
Deglobalization Already Underway — 4 Technologies That Will Speed It Up - 19th Aug 16
These 6 Charts Show Why the Average American Is Fed Up - 18th Aug 16
SPX Easing Lower - 18th Aug 16
Low / Negative Interst Rate’s Legacy - 18th Aug 16
The 45th Anniversary of The Most Destructive Event In Modern Monetary History - 18th Aug 16
USDU - An Important Perspective on the US Dollar - 17th Aug 16
SPX Completes Wave 1 Decline - 17th Aug 16
How to Quickly Spot Common Fibonacci Ratios on a Chart - 17th Aug 16
When Does a Forecast Become a Trade? - 17th Aug 16
Kondratiev Wave - The Financial Winter Is Nearing! - 17th Aug 16
Learn "The 4 Best Elliott Waves to Trade -- and How to Trade Them" - 16th Aug 16
Stock Market Bears Turning Bullish At New All Time Highs - Time to Get Worried? - 15th Aug 16
Job Seekers Sacrificed to the Inflation Gods - 15th Aug 16
A Look At Commodities and Financial Markets Trading Week Ahead - 15th Aug 16
Stock Market New Top Forming? - 15th Aug 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

How to Trade Elliott Waves

It Looks Like the Stock Market Is Saying "OMG"

Stock-Markets / Stock Markets 2012 Nov 13, 2012 - 07:35 AM GMT

By: Money_Morning

Stock-Markets

Best Financial Markets Analysis ArticleShah Gilani writes: Today I want to talk about a few things I've been scratching my head over lately.

First, about those polls leading up to the presidential contest.

How come they were so wrong? How come the candidates were inches apart right up to the finish line, and then it's like a "tortoise and the hare" kind of ending?


Did Romney even finish? Is he finished? Is the Republican Party finished?

Maybe the problem is the questions they ask, the pollsters, that is, or the way they ask them. Maybe they ask questions like a lawyer leading a witness would.

You have to wonder who pays for those polls, too. Survey says: the Super PACs - or is that the stupid hacks? Don't you wish they'd post the questions they asked along with the "Survey Says" results?

And, how stupid are the markets, make that investors, you know who you are. The day of the election, the market was anticipating a Romney victory, after all the polls said it was more than possible, so we got a smart little rally.

Then reality set in. Four more years. And you think it's going to get better?

Here's something else to chew on. If you think the Republicans are going to roll over and play dead, now that they are dead, think again.

The only way to fight back when you're dead is to kill the other guy, so you're both dead. Then, of course, you say, I was dead first, I couldn't have killed the economy, I couldn't have driven us over the fiscal cliff, they did it!

It looks like the market is saying, OMG (that's Oh My God, for you non-texters), we're going over the cliff and there's no stopping us.

Trust me on this one, that cliff everyone's been talking about - it ain't the only cliff.

There are a few others, one of which is a really big one, maybe bigger than the "fiscal cliff." I wrote about it here in Money Morning yesterday.

Let's move on, I hate talking about politics.

John Corzine, Yeah That's the Ticket
So, who do you think should be the next Secretary of the Treasury?

If you like the way things have been going on Wall Street and for the economy, then you might want to get behind Jon Corzine.

I hear he's making a bid for a comeback, and after all, he's got experience, don't you know. You know who he is, right?

He was the top gun over at Goldman Sachs (NYSE: GS) before he became a public servant, which was before he ran that little house of horrors MF (you know what that stands for, don't you?) Global.

Corzine has all the qualifications, you know. Oh, wait, he may not be available. He's hiding out until that seat at the head of the table over at the Federal Reserve is open. After all, after Goldman Sachs, only the Federal Reserve will do.

Me, I like Sheila Bair. But her chances at Treasury are exactly in-between slim and none.

Like I said, I hate politics.

Another Bright Idea From JP Morgan
Let's talk about something else I hate. The big banks. Let's talk about one in particular.

JP Morgan Chase & Co. (NYSE:JPM) just got permission from the Fed to buy back $3 billion of their stock. They came out on Thursday and said so.

They said, look at us, look how well we're doing. We're making so much money that we are going to return more of it to our shareholders.

What? Or, if you are a texter... WTF?

At the same time they announced they were able to continue to buy back shares (they wanted to buy back $12 billion worth this year, but a little $2 billion loss that CEO Jamie Dimon declared they were dealing with in London, back in May, turned out to be $6 billion and counting), they quietly also said their projected litigation-related costs, which includes payouts for getting caught mooning the public, rose in the past three months from $5.3 billion to $6 billion.

And they want to buy back more shares?

Why don't they just declare a special dividend if they really want to give money back to shareholders?

Why are they trading their stock? At the end of the day, they could spend $12 billion buying back stock, and the stock price doesn't go anywhere. They spent $11 billion in 2011. Look how well that worked. Not.

The bank game of buying back stock to reduce shares outstanding and to support the stock price (for bonuses and options grants and stuff like that) is bogus. Yeah, it's supposed to make earnings per share better, so what. It's just a game to reduce the pile of shares now, so they can sell more shares for capital later, when they need it and it's expensive.

Why don't regulators just make the big banks hold all that money they're making so they never get into trouble again?

And when they have so much money sitting around, we can break them up into hundreds of smaller banks who will actually benefit the economy and not soak us all when they have to play their giant economies of scale revenue-gathering schemes to line their deep pockets.

I hate big banks even more than I hate politics (make that politicians).

Source :http://moneymorning.com/2012/11/13/it-looks-like-the-market-is-saying-omg/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife