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In this episode of the Keiser Report, Max Keiser and Stacy Herbert examine stories about those who, using spoof trades, bogus securities and fictitious capital, steal real wealth and income. They discuss how it is that every benchmark index is rigged and introduce the concept of the ‘bonus benchmark.’ In the second half, Max talks to Dr. Michael Hudson, author of The Bubble and Beyond, about debt and wage deflation [...] Credit default swaps (CDSs) are one instrument that has shown a marked decline. The BIS report showed the total notional outstanding for CDS contracts for H2 2012 dropped 6.91% to US$25.069 trillion, from US$26.93 trillion for H1 2012. This means the cumulative reduction for CDSs’ outstanding notional since June 2011 is US$7 trillion – partly due to contract compression, whereby economically redundant derivatives trades are terminated without changing the net position [...] by Phoenix Capital Research
The markets rallied hard yesterday, thanks to promises of more from Europe. However, the global economy is once again contracting with the bad data coming out of both China and Germany: two of the biggest exporters in the world. With that in mind, the S&P 500 looks as though its initial jump to the upside from its rising wedge pattern could have been a false breakout: a move [...] by Phoenix Capital Research If you happened to simply glance over the headlines in the financial media over the last few months, you’d think the European Crisis was over. In November, no less than France’s Prime Minister, Spain’s Prime Minister, and even Germany’s Finance Minister suggested that the worst is over for the Euro Crisis or that the Crisis as a whole was over completely. Unfortunately for them, the markets don’t seem to [...] from The Economic Policy Journal: The popular web-based events betting site, InTrade, has shutdown, citing irregularities. The exchange has closed out all trades.The exchange has frozen all accounts and will not be allowing withdrawals until further notice. The following is posted on the frontpage of the In Trade web site. To Our Customers: With sincere regret we must inform you that due to circumstances recently discovered we must immediately cease trading activity on www.intrade.com. These circumstances [...] Zerohedge.com Six years after the onset of the traumatic US housing crisis, the optics are there that suggest a stabilization is occurring. Whether real or manufactured by record-low foreclosures, bank supply withdrawals, and fed-subsidized cash REO-to-rent trades, the sad truth is that jobs (and the GDP-enhancing multiplier effect that they create) are just not coming. Even Bob Shiller prefers the potential for 4% gains in stocks over housing risk in the [...] Some Trader Has Made A Very Big Bet That Something Very Bad Will Happen Within The Next 60 Days From Cashin’s Comments: A Very Big Bet In A Somewhat Unlikely Instrument – Jim Brown, the ever-alert consummate professional over at Option Investor pointed us to a rather unusual trade. Here’s what he wrote in last night’s edition of his valuable newsletter: In past years I have reported on trades that were so large it [...] From All Star Charts: There are certain patterns in markets that get me pumped up. One of them is the long consolidation that fails to break out in either direction for a sustained period of time. The way I look at it, when something trades in a prolonged, tight range, it’s building momentum for a potentially ultra-powerful move. The breakout in the Dow Jones Transportation Average these past few months is the perfect [...] Do you find the Fed’s announcement of QE 4 confusing? After all, why would the Fed engage in more QE when it just announced QE 3 three months ago? In this excerpt from my latest issue of Private Wealth Advisory I outline the real reasons the Fed announced more QE (virtually no one I’ve spoken to understands this). I also explain which investments will profit from this monetary madness and how [...] And it was shaping up to be a slow news days. From Bloomberg: ROCHDALE SAID TO SEEK CAPITAL INJECTION AFTER TRADING ERROR By that logic, can one imagine the epic bailout Rochdale would need if Bank of America trades back to its rightful price well over 50% below current levels? Also, why is Rochdale trading on its own [...] On October 24, a French appeals court threw the book at former junior trader Jérôme Kerviel who, in 2008, had been hung out to dry by his employer, French mega-bank Société Générale, for having—so alleged the bank—blown €4.9 billion of its money in just about no time. He’d risked up to €50 billion with trades the Banking Commission later called “simple,” far beyond his limit of €125 million. Kerviel never [...] NEW YORK (CNNMoney) — In the new age of high speed trading, U.S. Treasuries could become the next flash crash victim. High-frequency trading now accounts for roughly 40% to 50% of the daily volume in Treasuries, compared to a “negligible amount” just five years ago, according to research firm Tabb Group. The enormous size of the Treasuries market makes it appealing to firms that make money from huge volumes of trades. As with [...] By Henry Blodget | Daily Ticker
Many of those who work on Wall Street go through a process in which they gradually learn that what is perceived as “smart investing” is often unbelievably dumb. Specifically, they learn that many of the recommendations that Wall Street makes–and the transactions that Wall Street gets paid to facilitate–are not in their clients’ best interests. And once they learn that, they face a choice: Continue to make the same bad recommendations [...] WASHINGTON, Aug 9 (Reuters) – Neither Goldman Sachs Group Inc nor its employees will face U.S. criminal charges related to trades they made during the financial crisis that were highlighted in a 2011 U.S. Senate report, the Justice Department said on Thursday. http://finance.yahoo.com/news/us-not-prosecute-goldman-sachs-employees-abacus-deal-231341555–sector.html The New York Stock Exchange (NYSE) has completed an investigation into “irregular trading” after a series of unusual swings in some stocks. The NYSE identified 140 stocks with higher-than-normal trading volumes, including popular stocks like Citigroup and American Airlines. But they cancelled trades on only six stocks. The moves brought back memories of the “flash crash” of 2010, when the Dow Jones index fell 10% in just minutes. “The NYSE and NYSE MKT [...] Jeff Cox Wednesday morning’s stock snafu had a familiar ring to it — mysterious volume in trades that simply could not have been made by a human comes surging out of nowhere, causing brief but acute market mayhem. By now, many players on trading floors have gotten used to the disruptions that can come from the highly automated new world of high-frequency trading. But that doesn’t mean they like it. “This algorithmic [...] Wednesday morning’s stock snafu had a familiar ring to it — mysterious volume in trades that simply could not have been made by a human comes surging out of nowhere, causing brief but acute market mayhem. By now, many players on trading floors have gotten used to the disruptions that can come from the highly automated new world of high-frequency trading. But that doesn’t mean they like it. “This algorithmic trading is kind of [...] At least the market was broken for at most only 148 stocks. If it was all of them, we would have Flash Crash part Mon Dieu which would confirm that the “market” is nothing but a programmed, or “fixed” to use the parlance of our times, vehicle with which to conduct monetary and fiscal policy, now that the actual underlying economy is just as broken. Of course, good of the NYSE to be on [...] From Gresham’s Law: Sometimes it seems like the investment community operates on the assumption that the world started in 1929 – or at least that the financial booms, busts, and speculators preceding the 1920s are irrelevant to the modern investor. We think this is misguided. Just consider that this common worldview ignores an age where speculators lived in sprawling mansions on Fifth Avenue (as opposed to apartments in the same place measuring [...] Morgan Stanley’s Hussein Allidina is out with his latest agricultural commodities update.
The news: We are in for a big burn on prices, as record heat and drought roasts corn and soybean crops into oblivion. “We are raising our 2012/2013 corn and soy forecasts to account for tighter-than-expected balances. Our new price deck implies 3% and 4% upside to the corn and bean curves, respectively. While we expect that corn and soybean prices to average $7.85/bu [...] Charles Kennedy The US Navy was recently lambasted by Republicans for spending $26 a gallon on biofuels during the recent RIMPAC international naval exercises; all part of its Great Green Fleet Demonstration. However little note was taken when last month the US Air Force spent $59 a gallon on biofuels to prove that alternative fuels can be used in its military aircraft; once the small price difference issue has [...] Doug Short, Advisor Perspectives About the only certainty in the stock market is that, over the long haul, over performance turns into under performance and vice versa. Is there a pattern to this movement? Let’s apply some simple regression analysis (see footnote below) to the question. Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. I’ve using a semi-log scale to equalize vertical [...] From Sober Look: Each week, the CFTC publishes what they call “commitments of traders.” It basically shows the volumes of open futures positions by asset class. Even though the futures market represents only a fraction of the overall FX volume (most FX volume is OTC), it gives one a good window into what FX traders (particularly small- to medium-sized players as well as retail traders) are doing. The latest CFTC report shows an [...] As for this evening, I think AUD/USD and/or NZD/USD are better shorts than EUR/USD. Always great “risk off” trades, especially on a Sunday evening after such a weekend. Whether the markets perceive increased volatility much in part due to the Europe elections, a decline in global markets, or are still just pricing in the Friday’s jobs report, there is likely to be a flight to the “safety of the US [...] |
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This dumb mistake is why many investors will always lose money
From Zor Trades:
…Jeffrey Saut’s of Raymond James most recent market commentary is a GEM of a piece, here’s a sneak preview:
“The public is most comfortable when they are sitting with losses. Because if their stocks are down from where they bought them, they don’t have to worry about them.
“Once he’s got a loss, the typical investor is sure he isn’t going to sell. He bears the lower price because in [...]