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If the Chumph Wins – Will Wall Street Crash?

Apparently Wall Street has been running scared since the Comey memo. The thought of a Chumph starting trade wars is just part of it. The dollar would go down, based on the expectation of economic instability, Second, the insurance rate for international business transactions would minimally triple making project funding difficult if not impossible. Lastly is the social and Civil turmoil issue…

My advice in the event of a Chumph win…Sell.

The impact of this morning’s retraction of the “email scandal” non-scandal by FBI’s Comey?

Wall Street shot up 300 points!

Image result for wall street crash

Trump terrifies Wall Street: Professional investors are panicking — should you?

Election jitters sent the S&P on the longest losing streak since the Great Recession — expect worse if Trump wins

It’s been a wild ride for markets this week, thanks in part to FBI Director James Comey’s surprise announcement last week about the discovery of new emails related to Hillary Clinton’s email server controversy, which, if polls are any indication, improved Republican Donald Trump’s chances to win the White House on Tuesday. Investors are bracing for what could be the most volatile post-election trading day ever.

According to a Credit Suisse analysis of index options (financial derivatives that allow investors to bet on the future value of a market index), the benchmark S&P 500 index of America’s biggest companies could rise or fall by 3.3 percent on Wednesday in reaction to the election results. Such an election-related swing in the market would be unprecedented, well above the average 1.1 percent move that follows a normal presidential race. Other estimates are less sanguine: Citi analysts warn of an immediate 5 percent drop should Trump win the election. Others suggest the decline could be even greater.

As Election Day approaches, anxieties are running high, leading to one of the longest selloffs of stocks in the S&P 500 index since the financial crisis eight years ago. Friday’s upbeat monthly U.S. jobs report, which showed robust gains in both hiring and wage growth, helped to lift U.S. markets during intraday trading, but the S&P 500 ended Friday down a slight 0.17 percent, its ninth consecutive decline and the longest losing streak since 1980.

The U.S. election jitters aren’t limited to the U.S.: Asian and European stock markets fell Friday, too, while the benchmark Euro Stoxx 600 shed 3.5 percent this week, touching its lowest level since July. This scramble sent the VIX, a widely watched index that rises when market volatility is high, above 22 points on Friday, up from 13 over the past five weeks, its highest point since Britain voted in June to leave the European Union.

Safe-haven bets — low-yield, highly stable investments — have risen, too. U.S. Treasury funds gained $2.3 billion in five days, the largest influx of cash since the first week of July following the Brexit vote, as investors fled volatile markets to the safety of low-yield U.S. government debt. On Friday, the price of a troy ounce of gold was up about $30 from Monday (gold prices tend to rise when investors are on edge).

All of this is classic “risk-off“ behavior, where investors flee riskier bets like low-rated corporate or high-yield municipal bonds. Clearly, the investment professionals are spooked — but what does this mean for average investors?

“It think it’s good to close your ears,” said Bill Stone, chief investment officer at PNC Financial Services Group. “Politics bring in a lot of emotion and bringing those emotions into investment decisions is not likely to help you, frankly.”

 
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Posted by on November 7, 2016 in Chumph Butt Kicking

 

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ANOTHER Recession??????

And the whole world walked off a cliff…

Anyone else get the feeling the “experts” don’t have a clue how the economy actually works?

U.S. Economy Tipping into Recession

Early last week, ECRI notified clients that the U.S. economy is indeed tipping into a new recession. And there’s nothing that policy makers can do to head it off.

ECRI’s recession call isn’t based on just one or two leading indexes, but on dozens of specialized leading indexes, including the U.S. Long Leading Index, which was the first to turn down – before the Arab Spring and Japanese earthquake – to be followed by downturns in the Weekly Leading Index and other shorter-leading indexes. In fact, the most reliable forward-looking indicators are now collectively behaving as they did on the cusp of full-blown recessions, not “soft landings.”

Last year, amid the double-dip hysteria, we definitively ruled out an imminent recession based on leading indexes that began to turn up before QE2 was announced. Today, the key is that cyclical weakness is spreading widely from economic indicator to indicator in a telltale recessionary fashion.

Why should ECRI’s recession call be heeded? Perhaps because, as The Economist has noted, we’ve correctly called three recessions without any false alarms in-between. In contrast, most of those who’ve accurately predicted a recession or two have also been guilty of crying wolf – in 2010, 2005, 2003, 1998, 1995, or 1987.

A new recession isn’t simply a statistical event. It’s a vicious cycle that, once started, must run its course. Under certain circumstances, a drop in sales, for instance, lowers production, which results in declining employment and income, which in turn weakens sales further, all the while spreading like wildfire from industry to industry, region to region, and indicator to indicator. That’s what a recession is all about.

But how can we have a new recession just a couple of years after the last one officially ended? Isn’t this too short for an economic expansion?

More than three years ago, before the Lehman debacle, we were already warning of a longstanding pattern of slowing growth: at least since the 1970s, the pace of U.S. growth – especially in GDP and jobs – has been stair-stepping down in successive economic expansions. We expected this pattern to persist in the new economic expansion after the recession ended, and it certainly did. We also pointed out – months before the recession ended – that because the “Great Moderation” of business cycles (from about 1985 to 2007) was now history, the resulting combination of higher cyclical volatility and lower trend growth would virtually dictate an era of more frequent recessions.

So it comes as no surprise to us that, with the latest expansion only a couple of years old, we’re already facing a new recession. Actually, such short expansions are hardly unheard of. From 1799 to 1929, nearly 90% of U.S. expansions lasted three years or less, as did two of the three expansions between 1970 and 1981. In other words, such short expansions are unusual only with respect to recent decades…

 
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Posted by on October 1, 2011 in American Greed

 

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World Stocks Fall On Fears Tea Baggers Will Kill Jobs Bill

Now looking to do for the world what they have done for the US in damaging US creditworthiness…

Foreign Investors join their American counterparts in  no longer believing Tea Party majority US Congress will do the right things for the US or World economy.

The Tea Baggers are idealoges, clinging to a thoroughly discredited mantra bent on destroying the Governemnt – and who are doing, and have done more damage to the United States…

Than Al Quaeda.

That “credible terrorist threat” reported by Law Enforcement on the 10th anniversay of 9-11 isn’t radicalized Muslims…

It’s radicalized Republicans.

World Stocks Fall On Fears That U.S. Jobs Plan Will Stall In Congress

World stocks fell Friday on investor worries that a U.S. plan to stimulate jobs and growth will be held up in Congress and may not be followed fast enough by action from the Federal Reserve.

The euro hit six-month lows against the dollar and the yen with more falls likely after the European Central Bank shifted away from further rises in interest rates, a key driver in the single currency’s rally this year.

U.S. shares were poised for a weaker open, extending Thursday’s falls after Federal Reserve Chairman Ben Bernanke left the door open for new stimulus measures but stopped short of signaling the central bank would take the plunge.

Markets are concerned that President Barack Obama’s proposed $447 billion package of tax cuts and spending plans aimed at boosting growth and job creation could be hamstrung by political wrangling.

“Investors are holding back…There isn’t any reason to commit until you can see credible policies,” Justin Urquhart Stewart, director at Seven Investment Management, said.

“Bernanke was never going to say anything. He made it clear at Jackson Hole he was pushing it back to the politicians. Obama has come up with this stimulus package. We now have to digest what effect this will have, assuming it is passed.”

European shares fell as much as 1.1 percent, pulling down the MSCI world equity index 0.7 percent. S&P index futures were last down 0.6 percent, pointing to a lower start on Wall Street.

Market confidence has been fragile this week due to growing concerns over the global economy and Europe’s debt crisis, with Friday’s deadline for bond holders to decide on Greece’s swap offer adding to the nervousness.

 
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Posted by on September 9, 2011 in Stupid Tea Bagger Tricks

 

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“A Sugar Coated Satan Sandwich”

Hopefully, they will shoot this bill down today…

Debt Deal Emerging With Rightward Tilt

President Barack Obama’s rightward lurch to reach a $3 trillion deficit reduction deal with no guarantee of additional revenues had liberals fuming and Republicans all but declaring victory Sunday afternoon.

Rep. Emanuel Cleaver, chairman of the Congressional Black Caucus, said early reports of the new deal appeared to be “a sugar-coated Satan sandwich.” The Missouri Democrat said the CBC hadn’t yet made a formal declaration that the group would oppose it, “but this is a shady bill.”

“This deal trades people’s livelihoods for the votes of a few unappeasable right-wing radicals, and I will not support it,” ripped Rep. Raúl Grijalva (D-Ariz.), co-chairman of the Congressional Progressive Caucus, before House Democrats had even been briefed. “The lesson today is that Republicans can hold their breath long enough to get what they want.”

The President Surrenders

For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make America’s long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.

Start with the economics. We currently have a deeply depressed economy. We will almost certainly continue to have a depressed economy all through next year. And we will probably have a depressed economy through 2013 as well, if not beyond.

The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesn’t work that way, a fact confirmed by many studies of the historical record.

Indeed, slashing spending while the economy is depressed won’t even help the budget situation much, and might well make it worse. On one side, interest rates on federal borrowing are currently very low, so spending cuts now will do little to reduce future interest costs. On the other side, making the economy weaker now will also hurt its long-run prospects, which will in turn reduce future revenue. So those demanding spending cuts now are like medieval doctors who treated the sick by bleeding them, and thereby made them even sicker.

And then there are the reported terms of the deal, which amount to an abject surrender on the part of the president. First, there will be big spending cuts, with no increase in revenue. Then a panel will make recommendations for further deficit reduction — and if these recommendations aren’t accepted, there will be more spending cuts.

 

 
 

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Poverty in America Moves to the ‘Burbs

That stereotype of poverty being solely an inner city phenomenum just blew up – if it ever was really true at all. Seems there more “po'” folks in the ‘burbs than ever before. Indeed, there is now more poverty in the ‘burbs, than in urban areas.

What this means for the country is another harbinger of a disaster, brought on by disastrous legislative and economic policies. The modern poor include a lot of folks who pushed all the right buttons, and jumped all the right hurdles in life – working hard, getting an education…

Who are now jobless, and increasingly homeless.

A Modern Ghost Town

Poverty surging in U.S. suburbs

Poverty is rising all over the United States, but it is especially pronounced in the suburbs, which were once regarded as a haven from the ills of the inner cities.

According to the Center for American Progress (CAP), a progressive public policy research and advocacy organization, one-third of the nation’s poor now reside in the suburbs.

CAP explained that the last decade set in motion this shift in the map of poverty, but the recession exacerbated key economic trends that rapidly increased the growth rate of suburban poverty to more than double that of central cities.

According to data from the Brookings Institute, as of 2009, 13.7-million poor people lived in the suburbs, a 37 percent increase since 2000 (compared with a 26.5 percent growth for the nation as a whole). In fact, it is now estimated that the number of poor people living in suburbia exceeds the number in the inner cities by about 1.6-million.

For example, poverty in the suburbs surrounding Chicago has climbed by 50 percent between 2000 and 2009 (while, ironically, the city’s poverty rate actually declined by 0.9 percent). Read the rest of this entry »

 
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Posted by on November 12, 2010 in News

 

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No Longer Just Jose on the Corner Anymore…

Competition at the curbside…

Pinched Workers Seek Out Day Labor

High Joblessness Forces More People From Desk Jobs to Curb-Side Hiring Sites; a Bank Teller Takes Up Housecleaning

The face of day labor appears to be changing, with more women, non-Latinos and former white-collar workers taking up manual labor.

Amid continued high joblessness, employers say they are seeing more workers at curbside hiring sites, or seeking work through less traditional routes such as Craigslist, who before the downturn might have had full-time jobs.

Many lost desk jobs in the hard-hit auto, construction and financial industries. Some see manual labor such as housecleaning or hauling debris, where people are hired and paid per diem, as the only way to survive when jobs in their prior fields have become scarce.

 
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Posted by on September 7, 2010 in The Post-Racial Life

 

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America Joins the 3rd World

This looks like something I’ve seen in Haiti…

Vodpod videos no longer available.

30,000 queue for housing assistance in Atlanta

Some 30,000 people lined up outside a local shopping centre in Atlanta, Georgia, on Wednesday in the hope of receiving public housing assistance. The authorities were unprepared for the throng, which was unruly at times. Amid sweltering conditions, 62 people were hurt and 20 needed hospital care. Only 455 rent assistance vouchers and 200 public housing spaces were on offer – while 13,000 applications were taken.

Some had lined up since Sunday for the possibility of discounted rent.

It was the first time in eight years that the housing authority in East Point, a municipality in south-west Atlanta, had accepted applications for public housing and rent subsidies, known as Section 8 vouchers. Authorities estimate it will be six months before any vacancies become available for the small number of successful applicants. Most of the 16 other local housing authorities in Atlanta have closed their waiting lists. But Section 8 vouchers are portable, so people flocked from across the city for a chance to receive housing aid.

Atlanta is an economically polarized city: it has the fastest growing number of millionaires in the US but also has the third-highest proportion of people living below 50% of the poverty line.

“People are desperate. They are really willing to do whatever it takes to get into housing,” James Fraser, a public housing expert at Vanderbilt University, told the BBC.

Welcome to America after 30 years of conservatism. One of the favorite stitch’s of a black conservative buckdancer from Atlanta is to berate the City of Detroit. The line goes that Liberalism and Unions killed manufacturing in the North, as companies sought lower wage Read the rest of this entry »

 
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Posted by on August 12, 2010 in American Genocide, Great American Rip-Off

 

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