Thursday, April 30, 2009

Capitalist Pigs and Scientists are more Sick of Politics than the former Swine Flu

W.H.O.'s backtracking on "swine" term is a breath of fresh air for farmers, unfortunately though, thousands of healthy pigs have been slaughtered in recent days:
The scientific community continues to be baffled. Yet the politics of the Mexican war on drugs is evident to Capitalist Pig Bob (CPB). Is CPB the lone citizen that smells multi-pronged social and fiscal political motivations here? Obama and Clinton just happened to be in Mexico 1 week before the outbreak that scientists cannot agree on either its origin or common name, you decide. CPB thinks the scientists have been head faked by a man made virus that was meant to have different end games for Calderon and Obama. Obama's motivation smells of greater control over agriculture by expanding powers of the USDA and FDA.
Perhaps Joe Biden wasn't briefed that things weren't developing as planned, and made an ass of himself by scaring Americans today. Only if Biden came out and told us not to eat pork could he have stuck his foot in any deeper:
IF you Google "Obama and food safety", you will find he had motivations to expand USDA and FDA powers ahead of this pig flu. One POTC team member personally used the FDA model food code to teach Food Safety seminars, so we're not writing this from amateurish standpoint.
The amount of federal monies for City of LA, San Francisco, NY, or Chicago food inspectors is a motivation with a social crises of farm diseased animals like pigs no doubt. Especially viral illnesses that can spread through casual contact. As spread of viral diseases almost always requires a "living host and then blood to blood contact", impossible by eating cooked food obviously.
Under the elephant regime, Chicago inspectors had to write violations/tickets to have their agency survive, be self supporting. Under Obama, they may look to write fewer tickets and count on gov't monies to flow in. Which food safety model of representation do you prefer? CPB thinks local food safety codes are enforced better with NO federal money. The local/city inspectors are then forced to work and find food saftey violations in order to receive a pay check; making eating at restaurants safer for Americans. And IF some violation turns out to be bogus, a judge inside some city courtroom is there to protect that restaurateur.
CPB thinks the swine flu is a political ploy gone bad, and CPB thinks Calderon and Obama may have a lot of explaining to do. IF this turns out to in fact be a man made virus, the political careers of public officials here and in Mexico must be called in to question. Especially in the face of the Mexican drug war suddenly falling out of the mainstream news post U.S. delegation, not suspicious at all???
IF you enjoyed this piece, please share it with a like minded friend or family member. The Psychology of the Call team thanks you for your loyalty to fiscal conservatism and open- mindedness even if you disagree with some of our out of the mainstream psychology.

Wednesday, April 29, 2009

President Barack Hussein Obama's 1st 100 Days

Capitalist Pig Bob thinks Obama's 1st 100 days have set the free-market system up for long-term failure. Anyone celebrating the trillions of dollars of bloated gov't spending should be ashamed themselves. The U.S. is in the process of being dumbed down with so called Pelosibanomic efficiencies. Paradoxical efficiencies that will lead to a dumbed down gov't regulated economy, and eventual loss of entrepreneurship/risk/venture capitalism, and the private free-markets sectors of yesteryear. Legislation like Cap and Trade, EFCA, nationalized health care, and increased powers to all gov't agencies: USDA, FDA, etc. etc. will have extremely negative ramifications for our children and young adults. The irony of massive short-term spending is middle aged and senior citizens may actually benefit, yet their grandchildren will be left holding the bag$. Capitalist Pig Bob hopes American citizens become more vocal very soon against this control freak in the white house. When a man exposes patriots like Condoleezza Rice and Vice President Cheney for waterboarding terrorists directly after 9/11, yet does NOT release documents that prove their efforts stymied terror plots and saved American lives, he is beyond shameful and deserves to fail. Repeat, Obama is beyond shameful and deserves to fail. Please support our efforts to speak out against Obama by subscribing to the blog with a simple e-mail: Be it known, IF Obama were to suddenly to change his fiscal poliicies 180, he would have a chance to be the greatest president ever due to his Kool-Aid like popularity. Capitalist Pig Bob would be the first man to stand up in his favor. Yet there is absolutely NO reason to believe that Pelosibanomics will stop leading the naive American herd down a dumbed down western european path. A dumbed down path that believes alternative energy is the answer to greater prosperity. A dumbed down path that believes every state must bow down to unionization: Dear sir Mr. Obama, you may be asking for an uprisining in right to work states IF EFCA is passed. Coincidentally, most of these states took a lot less of stimulus money than unionized states, and Texas in fact rejected every dime of your unemployment stimulus. Didn't you want a united America? Didn't you run on bipartisanship? CPB concludes your first 100 days have been a capital/fiscal failure.

Tuesday, April 28, 2009

Donkey Senators Setting Up like a Bad Comedy; CPB is Disgusted with this Change, Americans MUST Stand Up or Risk Losing more than their Money!

POTC has turned extremely cautious on the stock market today, especially after weighing the fact the dumbest donkey of all time will soon be confirmed. With Arlen Specter, this looks to create that 60-vote, filibuster proof, super Senate majority; opening the door for passage of some of Obama's anti-capitalistic bills. Even though Arlen Specter remained vocal against EFCA in today's live interview, his party switch poses free market threats on other political fronts, especially Cap & Trade. Obama promised to camapaign for him, thus POTC expects strings attached to the campaign money. A true monkey wrench the stock market may have difficulty stomaching. POTC recommends aggressive traders consider buying either May $200 or June $210 FSLR Calls. Cap & Trade looks like a real possibility after today's unfortunate events.

What the Weak Elephant's Stage Left Exit Means for Your Portfolio

Arlen Specter (AS), 79 year old elephant, switches to donkey party. POTC does not believe this development in itself changes anything, yet the ripple effect that may influence other animals to switch cages in the next several days will be very important to monitor as far as the political component of the PFF ratio is concerned. With AS, there are 58 donkeys in the Senate, closer to that tragic-magic 60-vote super majority for Obama's control agenda to choke capitalism as we know it. Yet the short-term technical reaction in the market is reassuring post news (S&P positive). Though we cannot make any definitive directional broad market call until the dust settles and we witness how the S&P reacts on close, POTC suggests aggressive traders overweight cash right here. Conservative traders have a mini conundrum until we learn whether more and what animals will switch their stripes. POTC suggests the relative strength or weakness in the broad market today and tomorrow will speak volumes. Where the smart/inside political money stands will be known in the hours just ahead with everything else being equal. The echos in the halls of Congress become reflected in stock prices after something like this occurs. So far, so good. 12:49ET S&P up 2 points. Capitalsit Pig Bob only hopes more elephants don't start making ASses of themselves...

Media Reporting Seems Clueless to Dirty Politics, POTC's CPB Smelled Rats since Day 1...

Mexican people side with Capitalist Pig Bob, ""Nobody believes the government anymore," said Edgar Rocha, a 28-year-old office messenger. He said the lack of information is sowing distrust: "You haven't seen a single interview with the sick! Mexico's Agriculture Department said Monday that inspectors found no sign of swine flu among pigs around the farm in Veracruz, and that no infected pigs have been found yet anywhere in Mexico.": Drudge Report hedging bogus reporting from a picture of a wild pig attacking a human on Friday, to this evening's toned down images... POTC has sent Drudge countless e-mails, perhaps his people are realizing their political ignorance on the nuances of governments' abilities to influence fiscal policies through sympathetic social issues. Is Capitalist Pig Bob the lone citizen that is suspicious with Mexico suddenly shifting the war on drugs to the war on swine flu/pigs? Why are most of the deaths young adults and not older people with compromised immune systems, are the deaths possibly related to simple or adulterated drug overdoses? How many pigs have died of in Mexico? Also, out of those 100+ human deaths in Mexico, how many were autopsied by independent U.S. doctor(s)? CPB stresses there are ZERO deaths in U.S. from swine flu. Even though CPB respects the struggling good natured Mexican people, he doubts ANY gov't statistics that flow from that country. Many news outlets are being super irresponsible. CPB expects luberal portals like Huffington post (for 3 year olds and under) not to question these politically motivated ploys. It's shocking the Drudge Report has swallowed this fiscally driven pork story, hook, line and sinker. CPB won't be surprised IF socialistically bent countries like Spain begin reporting deaths and blowing these strange events out of proportion. Drudge Report is unknowingly spreading propoganda since friday in favor of Obama's big government agenda. USDA and FDA expansion imminent with such naive reporting. From banking, to autos, to health care, to energy through Cap & Trade, to unionization through EFCA, to now agriculture through expanding USDA controls and costs to farmers who have done NOTHING wrong. The irony is the Drudge Report is a highly regarded conservative portal, perhaps this social issue was too big for them to understand it may actually be a politically motivated fiscal matter. Were Obama and Clinton not politicking with Felipe Calderon in Mexico recently? Did Obama not address expanding food safety laws just ahead of his visit with Calderon? Was Mexico not having severe policing issues with drug lords lately? Perhaps the bird flu scare had some motive with elephants who profited like Don Rumsfeld, and now donkeys have found their beast of burden in the swine, you decide, as CPB smelled these political rats since Day 1.

Monday, April 27, 2009

Homeland Security Chieftess Janet Napolitano Uses Scare Tactics Before the Facts are in; Capitalist Pig Bob Smells Big Gov't Rats with Fire Power...


Friday, April 24, 2009

Bravo to Michigan Congressman Dingell for Exhibiting Bipartisanship; the Crescendo for Harsh Cap & Trade Law is Fading Fast; As Predicted, Mkt Rallies

WASHINGTON (Dow Jones)--Divisions among Democrats over climate-change legislation spilled out into the open Friday, when Rep. John Dingell, D-Mich., used the Republican party's main talking point to criticize his own party's effort to impose mandatory reductions of greenhouse-gas emissions. At a House Energy and Commerce Committee hearing, Dingell said that the cap-and-trade program envisioned by the bill "is a tax, and it's a great big one." As he left the hearing, he told reporters that he wasn't ready to comment on whether the bill would pass out of the subcommittee. Republicans have been attacking the measure as a threat to the economy. Democrats have said that price increases for consumers won't be high. But House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., acknowledged that colleagues worried about disproportionate effects on their regions had "legitimate concerns." The comments point to intense negotiations in the days ahead of the first vote on the measure next week, in the subcommittee. Among those concerned: Rep. Butterfield, D-N.C., who expressed fears about how to help low-income people in his district. He told reporters that he would not support the bill as currently written, and that Democratic leaders were "struggling to get the votes" to clear the measure through the subcommittee. Butterfield is lining up with a block of Democrats, including Rep. Rick Boucher, D-Va., who among other things are asking that utilities be given free pollution allowances in the early years of the program, so that they can use the credits to offset higher electricity bills. The Obama administration's Environmental Protection Agency earlier this week had a tepid reaction to that idea, warning that it could raise costs elsewhere. But with votes in question, Democratic leaders may be willing to offer some free pollution allowances. "They're trying to give free allowances to perhaps get votes," said Rep. Joe Barton, R-Texas. Dingell had earlier joined Waxman, Rep. Ed Markey, D-Mass., and Boucher in writing a letter to President Barack Obama saying they were intent on passing a climate-change law. -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 24, 2009 13:16 ET (17:16 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 01 16 PM EDT 04-24-09

Thursday, April 23, 2009

Blue Dog Boyd MUST be Applauded for Exhibiting Bipartisan Behavior; Bullish Development for Certain Sectors; Bottom Definitely a Bit Closer Today!

WASHINGTON (Dow Jones)--One of three House Democrats tasked with negotiating a final congressional budget resolution broke with his House colleagues Thursday, saying he doesn't believe a controversial fast-track procedure for health care and education policy reform should be included in the final agreement. Rep. Allen Boyd, D-Fla., said that he doesn't think the procedure, known as reconciliation, should be included in the budget agreement that will be finalized in the coming days. Reconciliation allows legislation to be approved by a simple majority in the Senate rather than the 60-vote super majority normally required for major bills. It gives Democratic lawmakers a powerful weapon to have in their armory when trying to reach a consensus with Republicans on health care and education policy changes. House Democrats included reconciliation language for health care and education policy reform in their version of the budget resolution. It does not appear in the Senate bill, even though the language is aimed at making passage of health care or education legislation easier in the Senate. The House resolution set a deadline of Sept. 30 for legislation be agreed to by Congress before reconciliation would be employed. Health care, education and energy policy reform are the three highest domestic priorities of both the Obama administration and the Democratic-controlled Congress. Boyd sided with Sen. Kent Conrad, D-N.D., the chairman of the Senate Budget Committee, who is the Democrats' point man on budget negotiations in the Senate. Boyd said that he would prefer that the type of substantive reform that is on the table is dealt with on a bipartisan basis, rather than with Democrats' using a controversial procedural tactic to force their reforms through Congress. Conrad acknowledged Thursday that the White House is putting pressure on lawmakers to quickly conclude negotiations on the budget resolution. The resolution is non-binding on Congress but provides a road map for lawmakers' spending priorities for the coming fiscal year. Even with Boyd's support, with House Democratic leadership and the White House urging the inclusion of the reconciliation language, it is uncertain how long Conrad will be able to resist their pressure. It is possible a deal could be reached between Democratic House and Senate lawmakers on the budget as soon as next week. Boyd is a member of the House Budget Committee, as well as one of the senior figures in the fiscally-conservative Blue Dogs Coalition, a group of House Democrats who advocate greater spending restraint by Congress. He was appointed along with House Budget Committee Chairman John Spratt, D-S.C., and Rep. Rosa DeLauro, D-Ct., as the three House Democratic budget negotiators. The Senate has yet to formally appoint its negotiators, but is expected to do so later Thursday. -By Corey Boles, Dow Jones Newswires; 202-862-6601; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 23, 2009 15:51 ET (19:51 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 03 51 PM EDT 04-23-09

Obama's Top Economic Adviser Offers Free Market Speech; Volcker's Words Defintely Bullish for Risk / Venture Capitalism...

WASHINGTON (Dow Jones)--Former Federal Reserve Chairman Paul Volcker on Thursday suggested that large non-banking institutions shouldn't be subject to the same intensity of regulation as banks because it might imply they have a government guarantee if they falter. "I have my doubts - strong doubts - that we will want to determine that circle explicitly: which institutions are in and which by implication are out," Volcker said in remarks at an event organized by the Bretton Woods Committee. "I suspect we could all agree we should not encourage, as a matter of lasting policy, the view that some financial institutions are practically assured of official support, which in the midst of the present turmoil is the present presumption." Volcker, who now serves as a top economic aide to President Barack Obama, made it clear he thinks the Federal Reserve should play some role in a new future systemic regulatory scheme. But he questioned if the Fed ought to directly regulate large non-banking firms deemed "too big to fail" as well as commercial banks because of the message it may send to the markets. "How far, among all the insurance companies, hedge and equity funds, financial affiliates of industrial and commercial firms, and others should the extension of official supervision and the Federal safety net be extended?" he asked. "There are to my mind strong conceptual and practical reasons for distinguishing in regulatory approach between institutions engaged in banking and other financial institutions," he added. In his speech, Volcker lamented the fact that many commercial banks have gotten away from their core business and engaged in making risky investments. And while he did not call for a full reinstatement of the Glass-Steagall Act, which created a wall between commercial and investment banks, he indicated that some changes in the law may be in order. "The logic calls for prohibition of banking organizations sponsoring hedge funds or equity funds, and strict supervision, with appropriate capital and collateral requirements, of proprietary securities and derivatives trading," he said. Volcker laid out a few regulatory changes he feels are in order for large non-banking firms, saying he would like to see hedge funds and equity funds register with federal regulators. Other reforms he advocated included requiring firms to report their business models and large positions and imposing collateral requirements and leverage restrictions. "To my mind, however, a temptation should be resisted to extend to those non-banking institutions a presumption of 'too big to fail,' of access to Federal insurance and of Federal Reserve financial support," he said.-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 23, 2009 15:36 ET (19:36 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 03 36 PM EDT 04-23-09

Wednesday, April 22, 2009

100 Scientists Sound Off Against the Partisan Global Warming Alarm; Will You Stand Up and Be Heard before Your Energy Bills Increase???

With all due respect Mr. President, that is not true. We, the undersigned scientists, maintain that the case for alarm regarding climate change is grossly overstated:

Looking Up at the Blue Skies Over Commercial Real Estate; $64K Question now is How Long will this Paradoxical Rally of Equity Dilution Last...

Real estate investment trusts have had little to offer investors after credit vanished and commercial real estate began to slump. Is new equity the tonic they've been looking for? With over $5 billion in equity offerings so far in 2009, debt-saddled property trusts are now in better shape. And even though new equity leaves existing shareholders with diluted stakes - normally a reason to sell - the market has rewarded stronger balance sheets with rising share prices. Mysteriously, Vornado Realty Trust drew applause ahead of the act this week. Shares of the trust jumped 17% Tuesday before it announced an equity raise the same evening. Vornado shares subsequently fell 3% Wednesday after the $645 million offer was priced. Other issuers this year have outperformed the MSCI U.S. REIT Index by an average 2.65% the day after pricing a new share issue, according to Green Street Advisors. The outperformance averaged 4.20% in the seven days following an issue. Vornado should raise more cash while it can. The new offer brings gross cash to around $2.2 billion. But some $3.8 billion in unsecured debt will mature by the end of 2013. There is also another $5.3 billion in mortgage debt maturities during that time. Vornado would surely prefer better financing terms. Even after pricing new equity on top of a rally, the shares sold for less than half their price a year ago. But these days, financial markets offer few shortcuts. (John Jannarone is a reporter for Heard on the Street. He can be reached by email at (TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.) Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 22, 2009 18:23 ET (22:23 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 06 23 PM EDT 04-22-09

Capitalist Pig Bob Thinks Climate Change is Open to Great Debate, Yet Donkeys See Enormous Dollar Signs by Mandating State Laws; Sick & Twisted~

WASHINGTON (Dow Jones)--Obama administration officials on Wednesday called for passage of a law to combat climate change, but offered few details about whether Congress should give any special breaks to industries that fear they would be disproportionately affected. U.S. Energy Secretary Steven Chu, U.S. Environmental Protection Agency Administrator Lisa Jackson and Transportation Secretary Ray LaHood - testifying on Earth Day - said that Congress must act now. But the officials provided few details about the degree to which President Obama is willing to show flexibility on a stated goal of requiring companies to buy 100% of the permits they must hold in order to pollute. Utilities and other companies want at least some permits for free. "We'll find out where the votes are and whether that ought to be part of the package," said Rep. Fred Upton, R-Mich., at a House Energy and Commerce Committee hearing on Wednesday. The issue is the major political flashpoint in the efforts of Rep. Henry Waxman, D-Calif., to drive a climate-change bill through his committee by the end of May. It is also one of the main political bargaining tools, since lawmakers who might be reluctant to support the bill could change their minds if constituents receive a certain number of free allowances - which could be worth a lot of money to companies. On Wednesday, executives from DuPont Co. (DD), ConocoPhillips (COP), Duke Energy Corp. (DUK), Alcoa Inc. (AA) and NRG Energy Inc. (NRG) said they wouldn't support the legislation unless allowances were handed out free in the early years of the cap-and-trade program. Under the bill proposed by Rep. Henry Waxman, D-Calif. and Rep. Ed Markey, D-Mass., emissions of gases including carbon dioxide would decline by more than 80% from 2005 levels by 2050, with a goal of cutting emissions 20% by 2020. On Tuesday, the EPA offered a rosy assessment of the legislation, saying that the measure would have "a modest" impact on consumers if the bulk of revenue generated under the cap-and-trade program were returned to households. The Obama administration also faced questions about the feasibility of a measure in the bill to require utilities to generate as much as 25% of power by 2025 from renewable sources of energy. "Although it might seem like an ambitious goal, I think with the proper incentives we can get there," Energy Secretary Chu testified. Duke Chief Executive Jim Rogers, testifying later, opposed the plan, saying it would make it harder on regions less rich in wind or solar power. Democrats such as Rep. Mike Ross, D-Ark., also sounded wary. "I come from a state that's not a wind state," Ross said. "Our options for renewable energy are limited." -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 22, 2009 18:01 ET (22:01 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 06 01 PM EDT 04-22-09

Pelosi Presses Her Sick Al Gore Global Warning Agenda; Obama Listens like Lap Dog

WASHINGTON (AFP)--Congress will pass legislation to stem global warming by year's end, House Speaker Nancy Pelosi vowed Tuesday, as hearings got underway on a bill to reduce U.S. greenhouse gas emissions. "We will pass legislation this year," Pelosi told reporters. "On Earth Day next year, we will celebrate the progress we've made," the House leader declared. Her remarks came as Congress began examining a draft bill for clean energy development that aims to cut U.S. carbon emissions by 20% from their 2005 levels by 2020, and boost reliance on renewable sources of energy. The House Energy and Commerce Committee, led by Democratic chairman Henry Waxman, began four days of hearings on the bill Tuesday. On Wednesday, lawmakers will hear testimony from EPA chief Lisa Jackson, Energy Secretary Stephen Chu and Transportation Secretary Ray LaHood. Former vice president Al Gore is set to testify Friday. The looming battle in Congress promises to be a tough one, with Republicans and some Democrats from coal- or oil-producing states warning of potentially catastrophic economic impacts from setting limits on emissions of greenhouse gases blamed for global warming. But President Barack Obama has made tackling carbon emissions a priority, in sharp contrast with the administration of his predecessor George W. Bush, which repeatedly cast doubts on the existence of global warning. The Obama administration has said it wants a climate change bill completed by the end of the year, ahead of the president's planned travel to Copenhagen for the United Nations' climate change conference in December. The bill in the House would reduce greenhouse gases by 42% before 2030, and 83% by 2050. Pelosi, Waxman and other Democrats were expected to muscle the bill through the House but its prospects were far less certain in the Senate, where it faces opposition not only from most Republicans, but also some key Democrats. "My long-term concern is we got to deal with global warming, with climate change. This bill will not do that if we don't find a way to include the developing world, China and India," said Democratic Sen. Evan Bayh, explaining his dislike for the bill. "The hardest challenge is, how do you include the developing world in a verifiable way," he said. "If we do not, we're going to go through this for nothing." Last week, the Environmental Protection Agency said carbon dioxide and other greenhouse gases pose a health risk, a landmark turnaround that could impact climate change regulation. U.S. goals also call for a cap-and-trade system to cut carbon emissions in order to force heavy polluters to buy credits from companies that pollute less, creating financial incentives to fight global warming. Quotas have yet to be defined however, with some calling for free rights to pollute for the most vulnerable industries, such as steel or glass manufacturing. Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 21, 2009 18:17 ET (22:17 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 06 17 PM EDT 04-21-09

Tuesday, April 21, 2009

Bank of America

The Psychology of the Call team has been inundated by computer viruses (greetings from the local library!). Hopefully we'll be able to resume normal service Tuesday morning after a number of thorough and deep disk cleanings. (By the way, if any of our loyal subscribers are tech savvy and can suggest a downloadable anti-virus program that goes where Symantec seems unwilling to go, could you please send an e-mail to; your help will be very much appreciated.) Until tomorrow, we leave you with a quote from the blog last week related to Thursday's psychology and invite you to consider the chart of BAC below. Admittedly our timing was off by two days because of unexpected developments, but our understanding of this extended Bear market was correct. "The 109 point Dow move felt like 1,009 points, but PLEASE don't be fooled, as most bank stocks will close their 15% - 30% gaps Thursday and Friday. BAC is the best example of this irrational witch. Bear markets rip, tear, and maim long and short positions, but especially during options expiration week, as witches use their ironclad broomsticks to bloody bears and bulls alike."

Friday, April 17, 2009

Bernanke Agrees with Pimco's El-Erian, the $50 Trillion in Global Capital Loss will Have "New Normal" Consequences on Corporations and Consumers

*DJ Fed's Bernanke: Damage from Credit Bust Likely To Be Long-Lasting . Copyright (c) 2009 Dow Jones & Company, Inc.- - 12 30 PM EDT 04-17-09 POTC highlights the wisdom of two financial giants as markets search for "new normal" equilibriums. The recent stock market blip was/is a lot more technical and political than fundamental. Bear market rallies have a history of attracting late and greedy capital that eventually sells and loses as short covering ceases. This bear bounce is better compared to a mountain lion pounce, yet it is nothing more than a temporary technical event. --Earnings came in better than expected in many cases, but we know beating lowered expectations create longer-term fundamental valuation problems.-- Until we know where unemployment will peak and how the "new normal" consumer spending patterns will be affected, the quick stock market blip will not help real estate sales as it rolls-over and ends up destroying more wealth than it created. Bernanke and El-Erian are on the same page, the $5o Trillion in global capital loss will have long-lasting psychological and fundamental effects on corporations and consumers. Long-lasting effects that will not be understood for many years. Yet the most abnormal government regulation and spending policies are just taking hold, causing the "new normal" equilibriums to be mispriced for years to come. The greatest discounting mechanism on earth has a major problem. The short positions are terrified of Big Brother's printed presses in the short-run, yet Bernanke and El-Erian warn of long-lasting consequences... A conundrum is on the shoulders of the entire world, yet Capitalist Pig Bob (CPB) thinks Americans cannot lose sight of core principles. Americans must not allow the current partisanship to over regulate, over blame, and especially over spend. All are extremely anti-free market/anti-capitalistic. IF some of the ambitious and more dangerous bills are pushed through, like Cap & Trade and EFCA, then we will be on a one way path to a "new normal" hell. CPB will continue to speak out against this fiscally luberal regime. A regime that has the ability to shift the balance of this country by spending us out of any future liberty, caution as this confusion evolves~

Wednesday, April 15, 2009

Obama Bashes Corporations Again, Yet Bigger Gov't/Spending is Okay, You Decide, Capitalist Pig Bob Already Has...

WASHINGTON (Dow Jones)--With a midnight deadline looming for Americans to pay their taxes, President Barack Obama pledged to rewrite the "monstrous" U.S. tax code, which he said is "far too complicated" for most people to grasp. "We will make it quicker, easier, and less expensive for you to file a return, so that April 15 is not a date that is approached with dread each year," Obama said in remarks prepared for delivery at the White House. The comments, which coincided with a series of tax day "tea party" protests around the country, focused on the cuts implemented in this year's economic recovery package, including Obama's signature Making Work Pay credit. But the president also honed in on longer-term changes he says are necessary because the tax code has been thrown "out of balance." "We need to stop giving tax breaks to corporations that stash profits or ship jobs overseas so that we can invest in job creation at home," Obama said. "And we need to end the tax breaks for the wealthiest 2% of Americans, so that folks like me are paying the same rates that the wealthiest 2% of Americans paid when Bill Clinton was President." Obama has asked former Federal Reserve Chairman Paul Volcker to lead a new task force on tax reform, with recommendations due to the reported by Dec. 4. The panel will look specifically at tax simplification, closing tax loopholes and reducing tax evasion and cutting corporate welfare. One of the group's goals will be to narrow the so-called tax gap, the estimated $300 billion in uncollected revenues every year. -By Henry J. Pulizzi, Dow Jones Newswires; 202-862-9256; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 15, 2009 12:02 ET (16:02 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 12 02 PM EDT 04-15-09

POTC's Volatility Alert

The Volatility index (VIX) has closed its gap at 37 yesterday, and we predict it's set to move back through 40 soon. That does not bode well for the broad market.

Tuesday, April 14, 2009

The Brutal Reality of Gov't Red TARP and Goldman Sachs Developing, As Predicted...

When it comes to the TARP, Goldman Sachs (GS) and the Obama administration have been portrayed as two Englishmen arguing over a restaurant check: "Please let me pay," "No, no, my dear boy, I won't hear of it." Goldman's desire to repay its $10 billion slug of TARP money pronto is understandable. The chief reason is to remove associated restrictions on something that goes to the heart of its business model: how much people get paid. The Troubled Asset Relief Program's aim, though, is to stabilize the financial system as a whole. Recent signs of improvement on the front are still questionable. Goldman's outsize trading gains in the first quarter, coming alongside weakness in other businesses, offer limited comfort. And Goldman still utilizes other government guarantees, having issued $21 billion of cheap debt backed by the part the Temporary Liquidity Guarantee Program since October, according to Dealogic. From the government's perspective, more retail-exposed banks still face big hits on the consumer credit portfolios. Allowing Goldman to repay now, the thinking goes, risks stigmatizing others not yet able to do so, while the system is still fragile. The bank may well have to wait. Having just raised at least $5 billion by issuing stock, knocking 9% off its share price in the process, Goldman appears confident of success. In any case, a delay in approval to repay TARP would not wholly remove Goldman's advantage. Merely by demonstrating it can raise fresh capital to repay the TARP, it separates itself from the pack. Even if the long term outlook of the investment banking model remains foggy, the imperative to get one up on one's rivals remains as a strong as ever. Write to Liam Denning at <> (TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at Readers should include their full names, work or home addresses and telephone numbers for verification purposes. We reserve the right to edit and publish your comments along with your name; we reserve the right not to publish reader comments.) Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 14, 2009 16:48 ET (20:48 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 04 48 PM EDT 04-14-09

A Clear Plan of Control through Gov't Regulation, Perhaps; Capitalist Pig Bob Was Not Polled, You?

WASHINGTON (AFP)--Americans have twice as much faith in President Barack Obama's handling of the economy than they do in Republican plans to end the recession, according to polls published this week. Nearly six in 10 Americans - 58% of respondents - said the president has "a clear plan for solving the country's economic problems," while 42% said he does not, according to a poll by CNN and the Opinion Research Corporation polling firm released Tuesday. But only about a quarter - 24% - said Republicans have a clear plan for the economy. The poll pointed to significant public support for Obama as he attempts to piece together an economic rescue "puzzle" that justified unpopular bailouts for the banking and finance industries. The Republican opposition, still reeling from devastating losses in the 2008 elections, voted against the president's 2010 budget. Despite the apparent animosity between Republicans and the White House, 62% of respondents said Obama was "doing enough to cooperate with the Republicans in Congress," compared to 37% for Republican cooperation with Obama. In a separate poll, conducted by Gallup and released Monday, 71% of Americans said they have a "great deal" or a "fair amount" of confidence in Obama to do or recommend the right thing for the economy." Congressional leaders, especially Republicans, do not enjoy the same public confidence. Democrats were also not spared in the survey. Some 51% said they had a "great deal" or a "fair amount" of confidence in Democratic leaders on the economy, compared to just 38% for Republican leaders. The Gallup poll of 1,027 people was conducted April 6-9. CNN surveyed 1,023 people by telephone April 3-5, and its poll had an error margin of three percentage points. The surveys came as Obama said Tuesday he saw "glimmers of hope" for the American economy, which is battling its deepest economic slump in decades, but also warned of painful choices and more deep job cuts to come. Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 14, 2009 14:29 ET (18:29 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 02 29 PM EDT 04-14-09

Sunday, April 12, 2009

Psychology of the Upcoming Week's Economic and Earnings Data

Greetings to all who respect risk takers, smaller government, war veterans, and the eternal greatness of men like Thomas Jefferson and Ronald Reagan,
Here's the first sentence copied and pasted from our prior weekend piece: "The S&P 500 index climbed 26 points, or 3.1% for the week. A full 8 of those 26 points, or almost 1% came as a result of short covering in the last 23 minutes of Friday." Coincidentally, the last day of this past week, Thursday, exhibited the classic bear rally effect as well. Bear markets catch most off guard, as they work to eventually destroy more wealth than they create. POTC sure hopes no reader bought blindly on Thursday, especially the financials.
The past week saw the S&P down 26 points, from 842 close on Friday, April 3rd, to the 816 area on Tuesday and Wednesday. Then the last day of the shortened trading week, Thursday, witnessed a rally spurred by positive comments from Wells Fargo (WFC). Additionally the 20K drop in initial claims for unemployment was cheered, yet we warned last week of this false signal resulting from the smoothing effect of more government jobs. Although we mentioned in early March and late April, esp in the March 1st archived piece, that the pendulum was due to swing and we should rally above S&P 800+, we now urge traders to be very cautious in their stock and option selections.
Tuesday's after market earnings from Goldman Sachs (GS) will emphasize why being vigilant now is so important. It has to do with...
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Thursday, April 9, 2009

Send In The Secondarys

Thursday afternoon greetings to all; caution is urged with GS and MS right here!
After this wonderful rally in equities, please do not lose focus on the capital structure of your holding that just hiccuped, because a secondary offering may send your shares spiraling down the barrel, again...
You should to do a quick analysis of the capital structure/balance sheet of every company you own. IF you identify the stock(s) that are in greater need of liquidity/cash (which could be said for most companies today), then you need to take profits or else suffer the consequences of being diluted.
When a company needs liquidity, it can issue more shares at a specific price on a specific future date, therefore called a secondary or follow-on offering. MS and GS and all banks/companies that have TARP funds have a little window of opportunity to dilute shareholders, right here, right now. We recommend either taking profits or buying puts into this "V" S&P bear spike. POTC is convinced the recent bear rally is being exacerbated by what many talking heads blamed on the decline ironically, the ultrashort ETF's, specifically SKF.

Capitalist Pig Bob thinks Refinancing is NOT a Long-Term Wealth Creator, Only a Technicality of a Dumbed Down "New Normal"

WASHINGTON (Dow Jones)--U.S. President Barack Obama Thursday hailed historically low interest rates, which he said could save homeowners who refinance their mortgages about $1,600 a year. "Rates are as low as they've been since 1971," with the 30-year rate at 4.78%, Obama told reporters. He attributed the decline in part to "extraordinary actions" taken by the Federal Reserve, and in part to actions taken by his administration. Lower rates are prompting a flood of mortgage refinancings, which rose 88% Obama said. He noted that federal housing-finance giant Fannie Mae (FNM) refinanced $77 billion of mortgages in March, nearly twice the February amount, and their highest for a single month since 2003. The President's remarks came as Wells Fargo & Co. (WFC) projected better than expected first-quarter earnings, fueled by $100 billion of mortgage applications, a 64% increase over the prior quarter. Obama spoke to reporters after meeting homeowners from Washington, D.C. and northern Virginia who recently refinanced their mortgage loans. He estimated the average homeowner could pare hundreds of dollars a month, or an average of $1,600 a year, by refinancing, and urged homeowners who haven't refinanced to consider doing so. "We hope that everybody takes advantage of it," Obama added. He said between seven to nine million homeowners might qualify to refinance their mortgages at lower rates, putting more money in their pocket each month. He advised those looking to refinance to check out an online government resource, Obama warned homeowners to avoid refinancing scams, saying that if they are asked to pay money up-front before a refinancing, "it's probably a scam." The President declined to comment on piracy, telling reporters that he wants to keep the focus on the administration's efforts to keep people in their homes. -By Judith Burns, Dow Jones Newswires; 202-862-6692; (Tess Stynes contributed to this article.) Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 09, 2009 11:19 ET (15:19 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 11 19 AM EDT 04-09-09

Government Effect upon Employment is taking Hold, Will You be Ready for Friday's, May 1st Breakdown; Big Brother's Smoothing Won't Fool Us

WASHINGTON (Dow Jones)--New U.S. claims for state unemployment benefits fell by an unexpectedly large amount last week, although they remained at very high levels consistent with more steep declines in employment. However, total claims jumped to a fresh record high, a reflection of how hard it has become for the unemployed to find new work during the recession. Initial claims for state jobless benefits decreased 20,000 to 654,000 in the week ended April 4, the Labor Department said in a weekly report Thursday. That was the biggest decline since the beginning of the year, and more than doubled Wall Street expectations, according to a Dow Jones Newswires survey. The prior week's level was revised up. The four-week average - which aims to smooth volatility - fell 750 to 657,250. The U.S. has lost 5.1 million jobs since the recession started in late 2007, with over 2 million of those losses occurring in the last three months alone, pushing the unemployment rate to a 25-year high of 8.5%. The early-April jobless claims figures, if sustained in coming weeks, point to another monthly drop in the 600,000 to 700,000 range in April. The risk for the economy is that if the U.S. keeps losing jobs at that pace for too much longer, it could prevent a consumer-led recovery from taking hold. Federal Reserve economists now expect the jobless rate to rise "more steeply" into early 2010 before stabilizing "at a high level over the rest of the year," according to meeting minutes released Wednesday. According to Thursday's Labor Department report, the tally of continuing jobless claims - those drawn by workers collecting benefits for more than one week in the week ended March 28 - surged another 95,000 to 5,840,000, the highest level since the government started keeping track in 1967. Continuing claims have risen 12-straight weeks, and are up well over one million since the start of the year. The unemployment rate for workers with unemployment insurance rose 0.1 percentage point to 4.4%, a 26-year high. Not adjusted to reflect seasonal fluctuations, Kentucky reported the largest increase in new claims during the March 28 week, 5,029, due to layoffs in the automobile, trade and manufacturing industries. California reported the biggest decrease, 7,057, due to fewer layoffs in service and manufacturing industries. -By Brian Blackstone, Dow Jones Newswires; 202-828-3397; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 09, 2009 08:30 ET (12:30 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 08 30 AM EDT 04-09-09

Wednesday, April 8, 2009

Capitalist Pig Bob thinks Cap and Trade Bill will Hammer the Already Spent Consumer and Bloody the Energy Sector and S&P

WASHINGTON (Dow Jones)--The capture and storage of carbon dioxide is a top priority for the Obama administration, a senior White House official said Wednesday. While the mining sector and coal-powered utilities have been lobbying the administration for funding to help develop technology that hasn't yet been proven feasible at a large scale, many environmental groups with close ties to the White House have been urging the government to shy away from the technology, saying it holds false promise. "This is a priority for the administration," Joseph Aldy, special assistant to the president for energy and the environment, said at an energy conference here. "We know that it's going to be important to try and help push on this technology...and it's going to be really a key part of the energy portfolio as we move ahead," Aldy said. As groups such as the Sierra Club and Greenpeace fight new coal-fired power plants designed to integrate capture-and-storage technology at a later date, some coal proponents have questioned the administration's commitment to coal as a future source of energy. In addition to concerns about greenhouse gas emissions, environmental advocates also question long-term storage viability and many of the mining practices used to excavate the fossil fuel. Energy Secretary Steven Chu said Tuesday that developing "clean coal" technology that removes a substantial portion of the greenhouse gas emissions from the generation process was necessary to encourage major emitters such as China and India to develop lower-carbon economies. The U.S. has one of the largest deposits of coal in the world and, even based on current energy consumption rates, the U.S. could conceivably meet its demand needs for hundreds of years on the domestic resources. The recovery bill signed into legislation earlier this year included almost $3.4 billion to develop capture-and-storage technology. Also, in diplomatic dialogues with Canada - a major oil supplier to the U.S. - and coal-mining Australia, the President Barack Obama has agreed to cooperate on carbon capture and storage. One of Obama's top environmental advisors said Tuesday the administration largely approved of a climate bill drafted in the House of Representatives that includes a major funding provision for the technology. The administration has also pledged to continue pursuing investment in several commercial-scale test plants across the country. By Ian Talley, Dow Jones Newswires; (202) 862 9285;; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 08, 2009 14:15 ET (18:15 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 02 15 PM EDT 04-08-09

SEC Walking a Tightrope with Short Selling Rule Debate; the SEC Must Not Cross the Free Market Line

WASHINGTON (Dow Jones)--The U.S. Securities and Exchange Commission voted unanimously to seek public comments on all the proposed rules released Wednesday that seek to limit short selling. There are two types of proposals the SEC will consider possibly enacting after a 60-day comment period. One type aims to impose market-wide sales restrictions and another instead targets particular stocks that are in rapid decline. The two market-wide restrictions the SEC will consider include a rule similar to the old "uptick" rule and a modified uptick rule similar to Nasdaq's former bid test. In addition, the SEC also will solicit comments on three different types of "circuit-breaker" models, which would impose various restrictions on short sales for the remainder of a trading session if a particular security declines by 10%. If a circuit breaker is triggered, then traders could be subject to either an uptick restriction, a bid test restriction, or an outright short-selling ban on a particular security for the rest of the day. The Depression-era uptick rule, which the SEC abolished in 2007, prevented traders from short selling unless the price of the stock from the most recent trade was higher than the previous price. Short selling is the sale of borrowed shares by an investor hoping to profit by buying an equal number of shares later at a lower price to replace the borrowed stock. Also, Nasdaq used to have its own short-sale price restrictions known as a bid test, which prohibited short sales on many securities at a price lower than the highest national prevailing bid. All the short-sale price test restrictions were rescinded in 2007, however, after economic studies found they had little impact. All five of the SEC's commissioners indicated Wednesday they think there is value in exploring whether or not to impose additional short-selling restrictions given the current volatility in the markets. Both Republicans on the panel, however, appeared somewhat skeptical about whether or not bringing back some form of the old uptick rule would have the desired impact. "If the economic studies today prove out, that is if short-sale price tests do not effectively advance their stated purposes, we need to consider how investors might respond," Commissioner Troy Paredes said. -By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 08, 2009 11:47 ET (15:47 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 11 47 AM EDT 04-08-09

A Troubled Sector Rallies on Gov't Bailout Program; Desperate News Related Rallies Require Aggressive Traders to Short HIG, LNC and PRU

WASHINGTON (Dow Jones)--The U.S. Treasury Department on Wednesday confirmed that a number of life insurance companies could receive bailout funds under a program it created last fall to inject taxpayer funds into the ailing financial sector. "There are a number of life insurers who meet the requirements for the Capital Purchase Program because of their thrift or bank holding company status," said Treasury spokesman Andrew Williams. "These companies applied within appropriate deadlines. These are among the hundreds of financial institutions in the CPP pipeline that will be reviewed and funded as appropriate on a rolling basis." Treasury projects that only a small number of life insurance firms are likely to qualify for Treasury's Capital Purchase Program, a signature program designed to inject hundreds of billions of dollars into financial firms. According to The Wall Street Journal, companies such as Hartford Financial Services Group Inc., Genworth Financial Inc. and Lincoln National Corp., struck deals last autumn to buy regulated savings and loans so that they could qualify for the funds. Hartford and Lincoln have applied for funds under Treasury's Troubled Asset Relief Program. Genworth said it has applied with the office of Thrift Supervision to approve its thrift purchase as a step toward gaining access to federal funds. Meanwhile, Prudential Financial Inc. has also applied for the funds, The Wall Street Journal reported. Additionally, the Journal reported that MetLife Inc., the biggest publicly traded insurer by assets, hasn't commented on whether it has applied for TARP money. A Treasury official said the department still projects the CPP to be a $218 billion program. The Treasury said Tuesday that $198.8 billion has been spent, leaving little more than $19 billion left. That money will need to be split among not only the life insurers, but the hundreds of banks that have already filed applications to receive capital injections from the program. -By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255, (Michael Crittenden contributed to this report.) Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 08, 2009 10:51 ET (14:51 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 10 51 AM EDT 04-08-09

Tuesday, April 7, 2009

Monitoring the Earnings of the Mosaic Comapany (MOS)

Quick example of our Sunday analysis sent out to all subscribers in the "Psychology of the Upcoming Data": The Mosaic Company (MOS), Q3 '09, earnings per share are estimated at $.27/share. Year ago same quarter MOS earned $1.07/share. Revenues are estimated to come in at 1.89B, year ago they were 2.15B. 52 week high for MOS is $163, and the low of $22 printed 4 months ago. Currently MOS is trading at $45.64 and although MOS is in a good sector, agricultural chemicals, we would not recommend conservative traders go long ahead of report. IF shares pulled back sharply post report, as occurred with APOL last week, we'd consider buying MOS after it stabilized. MOS has benefited from the resiliency in the broad market bear rally lately. We predict MOS revisits the high $30's before it breaks half a hundred, caution.

Middle East Must Respect Avigdor Lieberman's Strong Tone; the Man is No Push-Over; Definitely a Rising Star on the World Political Stage...

JERUSALEM (AFP)--Israel's hawkish new Foreign Minister Avigdor Lieberman told foreign powers on Tuesday to stay out of Israeli politics, in an apparent reference to the flagging Middle East peace process. "We have never interfered in the affairs of others, and we expect from others that they not interfere in ours," Lieberman told a meeting of his ultra-nationalist Yisrael Beitenu party. "I do not expect from others that they have a stopwatch in hand and tell Israel when it must produce a responsible political program," he added. During a visit to Turkey on Monday, U.S. President Barack Obama voiced renewed hope that the Israeli-Palestinian conflict could be resolved on the basis of a two-state solution, and urged leaders on both sides for "courage" to make peace. "I believe that peace in the Middle East is possible. I think it will be based on two states side by side," he said. "In order to achieve that, both sides are going to have to make compromises. Now what we need is the political will and courage on the part of leadership," he added. Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 07, 2009 13:28 ET (17:28 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 01 28 PM EDT 04-07-09

Sunday, April 5, 2009

Psychology of the Upcoming Week's Earnings & Economic Data

The Psychology of the Call team (POTC) wishes you an April filled with greater health and wealth, greetings!
The S&P 500 index climbed 26 points, or 3.1% for the week. A full 8 of those 26 points, or almost 1% came as a result of short covering in the last 23 minutes of Friday. The prior week saw a powerful 48 point climb, good for a 6.25% S&P gain. So for the last 2 weeks we've witnessed an extremely aggressive technical bear claw back nearly 13% of the 53% implosion from last year's high of 1,425 to the early March lows of 666. Although POTC is still VERY much holding on to its thesis of being in the midst of a destructive bear market rally, we are heartened by the fear exhibited by the short money. Yet we believe the cause of this short covering is based on technical and political reasons more than fundamental balance sheet/supply and demand improvements, thus great caution is still urged. See if you agree with our take...
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Saturday, April 4, 2009

As a Subscriber to INO TV, You will Become Familiar with Italian Mathematician Leonardo Fibonacci's Science

POTC invites all forward-thinkers to consider incorporating INO TV into your trading repertoire. Our team has advertised nothing in order to avoid distractions, but now we know the risk:reward with this ad is squarely in your favor.
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Friday, April 3, 2009

Will Government's Massaging of the Yield Curve Change Credit Behavior; Many Wouldn't Loan Money even at 0% Today; a Conundrum Unfolding?

WASHINGTON (Dow Jones)--U.S. Federal Reserve Chairman Ben Bernanke said Friday that the central bank's stepped-up purchase programs for Treasury and mortgage-related securities have been successful in lowering key borrowing costs for households and companies. He also signaled that the Fed is keeping a close eye on the size of reserve balances held at the Fed by commercial banks, saying that if those balances aren't managed right, they could make it tougher for the Fed to eventually tighten policy. The Fed's programs to purchase up to $300 billion in longer-term Treasury securities and a combined $1.45 trillion in agency and agency-backed mortgage-backed securities "are having the intended effect," Bernanke said in prepared remarks to a Federal Reserve Bank of Richmond conference. Mortgage rates, which Bernanke said didn't respond much to the Fed's interest rate cuts, have declined between one and 1.5 percentage points since the MBS purchase plan was first announced last November, he said. "Over time, lower mortgage rates should help to improve conditions in the housing market, whose persistent weakness has had a major impact on economic and financial conditions more broadly, and will improve the financial condition of some households by facilitating refinancing," Bernanke said. Bernanke's speech didn't address the economy, other than to say that he has "great confidence" in its underlying strength. The speech was instead a detailed description of the Fed's balance sheet, which has ballooned since last September in the wake of the collapse of Lehman Brothers from less than $1 trillion to over $2 trillion. It'll likely get much bigger once the Fed's Treasury and MBS programs are fully implemented. "The Fed's holdings of high-quality securities are set to grow considerably," Bernanke said. In breaking down the Fed's balance sheet, Bernanke stressed that much of it is in short-term, high-quality assets. Only about 5% of it is comprised of loans to Bear Stearns and AIG, which carry more risk than other parts of the balance sheet. "We nevertheless expect to be fully repaid," Bernanke said. Bernanke said the eligible collateral for the Fed's $1 trillion Term Asset-Backed Securities Loan Facility, or TALF, will likely expand to include commercial mortgages and securities that aren't newly issued. -By Brian Blackstone, Dow Jones Newswires; 202-838-3397; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 03, 2009 12:00 ET (16:00 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 12 00 PM EDT 04-03-09

Wednesday, April 1, 2009

Public-Private Line Blurred; Capitalist Pig Bob thinks Obama's Cabinet is Setting a Repulsive Tone

Days after GM's CEO Rick Wagoner was forced out by the Obama administration, Treasury Secretary Timothy Geithner left open the possibility that such moves could happen again. In an interview with CBS Evening News anchor Katie Couric, Geithner acknowledged the government has had to do "exceptional things" – citing AIG as well as Fannie Mae and Freddie Mac. "We have changed management aboard," he said. "And where we've done that, we've done it because we thought that was necessary to make sure these institutions emerge stronger in the future." When asked if he would leave open the option to pressure a bank CEO to resign, Geithner replied: "Of course." In a separate interview with ABC News, Geithner said there was no difference in the way the administration has handled the auto and finance industries. As world leaders convene in London to address the global economic crisis, an increasingly confident Geithner predicted the "strongest coordinated global response" in generations would help revive the world's fractured economy. Citing initial commitments given by other countries, he said he was confident that broken financial systems would be fixed by growing trade and ensuring markets are expanding. "You're gonna see the strongest consensus on coordinated global stimulus you've seen in generations," he said. "A very powerful consensus on the kind of 21st century rules of the road for our financial systems." Geithner acknowledged the enormity of the crisis but said a unified effort would help reverse the financial downturn. "We're gonna have setbacks ahead," he said. "And that's why it's so important that we're moving together with the world to try to make sure we bring recovery back. And the world is with the president on this." Geithner also skirted criticism that the Treasury Department still has no mechanism for tracking how banks have spent billions of dollars in TARP money, saying the doled out dollars were showing immediate results. "Interest rates are now at historic lows … for mortgages," he said. "Millions of Americans are now able to refinance and take advantage of those interest rates. That's gonna reduce monthly payments very materially for millions of Americans."

Donkey Reid Promises Moderate Californification; Yet Capitalist Pig Bob thinks Coal Miners Stand to get the Ultimate Shaft

WASHINGTON (Dow Jones) -- Senate Majority Leader Harry Reid, D-Nev., said Wednesday that he will take up climate-change legislation being developed in the U.S. House of Representatives instead of pursuing a separate package in the U.S. Senate. "The Energy Committee is having trouble getting a bill out of the committee - it is taking too long," Reid said at an event sponsored by the Center for American Progress Action Fund. "The House is going to finish their bill by Memorial Day, so I think that it's to everyone's benefit that we follow what the House is doing." The Senate's top Democrat said he met Tuesday with a group of 10 Democrat senators, including from Ohio, Michigan and Indiana, who are concerned about the effect of climate-change legislation on their states. "We're going to have to work with them," Reid said. States such as Ohio and Indiana that depend on coal for electricity are concerned about bearing the brunt of climate legislation, since it would make traditional coal-fired electricity more expensive compared to "cleaner" fuels. California, whose lawmakers are pushing the House bill, would be less affected because the state is less coal-reliant. "People are afraid that this bill is going to have California written all over it," Reid said. He said that people "will be surprised at how moderate" the House bill will be - "moderate but good." -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day. (END) Dow Jones Newswires April 01, 2009 12:11 ET (16:11 GMT) Copyright (c) 2009 Dow Jones & Company, Inc.- - 12 11 PM EDT 04-01-09