Wednesday, December 29, 2010

FOCUS LIST for Q1, 2011 ..

The Psychology of the Call team (POTC) will be sending out 5 Psychological Financial Fusion (PFF ratio) Trade Alerts as well as 5 Post Earnings Trade Alerts (PETA) from January 10th - March 17th.

Our preliminary Q1 Focus List includes:

All quarterly and yearly subscribers will receive all 10 Trade Alerts. We look forward to a very educational and profitable Q1.

Any questions as a current or prospective subscriber, please send to:

Here's to '11 being the most profitable trading year ever,



Saturday, December 25, 2010

People's Bank of China (PBOC) Raises Rates by 0.25% to 5.81%; POTC Predicts Gold Breaks Below $1,150 in 2011 as China Tightens ..

BEIJING (Dow Jones)--China has decided to raise interest rates for the second time in slightly over two months, signaling the authorities' resolve to combat rising inflation despite concerns over intensifying capital inflows triggered by ultra easy monetary conditions in the U.S. and Japan.

Beijing's latest move also suggests the world's second-largest economy may be entering a relatively formal monetary tightening cycle and that policy-makers may have been convinced that the weapons used so far, such as credit rationing and artificial price controls, have failed to cool politically-sensitive consumer price pressures.

The People's Bank of China said Saturday that effective Sunday, it will raise the one-year yuan lending rate by 25 percentage points to 5.81% from 5.56%, and the one-year yuan deposit rate to 2.75% from 2.50%. The move comes after the central bank hiked on Oct. 19 the benchmark lending and deposit rates also by 25 percentage points each, the first rate hike in nearly three years.

Saturday's announcement shows that the PBOC will likely hike interest rates more often next year to curb overly ample liquidity and rising inflation, said Brian Jackson, an economist at the Royal Bank of Canada.

"We expected a rate hike by the end of the year, though Christmas Day is something of a surprise--a rate hike is not normally on the wish-list for Santa Claus, but in China's case this is a prudent move," said Jackson.

"We think it is increasingly clear that using quantitative measures--such as reserve ratios--to rein in liquidity and credit has not been enough, and that adjusting the price of credit--that is, interest rates--is needed to get price pressures under control, so today's move suggests Beijing is also coming around to this view," Jackson said. He expects 75 basis points of rate hikes in 2011.

The rate hike came one day after PBOC Deputy Governor Hu Xiaolian said the central bank will use a combination of tools, including interest rates and differentiated reserve requirement ratios to curb inflation and prevent asset price bubbles next year.

China has adopted various measures in the past few months in a bid to rein in inflation. The PBOC on Dec. 10 raised banks' reserve requirement ratio by 0.5 percentage points, requiring them to hold more deposit funds in reserve rather than lending them out, which marked its third hike in one month and the sixth such hike this year.

Beijing rolled out the tightening measures as inflation has become a growing threat to economic growth and social stability. The consumer price index rose 5.1% in November, the fastest increase in over two years. Some economists said they expect the CPI growth to further accelerate in December and January.

In December, the Politburo of the Communist Party, the highest decision-making body in China, also ratified a transition to a tighter monetary policy that has been in place for months, shifting its monetary policy stance to "prudent" from "moderately loose."

-Liu Li contributed to this article, Dow Jones Newswires; 8610-8400-7713;

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

December 25, 2010 06:44 ET (11:44 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 06 44 AM EST 12-25-10

Thursday, December 16, 2010

Bush Tax Brackets Get Extended; No Change ..

WASHINGTON (Dow Jones)--The House agreed to a two-year extension of tax cuts for individuals and businesses, sending the bill to President Barack Obama for signature and setting up a renewed fight over taxes in the 2012 election season.

The vote was 277-148.

The vote, which occurred just before midnight Thursday, ensures that current individual income tax rates, ranging from 10% to 35%, will remain in place through 2012. It marks a reversal of Obama's stance since his 2008 presidential campaign that he would allow tax rates to rise for people earning more than $200,000.

Businesses won the ability to deduct 100% of the cost of new equipment purchased through the end of 2011, instead of writing off those costs over seven years or longer. In 2012, that "bonus" depreciation drops to 50%.

The bill cuts worker payroll taxes by 2% of wages next year, lowering taxes by $1200 for a worker earning $60,000.

And it extends a panoply of tax breaks for businesses for 2010 and 2011, including the research tax credit, and depreciation tax breaks for retail stores and motorsports complexes.

Economists say new, temporary tax cuts in the bill should provide a modest boost to the economy, particularly through the one-year payroll tax cut. "People who are income-constrained will spend every penny," said Dan Seiver, professor of finance at San Diego State University.

But the most important effect, he said, is averting an increase in individual taxes that would have crimped household incomes. "Don't underestimate the impact of what might have happened had we not done this: a nasty jolt in the other direction," said Seiver.

Democratic leaders bemoaned the extension of tax cuts for wealthy people, but said they were compelled to urge members to vote for the compromise struck between President Obama and congressional Republicans, to prevent a tax increase on the middle-class.

House Speaker Nancy Pelosi (D., Calif.) argued the extension of tax cuts for upper-income would cost a "king's ransom" in terms of worsening the national debt. "I applaud President Obama for his side of the ledger. I'm sorry that the price that had to be paid for it is so high," she said.

Even some of the loudest House critics of the deal between Obama and Republicans ultimately voted in favor of it, saying they had little choice with Republicans set to take over the House.

"If we do not send this bill to the president's desk this year, he will certainly sign a worse bill next year," said Rep. Brad Sherman (D., Calif.).

Republicans largely supported the measure, citing the imperative to prevent an across-the-board tax hike. "It's too risky to play games with the economy, we need to stop this massive tax increase in its tracks," said Rep. Dave Camp (R., Mich.).

But some conservative Republicans said the deal fell short because it contains only a two-year extension of tax cuts, and restores the estate tax even though the tax is not in place in 2010.

"This is a tough call. No Republican in this Congress wants to see taxes raised on any American," said Rep. Mike Pence (R., Ind.), a leading conservative Republican. "We know that what we should be doing today is voting to extend all the tax rates permanently."

The tax bill passed after the House rejected an amendment from Rep. Earl Pomeroy (D., N.D.) that would have changed estate tax provisions, which would have required further action by the Senate.

Rank-and-file Democrats led by Reps. Anthony Weiner (D., N.Y.) and Peter Welch (D., Vt.) also managed to delay the vote for several hours by blocking a procedural motion. They demanded a separate vote on an alternative that would extend tax cuts but also included Democratic priorities like cost-of-living payments for elderly Social Security recipients, and infrastructure funding.

But they relented after being told that such a vote could delay final passage of the bill, for which Obama has been lobbying for quick action.

Obama called wavering House Democratic lawmakers throughout the week to argue the merits of his compromise agreement.

"This is a big deal for the president. When I talked to him, I told him one of my concerns was that the tax cuts would not end in 2012, because in an election year, I think it's very difficult to do that," said Rep. Elijah Cummings (D., Md.).

-By Martin Vaughan, Dow Jones Newswires; 202-862-9244;

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
December 17, 2010 00:05 ET (05:05 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 12 05 AM EST 12-17-10

Wednesday, December 15, 2010

Socioeconomic Reflections from a Self-Made Man, Goober is Back for More ...

I am shocked it takes a Chinese 'politburo' economist to school the Unemployed United States of America (U.S.S.A.) on monetary discipline/policy. Xia Bin is more credible than most of our AC/D.C. policy makers.

This tells me that something is very wrong. Here's the quote from Chinese central bank advisor Xia Bin: 
"as long as the world exercises no restraint in issuing global currencies such as the dollar, then the occurrence of another crisis is inevitable. Unlike the classical gold standard, there is no market-based feedback mechanism to bring the supply of pure fiat money in line with the demand and maintain long-run price stability". 

As a self-made man from the beautiful and rugged Northwest mountains I have read numerous examples, in the last couple years where a Chinese official has schooled the "land of the free and brave politicians" of how a free-market system should behave. Our FOMC is out of touch and Ben Bernanke is failing us fast.

Currency and trade wars are closer than most think. I fear our dollar will lose reserve currency status as interest rates become unhinged in 2011 or 2012. Our republic is being lost and in the hands of maniacs with NO understanding of free-market principles and leadership skills, none.

Signed, Goober.

Individual Liberty, Free Markets, and Peace .. (click quote below to read)

James Dorn, Cato Insutitute.

Tuesday, December 14, 2010

Paul's Harsh Comments and Upcoming Humphrey-Hawkins Testimony in February is Bound to Whipsaw Markets; Volatility Eyed ..

NEW YORK (Dow Jones)--Texas Congressman Ron Paul, poised to assume chairmanship of a House subcommittee on domestic monetary policy, warned on Tuesday that the U.S. is at risk of a surge in long-term bond yields that could presage soaring inflation.

In an interview with CNBC, the Texas Republican complained that the Federal Reserve's monetary policy caused the financial crisis, adding that the worst may be yet to come.

"I don't believe we are anywhere near the end of this [crisis], Paul said. "We're about to see the collapse of the bond bubble, with skyrocketing interest rates and inflation, and that will be a whole new ball game for us to face."

In the wake of the Fed's decision to maintain its $600 billion bond-buying program, yields on the benchmark 10-year Treasury note touched 3.494%, their highest level in more than six months. Treasurys prices, which trade inversely to yields, have sank as investors shed safe-haven assets in anticipation of an economic recovery.

The iconoclastic congressman, a fierce critic of the Fed, pointed to the central bank's policies as the cause of the economy's troubles. He reiterated his long-standing demands of more transparency and stronger oversight of the Fed.

"We need to ask more questions, then we should have a real audit of the Fed," he said.

-By Javier E. David, Dow Jones Newswires; 212-416-4564;

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
December 14, 2010 17:42 ET (22:42 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 05 42 PM EST 12-14-10

FOMC Decision and Comments ..

WASHINGTON (Dow Jones)--Federal Reserve officials stuck to their easy money policy of buying U.S. Treasury bonds and keeping short-term interest rates near zero amid new signs that the recovery is gathering some steam.

Fed officials also reaffirmed that their plan to buy $600 billion in U.S. Treasury debt through June would be subject to regular reviews and may be adjusted depending on how the economy fares. But after a one-day policy meeting--their last gathering of the year--they gave no indication that they're considering changing anything.

The Fed's widely expected decision came as new data showed consumers kicked off their holiday shopping with a burst of spending. Strong November retail sales and upward revisions to the prior two months led many private economists to raise their economic forecasts for the fourth quarter.

The Fed was restrained in its own assessment of how the economy is doing. The recovery is continuing, "though at a rate that has been insufficient to bring down unemployment", the central bank said in a statement at the end of the meeting. Consumer spending, a key growth engine for the U.S. economy, is increasing at a "moderate pace," officials said, adding as they have for months, that spending remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.

The Fed could be settling into a relatively quiet period after months of fraught decision-making. Because the bond buying program is scheduled to run through mid-2011, it could be in a position to spend the early part of next year assessing the program and the economy before signaling its next steps. Better economic growth and tame inflation take some pressure off the Fed to shift its stance for now, and taxes look likely to dominate Washington policy discussions.

Fed officials likely spent much of their meeting discussing how the bond buying is doing. The purchases are aimed at keeping longer-term borrowing rates, which are tied to U.S. Treasurys, low. They're also meant to drive investors into stocks and other riskier investments. The infusion of dollars into the financial system also has the potential to weaken the currency, which could help exports.

Many Fed officials believe the policy is working, though results have been mixed at best. Bond yields and the dollar fell in anticipation of the Nov. 3 decision to initiate the program, but both have jumped as stronger economic data and the tax-cut deal led investors to expect more growth and inflation--and to worry about budget deficits. Stock prices, meanwhile, have risen, a welcome development for the U.S. central bank.

Still, Fed officials say the program isn't a panacea. Top U.S. financial firms don't expect it to have big effects on either unemployment or prices, according to a survey released this week by the Securities Industry and Financial Markets Association, or Sifma. The survey also showed that 80% of respondents don't expect the Fed to increase short-term interest rates until 2012 or beyond. In its previous June forecast, more than 60% had predicted that the Fed would begin raising rates by mid-2011.

Jim O'Sullivan, chief economist at broker MF Global, said the Fed had one clear message: "We're not backing off. It's too soon to think about anything more, but we're not backing off of the $600 billion."

Kansas City Fed President Thomas Hoenig was the only dissenter to the Fed's decision Tuesday. Hoenig, who has formally objected to Fed policy at all eight of the committee's meetings this year, said in the release that easy money policies could, over time, increase long-term inflation expectations that may destabilize the economy.

Fed Chairman Ben Bernanke is likely to face some new dissent in 2011. Out of the four regional Fed bank presidents who will join the eight permanent voters on the FOMC next year, two have expressed reservations on the bond program: Richard Fisher of the Dallas Fed and Charles Plosser of the Philadelphia Fed. Neither has been shy about casting dissenting votes in the past.

Despite the economy's recent signs of improvement, two factors are likely to keep the Fed wedded to the program. At 9.8%, unemployment remains far from the Fed's objectives almost 18 months after the recession officially ended. Moreover, despite recent surges in commodities prices, broader inflation looks stable.

The Labor Department reported Tuesday that wholesale prices in the U.S. jumped last month, but excluding the volatile food and energy sectors, they were up just 1.2% from a year earlier.

Stubbornly high unemployment and persistently low inflation leave the U.S. economy vulnerable to shocks such as a new debt crisis in Europe.

Fed officials reiterated that short-term interest rates would remain close to zero for an "extended period" to aid the economy's slow progress. They said the central bank will "continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery."

In addition to buying $600 billion in government bonds through June, the Fed stuck to its plan to buy $300 billion more in bonds to replace mortgage bonds in its portfolio that are being retired.

The bond purchases were debated intensely within the central bank, with some officials worried it could bring high inflation down the road and lead the dollar to weaken too much. The move was also attacked by top Republicans at home and foreign government officials from Germany to Japan, who worried it would hurt their export-driven economies.

-By Luca Di Leo, Jon Hilsenrath and Jeffrey Sparshott; 202 862 6682;
(Tom Barkley and Jeff Bater 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
December 14, 2010 14:51 ET (19:51 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 02 51 PM EST 12-14-10WASHINGTON (Dow Jones)--The Federal Open Market Committee began its meeting at 8:30 a.m. EST Tuesday, as scheduled, a Federal Reserve spokeswoman said.
The Fed is expected to announce any decision the committee makes on short-term interest rates and release an accompanying statement on the economy at about 2:15 p.m. EST Tuesday.

-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629;

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
December 14, 2010 08:37 ET (13:37 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 08 37 AM EST 12-14-10

Monday, December 13, 2010

Upcoming Global Holidays Eyed ...

We hope you find this schedule useful from a technical perspective if nothing else..

December 16th & 17th - Ashura
Pakistan's markets, banks, businesses and government offices closed.

December 17th - Moharum
India's markets, banks, businesses and government offices closed.

December 23rd - Emperor's Birthday
Japan's markets, banks, businesses and government offices closed.

December 24th - Christmas Eve
Brazil's markets, banks, businesses and government offices closed.
Hong Kong's markets on half-day session.
Indonesia's markets, banks, businesses and government offices closed.
Philippine markets, banks, businesses and government offices closed.
Singapore's markets on half-day session.

December 27th - post-Christmas Holiday
Australia's markets, banks, businesses and government offices closed.
Hong Kong's markets, banks, businesses and government offices closed.
New Zealand's markets, banks, businesses and government offices closed.
U.K.'s markets, banks, businesses and government offices closed.

December 27th - Jose Rizal Day (substitute for Dec 30th)
Philippine markets, banks, businesses and government offices closed.

December 28th - Special Holiday
Australia's markets, banks, businesses and government offices closed.
New Zealand's markets, banks, businesses and government offices closed.

December 29th - Special Holiday
Japan's businesses and government offices closed.

December 30th - Special Holiday
Japan's businesses and government offices closed.

December 31st - New Year's Eve
Brazil's markets, banks, businesses and government offices closed.
Chile's banks and markets closed; Govt offices and businesses opened.
Hong Kong's markets on half-day session.
Indonesia's markets closed.
Philippine markets, banks, businesses and government offices closed.
Singapore's markets on half-day session.
Thailand's markets, banks, businesses and government offices closed.
Japan's markets, banks, businesses and government offices closed.

January 3rd - post-New Year holiday
Japan's markets, banks, businesses and government offices closed.
Thailand's markets, banks, businesses and government offices closed.
U.K.'s markets, banks, businesses and government offices closed.
Vietnam's markets, banks, businesses and government offices closed.

January 10th - Coming-of-Age Day
Japan's markets, banks, businesses and government offices closed.

January 17th - Birthday of Martin Luther King, Jr.
U.S. markets, banks, businesses and government offices closed.

January 20th - Thaipusam
Malaysia's markets, banks, businesses and government offices closed.

January 26th - Australia Day
Australia's markets, banks, businesses and government offices closed.

January 26th - Republic Day
India's markets, banks, businesses and government offices closed.

January 27th - Vietnam Day
Vietnam's markets, banks, businesses and government offices closed.

January 31st - Anniversary Day (Auckland)
New Zealand's markets, banks, businesses and government offices closed.

First Solar (FSLR) Live 2011 Earnings Update Tuesday, December 14, at 4:30 ET ...

With political change in the U.S. and Europe, fiscal responsibility is becoming an issue the solar sector must  address. How hard will Wall Street analysts question the quantity and quality of government subsidies as they model numbers for 2011 and beyond. Investors and traders will be looking for more clarity as solar sector price to earnings multiples have eroded substantially in 2010.

FLSR's updated earnings guidance for 2011 could cause volatility.

All POTC subscribers received a detailed Trade Alert and update. If you're interested in receiving this highly charged political write-up, why not become a subscriber today?

Thank You regardless, we enjoy you stopping by and witnessing zero ads. We work too hard to install  bogus click ads. Merry Christmas and Happy New Year. 

Software Piracy, China, Intellectual Property Rights (IPR), Yuan, Building Pressures, More Meetings Scheduled ...

WASHINGTON (Dow Jones)--The U.S. will press China next week to ensure that its recent crackdown on counterfeiters will produce meaningful and long-lasting results, a trade official said Friday.

The six-month campaign China launched in October to beef up enforcement of intellectual property rights has won guarded praise of the U.S. government and business community. But frustrated that past pledges to curtail rampant piracy have fallen short, U.S. business groups and lawmakers plan to push for China to agree to benchmarks to demonstrate real progress, at annual high-level trade talks held in Washington next Tuesday and Wednesday.

A U.S. trade official declined to discuss specific proposals being considered, but said the U.S. will seek to build on China's own efforts.

"We're trying to work with China on ensuring that what China does is meaningful in terms of helping our own innovators benefit from increased protections from on [intellectual property rights]," the official told reporters on Friday.

Deputy Under Secretary of Commerce for Intellectual Property Sharon Barner said last week she is encouraged that the campaign is being promoted at the highest levels of the Chinese government. But given the fate of past promises, she said the administration will "watch closely to determine whether or not there is indeed active engagement on protecting IP rights."

U.S. Trade Representative Ron Kirk and Commerce Secretary Gary Locke are co-hosting the Joint Commission on Commerce and Trade, with Vice Premier Wang Qishan leading a Chinese delegation expected to approach 100 in size.

Lax enforcement of intellectual property rights is just part of a broader range of concerns about China's policies aimed at encouraging innovation domestically.

The currency issue may be the most heated economic dispute between the countries, but many multi-nationals doing business in China say they are more threatened by the so-called "indigenous innovation" policies. They complain that the policies restrict access to the country's lucrative government procurement market and create pressure to give up sensitive technologies.

"The business community has not seen tangible steps yet that China is pulling back from these policies," said Jeremie Waterman, senior director for greater China at the U.S. Chamber of Commerce. "There seems to be a slow walk going on at the central level, meanwhile, discrimination is occurring at the provincial level."

Newly empowered Republicans in the House, such as incoming Ways and Means Chairman Dave Camp (R., Mich.), have also signaled that they plan to shift the focus away from China's undervalued yuan to concerns about innovation and intellectual property rights. While the House has passed legislation to retaliate against China's weak currency by imposing duties, there is little chance that it will be taken up by the Senate this year and become law.

Camp and 32 other House members from both parties sent a letter Friday to Locke and Kirk calling for measurable results on China's commitments to improve market access and intellectual property rights (IPR).

"We urge the administration to measure progress on greater U.S. market access into China and protection of U.S. intellectual property rights by objective criteria," the letter said, proposing benchmarks on higher exports to China and a reduction in piracy.

That follows a letter that a bipartisan group of 32 U.S. senators sent to Wang earlier in the week demanding concrete progress during the talks. They urged China to ensure that intellectual property enforcement produces measurable results, its innovation policies don't discriminate, and that restrictions are lifted on U.S. beef imports.

The senators also warned that they could take up the House currency bill unless the yuan is allowed to "appreciate meaningfully" before President Hu Jintao comes to town next month to meet with President Barack Obama.

Despite complaints that the annual trade talks rarely produce significant or lasting results, business groups hope the presidential meeting will improve prospects for progress.

One area of focus is reducing software piracy in a country with a piracy rate of 79%, creating lost revenue of $7.9 billion for software makers last year, according to the Business Software Alliance.

A push by the trade group, which includes tech giants like Apple Inc. (AAPL) and Microsoft Corp. (MSFT), for specific commitments like a 50% rise in software sales and independent verification of legal software use has garnered support on Capitol Hill.

"Whether this agreement results in a significant resolution of the IPR problem will be judged not by a six-month campaign or by a series of statement, but by the proof of whether sales are increasing year over year," Robert Holleyman, president and chief executive of the Business Software Alliance, said.

Holleyman said he is "guardedly optimistic" about progress, following a meeting last month with Wang to discuss China's plan to ensure that government bureaus and businesses are using legitimate software.

The U.S. trade official declined to comment on the proposal, but said the administration is "taking on board a lot of the concerns from the software industry" and will press China for sustainable results.

-By Tom Barkley, Dow Jones Newswires; 202-862-9275;

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

December 13, 2010 07:36 ET (12:36 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 07 36 AM EST 12-13-10

First Solar (FSLR) in Focus; Subscription Information Included ..

The Psychology of the Call team (POTC) sent all subscribers a political Trade Alert we're very excited about.

If you're interested in discreet one-on-one e-mail advice with aggressive derivative strategies in 2011, please sign-up through PayPal in the right margin. We look forward to welcoming and introducing you to more scientific trading techniques.

Capitalist Pig Bob, our Chief Political Correspondent on Facebook, adds color with witty insights of why Darwinian markets must be held in reverence and backbone future societies.

If you have any questions about our services and many happy subscribers, please mail us and we'll reply in a quick and straightforward way:

Saturday, December 11, 2010

Socioeconomic Reflections from a Self-Made Man; Also Known As Goober on Zero Hedge ...

I understand your thoughts on gold, am watching it 'all' very closely. But I struggle with what the future holds, especially short-term, 30-90 days. Seeing that not all governments are on a deficit spending frenzy like the Westerners and the periphery of Europa, some showing fiscal restraint and becoming less destructive like Germany.

It seems quite obvious Benjamin Bernanke (BB) will throw greenbacks at the problem in an effort to inflate away, instead of just allowing the failed to fall. I agree with Capitalist Pig Bob's theory of Darwinian free-markets. George "W" should have never bailed in the first place. Once one realizes that there are still trillions of dollars of derivatives hiding on banks'  balance sheets all over the world, and that nothing has been fixed but actually shoddier by virtue of MORE debt and government control/intervention/regulations. 

God forbid another 9/11 event in these burdened socioeconomic scenarios. I have a hard time concluding precious metals (PM) will not be part of a new system in whatever may come down the road. China / Russia and others seem to be aligning towards a new economic paradigm and currencies backed by PMs. I have come to this conclusion not by overreaction, I do a lot of research. I doubt there will be any way to back away and worry in the ability to ever get long stocks again. Maybe the rubber band this time will be too frayed and snap? In fact I think the PUMP is enablimg and fooling investors that everything is OK before the potential crash of PMs, as they are the nemesis of FIATs world-wide and could become a financial weapon against all average Joes when currencies have to devaluate, and the very few in PMs will survive. 

Putin and his cronies, and even Chinese communist guard is accumulating the PMs. I think BB is a monlith and out of touch, his education means nothing to me as he is stubborn in his madness of zero percent and greenback dilution for too long. Countries like Russia and China could eventually bring the Unemployed U.S.A. (U.S.S.A.) to its kneecaps fast. Besides, with no jobs, real estate is dead  probably for 10 yrs, maybe even more ....

States like CA, IL, and NY could go bankrupt soon and the municipal market would be weaker than the corporate market? Wow !

Just what REAL fundamentals will suddenly improve? A rising stock market you say, but for how long? I have big doubts about shareholder confidence if the some bad event happened and another flash crash happens. The huge bounce in stock prices could turn out to be a temporary and false stimulation. All the #s reported have been titanic lies as they are driven by plastic greenbacks, and the accounting of the unemployment rate should be a sketch on Saturday Night Live . Reality cannot be hidden for too much longer. Sites like Zero Hedge (ZH) offer many great truths. There is a power and importance of Internet sites and blogs compared to the moderno cable head society. These less traveled sites actually tell the TRUTH, unlike the PRAVDA machines, especially NBC. Even Fox has people who are clueless to economics, Bill O'Reilly is one, I see through his bs and self-serving character. Glenn Beck reports more TRUTHS, though he isn't as credible since he is a recovering alcoholic with no college degrees? Unfair imo. Look at the stupidity of Ivy Leaguers like Obama, Geithner, Bernanke, Orszag, and Summers, all sweeter than a box of California grapefruits, but the  liberal American flock was fooled, though some of the seagulls are catching wind and becoming disillusioned that nothing has CHANGED and "YES WE CAN" means "More Of The Same" (MOTS): wars, taxes, guantanamo bay, fannie, freddie, etc.), but some remain hooked to the Obama drip and refuse to recognize he was never qualified beyond southside Chicago Community Organizing, and never-ever Commander in Chief of the United States, aka U.S.S.A. after Obama Care and that partisan Financial bill from Barney Frank and Christopher Dodd. Two freaks on different spectrums of the definition.          

POTC is excellent too, they called things perfectly in 2008, before any meltdowns occurred, they were ahead of most. I wade thru the conspiratorial fluff on sites like ZH and POTC, but that is easy compared to the propagandist regime of OBAMA and its PRAVDA FED political machine.  The motives are all too  obvious imo: redistributing wealth and keeping the status-quo alive, then holding and staying in power at taxpayer expense. I do not see any of this changing for the better, therefore I'm reluctant to sell my PMs and then back in? I am watching all events very closely, probably 10X more than most. As far as my learning curve, it isn't a big deal, but thanks for the compliment. Anybody that spends as much time would have similar success imo. I work hard and feel blessed with an ability to focus. I and VERY tenacious/persistent/tough. Kinda like a mean pit bull, I don't let go when I smell blood. I will win once I've identified the end game, or die trying to gain more knowledge and understanding at the very least if proven wrong. Just the way it is for me, no big deal, I am fine with that as it has served me well for decades. 

I have been in far worse situations than today. Only difference is it is all on a grander economic scale and shorter time line now imo, world wide ! What most people are clueless about is that the stock markets can degrade overnight way worse as they are built upon the plastic U.U.S.A. safe-haven treasury bond illusion. Stimulus III and more QE anyone? The U.U.S.A. is teetering on the brink of reserve currency collapse and the beacon of hope and guiding light ! I have no doubts. I take it all Very serious and therefore protect myself and think ahead. I do no trust 90%+ of our so-called "leaders", only a handful at best .

I have several exit strategies already in place at all times and attempt to protect those strategies or change them as events dictate. I do not pretend to KNOW what is going to happen, only keep a watchful eye as much as possible and be prepared for anything including a bullish market based on what? At some point in the not too distant future I will leave or buy fertile acreage, not 100% sure yet. Watching closely. Depends on how things play out. I am actually torn between the two for various personal reasons now. Your help has been invaluable in my learning curve.  
Most agree I'm a simple and self-made guy that pays attention to the cause & effect of stuff and refuse to fall for illusion. I am but a Goober and relate to the picture posted, thanks POTC !

Friday, December 10, 2010

Pimco Ups U.S. GDP Forecast in 2011 to 3% - 3.5%; Subscription Information Included ..

CNBC reported this morning that Pimco has ratcheted up GDP forecasts. POTC believes this action was taken just ahead of the likely extension of the Bush-era tax brackets this coming Monday, December 13th.

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Capitalist Pig Bob, POTC's Chief Political Correspondent on Facebookadds color with witty insights of why Darwinian markets must be held in reverence and backbone future societies.

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~Let's Roll Down Wall Street Together in 2011~

Apple's Next iPad Production is Coming in Q1, 2011; Tech Bull Market Continues to Ramp ..

DJ Apple Suppliers Point To New Camera-Loaded iPad In 2011 - Reuters

Apple Inc. (AAPL) component suppliers are gearing up for a new round of iPad production in the first quarter of next year, likely a revamped model of the tablet, Reuters said on its website Friday, citing unnamed sources.

The revamped model of the iPad will feature front- and back-mounted cameras, one source said, while another said the new model will be slimmer, lighter and have a better resolution display, the report said.

The suppliers involved in the new production include Wintek Corp. (2384.TW), Simplo Technology Co. Ltd. (6121.OT) and AVY Precision Technology Inc. (5392.OT), as well as camera module makers Genius Electronic Optical Co. Ltd. (3406.TW) and Largan Precision Co. Ltd. (3008.TW), the report said, citing two of the sources.

Spokespeople at all five companies either declined to comment or weren't immediately contactable, while the Apple spokeswoman declined comment, the report said.

Full Story:

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(END) Dow Jones Newswires
December 10, 2010 01:10 ET (06:10 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 01 10 AM EST 12-10-10

Thursday, December 9, 2010

China's Communist Party Tightens Monetary Policy to "Prudent" ...

SHANGHAI (Dow Jones)--China's banking regulator has issued new guidelines to tighten regulations on the transfer of bank loans, in another step to reduce risks in the country's financial system following last year's lending binge, a person familiar with the situation told Dow Jones Newswires on Thursday.

The stringent rules, which have already begun sapping loan trading activity according to bankers, are part of Beijing's efforts to rein in excessive credit growth to cool a fast-expanding economy and two-year-high inflation.

But they will also likely arrest the development of China's newly created secondary loan platform, launched by the central bank in late September to help banks boost capital, reduce risks and facilitate interest rate reform. The new marketplace was partly created to increase the transparency of loan trading in China, where similar transactions had previously been conducted on an opaque, over-the-counter basis.

In an internal directive dated Dec. 3, the China Banking Regulatory Commission required counterparties of any loan transfer to sign new contracts that specify liability and that the transfer must cover the loan's full principal and interest income, said the person, who declined to be named. Partial loan transfers aren't allowed, he added.

The rules also stipulate that contracts for loan transfers can't include buyback options, he said.

In addition, buyers of loans must reflect the new liability in their balance sheets and sellers have to remove them, the person said.

"The CBRC's move is an additional measure which will further contribute to the authorities' efforts to slow lending growth in the country," said She Minhua, an analyst with Zhong De Securities.

Chinese banks tend to seek loan transfers near the end of each quarter to dress up their balance sheets and satisfy regulatory requirements on capital and risk controls.

Amid mounting concerns over the health of China's banking system, the CBRC has in recent months asked commercial banks nationwide -- especially major state-run lenders -- to beef up their capital bases and set aside more provisions for potential bad assets.

In a report last week, Fitch Ratings estimated that China's banks have already surpassed the CNY7.5 trillion ($1.126 trillion) limit regulators set on new local currency lending for this year, and also extended more than CNY3 trillion in credit that hasn't been recorded on their balance sheets.

Fitch said that in total lending, that is largely unchanged from 2009, when China's banks led a massive expansion of credit "roughly doubling the volume of new loans from a year earlier" as part of a stimulus program to keep the economy humming during the global financial crisis.

"The tougher loan transfer guidelines form lots of extra obstacles for participants in China's nascent secondary loan market," said a Beijing-based banker who declined to be named.

"The trading volume on the new market has already started to drop sharply as a result of the new rules," the banker said.

Besides the impact on the banking industry, the CBRC's new rules on loan transfers are also part of Beijing's broader strategy of exiting an essentially ultra-loose monetary policy.

China's consumer price index is estimated to have risen 4.7% from the same month last year, according to the median forecast in a survey of 15 economists, up from October's 4.4% rise.

The Chinese government has signalled its intent to keep inflation under control. Last week, the Politburo of the Chinese Communist Party ratified a transition to a tighter monetary policy that has been underway for months, shifting its monetary policy stance to "prudent" from "moderately loose."

-By China Bureau, Dow Jones Newswires; 86-21-6120-1200;

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(END) Dow Jones Newswires
December 09, 2010 06:46 ET (11:46 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 06 46 AM EST 12-09-10

Wednesday, December 8, 2010

POTC Subscribers Took Profits in OREX this AM and are Moving On ..

We are very proud OREX's drug Contrave received a favorable ruling from an FDA advisory panel, and more happy for POTC subscribers who booked astronomical profits in the JAN $6 CALLs on open.
We're now shifting our focus to two other possible biotech winners. The two stocks and option trade advice is as follows ...
To receive this information, please sign-up through PayPal in the right margin and begin the New Year on an exciting journey of aggressive yet more patient and scientific trading strategies.
The Psychology of the Call team thanks all who signed up to our services in 2010, without your support we would not exist.

Tuesday, December 7, 2010

OREX's Diet Drug Contrave Gets 13 - 7 Vote; BIG CONGRATS to All Holding the JAN LEAPS

WASHINGTON (Dow Jones)--A federal advisory panel Tuesday backed the use of a proposed weight-loss drug from Orexigen Therapeutics Inc. (OREX), saying potential safety concerns could be addressed in a clinical study after approval.

Shares more than doubled in value once after-hours trading resumed. The stock recently was up 150% at $12.15.

The panel of medical experts voted 13 to 7 that the benefits of the drug, Contrave, outweighed its potential risks. The vote amounts to a recommendation that the Food and Drug Administration approve the product.

The agency has a deadline of late January to make a decision, although FDA could delay the decision while details of a follow up clinical study are worked out. The FDA isn't required to follow the advice of its advisory panels but usually does.

Contrave, which is being developed with Takeda Pharmaceutical Co. (TKPYY, 4502.TO), is a combination of two drugs already on the market, addiction-treating naltrexone and the antidepressant bupropion, commonly known by the brand name Wellbutrin.

The FDA said Contrave modestly raises blood pressure in some patients and that the long-term cardiovascular risk is unclear and the panel was asked to vote on whether it thought a study looking at cardiovascular risk should be conducted before or after approval the drug. The panel voted 11 to 8, with one person abstaining, that such a study could be conducted post-market.

The agency said given the size and duration of Contrave studies, which lasted about a year and involved about 4,500 patients, the number of cardiac events was too small to make "reliable inferences about [Contrave's] effect on cardiovascular risk." The agency said it was in the early stages of discussing a study with Orexigen that would look at cardiovascular risks. An agency official told the advisory panel the study would be required if the drug were to be approved.

"We at Orexigen are not unaware of the challenges by those facing approval of obesity products," said Dawn Viveash, a senior vice president of the company.

Indeed, some panel members expressed concerns that the amount of weight loss seen among patients taking Contrave was modest. The drug met one FDA effectiveness standard but not a second measure, although only one is needed for FDA approval.

John Buse, a prominent diabetes researcher at the University of North Carolina who raised concerns about the safety of the diabetes drug Avandia several years ago, spoke on behalf of Orexigen, and said "a post approval study is appropriate and the only way to move forward."

Other company representatives noted that two ingredients in Contrave have been on the market for 20 years and haven't shown major cardiovascular safety problems.

Eric Colman, deputy director of FDA's division of metabolism and endocrinology products, said one of the main questions the agency was struggling with was whether to require a cardiovascular outcomes study before or after approval.

The agency has struggled with safety problems with diet drugs for several years most notably 13 years ago, when the two diet drugs that made up the famous fen-phen combination were linked to heart-valve damage and to a rare but potentially deadly lung disease.

In October, FDA asked Abbott Laboratories to pull its weight loss Meridia off the market saying "very modest weight loss" seen with the drug didn't justify its risk of heart attack or stroke.

The same month the FDA agency declined to approve proposed weight loss drugs from Arena Pharmaceuticals Inc. (ARNA) and Vivus Inc. (VVUS).

The FDA has expressed concerns about the side effects of obesity medicines, especially because millions of people could use the pills indefinitely.

Shares of Arena and Vivus jumped 15% and 11%, respectively, after hours. Analysts had suggested a pre-approval study requirement of Contrave's cardiovascular risks would open the door to such a requirement for all obesity drugs. The stocks of all three companies have been volatile this year, vacillating whenever one of their drugs hit a new hurdle or marked a new victory.

--By Jennifer Corbett Dooren, Dow Jones Newswires; 202-862-9294;

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(END) Dow Jones Newswires
December 07, 2010 19:06 ET (00:06 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 07 06 PM EST 12-07-10

Monday, December 6, 2010

Two Years of Failed Economic Policies Force Lame Ducks to Negotiate with Fiscal Conservatives ..

WASHINGTON (Dow Jones)--President Barack Obama's proposed deal with Republican leaders in Congress to extend tax cuts for two years is already catching plenty of criticism within his party, as Democrats prepare to debate the plan Tuesday.

House Majority Leader Steny Hoyer (D., Md.) criticized the extension of tax cuts for top earners, while House Speaker Nancy Pelosi (D, Calif.) said the estate tax proposal Obama backed adds "insult to injury."

Aware of this pushback, Obama held a televised press conference to defend the agreement as "good for country." Obama said he remained opposed to tax cuts for wealthy individuals, but said it was unlikely to convince Republicans to extend the tax breaks just for the middle class.

"In this case, the hostage was American people and I was not willing to see them get harmed," Obama said.

Obama's allies in the Capitol gave the agreement a harsh review. Pelosi said the estate tax plan "would help only 39,000 of America's richest families, while adding about $25 billion more to the deficit." The plan would exempt all estate wealth under $5 million and tax estates above that amount at 35%, for the next two years.

At the same time, Pelosi said extending tax cuts for the middle class will create jobs. "We will continue discussions with the president and our caucus in the days ahead," Pelosi said.

Importantly, House leaders didn't outright reject the parameters of the agreement, saying they need to put the plan before all of their members. House Democrats will meet in full caucus Tuesday evening.

Vice President Joe Biden met with Senate Democrats Tuesday afternoon to try to quell unrest over the plan. Besides concerns about the deficit, Democrats are frustrated that the framework would extend tax cuts for top earners, and that it includes an estate-tax provision that the majority of Democrats believes is too generous.

Rep. Bill Pascrell (D., N.J.) said in an interview he is unsure if a majority of House Democrats will back the plan, as some feel the president is "almost treating us as irrelevant."

"They got him to blink first," Pascrell said of Republicans, "and many of us are very dubious about that."

Sen. Mary Landrieu (D., La.), a centrist Democrat, said she is undecided on the bill, citing strong objections to extending the tax cuts for Americans with annual incomes above $1 million.

"We're going to borrow $46 billion from the poor, from the middle class, from businesses of all give a tax cut to families in America today that, despite the recession, are making over a million dollars" Landrieu said. "This is unprecedented"

She expressed disappointment that Obama "didn't think any of us cared about it," Landrieu said. "I want him to know, I do care."

Sen. Mark Warner (D., Va.), a leader of centrist Democrats in the Senate, criticized the tax-cut extension deal struck by the White House and Republicans because it would worsen the deficit.

"This basically takes a traditional Washington approach of, 'Let's add to the deficit and kick the can down the road,'" Warner said Tuesday morning on MSNBC.

Warner said he will wait until he reviews the details to announce how he will vote on the package, but said he is disappointed the deal will add billions of dollars to the deficit without addressing the budget gap over the long term.

Financial markets welcomed word of the broad tax agreement, with the Dow Jones Industrial Average recently up 42 points at 11404. Analysts at Wells Fargo Securities said the agreement "should help to reduce uncertainty within the financial markets."

"The result of this deal, once passed, will support greater income and spending on the part of consumers and provide investors with a much clearer picture of short-term fiscal policy," Wells Fargo analysts said in a note to investors.

The deal doesn't include an extension of Build America Bonds, federally subsidized bonds for state and local infrastructure projects that Obama has championed.

More than $150 billion of the bonds have been issued to help finance projects including upgrades to Alaskan airports and to school, water, sewer and electric facilities across the country.

Senior administration officials have implied that the White House-GOP deal didn't address Build America Bonds and other issues such as expiring energy tax credits, and that such provisions could be added in before the legislation comes to the House or Senate floor.

But Republican opposition to the bond program makes that prospect extremely uncertain.

Obama and congressional Republicans Monday announced a compromise deal to extend the Bush tax cuts across the board until 2013, including a 15% tax rate on capital gains and dividends.

Sen. Olympia Snowe (R., Maine.), said she will vote for the agreement when it reaches the Senate floor. She praised the extension of tax cuts and expiring unemployment benefits, calling the deal a "display of bipartisan cooperation at a time when this country desperately requires it."

Under the deal, estate taxes would be set at 35%, exempting all estate wealth under $5 million. Businesses would get a retroactive, two-year extension of tax cuts that lapsed at the beginning of 2010, including a tax credit for research and development.

The deal also would lower worker payroll taxes by two percentage points in 2011, adding $120 billion to the deficit. It would extend unemployment benefits through the end of 2011.

Businesses would be allowed to write off 100% of new equipment purchases in 2011, another proposal pushed by the White House. In 2012, that "bonus depreciation" would be reduced to 50% of the cost of new equipment.

-By Martin Vaughan and Corey Boles, Dow Jones Newswires; 202-862-9244;

-Alan Zibel contributed to this article.

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(END) Dow Jones Newswires
December 07, 2010 14:51 ET (19:51 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 02 51 PM EST 12-07-10


The meeting is set to occur at 3:30pm EST among the president, Senate Majority Leader Harry Reid (D., Nev.), Assistant Majority Leader Richard Durbin (D., Ill.), House Speaker Nancy Pelosi (D., Calif.) and House Majority Leader Steny Hoyer (D., Md.).
One congressional aide said the president is expected to provide an update to the Democratic leaders rather than present details of a final deal administration officials have worked out with Republicans.
The broad parameters of a deal on how to extend the tax cuts appear to be taking shape. It is likely to include a one- or two-year extension of the Bush tax cuts that expire at the end of the year, a year-long renewal of federal jobless benefits and possible renewal of a raft of other tax measures aimed at the middle class.
-By Corey Boles, Dow Jones Newswires; 202-862-6601;
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(END) Dow Jones Newswires
December 06, 2010 13:55 ET (18:55 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 01 55 PM EST 12-06-10

Sunday, December 5, 2010

Political Money & Banking Deja Vu from May, '03 to December, '10; What "Change" Has Obama Made Except Increasing Government Spending and Apologizing to Enemies and Dissing Allies?

(CBS) May, 2003: President George W. Bush once ridiculed the tax bill he signed Wednesday as "a little-bitty tax cut" -- today, he hailed it as fuel for an economic recovery.
"By ensuring that Americans have more to spend, to save and to invest, this legislation is adding fuel to an economic recovery," Mr. Bush said. "We have taken aggressive action to strengthen the foundation of our economy so that every American who wants to work will be able to find a job."
But unless future congresses are willing to yank back benefits like the $1000 per child tax credit, the little bitty tax cut will actually cost not $350 billion, but close to a trillion dollars over the next ten years, reports CBS News White House Correspondent Bill Plante.
That's because in order to hold the cost of the cuts at $350 billion and make it sound reasonable, lawmakers had to get creative. So they made almost every one of the cuts expire over the next few years.
The 10-year legislation, which Mr. Bush signed with considerable fanfare at a White House ceremony, will within weeks start speeding refunds to parents and fattening paychecks and investor earnings.
The Internal Revenue Service is posting new withholding tax tables so employers can start leaving more money in workers' paychecks starting next month; child tax credits checks of up to $400 per child will begin arriving in the mailboxes of 25 million eligible families in July, the president noted.
The bill-signing in the East Room was for the third-largest tax cut in the nation's history. It came hours after Mr. Bush quietly signed a bill extending unemployment benefits by 13 weeks to laid-off workers who have used up their 26 weeks of regular state benefits, reports CBS News Correspondent Mark Knoller.
Unlike the tax cut, Mr. Bush signed the unemployment bill without fanfare. The White House announced it in a one-sentence statement.
It's the third such extension enacted into law and reflects the growing unemployment rate, now at an eight-year high of six percent. The extended benefit provides the unemployed with about $260 a week.
Wednesday's tax cut event also comes a day after Mr. Bush -- with no comment or ceremony -- signed a bill allowing the federal government to borrow as much as $7.4 trillion.
The $984 billion increase in the federal debt limit, which the White House announced in a 20-word statement from the press secretary, is the largest on record. It will help pay for the new tax cuts that the GOP-run Congress passed on close votes at Bush's behest.
Mr. Bush said the tax legislation will provide relief to 136 million American taxpayers.
"We are helping workers who need more take-home pay," he said. "We are helping seniors who rely on dividends. We are helping small business owners looking to grow and create more jobs. We are helping families with children who will receive immediate relief."
Democrats have sought to draw attention to the federal IOUs that have resumed piling up under Mr. Bush, and which are projected to balloon further with the new tax cuts.
After running annual surpluses during the last four years of the Clinton administration, huge federal deficits have returned with no end in sight. This year's is expected to exceed $300 billion -- a record in dollars, albeit not as a percentage of the national economy.
Senate Majority Leader Bill Frist countered that spending the money now will create a healthy economy that will help the nation eliminate shortfalls later on.
"I don't like the fact that we are having to borrow money today," Frist, R-Tenn., said on PBS. "But ... by giving individuals more money to spend and also creating more jobs in the economy, we will be able to grow that economy, which over time will make that deficit disappear."
Democrats also have criticized the package as a giveaway to the wealthy, stressing its cuts on taxes on capital gains and corporate dividends rather than its lower income tax rates and increases in the federal child credit. Frist dismissed that emphasis as "the old, worn-out, tired, class warfare issue."
As Mr. Bush traveled widely to sell his package, he portrayed the ailing economy as something he inherited, taking care to mention that the recession took place in 2001's first three quarters -- the beginning of his presidency. That period of negative growth was then exacerbated by that fall's terrorist attacks and corporate corruption scandals, he often said.
The intent was to place the problems' creation outside the president's control, while positioning him to gain credit for trying to fix them.
But after a $1.35 trillion tax cut in 2001, a $96 billion stimulus last fall and the new $350 billion package, it is widely agreed that Mr. Bush now has ownership of the economy for better or for worse.
Democrats hope the economy will help them score politically. They repeatedly highlight the job losses over Mr. Bush's term -- 2.7 million private sector jobs. White House press secretary Ari Fleischer said Tuesday the new measure would create "more than one million jobs," but even that figure would amount to a net loss without other developments.
The bill accelerates several income tax cuts previously scheduled to take effect later in the decade, including rate cuts and the federal child credit; lowers taxes on many married couples; eases levies on investors; and allows bigger write-offs for small businesses.
Mr. Bush first forwarded his tax-cutting blueprint in January -- a $726 billion tax cut that exposed divisions among Republicans and drew skepticism from Federal Reserve Chairman Alan Greenspan.
The GOP-controlled Congress then scaled it back, with the House setting a $550 billion maximum and the Senate backing no more than $350 billion.
With three tax cuts in three years, President Bush has now put his personal stamp on economic policy -- reducing the size of government and attempting to stimulate the economy. If it doesn't respond before next year's election, he may find it hard to blame anyone else.
Copied and pasted from a CBS Internet piece from May 28, 2003.

Friday, December 3, 2010

Early Winter Ensures Higher Natural-Gas Prices ..

NEW YORK (Dow Jones)--Natural gas futures settled slightly higher Friday as forecasts for cold weather in the coming week outweighed pressure from ample supplies.
Natural gas for January delivery settled 0.6 cent, or 0.1% higher, at $4.349 a million British thermal units on the New York Mercantile Exchange. Futures rose for the third consecutive session, but fell 1.1% on the week.
Forecasters continue to see cold across much of the eastern half of the U.S. beginning this weekend and extending through next week. The below-normal temperatures should blanket major heating markets in the Midwest and Northeast, as well as the Southeast, meteorologists with MDA EarthSat said Friday.
Natural gas prices have been bound in a narrow range since late October, rising when forecasts called for colder temperatures and a boost to gas-heating demand, but frequently unable to hold on to gains amid high inventories. Futures would likely have to break above $4.50/MMBtu to prove that a seasonal advance was on, said Jimmy Tintle, an analyst with Transworld Futures. Prices can rise sharply in anticipation of winter's heating demand.
The Energy Information Administration said Thursday that 23 billion cubic feet of gas was withdrawn from storage last week. The decline was smaller than the expected 26-bcf decline, but nevertheless represented the first substantial draw this season. With meteorologists in good agreement on an early-December cold snap, larger withdrawals are seen in the coming weeks.
The amount of gas in storage typically increases from April to November, before winter's home-heating needs begin to draw from the excess supply.
Natural gas inventories as of Nov. 26 stood at 3.814 trillion cubic feet, 10% above the five-year average, the EIA reported. Stockpiles earlier in the month climbed to a record high of 3.843 tcf.
Meanwhile, U.S. drilling activity has held steady despite low prices. The number of rigs drilling for natural gas increased by eight this week, to 961, according to oil-field services company Baker Hughes Inc. (BHI), a 28% increase from the same week last year. Some analysts have predicted this year that gas producers would cut back on drilling to limit supply growth and protect their profitability, but market-moving declines haven't materialized.
.-By Matt Day, Dow Jones Newswires; 212-416-4986;
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(END) Dow Jones Newswires
December 03, 2010 15:19 ET (20:19 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 03 19 PM EST 12-03-10

Wednesday, December 1, 2010

Defense Stocks Should Continue to Climb in 2011 ...

WASHINGTON (AFP)--Prime Minister Vladimir Putin said Wednesday that Russia wasn't moving tactical nuclear weapons near North Atlantic Treaty Organization allies, and pointed the finger back at the West for escalating tensions on the issue.

Asked in an interview on CNN's "Larry King Live" whether Moscow was moving the missiles, Putin said, "It's not us who are moving forward our missiles to your territory."

An earlier report cited U.S. officials, who described the movements, as saying Russia as recently as several months ago was moving tactical nuclear warheads to within miles of its borders with NATO countries.

Western powers, Putin said, are "planning to mount missiles at the vicinity of our borders, of our territory" in a bid to secure against the threat of Iran's alleged nuclear drive.

"Such a threat, as of now, does not exist," Putin said.

The potential for missiles being hosted near Russian borders "certainly...worries us. And we are obliged to take some actions in response" if that occurs, he said.

On Tuesday, Russian President Dmitry Medvedev warned that failure by Russia and the West to agree on a new missile shield for Europe could spark "a new round of the arms race" that would involve Moscow deploying new weapons systems.

Putin in the interviewed downplayed Medvedev's rhetoric, saying "no" to a question of another arms race, but adding in the event of additional threats to Russian security in the future, Moscow "will have to ensure her own security through different means...against the new threats created along our border."

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(END) Dow Jones Newswires

December 01, 2010 22:58 ET (03:58 GMT)- - 10 58 PM EST 12-01-10

Friday, November 5, 2010

Option Trade Alert for TSL Closed for Purchase, Thanks to ALL ..

Release Date: 11/30/2010
Before Market Open
Expected Release: 5:25 AM ET
Conference Call 8:00 AM ET

Trina Solar Ltd. (TSL)
Q3 Ending September 2010
Earnings Whisper: $0.89
Consensus Estimate: $0.87
Sales Estimate: $420M

Wednesday, November 3, 2010

El-Erian Worries that Without Structural Changes, QE2 and 'QE3' Could Hasten Brazil and China to Overheat and Promote FX Pressures on the Euro and Yen ..

The Federal Reserve Board's latest round of quantitative easing won't be completely sufficient to tackle the economic problems in the U.S. while exacerbating global currency tensions and eroding the U.S.' prime role in the world economy, according to Pimco Chief Executive Mohamed El-Erian.
The Fed said on Wednesday that it would buy long-term Treasury bonds, pumping an additional $600 billion into the U.S. economy, through June.
"Liquidity injections and financial engineering are insufficient to deal with the challenges that the U.S. faces," writes in an editorial on the Financial Times' website, citing the Fed's need for coordinated support from other federal agencies. "Without meaningful structural reforms, part of the Fed's liquidity injection will leak right out of the U.S. and result in yet another surge of capital flows to other countries."
These outflows to other nations will create problems for other economies and currencies, he writes.
"Several emerging economies, such as Brazil and China, are already close to overheating," El-Erian writes. "And the euro zone and Japan can ill afford another appreciation in their currencies."
The Pimco executive says the Fed's move helps undermine the U.S.' role as "the provider of both the world's reserve currency and its deepest and most predictable financial markets.
"No other country or multilateral institution can displace the U.S.," he writes, "but a combination of alternatives can serve to erode its influence over time."
El-Erian expects that the Fed will have to act again soon.
"With domestic outcomes again falling short of policy expectations, it is just a matter of time until the Fed will be expected to do even more," El-Erian writes. "And this means Wednesday's QE2 announcement is unlikely to be the end of unusual Fed policy activism."
Next time, he writes, additional Fed easing should accompany coordinated efforts with the U.S. government and international economies.
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November 03, 2010 17:12 ET (21:12 GMT)
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