U.S. Gets a Sane Speaker of the House; Obama is Clearly a One-Term Failure ..

WASHINGTON (Dow Jones)--Rep. John Boehner (R., Ohio), the presumptive speaker of the U.S. House of Representatives, said Republicans would focus on rigorous oversight of the financial regulation overhaul law, as opposed to seeking to repeal the measure.
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Boehner spoke at a press conference just hours after the Republicans swept back to control of the House, paving the way for the Ohio Republican to become speaker of the chamber in January.
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He was asked whether Republicans would attempt to overturn the wide- ranging financial regulatory law, known as the Dodd-Frank Act after the Democratic lawmakers who shepherded it through Congress this year.
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"When it comes to the financial services bill...it is going to require a significant amount of oversight so not only will the Congress understand but the American people understand just what this bill will do to our financial services industry," Boehner responded, leaving the strong impression that oversight, rather than repeal, would be the Republican strategy.
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This contrasts with Boehner's response moments earlier when he was asked about the health-care law, another Democratic legislative accomplishment that Republicans fiercely oppose.
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In reference to that law, he said it was a top priority of Republicans to seek to repeal the health-care law and replace it with "common sense reform."
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Earlier Wednesday, a top Republican on the House Financial Services Committee told the Wall Street Journal that while oversight of the Dodd-Frank law would be a top priority of the panel, he would seek to amend at least one part of it.
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Rep. Spencer Bachus (R., Ala.), the top Republican on the panel, said he would seek to replace the derivatives section of the act, calling it a "job-killer."
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Bachus is likely to become the financial services committee's chairman when the GOP takes control of the House in January.
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While his answer appears to at least partially contradict Boehner's comments, it is clear that coming just 14 hours after the election, Republicans are still trying to establish their legislative strategy.
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Boehner was also asked whether he would insist that all the Bush-era tax cuts be renewed, rather than just those for middle-class Americans.
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"We continue to believe that extending all the current tax rates for all Americans is the right policy for our country at this time," he said.
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Speaking at the press conference alongside Boehner, Senate Minority Leader Mitch McConnell (R., Ky.) said that if Democrats would come toward the Republicans, he believed that progress could be made on a number of policy fronts during the next two years.
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"If the president comes in our direction, we want to make progress over the next two years," McConnell said.
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He cited federal government spending and debt levels, trade agreements, nuclear energy production and advancements in clean coal technology as policy areas the two parties could potentially agree on.
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The Republican Senate leader said he believed there would be bipartisan agreement on how to address spending to start bringing down the debt.
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"I believe we'll have enough Democrats coming in our direction on the issue of spending and debt," he said.
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Republicans failed to take control of the Senate, but they did make significant gains, picking up at least six seats in the chamber.
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-By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=g7waOW3b7LFS2%2FQTZF%2FfMg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 03, 2010 13:12 ET (17:12 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 01 12 PM EDT 11-03-10
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POTC Urges Everyone to Please Get Out and VOTE ..

And if You Needed any Further Motivation, Here's an Image that Should Jar Emotions:

STRA Trade Alert Closed for Purchase, Thank You.

Trade Update Friday morning ...

China Managing Growth Brilliantly, Yet We Expect U.S. Stocks to React Negatively as China's GDP Shows a 9-Handle in Q3; Less Reason for Any Yuan Actions ..

BEIJING (Dow Jones)--The slowdown in China's gross domestic product growth in the third quarter was due to a higher comparison base in the year-earlier period, and macroeconomic controls put in place by the government, Sheng Laiyun, spokesman for the National Bureau of Statistics, said at a news briefing Thursday.
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The pace of China's economic slowdown has moderated, and the country's positive economic trend has been consolidated, he said.

China's GDP grew 9.6% from a year earlier in the third quarter, slowing from the 10.3% rise in the second quarter.

Sheng said the slowdown in industrial production growth was similarly due to a low comparison base, as well as controls put in place by Beijing on highly polluting and energy-intensive industries.

Stabilization has also been seen in China's investment, consumption, and foreign trade, Sheng said.

-Liu Li and Olivia Guo contributed to this article, Dow Jones Newswires; 8610-8400-7713; li.liu@dowjones.com
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=%2BfGUbsHVlZ8IMkgxAzkcwg%3D%3D. You can use this link on the day this article is published and the following day.
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(END) Dow Jones Newswires
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October 20, 2010 22:36 ET (02:36 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 10 36 PM EDT 10-20-10
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ISRG Trade Alert Closed for Purchase, Thank You.

           Our ISRG PFF ratio Trade Alert is no longer available for purchase. All subscribers, and those who purchased the alert today will receive a trade update before market open Wednesday morning. We thank all of you for your business and for placing your faith in our work.

Intuitive Surgical (ISRG) Trade Alert Coming Tuesday at 11 ET ...

All Quarterly and Yearly subscribers will receive this Psychological Financial Fusion (PFF ratio) option Trade Alert on schedule.

If you're not a subscriber, use the Paypal link in the right margin and begin an educational journey you will cherish for the rest of your life.

You may choose to buy individual Trade Alerts for $100 or sign-up for a rolling Quarter (5 Trade Alerts) for $400, or a rolling Year (20 Trade Alerts) for $1,200.

You will enjoy personalized e-mail services where you may ask anything related to your current portfolio. We're excited to offer every subscriber discreet advice and assistance via e-mail with fresh and often bold/aggressive perspectives.

We've developed 11 Commandments of Trading that we urge every trader to follow.

If you're a subscriber, Congratulations! You've witnessed our ability to call direction a lot more right than wrong. Last Trade Alert could have netted you in excess of 1,000% overnight.

Last Q we called the direction of all 5 Trade Alerts correctly. We are convinced that our extremely long and smart hours of research, along with decades of trading experience is reason for our success. Rarely does our team get dupped by the prevailing 'wizdoms' of herd psychology. 

~Welcome, and Let's Roll the Donkeys November 2nd~

An overnight return of 1,000%-plus? Is that possible?

The answer is an emphatic "YES", ALL gloating aside. Yet POTC strictly counts on referrals, no advertising and spam emails like Jim Cramer's Street.com or Motley Fools.

Our PFF ratio option Trade Alert on Google (GOOG) sent to all subscribers on Thursday morning recommended the purchase of OCT $570 CALLs. GOOG released a tremendous earnings report -as we suggested - and the stock price climbed $60 Friday. (Click the image to increase the size)

Subscribers booked profits of at least 1,000%, some made 1,450%, all depending on when they bought and sold. (Click the image to below increase the size)

Our next PFF ratio Trade Alert will be released next week.

Please use the PayPal button to the right and sign up for the next Year for $1,200 or the next 5 Trade Alerts for $400.

If you have any questions regarding our methods or subscriptions, please send an email to psychologyofthecall@gmail.com

GOOG Stock Option Trade Alert Closed for Individual Purchase ..

BIG Cheers and Congratulations to the Brave Chilean Miners and Everyone Involved with their Safe Return from 1/2 Mile Underground for 69 Days, ongoing ...

WASHINGTON (AFP)--The U.S. late Tuesday hailed the rescue effort underway in Chile, as the first of 33 miners who have been trapped underground for nearly 10 weeks emerged safely at the surface.

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"Congratulations to Chile for the successful rescue of the first miner. What a remarkable display of hope and skill," said U.S. State Department spokesman P.J. Crowley in a post to the micro-blogging site Twitter.
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=5gCl83ptGCvnYQoOKBh4uw%3D%3D. You can use this link on the day this article is published and the following day.
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(END) Dow Jones Newswires
October 12, 2010 23:55 ET (03:55 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 11 55 PM EDT 10-12-10
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Is the November Midterm Stretch Stimulus Job HOAX Upon 'US' ...

Is it possible the last $200M in stimulus money was used to create a larger than expected number of private sector jobs in crony states like IL, CA, NV, and NY with just 26 days ahead of the critical November 2 midterms ...

Is it also possible Obama's most 'conservative' economic player,  Lawrence Summers, knew about this midterm-stretch-stimulus-job-ruse and it provided the catalyst for him to reapply to Harvard ... 

The September employment hammer will drop on the market  tomorrow, OCT 8, before market open at 8:30 AM ET.

If you feel this political trade psychology makes sense, then we suggest trading this stock option ...

To receive this Trade Alert, please sign-up with Paypal in the right margin.

FOMC Voting Member Sandra Pianalto Offers a Positive Spin on Economy, then Mentions the 'Unchartered Waters Cliche' and Admits Unconventional Tools Have Unknown Costs ...

NEW YORK (Dow Jones)--While there are signs the U.S. is starting to recover from the deepest downturn since the Great Depression, the Federal Reserve has options if the economy ends up needing more help to heal, Cleveland Federal Reserve President Sandra Pianalto said Thursday.
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Pianalto pointed to hopeful signs for consumers and businesses. Consumers are saving more, helping to improve their financial situations, and businesses' aggregate profits have returned to levels that are more in line with what is typically seen following recessions, she said. The private sector is also adding jobs and the U.S. has positive GDP growth. The economy is growing and she expects it will continue to do so in 2011.
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"There are some signs that the economy is beginning to mend," she said.
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However, the current pace of growth is not fast enough to make much progress in lowering the stubbornly high unemployment rate, Pianalto said. Inflation is also too low, Pianalto said, and she expects it to remain near its current low level through next year, lower than the roughly 2% rate that she sees as consistent over the long run with the Fed's objectives.
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Pianalto was delivering prepared remarks as part of a discussion hosted by the Women's Economic Roundtable in New York. She is a voting member of the interest rate setting Federal Open Market Committee this year.
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Her comments come amid continued talk in financial markets about if and when the Fed could kick off another so-called quantitative easing program to help the economy by buying Treasury securities. The Fed began buying Treasurys again last month on a small scale, using proceeds from its maturing mortgage bonds. Given recent soft data though, most market participants are convinced the Fed will have to relaunch a formal, larger-scale bond buying effort before the end of the year.
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In her prepared remarks, the central banker said that monetary policy is highly accommodative and that if further accommodation is needed, the Fed has options available to it, but policymakers must tread carefully.
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"We are in unchartered waters," Pianalto said. "History does not provide a complete guide for the unconventional policy tools we are using, which is why it is important that we continue to examine the costs and benefits of these tools."
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If additional accommodation is needed, Pianalto said, she wants to ensure that the framework the Fed employs is an effective one.
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-By Deborah Lynn Blumberg, Dow Jones Newswires; 212-416-2206; deborah.blumberg@dowjones.com
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=6h6YGNP9c8FNJ81xE5GZNw%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
September 30, 2010 18:16 ET (22:16 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 06 16 PM EDT 09-30-10
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The House Vote Every Trader Must Know About; Potentially Negative Implications for Stocks & Bonds are Ahead, Caution ..

WASHINGTON (Dow Jones)--U.S. House lawmakers from both parties are expected on Wednesday to support legislation targeting China's currency policy, a move that could influence the tenor of sensitive discussions between Beijing and Washington.

The House of Representatives is scheduled to vote on a measure that targets imports from China and other countries with currencies that are perceived to be undervalued. Both Democrats and Republicans are likely to endorse the measure, producing a Washington rarity: a bipartisan vote on a substantive policy issue just weeks before key midterm elections.

The anticipated support for the legislation is the manifestation of years of frustration on Capitol Hill over Beijing's currency policy, which has been estimated by economists to keep the yuan between 20% and 40% undervalued. Mixed with the slow U.S. economic recovery, nearly 10% unemployment and the November elections, currency has become a popular target for lawmakers.

"By deliberately keeping the value of its currency low, China is able to sell its goods in the United States at an artificially low price, which helps put American manufacturers out of business," House Majority Leader Steny Hoyer (D., Md.) said in a statement Tuesday.

The Obama administration has declined to comment on specific legislative proposals, including the measure the House will vote on, and administration officials said it was unclear if they would weigh in ahead of Wednesday's vote.

House passage of legislation targeting China's currency policy could influence ongoing negotiations between Beijing and Washington on a range of economic and trade matters. Treasury Secretary Timothy Geithner, appearing on Capitol Hill earlier this month, said it is "very important" for China to hear from lawmakers on the yuan and other issues.

"It's important for them to understand that this is a serious issue for the American people, and we're serious about it," Geithner said before the House Ways and Means Committee.

Still, administration officials are wary of lawmakers being too aggressive with any legislative action and disrupting the delicate negotiations between the two economic powers.

Whether the House proposal will receive a vote in the Senate is also an open question. Sen. Charles Schumer (D., N.Y.), a frequent critic of China's currency policy, said in a statement Tuesday that he would push legislation dealing with undervalued currencies after the November elections.

"China is merely pretending to take significant steps on its currency. This suckers' game is never going to stop unless we call their bluff," Schumer said.

-By Michael R. Crittenden, Dow Jones Newswires; 202-862-9273; michael.crittenden@dowjones.com
(MORE TO FOLLOW) Dow Jones Newswires
September 28, 2010 17:26 ET (21:26 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 05 26 PM EDT 09-28-10
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Deutsche Bank (DB) Prints 52-Week Low; Caution to ALL Jim Cramer Bulls ...

POTC views the fact Germany's DB collapsed to 52-week low today and major U.S. banks like GS, JPM, and BAC have not participated in this S&P rally from 1,040 - 1,150 as a short-term negative; in the least.

The fact financials have not participated is something to take note of, hence we mentioned Jim Cramer, who continues to think Barack Obama and Bernanke are market friendly?

We vehemently disagree the latest policies are anything but long-term market friendly, as there will be a huge amount of political debris to tackle ahead; regardless of who wins the November mids.

Our team understands the latest rally has been driven by an "in the clouds" type of tech-phoria.

Do we buy it here, no way. Do we think cloud computing will be a profitrable long-term trend? Only with the right stocks ....

Pictured to the right are Deutsche Bank's Twin Towers in Frankfurt Germany. A sad day for all DB employees as shares slide to new 52-week lows.

Wonder whether Jim Cramer will mention this huge development? After all, DB has been a stock he has been recommending.

Secret Billionaire Meeting; Notes Revealed ...

For 25 years, legendary Wall Street strategist Byron Wien, now with The Blackstone Group, has held summer meetings with high net worth individuals to get their outlook on the global economy and investing. This year’s group, totaling fifty individuals and including more than 10 billionaires, was decidedly pessimistic on the U.S. economy, investment opportunities and the Obama administration. Click for entire story.

Calling Out Rick Santelli and Larry Kudlow; Capitalistic Paradox and Ruse is Upon 'US' ..

It is blatantly obvious the Obama Administration's plan is to destroy free-market capitalism by using the phony stock market move to solidify midterm democratic control.

We argue Obama needs one-term to wreck the private sector economy from perhaps no return, as two more socialist agenda lie in the wings. We sure hope we're not the only ones catching the the whiff of this plastic midterm election S&P pump higher. Please read on ...

POTC is 90% convinced the last several equity -out of nowhere/pivot type moves- S&P 1,040 level - 1,105, and today's S&P 1,124 - 1,149 have been orchestrated by the FOMC or Treasury buying S&P futures contracts with either stimulus money or paradoxically with billions in TARP payback funds from the big "bad" banks of GS, JPM, BAC, etc etc ..

Treasonous activity if it helps even 1 democrat win in the November midterms, Capitalist Pig Bob says Yes. And if it aids the democrats to retain control of both houses, will you just stand by?

A U.S. veteran and POTC subscriber suggested pitchforks and a revolution could ignite if news breaks about the FOMC propping up the S&P ahead of the pivotal midterm elections, you?

Since the Obama Administration is facing 10% unemployment and a stagnant housing market going into the November midterms, the only possibility they have literally lies in "It's the stock market, Stupid".  After all, we know nearly 70% of Americans' wealth is tied to the S&P/equity market.

Synthetically propping up stock prices by using S&P futures could make the American masses happy and cause them to cast their votes for another fiscal liberal instead of a fiscal conservative.

Do you not see why we believe these are treasonous policies by the FOMC and under the watchful eye of the Obama Administration to maintain control/power?

Cap & Trade and Employee Free Choice Act (EFCA) could be months away as the S&P fools most who are unsophisticated in realizing the government is manipulating S&P futures to their political advantage. This is definitely not "for the people or by the people".

It's likely Obama and his players use this plastic stock market move, from U.S. tax payer money nonetheless, to stump for votes in the days and weeks ahead, caution.

POTC is saddened that neither Rick Santelli and or Larry Kudlow have not exposed this dangerous paradigm for the future of "free-market capitalism" as we knew it.

Thank You, we ask you to pass this piece on to as many news agencies, friends and family as possible.

The Psychology of the Call team with special thanks to Steve B.

Obama's Plan to Level Wall Street is Crystal Clear Through Watchdog Warren's Guise ..

Here's a copy and paste job from wiki from our political correspondent Capitalist Pig Bob. POTC has verified most of these facts to be true:
"Communist" Michael Moore interviews Elizabeth Warren, the head of the US Congressional Oversight Committee, the government agency serving as a watchdog for Congress' wrong-doing and investigating Congressional "oversights" (mistakes). He asks her, "Where's our money?", referring to the $700 billion bailout money which Congress gave to the big banks and Wall Street investment companies. There is a dramatic pause and Warren replies, "I don't know." Advised by Warren to contact Paulson's office for answer, Moore's call is promptly disconnected upon recognition of his identity. He then goes to Wall Street demanding to "get the money back for the American people", but is denied entry into every office building of the major banks.

I/Capitalist Pig Bob do not believe in a bailout nation, ever. Much prefer to see Darwinian free-market forces at work regardless of the short and medium-term pain. Equilibrium is better found through winners and losers, troughs and peaks, bubbles and busts, 'butt' not through bailout. The irony now is the donkeys under Obama have a strong fundamental argument to over-regulate lower Manhattan's Wall Street. A conundrum to the nth degree is upon us with Watchdog Warren. And I must admit she is a helluva public speaker and dangerously eloquent woman. Must I tell you again Wall Street is in a lose-lose situation? Visit me on Facebook, we'll take this discussion to a higher level.

Wall Street Journal explanation of why a life-long public sector Harvard law professor, whose specilaties are contract law, bankruptcy, and commercial law, will be bad for Wall Street.

WASHINGTON (Dow Jones)--President Barack Obama on Friday tapped Harvard law professor and consumer advocate Elizabeth Warren as a special adviser to help create a framework for a new government watchdog with wide powers over the financial industry.
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Obama, speaking in the White House Rose Garden, said Warren will oversee all aspects of the agency, from hiring to enforcement, and will have direct access to the president and Treasury Secretary Timothy Geithner. Obama said she would also assist him in finding a director for the bureau.
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Obama said a recent report from the Census Bureau shows how important it is to protect the middle class. The report shows that from 2001 to 2009, median income dropped almost 5%.
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He said banks, credit-card companies and mortgage lenders took advantage of the middle class by deceiving them into buying assets they couldn't afford. He also called on Congress to pass legislation that would extend tax cuts for the middle class.
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It's unclear why Warren wasn't nominated to be the agency's director, though it may be because some lawmakers expressed doubt about whether she would pass the confirmation process. Obama didn't answer that question during his brief remarks.
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Warren is credited with helping to come up with the idea of the bureau to ensure consumers get clear, accurate information from mortgage lenders, banks and other financial institutions.
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Obama said the bureau "will be a watchdog for the American consumer, charged with enforcing the toughest financial protections in history."
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He said, "Now getting this agency off the ground will be an enormously important task. A task that can't wait." Obama said a staff of people at the Treasury Department has already begun work on getting the agency started.
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In a post on the official White House blog, Warren said Friday morning that she and Obama understand the "importance of leveling the playing field again for families and creating protections that work not just for the wealthy or connected, but for every American."
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She added, "The new consumer bureau is based on a pretty simple idea: people ought to be able to read their credit card and mortgage contracts and know the deal."
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Her appointment has brought praise from several lawmakers. House Financial Services Committee Chairman Barney Frank (D., Mass.) said in a statement: "I offer my congratulations to Elizabeth Warren, both for the work that she did to create the agency and for the fact that she will now have the opportunity to make it function as it was intended."
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Warren's formal position will be assistant to the president and special adviser to the secretary of the Treasury on the Consumer Financial Protection Bureau.
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-By Jared A. Favole, Dow Jones Newswires; 202.862.9256; jared.favole@dowjones.com
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=sr0MJPxC06UAEjBXFmNPcw%3D%3D. You can use this link on the day this article is published and the following day.
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(END) Dow Jones Newswires
September 17, 2010 14:16 ET (18:16 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 02 16 PM EDT 09-17-10
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RIMM Trade Alert No Longer Available ...

If interested in receiving our next Psychological Financial Fusion (PFF ratio) option Trade Alert, you may purchase it via Paypal in the right margin.

Please scroll down to our Focus List for Q3, there will be four more opportunities.

Regards from the Psychology of the Call team.

Obesity Drugs Thinning as ARNA Collapses ...

All subscribers received an option trade strategy on these obesity drug stocks: Arena Pharmaceuticals (ARNA), Vivus Inc. (VVUS), and Orexigen Therapeutics (OREX).

VVUS has a date with the FDA on September 28th and OREX December 7th.  

Q3 PFF ratio Option Trade Alerts Kicking Off Sept. 16th at 11 ET with Research in Motion ..

Q3's earnings reports for fiscal '10 are upon us. Here's POTC's FOCUS LIST: AAPL, AMZN, BIDU, CME, FSLR, GOOG, GS, NFLX, and RIMM.

Though Q2's 5 for 5 record cannot be bested, we remain extremely dedicated after your e-mails of praise and referrals to friends. We are grateful. 

RIMM will be the first Q3 Trade Alert on Thursday, September 16th at 11ET. You should  prepare to read through the report and act by market close. You'll have 5 hours until earnings release to take action.   

Not yet a subscriber, please sign-up through Paypal in the right margin.

PFF ratio Trade Alerts require seceral 12+ hour days of studying financial statements, rewinding conference calls over and over while taking physical notes, interpretting key news developments, technicals, politics, and underlying psychology of share price with a forward-looking and oft contrarian perspective. Our goal is to send non-biased, intensely-researched, educational, and most importantly, profitable trade suggestions.

POTC remains rooted in the principles of Darwinian free-market principles: NO bailouts and NO stimuli.

We are excited by the November 2nd mid-term elections. Our team believes a combination of smaller government (less spending) and lower taxes for ALL is the smartest solution to a brighter socioeconomic future.

The U.S. will toil in mediocrity if the only push is Anti-Wall Street and pull for more Unionization.

Beware of the Employee Free Choice Act (EFCA) and a bloated Department of Energy with Cap and Trade Act if the democrats retain majority. And in our opinion, there is a 60% that will happen unfortunately.

If you subscribe to a quarterly or yearly membership by September 16th, you'll receive the 11 Commandments of aggressive trading and our outlook on the S&P through the November midterm elections.

We envisage shrewd political planning and forces influencing stock prices in the weeks ahead. In our professional blogging opinion (ipbo), these forces will be evident to all on Friday, October 8th.

The bloated government Obama has installed ensures longer-term suffering for the private sector. Our Capitalist Pig Bob whole heartedly despises this Administration's economic team as well as the FOMC's insistence on a zero interest rate policy. Pig Bob doesn't believe enough attention has been paid to Obama's ex-economic advisor's insistence, in a New York Times piece, that ALL Bush tax cuts should be extended.

POTC has consistently blogged that it's not the price of money (interest rates) that are extending the recessions in housing and employment, but the frightened consumer followingthe unprecedented stock market and real estate bubbles of 2000.

The creation of an uneven global playing field in terms of manufacturing costs and the pegging of the Chinese Yuan to the U$D is another huge and ongoing problem. How China unwinds this peg and avoids inflation will be a case study for investment finance professors for decades.

Other factors like the fall of communism and imported Eastern European hunger for wealth in the 1980s - 2000 caused further economic dislocations, but especially in mortgage/credit. An extremely cheap Eastern European work force associated with the US residential real estate caused this foundational asset class to crack under these combination of stresses and pressures.

The Eastern European -post communism- hunger for wealth caused many functioning 1,800 - 3,000 sq ft houses to be bull dozed, and 5,000+ sq ft dinosaurs were erected. A conundrum that continues to plague most of the largest state suburbs of New York, New Jersey, Illinois, Georgia, California, Nevada, Florida, and Arizona.

The U.S. is facing a combination of extremely complicated socioeconomic issues in the months and years ahead. Residential real estate is just one internal micro facet, yet the manufacturing labor cost disparity with China is a full-blown macro crisis.

The average Chinese manufacturing wage is somewhere around $2.00/hour compared to the US's $16.00/hour. Hence the 800% difference with the Yuan/U$D pegged currencies is reason for tremendous geopolitical and socioeconomic concern. Something has to give, and the real estate and credit recessionary months ahead will be more difficult, in our opinion, than the previous couple years.

Subscribers to this blog have the choice of enjoying one-on-one trading advice and assistance via e-mail. Our team psychology is geared towards very aggressive trading, yet every subscriber receives our 11 Commandments that cover key investment wisdoms in traditional as well as individual retirement accounts (IRAs). The Commandments are not monolithic, as Jim Cramer's, and are updated at least once a quarter with "lessons learned".
 
Subscribers hail from:

United States, India, China, United Kingdom, Australia, New Zealand, Hong Kong, Pakistan, South Korea, Russia, Poland, Italy, Germany, France, Spain, Brazil, Philippines, Canada, Japan, Chile, Argentina, and Mexico.

POTC is humbled by your trust. Our team is different than the talking herds on CNBC and Bloomberg, yet often times more effective in pinning individual stock option as well as market direction right.

U.S. Econonic Calendar, Estimates, and Results ...

Tuesday, August 31 at 9:00 ET S&P/Case-Shiller 20-city Home Price Index for June, estimates are for 3.0% - 3.1% - Previous /July of 2009 was 4.61% 
Actual: *DJ S&P Case-Shiller 2Q US Natl Home Price Index +4.4% QQ
Actual: *DJ S&P Case-Shiller 2Q US Natl Home Price Index +3.6% YY
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Tuesday, August 31 at 9:45 ET Chicago PMI for August, estimate are for 57.0 - 58.0 - Previous/July was 62.3
Actual: *DJ The Institute for Supply Management-Chicago said its business barometer fell to 56.7 in August, from 62.3 in July.
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Tuesday, August 31 at 10:00 ET Consumer Confidence for August, estimates are for 49.5 - 50.0 - Previous/July was 50.40
Actual: *DJ US Conference Bd Aug Consumer Confidence 53.5 Vs Jul 51.0

Tuesday, August 31 at 2:00 ET: Minutes of FOMC Meeting from 8/10 will be released.
More of the same; confusion and uncertainty about the future weighs. Monetary policy has been exhausted in POTC's opinion. Quantitative easing without fiscal relief makes little sense to us. We believe Bernanke and his FOMC team must be more vocal and openly judge Obama's economic team as out of touch with reality. POTC believes the psychology of the consumer and businessman is unstable due to  current anti free-market policies.

Wednesday, September 1 at 8:15 ET: ADP Employment Change for August, estimates are for 0K - 13K private sector jobs created, Previous/July was 42K on a seasonally adjusted basis.
Actual: NEW YORK (Dow Jones)--Private businesses laid off workers in August as only large companies hired last month, according to data released Wednesday.
Private-sector jobs in the U.S. fell by 10,000 last month, according to a national employment report published by payroll giant Automatic Data Processing Inc. (ADP) and consultancy Macroeconomic Advisers.
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Wednesday, September 1 at 10:00 ET: Construction Spending for July, estimates are for (-0.5% -0.7%) - Previous/June was +0.1%
Actual: *DJ US Construction Spending -1.0% In Jul; Consensus -0.5% - Worse, yet expected.

Wednesday, September 1 at 10:00 ET: ISM Index for August,  estimates are for 52.9 - 53.0 - Previous/July was 55.5
Actual: *DJ US ISM Aug Manufacturing PMI 56.3 Vs Jul 55.5 - VERY IMPRESSIVE for consumer psychology in our opinion.
Caveat: ISM is a highly overrated index. It is only a survey of purchasing managers. It is a diffusion index, it reflects the number of people saying conditions are better compared to the number saying conditions are worse. It does not weight for size of the firm, or for the degree of better/worse. It can therefore underestimate conditions if there is a great deal of strength in a few firms. The data have thus not been either a good forecasting tool or a good read on current conditions during this business cycle. It must be recognized that the index is not hard data of any kind, but simply a survey that provides broad indications of trends.

Wednesday, September 1 at 10:30 ET Crude Inventories for 8/28,  no estimates available - Previous for week ending 8/21 was a build of 4.11M barrels.
Actual: *DJ DOE: US Crude Oil Stocks 3.4M Bbl build At 361.707M Bbl

Thursday, September 2 at 8:30 ET: Initial Claims for 8/28, estimates are for 475K - Previous week ending claims were 473K.
Actual: *DJ US Jobless Claims -6K To 472K In Aug 28 Wk; Survey -3K - Slight improvement, we're not impressed.

Thursday, September 2 at 8:30 ET: Productivity-Revision for Q2, estimates are for (-1.4% -1.7%) - Previous was (-0.9%).
Actual: *DJ US 2Q Non-Farm Productivity Revised -1.8%, Prelim -0.9%

Thursday, September 2 1at 10:00 ET: Factory Orders for July, estimates are for 0.1% - 0.3% - Previous/June was 1.2%
Actual: *DJ US Factory Orders +0.1% In Jul; Consensus +0.2%

Thursday, September 2 at 10:00 ET: Pending Home Sales for July, estimates are for (-0.0% -1.0%) - Previous/June was (-2.6%).
Actual: *DJ US Pending Home Sales Index +5.2% To 79.4 In Jul - NAR - First rise in 3 months.

Friday, September 3 at 8:30 ET: Nonfarm Payrolls for August, estimates are for (-106K -120K) - Previous/July was (-131K).
Actual: =DJ DATA SNAP: US Aug Nonfarm Payrolls -54K; Jobless Rate 9.6%

Friday, September 3 at 8:30 ET: National U.S. Unemployment Rate for August, estimates are for 9.6% - Previous/July was 9.5%
Actual: 9.6%
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Friday, September 3 at 10:00 ET: ISM Services for August, estimates are for 51.0 - 53.0 - Previous/July was 54.3
Actual: *DJ US ISM Aug Non-Mfg Employment Index 48.2 Vs Jul 50.9 - Very Negative.
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Mumbai's Dalal Street Looks to Tuesday's GDP Data; Sensex's Influence on S&P Eyed ...

"The expansion in the Indian economy is estimated to match up the growth of 8.6% seen in the last quarter of the fiscal 2009-2010," according to domestic brokerage house SMC.

Actual GDP for India: Growth in the manufacturing and services sector helped India's economy to grow by its fastest pace in more than two years at 8.8% in the first quarter of the current fiscal year.

Here's the equivalent to the U.S. Wall Street journal in India: Dalal Street Investment Journal.

Monitoring economic statistics from overseas is important, especially China, India, and Japan.

Asian economic data is having more and more  influence on U.S. S&P futures.

Indian GDP is scheduled to post Monday night (U.S.), so expect S&P futures to react either up or down ahead of Wall Street's Tuesday open.

Eurozone GDP is important, but the most exciting growth is coming from Asia.

Here's a chart of the Indian Sensex Index:

Red Blooded Americans Rally Against the $1 Trillion Stimulus and 10% Unemployment; Glenn Beck and Sarah Palin Understand that Government Spending has Backfired and Poses Threats to Individual Freedoms and National Security ...

Capitalist Pig Bob, POTC's lead political correspondent insisted we give credit to Glenn Beck and Sarah Palin for their weekend rally in D.C. against big government spending, higher taxes, more restrictions and regulations in our daily lives. We gladly honored his request. Here's a story that was copied and pasted from myway: Though POTC is not endorsing any specific candidates, but we are rooting for all candidates that believe Obama's tax and spend policies are detrimental to psychology, restraining the organic and evolutionary watering can of free-market growth: Supply-Side-Economics.

Beck rally signals election trouble for Dems
By PHILIP ELLIOTT
WASHINGTON (AP) - If Democrats had doubts about the voter unrest that threatens to rob them of their majority in Congress, they needed only look from the Capitol this weekend to the opposite end of the National Mall.

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It's where Ken Ratliff joined tens of thousands of other anti-government activists at the foot of the Lincoln Memorial for conservative commentator Glenn Beck's "Restoring Honor" rally.
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"There's gotta' be a change, man," said Ratliff, a 55-year-old Marine veteran from Rochester, N.Y.
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Neither Democrats nor Republicans can afford to ignore the antiestablishment fervor displayed Saturday during Beck's rally that took on the tone of an evangelical revival.
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Billed as a nonpolitical event, it nevertheless was a clarifying moment for those curious as to what clout an anti-Washington sentiment could have on midterm congressional elections in November. The gathering was advertised as an opportunity to honor American troops. But it also illustrated voters' exasperation - and provided additional evidence that Democrats in power - as well as some incumbent Republicans - may pay the price when voters go to the polls.
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The tea party is essentially a loosely organized band of anti-tax, libertarian-leaning political newcomers who are fed up with Washington and take some of their cues from Beck. While the movement drew early skepticism from establishment Republicans, these same GOP powerbrokers now watch it with a wary eye as activists have mounted successful primary campaigns against incumbents.
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The Beck rally further demonstrated the tea party activists' growing political clout.
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If the GOP is able to contain and cooperate with the tea party, and recharge its evangelical wing with Beck-style talk of faith, it spells the kind of change Ratliff and others like him are searching for.
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The promise of change helped President Barack Obama win the White House in 2008, but could turn against his fellow Democrats this year. Americans' dim view of the economy has grown even more pessimistic this summer as the nation's unemployment rate stubbornly hovered near 10 percent and other troubling economic statistics have emerged on everything from housing to the economy's growth.
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That's been a drag on both congressional Democrats and the president. While Obama has shelved his soaring campaign rhetoric on change, Beck has adopted it.
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At Saturday's rally, the Fox News Channel personality borrowed Obama's rhetoric of individual empowerment from one of the then-candidate's favorite themes on the 2008 campaign trail.
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"One man can change the world," Beck told the crowd. "That man or woman is you. You make the difference."
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Or change Washington. And while Beck didn't say so, that means change the party in power.
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His followers got the message.
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"A lot of people want our country back," said Janice Cantor. She was raised a Massachusetts Democrat and is now a North Carolina tea party activist.
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Beck's religion-laden message was a departure from most tea party events, which tend to focus on economic issues.
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Beck, who speaks openly about his Christian faith on his radio and cable news shows, relied heavily on religion during his speech, perhaps offering up a playbook for tea party activists and Republicans this November.
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Earlier, former Alaska Gov. Sarah Palin urged the gathering to change the course of the nation, although she said "sometimes our challenges seem insurmountable."
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"Look around you," she told the crowd. "You're not alone."
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Is Paul Volcker the "Giant Great Hope" that Will Fight for Accommodative Tax Policies During this Psychological Crisis of Confidence Caused By Inept Obama Economic Eggheads?

WASHINGTON (Dow Jones)--An advisory panel led by former Federal Reserve Chairman Paul Volcker on Friday issued a laundry list of ideas to reduce the headaches brought on by tax filing.
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Options included in the report include a pre-filled tax form that the IRS mails out, which would only require a signature for some taxpayers with uncomplicated returns. The report includes a host of proposals to streamline the tax code, like combining the child tax credit and dependent exemptions into a single "family credit."
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The long-awaited report provides "helpful advice" to the Obama administration and Congress, according to its preface, but does not endorse specific proposals. However, the options included in it are likely to inform policy-makers' discussions in the coming years on how to simplify and overhaul the U.S. tax system.
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The members of the panel also put a cut in the corporate tax rate on the table. They detailed several options that could raise revenue to finance such a cut, including limiting businesses' ability to deduct interest expense.
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The members of the Volcker panel are slated to discuss the 126-page report during a public meeting scheduled for 2 p.m. EDT Friday.
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-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=iDyr%2Fbx1d189lCzee3Vb2A%3D%3D. You can use this link on the day this article is published and the following day.
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(END) Dow Jones Newswires
August 27, 2010 12:12 ET (16:12 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 12 12 PM EDT 08-27-10
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Grand Tetons Minus Min; Looks To Be An Interesting Get-Together this Friday and Saturday ...

Jan 2010 Davos, Switzerland recap:

Chinese central banker Zhu Min warned that tighter US monetary policy could spark a sudden outflow of capital from emerging markets, evoking the 1990s Asian financial crisis. 

Though the U.S. FOMC has not initiated tighter monetary policy since Davos, POTC believes traders must monitor for signals to the affirmative. We have an equity situation that could  return 20%+ (within 3 months) when a more hawkish interest rate tone prevails.

If you are not yet a subscriber to this blog but would like to receive our trade suggestions and analysis,  please use the Paypal link in the right margin to begin an educational experience. 

August 25, 2010 breaking:
WASHINGTON (Dow Jones)--At their annual meeting in the Grand Tetons, the world's top central bankers may provide clues on what, if anything, can be done to help a global economic recovery that's quickly losing steam.
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Some of the world's biggest economies -- notably the U.S. -- are slowing sharply and central banks are looking at what options they have left to bolster growth. That is in stark contrast to June, when finance officials from the main economies met in South Korea as the global recovery was moving faster than expected and central banks were focusing on how to unwind the huge stimulus used in 2008 and 2009 to fight a severe recession.
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The highlight of the Aug. 27-28 meeting of central bankers and academic experts in Jackson Hole, Wyo., is likely to be Federal Reserve Chairman Ben Bernanke's speech, which kicks off the meetings Friday morning. The Fed chief could provide hints on what the U.S. central bank's next move might be. In turn, this could influence monetary policy decisions at central banks from the other big economies.
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With short-term interest rates already at record lows in the U.S., Europe and Japan, the central banks' traditional tool to jump-start the economy is no longer a viable option. But central bankers still have the power to purchase government bonds and other securities, something the U.S. Federal Reserve and the Bank of England did successfully while fighting the financial crisis, by helping to push long-term interest rates down.
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The effectiveness of buying assets in further stimulating the economy is, however, questionable since long-term rates are already at very low levels. Still, it may be the best option left. Governments around the world seem reluctant spend more or cut taxes further. As a result of combating the crisis and the ensuing recession over the past few years, governments now have huge budget gaps, a situation which contributed to a sovereign debt crisis in Europe in May.
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"With most governments on course to withdraw fiscal stimulus, the onus is mostly on central bankers to keep the expansion going," said David Hensley, economist at J.P. Morgan Chase in New York.
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After more than year since output started to grow again in the U.S., the unemployment rate remains at a high 9.5% and the recent increase in jobless claims indicates it could rise further. Home sales plunged in July and durable goods orders rose less than expected, spurring fears of renewed weakening in the broader economy.
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In a move that surprised several Fed watchers, the U.S. central bank decided at its last meeting Aug. 10 to reinvest some $350 billion in proceeds of expiring mortgage-backed securities into U.S. Treasurys to counter a weaker than expected recovery. Only a week before, Bernanke had given no hint of such a move in his speech in Charleston, sticking to the line that the U.S. economy would continue to recover at a moderate pace. The move effectively shifted the Fed's stance back to neutral after officials spent most of the first half of the year focused on "exit strategies."
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Some officials opposed the move, fearing it could send the message that the Fed was too worried about the economy. The other big problem is that buying more assets may not be as effective as in the past. Bernanke's speech in Jackson Hole will be closely eyed to gauge at what point the Fed could step in again to bolster a sluggish economy - and how much fire-power it's ready to use.
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"The threshold (for more Fed action) is going to turn out to be much lower than most (Fed officials) think," said Laurence Meyer, a former Fed board governor now with consulting firm Macroeconomic Advisers LLC. If the Fed does move, Meyer believes it needs to buy $2.0 trillion assets to really have an impact. The Fed bought $1.7 trillion to fight the financial crisis in a program which ended in March and is credited with lowering long-term rates by around half of a percentage point.
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Whether the Fed decides to ease policy could have huge implications for other major economies also preoccupied with slowing growth rates, especially if it leads to a weaker U.S. dollar. If the Fed decides to purchase more assets, it could prompt Japan to also ease policy to prevent the yen from rising further against the dollar.
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Japan's growth slowed sharply in the second quarter as stagnant consumption and flagging exports weighed on an economy already hobbled by a long period of deflation. A further rise in the yen could deal another blow to Japan's export-driven economy.
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Japanese Prime Minister Naoto Kan recently said he would cooperate closely with the Bank of Japan to deal with the impact of a strong yen. The remark suggests the central bank may come under pressure to ease policy. Bank of Japan Governor Masaaki Shirakawa will attend the Jackson Hole event and may discuss the country's easing options with other central bankers. The easiest choice could be for the Bank of Japan to expand a three-month emergency loan facility that was introduced in December.
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A weaker U.S. dollar could also hurt China and Europe. The economy of the 16 countries that share the euro grew at a healthy pace in the second quarter. Germany's best performance since reunification more than offset slow growth in Greece, Spain and Italy -- largely thanks to an export boom that was helped by a weaker euro.
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China, which has benefited from exports thanks to an undervalued currency, has also seen an economic slowdown. A string of reports have largely pointed to a cooling in the pace of growth in what had been a main driver of the global economy's rapid expansion.
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European Central Bank President Jean-Claude Trichet is due to speak at the Jackson Hole lunch Friday, while no official from China's central bank is scheduled to attend.
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(Luca Di Leo, a special writer with Dow Jones Newswires, has been reporting on the global economy since 2000, first from Europe and more recently from the US. He can be reached at 202-862-6682 or via email at luca.dileo@dowjones.com)
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(TALK BACK: We invite readers to send us comments on this or other financial news topics. Please email us at TalkbackAmericas@dowjones.com. 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.)
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Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=PL8KSeuz4HY0IaGSxX%2F4DA%3D%3D. You can use this link on the day this article is published and the following day.
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(END) Dow Jones Newswires
August 25, 2010 11:48 ET (15:48 GMT)
Copyright (c) 2010 Dow Jones & Company, Inc.- - 11 48 AM EDT 08-25-10

Jim Cramer of CNBC's Mad Money is a Hard Working Monolith ...

POTC believes his long only advice proves he's hog tied and in a difficult position, 'butt' our lead political correspondent, Capitalist Pig Bob, thinks Cramer has confused  millions of investors around the world by skirting the politics of money and banking in the face of an anti private sector Administration until just recently. Dear Jim Cramer: you needed 1 1/2 years to figure out this big government bullshit?
We would like to hear Jim Cramer explain to his massive CNBC audience that his "Action Alerts Plus" service is one-sided and reflects a far different behavior than he practiced as a money manager.

Every trader must understand the market has two sides, long and short. Sometimes the averages are overbought and sometimes they're oversold. The Street.com, who Jim is Chairman of, is doing a huge disservice by only recommending going long~

POTC prides its research on open-mindedness and a two-sided market approach, so when we see Jim r spread monolithic type (long only) advice, we feel obliged to call him and his Street dot com out.

IF Jim Cramer has a problem with our thesis, we are open to debate him or his staff in ANY forum any day and time of the week.

And most serious investors who tune Cramer in must be wondering WHY he finally began addressing the anti free-market policies of Barack Obama; something POTC has been blogging about successfully since early 2008; even before the Chicago Precinct Captain was elected Disseminator in Chief..

Sincerely, the Psychology of the Call team.