Thank GDP It's Friday: Reality Check? [View article]
My note to Members on the currency action this afternoon:
78.73! Yen down to 80.39 and EUR/CHF still $1.201. It's amazing. All a fund has to do is keep dumping Francs, which is not very expensive as they already told you they'd support $1.20 so you can sell them in bulk and won't lose more than a penny. That then keep the SNB buying Euros – which no single fund could afford to support on their own and the Euros cause the Dollar to fall and that's how you can lose maybe $10M dumping $1Bn worth of Swiss Francs and cause the World's 2nd largest currency to move up 1% in a day while the World's largest currency drops 1% where either move can turn another Billion into $1.2Bn easy.
Switzerland sparked fears of a new currency war on Tuesday after it pegged the Swiss franc against the euro in an attempt to protect its economy from the European debt crisis.
The Swiss National Bank in effect devalued the franc, pledging to buy "unlimited quantities" of foreign currencies to force down its value. The SNB warned that it would no longer allow one Swiss franc to be worth more than €0.83 – equivalent to SFr1.20 to the euro – having watched the two currencies move closer to parity as Switzerland became a "safe haven" from the ravages of the eurozone crisis.
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
I agree with you 100% except for "Clinton could have veto'd it" - when the voting was 90-8 in the Senate and 362-57 in the House - there is such a thing as politics that come into play and it would have been a senseless, pointless veto that would have made him look like a fool and made the party look like it was divided against itself.
As you say, the lobbying effort to repeal G-S was intense - how many times do you see a bill where only 8 Senators couldn't be bought?
Aside from the fact that the entire idea of blaming Clinton is clearly, as they say: post hoc ergo propter hoc, you have to remember at the time that International Banks were operating under no such constraints (and again, ONLY the ability of banks to engage in investment banking was repealed, NOTHING else in the law by Clinton) and there was a mania at the time that we would be losing our place on top of International Finance if our banks were forced to compete with their hands tied.
ANY sort of competent oversight in the ensuing decade could have reigned in the madness that followed. There was none.
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
Clinton – Oh give me a break on that one.
From WikiPedia:
======================...
The bill that ultimately "repealed" the Act was brought up in the Senate by Phil Gramm (R-Texas) and in the House of Representatives by Jim Leach (R-Iowa) in 1999. The bills were passed by a Republican majority, basically following party lines by a 54–44 vote in the Senate[15] and by a bi-partisan 343–86 vote in the House of Representatives.[16] After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 90–8 (one not voting) and in the House: 362–57 (15 not voting). The legislation was signed into law by President Bill Clinton on November 12, 1999.[17]
In reality, the repeal involved only one provision of the Act, the one preventing the same holding company from controlling both a commercial bank and an investment bank.[18] Proponents argue that repealing this provision had little impact on the financial system and even helped restore stability during the financial crisis.[18][19][20] Ten years later, detractors condemned the partial repeal for reestablishing conflict of interest within the financial industry and fostering "too big to fail" institutions that led to the housing market collapse and its associated financial crisis.[21]
The banking industry had been seeking the repeal of Glass–Steagall since at least the 1980s. In 1987, the Congressional Research Service prepared a report which explored the cases for and against preserving the Glass–Steagall act.[14]
======================...
What was Clinton supposed to do – veto it for show against an overwhelming majority vote? This is the "smoking gun" on which the Conservatives seek to hang the blame for the entire Financial Crisis on Bill Clinton, even though "no one saw it coming" until 2008 – 7 years after he left office.
Clinton didn't start ICE, ICE was started by the Banksters in 2000 so they could get away from US laws and bamboozle the energy markets - I've written extensively on that scam.
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
That's why I circled both numbers but, when you consider that, since last summer we have EXPORTED 200Mb and that we have imported 300Mb less than last year - that 30Mb kind of washes out, doesn't it?
Also - don't forget to thank SA for getting me back on. I should be here to stay now but it's good to let them know you can be happy as well as angry.
There's a logic to that as the small caps that the RUT reflects do most of their business in the US, where things suck. The Nas companies tend to do more business internationally and benefit from the weak dollar so they are our "leaders" to the upside. Earnings have not been a friend to the RUT components.
Although we called the bounce, we're not taking the move up seriously until we get 3 of 5 indexes over the -2.5% lines. The Nas made a perfect pivot and formed a nice candle over the line and the Dow finished right on it but everyone else is struggling with resistance - notably the RUT and NYSE, who are still under the -5% mark.
We stopped out early and now we're long again after we got the 1.25% spike down we were looking for. Very close to stopping out again but I think we hold this - watching S&P 1,242 and RUT 760 to hold and give us some confidence into the afternoon.
Thank GDP It's Friday: Reality Check? [View article]
78.73! Yen down to 80.39 and EUR/CHF still $1.201. It's amazing. All a fund has to do is keep dumping Francs, which is not very expensive as they already told you they'd support $1.20 so you can sell them in bulk and won't lose more than a penny. That then keep the SNB buying Euros – which no single fund could afford to support on their own and the Euros cause the Dollar to fall and that's how you can lose maybe $10M dumping $1Bn worth of Swiss Francs and cause the World's 2nd largest currency to move up 1% in a day while the World's largest currency drops 1% where either move can turn another Billion into $1.2Bn easy.
Thank GDP It's Friday: Reality Check? [View article]
http://bit.ly/IhifLx
Switzerland sparked fears of a new currency war on Tuesday after it pegged the Swiss franc against the euro in an attempt to protect its economy from the European debt crisis.
The Swiss National Bank in effect devalued the franc, pledging to buy "unlimited quantities" of foreign currencies to force down its value. The SNB warned that it would no longer allow one Swiss franc to be worth more than €0.83 – equivalent to SFr1.20 to the euro – having watched the two currencies move closer to parity as Switzerland became a "safe haven" from the ravages of the eurozone crisis.
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
As you say, the lobbying effort to repeal G-S was intense - how many times do you see a bill where only 8 Senators couldn't be bought?
Aside from the fact that the entire idea of blaming Clinton is clearly, as they say: post hoc ergo propter hoc, you have to remember at the time that International Banks were operating under no such constraints (and again, ONLY the ability of banks to engage in investment banking was repealed, NOTHING else in the law by Clinton) and there was a mania at the time that we would be losing our place on top of International Finance if our banks were forced to compete with their hands tied.
ANY sort of competent oversight in the ensuing decade could have reigned in the madness that followed. There was none.
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
8-)
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
I'd tell you to look up Phil Gramm but he's so powerful he's had his unfavorable Wiki cleaned up so what's the point?
http://bit.ly/ybCZaI
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
From WikiPedia:
======================...
The bill that ultimately "repealed" the Act was brought up in the Senate by Phil Gramm (R-Texas) and in the House of Representatives by Jim Leach (R-Iowa) in 1999. The bills were passed by a Republican majority, basically following party lines by a 54–44 vote in the Senate[15] and by a bi-partisan 343–86 vote in the House of Representatives.[16] After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 90–8 (one not voting) and in the House: 362–57 (15 not voting). The legislation was signed into law by President Bill Clinton on November 12, 1999.[17]
In reality, the repeal involved only one provision of the Act, the one preventing the same holding company from controlling both a commercial bank and an investment bank.[18] Proponents argue that repealing this provision had little impact on the financial system and even helped restore stability during the financial crisis.[18][19][20] Ten years later, detractors condemned the partial repeal for reestablishing conflict of interest within the financial industry and fostering "too big to fail" institutions that led to the housing market collapse and its associated financial crisis.[21]
The banking industry had been seeking the repeal of Glass–Steagall since at least the 1980s. In 1987, the Congressional Research Service prepared a report which explored the cases for and against preserving the Glass–Steagall act.[14]
======================...
What was Clinton supposed to do – veto it for show against an overwhelming majority vote? This is the "smoking gun" on which the Conservatives seek to hang the blame for the entire Financial Crisis on Bill Clinton, even though "no one saw it coming" until 2008 – 7 years after he left office.
Clinton didn't start ICE, ICE was started by the Banksters in 2000 so they could get away from US laws and bamboozle the energy markets - I've written extensively on that scam.
http://bit.ly/t9yBsF
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
Fake-Out Thursday: Dollar Sacrificed On An Altar Of Lies [View article]
Also - don't forget to thank SA for getting me back on. I should be here to stay now but it's good to let them know you can be happy as well as angry.
Thanks for everyone's support!
Which Way Wednesday? [View article]
My take from Tuesday's TV appearance is still in force:
www.philstockworld.com.../
Hopefully we stop falling tomorrow but if we don't - then bearish into the weekend.
Which Way Wednesday? [View article]
Although we called the bounce, we're not taking the move up seriously until we get 3 of 5 indexes over the -2.5% lines. The Nas made a perfect pivot and formed a nice candle over the line and the Dow finished right on it but everyone else is struggling with resistance - notably the RUT and NYSE, who are still under the -5% mark.
Which Way Wednesday? [View article]