Timely, Thanksgiving Day Reminder of Trickle Down Economics

 If "trickle-down economics" is or were so great.

Meanwhile, this is a line for food recently in our own Dallas, Texas.

A growing number of Americans are going hungry

26 million now say they don’t have enough to

eat, as the pandemic worsens and holidays near

54 million Americans are going hungry

40 million Americans are at risk of eviction

Thanks, Senator McConnell.

Thanks, Republicans.

Breathing a--Big--Sigh of Relief

No doubt you've heard the great, if overdue, news.

GSA Chief Says Decision to Allow Transition to Begin

Fantastic. A relief, as I said. Unfortunate it took this long, nearly 3 weeks to get to it.

And here are the markets response.

Dow crests 30,000 points on vaccine hopes, Biden transition

We're not completely out of the woods, so to speak, since the Orange Man is still technically in power and in the White House, of course, very unfortunately.

How Trump is sabotaging Biden -- and America

What he, Trump, is doing, is still doing:

--Sabotaging the Fed

Treasury Secretary Steven Mnuchin has demanded the Federal Reserve return $455 billion in unused funds from a lending program meant to prop up American businesses. The Fed could legally continue with the funds if Mnuchin didn't claw them back, but he argues the program should end at the end of this year -- a decision panned by the US Chamber of Commerce.

This will create political headaches for Biden, but it'll also have a negative impact on everyday Americans...

--Boxing Biden in on foreign policy

A report by CNN's national security team is emblematic of how Trump's administration is working actively in ways to make Biden's life more difficult.

The goal is to set so many fires that it will be hard for the Biden administration to put them all out, an administration official tells CNN in the report.
Trump's administration is:

• Further removing troops from Afghanistan and Iraq in the final days of Trump's time as President.
• Contemplating new terrorist designations in Yemen that could complicate efforts to broker peace.
• Rushing through authorization of a massive arms sale that could alter the balance of power in the Middle East.
• Planning a last-minute crackdown on China.
• Floating the idea of a last-minute military strike on Iran, according to The New York Times.
• Building a wall of sanctions that make it difficult for Biden to rejoin the Iran nuclear deal Trump scuttled.
• Sending Mike Pompeo on the first-ever official visit by a US secretary of state to an Israeli settlement....

--Handing Biden an economic grenade

Trump's failure to negotiate a new Covid stimulus with Congress will set Biden up for a political fight on Day One about how to help Americans hurt by the pandemic.
Here's what expires in December without further action:

• Provisions to beef up unemployment insurance
• A deferral on student loan payments
• A paid family leave provision
• Coronavirus relief funding for states whose tax base has been decimated
• And a moratorium on evictions...

--Weakening American democracy

The most important of these various nails left under the couch cushions is Trump's steadfast refusal to accept the legitimacy of Biden's win, an ultimately futile bit of pique, since Biden will take the oath of office and Trump will no longer be President in January.

Either because he wants to retire campaign debt, seed a new media empire of democratic disbelievers or is personally incapable of admitting defeat, Trump's actions will have consequences.

As if all that isn't bad enough, there's this horror of a thought.

Why Do All The Networks Keep Calling Biden The "46th President?" He'll Be The 47th

 It does look like Biden was just elected to be our 47th President.

Let’s not forget about the upcoming five-minute Presidency of Mike Pence, during which he will be allowed to say exactly twenty-one words: "I hereby pardon Donald Trump for all crimes, known or unknown, he has ever committed against the United States of America."

God forbid and heavens help us.

But for now, at least, Joe Biden is finally confirmed as President and he's picking his staff, the people in his administration.

Thank goodness.

Link:

Trump strips Biden’s options to boost the economy

Pennsylvania once again confirms and reassures.

Pennsylvania certifies Biden victory

Not done there, Nevada does same this morning.

Nevada Supreme Court unanimously approves Biden win

And just to remind us just precisely how small, petty and shallow he is, Trump did this today.

Trump makes one-minute appearance to tout Dow's 30,000

Has Interweb Social Media Peaked?

Yesterday, it was Facebook.

Facebook stock drops more than 20% 

after warning that revenue growth will take a hit

Today, it's Twitter.

Twitter Reports Q2 Drop in Users, 

Stock Falls 12 Percent

I ask, has social media peaked?

Are we tired of this now?

Are we moving on, as a society?

And It's Nearly Over

The Brexit Mess

The sky isn't falling, of course, nor do I think it will but with the UK having their rather significant vote a few days ago, it seems a good deal came out of it, both nationally, for them, as well as for the world. Herewith are a few headlines of examples from the weekend so far.

Britain Rattles Postwar Order and Its Place as Pillar of Stability

Pound takes a beating, markets in tailspin 

after British vote to exit E.U.

After 'Brexit,' 3 Centuries of Unity in Britain 

Are in Danger

Moody's cut UK's credit outlook to 'negative'

It would be bad enough if it only hurt the UK but then there are the damages it did on this side of the pond, of course.

Dow closes down 600 after Brexit surprise; financials post worst day since 2011

And then there are the world markets it hit:

Brexit panic wipes $2 trillion off world markets - 
as it happened

World stocks tumble as Britain votes 

for EU exit

World Markets Roiled by Brexit as Stocks, 

Pound Drop; Gold Soars

And not bad enough it hurt the UK--and its allies--quickly, it also gave its enemies cause for celebration:

Despite Russia's Somber Facade, Glimpses of Joy Over EU Referendum

There were some glimmers of hope, fortunately. On this first one, it seems millions of Brits want a "second shot", a second vote on this whole Brexit idea. They have misgivings about the turnout.

UK voters, 3 million of them, want another bite at the Brexit apple

On this one, lots of UK business leaders and investors think the populace will dismiss the idea outright:

Corporates and investors think voters will shun Brexit despite recent polls

So at this point, I and a lot of us are just hoping some good, somehow, comes of this vote they had. We shall see. It would be nice if they rethought it, had yet another election, and voted it down.

Hey, I can dream, can't I?

There is an old insult people used to throw around. It went like this--if you didn't like someone, for whatever reason, they would tell them "May you live in interesting times."

Between Donald Trump running for the Presidency and this Brexit vote, someone must have had it in for humanity about now.

This will be making some Right Wing heads asplode today

The very famously business-friendly Forbes magazine, no less, writes the following:

Economically, Could Obama Be America's Best President?

From the link:

"...Presidents universally take credit when the economy does well (such as Reagan,) and choose to blame other factors when the economy does poorly (such as Carter.) But there was a clear pattern, and link, between policy and financial market performance.

Although we hear almost no one in the Obama administration taking credit for record index highs, they should. Because the President deserves attention for how well this economy has done during his leadership.

The auto rescue plan has worked. American car manufacturers are still dominant and employing millions directly and in supplier companies. Wall Street reform has been painful but it has re-instated faith amongst investors. The markets are far more predictable than they were four years ago, as VIX numbers demonstrate greater faith and less risk.

Even for small investors, such as thoughs limited to their 401(k) or IRA investments, the average annual compound return on stocks under President Obama has been more than 24% since the lows of March, 2009. This is a better result than either Clinton, Reagan or FDR – who were the prior winners in our book.

To which, we have only one thing to say to the Republicans, the Right Wingers, the Neoconservatives and all the haters out there:

Suck it, beeyotches.

Compare the statistics

And then vote accordingly.

Republicans and Right Wingers, hoping for bad American economy

From MSNBC:

"As the indications of a successful economic recovery continue to pop up, pundits on the right seemed to be hoping for bad news. On Thursday’s radio program, Rush Limbaugh seemed willing to sacrifice economic gains just to see the president hurt. “Any immediate economic setback, or the perception of one, could weaken Obama’s clout,” he said. “Maybe a sour economy is worth it if it will distract Obama.”

Sean Hannity spoke wishfully about the possibility of another quarter of economic contraction. “There’s a lot of talk these days about how the GOP can come back politically,” he said. “I’ll tell you right now, the quickest possible way politically, with a contracting economy like this, if it happens again in the next quarter, that’s a recession.”

Although Hannity and Limbaugh would love to blame another economic contraction on President Obama, many experts agree the real cause is the government spending cuts, particularly those at the state and l...ocal level, which typically come from Republican-controlled governments. Republicans have also embraced the defense-heavy sequestration cuts that could slow the economy as well.

 Friday’s jobs report made for mediocre headlines, with 157,000 jobs added and the slight uptick of the unemployment rate to 7.9%. But a closer look showed some good economic news that could ruin the rightwing’s hopes for a tanking economy. January marks the 35th straight month of private sector job growth. Additionally, revisions to last year’s data show that nearly 2.2 million total jobs were created, meaning 2012 was the best year for job creation since 2005.

 There are also more symbolic signs of an improving economy, with the Dow Jones industrial average climbing above 14,000 for the first time since October 2007 on Friday.

 If local governments continue to make cuts, however, it will be difficult to continue growth. The president is unlikely to be able to enact a jobs plan without the help of Republicans in Congress."


The rest here:  Why the rightwing is rooting for another recession

Need further proof?

Fact. Facts. Statistical, hard data. You decide.

Gasoline jumps 10 to 12 cents per gallon today

The European Union declared they're going to strongly support the banks and financial system over there so the Dow and markets zoom up by nearly 300 points. Following that, oil per barrel zooms up in price, due to speculators. The result? You and I pay 10 to 12 more cents per gallon today at the pump. Ah, progress. We need to stop oil speculation, folks. It's not good for the country, let alone the world. It used to be illegal. It needs to be again. Links: http://news.yahoo.com/stocks-jump-european-pledge-help-banks-134246596.html; http://finance.yahoo.com/news/Oil-prices-above-85-for-first-apf-972074541.html?x=0&sec=topStories&pos=4&asset=&ccode=

Financial good news/bad news today

The bad news first: Italy may be going to hell in a debt handbasket right now, it's feared, so the EU is scrambling and people are freaking out a bit so naturally the 2nd wave--the double whammy, if you will--is that the markets are all down. The Dow is pretty close to 200 points down today at present. The good news? It wrecks the price of oil, fortunately and predictably. We can't support that high price of oil if not enough are buying. Links: http://finance.yahoo.com/news/Stocks-sink-on-fresh-fears-apf-3537054013.html?x=0&sec=topStories&pos=1&asset=&ccode=; http://finance.yahoo.com/news/Oil-drops-below-95-per-apf-3522845891.html;_ylt=AjawuDjIoyQ8mNdId8DG4cK7YWsA;_ylu=X3oDMTE1bzE5czZiBHBvcwM2BHNlYwN0b3BTdG9yaWVzBHNsawNvaWxkcm9wc3RvYmU-?x=0&sec=topStories&pos=3&asset=&ccode=

Good news for America; bad for Republicans

The markets are up--way up.  About 200 points.

It seems the country just got a good jobs report--The U.S. private sector posted its largest jobs gain in three years and China posted strong factory production data.

And sure, it's temporary.  It's a blip. 

But it's good news.

It's good economic news and we need that.

Just not the Republicans. 

They don't want any real, good news for the country until after November, 2012.

Link:http://www.reuters.com/article/idUSTRE69O1D320101201

The beginning of a panic?

As I wrote the other day, after the Dow dropped nearly 1,000 points in a day, I have to say again, the government had better jump all over this and find out what happened and make certain it doesn't happen again.

Check out this video. This blogger, Felix Salmon, won't be alone. Investors in the markets want and need dependability, integrity and accountability in the markets or they'll bail.

And that won't be good for those markets or this country.

Hopefully Congress is listening.

Concerning that drop in the Dow yesterday

Unless you slept the last 24 hours, you know the Dow Jones dropped the most it ever had yesterday, about 1,000 points, before recovering a bit for "only" a loss of 347.80 points.

Whew.

That was close.

But looking into this further, there was already news out this morning that--oops--it may have been a computer accident.

Or something.

And I'll tell you what, the government better look into this--thoroughly and quickly--to find out what, exactly, happened, why, how and whether anything even inappropriate happened, if not out-and-out manipulative and/or illegal.

A few days or times of that kind of trading happening and any faith in the markets would not just be shaken but destroyed.

How likely is it people and companies would want to trade when markets are that volatile?

Nothing would be safe.

Check this out from Bloomberg News today:

The market rout triggered scrutiny from lawmakers. U.S. Representative Paul Kanjorski, a Pennsylvania Democrat, set a May 11 hearing. U.S. Senator Ted Kaufman, a Delaware Democrat, questioned whether markets that increasingly rely on computer algorithms to execute thousands of transactions in seconds triggered false trades.

“This is unacceptable,” Kanjorski, who leads a House Financial Services subcommittee that oversees the SEC, said in a statement. “We cannot allow a technological error to spook the markets and cause panic.”

Yeah, I'll say.

Then there's this from Talk Left Blog :

Algorhithms may be the culprit.

High-speed trading, which uses sophisticated computer algorithms based on specific scenarios to automate transactions at speeds in the millionths of a second, now accounts for about 60 percent of U.S. equity volume.

"The potential for giant high-speed computers to generate false trades and create market chaos reared its head again today," Senator Edward Kaufman said in a statement.

"False trades"?

So yeah, Congress, please look into this, right away and thoroughly, please.

And don't pander to the corporations running this show, either.

(Man, that last line is funny, ain't it?)

Have a great weekend, folks. (If the markets don't collapse).

A bullet, dodged

Did you hear that sound?

It was the sound of all of us, here in the US, dodging a bullet.

I believe that was done this past long holiday weekend when the international markets tumbled on news of Dubai's default on their loans.

Actually, I guess it's technically not a default, they just asked if they could not repay their loans for 6 months. If you're the banker, it's a default, though.

Anyway, the markets tumbled Wednesday night.

Luckily for us and the world, it was our national Thanksgiving holiday so our trading markets were closed. Had they been open, I feel sure our markets would have emotionally, psychologically and, really, understandably reacted to this news and been set back with a down trading day. There's no telling how much it would have dropped, if at all, if I'm right.

Then, the next international trading day (our Thanksgiving night), the markets came back and were mostly up so by the time we had our partial trading day on Friday, all the bad news was buffered by this second round of better news.

A friend and I predicted a down day on the markets Friday and, as it turned out, we were right.

What I'm saying is that, with the international markets taking a hit last Wednesday, if ours had been open the next day, we likely would have tumbled--and a good deal, I believe--and then, that night, there could was likely a strong chance those same international markets would have reacted to that, too, and negatively.

Of course this is all speculation but I will say that I'm not the only one that thinks that if there is one more big financial problem any time soon, the whole international deck of cards is in fairly precarious shape and it will be tough on this already-weak system.

Here's hoping we skate by.

Link: http://news.yahoo.com/s/time/20091130/wl_time/08599194339200

What should happen

According to The New York Times yesterday, people and companies have been upset and raising some cane about the possibility of the government limiting--just limiting, mind you--short selling on the stock market.

I've said before, what should happen is that short selling should be just outright killed.

Why, you ask?

A stock is a bet, really. A stock is a bet on a company doing well, when you get right down to it. If it does well--and you hope it does, of course--you do well. If the company does not do well--if it's badly managed or whatever--you do poorly.

I ask you, does that not qualify as a financial, business bet?

So short selling, which is "the practice of borrowing stock and selling it in the hope that its price declines", is a bet on a bet, purely and simply.

To short-sell a stock, you're betting the company and the stock do poorly and that the stock price falls.

This is no way to run a stock market for two reasons, at minimum:

1) It is, as I said, a bet on a bet and it weakens the stock market and

2) It causes a decline on the stock market to precipitate and increase in its fall, once the fall starts.

If you have a down market--a bear market, to use the term--it helps make the negative side of themarket increase and so, it falls further than it otherwise would.

And check this out--the rule that the government is considering putting back in has two pretty interesting characteristics about it.

First of all, it was only taken out 2 years ago, just before this halving of the markets. This seems to indicate the effect the elimination of this rule has had, I think.

And second, this is a law that was put into place back in 1938, during the Great Depression. It was in effect that long in our country's history. I think this shows that this same law stood us in pretty good stead, over all those years and through all those markets.

Seems to me like a good time and a good idea to put it back into our system of laws--along with other ones that would separate banking from insurance from
investment houses, while we're at it. Those laws came out of the Great Depression, too, of course.

The right thing to do, for our lawmakers, is to put these rules and laws back on the books. But you know representatives in government--in the first
place, they usually show the backbone of a sea slug and secondly, there's money to be made in taking corporate lobbyist's money, instead of doing the right
thing for you, me and the country.

Get this, from the original article: "They"--the corporate shills, against resinstating the laws--"have also said that the changes in the accounting
rules and the proposals to restrict short-sellers threaten to undermine the independence of the regulators and show their willingness to buckle under heavy political pressure."

Boy, that's a beauty.

What they're, in effect, saying is that, if the government does the right thing--that is, put these rules back into place--that they'll be "buckling under heavy political pressure" and that they're undermining "the independence of the regulators." Unbelievable.

Sure there's heavy political pressure. The financial world was going to hell in a handbasket, folks. Everyone was at the lifeboats. It seems only right to fix the system, since its broken.

What they were doing there is calling the government people who suggest we do the right thing with these rules cowards, in hopes of not having any restrictions put on them. All they want to do is be able to make as much money as possible, as frequently as possible, with as little rules as possible.

Let's hope our government does the right thing for the markets, the country and the American people and puts these rules, regulations and laws back into place.

As close as we supposedly/apparently came to total, worldwide financial meltdown, you would think intelligence and right would prevail.

Link to original story:
http://dealbook.blogs.nytimes.com/2009/04/06/some-revile-plan-to-limit-short-selling/?scp=2&sq=some%20revile%20plan%20to%20limit%20short%20selling&st=cse

Where now?

The Dow is up some more, along with other relatively good news about and on the economy, at least here in the United States. (European markets took a hit, however. Hopefully they're not more realistic than us in the States). Home sales were shown to be up last month in news reports yesterday, too.

So maybe now we can and should consider cutting back on the billions and trillions we were originally going to throw at Wall Street.

Sounds like a good idea.




Link to original story:
http://finance.yahoo.com/news/Wall-St-jumps-on-signs-rb-14740995.html

Happy St. Patrick's Day

As I write this, we're warming up in our area.

We were warmer today and the forecast is to hit nearly 80 degrees on this St. Patrick's Day.

Hip-hip-hooray.

The Dow was up about 700 points by the end of last week and we're almost into Spring.

Yow.

More hope.

As it is, I am on vacation and computer hook ups are unavailable (by my choice, really).

So my next entry here should be this coming Sunday.

I didn't want to miss this opportunity to wish you a Happy St. Patty's Day.

Citigroup? Connected to a profit?

Are you kidding me?

A profit?

That's what they want to declare that?

Let me be the first to point out that Citigroup took how many billions of dollars from the government, just to prop it up?

Billions of dollars.

February 27, the United States was to be giving them 25 billion dollars for a 36% stake.

How, exactly, do you take 25 billion dollars from your own government's tax coffers and then declare a "profit"?

What nonsense.

Not only that, but from everyone's best estimations, there is still a great deal of bad paper on Citigroup's books they have to get rid of.

And the Dow goes up 379 points?

This is, truly, a world gone mad.

This must be some bizarro universe.

Citigroup's stock is at $1.40.

How excited can you be about that?

I have to say, the possibility of that same Dow losing those nearly 400 points between now and Friday are far too possible--and even likely.

But who knows?

In this "bizarro world", absolutely anything could happen.

Link to story: http://www.reuters.com/article/newsOne/idUSTRE5291NK20090310

Late, poignant Happy Holidays wishes