Sep 18

FYI.


- Seth Klarman: “We Are Recreating The Markets Of 2007″ (ZeroHedge, Sep 17, 2014):

Exceprted from Seth Klarman’s Baupost letter to investors,

We don’t know now (nor do we ever know) what the overall market will do. As we’ve discussed in recent letters, there are reasons for investors to be frightened but also numerous individual opportunities worth seizing. Today’s limited opportunity set means that we are still holding sizable cash balances, about 35% of the portfolio at June 30. This dry powder will become more valuable if the markets become more turbulent.

Equity markets continue to hit successive record highs, volatility remains strikingly low in equity and most other markets, and inflation is ticking higher. Investors have clearly grown weary of worrying about risky scenarios that never seem to materialize or, when they do, don’t seem to matter to anyone else. U.S. GDP, for example, was recently restated to minus 2.9% for the first quarter of 2014. Normally, this magnitude drop signals recession. Equities, nevertheless, marched relentlessly higher. Continue reading »

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Sep 09

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University.

- No Economy For Americans (Paul Craig Roberts, Sep 8, 2014):

Quarterly Request for Donations

As many of you know, a couple of years ago when I tried to retire you wouldn’t hear of it.
I resigned my syndicated column and said goodbye. In thousands of emails you described to me your reliance on my experience and education to help you to understand in a non-partisan way the events of our time. You made a convincing case. I came out of retirement, opened this website, and you have faithfully supported it.

This is your website. It will continue as long as you support it.

No Economy For Americans

Paul Craig Roberts

The Dow Jones stock average closed Friday at 17,137, despite the fact that the payroll jobs report was a measly 125,000 new jobs for August, an insufficient amount to keep up with the growth in the working age population.

The low 125,000 jobs figure is also inconsistent with the Bureau of Economic Analysis’ second estimate of second quarter 2014 US GDP growth of 4.2 percent–a figure beyond the capability of the present-day US economy.

Clearly, the economic numbers are out of sync with one another. They are also out of sync with reality. Continue reading »

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Sep 05

Stock-Market-Crash

- Most People Don’t Believe It, But We Are Right On Schedule For The Next Financial Crash (Economic Collapse, Sep 4, 2014):

People have such short memories.  Even though we are repeating so many of the same patterns that we witnessed in 2000-2001 and 2007-2008, most people do not think that another financial crash is coming.  In fact, with the stock market setting record high after record high lately, I have been taking quite a bit of criticism for my relentless warnings about the coming financial storm.  Many of the comments go something like this: “Snyder you are a moron!  Nothing you say ever comes true.  The stock market is going to keep on rocking and Obama is going to lead this country back to greatness.  I hope that you choke on all of your doom and gloom.”  Of course these critics never offer any hard evidence that I have been wrong about anything.  They just assume that since the stock market has soared to unprecedented heights that all of us “bears” must have been wrong. Continue reading »

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Sep 05

- Icahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The Plunge (ZeroHedge, Sep 3, 2014):

“The stock market is at an all-time, but economic activity is not at an all-time,” explains billionaire investor Sam Zell to CNBC this morning, adding that, “every company that’s missed has missed on the revenue side, which is a reflection that there’s a demand issue; and when you got a demand issue it’s hard to imagine the stock market at an all-time high.” Zell said he is being very cautious adding to stocks and cutting some positions because “I don’t remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people’s thinking.” Zell also discussed his view on Obama’s Fed encouraging disparity and on tax inversions, but concludes, rather ominously, “this is the first time I ever remember where having cash isn’t such a terrible thing.” Zell’s calls should not be shocking following George Soros. Stan Druckenmiller, and Carl Icahn’s warnings that there is trouble ahead.

Billionaire 1: Sam Zell Continue reading »

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Sep 03

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Aug 23

Alternative upload:

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Aug 22

You know it’s bad when …


- Former Mafia Boss Who Did a Lot of Business with Wall Street: Buy Physical Gold and Silver, Because Wall Street Steals Your Money (Washington’s Blog, Aug 21, 2014):

Crime Boss: Wall Street Has No Ethics

The Colombo crime family’s former boss – Michael Franzese – says even he doesn’t trust Wall Street.

Franzese – played by Joseph Bono in the 1990 Martin Scorsese movie “GoodFellas” – spent 10 years in prison after he was convicted on federal racketeering charges.

When he was 35, Franzese ranked No. 8 on Fortune Magazine’s list of the 50 most wealthy and powerful mafia bosses (44 of those on the list are now dead, and three are doing life in prison without parole). He reportedly raked in up to $8 million a week.  Franzese is the only surviving high-ranking member of a major crime family to publicly walk away and refuse protective custody. Continue reading »

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Jul 29

- Here’s What Wall Street Bulls Were Saying In December 2007: Read And Take Cover! (David Stockman’s Contra Corner, July 28, 2014):

The attached Barron’s article appeared in December 2007 as an outlook for the year ahead, and Wall Street strategists were waxing bullish. Notwithstanding the advanced state of disarray in the housing and mortgage markets, soaring global oil prices and a domestic economic expansion cycle that was faltering and getting long in the tooth, Wall Street strategists were still hitting the “buy” key. In fact, the Great Recession had already started but they didn’t have a clue:

Against this troubling backdrop, it’s no wonder investors are worried that the bull market might end in 2008. But Wall Street’s top equity strategists are quick to dismiss such fears.

Indeed, with the S&P 500 at an all-time high of 1460, the dozen top Wall Street prognosticators surveyed by Barron’s anticipated still more index gains during 2008: Continue reading »

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Jul 17

wicked-witch-of-the-east

- Did the Other Shoe Just Drop? Big Banks Hit with Monster $250 Billion Lawsuit in Housing Crisis (Washington’s Blog, July 16, 2014):

By Ellen Brown

For years, homeowners have been battling Wall Street in an attempt to recover some portion of their massive losses from the housing Ponzi scheme. But progress has been slow, as they have been outgunned and out-spent by the banking titans.

In June, however, the banks may have met their match, as some equally powerful titans strode onto the stage.  Investors led by BlackRock, the world’s largest asset manager, and PIMCO, the world’s largest bond-fund manager, have sued some of the world’s largest banks for breach of fiduciary duty as trustees of their investment funds. The investors are seeking damages for losses surpassing $250 billion. That is the equivalent of one million homeowners with $250,000 in damages suing at one time. Continue reading »

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Jul 16

- The Final Warning: Individual Investors Piling Into Stocks, Market Leverage Hits All Time Highs (SHFT, July 14, 2014):

The story goes that in the Winter of 1928 Joe Kennedy, father of President John F. Kennedy, went to have his shoes shined. When the shoe shine boy finished he offered Kennedy a tip. “Buy Hindeburg,” he said.

Kennedy promptly sold off all of his stock holdings. Within a year the United States saw a massive stock market crash that wiped out the life savings of millions of Americans and ushered in a decade’s long Great Depression.

When asked why he sold all his stocks Kennedy replied, “You know it’s time to sell when shoeshine boys give you stock tips. This bull market is over.”

Throughout history there have always been critical warning signs in the midst of financial exuberance that signaled the bursting of the bubble.

According to a report from Bloomberg the warning siren may have just gone off again. Continue reading »

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Jul 13

muppets-kermit-dead

Summary:

Recall that it was Goldman’s David Kostin who in January admitted that “The S&P500 Is Now Overvalued By Almost Any Measure.” It was then when the Goldman chief strategist admitted there was only 3% upside to the bank’s year end target of 1900.  Well, that hasn’t changed. In his latest note Kostin says that “S&P 500 now trades at 16.1x forward 12-month consensus EPS and 16.5x our top-down forecast… the only time S&P 500 traded at a higher multiple than today was during the 1997-2000 Tech bubble when margins were 25% (250 bp) lower than today. S&P 500 also trades at high EV/sales and EV/EBITDA multiples relative to history. The cyclically-adjusted P/E ratio suggests S&P 500 is now 30%-45% overvalued compared with the average since 1928.” And this is where Goldman just goes apeshit full retard: “we lift our year-end 2014 S&P 500 price target to 2050 (from 1900) and 12-month target to 2075, reflecting prospective returns of 4% and 6%, respectively.

Wait, what???

- Goldman Admits Market 40% Overvalued, Economy Slowing, So… Time To Boost The S&P Target To 2050 From 1900 (Zerohedge, July 12, 2014):

One has to give it to Goldman Sachs: the bank which until a few years ago just couldn’t lose a penny, is about to report earnings which will, even if they beat Wall Street’s estimate, be an embarrassment to the bank that openly used to run the world until very recently. The reason, aside from the moribund economy, is that trading volumes have plummeted at an unprecedented pace as i) nobody trusts the centrally-planned capital markets any more and ii) valuations are, despite what permbulls can say on TV stations with record low viewership, so ridiculous few if any would actually go long here. Continue reading »

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Jul 10

Wall Street vs Main Street

- Wall Street Teams Up with U.S. Intelligence Cronies in Bid to Form Fascist “Cyber War Council” (Liberty Blitzkrieg, July 8, 2014):

Want to hear the worst idea in the history of horrible ideas? How about we take the industry responsible for destroying the U.S. economy and wrecking the lives of tens of millions of people, and then allow it to create a “government-industry cyber war council.”

It appears that trillions in taxpayer bailouts simply wasn’t enough for Wall Street. Noting that it can seemingly get whatever it wants whenever it wants, the industry is now positioning itself to overtly control U.S. “cyber” policy. What could go wrong?

The man behind the push appears to be ex-NSA chief Keith Alexander, who as I reported on last month, is now: Pimping Advice to Wall Street Banks for $1 Million a Month. As I mentioned in that post, one of Mr. Alexander’s most high profile clients is Wall Street’s largest lobbying group the Securities Industry and Financial Markets Association (SIFMA). Unsurprisingly, SIFMA is behind the latest push to formally merge Wall Street with the government intelligence apparatus. Mr. Alexander isn’t wasting any time.

Bloomberg reports that: Continue reading »

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Jul 09

Keith Alexander Custom Keyboard

- Wall Street gets former NSA chief to help banks create ‘cyber war council’ (RT, July 8, 2014):

The top trade group on Wall Street wants the White House to assemble a “cyber war council,” according to a new report, as America’s banks continue to brace for hackers to hit their computer systems with an unprecedented attack.

Bloomberg News reported on Tuesday this week that its journalists have viewed an internal document from the Securities Industry and Financial Markets Association, or Simfa, calling for the United States government to create such a council “to stave off terrorist attacks that could trigger financial panic by temporarily wiping out account balances” by way of a cyberattack previously unseen on US servers.

According to Bloomberg journalist Carter Dougherty, the unpublished Simfa draft proposes that executives and deputy-level representatives from no fewer than eight US agencies join forces to ensure that the banking industry can withstand a severe cyberattack. Continue reading »

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Jul 08

And I can only repeat myself …

BTFATH!

child-stacking-blocks

… because what could possibly go wrong?

From the article:

“Welcome to the new normal capital structure, where everything is upside down and nothing makes sense.

Oh, and to all those pointing to the weekly increase in the H.8 statement and screaming “look at the recovery”, our apologies: you are, as usual, wrong.”

I hope you are prepared for what is coming.


Stock Buyback Shocker: Companies Using Secured Bank Loans To Repurchase Stock (ZeroHedge, July 8, 2014):

It took the mainstream media a few months to catch up to the theme first revealed here that in addition to the fading QE (even if supplanted by NIRP in Europe and Turbo QE in Japan), one of the primary driving forces of the market’s outperformance in 2014 was a relentless buyback bid as corporations, lacking better uses for their cash, bought a record amount of their own shares in Q1 (and as will soon be proven) in Q2 attempting to increase the EPS by lowering the S.

It was only logical that it would take the MSM a while to follow up with the logical next connection: one which is so simple we described it back in 2012 when we showed “Where The Levered Corporate “Cash On The Sidelines” Is Truly Going” – namely, an unprecedented scramble to lever up and use the proceeds to buy back stocks, a decision which is great for existing shareholders and horrible for the economy (as it means much less spending on capital investment) for employees (as it means less cash available for wages and thus, for the all important wage inflation) and for the long-term viability of the buying back company (as it levers up the corporate balance sheet without a matching increase in revenues or cash flows, in fact, the opposite).

Which brings us to today, and specifically, an FT article titled “Bankers warn over rising US business lending” in which we read that “US lending to businesses is reaching record levels but banks are privately warning that the activity should not be seen as evidence of an economic recovery.”

And the stunner: Much of the corporate lending is going to fund payouts to shareholders, finance acquisitions and fuel the domestic energy boom, bankers say, rather than to support companies’ organic growth.

Continue reading »

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Jul 08

- Marc Faber: The asset bubble has begun to burst (CNBC, July 8, 2014):

It’s the question investors everywhere are wrestling with: Are asset prices in a bubble, or do they simply reflect the fact that the global economy is growing once again?

For Marc Faber, editor of the Gloom, Boom & Doom Report, the answer is clear. In fact, he says the bubble may already be bursting.

“I think it’s a colossal bubble in all asset prices, and eventually it will burst, and maybe it has begun to burst already,” Faber said Tuesday on CNBC’s ‘Futures Now’ as the S&P 500 lost ground for the second-straight session. Continue reading »

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Jul 07

H/t reader M.G.:

“You need to read to the last sentence to get what I have been saying for months. Less than half the world international transactions are now completed in US dollars……..”


US economist Joseph Stiglitz
US economist Joseph Stiglitz

- Stiglitz: I’m ‘very uncomfortable’ with current stock levels (CNBC, July 7, 2014):

Nobel Prize-winning economist Joseph Stiglitz said on Monday he is “very uncomfortable” with current stock market levels, arguing they do not equal a strong economic recovery in the United States.

The Dow breached 17,000 points on Thursday before the U.S. markets closed for the long July Fourth weekend. The jump came after the U.S. government reported the economy created a better-than-expected 288,000 jobs in June and the unemployment rate fell to 6.1 percent.

“The reason the stock market is high, in part, is that interest rates are low, wages are low and the emerging markets are still growing much faster than the U.S. economy, let alone Europe,” Stiglitz said. He pointed to the fact that many U.S.-listed multinationals are increasingly getting a large chunk of their profits from emerging markets. Continue reading »

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Jun 27

- Why Financial Reporters Are Clueless: They Copy And Paste Keynesian/Wall Street Propaganda (David Stockman’s Contra Corner, June 25, 2014):

By David Stockman, former director of the Office of Management and Budget (1981–1985)

This morning’s Q1 GDP revision might have been a wake-up call. After all, clocking in a -2.9%—-cold winter or no—it was the worst number posted since the dark days of Q1 2009. Well, actually, it was the fourth worst quarterly GDP shrinkage since Ronald Reagan declared it was morning again in American 30 years ago.

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Jun 21

$1 Million A Month – What Ex-NSA Chief Alexander Charges Wall Street For “Advice” (Liberty Blitzkrieg, June 20, 2014):

So what’s a Peeping Tom, anti-democratic, Constitution-trampling intelligence crony to do after leaving decades of “public service?” Move into the private sector and collect a fat paycheck from Wall Street, naturally. Following in the footsteps of some of the other top tier public sector cronies looking to cash out after doing their best to destroy the Republic, such as Banana Ben Bernanke collecting $250,000 per speech and Turbo Tax Timmy Geithner hopping over to private equity giant Warburg Pincus, Mr. Alexander is in good crooked company.

So what is Mr. Alexander charging for his expertise? He’s looking for $1 million per month. Yes, you read that right. That’s the rate that his firm, IronNet Cybersecurity Inc., pitched to Wall Street’s largest lobbying group the Securities Industry and Financial Markets Association (SIFMA), which ultimately negotiated it down to a mere $600,000 a month. In case you need a refresher on how much of a slimy character this guy is, I suggest you read the following posts:

NSA Chief is Pushing for Legislation to Stifle the First Amendment

NSA Holds “Top Secret” Meeting to Stop Powerful Anti-Spying Amendment

NSA Chief Admits “Only One or Perhaps Two” Terror Plots Stopped by Spy Program

We learn from Bloomberg that: Continue reading »

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Jun 12

H/t reader squodgy:

“Frank Zappa said…It Can’t Happen Here…..but it already has.”

Flashback:

- Former CIA officer Philip Giraldi: Is Israel A U.S. Ally? (Video)

- Dr. Paul Craig Roberts: ‘AIPAC Owns The US Puppet Government’

- Joe Biden on Shalom TV: ‘I am a ZIONIST’

- Former Israeli Minister: ‘It’s a Trick, We Always Use It.’ (calling people ‘anti-Semitic’)



Added: Jun 11, 2014

aipac_rules_america

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Jun 06

Geithner-Obama

- “Stress Test” Reviewed: Tim Geithner Is “A Grifter, A Petty Con Artist” (Liberty Blitzkrieg, June 5, 2014):

Geithner is at heart a grifter, a petty con artist with the right manners and breeding to lie at the top echelons of American finance at a moment when the government and financial services industry needed someone to be the face of their multi-trillion dollar three card monte. He’s going to make his money, now that he’s done living his life of fantastic power after his upbringing of remarkable mysterious privilege. After reading this book and documenting lie after lie after lie, I’m convinced that there’s more here than just a self-serving corrupt official. There’s an entire culture, of figures at Treasury, the Federal Reserve, in the entire Democratic Party elite structure, and in the world of journalism, a culture in which Geithner is seen as some sort of role model.

- From Matt Stoller’s fantastic article published yesterday, The Con-Artist Wing of the Democratic Party

Timothy Geithner is likely to go down in American history as one of the most dangerous, destructive cronies to have ever wielded government power. The man is so completely and totally full of shit it’s almost impossible not to notice.

The last thing I’d ever want to do in my free time is read a lengthy book filled with Geithner lies and propaganda, so I owe a large debt of gratitude to former Congressional staffer Matt Stoller for doing it for me. Stoller simply tears Geither apart limb from limb, detailing obvious lies about the financial crisis, and even more interestingly, Geithner’s bizarre bio, replete with mysterious and inexplicable promotions into positions of power.

So without further ado, here are some excerpts from this excellent article. Continue reading »

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May 27

Here Is The Mystery, And Completely Indiscriminate, Buyer Of Stocks In The First Quarter (ZeroHedge, May 27, 2014):

With the Fed having tapered its liquidity injections into the stock market from $85 billion to “only” $45 billion per month, retail investors getting burned by the recent high beta and momentum stock flame out and “greatly unrotating” into the renewed safety of bonds, not to mention a churning market that until last week was unchanged for the year, and hedge funds ever shorter into this latest ramp, many are asking themselves: who is buying?

Here is the answer. Continue reading »

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May 07

David Stockman was Director of the Office of Management and Budget under President Ronald Reagan, serving from 1981 until August 1985.

- Here They Go Again: Wall Street Is Offering Debt-On-Debt-On-Debt! (David Stockman’s Contra Corner, May 6, 2014):

Here’s how the daisy chain of debt works— short form. LBO’s issue debt—loads of it. Leveraged buyouts are now being priced at typical top-of-the-bubble ratios of 10X cash flow (“adjusted EBITDA”). The portion of these LBO debt towers that consists of bank term loans and revolver facilities is sold to freshly minted financial conduits called CLOs (for Collateralized Loan Obligations) which are not real companies and which do not have any money! Continue reading »

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Apr 03

- The Evolution Of Wall Street (In One Cartoon) (ZeroHedge, April 3, 2014):

Wall Street has come a long way from Jesse Livermore’s “money is made by sitting, not trading”, “It takes time to make money”, and “nobody can catch all the fluctuations.” Now we have HFT “flash boys” who only make money ‘trading’, in milliseconds of time, capturing every fluctuation…

Flash Boys

h/t @kalleldn of Penguin Press

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Apr 02

FYI.


- Jon Stewart On HFT: “It’s Not American; It’s Not Even Capitalism. It’s Cheating” (ZeroHedge, April 2, 2014):

Jon Stewart is stunned by the world of HFT (where “stock exchanges sell the right to advance information to high frequency traders [by locating their computers closest to the exchange]“) and the mainstream media’s immediate jump to defend it “as good for us”, but as Michael Lewis explains “anyone whose livelihood is dependent on Wall Street [from CNBC, FOX and even the SEC] is invested in this… it sounds like a conspiracy.”

In this excellent interview, The Daily Show doubter asks “we have set a standard for share buying (you can’t but 1/100th of a share) so why not set a standard for frequency of trading?” Lewis stoic response sums up our world perfectly, “in a sane world, we would… but the money is too big,” and adds that indeed that is what IEX is doing. The HFTs “function on volume and volatility” alone and “they know the prices before you do… which is illegal if it’s a person, but as a computer, meh?” Continue reading »

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Apr 01

Flash Boys - A Wall Street Revolt
@Amazon.com: Flash Boys: A Wall Street Revolt Price: $17.46

From the article:

The stock market really was rigged… “It’s 2009,” Katsuyama says. “This had been happening to me for almost two years. There’s no way I’m the first guy to have figured this out. So what happened to everyone else?” The question seemed to answer itself: Anyone who understood the problem was making money off it…

- Read Michael Lewis’ Flash Boys: A Wall Street Revolt: An Adaptation (ZeroHedge, March 31, 2014):

This article is adapted from the book “Flash Boys: A Wall Street Revolt,” by Michael Lewis, published by W. W. Norton & Company. Courtesy of The New York Times Magazine. The full Michael Lewis book can be purchased on Amazon.

The Wolf Hunters of Wall Street

Before the collapse of the U.S. financial system in 2008, Brad Katsuyama could tell himself that he bore no responsibility for that system. He worked for the Royal Bank of Canada, for a start. RBC might have been the fifth-biggest bank in North America, by some measures, but it was on nobody’s mental map of Wall Street. It was stable and relatively virtuous and soon to be known for having resisted the temptation to make bad subprime loans to Americans or peddle them to ignorant investors. But its management didn’t understand just what an afterthought the bank was — on the rare occasions American financiers thought about it at all. Katsuyama’s bosses sent him to New York from Toronto in 2002, when he was 23, as part of a “big push” for the bank to become a player on Wall Street. The sad truth was that hardly anyone noticed it. “The people in Canada are always saying, ‘We’re paying too much for people in the United States,’ ” Katsuyama says. “What they don’t realize is that the reason you have to pay them too much is that no one wants to work for RBC. RBC is a nobody.”

Continue reading »

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Mar 24

- This Chart Is A True Picture Of the Unemployment Crisis In America (Testosterone Pit, March 22, 2014):

The unemployment rate is a complex measure based on surveys and some grotesque definitions, including who gets counted as “unemployed.” These definitions eliminate millions of jobless people from the list of the officially “unemployed.” The resulting grotesque data – grotesque in, grotesque out – is then adjusted to paper over nagging real-world issues, such as seasonality. The result is a number that is easy to toss around during speeches but hard to use for gauging what’s really going on in the labor market.

The unemployment rate’s inability to accurately portray the labor market has caught so much flak that even the Fed abandoned it as a trigger for unwinding its zero-interest-rate policy. Instead, it will “take into account a wide range of information….”

Continue reading »

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Mar 20

- New doomsday poll: 99.9% risk of 2014 crash (MarketWatch, March 17, 2014):

Commentary: Black-swan crisis warning for now through mid-April

SAN LUIS OBISPO, Calif. (MarketWatch) — Global risks are accelerating. This is our fourth major poll update of industry leaders: A critical review of their warnings from early last year when we first predicted a 87% risk of a crash: Bernanke’s Fed saw an “unsustainable bubble” … Gross: “credit supernova” … Gundlach: “kaboom ahead” … Ellis: “Don’t own bonds” … Shilling: “shocker” … Roubini: “Prepare for perfect storm” … Shiller: “Irrational exuberance is back” … Schiff: “Doubling down” on “doomsday” prediction … InvestmentNews’ warning 90,000 advisers: “tick, tick … boom!”

A few weeks later the crash risk was up to 98%. Then a dramatic preholiday uptick in investor sentiment. America’s collective unconscious tired of negativity after a Halloween headline: “Economic guillotine dead ahead.” A week later, 2014 became the “Year of the Boom.” Bank of America’s chief strategist screamed: “Bet on the bulls now.” The Great Gatsby spirit was celebrating the holidays: “Even old grumpy Dr. Doom, celeb economist Nouriel Roubini, began humming a happy tune all over television: “A global recovery is going to occur, get into equities.”

Continue reading »

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Mar 12

- Wall Street Bonuses Soar 15% To Highest Since 2007 (ZeroHedge, March 12, 2014):

Wall Street bonuses (on average) in 2013 rose 15% to the highest since 2007. As OSC Tom DiNapoli notes, “Securities industry employees took home significantly higher bonuses on average… although profits were lower than the prior year.” In fact, as we noted earlier, profits at the banks fell 30%.

bonus-1

Average compensation for securities industry professionals in New York City ($360,700) were 5.2 times greater than the rest of the private sector ($69,200).

salaries-NYC

Thank You Ben…

But don’t get too excited… The US is not #1 when it comes to bonuses… Continue reading »

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Mar 07

- A Healthy Economy Requires Fewer People Working on Wall Street, Making Much Less Money (Alternet, March 5, 2014):

The financial industry is a parasite on our society.

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Mar 07

Prepare for collapse.


- Obama’s Growth Forecast Bullish, Wall Street Exuberant, Corporate Insiders Freak-Out Bearish (Testosterone Pit, March 4, 2014):

In his budget for fiscal 2015, President Obama assumed courageously or just conveniently that the US economy would grow 3.1% in 2014, quite a jump after having lumbered along at 1.9% in 2013, and given what looks to be a soft start for the year. But according to the budget proposal, the economy would boom. It would be the fastest growth rate since 2005. It would be the most exciting economy in nine years.

That level of growth would solve a lot of problems. Citing the rebound in housing – the price bubble, apparently, though sales are plunging – along with strength in manufacturing and oil production, the budget statement claimed that there were “encouraging signs emerging across industries.” And so the economy “is moving forward and businesses are creating jobs, but our top priority must be accelerating that growth….”

Continue reading »

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