Playing the Class Warfare Card

Obama has been hammering away at those on Wall Street who stand to make huge bonuses. It's purely populist pap and Obama knows it but he has to say it despite the fact he brought in Geithner and everyone else who were big on...Wall Street.

I heard some woman on Hannity complaining about this fact and the fact that her interest payment for her credit card was increased from 6% to 22% and said that no one deserved the obscenely large bonuses. Hannity, of course not being the sharpest tool in the Fox News shed, driveled about not getting in to debt, yada, yada, yada.

What he should have said is this:

Let's suppose you make $70,000 per year at your banking job, which is indoors and doesn't require a large amount of personal risk nor hard work. Now suppose you were offered a bonus of, say 10% of your pay or $7,000. Would you take it? Of course you would. Now suppose a guy who was laid off works in construction. He works 12-hour days and busts his butt constantly. He is making $30,000 per year since construction jobs have been reduced 50% under Obama and guys in that field will take anything for whatever pay is offered. Suppose his boss gives him a 10% bonus as well or $3,000. After taxes it will be about $2,200. He probably would look at your bonus as obscene.

My point is that it's all relative. The people on Wall Street worked hard to get where they are, paid a gaggle of money for schooling and took some personal risks to get where they are. Like I tell people when they bitch about pro athlete's getting huge paychecks; would you turn it down? If someone is willing to pay you a salary for your skill set, you should get all you can, period. That's capialism and anyone who says they would take less is either lying or a blithering, liberal idiot. I'm willing to bet that uber-liberal Susan Sarandon has never taken less money so the gaffe guy or makeup girl could get more in their take home pay.

Obama is laying the groundwork for a huge tax increase on the so-called rich but it will be an increase that will stifle hiring for months or years. A return to the 70% Carter-era rates would be disastrous and playing the class envy card to do it is completely expected but shameful just the same. He's playing to peoples darker side and he damn well knows it.

Market Rockets on Toxic Debt Plan, Housing News

I've always said I wouldn't become like a liberal and cheer every time something bad happens to the president I disagree with and come up with some lame excuse every time something good does. If we pull out of this, I'll be the first to credit Obama.

One day (or week) doesn't mean anything of consequence but it sure beats the alternative:

March 23 (Bloomberg) -- U.S. stocks rallied, capping the market’s steepest two-week gain since 1938, as investors speculated the Obama administration’s plan to rid banks of toxic assets will spur growth and investor Mark Mobius said a new bull market has begun. Treasuries and the dollar fell.

Bank of America Corp. and Citigroup Inc. both soared at least 19 percent as the U.S. Treasury said it will finance as much as $1 trillion in purchases of distressed assets. Exxon Mobil Corp. and Chevron Corp. jumped more than 6.7 percent after oil rose to an almost four-month high. The Standard & Poor’s 500 Index extended its rebound from a 12-year closing low on March 9 to 22 percent as all 10 of its main industry groups advanced.

Here's the housing data:

US existing home sales saw a surprise rebound in February, rising 5.1 percent to a stronger-than-expected annual pace of 4.72 million units, the National Association of Realtors reported Monday.

The rise marked a hopeful sign for a sector hurting for more than two years, but the industry group cautioned that sales remain weak and prices continued to fall.

The national median existing-home price for all housing types was 165,400 dollars in February, down 15.5 percent from a year ago.

The level of home sales was well above expectations of an annual pace of 4.45 million but it remained down 4.6 percent from a year ago.

Good news considering we're at about the lowest point we can be at and (hopefully) the only way to go is up. But, until the average American feels confident and job markets start showing some life, I'm not exactly tossing confetti and planning any major improvements on my house.

All in all a good day. Let's hope it continues into tomorrow and next week.

Update: Er, well, I was feeling good but now, not so much.

The Obama Effect Strikes Again

When it comes to global warming, the Gore Effect refers to the uncanny ability of global warmingist's to plan events and have the weather turn dreadful with massive snow storms occurring.

We now have the Obama Effect whereby the markets will tank as soon as he opens his piehole about his plans for saving the economy.

At 11:20, Obama made remarks to the media about the economy during a presser on earmark reform and guess what happened?

Like clockwork we suffered a nearly one hundred point drop on his remarks. Confidence should join hope and change in the Obama slogan.

Add Geithner to the mix and you have a double whammy of concerned Wall Streeters yelling "SELL!".

Chart via Bloomberg.

Obama Keeps Mouth Shut, Markets Jump

It's amazing what happens when Obama decides to not say anything about the economy for one day:

Seemingly out of nowhere, a huge turnaround in financial stocks set off the biggest rally in stocks since mid-December.

At 3:45 p.m. ET, the Dow Jones industrials were up 321 points, or 4.9%, to 6,869. The Standard & Poor's 500 Index was up 37 points, or 5.5%, to 714 and the Nasdaq Composite Index was up 75 points, or 6%, to 1,344.

The rebound in financial stocks was set off when an internal memo at Citigroup (C, news, msgs) said the troubled banking company had been profitable in January and February and looked to report its best quarter since 2007. Citigroup shares jumped 36.2% to $1.43. The stock had fallen below $1 last week.

Citi's news generated large amounts of buying across financial stocks. JPMorgan Chase (JPM, news, msgs) jumped 19.5% to $19. Wells Fargo (WFC, news, msgs) soared 13.7% to $11.37, and Bank of America (BAC, news, msgs) was up 25.3% to $4.72.

Think about that for a second; the Dow leaped 321 to 6,869. Put in that context, the Obama market has been a nightmare indeed. As always, the markets will sort themselves out if government would just get the hell out of the way.

Now if we can just get Obama to keep his mouth shut for and his hand out of our pockets for, I don't know...a year, we'll be fine and the markets will recover.

But of course, Nancy Pelosi is out there driveling on about another stimulus because the stimulus they already passed and was structured to save the country proved to be what we all said it was; a handout to unions, liberal groups and global warming zealots and has not stimulated a damn thing. I guess the markets didn't react because Wall Streeters are just like the rest of us sane people, they don't listen to Pelosi either.

Thursday Morning News and Notes

Top o' the mornin' to ya. Great view of the Hudson up here in the Valley. Pic at right from roughly where I'm staying.

Here's what's new today:

Black Caucus to Obama: "You're not being black enough".

Don't mess with the two-ply, quilted toilet paper!

Uber hypocrite Bill Moyers won't admit any wrong-doing. Typical and expected.

The market was up for a bit yesterday...until Obama opened his mouth.

A battle Obama doesn't want: Taking on Big Agriculture.

The Week That Was

I'm finishing up a whirlwind tour of California, Orient point, NY, Newburgh, NY and North Jersey that began two weeks ago today. That would be why postng has been spotty but once things settle down, regular posting will resume.

In light of that, let's review some of the things I've missed this week.

-Sen. Roland Burris is not long for the Capitol as even the new Governor of his home state has called for him to step down. America has gotten a good viwe of just how insider and sleazy Chicago politics are and is probably a tad uncomfortable we elected someone who came up through that sewer as president. It doesn't look to end anytime soon.

-Wall Street hates the Obama stimulus plans and has dropped to a level that one couldn't imagine in their worst nightmares. A pundit on CNBC had enough and now faces the wrath of the Obama administration.

-Bibi Netanyahu will take over at a critical time in Israel's history. With Iran on the brink of nuclear viability and the feckless UN sitting on the side doing nothing more than wringing their collective hands, it will be up to the IDF/IAF and the US in a covert role to stop the madness. The Lebanese aren't too happy about the re-emergence of Netanyahu if this is anything to go by:

It's official: Israel's Benjamin Netanyahu has been formally chosen to cobble together a right-wing cabinet of settlers, ultra-Zionists, racists and warmongers. Devoid of the fig leaf that Kadima's participation might have lent such a dysfunctional government, Netanyahu and his new partners will face no internal obstacles in trying to implement their wildest plans. As they get on with unchecked settlement expansion, murder, collective punishment and other various crimes, only one thing will stand in their way: reality.

Don't hold back, say what you really mean, Daily Star.

-Uber liberal Bill Moyers has seen his well-cultivated progressive credibility destroyed in less than a week. It couldn't have happened to a more hypocritical guy.

-Obama has managed to create the worst deficits in sixty-plus years and has only been in office for a month. The stimulus plan gives the finger to those who voted for The One based on his plan including infrastructure and other job-creating opportunities. It'll be a long four years.

-Taxpayers are pissed and making noise. Could this grow into a nationwide movement? Perhaps.

Tuesday Night News and Notes

What's up? Here's what's a happenin'

Rick Moran asks "Wasn't Bush belittled for taking time off during the war?". Yes, I believe he was but he's not, you know, The One.

Yeah, the real money experts seem to be overcome with excitement about the porkulus bill. The market tanked again and is at 7552.60 as we speak.

Woman uses wedgie to subdue car thief. Is there anything a wedgie can't do?

The evils of Islamic political ideology.

The longest ear hair in the world. Yeah, ear hair.

Working at the place depicted in the pic at right tomorrow.

Dow Closes Up Nearly 900 Points

The buyers were back with a vengeance including bidding up two of liberal America's most hated companies: Walmart and Exxon.

we will weather this storm and buyers will return in force once things settle out. The dollar was up dramatically against the Yen.

Also, the White House warned banks that hording money given to them in the bailout scam will not be tolerated.

Let's let the markets work things out as they always tend to do.

The Continuing Economic Ripple Effect

We've only seen the beginning of the problems we'll face going forward into the great unknown future that the mortgage meltdown has led us to. Today investors are happy and the market is currently up 450 points, tomorrow, who knows?

This cataclysm is just starting and the future is more unknown than at any time in 70-years. The blowback is coming in ways we've not even had the opportunity to appreciate.

Every action has a reaction and this event is like a stone thrown into a pond, the initial turmoil from the rock hitting the serene water shook things up but the radiating ripples could develop into a tsunami if the conditions are right. The initial explosion saw great American companies like Lehman Brother, Merrill Lynch and Wachovia go poof in a matter of days. The expanding ripples will reveal further, deeper problems.

One thing I've not read much about is the impact this will have on major pension plans including trade unions. Teachers, electricians and Teamsters will get their quarterly statements in the near future and will see exactly what the meltdown did to them. They await the bad news but have no idea of the actual impact unless they've opted to follow it daily via Internet. The unions did fight to get help in the bailout package but failed to win that battle putting them on the defensive against their own members.

Furthermore, hypothetically, say a union laborer is planning on retirement next year, his pension benefits have been pooled with other LIUNA members and that money was invested in a wide range of corporations across the spectrum. Will that money be there next year for him when he is eligible to collect? Chances are that union pensions will take a severe beating over the next few years. Or perhaps he sees the economic problems and continues to work instead of retiring, He'll be another person that needs employment or is working in a spot which a younger employee would have filled but now cannot because it's not vacant. Add to that the inherent corruption in every union and it's a recipe for disaster with more than a few union benefits execs doing the perp walk.

Think of the chaos that will ensue if major unions like the NEA, United Federation of Teachers, Teamsters, the International Union of Operating Engineers, the AFL-CIO (who has billions tied up in real estate and mortgages--link in PDF) and SEIU cannot meet their pension requirements. An Obama administration will bail them out, that's a given but what if McCain wins? Either way, we're talking a severe hit to the economy.

Wall Street Rollercoaster Continues (updated)

Jeez.

As we speak, the Dow is off 240 after dropping 600 at the open. President Bush will address the issue at 10:00 eastern.

Amazingly, in the two minutes I've spent writing this, the Dow has gained back 80 points and then lost thirty again.

Update: Now off 310.

Update: One week ago today the House passed the ridiculous bailout bill throwing good sense and economic principles out the window. Has any legislation ever been shown to be so misguided in so short a time as that inane bill? I think not.

It's getting close to the time that big investors start bargain hunting. Some people are going to get really fat and the strongest will be invincible once this settles out.

Update: The Dow nearly reached positive territory before falling back, the NASDAQ is up 10. Amazing.

Update: An interesting thought just occurred to me. If, as Allah notes. people are pulling their 401K's out in droves, the federal tax revenues collected will be enormous. Say 5-million people bail on the market--probably a very conservative estimate--they will all be paying the penalty for withdrawal, which means billions in taxes that would have been deferred for decades. It should be interesting to see what tax collections show for this quarter.

Update: President Bush just announced a new plan to shore up the credit markets that will cost an additional $700-billion. I need to digest that for a few minutes.

Update: Cavuto says get the hell out of the way and let the market do what it will. I can't argue with that. Markets dropped after Bush's speech.

Buyers Converge on Decimated Market

The Dow is up 230 (2.22%) in the first few minutes as bargain shoppers look for big scores. It'll be interesting to see how much the markets gain back today and gauge the general feeling on The Street.

Market Meltdown Blowback

Here we are at Armageddon Day plus one and we've had a half day to digest exactly what happened yesterday. In hindsight, I think it was wise to keep hands off the free markets for the time being. Evidently, so did two-thirds of the GOP and one third of the Dems.

So, how did the chattering classes respond to the cataclysmic events of yesterday?

Let's start with Karl Rove who eviscerates Speaker Pelosi in this epic blast.

The NY Post blames Pelosi as well.

The poor lobbyist's are not happy and are in a threatening mood. My heart pumps piss for them.

The WaPo warns of a world-wide catastrophe.

And finally, the Wall Street Journal sums it up this way:

Her highly partisan speech on the floor -- blaming "right-wing ideology of anything goes, no supervision, no discipline, no regulation" for the financial distress -- is no excuse for Republicans to vote no. But it is indicative of the way she has governed for the past two years -- like Tom DeLay without the charm. The cynics are saying Ms. Pelosi deliberately tanked the bill by giving 95 Democrats a pass, knowing failure would hurt John McCain, and given her track record we can see why people would believe it.

Emphasis mine. Nice line about DeLay. Seriously though, listen to Rove in the ink above and hear how he breaks down nearly every Representative that Pelosi told to vote no. I may have been wrong, she did show some leadership...the kind that entails using a stick and beating anyone who gets out of line. She wanted this to fail, otherwise there's zero excuse for her to make that speech yesterday. She sees it as a GOP loss and wants to make it as political as possible in October heading up to the election. That's a ballsy gamble--one in which she's betting with the nations chips--and should it fail, we'll all suffer greatly.

Whoa! $1.2-Trillion in Wealth Goes Poof!

Yeah, you read that headline correctly:

Sept. 29 (Bloomberg) -- U.S. stocks plunged and the Standard & Poor's 500 Index tumbled the most since the 1987 crash after the House of Representatives rejected a $700 billion plan to rescue the financial system.

The Dow Jones Industrial Average slid 778 points for its biggest point drop ever as $1.2 trillion in market value was erased from American equities. The MSCI World Index of 23 developed markets slid 6.9 percent, the most in 21 years.

I repeat: Whoa!

I would imagine a serious buyers market tomorrow and expect to see the Dow gain some back but that is one serious hit. This is new territory folks, even the Depression wasn't this intense. Back in 1929, the world was not remotely as co-dependent financially as we are now and that's clearly shown by the news you read above.

The markets will stabilize and, as I noted earlier, will adjust. Citibank, Bank of America and others will become the big players and a correction was in order but it ain't gona be pretty while that correction happens.

Dow up 420

Now I'm completely convinced that I have no damn clue what's going on:

At its 4 p.m. close in New York, the Dow Jones Industrial Average soared 420.41 points, or 3.51%, to 12392.66. The broader Standard & Poor’s 500 index gained 54.15 points, or 4.23% to 1330.65 and the Nasdaq Composite Index rose 91.25 points, or 4.19%, to 2268.26. The consumer-friendly Fox 50 picked up 35.37 points, or 3.86%, to 952.26.

The rise was broad-based and in all the major industrial sectors. The Dow's 30 members were all in green, with 29 out of the 30 gaining more than 1%.

This is the second 400-plus point rally in the Dow this month. On March 11, the Dow closed up 416 points, only to give up part of those gains later in the week.

The financial companies were the biggest victors. Lehman Brothers, which had lost almost 50% of its value Monday, was up more 40%. MF Global (MF: 8.17, +2.12, +35.04%), a clearing house of futures and options, which had fallen more than 60% in trading yesterday, was up more than 30%.

Nice bounce back by Lehman Bros. and a nice kick in the ass by Goldman-Sachs as well.

How strong is American business that an icon can implode and two days later the market acts as if it never happened?

Major props to Bernanke and Bush for doing everything they can to lessen the chances of economic meltdown.