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Yearly Archives: 2011

JACK BOGLE: ‘Our Markets Have Gone Crazy’

“John C. Bogle counted himself among the 1 percent of wealthiest Americans a couple decades ago. You might not guess that today, when you hear the 82-year-old founder of mutual fund company Vanguard rail against economic inequality.

He can sound almost like an Occupy Wall Street protester: “Our markets have gone crazy, and there is 200 times as much speculation as there is investing,” he says.

It has been 15 years since the low-cost investing pioneer stepped down as CEO of Vanguard. It was Bogle who launched the first index mutual fund in 1976. Vanguard Group has since grown into the largest fund company, managing nearly $1.7 trillion in U.S. fund assets.

Bogle remains wealthy, but his income is a fraction of what he earned when he ran Vanguard. He’s paid a modest retainer to run Vanguard’s Bogle Financial Markets Research Center, a think tank in Valley Forge, Pa.

He resists a label that applies to most people his age: “I’m so far from retired, it’s almost an embarrassment. I’m here in the office every day.” He’s also writing his 10th book, “The Clash of Cultures: Investment vs. Speculation.” And he continues to deliver speeches.

Bogle says he’s paying close attention to tax policies he considers unfair, including one that’s favorable to the fund industry and investors with taxable accounts. The top rate for dividends and long-term capital gains is historically low at 15 percent, as a result of the extension of Bush era tax cuts that Congress and President Barack Obama agreed to a year ago. In contrast, top earners pay 35 percent on regular income. He doesn’t like that disparity.

Here are excerpts from a recent interview with Bogle:  “

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Signs Point to Economy’s Rise, but Experts See a False Dawn


Published: December 21, 2011

WASHINGTON — As the fourth quarter draws to a close, a spate of unexpectedly good economic data suggests that it will have some of the fastest and strongest economic growth since the recovery started in 2009, causing a surge in the stock market and cheering economists, investors and policy makers.

In recent weeks, a broad range of data — like reports on new residential construction and small business confidence — have beaten analysts’ expectations. Initial claims for jobless benefits, often an early indicator of where the labor market is headed, have dropped to their lowest level since May 2008. And prominent economics groups say the economy is growing three to four times as quickly as it was early in the year, at an annual pace of about 3.7 percent.

But the good news also comes with a significant caveat. Many forecasters say the recent uptick probably does not represent the long-awaited start to a strong, sustainable recovery. Much of the current strength is caused by temporary factors. And economists expect growth to slow in the first half of 2012 to an annual pace of about 1.5 to 2 percent.

Read the rest here.

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Bulls Celebrate a Holiday Win

Light volume holiday vacuum trading took the markets higher. Sincerely though, we had good consumer sentiment numbers and a great initial claims number.


NASDAQ up 21

S&P up 10

Oil up $0.71

[youtube://http://www.youtube.com/watch?v=hsU6_eSG4k4 450 300]


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Lunch Break: America’s Deficit Problem Solved

What is good for the goose is good for the gander.

If we will not print interest free currency then perhaps we can use interest to our advantage.

We live in a world where Harvard / Wharton graduate fucktards can destroy the banking system, the global economy, and the future of this country while not going to jail and holding the tax payer hostage for bailouts.

Two words:


We the people have borrowed money from the future to lend to the banks.

The banks have the opportunity to borrow at low rates, buy higher yielding treasuries, and using the arbitrage proceeds to write down losses on the books.

In some instances this money is leveraged to purchase more bonds from say Japan in order to leverage the money once again. This allows for some players to buy speculative investments and make serious coin when their bets come out on top. On another note i think this is cause for much of our volatility….yet i digress.

The first thing we can do for the citizens is let them do the same. Let U.S. citizens borrow at 0-.25%. They can then purchase treasuries and the Fed can buy them back with interest paid.

This would generate money to relieve debt and help those with negative equity or upside down mortgages.

For those who have no debt…well good job and maybe you get a tax break to make it an even playing field.

Furthermore, America could slowly eat away at its debt through this process.

If the goose is going to use us…then why not use them. The banks could mange the program and make a vig. The Fed and its private banks who have skimmed off the backs of tax payers for 98 years could pay us a favor and forfeit some of that stolen money back to America.

Meanwhile, consumer and business sentiment would change; and the economy would pick up. Uncle Sam could collect more taxes and not have to kill what republicans call “socialistic” programs. Because no matter what you say programs like Fannie, Fredie, SS, and such have worked for many years until government and their corporate masters decided to steal and tinker with them. Couple this with some austerity and you have a realistic opportunity for a fresh start.

The only rule would be to insure citizens and governemnt do not incur more debt while trying to relieve what is on the books.

Any thoughts ?


[youtube://http://www.youtube.com/watch?v=rMV-fenGP1g 450 300]

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Convenience or Children ?: Scientists Reiterate the Dangers of Wireless Technology

“At least 15 countries or international bodies have issued advisories on wireless devices and/or transmitters. Governments have warned citizens not to abandon their landlines, to hold cell phones away from heads and bodies when not in use, to restrict children’s use of cellular phones and not to install Wi-Fi. Independent scientists assert that cellular phones are linked to brain tumors, brain damage, sperm count drops and cognitive dysfunction and that being in close proximity to a wireless transmitter regularly is also a problem, especially for children whose brains, eyes, immune systems and other organs are more susceptible to the effects of microwave radiation than adults’.

So how do we relate cellular phones to cellular towers and other transmitters? Obviously holding a cell phone to your ear is usually the most intense exposure people receive at a given time — although sitting next to a Wi-Fi transmitter on a train can expose you to the same radiation as talking on a cell phone. But a 2009 Swiss study showed that people in cities were getting more cumulative radiation from moving in and out of areas with transmitters than they were getting from daily use of their cellular phones.

Cellular towers — termed a public health emergency in the 1990s by 40 public health experts at Harvard and Boston University — were supposed to be kept away from schools and hospitals per a 1993 recommendation by the California Public Utilities Commission. In 2009, the European Union delivered a similar resolution.

The documentary film “Full Signal” chronicles effects on people who have lived close to transmitters. So what to make of Distributed Antenna Systems (DAS) that are being rolled out or proposed in Westchester towns, most recently in Greenburgh where 20 antennas are proposed to be placed on utility poles in residential areas?…”

Make what you want of it…

[youtube://http://www.youtube.com/watch?v=mdZSczgtK9o 450 300]

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BP Exiting the Solar Business Due to Unprofitability

BP Plc , Europe’s second-largest oil company will shut its solar power unit and quit the business after 40 years because it’s become unprofitable. Photographer: Andrew Caballero-Reynolds/Bloomberg

BP Plc is exiting the solar business after 40 years, countering a trend led by Google Inc. (GOOG), Warren Buffett and Total SA (FP) of investing in the industry just as competition drives down the cost of sun-based power.

Europe’s second-largest oil company will wind down the unit over several months because it has become unprofitable, BP Solar Chief Executive Officer Mike Petrucci told staff in an internal letter last week. About 100 employees will be affected.

BP Solar is withdrawing from an industry that’s facing oversupply and price pressures after Chinese competitors increased production. Total, Europe’s third-biggest oil company, Buffett and Google have entered the industry with investments over the last six months to take advantage of attractive tax breaks, declining costs and a source of power hedged against high fossil-fuel prices.

BP’s move is an anomaly with more companies trying to get involved than are getting out, said Paul Leming, an analyst with Ticonderoga Securities LLC analyst in New York.

“Two of the biggest oil companies have taken the opposite approaches,” Leming said in a phone interview. “The move toward alternative energy continues to be a well-recognized megatrend.”

Read the rest here.

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This Morning’s Money Flows, Heat Map, and S&P A/D Line

Money Flows

                                                          (in millions) 
iShrs Tr MSCI EAFE             EFA     ARCA       48.96       +36.6       2.94 
Citigroup                      C       NYSE       27.37       +30.0       1.79 
Apple                          AAPL    NASD      398.28       +29.7       1.18 
SPDR S&P Retail                XRT     ARCA       53.12       +22.0      10.48 
PwrShrs QQQ Tr Series 1        QQQ     NASD       55.46       +14.9       1.91 
Abbott Labs                    ABT     NYSE       55.45       +13.9       2.24 
Google                         GOOG    NASD      630.80       +13.7       1.23 
Amazoncom                      AMZN    NASD      176.61        +9.9       1.23 
Coca-Cola                      KO      NYSE       69.49        +8.0       1.87 
AT&T                           T       NYSE       29.47        +7.6       1.86 
iShrs Russell 2000             IWM     ARCA       74.61        +7.4       1.15 
JPMorgan Chase                 JPM     NYSE       33.34        +7.3       1.30 
Microsoft                      MSFT    NASD       25.69        +7.2       1.48 
Oracle                         ORCL    NASD       25.70        +6.0       1.17 
iShs Tr DJ U.S. Real Es        IYR     ARCA       56.81        +5.7       1.67 
Select Sector SPDR-Finl        XLF     ARCA       13.00        +5.4       2.17 
UnitedHealth Group             UNH     NYSE       50.30        +5.3       2.34 
SPDR S&P Homebuilders          XHB     ARCA       17.19        +5.2      21.78 
Cisco Systems                  CSCO    NASD       18.05        +5.1       1.48 
Vanguard MSCI Emerg Mkts       VWO     ARCA       38.49        +4.9       1.59 

                                                          (in millions) 
General Electric               GE      NYSE       18.00       -19.0       0.63 
IBM                            IBM     NYSE      181.52       -18.9       0.68 
ExxonMobil                     XOM     NYSE       83.82       -17.6       0.53 
Ford Motor                     F       NYSE       10.89       -12.1       0.49 
Bank Of America                BAC     NYSE        5.32       -11.6       0.67 
Chevron                        CVX     NYSE      105.85       -10.7       0.53 
Pfizer                         PFE     NYSE       21.62       -10.3       0.49 
SPDR S&P 500                   SPY     ARCA      125.01        -9.6       0.95 
Johnson & Johnson              JNJ     NYSE       64.77        -8.3       0.51 
Cemex SAB de CV                CX      NYSE        5.27        -7.5       0.06 
Mead Johnson Nutrition         MJN     NYSE       70.27        -7.2       0.90 
Amgen                          AMGN    NASD       63.17        -7.1       0.53 
McDonald's                     MCD     NYSE       99.10        -7.1       0.58 
Wal-Mart Stores                WMT     NYSE       59.41        -6.7       0.48 
Altria Group Inc               MO      NYSE       29.85        -6.5       0.53 
Informatica                    INFA    NASD       37.35        -5.9       0.21 
Verizon Communications         VZ      NYSE       39.44        -5.6       0.44 
Direxn Daily Finl Bear 3x      FAZ     ARCA       37.68        -5.1       0.77 
Merck                          MRK     NYSE       37.34        -4.9       0.50 
Delphi Fincl                   DFG     NYSE       43.98        -4.9       0.45

Heat Map 

A/D Line


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52 Week Highs and Lows This Morning


New Highs 118 

COMPANY                       SYMBOL      HIGH                VOLUME
-------                       ------      ----                ------
Airgas Inc                    ARG         79.35               24,103
Alaska Air Grp                ALK         76.99               21,690
AllianceBrnstn NtlMun         AFB         14.73               20,612
Alliant Energy                LNT         43.73               24,452
Amer Campus Communities       ACC         41.48               38,341
American Elec Power           AEP         41.09              354,715
Amer Fincl Grp                AFG         37.10               31,303
Amer Muni Income Ptf          XAA         14.44                  203
American Water Works Co       AWK         31.89               82,371
B&G Foods                     BGS         24.64               62,627
BlkRk Munienhanced            MEN         11.48                8,836
BlkRk MuniHldgs CA Qlty       MUC         14.70                7,159
Blkrck MunHl NJ Qlty          MUJ         15.55                6,607
BlkRk MuniHldgs Qlty II       MUE         14.19               10,088
BlkRk MuniYld MI Qlty         MIY         15.20                5,830
BlRk Muyld NJ Qlty            MJI         15.34                4,758
BlRkMunyldQltyIII             MYI         13.82               33,401
BlackRock NJ Municipal Tr     BNJ         15.47                2,803
Buckeye Tech                  BKI         33.66               63,159
CH Energy Group               CHG         58.98                4,195
CMS Energy Corp               CMS         21.81               95,499
CVS Caremark                  CVS         40.88              818,086
Chesapeake Granite Wash       CHKR        22.47               95,429
Citizens Inc                  CIA         9.60                 9,065
Clarcor Inc                   CLC         51.21                8,783
Clean Harbors                 CLH         63.12               19,257
Cross Timbers Royalty Tr      CRT         49.77                2,617
DCP Midstream Ptnrs           DPM         45.64               10,801
Dominion Resources            D           52.96              140,591
Dreyfus Strategic Munis       LEO         8.85                 9,751
DTF Tax-Free                  DTF         16.13                2,612
Duke Energy                   DUK         21.72              756,105
Education Realty Trust        EDR         9.99                70,168
El Paso Corp                  EP          25.86              445,933
Elan Corp                     ELN         13.14              384,430
EnbridgeEnergy                EEQ         33.74                6,945
Enbridge Inc                  ENB         36.62               57,737
GATX                          GMT         44.07               13,173
GNC Holdings A                GNC         29.50              110,480
Gallagher                     AJG         33.38               14,333
Generac Holdings              GNRC        29.06               24,994
Genesco Inc                   GCO         64.00               79,706
Great Plains Energy Inc       GXP         21.68               62,546
Home Depot                    HD          42.14              915,106
Idacorp                       IDA         42.31               10,257
Inv CA Ins Tr                 IIC         15.20                4,291
Invesco InsCa                 ICS         14.35                  335
Invesco MIO II                OIB         7.34                 9,333
Invesco Mun Prem Inc          PIA         8.92                10,380
Invesco VK MuniOpp            VMO         14.60                2,427
Inv Vn Km Inv Grd             VGM         14.86                6,141
KIMCO Realty Pfd H            KIMpH       28.44               13,631
Kinder Morgan Energy          KMP         82.14               81,112
Kinder Morgan Mgmt            KMR         75.53               39,564
Kirby Corp                    KEX         66.28               86,253
Kodiak Oil & Gas              KOG         9.34               933,064
Kraft Foods                   KFT         37.54              608,955
LTC Properties                LTC         30.55                6,366
Eli Lilly                     LLY         41.86              823,133
Michael Kors Holdings         KORS        26.88               87,385
Monmouth Real Es Inv Cl A     MNR         9.29                22,562
NJ Resources                  NJR         49.14                9,376
NewMarket Corp                NEU         204.12               9,927
NiSource                      NI          23.31               83,712
Nuveen CA Muni Value          NCA         9.40                 3,636
Nuveen Div Fnd                NAD         14.41               11,697
Nuveen Ins Cal                NPC         15.92                  375
Nuveen Insured CA Muni 2      NCL         15.04                2,425
Nuveen Ins Muni Opport        NIO         14.88               14,165
Nuveen Insured Premium        NNF         15.70                4,012
Nuveen Insurd Prem Inco 2     NPX         13.47               14,871
Nuveen Insd Qual Muni         NQI         14.91               10,441
Nuveen MA Premium Income      NMT         14.28                  800
Nuveen NY Div Fnd             NAN         14.11                5,936
Nuveen NY Performnce Plus     NNP         15.39                3,310
Nuveen Performance Plus       NPP         15.23               16,225
Nuveen Premier Muni Inc       NPF         14.74               12,203
Nuveen Prem Inco Muni 2       NPM         14.83                9,369
Nuveen Prem Inco Muni 4       NPT         13.32               16,694
OGE Energy                    OGE         56.22               15,223
Oneok Inc                     OKE         86.21               47,166
Omnicare Inc                  OCR         34.98              100,551
Pacific Drilling              PACD        9.20                22,578
Philip Morris Intl            PM          78.55              392,804
Pimco Muni Inc II             PML         11.38               13,427
PimcoNY                       PNI         11.55                1,834
Pinnacle West Capital         PNW         48.01               84,284
PionrMuniAdv Tr               MAV         14.45               10,565
Pionr Muni HI Tr              MHI         14.79               12,568
Plains All Amer Pipeline      PAA         72.05               38,142
Progress Energy               PGN         55.16              145,461
Public Storage                PSA         132.56              33,022
Qwest Corp. Nts               CTQ         26.20                5,528
Qwest Corp7.50%Notes2051      CTW         26.38                5,924
RLI Corp                      RLI         74.32                3,869
RSC Hldgs                     RRR         18.90              372,301
RenaissanceRe Hldgs 6.08%     RNRpC       24.99                1,533
Rex American Resources        REX         22.30                1,003
Sally Beauty Hldgs            SBH         21.85              143,742
SandRidge Permian Trust       PER         20.74               15,693
Scana Corp                    SCG         44.48               19,094
Sherwin-Williams              SHW         87.90               47,399
Simpson Mfg                   SSD         35.23                9,701
Southwest Gas                 SWX         42.49                7,794
SpectraEnergy                 SE          30.60              148,650
TJX Cos                       TJX         64.00              184,380
Tanger Factory Outlet Ctr     SKT         29.56               26,402
Targa Resources               TRGP        40.74               24,854
Triumph Group                 TGI         60.58               20,971
Tyson Foods                   TSN         20.95              111,043
Vectren Corp                  VVC         29.99               18,287
WGL Holdings                  WGL         43.93               16,193
Westar Energy                 WR          28.34               44,445
Western Asset Income Fd       PAI         14.33                5,014
Wstrn Asset Muni Hi Inco      MHF         7.92                 6,541
Wstrn Asset Muni Ptnrs Fd     MNP         15.16                4,000
Wisconsin Energy              WEC         34.66              117,682
Wyndham Worldwide             WYN         36.73              120,501 

New Lows 13 

COMPANY                       SYMBOL      LOW                 VOLUME
-------                       ------      ----                ------
Advantest Corp ADS            ATE         9.52                 3,052
Alon Hldgs Blue Square        BSI         4.17                 7,550
Amer Greetings A              AM          13.06            1,526,389
CPI Corp                      CPY         2.76               261,992
China Education Alliance      CEU         0.89                81,735
China Green Agric             CGA         2.76                33,424
Christopher & Banks           CBK         2.15                52,234
Cntry Style Cooking ADS       CCSC        6.60                34,604
Kyocera Corp                  KYO         78.26                  963
Lentuo International          LAS         2.70                 1,098
PHH Corp                      PHH         12.44              264,868
Reddy Ice Holdings            FRZ         0.33                83,139
Sanchez Energy                SN          17.07               71,395


New Highs 34 

COMPANY                       SYMBOL      HIGH                VOLUME
-------                       ------      ----                ------
Air Methods                   AIRM        88.79                5,440
Allegiant Travel              ALGT        55.27                6,445
Astronics                     ATRO        38.01                1,534
Bank of The Ozarks            OZRK        29.95                9,060
Barrett Business Svcs         BBSI        19.71                1,300
Carrols Restaurant Group      TAST        11.88               10,167
Cintas                        CTAS        34.81              270,932
Commercial National Fincl     CNAF        23.39                4,650
Coronado Biosciences          CNDO        7.00                   300
Curis                         CRIS        4.49               180,595
Garmin                        GRMN        39.87               65,796
Golar LNG                     GLNG        45.50               75,189
Home BancShares               HOMB        25.49                6,798
InfoSpace                     INSP        11.28               10,030
Intuitive Surgical            ISRG        450.00              51,934
Mattress Firm Holding         MFRM        24.08               12,495
Mitcham Industries            MIND        22.86               80,388
MOD-PAC                       MPAC        6.75                 5,874
Old Dominion Freight Line     ODFL        41.20               13,363
Parkvale Fincl                PVSA        24.61                2,000
Perrigo Co                    PRGO        104.70             209,059
Rent-A-Center                 RCII        38.00               26,479
Retail Opp Investment         ROIC        11.93               41,089
Smith & Wesson Hldg           SWHC        4.37               310,878
Synageva BioPharma            GEVA        23.55                1,174
Synergetics USA               SURG        7.50                28,900
Team                          TISI        29.59                2,007
Tower Bancorp Inc             TOBC        28.40                4,258
Universal Truckload Svcs      UACL        17.73                  739
Video Display                 VIDE        5.65                 6,800
Virginia Commerce Bancorp     VCBI        7.55                 9,000
WCA Waste                     WCAA        6.43             3,415,771
Winmark                       WINA        58.75                1,073
World Acceptance              WRLD        72.49                2,968 

New Lows 15 

COMPANY                       SYMBOL      LOW                 VOLUME
-------                       ------      ----                ------
ARCA biopharma Inc            ABIO        0.97               384,558
Alaska Comm Sys Grp           ALSK        3.33               839,194
Dataram                       DRAM        0.82                   250
FreeSeas                      FREE        0.47                   940
Horizon Pharma                HZNP        4.37                14,092
Intergroup Corp               INTG        18.01                  100
Kelly Services  (Cl B)        KELYB       11.26                  770
Neogen                        NEOG        25.59              329,222
Partner Comm Co               PTNR        8.76                28,059
Poniard Pharmaceuticals       PARD        1.91                24,759
ProShs UlShrt Nsdq Biot       BIS         33.64                  300
SORL Auto Parts               SORL        2.58                 2,100
Tudou Holdings ADS            TUDO        9.54                 8,098
U S Concrete                  USCR        2.28                 4,600
WPCS Intl                     WPCS        1.47                 1,300

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