ShadowStats: US Job Indicators Are ‘Absolutely Bogus’

“The current models for determining U.S. unemployment are so flawed, and have been so manipulated by politicians of both parties over the decades, that some key indicators are “absolutely bogus” and no longer reflect the economic realities of ordinary Americans, according to private-sector economic analyst Walter J. “John” Williams.”

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This is a sad consequence of the new healthcare laws.

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Remember crime pays kidz. If you can settle for 1/100th of what you stole it is all good in this great nation!

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David Siegel of Westgate Resorts will not be able to afford new taxes. One has to ask how many companies face this dilemma ?

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Gapping up

TRLG +20.9%, ODP +8.2%, GEVO +8%, AUQ +7.5%, MG +4.8%, GLUU +3.3%, YUM +2.1%

Gapping down

FOE -8.5%, CWH -7.9%, ESE -6.1%, CMI -4.5%, LXP -4.2%, HRB -3.5%, NAV -3%, MNST -2.7%, MRC -2.2%, PCAR -1.4%, AA -1.4%, CVX -1.3%, CAT -1.2%, RDS.A -1%

ARMH, OFC, DLTR, D, FDX, HR, HD, IMAX, JCI, MTB, OC, QCOM, SAP, SFLY, SKYW, TE, THOR, TYC, VIA, ZNGA, FITB, USB, C, JPM, USB,

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In Play ,

On the Wires 

“LONDON (Reuters) – New funds targeting debt issued by emerging market companies have helped push outstanding issuance past $1 trillion as investors chase high returns while sidestepping problems in developed economies.

Total volumes of debt issued by emerging companies are up tenfold since 2000 and the size of the market now rivals that for U.S. high-yield bonds. Investors are attracted by companies’ strong balance sheets and rising demand for consumer goods and financial services in most emerging economies.

Emerging corporate debt has also milked a general rush from ultra-low-yielding developed markets, with new funds springing up to service demand.

Of 87 emerging market bond funds launched in the past nine months, 33 are dedicated corporate debt funds, according to Lipper, a Thomson Reuters company. Another 17 have said they will invest in both corporate and sovereign instruments.”

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Traders are betting differently….

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“TOKYO (Reuters) – The International Monetary Fund urged European policymakers to deepen the financial and fiscal ties within the euro area with some urgency to restore sagging confidence in the global financial system.

The IMF’s stark tone on the euro area debt crisis in its semi-annual checkup of the world’s financial health was in marked contrast to the mood in Europe, where a European Central Bank decision to buy bonds of countries that accept an assistance program has removed immediate concerns about the survival of the euro.

“Despite many important steps already taken by policymakers, this agenda remains critically incomplete, exposing the euro area to a downward spiral of capital flight, breakup fears and economic decline,” the IMF said in its Global Financial Stability Report (GFSR) released on Wednesday.”

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Oil popped 3% yesterday and is not selling off this morning as traders expect tensions to rise in the middle east.

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From slower global growth to EU banks probably needing to sell assets as the ECB may fall short had the euro in a continued tailspin.

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Costco & Yum Brands report 

“Toyota Motor Corp. (7203) began recalling about 7.43 million vehicles worldwide after the company detected a possible flaw that could lead the power-window switch to melt or catch fire.

The recall affects about 2.47 million vehicles in the U.S., 1.4 million in China and 1.39 million inEurope, said Joichi Tachikawa, a Tokyo-based spokesman. The Corolla and Camry are among the 14 models — some produced as far back as 2007 — subject to inspection and repair, he said. The company hasn’t received any reports of accidents because of the issue, he said.

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“The International Monetary Fund said European banks may need to sell as much as $4.5 trillion in assets through 2013 if policy makers fall short of pledges to stem the fiscal crisis, up 18 percent from its April estimate.

Failure to implement fiscal tightening or set up a single supervisory system in the timing agreed could force 58 European Union banks from UniCredit SpA (UCG) to Deutsche Bank AG (DBK) to shrink assets, the IMF wrote in its Global Financial Stability Report released today. That would hurt credit and crimp growth by 4 percentage points next year in Greece, Cyprus, Ireland, Italy, Portugal and Spain, Europe’s periphery.

“There is definitely a need for deleveraging in Europe,” said Michael Seufert, an analyst at Norddeutsche Landesbank in Hanover, Germany, with a “negative” rating on the European banking sector. “The danger is that this produced a downward spiral as the regulation gets stricter and stricter and the global economy cools, potentially meaning more writedowns for banks. States in the periphery are hit hardest.”

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“Emerging-market economies probably grew more slowly in the third quarter as global demand weakened amid a slump in the euro region and the U.S., HSBC Plc (HSBA) said, citing a survey of purchasing managers.

The HSBC Emerging Markets Index, which is compiled by London-based Markit Economics and tracks conditions at more than 5,000 companies, fell to 52.1 from 53.2 in the previous three months, HSBC said in a report today. Expansion was weakest in a year and the second-slowest since the second quarter of 2009 when the global recovery began from the crisis that followed the collapse of Lehman Brothers Holdings Inc., HSBC said.

The International Monetary Fund cut its global growth forecasts yesterday and said that expansion may slow even more unless officials in the U.S. and Europe address threats to their economies. Among the largest emerging markets, Brazil and China underperformed India andRussia, HSBC said.”

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” Alcoa Inc. (AA), the largest U.S. aluminum producer, cut its forecast for global consumption of the metal by 1 percentage point on slowing Chinese demand, helping to trigger a decline in Asian stocks for a third day.”

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World Markets

Currencies

Commodities

USD Libor

Euribor

Yields for Italy, Spain, France,  and Germany …

Gapping up 

RSH +15.4%, QCOR +4.7%, RIO +1.9%, LLY +1.4%, TRN +1.6%,  UNH +0.7%,

NOK +3.7%,  STM +4.7%, SPB +6.9%,

Gapping down 

EW -15.8%, ANGO -6.4%, NFLX -3.9%, ZNGA -2.1%, MDT -1.4%, DELL -0.5%,

JNJ -1.5%, BIDU -3.8%, LXK -1%,  NFLX -4%

In Play ,

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