“French Socialist Francois Hollande escalated his criticism of Europe’s debt-crisis response by aiming his fire directly at the duo of German Chancellor Angela Merkel and his campaign opponent, President Nicolas Sarkozy.

“Merkel has led Europe with Sarkozy and we can measure the results,” he said late yesterday on France’s TF1 television. “If I am elected president, there will be a change in the focus of Europe’s construction. Enough free market, limitless competition, enough austerity.”

The challenge to Sarkozy on crisis management leadership underscores Hollande’s confidence he can turn his poll lead into victory on May 6 and reflects increased opposition to Merkel’s austerity prescription to settle Europe’s financial woes.

As Europe’s two largest economies head toward potential conflict over quashing the crisis, Merkel and her ruling party stood firm on German-led remedies, including the debt-cutting fiscal pact signed last month by all 17 euro-area leaders. German officials also took aim at Hollande as they reiterated Merkel’s backing for Sarkozy.

“If Mr. Hollande were to say that he wants to increasegovernment spending and save less, he’ll lose the confidence of the financial markets,” Peter Altmaier, the parliamentary whip of Merkel’s Christian Democrats, said in an interview in Berlin yesterday. “We will stick to our fundamental principles because there’s really no alternative.”

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via Dragonfly Capital

Greg Harmon’s take on the yesterday’s hollow red hammers on DIA and SPY.

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“Frontline’s new documentary about the financial crisis probably doesn’t say much you didn’t already know, at least if you’ve followed the story. But it’s a story worth telling again anyway, because memories on Wall Street and in Washington are dangerously short.

On Tuesday night PBS will air the first two parts of afour-part documentary on the crisis, called “Money, Power and Wall Street,” with the second two parts to air next Tuesday, May 1.

The first hour tells the history of the credit derivatives at the heart of the crisis, while the second hour tells the blow-by-blow of the crisis itself, culminating with the bank bailouts in the fall of 2008.

Viewers familiar with all of this material — and there’s not much new in the first two hours, which could probably have been condensed to one hour without losing much — might be confused about the point of rehashing what is by now old history. The trailer for the whole series suggests Frontline is slowly building a case, maybe to be hammered home in the final two hours next week, that the financial system is still just as primed for disaster as it was four years ago.

The second part of the documentary, airing in the second hour tonight, is more entertaining than the first, but mainly in the way oft-told horror stories are fun to hear around the campfire. Stop me if you’ve heard any of this before: Bear Stearns goes down because of toxic mortgage debt early in 2008. Policy makers take the summer off. Treasury Secretary Hank Paulson decides to let Lehman Brothers die, to teach Wall Street a lesson. Oops! AIG and the rest of Wall Street get hundreds of billions of dollars to keep the financial system from going down the drain…”

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Perhaps one of the smartest guys on the planet imo….

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[youtube://http://www.youtube.com/watch?v=6eBnqsKjFrQ 450 300]

“Europe is in big trouble, and the trouble is getting worse – much worse” is how Charles Biderman begins his latest missive. The diatribe focuses on the shortcomings of both the left (the existing political structure of government-dominated economies) and the right (a German-style austerity program of slashing spending and raising taxes) of inane politicians in Europe as the two main issues of over-spending and declining economic activity come home to roost. Starting from the Euro’s inception and its implicit permission to allow each country to borrow as much as they want without regard to what was going on in their local economy is just as pernicious as the cradle-to-grave welfare state that is the prevailing mantra “everyone deserves to be taken care of”. Therein lies the crux of the matter as borrowing (excessively) to support the people’s supposed ‘deserved’ welfare is viewed as ‘just-and-fair’ whereas in reality, simply put, “the economies of most of Europe do not work.” The Bay-Area bad-boy does offer reasoned solutions that offer hope for growth as opposed to just austerity for the sake of it as, among other things, he suggests eliminating red-tape to create a more entrepreneurial environment but ultimately he sees the probability of this as low and suggests being short via EUO (the double-levered Euro short) and EMZ (short non-USD developed – mostly Europe – markets).”

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LOL

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“(MoneyWatch) As anti-EU sentiment intensifies across Europe, nations and financial institutions are making plans about what to do if the already frayed union shrinks, or even splinters.

 

France and Germany this week are presenting a plan to ensure that governments keep the right to impose national border controls within the EU. In another sign that local officials are preparing for what could be convulsive changes within the union, the European Investment Bank is now requiring that all contracts with Greek entities include repayment guarantees in case Greece leaves the EU. It also intends to do this with other financially troubled nations.

 

The EIB, which is funded by the 27 EU members, earlier this month began inserting so-called “drachma clauses” in all contracts with Greek borrowers. These clauses allow for renegotiation of contracts should Greece leave the eurozone or should the common currency area break up. They also place the agreements under English — not Greek — law in case of any problems with the payback process.”

e

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“The Federal Reserve’s loose monetary policies have been “hideous” for recovery and will do more harm to the economy than good, says investment banker Christopher Whalen.

“Since the downturn, the Federal Reserve under Chairman Ben Bernanke has cut interest rates to near zero and pumped $2.3 trillion into the economy via buying bonds from banks to stimulate the economy.

The Fed has also reshuffled its Treasury portfolio to even further ensure long-term interest rates stay low.

Critics say such policies will only fuel inflationary pressures down the road and haven’t created more investment and hiring that they were supposed to do in the first place.

Plus the rise in food and oil prices, critics also charge, stems in part from all of that excess liquidity finding its way into commodities markets.

“That’s a hideous, hideous policy mix because it hurts the people in our economy with the lowest incomes. They see it at the grocery store, they see it in inflation for basic goods,” Whalen tells Newsmax.TV in an exclusive interview.

“We need to have a much more honest conversation about the tradeoff between inflation and real growth,” says Whalen, co-founder and vice chairman of Lord, Whalen LLC, parent of Institutional Risk Analytics, the Los Angeles-based provider of bank ratings, risk management tools and consulting services for auditors, regulators and financial professionals….”

Read and watch the rest…

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A hint into how rare, rare earth minerals may be…..

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“3M Co. (MMM) increased 3.2 percent to $89.89. The maker of Post-It notes and fuel system tune-up kits reported first- quarter earnings excluding some items of $1.63 a share, beating the average analyst estimate of $1.49.

AT&T Inc. (T) rose 0.5 percent to $30.77. The largest U.S. phone company posted first-quarter earnings that beat analysts’ estimates after wireless subscribers spent more on browsing the Web, downloading video and sending e-mail.

Big Lots Inc. (BIG) plunged 14 percent to $39.20. The discount retailer cut its U.S. comparable-store sales forecast for the fiscal first quarter to “slightly negative,” compared with a previous estimate for an increase of as much as 4 percent.

Health Management Associates Inc. (HMA) : The operator of acute-care hospitals had first-quarter adjusted earnings and revenue that exceeded the average analyst projection.

Illumina Inc. (ILMN) : The U.S. maker of DNA-mapping tools that fought off a hostile takeover bid from Roche Holding AG had first-quarter adjusted earnings and revenue that exceeded the average projection of analysts surveyed by Bloomberg. The company also said it would repurchase $250 million of its shares.

Netflix Inc. (NFLX) plunged 15 percent to $86.74. The world’s largest video-subscription service projected a slowdown in growth of U.S. streaming customers.

Texas Instruments Inc. (TXN) gained 3.6 percent to $33.05. The largest maker of analog semiconductors forecast second-quarter earnings that may top some analysts’ estimates as customers stock up on electronic parts ahead of a projected rise in demand.

United Stationers Inc. (USTR) : The Deerfield, Illinois- based distributor of business products had first-quarter adjusted earnings of 45 cents a share, surpassing the 42-cent average projection of analysts surveyed by Bloomberg.

United Technologies Corp. (UTX) advanced 1.4 percent to $80.85. The jet engine maker said first-quarter profit exceeded analysts’ estimates as earnings at its climate, controls and security unit increased and the company received a larger tax settlement than it predicted from the U.S. government.”

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In Play

On the Wires 

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“We are facing a very difficult transition from manufacturing to a service economy. We have failed to manage that transition smoothly. If we don’t correct that mistake, we will pay a very high price. Already, the average American is suffering from the failed transition. My concern is that we have set in motion an adverse economics and an adverse politics. A lot of American inequality is caused by rent-seeking: Monopolies, military spending, procurement, extractive industries, drugs. We have some economic sectors that are very good, but we also have a lot of parasites. The hopeful view is that the economy can grow if we rid ourselves of the parasites and focus on the productive sectors. But in any disease there is always the risk that the parasites will devour the healthy body parts. The jury is still out on that.”

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“Commodities guru Jim Rogers was on Fox Business News this afternoon predicting disaster for 2013.

“First of all, we have tax increases January 1,” warned Rogers. “Secondly, we’ve had recession every four to six years…  Next year, it’s four to six years.”

In addition to that awful economic back drop, Rogers is concerned about a contradiction in that markets.

“Now I’ve been investing for a long time and I have noticed when good news comes out and stocks go down, something’s wrong. So you better be worried,” warned Rogers.  “I don’t know what’s wrong.  But I know we’ve had a great first quarter.  One of the best first quarters in history.  And now good news is coming out and stocks are going down.”

Rogers is short stocks and long commodities.

Here’s video of the interview courtesy of Fox Business News:”

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via Lightspeed Active Trading Blog

April 20th, 2012 – Volume is the lifeblood of active traders. It’s the ocean in which market transactions are completed easily, quickly and without slippage. Sufficient volume provides traders the ability to move quickly in and out of securities without delay. Volatility and volume generally move in the same direction, with higher volumes usually combining with higher volatility and vice versa. Unfortunately, traders are currently facing a low-volatility, low-volume stock trading environment.

Volume has been plummeting for the last three years. Things are worse now than they were even after the great crash of 1987 and the dot-com bust of 2000. What’s happening to the volume and how can active traders find profits in the current low-volume, low-volatility market?

Read the rest here.

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

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“Big financial institutions will split and go back to their core functions of offering either retail or investment banking services, says R. Christopher Whalen, a former banking analyst and now part of the hedge fund Tangent Capital Partners.

“I think you will see Bank of America sell Merrill Lynch before long. It makes a lot of sense. They need to raise some money. Morgan Stanley — they have Smith Barney, they have the old Discover Business. Both of those are under a lot of stress right now,” Whalen tells Newsmax.TV in an exclusive interview.

“I would not be surprised to see the bigger retail firms, if you will, shed their retail arms and go back to being in investment banking and institutional sales trading, because I think those businesses make more sense than the retail business does right now.”

Story continues below video.”

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[youtube://http://www.youtube.com/watch?v=llDYLb7HoIk 450 300]

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“European Central Bank officials led by President Mario Draghi resisted calls from the International Monetary Fund and U.S. Treasury to do more to stem the debt crisis roiling the euro-area economy.

As talks of global finance chiefs ended yesterday in Washington, euro-area central bankers from Draghi to Bundesbank President Jens Weidmann argued they have done enough by cutting interest rates and issuing more long-term bank loans.

“None of the advice that the IMF is offering has been discussed by the Governing Council, in recent times at least,” Draghi said on April 20 while attending IMF meetings in Washington. Weidmann said in an interview that “the problems in Europe can’t be solved by monetary policy measures.”

Officials in Europe and around the world are bickering about additional crisis-calming steps, as turmoil returns to the continent’s bond market amid concern that Spain may need a bailout. While Draghi says Spain and Italy need to agree further action, Prime Minister Mariano Rajoy’s government wants the ECB to reactivate its bond-buying program.

Spain and Italy have made “remarkable” progress on structural changes, Draghi said. Even so, the process is far from complete for both countries, he said.

“The ECB is drawing a line to keep pressure on governments to make the necessary adjustments,” said Megan Greene, head of European economics at Roubini Global Economics LLC, who was in Washington. “If push came to shove the ECB would step in, but they’ll hold the line for now.”

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Gapping up

RDEA +51.2%, AMLN +12.4%, PHG +4.6%, DHI +3.4% HAR +1.0%,

Gapping down

The entire universe…… 

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Amazon.com Inc. (AMZN) fell 1.4 percent to $187.29. The largest Internet retailer has started shipping the Kindle Touch 3G to customers in 175 countries and territories around the world, the company said in a statement.

Amylin Pharmaceuticals Inc. (AMLN) climbed 10 percent to $25.30. The maker of diabetes drugs Bydureon and Byetta is seeking a buyer after rejecting an unsolicited bid from Bristol- Myers Squibb Co. (BMY) , two people with knowledge of the matter said.

Ardea Biosciences Inc. (RDEA) surged 51 percent to $31.53. The company will be bought byAstraZeneca Plc (AZN) for $1.26 billion, or $32 a share, to add experimental gout and cancer treatment in an effort to replenish AstraZeneca’s drug pipeline.

Deutsche Bank AG (DB) declined 4.1 percent to $43.52. Germany’s largest bank was said to probably book an additional charge of as much as 400 million euros ($528 million) tied to the sale of Actavis Group hf.

Kellogg Co. (K) fell 5.1 percent to $51.26. The maker of Corn Flakes cereal and Keebler cookies said it expects to have 2012 profit of $3.18 to $3.30 per share, reducing its outlook for the year after a first quarter in which sales fell 1.3 percent.

Otelco Inc. (OTT) : Time Warner Cable Inc. (TWC US) said it won’t renew a wholesale network connections contract that accounted for 12 percent of the provider of wireless telephone services to rural communities’ 2011 revenue.

Piper Jaffray Cos. (PJC) : The investment bank and asset manager will cut 2 percent to 3 percent of its workforce as part of an effort to reduce costs. The measures will result in a pretax charge of as much as $5 million in the second quarter, the company said in a statement.

Tellabs Inc. (TLAB) : Rob Pullen, chief executive officer of the voice and data systems company, said in a statement that he has been diagnosed with colon cancer and began chemotherapy “a few” weeks ago.

Wal-Mart Stores Inc. (WMT) dropped 3.1 percent to $60.53. Mexican Finance Minister Jose Antonio Meade said authorities don’t have enough information to open an investigation into alleged bribery at the retailer’s local subsidiary. The New York Times reported that the company curtailed an internal investigation into allegations of bribery by executives in Mexico.”

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