iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
15,616 Blog Posts

Republican Controlled House Committee Passes Measure to Audit the Fed

If you ever had any reservations about who’s shilling for the Federal Reserve, look no further than today’s vote on increasing oversight into the Federal Reserve, including an audit.

The bill was passed by way of verbal vote and will now be introduced to the House, where it will likely be killed by shills.

Several democrats, including Stephen Lynch from Massachusetts, had voted to audit the Fed back in 2012 and 2014 — but are now against it. Why you ponder? They’ve had a change of heart, especially since the bill has a real chance of passing. They cited an aversion to ‘political interference’ at the Fed.

Right.

Source: Reuters

 

“We should not in any way hinder their independence,” said Representative Carolyn Maloney, a New York Democrat, echoing the sentiment of Fed policymakers who say they could come under political pressure to avoid making unpopular decisions such as raising interest rates to slow growth and control inflation.

“This bill would open the floodgates to political interference in monetary-policy making,” said Del. Eleanor Holmes Norton, a Democrat from the District of Columbia.

Rep. Carolyn Maloney, a Democrat from New York, said the measure would lead to higher interest rates because it would undermine the market’s confidence in the independence of the central bank.

Republicans said the measure was needed to rein in the Fed.

“It is ironic that the arsonists that caused the financial collapse are now being given credit…for putting out the fire. Almost every macroeconomist concedes in retrospect that [the Fed’s] extended period of easy money led to the financial crisis,” said Rep. Thomas Massie, a Republican from Kentucky.

Did you read what Rep. Maloney actually said? She believes that if we looked into the Fed’s business, they’d punish us with higher interest rates.  What are they hiding?

Absurd.

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Markets Explode Higher: An Update on Exodus’ Oversold Status

We’re heading into the fifth day since the system flagged oversold. Based on the data, there is a high probability that stocks will trade higher in the short term. As of now, equities are higher than where they were last week, already placing the signal in success. But I think there’s more coming.

I’d focus heavily on commodities for a mean reversion spike.

For the session, stocks drifted higher by 150, led by shipping, department store, airlines, oil and gas, and copper. The laggards were gold, silver, semis and biotech.

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Maddoff Ponzi Scheme Victim Jumps to His Death in NYC

On paper, Charles Murphy had it all. He was a tall good looking man, father of two, educated at Harvard and MIT — married to a beautiful woman. He lived in a limestone Victorian era mansion in NYC that was for sale for $36 million. He was employed at Paulson and Co. where he was a partner and rubbed shoulders with the elite.

At 4:42pm today, donning a navy blue suit, Charles jumped to his death from the Sofitel Hotel in midtown Manhattan, from the 24th floor.

Why would he do such a thing?

Back in 2008, he fell victim to scumbag Bernie Maddoff and lost an astounding $7.5b in assets from his feeder fund — Fairfield Greenwich — making it the biggest loser in the Madoff scandal. In 2013, Fairfield Greenwich settled a class action suit for $80m for failure to protect client assets. His fatal mistake was believing the horseshit coming out of Bernie’s mouth.

As for his mansion, he bought it in 2007 for $33m. He tried to sell it last year for $50m — but the high price tag didn’t attract buyers. There’s a very limited market for ultra-high end properties. Shortly thereafter, he dropped the price to $36m and is still for sale.

The NY Post reported that his wife had recently crashed their Honda Odyssey, hardly a vehicle befitting a man who lives in a $36m mansion, and couldn’t afford to pay for the damage.

‘She didn’t even have enough money to pay for the damage,’ the attendant said.

At the time before his death, he was being treated for depression.

I can relate to this story, from the perspective of my grandfather. Albeit on a much smaller scale, my grandfather died penniless, after a long life in business. His downfall was two fold. He never saved money. As fast as he made any, he spent it and was very generous with friends and family. As he got older, his capacity to earn money lessened and then he lost his vision. One morning he woke up and he was legally blind. The blood vessels in his eyes had popped, due to high blood pressure, and it rendered him permanently unable to work and earn a living. For the balance of his life, he’d tell me about his regrets and how he blew it all — lamenting over not being able to buy things and instead dependent on social security to finance a meager existence — marooned at home listening to books.

I’ve always wished that I had been born earlier, so that I could’ve helped him with his troubles. When he died, I had just become a stockbroker and was making less than a cashier at the grocery store.

Money has a captivating effect on people. For those who’ve never had it, from afar, it possesses the elixir for all of life’s troubles. But for those who’ve ever made some and lost it, I doubt there are many punishments out there that can test a man’s soul with such harrowing effect. Failure is not losing money, but society often judges those on the size of their donations, model and make of their car, and square footage of their home.

On a personal level, I can think of far greater and more interesting ways to die than bouncing off the fucking pavement. I’d rather head over to Afghanistan and open up a bacon stand than take my own life — go out in style and with vigor.

Rest in piece Mr. Muprhy.

 

 

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Speaker Ryan Says Nunes Should Not Recuse Himself from Russian Witch Hunt

How does it feel to know that you have literally zero power? After Rep. Nunes disclosed that Obama had in fact surveilled the Trump team, democrats have been going apeshit, sleuthing around trying to gather evidence to remove their latest arch enemy — Devin Nunes — from the ongoing Russian investigations that he chairs.

His democratic cohort, Rep. Schiff, publicly called for him to recuse himself — further circle jerking the left into a frantic state of delirium built around the idea that their party still weilds any power at all.

Hillary’s senior advisor, Phillips Reines, has been shilling extra hard as of late.


Joining the democrats is Bill Kristol and his cadre of neocon filth calling for investigations and constantly subverting as best they can — but they’re utterly powerless.

Nunes said thanks but no thanks and Speaker Ryan just said ‘no.’



Tell me, do you feel in charge?

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Happy Times Are Here Again: Consumer Confidence Roars to Dot Com Era Levels

What does it all mean? How can consumer confidence register an astounding 125.6 reading when retail is in the pits? If people are confident, then what the fuck are they buying and where?

Aside from $AMZN, the only online destination that I hear people talking about is $W. I used to buy stuff from $OSTK and was always pleased with their service. Truth be told, I like to see things in person these days and do most of my shopping locally.

I think the consumer confidence numbers are indicative of an enthusiasm that had swept the country for the first time in nearly 20 years. Americans like nationalism. All true Americans love hearing about our greatness, even if it isn’t true.

Who doesn’t love a fairy tale? Beauty and the Beast is #1 in the box office for the past two weeks, bullish for $RGC.

“Consumer confidence increased sharply in March to its highest level since December 2000 (Index, 128.6),” said Lynn Franco, Director of Economic Indicators at The Conference Board. Consumers’ assessment of current business and labor market conditions improved considerably. Consumers’ also expressed much greater optimism regarding the short-term outlook for business, jobs and personal income prospects. Thus, consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months.”


Chart stolen from Zerohedge

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Trumpflation Stalled: These Three Charts Should Concern You

The whole premise behind so called ‘Trumpflation’ was inflation by way of robust economic growth via infrastructure spending and tax reform. Healthcare bill failure aside, the market has been pricing in doubt for the past 3 months, accelerated the past 4 weeks.

While the Federal Reserve has been menacing markets will promised of unnecessary rate hikes, the market says otherwise and has been bidding up bond prices, while tanking the dollar and crude.

This could mean one of two things.

1. Growth is slowing. We’re barreling towards recession and the Trump trade is dead.

2. Markets are merely digesting gains, feigning weakness, fueled by democratic hissy fits and Russian hysteria theories concocted by incompetents.

I’m betting on the latter — but will keep a watchful eye on those three charts. Nothing is more important now.

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Morgan Stanley Turns Bullish on Shippers, Upgrades $GNK, $SB and $SBLK to Overweight

This is an aggressive call by the Morgan Stanley analyst, upgrading a sector that has been a deathknell to investors for nearly a decade. As someone who has invested in this sector for years and on several occasions made a small fortune, I can tell you that this upgrade is notable. The core issues with the shippers are growth in China and oversupply of available tonnage.

I once had a CEO of a major shipper tell me in a conference call that if I didn’t like China I shouldn’t invest in his company.

SB +13.8% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
SBLK +8.4% (upgraded to Overweight from Underweight at Morgan Stanley)
GOGL +6.5% (upgraded to Overweight from Underweight at Morgan Stanley)

Here are some quick notes, courtesy of StreetInsider.

$SBLK
Market gradually improving driven by rising commodity prices, solid Chinese demand and muted fleet supply.

High operating and financial leverage provide meaningful upside upon anticipated 2018 recovery.

One of the largest companies in the dry bulk sector make it the preferred trading vehicle among investors.

Strong liquidity position and low cost structure allows it to further expand its fleet

$GNK
Low financial leverage with restructured debt and no fixed debt repayments until mid-2018.

Diverse fleet of dry bulk vessels spans all major vessel classes.

Dry bulk rates move above breakeven levels and GNK turns profitable.

$SB
Market gradually improving driven by rising commodity prices, solid Chinese demand and muted fleet supply.

High operating and financial leverage provide meaningful upside upon anticipated 2018 recovery.

Lowest cost breakeven in the sector, allows SB to be the first company to be in position to re-introduce a dividend.

Modern and high quality fleet of Japanese-built vessels provide significant operating advantage

According to Exodus, the following shippers are up more than 20% for the year.

And we segmented the tankers away from the shippers, thanks to an insightful member. Here are the top performing tankers.

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Dick Cheney Says Russian Meddling in American Election Could Be Considered ‘An Act of War’

Congratulations democrats! This is the moment in your life when you come to realize you’ve become one and the same as everything you’ve always hated about humanity. You and Dick Cheney, professional neocon war monger, are in agreement that Russia waged war against America this past election, by way of hacking into John Podesta’s email box and then providing that information to Wikileaks to publish and help humiliate an already beleaguered democratic party.

Bear in mind, the black hats in the CIA have yet to actually prove to the American people an actual connection between Wikileaks and the Russian government. The only evidence they’ve publicly provided us with is laughable circumstantial evidence — backed up and supported by a sundry of unnamed sources deep from within our intelligence apparatus. But we should strongly consider going to war with a super nuclear power — because strategically — that’s the best way to end this charade of humanity once and for all.

But here’s Dick Cheney, the man who started it all — war in the middle east — which has cost the lives of at least 1.3 million people (some estimate the total deathtoll could be as high as 4 million since the wars began after 9/11). Total treasury expenditure from the American pleb is in excess of $5 trillion — but it’s probably more. Some might say Dick Cheney is the single worst human to walk the face of the earth since Pol Pot.

Nevertheless, he’s in agreement that Russian’s actions against our ‘democratic process’, one that was overtly rigged against Bernie Sanders, proven in the Wikileaks, was ian act of war. Fall in line little ducks, poor fat little ducks, and sign up your kids to fight in the coming Moscow offensive —  to defend the honor of John “Pizza map” Podesta.

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Healthcare Stocks Assert Themselves Higher, Amidst a Renewed Renaissance of Obamacare Ruins

Everyone loves a good story, especially a tragic one. The “yes we can” attitude of both republicans and democrats to give Obamacare failure another chance has become a reality. The foreboding easterly winds are howling again and the market loves them.

“That’s fucking crazy”, ponders the gentleman clothed in a top hat and monocle reading this article right now.

“Precisely.”

We’re living in an era of bailouts, a livid time and place when only small people get to fail and be reduced to rubble, whereas the big and systematic businesses and organizations plod along — succored — by taxpayers money. Obamacare will get bailed out, because that’s what we do. Our integrity was traded away a long time ago, replaced with a subservience to faux free markets, Ronald Reagan, and anything or anyone who opposed Nazis.

Subsequently, as expected, healthcare stocks raged higher today — leading the overall market from the black abyss towards sea level. Some might call today’s 60 plus point turnaround in the Nasdaq ‘miraculous’, but readers here know it was nothing but a day’s light work for riggers who rig.

$HCA, $UHS and $SEM led hospital care higher, while about two dozen biotechs up more than 5% led the drugs towards elysian.

Healthcare information systems spiked too. More patients, more paperwork. $MDRX, $CPSI and $CERN impressed to the upside.

Both gold and silver led everything higher, leaving only commodities lower — which is a temporary condition that will be corrected during tomorrow’s ‘turn around Tuesday’ trade. As an example, $CLF reversed all of its losses and will be closing higher — like a nice, well mannered, stock.

I expect markets will move higher tomorrow, through the rest of the week. If I wasn’t already 100% invested in $WLK, I’d buy $X, $TECK and other commodity plays now.

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Now that the Trump Trade is Dead, It Can Begin

The energetic enthusiasm that enthralled the masses to go long infrastructure stocks like $CLF, $X and $CAT has faded like a bright star being eclipsed by the rising sun. Weak traders are getting blown out of these stocks, pressing most oil stocks into bear market territory for the year.

As a point in fact, commodity related stocks are materially lower for 2017, something often ignored by the incompetents at CNBC.

Here’s my custom commodity index inside Exodus, buoyed only by the precious metal stocks in it.

Here’s the most popular commodity ETF, $DBC, sharply lower into 2017.

The interesting thing about all of this commodity weakness is that it’s happening as the dollar gets slammed. This is not a traditional correlation, lending to the idea that the stocks have overextended to the downside and are overdue a reversion to the upside.

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