Thursday, June 11, 2009

Out for the Day, Deferring to Denninger and Point…

Here’s my anecdotal report for the day… I own a very nice and very expensive global Adventure motorcycle manufactured by BMW. I purchased it new and it is still under warranty. I have a couple of items that need to be repaired and when I went to make an appointment to do so discovered that they can’t give me a “courtesy bike” because they have slashed their fleet of courtesy bikes from 6 to only 2 and they have completely stopped lending bikes to people getting warranty work, they will only loan them to people paying them fresh fiat dollars! So, the economy is forcing me to sit in their dealership for several hours while they work on the bike. I’ll take my laptop and if I can get wireless there, I’ll be back, if not, this may be my last post until this evening.

Thankfully Karl Denninger has written three very fine Tickers this morning and thus I will feed traffic to his site with my highest recommendation:

The Market Ticker…

His first Ticker, Congress MUST EXCISE The Bernanke CANCER, is spot on, but my additional take is that Bernanke may very well be sacrificed to get someone EVEN MORE sympathetic to the central bank, someone like Larry Summers, and THAT would be the worst thing that ever happened to America! Distractions like this also keep people's attention off of the banks which is where the real problems are - they are the puppet masters, not the other way around.

While I can’t stand Larry Kudlow and have refused to put his face on my site, here’s an important video on the subject and so I'll make an exception to my no Kudlow rule:

The most important aspect about this whole affair is that the rule of law is not being followed, and yet this panel only skirts around that issue. This is critical to understand, as it is the rule of law that allows capital to form.

Denniger’s third Ticker is spot on as well; Downturn Moderating? More LIES! Again, he is absolutely correct and his post will help give you insight into the lies being propagated by our own government and by the media. You will find a good example of this in the post that Point made in my daily Market Thread:
Another initial claims report, another slew of revisions to previous-week data. And, as an exta-added bonus, we have revisions to data from TWO weeks ago.

First, I'd like to give a warm "Green shoots shout-out" to the 19th-consecutive week of at least 600,000 initial claim filings. Congratulations, America - it's a Depression!

Now, to the main event. Remember how initial claims "fell" in last week's report, too? From 625k to 621k? Hmm? Well, this week, they revised the previous week's number to - you guessed it, 625k. So, we see that it really wasn't a fall at all. Imagine that!

The number of insured unemployed seasonally-adjusted rose to 6.816 million, substantially rising from a revised 6.757m, originally reported as 6.735 m. That number, too, was touted as "falling" last week from 6.750, but those darn revisions even took that number higher this week. So, we see that it really wasn't a fall at all. Imagine that!

The trend continues in the 4-week seasonally-adjusted moving average. Here, we see the number now stands at 6.750m. The previous week's number was revised upward, as well, from 6.687m to 6.693.

Moreover, the non-seasonally adjusted number of initial claims rose dramatically this week after several weeks of marked declines, rocketing from a revised 500k (originally reported as 496k) to 576k last week.

And the non-seasonally adjusted insured unemployed number now sits at 6.127m. That's only up from 2.828m a year ago. Over a 100% increase over the span of a year. Mustard seeds, indeed.

We now return to our regularly-scheduled Prozac nation, already in progress.

Amazing, Point, thanks for sharing!

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