Wednesday, June 1, 2011

Morning Update/ Market Thread 6/1

Good Morning,

Futures are falling this morning despite a still lower dollar, bonds are rising sharply, oil is down a little, gold is up, silver is down, and most food commodities are down as well. Watch the food commodities, many of them are showing a Head & Shoulder’s pattern on their daily charts and they are close time wise to having a symmetrical right shoulder.

It was the ADP report this morning that sent futures lower and bonds higher. Remember, this report is notorious for being wrong, but this was a very large move from April’s supposed 179,000 private sector jobs created, to only 38,000 in May. That will lower expectations for this Friday’s Employment Situation Report. Of course we know that there have not been ANY new jobs created overall, the economy is still losing jobs, especially in relation to population growth.

And almost all the data is turning bad again. Yesterday the Chicago PMI fell out of bed, and Consumer Confidence fell, but wouldn’t you know that State Street Confidence rose? Definitely something to watch as those on State and Wall Streets are always the last to get it. Yesterday’s Case-Shiller data had to be embarrassing to all the housing bottom callers… except of course that they have no shame because they are mostly all shills trying to sell you something so that they can buy their next trinket from China or from Japan where they have been powering their industry with shoddily built nuclear power plants built on shorelines on top of fault zones. Don’t worry school children, just wear long sleeved shirts to your contaminated school, it’ll be okay (that is until about 10 to 20 years from now when they will deny that your cancer has anything to do with their corporate captured government response).

Even the worthless Mortgage Banker’s Association couldn’t pull a positive number out of their hats this morning (hey, it’s spring time) with their Purchase Index flat but their Refi Index fell 5.7%, bringing their overall index down 4.0% (like I believe anything this thug Association says).

And the Challenger Job-Cut Report also is headed in the negative direction with mass layoffs rising slightly month over month.

Gee, all that money printing and I can’t remember the last truly good piece of evidence that the economy is actually improving. Could it be that adding debt and/or money printing are actually BAD for the economy? Naw, couldn’t be, that would mean that all the bankers and economists are either wrong or lying, and that can’t be now can it?

The Manufacturing ISM and Construction Spending are released at 10 Eastern this morning and will be reported inside today’s Daily Thread.

Bad data yesterday and yet we get a tremendous ramp job into the close. Bailing out Greece? Please… that is nothing but a joke and it’s not even funny anymore like it was the first time when you could at least use being naïve as an excuse. What really happened was still more manipulation, this time it came when the CME LOWERED margin requirement for placing bets on most of the major indices. Sweet, got to keep the game alive for what, oh another 24 hours?

The following article reminds us how the world really works – it is about WHO creates the money. Those who create the money use it to buy the politicians who make the laws. They use the money to buy/ build exchanges where phony paper products are traded that serve no purpose to society – this is otherwise known as gambling, but it’s legal because they print the money and own the politicians. So, the markets are totally corrupt, and government is totally captured, and this is just one example of how it happens:

Judd Gregg joins Goldman Sachs

Judd Gregg, the former Republican senator from New Hampshire, is joining the investment bank Goldman Sachs as an international adviser, the company announced Friday.

“Judd Gregg’s experience and insight will contribute significantly to our firm and our continuing focus on supporting economic growth,” Goldman Sachs chairman and CEO Lloyd C. Blankfein said in a statement announcing the move.

Gregg will "provide strategic advice" and "assist in business development initiatives," according to Goldman Sachs.

“A strong financial sector is critical to our nation and one of the key engines of job creation in our country,” Gregg said in the statement. “I hope that I can bring to Goldman Sachs some ideas and perspectives that will help the firm continue to be a leader in supporting its clients in their pursuit of the capital, credit and advice they need to be successful.”

Gregg served three terms in the Senate and is a former two-term governor of New Hampshire. He served as chairman and ranking member of the Senate Budget Committee and also as ranking member of the Senate Appropriations Foreign Operations Subcommittee.

Uh-huh. Yep, of course we all know what he’ll really bring to Goldman Sachs…

In other words, nothing new, the robbery of your (and future generation’s) productive efforts continues unabated.