Archives for October 2013

General Dynamics: Short-term Uncertainty, Long-term Opportunity?

Courtesy of www.fastgraphs.com. General Dynamics (GD) is a leading business aviation, combat vehicle, weapons, marine and information system company. Founded in 1952, General Dynamics has integrated and acquired more than 60 different businesses – growing revenues to about $32 billion and employing approximately 95,000 employees today. The company’s sales are divvied up roughly equally between […]

NSA Breaks Into Secure Communication Links of Google and Yahoo; Italian Magazine Claims NSA Monitors Pope

Courtesy of Mish. The Washington Post reports NSA infiltrates links to Yahoo, Google data centers worldwide, Snowden documents say In this slide from a National Security Agency presentation on “Google Cloud Exploitation,” a sketch shows where the “Public Internet” meets the internal “Google Cloud” where user data resides. Two engineers with close ties to Google […]

Walmart Set Sights on Clean Energy Kingdom

Courtesy of Joao Peixe of Oilprice.com Walmart is attempting to position itself as the key mover and shaker in the renewable energy sector, and indeed, when Walmart makes a clean energy move it reverberates through the market. Walmart’s status as a leading company in terms of renewable energy adoption was furthered on 15 October with the release of […]

Obamacare Personal Story

Courtesy of Larry Doyle. With Secretary of Health and Human Services Kathleen Sebelius taking center stage this morning to address the train wreck that defines the roll out of Obamacare, the lives of countless citizens in our nation are being impacted like never before. Who in our nation would not want comprehensive and affordable coverage […]

Still Feel Confident About Collecting Your Pension After This?

Courtesy of The Automatic Earth. If your answer to that question is affirmative, I suggest you take a good hard look at what's coming out of Detroit these days. Why don't we just call it a bail-in model, not unlike Cyprus, where the waters are tested for forcing parties who historically thought they were safe […]

Fukushima Amplifies Japanese Energy Import Dependence

Fukushima Amplifies Japanese Energy Import Dependence By Ned Pagliarulo at Global Risk Insights, at OilPrice When Typhoon Wipha flooded Japan with heavy rains last week, the operator of the Fukushima nuclear power plant ordered precautionary measures to prevent leakage of contaminated water. Ever since the March 2011 earthquake and tsunami caused a reactor meltdown at the plant, Fukushima has […]

Hidden debt must still be repaid

Hidden debt must still be repaid Courtesy of Michael Pettis  Five or six years ago, a few skeptics first started pointing out that the credit dynamics underlying Chinese growth was creating an unsustainable increase in debt. This, they warned, would ultimately undermine the banking system and cause growth to collapse if it were not addressed in […]

Wall Street’s Biggest Banks Had a Trading Scheme With Madoff

Courtesy of Pam Martens. The trial of five former employees of Bernard Madoff’s Ponzi operation is currently playing out in Manhattan as the U.S. Justice Department weighs bringing charges against JPMorgan Chase, where Madoff had his primary business banking account, for ignoring flashing red lights that a fraud was taking place. According to lawsuits filed […]

Fukushima Amplifies Japanese Energy Import Dependence

Fukushima Amplifies Japanese Energy Import Dependence By Ned Pagliarulo at Global Risk Insights, at OilPrice When Typhoon Wipha flooded Japan with heavy rains last week, the operator of the Fukushima nuclear power plant ordered precautionary measures to prevent leakage of contaminated water. Ever since the March 2011 earthquake and tsunami caused a reactor meltdown at the plant, Fukushima has become […]

CPI Drops, Misses By Most In 14 Months

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. If there was another reason for the Fed to keep its foot 'through' the floor, it is the fact that despite a record growth in the Fed balance sheet YoY, CPI (ex food and energy) dropped to 1.7% and missed by its biggest margin […]

Illinois Teachers Pension Fund is 40% Funded, Drops Deeper Into Hole Despite Investment Return of 12.8%; What’s the Solution?

Courtesy of Mish. In spite of a 12.8% annual return, with an 8% return assumption, the Illinois Teachers Retirement System (TRS) fell another $3.5 billion in the hole. TRS pension underfunding grew to $55.73 billion as of June 30, 2013. Via email, the Illinois Policy Institute explains the growing liability. First, TRS only has $0.40 […]

The Second Dot-Com Bubble Is Raging, But “This Time Is Different”

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. "It's gotten pretty frothy," is how one portfolio manager describes the behavior in internet-based companies currently as signs of pre-2000 exuberance can be seen in Silicon Valley and the nearby area. As WSJ reports, home prices in San Francisco and surrounding counties rose more […]

Four New Challenges to Obamacare: Can Any of Them Possibly Work?

Courtesy of Mish. A few days ago an article the LA Times announced LA Times More legal trouble for Affordable Care Act. The Affordable Care Act proposes to make health insurance affordable to millions of low-income Americans by offering them tax credits to help cover the cost. To receive the credit, the law twice says […]

Michael Pettis Cautions China’s Hidden Debt Must Still Be Repaid

[Note: This article has been posted here without the intro and emphasis of Zero Hedge] Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Debt always matters because it must always be paid for by someone – even if the borrower defaults, of course, the debt is simply “paid” by the lender. As […]

Sitting on the Sidelines: Fear & Selective Memory

Sitting on the Sidelines: Fear & Selective Memory Courtesy of Wade of Investing Caffeine Fear is a motivating (or demotivating) emotion that can force individuals into suboptimal actions.  The two main crashes of the 2000s (technology & housing bubbles) coupled with the mini-crises (e.g., flash crash, European crisis, debt ceiling, sequestration, fiscal cliff, etc.) have scared […]

Need a Hand? Boy Gets Prosthetic Hand Made by 3-D Printer (Cost $5 vs. $30K Medical Device)

Courtesy of Mish. What do you do when you cannot afford a $30,000 prosthetic hand that your son needs? Two years ago, Paul McCarthy began searching for an inexpensive yet functional prosthetic hand for his son Leon, who was born without fingers on one of his hands. McCarthy came across a video online with detailed […]

Senator Harry Reid Supports Giving Illegal Aliens Tax Credits for Kids Not Even Living in US

Courtesy of Mish. U.S. Rep. Sam Johnson, R-Texas, left, wants to end the practice of giving illegal immigrants tax credits for kids, but U.S. Sen. Harry Reid, D-Nev., won’t let the House-approved measure H.R. 556 through the Senate. “The System is Working Fine” says Senator Harry Reid, even though the Joint Committee on Taxation calculates […]

JPMorgan Slides on “Deal” Breakdown Chatter

(…Then Gets Back Up) JPMorgan Slides On "Deal" Breakdown Chatter  Courtesy of ZeroHedge JPMorgan shares have dropped modestly (though any drop is notable in the new normal) as the WSJ reports that the $13bn deal with the Department of Justuice may be at risk: *JPMORGAN FALLS 0.6% AS DOW JONES SAYS DOJ DEAL AT RISK […]

Selling a new CMI put option

By Paul Price of Market Shadows We closed-out our Cummins (CMI) January 2014 $110 put for $1.40 per share on September 19 when the shares were riding high. We booked a $960 gain in just over seven months.  The details of that Sold to Open/Bought to Close (STO/BTC) transaction are shown below.           […]

Visiting with Lee Adler

Lee Adler of the Wall Street Examiner talks with Lindsay Williams about quantitative easing. **** Listen to a couple of podcasts with Lee Adler at Radio Free Wall Street: Lee discusses the market with Russ Winter on October 3 here. >  Lee answers some of my questions on October 25 here. >  

JPMorgan Is In a Boatload of Trouble Over Madoff: Here’s Why

Courtesy of Pam Martens. There are five words that neatly sum up JPMorgan Chase’s dilemma in its efforts to avoid a deferred prosecution agreement or a more serious outcome over its handling of Bernard Madoff’s business account for more than two decades: the “Know Your Customer Rule” and recidivism. The Know Your Customer Rule is […]

Energy Is A Power Game – 3 (They Cheat And They Lie)

Courtesy of The Automatic Earth. My personal view of how communities should manage the production and distribution of their basic necessities is very different from what has become the accepted model in the western world. The running mantra says that private industries are better at anything and everything than governments are, and hence, than communities […]

Housing Indicator Review – Pending Home Sales- No Hype, Just the Facts

Courtesy of Lee Adler of the Wall Street Examiner Is the latest episode of the long running US housing bubble saga actually coming to an end? From the way the NAR reported that pending home sales  had a year to year decline you would think so. The only problem is that that was not true. […]

Unnecessary Surgeries? You Bet! Doctors Treat Patients as ATMs; US Healthcare System Explained in Six Succinct Points

Courtesy of Mish. There is little to no incentive in the healthcare industry to hold down costs. Worse yet, the rewards for performing unnecessary surgeries is huge, while the risks of doing them are essentially nonexistent. Here are a couple of articles that show what I mean. Prostate Cancer Radiation Therapy Rises as Doctors Profit […]