Banks Win Big Time – Another Bailout is in the Wind.
After months of hard-fought negotiations over agency dollars and policy provisions, the net result is a 1,600 page bill released last night.The deal was announced late yesterday after Democrats accepted Republican demands to undo some regulations including the banking provision that will allow the trading banks to deal in derivatives again in subsidiaries will full insurance from the government once again. The big banks can keep swaps trading in units with federal FDIC insurance. Just amazing. Grease enough palms and the country is yours. This bill has to pass by Friday. They would not have stick this partial repeal of Dodd-Frank if they did not have the votes.
Dow Jones Update Dec 10, 2014
The Dow did not elect any bearish reversals. During a breakout, the market typically falls back to retest the channel from which it broke-out. Any sustainable pause require a closing below 17235 for starters. A close below 17644 will suggest a move back into the upward channel. Nevertheless, the first hurdle remains in the mid 18000 level. A Phase Transition appears possible next year if we exceed the 23000 level.
It is Now a Felony to Tape the Police Abuse in Illinois
A new bill passed last week in Illinois would make it a felony to secretly tape any “private conversations,” with steeper punishments for those surreptitiously recording the police. Critics of the proposed law claim it would scare citizens from recording interactions with law enforcement, following a number of high-profile police killings caught on camera. Instead of protecting the people, once again the government circles the wagons and condones the killing of citizens by police without any accountability. Just absolutely ANTI-American in every aspect.
Every single politician who voted for this bill should be tarred and feathered, and driven out of town in their police cars. They clearly are no REPRESENTATIVES of the people, they are governmental elites against the people. Just amazing. This is why revolutions take place because government turns so hostile.
Remember the French Bastille Day? They stormed the prisons to release those wrongfully held for political power. History repeats because the passions of man never change. Hand someone power and it far too often consumes them.
World Share Market Crash
The US market has been hit in sympathy because of the chaos outside. This should be expected. We have warned that China peaked in 2007 and is headed lower. The US is the ONLY game in town and the US economy has been holding up the entire world. But the growth in the USA is anemic to put it best. Chinese stocks plunged Tuesday amid a broad decline in global markets. China’s main stock market index saw its largest fall since 2009. This development was triggered an announcement that the rules should be tightened in the lending business. This is what I mean about trend. In a bear market, every piece of news becomes bearish. People associate the decline with that news but the trend is bearish to start with. The global trend hit the US market in sympathy because generally still do not trust the uptrend. There is no froth yet because the retail are not yet in with both feet.
The Major Chinese oil and bank stocks fell, some by the daily limit of 10 percent allowed by regulators, as the market took a break from a buying frenzy that has pushed up the Shanghai benchmark by 41 percent since June. Investors had been driven by hopes for an economic rebound combined with outright cheerleading by the state press. But prices fell Tuesday after China’s clearing house for securities trades raised the minimum rating for corporate bonds it would accept in exchange for short-term credit, prompting concern about the availability of financing for trades.
Greece was suffering its biggest one-day loss since 1987 on concerns that a political crisis might jeopardize its finances. The EU and Greece just agreed on billions more loans, and the campaign has broken out in Athens as the people are turning left thanks to the crazy austerity policies of the EU. The Greek stock market crashed because it is generally expected that the Left Party SYRIZA will dominate the agenda in the coming weeks. Meanwhile, Merkel is still trying to hold on to insanity as the Bundestag is again in a hurry to decide next week on an extension of the credit program for Greece, although the conditions are unclear. Politicians are still desperately trying to hold the Euro together yet
France’s CAC-40 fell 1.4 percent to 4,315.20 on Tuesday while Britain’s FTSE 100 shed 1.3 percent to 6,584.06, and the German DAX lost 1 percent to 9,915.88. Nevertheless, we can see where the German DAX has not peaked and its strength remains a direct result of the shift within capital flows inside Europe as this is a bet against the Euro.