March 9th, 2011
Why wouldn't the average Japanese person, who is in the exact same boat, enjoy falling prices, too?
Well, as it turns out, they do! Though wages and asset prices have stagnated in Japan for decades now, the quality of life for the average Japanese has not massively deteriorated in the way you'd think if you blindly accepted what the Western media tell you. Sure, Japan has huge problems. The rapidly aging and shrinking population, a lack of political willingness to reform, and a huge government debt burden all pose enormous challenges. But, as far as I can see, what's usually portrayed as the biggest problem of all in Japan, deflation, only really hurts the government. And that's only because the "real" value of all the hundreds of trillions of yen that it owes (mostly to its own citizens) goes up every year.
As we expected in November after disclosures about the first several Chinese fraud companies first hit, a veritable "cottage industry" has developed in exposing Chinese companies that may (or may not) be full out corporate frauds. The list of companies to see their prices plunge on such comparable reports since then is too long to count, and we are confident that many more Chinese reverse-merger and other NYSE and Nasdaq promptly listed companies will continue rising to the surface. The latest potential casualty: Deer Consumer Products (Nasdaq: DEER), which according to investor Alfred Little, "conspired to defraud investors by exaggerating it revenue, profit margins, and income on its Chinese domestic sales of its low-end kitchen appliance products. Furthermore, DEER management misappropriated $11 million in company funds through a questionable recent land purchase and also failed to disclose direct competition and other serious conflicts of interest arising from certain unconsolidated related parties." While we have not confirmed any of the allegations in the report, we present it for informational purposes to those investors who may have rushed somewhat imprudently to buy the stock.
You'll Lose Money and Buy a Load of Hooey ... Unless You Arm Yourself with Basic Information About How Your Brain WorksSubmitted by George Washington on 03/09/2011 12:39 -0500
Here's why you see smart Zero Hedge posters saying things like "Trade against the 90% who lose money" ...
Nice job creating more terrorists, you morons ...
RANsquawk US Afternoon Briefing - Stocks, Bonds, FX etc. – 09/03/11
Public employees and their leaders could publicly recognize the structural and demographic changes in the U.S. economy, and vow to tax the top 1% instead of supporting terribly regressive junk fees and sales tax increases on the working poor and the middle class tax donkeys who pay most of the taxes. The fact that they refuse to acknowledge these realities and refuse to take on the Financial Elites speaks volumes.
A day in the life of Ras Lanuf: Rebels fire machine guns at passing Gaddafi planes overhead as reporters hug the ground to avoid getting hit by bombs. And a concise eyewitness report: "They have surrounded the square with snipers and tanks. The situation is not so good. It's very scary. There are a lot of snipers," said a Zawiyah resident."
Now that the market is reaping the aftereffects of GETCO hiring "deisgnated market makers" at the drunk simian exhibit at the local zoo, and the ES is enjoying the price stability shock of the Fed's central planning, here is some more coverage for those who are now bored with 100 points Dow swings in the span of minutes. Follow the protests in rebel-controlled Bengazi in four exciting camera angles.
Uncle Pap Wants You! Greece Reaches Peak Desperation As It Tries To Sell "Diaspora Bonds" To Delay BankruptcySubmitted by Tyler Durden on 03/09/2011 10:28 -0500
Just because Greece is now terminally locked out from regular capital markets, with its CDS trading points upfront, doesn't mean the country can't drink from the same Hopium trough as every other US investor. According to Reuters: "Greece has filed a shelf registration with securities regulators in the United States to be able to sell so-called diaspora bonds to retail investors, the head of the country's debt agency said on Wednesday." In other words, Uncle Pap wants YOU to bail out the country that even the ECB appears to have given up on. And if not for G-Pap, do it for Angela: because if the euro falls apart, the the DEM returns, how will Germany export its way in a non-eurozone environment, if the fair value of Germany's currency is realized and exports plunge? And to all US citizens who are jealous they are not the target source of funds for this last ditch attempt to stave off bankruptcy (again) fear not: pretty soon (if Uncle Bill is correct), Uncle TurboTax will give the very same opportunity to all 300+ million US hopium addicts.
Who needs the barbarous relic? Not the Oracle of Omaha. But his anti-hard asset strategy only works if you are Warren Buffett.
Wholesale Inventory-To-Sales Ratio Drops To Record Low As Sales Of Petroleum Products Surge In Advance Of Price HikeSubmitted by Tyler Durden on 03/09/2011 10:12 -0500
Another quite odd data point about the US Economy: while US wholesale inventories came at 1.1% on expectations of 0.9%, (a drop from the revised 1.3%), wholesale sales increased by 3.4% on expectations of 0.5%, (and the previous revised from 0.4% to 1.1%). A headline glance would indicate a trend of improvement, as the Inventory/Sales ratio dropped to an all time low 1.13. Yet digging into the wholesale data indicates that not is as it seems: "Compared to last month, sales of motor vehicle and motor vehicle parts and supplies were up 7.8 percent and sales of electrical and electronic goods were up 3.4 percent. Sales of non durable goods were up 4.4 percent (+/-0.9%) from last month and were up 16.2 percent (+/-2.1%) from last year. Sales of petroleum and petroleum products were up 10.6 percent from last month and sales of farm product raw materials were up 5.7 percent." It appears that the bounce in wholesale sales was attributed primarily to stockpiling of oil products in advance of what many anticipated (correctly) would be an oil price shock. Look for this metric to plummet in February and March as prices have no caught up with reality.
As this is coming from Libyan State TV, the object and the subject may well be inverted, but it doesn't matter who blew it up. What matters is someone blew it up. The endgame is fast approaching, and the No Fly Zone escalation is now likely inevitable. We will post the naval update, and remark on just how far from the shores of Tripoli the USS Enterprise is, later today.
From Reuters: U.S. OFFICIAL EINHORN SAYS BELIEVES IRAN SEEKS TO REACH THRESHHOLD OF NUCLEAR WEAPONS CAPABILITY
If indeed this is the first step of a forced provocation (shocking "weapons of mass destruction" discoveries coming?) we can't wait to hear how much more excess capacity Saudi Arabia can suddenly find and come to market with. It may however be slightly troubled to replace lost Russian output too: Reuters now reports that crude products exports blocked in thick ice at Russian Baltic ports according to St Peterburg Port Authority.
Bad news for crude bears all around today.
Comscore’s Latest Stats Show Android Wiping The Floor With Its Competition, Besting Everyone By Ever Greater MarginsSubmitted by Reggie Middleton on 03/09/2011 09:20 -0500
More facts that support the ascension of a new order in mobile computing...