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Stock World Weekly: Not Dead Yet
Here's the latest Stock World Weekly: Not Dead Yet. - Ilene
Excerpts:
On Thursday, Intel announced that it will begin high-volume manufacturing of chips using the world’s first “three dimensional” transistor, based upon a vertical “fin” structure that allows for a much more efficient gating effect. Intel Senior vice president Bill Holt commented, “The gains these transistors provide are really unprecedented” and we agree. The new technology, called “Tri-Gate,” produces transistors that operate at lower voltages, consume 50% less power, and leak less current, while also providing improved switching characteristics.
This advance will make it possible for the next generation of computer chips to run cooler, use less power (extending battery life for portable devices), run faster, and generally perform better. It also makes it possible for Moore’s law (twice as many transistors every 24 months) to operate for at least another two years. While the technology was first announced back in 2002, it has taken this long to develop it to where it could be put into full production. The first chips using this technology are scheduled to be released early in 2012. (Intel Announces ‘3D’ Transistor Technology - Moore’s Law Extended)
[...]
This week’s announcement of the death of Osama bin Laden prompted author and journalist Nomi Prins to remind us that killing Osama does nothing to mitigate our economic woes. She wrote, “while all the Osama drama was unfolding, the Treasury Department issued another plea for raising the debt ceiling, aka supporting its pro-bank policy. It went something like this: We need to borrow more to pay social security obligations and not default on our debt, so other countries won’t question our ability to manage an economy (as if that hasn’t already happened) and we won’t have to pay more to borrow more. If we don’t – you know what’ll happen – yep, another financial crisis.
[...]
Lee Adler at the Wall Street Examiner (subscription edition) presented his take on the market's drop last week and his expectations for the week ahead:
“I also suspect that this selloff was not an accident, that it was possibly orchestrated by the Fed acting behind the scenes. The surge in commodities was becoming an enormous problem for them. Bernanke said at his press conference that there was nothing the Fed could do about it. That was a preposterous statement and it should have rung bells. While the Fed did not overtly ‘do anything about it,’ there’s no way that this is just the invisible hand of the market at work, in my view.
“The question now is whether the Fed will be able to control or mitigate the process on the downside. I have my doubts. Markets can be manipulated up to a point. When they become unstable, the reactions can become self-feeding and uncontrollable. The powers that be may find that there are unintended consequences. This is where I would hope that technical analysis will come in handy.
[...]
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Phil...
Is that you...?
So now GS and MS are both predicting a slowdown, which in my front windshield means they are getting short equities and long bonds. When do they let the bottom fall out? I'd like to surf it for a ride into cash for PM's.
I saw it coming. The selloff in commodities and stocks. I'm not bragging, I just could see it in the tape.
I don't think you can call it unexpected or coming out of the blue, or blame it on a govt. conspiracy.
The markets do what the markets do. The reasons usually make themselves known after a while. If you blame someone else for your being on the wrong side of a trade you lose your objectivity. Conversely, if you lose your objectivity, you tend to blame someone for your being on the wrong side of a trade.
PM's were way overextended, the dollar was way oversold. Everybody was on the same side of the trade/boat/balcony. And then just a whiff of change in the wind and the crowd stampeded.
Change is coming, tho. Markets still work, as long as the participant are out to make a profit, they still work. It is just like watching a slow motion car wreck sometimes...
gh
I like Lee Adler's comments. That guy has a good rear view mirror.
I have a good front windshield. Here's my title from a Monday, April 25th email to customers.
ALERT COMMOD. SELLOFF IN PROGRESS "I think this could signal a multi-day break instituted by the Fed in front of their "press conf.' wednesday."Please God--End the Fed!
In response to the following comment. I have been watching the commodity tape for 30 years. I have NEVER seen a take down like Silver last Sunday.
A $6.00 drop in 10 minutes is not a "whiff of change", it's called a trigger!
PUMP AND DUMP BABY....PAY THE MAN!
the bernank and his fed should do this, get the f--- out of dodge before he and his gang of crcriminals is tarred and feathered and run out on rails. we don't need no more stinken fiat p paper
Great. Now all the Multicore processors will drop in price for all those who find that a computer that works in the blink of an eye is fast enough to check the price of silver. For all those who have to have the latest toys and high-frequency theft devices, save your money, they probably won't be cheap.
Good post, thanks
Banks are not in the business of lending money to the sheeple; the crony capitalists, other countries, and TBTF insiders will be the only recipients.
Adler's question, “The question now is whether the Fed will be able to control or mitigate the process on the downside. I have my doubts."
The Fed does have one arrow left in their quiver - whisper to the banks to relax the credit standards a bit. Credit policy standards have been tightened measurably through the credit crunch process.
The banks have done a lot of (primarily through Fed's ZIRP) balance sheet healing, and soon maybe the time for lending and credit card rates to go from 5 to 15 points + Prime, to 3 to 10 +Prime (or something like that).
The desired result would for the banks to begin lending again (many articles on ZH on why they are not) and get businesses hiring to meet increased demand. When inflation accelerates, the Fed will raise interest rates at a pace to begin maintaining a positive real interest rate.
Initially the pms and other inflaiton hedges would fly up, but then when the whisper of higher rates are leaked, pms sell off and the Stock market goes higher (increased revenues / profits). Real estate and US bond market would stabilize.
I know ...I know...a snow balls chance in hell...what else could these morons do? To resume QE^ would accelerate the confetti like USD and pms prices will continue to skyrocket.
The Fed is out of magic tricks. At this point, they dare not even push the banks to do more consumer lending. As FOFOA pointed out, you can create price inflation just by boosting the velocity of money without printing money. Especially if the money has already been printed.
The Treaserve grifters have painted themselves into a cockroach-infested corner. Anything they do that juices the economy--QE, stimulus, market support--is just more gasoline on the inflation fire.
If they try to support the dollar through liquidity extraction ("I can raise interest rates in 15 minutes") the economy and markets collapse together.
With commodities crashed, I guess there's nothing to do but turn this old gold and silver over to the scrapper.
I always have lousy timing.. I had fin technology on my old '57 Chevy - missed the peak on that one too.
That fin technology to dissipate heat on car engines was developed by my thermodynamics professor. A really modest genius.
"My fellow Americans, I have the proud duty to inform you that today US Special (Financial) Forces, in a daring and highly covert operation, have successfully apprehended and brutally killed the greatest threat to the US government today, the rising price of silver ..... er, .... I mean Osilver ..... uh, OSAMA ..... Bullion Laden .... uh, I mean BIN Laden."
Uh, i'm sorry, but that didn't seem to work out so well..... while commodities in general are still downhill (CRB), the metals sector seems to not really have learned the lesson.... especially gold spot appears to be saying "fuck you!" now. Oh, and the US dollar index too is back on the path which it knows best.
How often do Fiat Al Harakiri and Blythe want to repeat this to keep them in check?
May i say "Yes! We kicked the can!" ?
You are so..o..o..o bad!
Yes, and the topping action will take out the 'buy the dips' crowd.
It's May, time to go away.
Conflaguration, bitchez!
It's the new economic strategery.
(Why not? Seems another first.)