I decided to split off my postings of economic links from Jim's Thoughts, so that I can get that topic back to what it was intended to be, a place for me to post trading ideas and thoughts I had that I felt could be of interest to the readers.

This topic is where I will post links to various economic articles, for those that find them interesting. If you want to read (or post) articles about the unfolding debaucle, this is the place to look. If you are a short-term daytrader or swing trader and have zero interest in the economy, you can now just read Jim's Thoughts and not have to wade through this type of dicussion.

At best I think this material only has a direct effect on longer-term plays, the bigger swings that make up the major legs of the bull and bear markets. I follow this stuff for that reason, and because I want to have a handle on things, if that is even possible in this era of lies and deception, so that I can make decisions on life issues.

For example, as I posted in the commentary on the website and discussed with many people well in advance, this was something that wasn't hard to see coming. I saw many people who told me as late as Oct 2007 that 'this thing is about to 'break out' to the upside, and that Dow 20,000, and then much higher, was 'just around the corner' '. The type of articles I am posting discuss the type of information that helped me form the viewpoints I had back then.

If this is far from over, as I suspect, we are in a similar postion now as back then. With the rally that is unfolding right now the talk is the bull is back, the bottom is in, and we are set. I'm not so sure. So, I try to weigh up all the factors and not get too sucked in by the hype. To that end, I will post things here I find interesting.

Well, what can I say. Maybe the forum is not private enough and we should only have two members at a time in it.
As far as all the other bullcrap, I am currently fighting really hard not to lose my mind (and I do wonder if losing my mind might actually be a good thing) when I think about what goes on.
We have come to a point where the only answer is a real 'French Revolution' by the people.
As far as I know in the old days those corrupt f!#ckers would have been carted off and had their heads chopped off a long time ago.

I agree. I not only don't know why the whole world isn't exploding, I don't know how it can even be holding together. I see all the other shoes to drop (like commercial mortgages), and I can't see how this won't be unfolding for another decade, like Japan. I can't believe the nonsensical plans they are coming up with, and the power transfers to various agencies that shouldn't have that kind of power, like the Fed issuing debt, or a combined Fed/Treasury able to close down businesses they see as a potential systemic risk, even if they don't have federally insured deposits (they are working on this one right now). This Nazi crap makes me want to puke. Talk about potential to abuse power. Hey, I believe 100% there should be nothing allowed to be 'too big to fail', and that measures should be in place to limit anything from getting that large, but for the government to be able to come into any business, say you pose too much risk, we are taking you over today and selling off the pieces, that kind of Gestapo s#@t is too much to handle.

Somehow, some way, I guess we have to just let it all slide, forget about what is happening, and not get upset or frustrated, and believe it will all be alright. Forget what we see, how unjust it is, and just not let it bother us when we see them in their endless quest to pump up asset prices with our tax dollars, even if the assets are currently overvalued. Isn't it ironic, though, that if we buy an asset now for appreciation, and we get it, we 'make money', essentially the exact amount it went up, our 'profit', will be about the same as the cost in taxpayer dollars to pump it up. In other words, they were so kind as to charge us the same amount that the asset went up, netting us zero overall. But we feel better, and everything goes back to working well, in a world where we must have inflation, or we are all doomed. I just read an article about how inflation is mandatory for our system, without it, the entire system fails. And now we see that in real time...

Hmmm, BAC to raise investment bankers salary by 70%. Is that all? I think it should go up like a few thousand percent. I know base salary is a pittance for these guys compared to the billions in bonuses, but given the times we are in, and the heat compensation is getting, why rub salt in the wound and announce such an increase in here? It seems idiotic. Market sure doesn't like it, it started to dump the second that came out.

But you know that has to be the scalp buy of the century, as the buyers just loved the chance there, and came right in, and ran it right back up plus more, in minutes. Unreal, but 100% typical for this market. Clearest scalp buy I've seen since the bottom.

This article is interesting:

http://www.investorsinsight.com/blogs/thoughts_from_the_frontline/archive/2009/03/28/why-bother-with-bonds.aspx

What he points out about bonds vs. stocks is quite curious. Also note the assessment on P/E's, which fits with what I think. Another cool point is the note on how the mass media uses 'seasonally adjusted' when that number is the better one to advance their agenda, and the non-seasonally adjusted number when that suits them. Very telling. And speaking of mass media, the most interesting point of all. To me this is a bombshell.

Did you hear that last week they suspended mark-to-market accounting? Neither did I. Steve Forbes said if they do that (and change the uptick rule, which Barney Frank said will be done by next month) the market will go up 2,000 points essentially instantly, and I agree 100%. In fact, I suspected the market may do most of that in one day. Here's why, in my interpretation. The banks basically can mark the prices of their bad assets up to totally unrealistic levels, which then shows them as not only well-capitalized, but over-capitalized. They can not only be turning a profit, but a monster profit, not having to write anything off in the coming quarters. That's not a $1 or $2 stock to me, that's a $50 or $100 stock. And I think they soon would be. Even Bail 'em out Benny is against suspending mark-to-market. To me, it would be a much bigger mistake than what got us here in the first place. And it has been talked about day in and day out in the mass media.

So, last week they suspended it, and the banks didn't jump up, the market didn't explode, and I haven't seen anything about it on TV or on any of the websites I follow until this little quip here. The biggest thing for the manipulation of this market that I could ever imagine, the biggest thing for the banks, and the global economic situation, and it is basically completely unreported?

Is this report correct? I went to the FASB site and did find the proposal, and the effective date of Mar 15, but it is open for comments until April 1. I couldn't find anything about it being passed already, or rushed through before the full board approval. But, the point of all this is why didn't the market jump to Dow 10K in just under 30 seconds? Why isn't BAC, C, WFC, JPM et al not trading at $50 to $100 a share? What is wrong with this picture?

If anyone has more info on this, please post it. If any accountants out there can clarify any of this, let us know. The one thing that I thought could explode this market in a most irrational way, and do more damage than anything out there I could fathom appears to have unfolded, and nothing happened???

Now this article, dated today, twice mentions the upcoming comments Congress will hear on mark-to-market.

http://www.marketwatch.com/news/story/US-stock-rally-faces-jobs/story.aspx?guid=%7BF1D01BF9%2D1416%2D424F%2D82F4%2D7CFAD38BCBD2%7D

This is the only thing that I read about it. So it is has not been changed unless they did something behind closed door and are waiting for it to leak out which would not be a surprise. All the bank chiefs met with the prez on Friday. Wonder what that was about???
http://www.huffingtonpost.com/2009/03/26/new-rule-would-allow-bank_n_179489.html

Yes, it appears it hasn't been changed yet. Hence, the lack of the 2,000 point intraday pop I'd expect as the banks go from fantasy to Sci-Fi level pure fiction and extreme fantasy, and people buy it like new cars being offered for $10. I've never seen any inaccuracies in a Mauldin article, so that's odd (but my skill level in the matters he covers is not such that I'd necessarily see them all, either).

New bull?

http://www.marketwatch.com/news/story/Sentiment-trends-not-encouraging/story.aspx?guid=%7BD9282159%2D815B%2D46CA%2DA59F%2D92703EA22F35%7D

Here is an interesting article about AIG:
http://www.agorafinancial.com/afrude/

I forgot, I do have another hero to go with Ron Paul and David Stockman, and that's Nigel Farage. Here's his latest:

http://www.zerohedge.com/news/2013-04-17/farage-unleashed-you-are-common-criminals