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Blocking Stimulus For Politcal Gains?

Todays post from Barry Ritholtz refers to an accusation that further stimulus is being put off until after the November elections; something I strongly believe in, and eerily similar to my previous post on 1931 European Depression Redux where Austrian officials are putting off their 2011 budget until after their Fall elections [an unconstitutional act by the way]. Will we see more of this posturing for political gains across the globe? Me thinks so. I look forward to your thoughts and comments below. For your StockBuz consideration:

“Now I’m looking at the political system turning itself into a paralyzed beast. A lost decade now looms as a much bigger risk. The Fed’s…

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After a recent trip to one of our local Goodwill Stores(btw great place to find investment type books, especially after the market is going through, or just coming out of a bear market), I came away with a copy of "A Journey Through Economic Time, A Firsthand View" by John Kenneth Galbraith. I was truly excited to find and purchase a book by Galbraith, the late renowned and respected economist. Furthermore I was excited that it appeared to be an economic history of the twentieth century with some commentary in a format that was easy to understand.

The book starts with the early part of the twentieth century. Galbraith discusses World War I and the aftermath. He discusses the rise of John Meynard Keynes as an economist and the unintended consequences of German war reparations. Galbraith laments the fact that economic decisions are often made by the stupid or uninformed politicians. Galbraith continues by citing causes for the Great Depression and The…

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1931 European Depression Redux?

Tight-lipped finance ministers from Austria, Germany, Switzerland, Liechtenstein and Luxembourg left a round table meeting in Vienna on Thursday without any statement to the public. According to Austrian Börse-Express talks centered around government budgets and bank secrecy (that's no pun.)
Austrian finance minister Josef Pröll had said earlier that Austria will not move on a loosening of bank secrecy as long as UK based trusts are able to invest anonymously and wants to shift this discussion onto the OECD level.
Conservative Pröll, currently breaching Austria's constitution with the nod of social democrat chancellor Werner Faymann, because both ruling parties want to delay the 2011 budget until after two provincial elections in October, may have other worries about the Austrian banking sector on his mind.
Recent data from Austria's central bank confirms that Austria's banks,…

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Admin

Confessions Of A Uploading Dummy

Ah, the 70's. Everyone had Saturday Night [Disco] Fever, bad polyester shirts with ruffles [!],

Happy Days, Kojak with a lolli pop, The Waltons, 10% unemployment, block-long lines at the gas pump, a peanut-picker President and ah yes, computers began invading the office workspace. I remember it well as I begrudingly sat through computer training at Percy Wilson Mortgage downtown; the entire time chuckling under my breath with my coworkers that this computer b.s. would never work. Something called an "internet" would span the world and allow people on every continent to communicate within seconds without a wire? Surely someone was on drugs. Even if this *thing* worked, never, ever would we [in the mortgage business] be able to verify someone's income/assets without the mountains of paperwork that are involved. Folders stuffed 3" thick with…

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Lately I've heard a lot of people sounding off about the possibility of a double dip recession. Among the most cited statisitics is present GDP growth slowing compared to the end of last year. Yet I had not seen one ounce of empirical data on GDP growth coming out of the most recent recessions regardless whether it proved or disproved slowed growth as an indicator of a double dip recession. Below you will find a chart of the last three recessions including the most recent. The chart was taken from the St. Louis Federal Reserve website.

As you can see it is common for growth to slow, even signifcantly, after the accelerated growth from the bottom of the trough of a recession.

While I will not argue that there are headwinds…

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Admin

Given the price action in the market lately, there's been much discussion here on what constitutes a pullback and what constitutes a change in direction or trend. The suggestions have ranged from three weekly or monthly lower closes, a close below a certain moving average, various moving average crosses and more but in all honesty I don't think there's *one* holy grail. One indicator that satisfies all investors across all asset classes and we all have different loss tolerances and for that matter, different viewpoints or perspectives on the world economy and it's ongoing recovery.

This discussion however, brought to mind the following [somewhat lengthy] excerpt from the novel on Jesse Livermore, Reminiscences of a Stock Operator, written in 1923 by Edwin Lefevre [available in…

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Admin

A Correction? Another headfake? My .02

Should I buy the dip? Should I blame it on lunar movements or is it another headfake? Will the Bears be punished once more and we head higher as we have in the past? Well for what its worth [which is zilch] I think we're in for a larger correction. Obviously I'm not a Economist or a Hedge Fund Manager [I wish] but I believe there are number of reasons we'll see *sell in May and go away* come to fruition this year.

  • First and foremost, spiralling Eurozone debt and the additional debt they'll have to issue to bring themselves out of the immediate crisis. The PIIGS are not dead and I believe it will take months for…

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Why am I here?

Over the past week or so, I have asked myself that question several times. Why am I here(at StockBuz)? The recent negativity and personal confrontations were making me doubt that there was an upside to staying a member of StockBuz. But something I couldn't quite put my finger on made me stay the course.

Then several days ago, Runnin' with the Bulls shows up in chat. He has been busy with college courses and hadn't been watching equities or the market in general very much. He posed a question about the selloff in US Steel (X). Within minutes he had an on the spot fundamental and technical analysis of the stock. At stockpickr, if he had asked the same thing, he would have had to wait hours or days for both viewpoints if he had gotten them at all. With Twitter, well, I don't think I need to explain that one any further.

Last night, Papu shows up for awhile. Questions are posed to him reference gold and the Indian(as in India) wedding season. He explains that…

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