Okay, so here it is … I was wrong about U.S. politicians rising to the arc of history. The “super committee” turned out to be somewhat less than super. In fact, I would call them cowardly. Nationally, all the polls show a majority of Americans want a deficit deal that includes raising taxes on the wealthy, and by no small margin. In one recent poll, 81% favored a deficit solution that included higher taxes on wealthy Americans. In that poll, 66% of Republicans favored raising taxes on millionaires and above. So, if both Democrat and Republican citizens want this, why not get it done The answer Because it is not about what America wants, it is about holding their respective seats in Congress. Their districts or their states might not favor raising taxes, so they continue to hold the ideological line. Sad, but this is how our democracy currently works – All for one and one for one. Oh, and for the record, I was also wrong about the DIJA finding a new trading range between 11,800 and 12,400. Thank you super dodos …
Below is a quote I extracted from an interesting article. Although the article was good, the excerpt is exceptional for its ability to take you right to the essence of a thing, in this case the visceral effects of trading …
This selling is just the same old fear with a slightly different cast of characters. What, exactly, does a panic sell-off look like Let’s just say you’ll know it when you feel it in the pit of your stomach.
The clear implication is that what is going on now in the market is just more of the same, and a major panic sale is not imminent because the “super dodos” did not reach an agreement. It is also true, as I remember the gut feelings back in September/October 2008 when the market melted right in front of our eyes. Oh, and some more good news for those who would actually like to see the big banks brought down a peg or two, or three, or four, or more …
Under new global capital rules, banks have to raise higher levels of equity to absorb potential losses from their risky assets. That can be achieved by either issuing stock and diluting current shareholders, or by reducing those risky assets, or a combination of the two. Either way, the chance of big returns (and big losses) is reduced … Last Thursday, UBS said it will slash risky assets by almost half and cut its return-on-equity target to 12 to 17 percent for 2013 from its earlier 15 to 20 percent range in the face of tough new capital rules and turbulent markets.
Now, all they have to do is quit whining, do what they are told, and we can all move on knowing those gambling idiots cannot capsize the global financial system so easily again.
The Conference Board’s index of leading economic indicators surged 0.9 percent last month. It was the index’s best showing since February. It was far faster than the increases of 0.1 percent in September and 0.3 percent in August. The October figure marked the sixth straight increase.
Well, it is Thanksgiving week, after all, so throwing a bone of good news out to us paupers who live for the scraps of good news is, well, charitable, compassionate, and stabilizing. Of the three descriptors, the last is the most important. Now, if only Europe can keep from hanging itself accidentally …
Trade in the day – Invest in your life …
