investmentwatchblog--2020-08-21--MEDICAL POLICE STATE: Melbourne authorities turn to drones to enforce coronavirus restrictions

( Natural News ) Officials in Melbourne , Australia , will turn to technology to enforce Wuhan coronavirus ( COVID-19 ) restrictions .
City authorities will now be using drones to catch people not wearing masks outdoors and scan for vehicles in violation of curfew by being more than 5 km ( 3.1 miles ) from home .
“ High powered drones will be used to find people not wearing masks and cars too far from home , ” reported local television station 7News Melbourne news report .
According to the report , the drones can be flown up to @ @ @ @ @ @ @ miles ) and can produce clear images that can show a vehicle ’ s license plate number from 500 meters ( 1,640 feet ) away .
Melbourne ’ s drones are just the latest measure employed in what has become one of the most draconian coronavirus lockdowns in the developed world .
They follow the declaration of a “ state of disaster ” in the state of Victoria in response to a new surge in COVID-19 cases .
Will the drones go away once the pandemic is over ?
In light of the @ @ @ @ @ @ @ have raised concerns that there is no sunset clause for the use of the drones and that authorities could continue to use them to spy on citizens even after the pandemic ends .
“ Often in these moments of crisis we will introduce new forms of technology , new forms of surveillance , and they ’ re very difficult to dismantle at the end of the crisis , ” said Lizzy O ’ Shea , a lawyer and chair of Digital Right Watch , during an interview with radio station 3AW .
“ @ @ @ @ @ @ @ police push to a higher watermark of surveillance that they ’ ll be prepared to return to levels of pre-pandemic.
” Even before the drones , Australian authorities have instituted a wide range of measures , all in the name of slowing the spread of the disease .
Australian police have been given the power to enter people ’ s homes without a warrant and perform quarantine spot checks .
Meanwhile , drivers now have to show their papers at highway checkpoints just to get to work .
On top of all this @ @ @ @ @ @ @ Force troops to patrol parks and other outdoor areas .
All of these are to enforce rules that levy massive fines against people caught outside without wearing a mask or violating the 8:00 p.m. to 5:00 a.m. curfew .
The increased enforcement has already led to several incidents .
This includes several instances of police physically tackling people for not following the mask rules .
These include one incident where a male police officer placed a woman in a chokehold .
Minor infractions are also dealt with heavily .
In one instance , @ @ @ @ @ @ @ their child to play further than 5 km from their home .
In addition , they seized the computers of two men who were planning an anti-lockdown protest .
The draconian measures in Victoria , of which Melbourne is the capital of , come after the state was hit with a surge of coronavirus cases .
The state saw an increase of 2,587 cases in the first week of August alone .
On Wednesday , August 19 , health officials announced that the state had reported an additional 1,861 cases for the past @ @ @ @ @ @ @ prior to that but still high compared to previous months .
When the state was under lockdown in May and June , its caseload had remained quite low .
It was only in July that cases started rising .
( Related : Boon or bane ?
Australia ’ s response to coronavirus means lower caseloads , but a year-long lockdown . )
Now , with infection rates reaching unprecedented numbers in the state , authorities are looking at tightening restrictions to get them back down again .
People , however , are concerned @ @ @ @ @ @ @ “ People have a right to be able to go about their lives without constantly being watched by police , ” O ’ Shea said .
“ The use of drones by police is something that you ’ d expect , I think , somewhere like China and Russia.
” Follow Pandemic.news for more updates on the fight against the coronavirus around the world .

by: Franz Walker
(Natural News) Officials in Melbourne, Australia, will turn to technology to enforce Wuhan coronavirus (COVID-19) restrictions. City authorities will now be using drones to catch people not wearing masks outdoors and scan for vehicles in violation of curfew by being more than 5 km (3.1 miles) from home.
“High powered drones will be used to find people not wearing masks and cars too far from home,” reported local television station 7News Melbourne news report. According to the report, the drones can be flown up to a distance of 7 km (4.3 miles) and can produce clear images that can show a vehicle’s license plate number from 500 meters (1,640 feet) away.
Melbourne’s drones are just the latest measure employed in what has become one of the most draconian coronavirus lockdowns in the developed world. They follow the declaration of a “state of disaster” in the state of Victoria in response to a new surge in COVID-19 cases.
Will the drones go away once the pandemic is over?
In light of the drones’ imminent deployment, privacy advocates have raised concerns that there is no sunset clause for the use of the drones and that authorities could continue to use them to spy on citizens even after the pandemic ends.
“Often in these moments of crisis we will introduce new forms of technology, new forms of surveillance, and they’re very difficult to dismantle at the end of the crisis,” said Lizzy O’Shea, a lawyer and chair of Digital Right Watch, during an interview with radio station 3AW.
“I’m not convinced that once police push to a higher watermark of surveillance that they’ll be prepared to return to levels of pre-pandemic.”
Even before the drones, Australian authorities have instituted a wide range of measures, all in the name of slowing the spread of the disease.
Australian police have been given the power to enter people’s homes without a warrant and perform quarantine spot checks.
Meanwhile, drivers now have to show their papers at highway checkpoints just to get to work.
On top of all this, authorities have also tapped Australian Defence Force troops to patrol parks and other outdoor areas.
All of these are to enforce rules that levy massive fines against people caught outside without wearing a mask or violating the 8:00 p.m. to 5:00 a.m. curfew.
The increased enforcement has already led to several incidents. This includes several instances of police physically tackling people for not following the mask rules. These include one incident where a male police officer placed a woman in a chokehold.
Minor infractions are also dealt with heavily. In one instance, police fined a couple for simply allowing their child to play further than 5 km from their home. In addition, they seized the computers of two men who were planning an anti-lockdown protest.
We are primarily funded by readers. Please subscribe and donate to support us!
Victoria state sees surge of coronavirus cases
The draconian measures in Victoria, of which Melbourne is the capital of, come after the state was hit with a surge of coronavirus cases. The state saw an increase of 2,587 cases in the first week of August alone.
On Wednesday, August 19, health officials announced that the state had reported an additional 1,861 cases for the past week – a decrease from the week prior to that but still high compared to previous months.
When the state was under lockdown in May and June, its caseload had remained quite low. It was only in July that cases started rising. (Related: Boon or bane? Australia’s response to coronavirus means lower caseloads, but a year-long lockdown.)
Now, with infection rates reaching unprecedented numbers in the state, authorities are looking at tightening restrictions to get them back down again. People, however, are concerned that it comes with a cost.
“People have a right to be able to go about their lives without constantly being watched by police,” O’Shea said. “The use of drones by police is something that you’d expect, I think, somewhere like China and Russia.”
Follow Pandemic.news for more updates on the fight against the coronavirus around the world.
Sources include:
Summit.news 1
3AW.com.au
Summit.news 2
Summit.news 3
Health.gov.au
TheGuardian.com


investmentwatchblog--2020-08-21--Twitter allows Leftists to spread conspiracy theory lies about mailboxes while conservatives aren’t

Twitter allows Leftists to spread conspiracy theory lies about mailboxes while conservatives aren’t even allowed to have a voice

( Natural News ) As of this writing , Twitter has still not responded to the viral spread of a Democrat-led conspiracy theory and bald-faced lie alleging that President Donald Trump is locking up and removing U.S .
Postal Service ( USPS ) mailboxes to prevent people from mailing in their ballots for Joe Biden and Kamala Harris .
But when it comes to tweets from the president about the very real threat of mail-in ballot voter fraud , Twitter was right on it in selectively censoring him with a “ fact-check.
” Multiple prominent figures , including former NBA @ @ @ @ @ @ @ continue to spread lies and misinformation on Twitter about mailbox-gate , replete with old photos of locked-up mailboxes that have nothing to do with anything currently going on in America .
And yet Twitter has thus far done absolutely nothing to stop this blatant interference with the election , once again revealing its liberal bias .
“ Burbank , California : In your entire life have you ever seen a LOCKED mailbox at the USPS ?
Now you have , ” Chapman tweeted alongside a photo of a USPS mailbox from 2016 that @ @ @ @ @ @ @ of vandalism .
“ A disgrace and immediate threat to American democracy .
Shame on them .
Shame on the GOP .
Where are you @ senatemajldr ?
” In another similar erroneous tweet containing a photo of a locked-up mailbox , a leftist Twitter user captioned it as having been recently captured in Washington , D.C. , the implication being that Trump or someone in his administration personally booted it up to prevent people from dropping in their ballots .
The truth , however , is that the image came from Seattle @ @ @ @ @ @ @ up due to ongoing riots by Black Lives Matter ( BLM ) and Antifa terrorists .
“ If you ’ re going to conspiracy theory , make sure you ’ re getting your cities right , ” joked one user in response to this ridiculous misinformation tweet , which is still being spread on Twitter without any fact-checks or other clarifications about its falseness .
Why won ’ t Republicans strip Twitter of its Section 230 immunity protections ?
If Twitter is genuinely concerned about election interference in the leadup to voting day @ @ @ @ @ @ @ company allowing such lies to persist ?
This mailbox conspiracy theory is both ridiculous and easily debunked , and truly embodies the low road that Democrats like Michelle Obama claim the Left never takes , which is clearly also a lie .
Over the past several months , Twitter has censored President Trump , Breitbart News , Fox News , Donald Trump Jr. , and Brazilian President Jair Bolsonaro , among others .
These conservative-leaning individuals and entities have repeatedly been told that the information they share is “ questionable ” or “ @ @ @ @ @ @ @ censored to avoid spreading “ confusion ” and “ misinformation.
” But when it comes to Democrats spreading around a baseless conspiracy theory about Trump sending in tractor trailers to rip up blue mailboxes , which is what Sleepy Joe Biden claimed in a recent misinformation tweet that is also still up on his page , Twitter looks away and pretends like nothing is happening .
Thus far , Twitter has “ taken no action against a demonstrably false , conspiracy theory-fueled panic about USPS mailboxes being locked , a claim that could @ @ @ @ @ @ @ an election year , ” writes Allum Bokhari for Breitbart News .
All of this is on congressional Republicans , by the way , which still have not taken action against Big Tech companies like Twitter to strip them of the Section 230 immunity protections they unjustly have as part of the outdated Communications Decency Act .
Republicans have had years to fix this problem , and yet have continued to only talk about it while doing absolutely nothing .
Now , America is having to eat the rotten fruit of Silicon Valley @ @ @ @ @ @ @ one of the most critical elections in our nation ’ s history .
For more related news about Twitter censorship , visit Censorship.news .

by: Ethan Huff
(Natural News) As of this writing, Twitter has still not responded to the viral spread of a Democrat-led conspiracy theory and bald-faced lie alleging that President Donald Trump is locking up and removing U.S. Postal Service (USPS) mailboxes to prevent people from mailing in their ballots for Joe Biden and Kamala Harris. But when it comes to tweets from the president about the very real threat of mail-in ballot voter fraud, Twitter was right on it in selectively censoring him with a “fact-check.”
Multiple prominent figures, including former NBA star and vocal leftist Rex Chapman, continue to spread lies and misinformation on Twitter about mailbox-gate, replete with old photos of locked-up mailboxes that have nothing to do with anything currently going on in America. And yet Twitter has thus far done absolutely nothing to stop this blatant interference with the election, once again revealing its liberal bias.
“Burbank, California: In your entire life have you ever seen a LOCKED mailbox at the USPS? Now you have,” Chapman tweeted alongside a photo of a USPS mailbox from 2016 that was sealed up due to repeated bouts of vandalism. “A disgrace and immediate threat to American democracy. Shame on them. Shame on the GOP. Where are you @senatemajldr?”
In another similar erroneous tweet containing a photo of a locked-up mailbox, a leftist Twitter user captioned it as having been recently captured in Washington, D.C., the implication being that Trump or someone in his administration personally booted it up to prevent people from dropping in their ballots. The truth, however, is that the image came from Seattle where the mailbox had to be locked up due to ongoing riots by Black Lives Matter (BLM) and Antifa terrorists.
“If you’re going to conspiracy theory, make sure you’re getting your cities right,” joked one user in response to this ridiculous misinformation tweet, which is still being spread on Twitter without any fact-checks or other clarifications about its falseness.
Why won’t Republicans strip Twitter of its Section 230 immunity protections?
If Twitter is genuinely concerned about election interference in the leadup to voting day this fall, then why is the company allowing such lies to persist? This mailbox conspiracy theory is both ridiculous and easily debunked, and truly embodies the low road that Democrats like Michelle Obama claim the Left never takes, which is clearly also a lie.
Over the past several months, Twitter has censored President Trump, Breitbart News, Fox News, Donald Trump Jr., and Brazilian President Jair Bolsonaro, among others. These conservative-leaning individuals and entities have repeatedly been told that the information they share is “questionable” or “false,” and thus must be censored to avoid spreading “confusion” and “misinformation.”
But when it comes to Democrats spreading around a baseless conspiracy theory about Trump sending in tractor trailers to rip up blue mailboxes, which is what Sleepy Joe Biden claimed in a recent misinformation tweet that is also still up on his page, Twitter looks away and pretends like nothing is happening.
We are primarily funded by readers. Please subscribe and donate to support us!
Thus far, Twitter has “taken no action against a demonstrably false, conspiracy theory-fueled panic about USPS mailboxes being locked, a claim that could cause panic and change voter behavior during an election year,” writes Allum Bokhari for Breitbart News.
All of this is on congressional Republicans, by the way, which still have not taken action against Big Tech companies like Twitter to strip them of the Section 230 immunity protections they unjustly have as part of the outdated Communications Decency Act.
Republicans have had years to fix this problem, and yet have continued to only talk about it while doing absolutely nothing. Now, America is having to eat the rotten fruit of Silicon Valley’s one-sided censorship as we near one of the most critical elections in our nation’s history.
For more related news about Twitter censorship, visit Censorship.news.
Sources for this article include:
Breitbart.com
NaturalNews.com
NaturalNews.com


investmentwatchblog--2020-08-21--We Have an Economic Eight-Body Problem

We Have an Economic Eight-Body Problem

If you have three large objects that have gravitational impact on each other , you can determine where they have been in the past .
However , you can not predict where they will be in the future .
At least , not without great difficulty .
In physics , this is called the three-body problem .
In economics , we are well beyond the three-body problem .
I think it is more like an eight-body problem .
See if you agree : Body No .
1 : The service economy has imploded .
We don ’ t know when @ @ @ @ @ @ @ not going to argue the correctness of whether we should lock down or open up .
I am simply talking about what is .
And it appears that much of the economy is going to be locked down for some time .
There is simply no telling when that part of the economy will normalize .
Body No .
2 : We have seen the largest central bank intervention , not just in the US but in many parts of the world , ever in history .
Clearly that is keeping markets up @ @ @ @ @ @ @ stimulus in an unprecedented manner .
In essence , the government borrowed money to give people the money that they would ’ ve earned in their jobs .
Interestingly , not all of it was spent .
We have seen a record amount of disposable income being added to savings .
The US government is in a food fight over the next round of stimulus .
Some amount will likely be determined .
That is a major economic gravitational body , and we have no idea what it will look like this year @ @ @ @ @ @ @ .
Body No .
3 : Federal Reserve policy and , to some extent , government policy has short-circuited both Schumpeter ’ s creative destruction cycle and moral hazard .
Companies with the lowest-rated junk bonds are refinancing their debt at lower rates .
In some cases , that means we are keeping zombie companies afloat .
Body No .
4 : Global trade is beginning to implode .
This is a global depression and it affects everyone .
I was writing 20 years ago that the biggest threat to prosperity in the @ @ @ @ @ @ @ I have made it clear that China is not a good actor , and we need to review our policies and our reliance upon them .
But tariffs are just a bad idea , whether it ’ s China or Europe or whatever country .
Body No .
5 : On average , six companies with assets larger than $ 50 million have filed for bankruptcy every week since April .
This is going to increase and become a tsunami .
Small local companies don ’ t even bother filing because it ’ @ @ @ @ @ @ @ them represents jobs .
This is the hard one… Body No .
6 : The working class will be last to see the recovery .
Most of the jobs that are being lost are by the least-well-off in our society .
We ’ re talking about tens of millions of workers who can ’ t work from home .
Those with children have to figure out how to take care of them in case schools don ’ t open… or if they don ’ t want to send them back .
Unemployment insurance @ @ @ @ @ @ @ the federal money runs out .
And employment is not going to bounce back miraculously in Q1 .
It is going to be a long , slow climb .
Now for some good news… Body No .
7 : Entrepreneurs will re-emerge , and new ones will seize this moment to shine .
All those businesses going bankrupt or out of business ?
They are run by entrepreneurs who have the entrepreneurial bug .
It is part of their DNA .
I was talking to a Dallas restauranteur who is “ down ” @ @ @ @ @ @ @ his cash and hoping for another round of PPP .
He will breathe easier when he can get his normally booming restaurants up to 50 % occupancy .
Depressed ?
Not at all .
He believes this will all eventually normalize , and he will have the greatest opportunity he has ever had .
He can see 10 restaurants in his future .
This is the kind of vision that accelerates recoveries .
He and hundreds of thousands of other entrepreneurs throughout the country and the world look for opportunity .
It ’ @ @ @ @ @ @ @ can ’ t help themselves .
It will take time , and they have to figure out where the capital will come from .
But I am convinced that entrepreneurs will be the ones to dig us out from this , not governments .
Body No .
8 : We are in the midst of The Greatest Transformation in history .
Elon Musk just launched and landed a massive rocket as a test .
That is just a very visible example of tens of thousands of new technological revolutions happening all around us @ @ @ @ @ @ @ the world .
I can ’ t even begin to describe what is happening in the biotechnology and aging space .
Artificial intelligence , robotics , self-driving cars , incredible advances in agriculture , shipping , quantum computers… you name it .
The list is just too long .
And it ’ s growing .
Every one of the “ bodies ” I mentioned will have a significant recovery impact .
We don ’ t know how they will interact .
In the meantime , take heart .
Yes , there are a @ @ @ @ @ @ @ , and it ’ s going to be lumpy and bumpy .
But we have a lot to look forward to along the way .
Get my timely take as that happens here : twitter.com/johnfmauldin .
I predict an unprecedented crisis that will lead to the biggest wipeout of wealth in history .
And most investors are completely unaware of the pressure building right now .
Learn more here .

by John Mauldin
If you have three large objects that have gravitational impact on each other, you can determine where they have been in the past.
However, you cannot predict where they will be in the future. At least, not without great difficulty.
In physics, this is called the three-body problem.
In economics, we are well beyond the three-body problem. I think it is more like an eight-body problem. See if you agree:
Body No. 1: The service economy has imploded. We don’t know when it is coming back. I am not going to argue the correctness of whether we should lock down or open up. I am simply talking about what is. And it appears that much of the economy is going to be locked down for some time. There is simply no telling when that part of the economy will normalize.
Body No. 2: We have seen the largest central bank intervention, not just in the US but in many parts of the world, ever in history. Clearly that is keeping markets up. Furthermore, governments are providing fiscal stimulus in an unprecedented manner. In essence, the government borrowed money to give people the money that they would’ve earned in their jobs. Interestingly, not all of it was spent. We have seen a record amount of disposable income being added to savings.
The US government is in a food fight over the next round of stimulus. Some amount will likely be determined. That is a major economic gravitational body, and we have no idea what it will look like this year, let alone next year and 2022.
Body No. 3: Federal Reserve policy and, to some extent, government policy has short-circuited both Schumpeter’s creative destruction cycle and moral hazard. Companies with the lowest-rated junk bonds are refinancing their debt at lower rates. In some cases, that means we are keeping zombie companies afloat.
Body No. 4: Global trade is beginning to implode. This is a global depression and it affects everyone. I was writing 20 years ago that the biggest threat to prosperity in the future would be protectionism and tariffs. I have made it clear that China is not a good actor, and we need to review our policies and our reliance upon them. But tariffs are just a bad idea, whether it’s China or Europe or whatever country.
Body No. 5: On average, six companies with assets larger than $50 million have filed for bankruptcy every week since April. This is going to increase and become a tsunami. Small local companies don’t even bother filing because it’s too expensive. Every one of them represents jobs.
This is the hard one…
We are primarily funded by readers. Please subscribe and donate to support us!
Body No. 6: The working class will be last to see the recovery. Most of the jobs that are being lost are by the least-well-off in our society. We’re talking about tens of millions of workers who can’t work from home. Those with children have to figure out how to take care of them in case schools don’t open… or if they don’t want to send them back. Unemployment insurance won’t cover the bills when the federal money runs out. And employment is not going to bounce back miraculously in Q1. It is going to be a long, slow climb.
Now for some good news…
Body No. 7: Entrepreneurs will re-emerge, and new ones will seize this moment to shine. All those businesses going bankrupt or out of business? They are run by entrepreneurs who have the entrepreneurial bug. It is part of their DNA.
I was talking to a Dallas restauranteur who is “down” to three restaurants. He is stretching his cash and hoping for another round of PPP. He will breathe easier when he can get his normally booming restaurants up to 50% occupancy.
Depressed? Not at all. He believes this will all eventually normalize, and he will have the greatest opportunity he has ever had. He can see 10 restaurants in his future. This is the kind of vision that accelerates recoveries.
He and hundreds of thousands of other entrepreneurs throughout the country and the world look for opportunity. It’s just what they do. They can’t help themselves.
It will take time, and they have to figure out where the capital will come from. But I am convinced that entrepreneurs will be the ones to dig us out from this, not governments.
Body No. 8: We are in the midst of The Greatest Transformation in history. Elon Musk just launched and landed a massive rocket as a test. That is just a very visible example of tens of thousands of new technological revolutions happening all around us.
These disruptive technologies will truly change the world. I can’t even begin to describe what is happening in the biotechnology and aging space. Artificial intelligence, robotics, self-driving cars, incredible advances in agriculture, shipping, quantum computers… you name it. The list is just too long. And it’s growing.
Every one of the “bodies” I mentioned will have a significant recovery impact. We don’t know how they will interact.
In the meantime, take heart. Yes, there are a lot of miles left on this road, and it’s going to be lumpy and bumpy. But we have a lot to look forward to along the way. Get my timely take as that happens here: twitter.com/johnfmauldin.
I predict an unprecedented crisis that will lead to the biggest wipeout of wealth in history. And most investors are completely unaware of the pressure building right now. Learn more here.


Stock Split Rationale

Just wanted to clarify stock splits with people that have confusion about its “ real ” value .
When a stock splits , essentially nothing happens on the market cap side .
It ’ s taking what you have and dividing it up into smaller pieces , but the net value does not change .
I ’ m sure you all understand this .
So , the arguments about Apple and Tesla stock splits having no effect on the value of the company is effectively true .
But here ’ s what some of you that think this is missing @ @ @ @ @ @ @ concerned about market caps .
We care about price !
The dollar value per share is what matters .
Just think about the last time you purchased a stock and went to look at its market cap , eps , etc .
I can safely assume most people in here are not about that .
If you see it looks cheap , it ’ s a buy .
THAT , is the real value of stock splits .
I get the analogy of breaking a pencil in half still yields only one pencil @ @ @ @ @ @ @ about cutting up a pizza in 100 slices is the same as cutting it into 8 .
But is it really ?
If it ’ s cut in 100 pieces , just about anyone has the stomach to eat it , but when it ’ s cut in 8 , there are significantly fewer people that can or want to eat the slices because of its size .
Point is , there stock splits broadens the market and makes the stock look much more attractive , and in this market , the “ @ @ @ @ @ @ @ actual value .
Take it this way , if Apple went for a 100:1 split , and now it ’ s at $ 4 a piece .
Would you pay $ 5 to get a share ?
But you ’ re paying a premium ?
Yeah .
You would , because the look of it is too appealing and psychology we are made to believe that if anything , it can double .
But would you pay $ 500 to get a share when the stock is at $ 400 ?
You see @ @ @ @ @ @ @ those that are talking about fractional shares negating the value of stock splits .
Wrong .
Fractional shares are significantly less attractive .
Take for example , Berkshire Hathaway or any high cost ticker .
Would you buy a fractional share and own 0.04 of a share or would you rather see a stock split and own 1 full share ?
It ’ s pretty simple , no ?
Take tesla as an example : $ 2000 .
I have $ 500 , do I want 0.25 of a share or would I @ @ @ @ @ @ @ full share .
You see… psychologically , it ’ s different .
Disclaimer : This information is only for educational purposes .
Do not make any investment decisions based on the information in this article .
Do you own due diligence or consult your financial professional before making any investment decision .

by TripleBrain
Just wanted to clarify stock splits with people that have confusion about its “real” value.
When a stock splits, essentially nothing happens on the market cap side. It’s taking what you have and dividing it up into smaller pieces, but the net value does not change. I’m sure you all understand this.
So, the arguments about Apple and Tesla stock splits having no effect on the value of the company is effectively true. But here’s what some of you that think this is missing: Retail buyers like us are not concerned about market caps. We care about price! The dollar value per share is what matters.
Just think about the last time you purchased a stock and went to look at its market cap, eps, etc. I can safely assume most people in here are not about that. If you see it looks cheap, it’s a buy. THAT, is the real value of stock splits.
I get the analogy of breaking a pencil in half still yields only one pencil. I just read a retard comment about cutting up a pizza in 100 slices is the same as cutting it into 8. But is it really? If it’s cut in 100 pieces, just about anyone has the stomach to eat it, but when it’s cut in 8, there are significantly fewer people that can or want to eat the slices because of its size.
We are primarily funded by readers. Please subscribe and donate to support us!
Point is, there stock splits broadens the market and makes the stock look much more attractive, and in this market, the “look” is more important than the actual value.
Take it this way, if Apple went for a 100:1 split, and now it’s at $4 a piece. Would you pay $5 to get a share? But you’re paying a premium? Yeah. You would, because the look of it is too appealing and psychology we are made to believe that if anything, it can double. But would you pay $500 to get a share when the stock is at $400? You see the difference in scale?
And for those that are talking about fractional shares negating the value of stock splits. Wrong. Fractional shares are significantly less attractive. Take for example, Berkshire Hathaway or any high cost ticker. Would you buy a fractional share and own 0.04 of a share or would you rather see a stock split and own 1 full share? It’s pretty simple, no?
Take tesla as an example: $2000. I have $500, do I want 0.25 of a share or would I want them to split and own a full share. You see… psychologically, it’s different.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.


investmentwatchblog--2020-08-21--S&P 500 Downswing Delayed by One Day? Probably Not.

Stocks had the perfect excuse to decline based on Fed ’ s guarded tone and no yield curve control around the corner – but apart from the late Wednesday selloff , they didn ’ t .
Yesterday ’ s early U.S. session selling pressure aided by weak new unemployment claims , didn ’ t last long – and the bears didn ’ t muster enough strength to come back and try mightily again .
The chart clues favoring a daily downswing , didn ’ t usher it in , That ’ s telling in and of itself .
Such were @ @ @ @ @ @ @ trading earlier today : ( … ) The S & P 500 didn ’ t waver towards the closing bell , and neither in the overnight session .
The tendency of post-Fed moves to carry over to the next day didn ’ t work out this time , and the short-term swing structure makes it justified to expect stocks to go on with their slow grind higher as the bull market isn ’ t over by a long shot .
A few more thoughts on the short-term swing structure and the bearish overtone @ @ @ @ @ @ @ .
These offer odds for a move to continue , to reassert itself after a brief appearance – and that can happen via an intraday or late-day reversal .
That didn ’ t happen , and the selling pressure at the entry to the European session is likely to fizzle out just as the attempts during second half of yesterday ’ s trading did .
So , if stocks couldn ’ t just slide and scare out the bulls , they ’ re likely to meander sideways to higher next .
Those question @ @ @ @ @ @ @ that result in lower volume behind each print of higher stock prices , needn ’ t derail the bull at all .
Sure , it means lower credibility of higher prices , weaker internals and occasional bear raids ( are we seeing it arriving in today ’ s premarket ? )
– but unless things in the real world take a catastrophic turn , market participants are likely to be adding to their existing ( long ) positions , and despite the challenging situation on the ground ( what an understatement ! )
@ @ @ @ @ @ @ to throw in the towel until elections start to really bite .
How likely is that ?
S & P 500 in the Medium- and Short-Run I ’ ll start with the weekly perspective ( charts courtesy of stockcharts.com ) .
Such were my comments on the weekly chart almost 2 weeks ago : ( … ) Bullish price action for many recent weeks on volume that isn ’ t yet inviting increasing participation of the sellers .
This fact alone bodes well for higher stock prices in the medium-term , but the @ @ @ @ @ @ @ key resistances shortly .
It ’ s the Feb all-time highs that are drawing nearer day by day , and the upper border of the rising black trend channel .
The buyers met these resistances , yet the bears didn ’ t step in ( please see this and many more charts at my home site ) – and that fits the ongoing slow grind higher hypothesis , which has been working for weeks and months .
The caption says it all – and the bears don ’ t appear to be at @ @ @ @ @ @ @ to strike is increasingly more closing down .
High yield corporate bonds ( HYG ETF ) have turned higher yesterday , and did so on volume that didn ’ t lag behind .
That ’ s a reason for cautious optimism among the bulls – especially since it was mirrored by stabilization in investment grade corporate bonds ( LQD ETF ) .
Both leading credit market ratios – high yield corporate bonds to short-term Treasuries ( HYG : SHY ) and investment grade corporate bonds to longer-dated Treasuries ( LQD : IEI ) @ @ @ @ @ @ @ the sideways-to-bullish bias , the better the likelihood of their renewed move higher in earnest , and by extension , for stocks too .
Both stocks and the HYG : SHY ratio have kept as extended as they have lately been .
As a result , no hint is coming forward from this chart alone .
Long-dated Treasuries ( TLT ETF ) are trading with still rising yields , which sends a signal about the bond market taking the economic recovery story seriously .
The stocks to all Treasuries ratio ( $ SPX @ @ @ @ @ @ @ an uptrend – I can ’ t call it to have rolled over .
Not with a qualifier of “ just yet ” , but at all – the higher highs and higher lows are clearly visible , and a textbook definition of an uptrend .
The short-term view isn ’ t very clear , but I lean in the direction of the advance-decline line ’ s lackluster recent performance as being likely to eventually resolve with a move higher , rather than with ushering in a stock downtrend .
Summing up , @ @ @ @ @ @ @ decline more when it had quite a few good reasons to do so yesterday .
Today ’ s premarket downswing has taken it approximately to yesterday ’ s opening levels , and odds are that this dip will be bought again .
That ’ s true regardless of the weakening Russell 2000 , which however doesn ’ t appear to be under distribution – not by a long shot .
Emerging markets almost managed to close their yesterday ’ s bearish gap , and technology still continues to lead irrespective of weak semiconductors @ @ @ @ @ @ @ story remains on , and credit markets will shine light as to when stock strength would return .
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As such , it may prove wrong and be subject to change without notice .
Opinions and analyses were based on data available to authors of respective essays at the time of writing .
Although the information provided above is based on careful research and sources that are believed to be accurate , Monica Kingsley and her associates do not guarantee the accuracy or thoroughness of the data or information reported .
@ @ @ @ @ @ @ offer nor a recommendation to purchase or sell any securities .
Ms. Kingsley is not a Registered Securities Advisor .
By reading Monica Kingsley ’ s reports you fully agree that she will not be held responsible or liable for any decisions you make regarding any information provided in these reports .
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by Monica Kingsley
Stocks had the perfect excuse to decline based on Fed’s guarded tone and no yield curve control around the corner – but apart from the late Wednesday selloff, they didn’t. Yesterday’s early U.S. session selling pressure aided by weak new unemployment claims, didn’t last long – and the bears didn’t muster enough strength to come back and try mightily again.
The chart clues favoring a daily downswing, didn’t usher it in, That’s telling in and of itself.
Such were my words at the onset of European trading earlier today:
(…) The S&P 500 didn’t waver towards the closing bell, and neither in the overnight session. The tendency of post-Fed moves to carry over to the next day didn’t work out this time, and the short-term swing structure makes it justified to expect stocks to go on with their slow grind higher as the bull market isn’t over by a long shot.
A few more thoughts on the short-term swing structure and the bearish overtone mentioned in the preceding Stock Trading Alert. These offer odds for a move to continue, to reassert itself after a brief appearance – and that can happen via an intraday or late-day reversal.
That didn’t happen, and the selling pressure at the entry to the European session is likely to fizzle out just as the attempts during second half of yesterday’s trading did.
So, if stocks couldn’t just slide and scare out the bulls, they’re likely to meander sideways to higher next. Those question marks, non-confirmations and tensions all around that result in lower volume behind each print of higher stock prices, needn’t derail the bull at all.
Sure, it means lower credibility of higher prices, weaker internals and occasional bear raids (are we seeing it arriving in today’s premarket?) – but unless things in the real world take a catastrophic turn, market participants are likely to be adding to their existing (long) positions, and despite the challenging situation on the ground (what an understatement!), the bears will be under pressure to throw in the towel until elections start to really bite.
How likely is that?
S&P 500 in the Medium- and Short-Run
I’ll start with the weekly perspective (charts courtesy of stockcharts.com ).
Such were my comments on the weekly chart almost 2 weeks ago:
(…) Bullish price action for many recent weeks on volume that isn’t yet inviting increasing participation of the sellers. This fact alone bodes well for higher stock prices in the medium-term, but the buyers will meet a set of two key resistances shortly.
It’s the Feb all-time highs that are drawing nearer day by day, and the upper border of the rising black trend channel.
The buyers met these resistances, yet the bears didn’t step in (please see this and many more charts at my home site) – and that fits the ongoing slow grind higher hypothesis, which has been working for weeks and months.
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The caption says it all – and the bears don’t appear to be at their strongest exactly. Window of opportunity to strike is increasingly more closing down.
Let’s check the credit markets next.
The Credit Markets’ Point of View
High yield corporate bonds (HYG ETF) have turned higher yesterday, and did so on volume that didn’t lag behind. That’s a reason for cautious optimism among the bulls – especially since it was mirrored by stabilization in investment grade corporate bonds (LQD ETF).
Both leading credit market ratios – high yield corporate bonds to short-term Treasuries (HYG:SHY) and investment grade corporate bonds to longer-dated Treasuries (LQD:IEI) – rose yesterday The longer they keep the sideways-to-bullish bias, the better the likelihood of their renewed move higher in earnest, and by extension, for stocks too.
Both stocks and the HYG:SHY ratio have kept as extended as they have lately been. As a result, no hint is coming forward from this chart alone.
Long-dated Treasuries (TLT ETF) are trading with still rising yields, which sends a signal about the bond market taking the economic recovery story seriously.
The stocks to all Treasuries ratio ($SPX:$UST) still remains in an uptrend – I can’t call it to have rolled over. Not with a qualifier of “just yet”, but at all – the higher highs and higher lows are clearly visible, and a textbook definition of an uptrend.
S&P 500 Market Breadth
The short-term view isn’t very clear, but I lean in the direction of the advance-decline line’s lackluster recent performance as being likely to eventually resolve with a move higher, rather than with ushering in a stock downtrend.
Summary
Summing up, the S&P 500 refused to decline more when it had quite a few good reasons to do so yesterday. Today’s premarket downswing has taken it approximately to yesterday’s opening levels, and odds are that this dip will be bought again.
That’s true regardless of the weakening Russell 2000, which however doesn’t appear to be under distribution – not by a long shot. Emerging markets almost managed to close their yesterday’s bearish gap, and technology still continues to lead irrespective of weak semiconductors. The rotation theme in the recovery story remains on, and credit markets will shine light as to when stock strength would return.
Thank you for reading today’s free analysis. I encourage you to sign up for our daily newsletter – it’s absolutely free and if you don’t like it, you can unsubscribe with just 2 clicks. If you sign up today, you’ll also get 7 days of free access to the premium daily Stock Trading Alerts as well as our other Alerts. Sign up for the free newsletter today!
Thank you.
Monica Kingsley
Stock Trading Strategist
Sunshine Profits: Analysis. Care. Profits.
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All essays, research and information found above represent analyses and opinions of Monica Kingsley and Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Monica Kingsley and her associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Ms. Kingsley is not a Registered Securities Advisor. By reading Monica Kingsley’s reports you fully agree that she will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Monica Kingsley, Sunshine Profits’ employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.


investmentwatchblog--2020-08-21--Coronacrisis Turns Buyback Billionaires into the Trillion-Dollar Dozen

The Coronacrisis has been a boon for America ’ s wealthiest dozen , taking their aggregate wealth over the top of a trillion dollars .
One think tank refers to them as the “ Oligarchic Dozen ” : “ The rich get richer ” doesn ’ t even begin to tell the story these days .
According to the Institute for Policy Studies , the wealth of the top 12 billionaires in the U.S. recently exploded to more than one trillion dollars — yes , 13 digits… .
“ This is simply too much economic and political power in the @ @ @ @ @ @ @ point of view of a democratic self-governing society , this represents an Oligarchic Dozen….
” Since the pandemic first blew up in the U.S. back in March , the “ Oligarchic Dozen ” has enjoyed a 40 % surge in its combined wealth… .
“ The total wealth of the Oligarchic Dozen is greater than the GDP of Belgium and Austria combined , ” said Omar Ocampo , a researcher for IPS ’ s program on inequality and the common good .
“ Meanwhile , tens of millions of Americans are unemployed or @ @ @ @ @ @ @ ’ s not just Bezos and the bunch who have seen fortune smile upon them lately .
CEO compensation , overall , climbed to its highest level in seven years last year , and it is positioned to rise once again in 2020… .
In fact , the pay ratio between chief executives and workers at America ’ s 350 biggest companies has widened to 320-to-1 , the researchers found .
These are the Buyback Billionaires , some of the elite whose wealth has been expanded by the deregulation that allowed companies to @ @ @ @ @ @ @ the low capital-gains tax that gives the most benefit to those who expand their wealth through stock buybacks — the tax that Trump now wants to lower even more , thus exacerbating the extreme difference between the wealth of the rich and the survival of the rest .
Some billionaires see through it and have spoken out strongly against the buybacks that have made this leap possible and that have , again , been fueled by cheap Fed credit .
Back in March , when the Fed and feds went on their bailout @ @ @ @ @ @ @ not to allow buybacks at any corporation that received this year ’ s Fed bailouts .
Well , the government did dole out some to the proletariate this time around to cauterize their losses , and it did place some window-dressing restrictions on buybacks .
However , the Buyback Billionaires still benefited by far the most , getting rocketed into the new Trillion-Dollar Dozen .
Congress in its infinite trickery pretended to listen to this concern by stating in its various bailout acts that none of the money from the bailouts could go @ @ @ @ @ @ @ then take that cheap or free money and spend it on what it is meant for so that they can free up other funds to do buybacks , which they would have otherwise had to use just to save themselves .
If the government seriously wanted to stop the money from being used for buybacks , it would have said “ No buybacks for two years.
” Period .
Not just “ no buybacks out of these particular funds.
” Better yet , just end buybacks completely for good .
Most buybacks used @ @ @ @ @ @ @ Besides creating a course for ultimate market manipulation by insiders and besides being used to milk companies dry as insiders buy themselves out with company cash , they provide a way for investors , due to the special cap-gains tax rate , to take profits that get an end run around ordinary ( higher ) income taxes .
But , the government allowed buybacks to continue , though not with the actual bailout funds , as if anyone can tell what funds are what once they get pooled in the company pot .
@ @ @ @ @ @ @ , from other revenue streams , never mind the fact that those revenue streams were freed up for buybacks , just as Cuban pointed out would happen , because the companies that were put in “ precarious positions , mostly through buybacks ” didn ’ t have to “ weather the storm of an economic slowdown on their own.
” Though they had already spent their reserves on previous buybacks , that hasn ’ t stopped them from continuing with more buybacks to reward themselves during a time of extreme crisis .
Even @ @ @ @ @ @ @ this : But none of this caused congress ( or the Trump administration ) to do anything that would end buybacks from bailout recipients , even for just an extended period of time , such as “ no buybacks for two years , ” much less Cuban ’ s No buybacks “ ever !
” At this same time , Jeffrey Gundlach noted , It is apparently sitting better than it should .
I don ’ t hear much outrage in the press or on the streets .
Rich got richer by turning @ @ @ @ @ @ @ corporations didn ’ t just use company cash ( surplus revenue ) to enrich shareholders by buying back stocks ; they also used up all the company ’ s good credit .
This zombification isn ’ t something that happened just because of the Covidcrisis .
It all happened prior to COVID-19 ever making its way out of a Wuhan lab on the wings of bats ( or however it escaped ) : Cash balances were depleted and corporations were strapped with more debt than their revenue streams could cover , even at @ @ @ @ @ @ @ becoming infamous for … all to make shareholders richer at the expense of what could have been robust , profitable companies able to weather a crisis on their own .
But we keep letting it happen !
Have no fear .
The Covidcrisis arrived just in time to justify bailing them all out so they can do it again .
The government allowed them to continue buybacks ( but just earmark the bailout funds for their designated purpose , not to include bailouts ) .
Here ’ s how that works : Thanks @ @ @ @ @ @ @ to soak up all this bad debt .
It even soaked up new debt that the banks created through new bond issuances on behalf of these cash-starved corporations , much of which is being used for new buybacks !
Yay !
And the circus was great fun for all !
Any really bad debt , of course , will be covered by the tax payer via the US Treasury as we again socialized the risk of all the losses of the capitalists , not just in the US , but throughout the world @ @ @ @ @ @ @ everyone let it happen because , again , we wouldn ’ t want the too-big-to-fail to fall upon us .
That , Folks , is how trillions in mediocre bad debt and half a trillion to bad debt that outright fails gets hosed up into the Fed ’ s great Wondersuck Vacuum Cleaner with the outright fails being inherited by you !
The false gods of great fortunes delivered a good crisis when we needed it most And that is how the stock market keeps rising , even as the businesses being traded @ @ @ @ @ @ @ be shell corporations , trading as trillion-dollar chips in the Wall Street Casino .
Some actually would-be shell corporations already if not for the Fed fuel hose pumping new money in as it sucks bad debt out .
As Powell , demurely explained , regarding how times like the Covidcrisis help out : Yeah , you wouldn ’ t want the Federal Reserve System , owned entirely by the banks as it , in fact , is to lose money .
Much better to make sure any actual losses from these bailed out @ @ @ @ @ @ @ the form of higher mountains of federal debt .
The Fed will eventually finance all of that anyway , meaning more money going to the member banks in the form of interest on the debt as they buy that debt up and sell it for a profit to the Federal Reserve , which they own .
Buy Amerika !
( All of it ! )
The banks , of course , already made bank on all of this year ’ s bailouts , which was exactly why their corporate reports for the second @ @ @ @ @ @ @ tough times , pushing their stock values even higher .
They made money off the fees they charged for issuing all the new bonds on behalf of numerous client corporations — both national and multi-national .
They made money off of fees for the counsel they provided .
Then they sold their clients ’ debt to the Fed for a tidy profit , including no doubt some of their own corporate bonds .
Some of these are the same banks routinely fined for mega-billion scams and racketeering , such as Bank of America @ @ @ @ @ @ @ post-2008 tribute ) , Goldman Sachs , Wells Fargo , JPMorgan Chase , etc.. Those fines are just petty amounts of money out the back door as the same banks are rewarded by the federal government with lucrative deals like those we ’ ve seen during the Covidcrisis .
For example , back in 2008 , JPMorgan was asked by the Fed to suck up Bear Stearns at fire-sale prices .
That was , indeed , a sweetheart deal .
Not even the courts could review how the $ 700-billion was handled … @ @ @ @ @ @ @ laid out in 2008/2009 continues to roll on like a train to nowhere more than a decade later , there is nothing like a true global , economic collapse all over again to make banks richer with new plans that allow them to launder all their stale debts in ways forever unseen by the eyes of ordinary citizens .
But , hey , at least it all trickles down : Well , the losses all trickle down , not the compensation benefits .
In terms of compensation trickling down , we better put @ @ @ @ @ @ @ “ trickle , ” represented by that 12 % improvement in real dollars for the working class since 1978 !
Trump is about to trickle on you with some more truly special golden showers for the likes of Goldman Sachs and sons .
As if these bodacious bailouts were not insult enough , Trump started talking a week or so ago about lowering the already cut-rate 20 % capital gains tax even more to attempt to pump up his badge of pride , the US stock market , to new heights .
How @ @ @ @ @ @ @ understands the plight of the common man to look out for the rich so they can look out for us !
God forbid those who have joined the Trillion-Dollar Dozen get only a slight tax break on their stock gains compared to what the rest of us have to pay on ordinary income !
Working so less strenuously to make money off stock gains and being so much more at ease about their financial situations than the average guy , surely their finger-tip-computer-button stock gains should get an even lower tax rate than @ @ @ @ @ @ @ compared to people who live hand-to-mouth , month-to-month by the sweat of their brow !
Do you think the Republicans will complain about Trump ’ s obscene new tax cut , or will they praise him with the same tired mantra about doing what needs to be done to save the economy and create jobs ?
Never mind that NONE of these savings has gone into CAPEX to build companies stronger or into creating new factories in America , though the cuts have made CEOs 320 times richer than the average worker .
@ @ @ @ @ @ @ next round of stock purchases and buybacks to create a spiraling rise of stock prices that enrich the rich more than the rest .
I suspect even Republican paupers laid off at factories will praise Trump for the next round of tax cuts , claiming they will surely trickle down this time to make their situation better at last !
After all , they saved a couple thousand with the 2018 Trump Tax Cuts !
What do they say about “ fool us once ” and then “ fool us twice ?
” @ @ @ @ @ @ @ proposed fourth time with trickle-down / supply-side tax cuts ?
How long will the American public keep buying the propaganda that the rich need saving the most in order to save the rest of us ?
Let ’ s make sure they get a Trumpian-sized share of the benefits because that will be good for all of us , never mind they already pay a lower tax on their gains than the middle class pays on ordinary income .
Help the rich save the rest !

by David Haggith
The Coronacrisis has been a boon for America’s wealthiest dozen, taking their aggregate wealth over the top of a trillion dollars. One think tank refers to them as the “Oligarchic Dozen”:
“The rich get richer” doesn’t even begin to tell the story these days. According to the Institute for Policy Studies, the wealth of the top 12 billionaires in the U.S. recently exploded to more than one trillion dollars — yes, 13 digits…. “This is simply too much economic and political power in the hands of twelve people. From the point of view of a democratic self-governing society, this represents an Oligarchic Dozen….” Since the pandemic first blew up in the U.S. back in March, the “Oligarchic Dozen” has enjoyed a 40% surge in its combined wealth…. “The total wealth of the Oligarchic Dozen is greater than the GDP of Belgium and Austria combined,” said Omar Ocampo, a researcher for IPS’s program on inequality and the common good. “Meanwhile, tens of millions of Americans are unemployed or living paycheck to paycheck….” And it’s not just Bezos and the bunch who have seen fortune smile upon them lately. CEO compensation, overall, climbed to its highest level in seven years last year, and it is positioned to rise once again in 2020…. In fact, the pay ratio between chief executives and workers at America’s 350 biggest companies has widened to 320-to-1, the researchers found. MarketWatch
The Buyback Billionaires
These are the Buyback Billionaires, some of the elite whose wealth has been expanded by the deregulation that allowed companies to buy back their own stocks and by the low capital-gains tax that gives the most benefit to those who expand their wealth through stock buybacks — the tax that Trump now wants to lower even more, thus exacerbating the extreme difference between the wealth of the rich and the survival of the rest.
Some billionaires see through it and have spoken out strongly against the buybacks that have made this leap possible and that have, again, been fueled by cheap Fed credit.
Back in March, when the Fed and feds went on their bailout binges, Mark Cuban implored the government not to allow buybacks at any corporation that received this year’s Fed bailouts.
Ostensibly still disgusted from The Great Recession, where zero executives were held accountable and most of the Fed’s TARP money went to line the pockets of executives and widen the inequality gap, Cuban had some choice words – and some good ideas – for what life should be like post-bailouts and after the coronavirus crisis ends…. Cuban lamented bailouts in the past that have ignored the middle class and sought to place accountability on the executives that have put their companies in such precarious positions, mostly through buybacks, that they can’t weather the storm of an economic slowdown on their own. “”We already know what’s going to happen,” Cuban said. “A year after this plays out, and it will, we’ll look back and say why didn’t we consider the workers? The everyday hourly worker. The people making minimum wage. Why didn’t we reward them as well?” Zero Hedge
Well, the government did dole out some to the proletariate this time around to cauterize their losses, and it did place some window-dressing restrictions on buybacks. However, the Buyback Billionaires still benefited by far the most, getting rocketed into the new Trillion-Dollar Dozen.
Congress in its infinite trickery pretended to listen to this concern by stating in its various bailout acts that none of the money from the bailouts could go to buybacks. So what? Companies then take that cheap or free money and spend it on what it is meant for so that they can free up other funds to do buybacks, which they would have otherwise had to use just to save themselves.
If the government seriously wanted to stop the money from being used for buybacks, it would have said “No buybacks for two years.” Period. Not just “no buybacks out of these particular funds.” Better yet, just end buybacks completely for good.
Most buybacks used to be illegal for good reason. Besides creating a course for ultimate market manipulation by insiders and besides being used to milk companies dry as insiders buy themselves out with company cash, they provide a way for investors, due to the special cap-gains tax rate, to take profits that get an end run around ordinary (higher) income taxes.
Warned Cuban,
“When there is a bailout … whether its an airline or whatever it may be … there are most likely going to be steps taken by the company, and historically this is what has taken place, where they reward the executives. They reprice their options, they give them more stock, they give them warrants…. “No buybacks. Not now, not a year from now, not 20 years from now. Not ever,” Cuban concluded. “Effectively you’re spending taxpayer money to buy back stock and for me, that’s just the wrong way to do that.”
But, the government allowed buybacks to continue, though not with the actual bailout funds, as if anyone can tell what funds are what once they get pooled in the company pot. So, they just continued, supposedly, from other revenue streams, never mind the fact that those revenue streams were freed up for buybacks, just as Cuban pointed out would happen, because the companies that were put in “precarious positions, mostly through buybacks” didn’t have to “weather the storm of an economic slowdown on their own.”
Though they had already spent their reserves on previous buybacks, that hasn’t stopped them from continuing with more buybacks to reward themselves during a time of extreme crisis.
Even Krazy Kramer agreed with the logic of this:
@mcuban It is very rare that i read something that i totally and unequivocally agree with. Below is one of those reads. I am so tired of the rich profiting from every cataclysm. This is the time to reset the system in favor of the working person. Right Now! t.co/btcvGP18Lu — Jim Cramer (@jimcramer) March 18, 2020
But none of this caused congress (or the Trump administration) to do anything that would end buybacks from bailout recipients, even for just an extended period of time, such as “no buybacks for two years,” much less Cuban’s No buybacks “ever!”
At this same time, Jeffrey Gundlach noted,
I don’t think government bailouts of over leveraged companies that got over leveraged via share buybacks at all-time highs, enriching executives and hedge fund investors, will sit well with the American people. — Jeffrey Gundlach (@TruthGundlach) March 18, 2020
It is apparently sitting better than it should. I don’t hear much outrage in the press or on the streets.
Rich got richer by turning their companies into zombies
Of course, corporations didn’t just use company cash (surplus revenue) to enrich shareholders by buying back stocks; they also used up all the company’s good credit.
Corporate debt is the timebomb everyone saw ticking, but no one was able to defuse. Ratings agencies warned about it: Moody’s, S&P. Central banks and international financial institutions did too: the Fed, the Bank of England, the Bank for International Settlements, the IMF. Financial luminaries expressed concern: Jamie Dimon, Seth Klarman, Jes Staley, Jeffrey Gundlach, Henry McVey. Even a presidential candidate brought the issue on the campaign trail: Elizabeth Warren. Yet, as we’ve documented in these pages for more than two years, corporations have only piled on more debt as their balance sheet health has deteriorated…. One in six U.S. companies is now a zombie, meaning their interest expenses exceed their earnings before interest and taxes. Zero Hedge
This zombification isn’t something that happened just because of the Covidcrisis. It all happened prior to COVID-19 ever making its way out of a Wuhan lab on the wings of bats (or however it escaped):
As of year-end 2019, the percentage of listed companies in the U.S. losing money over 12 months sat close to 40%. In the 12 months to November, non-financial S&P 500 cash balances had declined by 11%, the largest percentage decline since at least 1980.
Cash balances were depleted and corporations were strapped with more debt than their revenue streams could cover, even at the ridiculously low interest this millennium is becoming infamous for … all to make shareholders richer at the expense of what could have been robust, profitable companies able to weather a crisis on their own.
Greater than 50% of outstanding debt is rated BBB, one rung above junk.
But we keep letting it happen!
Have no fear. The Covidcrisis arrived just in time to justify bailing them all out so they can do it again. The government allowed them to continue buybacks (but just earmark the bailout funds for their designated purpose, not to include bailouts).
Here’s how that works: Thanks to the Covidcrisis, the Fed promised to soak up all this bad debt. It even soaked up new debt that the banks created through new bond issuances on behalf of these cash-starved corporations, much of which is being used for new buybacks!
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Yay! And the circus was great fun for all!
Any really bad debt, of course, will be covered by the tax payer via the US Treasury as we again socialized the risk of all the losses of the capitalists, not just in the US, but throughout the world:
For the first time in the history of the Federal Reserve, it has signed on to a plan with Congress to nationalize the unmanageable debts of global banks and other multinational corporations and put the U.S. taxpayer on the hook for the losses. Conducting the bulk of these programs will be the Federal Reserve Bank of New York, known as the New York Fed, which is a private institution owned by (wait for it) multinational banks…. According to the language in the recent stimulus bill (CARES Act) passed by Congress and signed into law by President Trump … the U.S. Treasury will hand $454 billion of taxpayers’ money to the Federal Reserve. The Fed will, in turn, hand the bulk of this money to the New York Fed. The New York Fed will then create Special Purpose Vehicles (SPVs) using the $454 billion as loss absorbing capital (equity) to leverage its purchases of bad debts to $4.54 trillion…. So far, the Fed has newly announced it will be engaging in outright purchases of corporate bonds in both the primary and secondary markets, exchange traded funds, asset-backed commercial paper along with its ongoing purchases of Treasury securities and agency mortgage-backed securities. Wall Street on Parade
Yay! Such fun! And everyone let it happen because, again, we wouldn’t want the too-big-to-fail to fall upon us.
That, Folks, is how trillions in mediocre bad debt and half a trillion to bad debt that outright fails gets hosed up into the Fed’s great Wondersuck Vacuum Cleaner with the outright fails being inherited by you!
The false gods of great fortunes delivered a good crisis when we needed it most
And that is how the stock market keeps rising, even as the businesses being traded are dying. They are soon to be shell corporations, trading as trillion-dollar chips in the Wall Street Casino. Some actually would-be shell corporations already if not for the Fed fuel hose pumping new money in as it sucks bad debt out.
As Powell, demurely explained, regarding how times like the Covidcrisis help out:
In certain circumstances like the present, we do have the ability to essentially use our emergency lending authorities and the only limit on that will be how much backstop we get from the Treasury Department. We’re required to get full security for our loans so that we don’t lose money.
Yeah, you wouldn’t want the Federal Reserve System, owned entirely by the banks as it, in fact, is to lose money. Much better to make sure any actual losses from these bailed out blimps accrue to the tax payer in the form of higher mountains of federal debt. The Fed will eventually finance all of that anyway, meaning more money going to the member banks in the form of interest on the debt as they buy that debt up and sell it for a profit to the Federal Reserve, which they own.
This is exactly what happened during the last financial crisis: the New York Fed was put in charge of the bailout programs and then farmed them out to multinational banks like Goldman Sachs and JPMorgan Chase – who are among the largest shareowner owners of the New York Fed.
Buy Amerika! (All of it!)
The banks, of course, already made bank on all of this year’s bailouts, which was exactly why their corporate reports for the second quarter came out so golden during such tough times, pushing their stock values even higher.
They made money off the fees they charged for issuing all the new bonds on behalf of numerous client corporations — both national and multi-national. They made money off of fees for the counsel they provided. Then they sold their clients’ debt to the Fed for a tidy profit, including no doubt some of their own corporate bonds.
Some of these are the same banks routinely fined for mega-billion scams and racketeering, such as Bank of America (to whom I sang my own post-2008 tribute), Goldman Sachs, Wells Fargo, JPMorgan Chase, etc.. Those fines are just petty amounts of money out the back door as the same banks are rewarded by the federal government with lucrative deals like those we’ve seen during the Covidcrisis.
For example, back in 2008, JPMorgan was asked by the Fed to suck up Bear Stearns at fire-sale prices.
After some heat from the media, JP Morgan was strong-armed by the Fed to pay $10 per share, partially rescuing equity shareholders and bondholders. As part of the agreement with the Fed to raise the stakes to $10 per share, the U.S. taxpayers assumed most of the residual credit risk…. Bear Stearns real estate holdings alone were worth well in excess of the $10 per share price, not to mention many other valuable assets. It was a sweetheart deal for JP Morgan as they got all of the upside. Not so much for the taxpayer who took all the risk. What was the reward for that assumed risk? Zero percent interest rates, languishing retirement fund returns, and a widening wealth inequality gap…. Later that year, as the financial fiasco gained steam and after the Lehman Brothers bankruptcy, the Fed directly lobbied Congress to provide $700 billion in taxpayer funds to bailout the United States banking system…. Rumor has it that Treasury Secretary Hank Paulsen literally got down on his knees to beg Nancy Pelosi to quickly advance the effort (no doubt after looking at the value of his Goldman Sachs stock). Sorry taxpayers, the bailout which gave ex-Goldman Sachs CEO Hank Paulson full authority to distribute funds to banks and make purchase of bank’s securities was not allowed to be checked for fairness, indiscretion, or quid pro quo actions from Paulson and friends…. Zero Hedge
That was, indeed, a sweetheart deal. Not even the courts could review how the $700-billion was handled … ever.
That status gave them unprecedented special privileges unlike those any other company before had ever enjoyed. EVER. They were feeding at the trough of U.S. taxpayer generosity with a sense of arrogance and entitlement…. That pattern of corporate favoritism, dare we say welfare, took on a new monstrous form during the financial crisis and has stayed in place throughout the entire decade that followed.
As the course of bailouts laid out in 2008/2009 continues to roll on like a train to nowhere more than a decade later, there is nothing like a true global, economic collapse all over again to make banks richer with new plans that allow them to launder all their stale debts in ways forever unseen by the eyes of ordinary citizens.
But, hey, at least it all trickles down:
Let’s remember where all of these bad debts came from on which the U.S. taxpayer is now going to eat the losses. These multinational corporations and multinational banks issued debt in order to buy back trillions of dollars of their own shares to inflate their profits so that their CEOs and other top executives could claim great stock performance and get paid 200 to 400 times what their average workers were getting paid. According to the Economic Policy Institute, CEO compensation has grown 940 percent since 1978 while the typical worker’s compensation has risen by just 12 percent during that span of time. Wall Street on Parade
Well, the losses all trickle down, not the compensation benefits. In terms of compensation trickling down, we better put a little more emphasis on the word “trickle,” represented by that 12% improvement in real dollars for the working class since 1978!
Trump trumps his own tax cuts
Trump is about to trickle on you with some more truly special golden showers for the likes of Goldman Sachs and sons.
As if these bodacious bailouts were not insult enough, Trump started talking a week or so ago about lowering the already cut-rate 20% capital gains tax even more to attempt to pump up his badge of pride, the US stock market, to new heights. How fortunate we are to have someone who understands the plight of the common man to look out for the rich so they can look out for us!
God forbid those who have joined the Trillion-Dollar Dozen get only a slight tax break on their stock gains compared to what the rest of us have to pay on ordinary income! Working so less strenuously to make money off stock gains and being so much more at ease about their financial situations than the average guy, surely their finger-tip-computer-button stock gains should get an even lower tax rate than the already lower rate they pay as compared to people who live hand-to-mouth, month-to-month by the sweat of their brow!
Do you think the Republicans will complain about Trump’s obscene new tax cut, or will they praise him with the same tired mantra about doing what needs to be done to save the economy and create jobs? Never mind that NONE of these savings has gone into CAPEX to build companies stronger or into creating new factories in America, though the cuts have made CEOs 320 times richer than the average worker. It all just gets recycled into the next round of stock purchases and buybacks to create a spiraling rise of stock prices that enrich the rich more than the rest.
I suspect even Republican paupers laid off at factories will praise Trump for the next round of tax cuts, claiming they will surely trickle down this time to make their situation better at last! After all, they saved a couple thousand with the 2018 Trump Tax Cuts!
What do they say about “fool us once” and then “fool us twice?” How about thrice … and now a proposed fourth time with trickle-down / supply-side tax cuts? How long will the American public keep buying the propaganda that the rich need saving the most in order to save the rest of us? Let’s make sure they get a Trumpian-sized share of the benefits because that will be good for all of us, never mind they already pay a lower tax on their gains than the middle class pays on ordinary income. Help the rich save the rest!
Trump promises this time supply-side tax cuts will trickle down to everyone!


investmentwatchblog--2020-08-21--Fed Can Control Yield Curve. But It Can’t Control Gold

In a response to the coronavirus crisis , the Fed has already cut interest rates to zero and implemented quantitative easing .
But that ’ s not enough and the U.S. central bankers are now talking about “ yield curve control ” .
What is it and how it could affect the gold market ?
Normally , the central banks lower the short-term interest rate to stimulate the economy .
But the federal funds rate is already at zero , so the Fed now thinks about the yield curve control .
It works basically like normal open-market operations – the @ @ @ @ @ @ @ curve control , the Fed would target some longer-term interest rate .
As the central bank would set the short-term rates at zero and it would target also longer-term rates , it would practically control the yield curve , which explains the name .
Moreover , the Fed would also promise to buy enough bonds to keep the rate from moving above the target – this is why the yield curve control is also called “ interest rate caps ” or “ interest rate pegs ” .
It might be useful to compare @ @ @ @ @ @ @ easing .
While the latter deals with quantities or amounts of bonds ( e.g.
, the Fed commits to buying bonds worth $ 1 trillion , but the market still influences the price ) , the former deals with bond prices .
In other words , under the yield curve control , the central banks pledge to buy whatever amount of bonds the market wants to supply at the target price ( instead of a particular amount of bonds at whatever the price ) .
Although central banks normally target short-term interest rates @ @ @ @ @ @ @ be a new policy .
It was already used by the Fed during and after the World War II , when it agreed to help Treasury in financing military expenditures and cap the Treasury yields by buying any Treasury bond that yielded above the target .
In a more recent history , the Bank of Japan introduced its yield curve control in September 2016 , pegging yields on 10-year Japanese Treasuries around zero percent .
Interestingly , under the yield curve target , the BoJ has been buying government bonds at a slower @ @ @ @ @ @ @ the chart below shows .
This is because investors accepted that the BoJ would buy whatever quantity of bonds to keep yields from rising , so it has not had to buy too many of them to set price .
And in March 2020 , in response to Covid-19 pandemic and the following economic crisis , the Australia ’ s central bank started capping yields on 3-year government bonds at 0.25 percent , which triggered expectations that the Fed could follow suit .
What would the yield curve target imply for the monetary @ @ @ @ @ @ @ ?
Well , it ’ s not rocket science – capping bond yields means that bond yields will remain very low for longer that they would be without the caps .
Importantly – oh , what a coincidence !
– the Fed would cap Treasury yields , which would allow the government to continue its spending spree and to not worry about the fiscal deficits and soaring public debt .
Another issue is that the yield curve control flattens the yield curve , which hurts the commercial banks , which usually borrow short-term @ @ @ @ @ @ @ a flat yield curve narrows their margins , impairing their lending ability , which is key to revive the economy .
Last but not least , the yield curve control can become very easily ( if it ’ s not already ) a blunt tool to help government issue debt smoothly and cheaply .
As the FOMC admitted itself in minutes of its recent meeting , “ monetary policy goals might come in conflict with public debt management goals , which could pose risks to the independence of the central bank.
” It @ @ @ @ @ @ @ curve control should be positive for the gold prices , even if it would reduce the pace of the Fed ’ s balance sheet expansion ( as in the case of the BoJ ’ s experience ) .
After all , the caps on the Treasury yields imply low interest rates .
Importantly , if inflation rises the cap on nominal interest rates would lead to the decline in the real interest rates , as it happened in the aftermath of the World War II .
The yield curve control also caps the @ @ @ @ @ @ @ encourage the increase in public debt , which raises the risk of the sovereign-debt crisis .
Moreover , the yield curve control could spur some worries about the central bank ’ s independence , which could weaken the U.S. dollar .
In such a macroeconomic environment , gold should shine .
So , the Fed could cap the Treasury yields , while pushing gold upwards .
Thank you for reading today ’ s free analysis .
We hope you enjoyed it .
If so , we would like to invite you to sign @ @ @ @ @ @ @ Once you sign up , you ’ ll also get 7-day no-obligation trial of all our premium gold services , including our Gold & Silver Trading Alerts .
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by Arkadiusz Sieron, PhD
In a response to the coronavirus crisis, the Fed has already cut interest rates to zero and implemented quantitative easing. But that’s not enough and the U.S. central bankers are now talking about “yield curve control”. What is it and how it could affect the gold market?
Normally, the central banks lower the short-term interest rate to stimulate the economy. But the federal funds rate is already at zero, so the Fed now thinks about the yield curve control. It works basically like normal open-market operations – the only difference is that under the yield curve control, the Fed would target some longer-term interest rate. As the central bank would set the short-term rates at zero and it would target also longer-term rates, it would practically control the yield curve, which explains the name. Moreover, the Fed would also promise to buy enough bonds to keep the rate from moving above the target – this is why the yield curve control is also called “interest rate caps” or “interest rate pegs”.
It might be useful to compare the yield curve control with the quantitative easing. While the latter deals with quantities or amounts of bonds (e.g., the Fed commits to buying bonds worth $1 trillion, but the market still influences the price), the former deals with bond prices. In other words, under the yield curve control, the central banks pledge to buy whatever amount of bonds the market wants to supply at the target price (instead of a particular amount of bonds at whatever the price).
Although central banks normally target short-term interest rates, the yield curve control would not be a new policy. It was already used by the Fed during and after the World War II, when it agreed to help Treasury in financing military expenditures and cap the Treasury yields by buying any Treasury bond that yielded above the target. In a more recent history, the Bank of Japan introduced its yield curve control in September 2016, pegging yields on 10-year Japanese Treasuries around zero percent. Interestingly, under the yield curve target, the BoJ has been buying government bonds at a slower pace than under the QE, as the chart below shows. This is because investors accepted that the BoJ would buy whatever quantity of bonds to keep yields from rising, so it has not had to buy too many of them to set price.
And in March 2020, in response to Covid-19 pandemic and the following economic crisis, the Australia’s central bank started capping yields on 3-year government bonds at 0.25 percent, which triggered expectations that the Fed could follow suit.
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What would the yield curve target imply for the monetary policy, economy and the gold market? Well, it’s not rocket science – capping bond yields means that bond yields will remain very low for longer that they would be without the caps. Importantly – oh, what a coincidence! – the Fed would cap Treasury yields, which would allow the government to continue its spending spree and to not worry about the fiscal deficits and soaring public debt.
Another issue is that the yield curve control flattens the yield curve, which hurts the commercial banks, which usually borrow short-term funds and lend long-term. So, a flat yield curve narrows their margins, impairing their lending ability, which is key to revive the economy.
Last but not least, the yield curve control can become very easily (if it’s not already) a blunt tool to help government issue debt smoothly and cheaply. As the FOMC admitted itself in minutes of its recent meeting, “monetary policy goals might come in conflict with public debt management goals, which could pose risks to the independence of the central bank.”
It should be clear now that the yield curve control should be positive for the gold prices, even if it would reduce the pace of the Fed’s balance sheet expansion (as in the case of the BoJ’s experience). After all, the caps on the Treasury yields imply low interest rates. Importantly, if inflation rises the cap on nominal interest rates would lead to the decline in the real interest rates, as it happened in the aftermath of the World War II. The yield curve control also caps the government’s borrowing costs, which encourage the increase in public debt, which raises the risk of the sovereign-debt crisis. Moreover, the yield curve control could spur some worries about the central bank’s independence, which could weaken the U.S. dollar. In such a macroeconomic environment, gold should shine. So, the Fed could cap the Treasury yields, while pushing gold upwards.
Thank you for reading today’s free analysis. We hope you enjoyed it. If so, we would like to invite you to sign up for our free gold newsletter. Once you sign up, you’ll also get 7-day no-obligation trial of all our premium gold services, including our Gold & Silver Trading Alerts. Sign up today!
Arkadiusz Sieron, PhD
Sunshine Profits: Analysis. Care. Profits.


investmentwatchblog--2020-08-22--MacroVoices, Jesse Felder: How Long Can Stock Market Mania Continue?

Erik Townsend and Patrick Ceresna welcome Jesse Felder to MacroVoices .
Erik and Jesse discuss : • None New all-time @ @ @ @ @ despite the pandemic – what does this mean ?
• None Perspectives on stock split @ @ @ @ @ None Is the bond market the key to stop the Fed ’ s frivolous money @ @ @ @ @ the beginning of the end for US dollar ?

Erik Townsend and Patrick Ceresna welcome Jesse Felder to MacroVoices. Erik and Jesse discuss:
New all-time highs in the stock market despite the pandemic – what does this mean?
Jesse’s perspectives on Mike Green’s thesis about passive investment strategy
Is the r etail mania driven by the Fed ?
Perspectives on stock split and still rising TSLA
Is the bond market the key to stop the Fed’s frivolous money printing
Is this the beginning of the end for US dollar?