Sunday, October 2, 2011

Financial Investors Oct 2, 2011 My Analysis on News that May Affect the Market

Tags: Financial Investors My Best Market Guess Estimate of Markets Based News from

Sept 23, 2011, Demand Surges for Dividend-Paying Stocks ETFs, Ajay Makan.

Bernanke’s Twist operation may be more effective than thought by experts. It is being help considerably by the market where shift toward higher Treasury yields shift has started to occur in the expectation of slow growth and no inflation.

Predicting the market timing of events is a fools errand. But, it will not be foolish to think about slowly going into markets in both the USA and Asia which has fallen sharply.

Always remember that emotions more than logic move markets.

Economic Cycle Research Institute (ECRI) Predicts Contraction in USA October 2, 2011

FT Lex writer’s analysis run by John Authers is as good as anything I read online. With the caveat that no one can consistently predict when something will happen, including the well respected ECRI, but, they seem to be good at predicting eventual financial events.

Most average small investors are extremely worried and are essentially out of stocks. They have not come into the market during the rise in the market yet and have sold more recently.

Authers is really worried about what is happening in Hong Kong reflecting what is happening in China. With several companies cooking the books incidents in China, trust in the region has declined with a sharp contraction in stocks and currencies in September even though the longer term outlook is quite optimistic.

My worry is that the voters might vote for the party that caused this financial disaster and that secret money from billionaires, millionaires, and foreign investors cannot be monitored thanks to our corporate conservative Supreme Court, and the politician with the most money normally win elections in the 90 plus percentile.

On the positive side, more voters in both parties are starting to realize this and more are thinking for themselves. Some Tea Party members have been found among the protestors on Wall Street which have recently increased sharply after the Pepper Spray incident which the major corporate press and media were not able to suppress. See video

Although ignored largely by the large press and media, Americans are getting the message and one Union will also be there on Wednesday.

I often wonder if some moderate Democratic Senators who voted to confirm Chief Justice Roberts and Alito did not know their records or agreed with their strictly corporate biased rulings in the Appeals Court.

President Obama voted against confirming them as Senator because he bothered to look up their records. Even in the Supreme Court cases these justices openly suggest the best approach for corporations to win the 5-4 majority.

US debate intensifies over taxes on the Rich, James Politi in Washington August 19, 2011

Bill Gates Jr, whose father has been pushing for the rich to pay more taxes, increased his charitable giving after marrying Melinda. Bill and Melinda have spent a fortune helping launch programs to make healthcare affordable in Third World countries in Africa, Asia, and eventually here. In a poor Kerala state in Southeast India previously run by Socialists, the income of $300 a year was evenly distributed in this state so families seeing some stability have an average of only two children per family.

I am not sure whether this will continue with the corporate party now in charge.

Science: Two weeks ago in the Tuesday Science section of the practically the whole section of medical breakthroughs in providing medicine and tests which were more affordable in poor countries. These tests will eventually migrate here to make even more tests available in stores at very low prices compared to what they are now.

For example, one small plastic piece contains tests for many diseases!

Greed: But, ultra-greed among billionaires is not dead yet. A Bill Gates initiated tax initiative on the rich bill in Washington State was successfully defeated by the well funded opposition by Steve Ballmer, CEO of Microsoft, and Jeff Bezos, CEO of I feel run by Bezos have become too dictatorial uncaring towards very low wage warehouses workers who have to work in areas all over America in buildings lacking air conditioners.

Shopping: Even though I have found Amazon convenient to buy books from, I will start exploring alternative sources for books and other items suggested by Consumer Union’s ShopSmart Magazine at

My Thoughts about Global Warming. Although environmentalists criticized Obama for allowing coal and oil companies from implementing pollution control methods and cleaner diesel fuel for cars and trucks, the industry is dismantling diesel fuel and heating oil refineries because they claim that they cannot afford to implement these policies.

As we already know, volcano eruptions increase pollution and slow global warming. The fall of the Roman Empire has been partly attributed to global cooling from volcanic eruptions. In the last half of the 1990s, warming stopped until the particles from the Indonesia volcanic eruption dissipated.

What the executives mean is that their stocks will go down in price because building improved refineries costs large amounts of money with no guaranteed future returns such as drilling for gas and oil. New tax policies on income and wealth would really help counter their perceptions.

My view is that the only way to reduce the consumption of diesel heating oil, natural gas, and gasoline to increase its price so more companies and people will shift to more fuel efficient vehicles, lower the temperature in the winter and raise the temperature in their homes during the summer.

So greed may turn out to help us in the end. Any contrary ideas?

Jim Kawakami, October 2, 2011,

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