Sunday, May 4, 2014

Today's Links

1---The Last Two Times This Happened, The Stock Market Crashed , Testosterone Pit

The  last two times when margin debt reversed and fell after a record-breaking spike, all hell broke loose. In 2000, it was simultaneous. In 2007, it was delayed by a few months. Today, on the surface, everything is still hunky-dory. The Dow is just fractions below its all-time high that it set on Wednesday. But beneath the surface, parts of the stock market are already coming unglued, and holders of momentum stocks have been eviscerated...

In August 2012, margin debt spiked again, and this time, it turned into a phenomenal spike that set a new record in July 2013 and continued going for the stars. In February, it hit $465.7 billion, 22% above the prior all-time record. And 2.73% of GDP. The highest ratio ever!

It isn’t the spike per se that matters, but when the spike reverses. So in March – the New York Stock Exchange released the numbers Wednesday evening – margin debt declined by over $15 billion. Instead of plowing $15 billion in barrowed money into stocks, as they might have during the upward momentum of the spike, investors yanked out $15 billion – for a difference of $30 billion compared to prior months. And that moolah they yanked out doesn’t sit on the sidelines. It dissipated into thin air by being used to pay off debt. The last two times that reversal happened, the whole construct came tumbling down.

2---Mutiny of the Lab Rats: Europeans Grow Weary of EU Experiment , Testosterone Pit

3--Bill Moyers on “Net neutrality”, naked capitalism

4---Shocking US jobs data impugns recovery, Fed tapering, ambrose evans pritchard
Friday's figures are a warning that the US recovery may be losing momentum

5---Is Smart Money Buying or Selling Stocks?, naked capitalism

6--Number of Missing Workers Jumps to All-Time High', EPI
The EPI's Heidi Shierholz:
Number of Missing Workers Jumps to All-Time High: ... The biggest drop in LFPR in April was among men under the age of 20. To my knowledge, data on unemployment insurance exhaustions by age don’t exist, but it is unlikely that young workers are a big proportion of exhaustions. This means that the April drop in labor force participation is likely not being driven by the expiration of federal unemployment insurance benefits last December as some have suggested, but simply by the weak labor market.
There is currently an all-time-high of 6.2 million missing workers (potential workers who are neither working nor actively seeking work due to the weak labor market). Almost a quarter of them (1.4 million) are under age 25. The ... unemployment rate for young workers would be 18.4 percent instead of 12.8 percent if the missing young workers were in the labor force looking for work and thus counted as unemployed.
For a complete picture of the labor market prospects facing the new cohort of young adults graduating from high school and college this spring, see the Class of 2014 report released yesterday. It includes, for example, a detailed discussion of the finding that there is little evidence that today’s missing young workers are “sheltering in school”

7---Enron-style price gouging is making a comeback, al Jazeera

8---Just How Much Are Parents Bailing Out Their Student-Debt-Addled Kids?, WSJ

9--Rising Food Prices May Cause Consumer Indigestion , WSJ

10--CIA and FBI in Kiev!, yahoo

Dozens of specialists from the US Central Intelligence Agency and Federal Bureau of Investigation are advising the Ukrainian government, a German newspaper reported Sunday.
Citing unnamed German security sources, Bild am Sonntag said the CIA and FBI agents were helping Kiev end the rebellion in the east of Ukraine and set up a functioning security structure.

11--Avoiding facts? MSM uncertain who is behind deadly Odessa blaze, RT

12--Ukraine, Moon of Alabama

Without Russian intervention and without German support the U.S. campaign against Russia is unlikely to reach its secondary target of isolating Russia. The primary target, Sevastopol harbor in Crimea, was already lost when Russia reunified with the island.
What is left to do then for Washington is to create more chaos in Ukraine and to hope that somehow out of total chaos some new chance may arise to stick it to Russia. For lack of real direction that strategy is also unlikely to succeed.

13---Putin: USA orchestrated Ukrainian crisis, Pravda

14---Information Warfare, Psy-ops and the Power of Myth , Info clearinghouse (archive)

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