LaSalle Street Journal

GDP and Consumption Down,
Cash-for-Clunkers Out of Cash,
Congress Hits the Taxpayer ATM

Q2 GDP down 1.0% vs. down 1.5% consensus, prior revised to down 6.4% from down 5.5%. GDP Price Index +0.2% vs. +1.0% consensus, prior revised to +1.9% from +2.8%. Q2 Employment Cost Index +0.4% vs. +0.3% consensus, prior +0.3%. Q2 Core PCE +2.0% vs. +2.3% consensus, prior revised to +1.1% from +1.6%. Q2 Personal Consumption [...]

EPS vs. Revenue Explained

EPS – Earnings – Net Income: Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses. This number is found on a company’s income statement and is an important measure of how profitable the company is over a period of time. The measure is [...]

How ALL Systems Can Collapse Overnight 7/09

If you love how Marty continually explores, documents, and proves in detail how history repeats itself, here’s another great one.

No other human being in the course of history has been able to prove what he has through his vast historical data and dedication to the truth.
On a personal note:

It looks as though the Government will continue to ignore ALL of his legitimate demands for justice. They are purposely ignoring his pleas because he IS a POLITICAL PRISONER , and they will do everything possible TO STALL until his ‘time’ behind bars is served– that is if you consider serving 12 years when the sentence was “5″, JUSTICE!

Marty is a good man with a good heart that is treated worse than any violent offender–hence the murder attempt that left him with no teeth–and NO, the Bureau of Prisons have not given him any and it’s been over 2 years!

Please write your Congressmen, and ask questions. This good man can really help the U.S., and his family and 84 year old Mother needs him. She is a wonderful, courageous woman who has stood by her son for over 10 years.

Thanks every one of you for supporting him– even if it’s by reading his essays…. Kindest regards, Kris

Happy Days Aren’t Here Again

Have you heard the great news? The recession is over! It’s true; I saw it on TV. Why fret about growing unemployment lines when banks are paying big-time bonuses again?

Unemployed Up, Healthcare Not a Done Deal

Initial Claims 584K vs. 575K consensus, prior revised to 559K from 554K; Continuing Claims falls to 6.197MM from 6.251MM. WSJ reports car dealers began expressing concern that the government’s “cash for clunkers” incentive program could run out of money as soon as the end of August due to strong initial response from consumers. Bloomberg.com reports [...]

Revenues Continue to Contract, IMF to Sell Gold

DJ reports the International Monetary Fund’s board will likely approve sale of some of its gold by the fund’s October meetings in Turkey. Reuters.com reports U.S. Representative Jane Harman, a member of the fiscally conservative Democratic coalition, said on Tuesday it was likely the House of Representatives would recess on Friday without a vote on [...]

Big Blue Flexes Big Green, 1.2B Times

The Wall Street Journal reports Bank of America is planning to shrink the co’s 6,100-branch network by about 10%. AP reports after weeks of secretive talks, a bipartisan group in the Senate edged closer Monday to a health care compromise that omits a requirement for businesses to offer coverage to their workers and lacks a [...]

Most Investors, Economists, and Policy Makers Are Blind to the Mountain of Malinvestments

Reading about the first Quarterly Bloomberg Global Poll of investors, which found that almost 75 percent of those surveyed give Ben Bernanke favorable marks for his actions as chairman of the Fed during the current financial and economic crisis, my first reaction was to wonder, What are these people thinking? The news article also notes that Martin Feldstein, a leading establishment economist, recently said in an interview with Bloomberg that Bernanke has “done a very good job and I think he should be reappointed.” Feldstein is a fairly reliable barometer of what mainstream economists think about macroeconomic policy.

EPS Easy to Meet, Revenues More Difficult

WSJ reports so-called Blue Dog Democrats continued to resist key aspects of their party’s health-care overhaul Sunday, despite pressure from party leaders who fear they will endanger Obama’s most ambitious legislative effort. The Wall Street Journal reports Aetna has put its pharmacy-benefit management business on the block, as the industry embarks on wide scale consolidation. [...]

Personal Responsibility in China

Constellation Brands announces signing of multi-year distribution agreements with Southern Wine & Spirits of America, Republic National Distributing Company, National Wine & Spirits and Johnson Brothers Liquor Company. Alpha Natural Resources confirms commitment to merger agreement with Foundation Coal, Duquesne Capital Management, 8.31% stakeholder, says it will vote against merger. Financial Times reports Fortress Investment [...]

Lemonides Says Dow 15,000, Here We Come

I think Brian Wesbury, chief economist at First Trust Advisors, is bad enough saying saying stocks are 50% undervalued. But Charles Lemonides, Portfolio Manager of ValueWorks (motto – quality assets, compelling valuations) saying “I don’t think it would be surprising to see a 12,000 number [on the Dow] six months to a year out, [...]

No Exit for Ben

In a Wall Street Journal op-ed on Monday, and in congressional testimony later in the week, Fed Chairman Ben Bernanke reassured all that thanks to his accurate foresight and deft use of the Fed’s policy toolkit, he could maintain near zero percent interest rates for an extended period without creating inflation. With supernatural powers such as these, one wonders if Ben would be better employed by the Justice League rather than the Federal Reserve.

Mediocre Earnings Exceed Feeble Guidance

Amazon.com to acquire Zappos.com. Diamond Offshore declares special cash dividend of $1.875 per share. DJ reports Toyota Motor plans to liquidate its joint venture with General Motors in California by the end of August; GM said last month it would drop its ownership stake in the 25-year-old joint venture, New United Motor Manufacturing (NUMMI). THR.com [...]

Northern Trust Blows Thru Estimates, Morgan Stanley Loses Another Billion

Wells Fargo prelim $0.57 vs. $0.34 consensus, revenues $22.5B vs. $20.49B consensus. Morgan Stanley prelim ($1.37) vs. ($0.49) consensus, revenues $5.41B vs. $5.35B consensus. Piper Jaffray prelim $0.59 vs. $0.39 consensus, revenues $132.29MM vs. $113.06MM consensus. Northern Trust prelim $0.95 vs. $0.55 consensus, revenues $1.05B vs. $986.01MM consensus. US Bancorp earnings $0.12 per share [...]

NRG Says No, Apple Says Say Cheese

NRG Energy shareholders reject all of Exelon Corp’s director nominees; shareholders re-elect all four NRG-nominated directors – Reuters. Freddie Mac names Charles Haldeman, Jr. CEO. Wired.com reporting Apple’s factories in China are already manufacturing iPod Touch models with integrated cameras and microphones. Halliburton downgraded to Hold from Buy at Natixis Bleichroeder. CalPERS expected to report [...]

The Iranian Election and the Revolution Test

Successful revolutions have three phases. First, a strategically located single or limited segment of society begins vocally to express resentment, asserting itself in the streets of a major city, usually the capital. This segment is joined by other segments in the city and by segments elsewhere as the demonstration spreads to other cities and becomes more assertive, disruptive and potentially violent. As resistance to the regime spreads, the regime deploys its military and security forces. These forces, drawn from resisting social segments and isolated from the rest of society, turn on the regime, and stop following the regime’s orders. This is what happened to the Shah of Iran in 1979; it is also what happened in Russia in 1917 or in Romania in 1989.

*The Goldman Sachs Conspiracy– The Real Dark Pool

Here is the Sequel to “Looking Behind the Curtain”

REITs Moving Next Door?

Fortress Investment appoints Daniel H. Mudd as Chief Executive Officer. Cellcom Israel announces Tal Raz has resigned as Chief Financial Officer. WSJ: Bondholders plan CIT rescue. Cuomo says Schwab faces fraud suit over its marketing and sales of auction-rate securities to clients. The Wall Street Journal reports U.S. banks have been charging off soured [...]

Google’s Q2 Statement Contains More Garbage Than It’s Search Results

June housing starts 582K vs. 530K consensus, prior revised to 562K from 532K, building permits 563K vs. 524K consensus. IBM blows through estimates, increases guidance, notes strengthening margins. Tractor Supply initiated at Buy at Goldman, target $57. Integrys Energy Services’ Canadian natural gas and power customer contract portfolio acquired by Shell Energy North America. JP [...]

Prescription for Disaster

The health care bill unveiled this week by the House of Representatives (with the full support of the Obama administration) is one of the worst pieces of legislation ever drafted. If passed, it will reduce the quality and increase the cost of health care in America. But more importantly, it will severely undermine our already weak economy. To burden a country currently in the throes of a violent recession with such a bureaucratic albatross clearly illustrates the scarcity of economic intelligence in Washington.

Bully Bullies Bankrupt Bank of America Boss

JPMorgan Chase posts 2Q profit, surpasses Street but CNBC’s Faber says that there are some questions about the quality of JPM’s earnings. Stocks are edging lower as an unexpected drop in new jobless claims and strong earnings from JPMorgan Chase were tempered by concern that CIT, a top lender to small businesses, could collapse. Federal [...]

Pricey Pork Chops, Do You Take Discover?

World markets buoyed by Intel, Goldman Sachs. Abbott Laboratories 2Q profit falls 3 percent. Industrial activity logs smaller-than-expected dip. Intel’s strong numbers suggest PC business on mend. JLM Pacific Epoch reports Taiwanese electronics manufacturer has begun mass production of China Unicom’s Apple 3G iPhone. Kaufamnn says it makes more sense for Dell to acquire, rather [...]

Given: GS Makes Money

Oppenheimer lowers Google estimates due to macro weakness. JPMorgan upgrades Prudential to Overweight. Southwest Air jet bound for Baltimore makes emergency landing at Charleston Yeager Airport after hole opens in fuselage. FT reports executives at GS sold almost $700mm worth of stock following the collapse of Lehman Brothers last September. Eurozone industry output up 0.5% [...]

Only in France: Workers Threaten to Blow Up Factory

The Financial Times reports today that French workers at a “failed French car supplier are threatening to blow up their factory unless Renault and PSA Peugeot Citroen stump up extra compensation. Employees of the engine parts maker New Fabris have rigged up gas canisters, which they say will be detonated on July 31 if the two carmakers fail to pay $42,000 to each of the 366 workers facing unemployment.”

Collins Stewart: It’s not an iPhone

Varian Semi upgraded to Buy at Soleil, target $30. Grundhofer could become chairman of Citibank NA, replacing Bill Rhodes. Meredith Whitney says banks are not prepared for double-digit unemployment and 13% unemployment a definite possibility. 2-10 year yield spread around at 241. NY Times reports house democrats plan surtax on individuals earning $280,000 and up [...]

Motion for Rehearing en Banc 7/09

More from the “Legal Terrorist” –his battle for release continues…

*The Irrational Free Markets that Are Never Wrong 7/09

the New copy of ‘New Laws of Global Economics’ is combined with this one by mistake. The old copy was missing pages.

Motion for Rehearing en Banc

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CME or ELX

UBS refuses to disclose identity of 52,000 secret account holders. AP source: General Motors emerges from bankruptcy protection. Sears getting ready for Christmas. Trulia says more U.S. home sellers cutting prices. Being rumored that Steve Jobs will attend the Q3 earnings conference call on Tuesday, July 21st at 2PM PT. At least 42 nonfinancial companies [...]

Minimum Wage, Maximum Stupidity

In a free market, demand is always a function of price: the higher the price, the lower the demand. What may surprise most politicians is that these rules apply equally to both prices and wages. When employers evaluate their labor and capital needs, cost is a primary factor. When the cost of hiring low-skilled workers moves higher, jobs are lost. Despite this, minimum wage hikes, like the one set to take effect later this month, are always seen as an act of governmental benevolence. Nothing could be further from the truth.

Crocus Krokus Smokus Economic Hokus Pokus

House Democrats look at taxing rich to pay for health care plan. First-time jobless claims drop to lowest level since January. Citigroup says its former chief financial officer and current chairman of Citi Holdings, Gary Crittenden, is leaving the company as part of a broader shuffling of management. G8/G5 seek Doha trade deal in 2010. [...]

Fiat Money in Death Throes

“Banking was conceived in iniquity and born in sin. The Bankers own the earth. Take it away from them, but leave them the power to create deposits, and with the flick of the pen they will create enough deposits to buy it back again. However, take away that power, and all the great fortunes like mine will disappear — as they ought to in order to make this a happier and better world to live in. But, if you wish to remain the slaves of Bankers and pay the cost of your own slavery, then let them continue to create deposits.”
Sir Josiah Stamp (1880-1941), one time governor of the Bank of England, in his Commencement Address at the University of Texas in 1927. Reportedly he was the second wealthiest individual in Britain.

Regulation, Uncertainty, Doubt, and Reduced Expectations

T. Boone Pickens scuttles plans to build the world’s biggest wind farm in the Texas. Obama arrives in Italian town of L’Aquila for G8 summit, leaders skip dollar debate, aim lower on climate change goals. Google’s new operating system to take on Microsoft. Government Web sites attacked, NoKo suspected. Oil near $62 on recovery doubts. [...]

Second Stimulus? California Hanging Paper?

Obama administration economic panel wants second stimulus, Obama says it’s a possibility. Merriman sees Coinstar / Universal litigation as buying opportunity for CSTR, with a target of $57-66. German manufacturing orders up 4.4% in May. Merrill upgrades APC, raises target to $57. DFS to offer $500mm in secondary offering. CFTC to consider position limits for [...]

The Dollar is the Reserve, But Let’s Settle in Renminbi Anyways

Oshkosh upgraded to Buy at KeyBanc, target $30. Monsanto estimates and target lowered by Jefferies, target $87. JWN upgraded to Neutral by Goldman. FDIC closes 7 banks over the weekend, 6 in Illinois. World Bank says recovery in 2010 is far from certain. Chinese Vice Foreign Minister says “dollar is still most important and major [...]

Martin vs Bureau of Prisons and Attorney General

Martin Armstrong continues his fight for justice in his case. He is called “Legal Terrorist” by many!

*The Counter Revolution of Iran

Is this the Start of a New Global Revolution?

Gold a Hold or a Fold?

SEPR’s SEP-225289 failed to meet primary efficacy endpoint & FDA puts Lunesta pediatric studies on hold. Citigroup cancels credit card deal with GE over price. European Central Bank likely to keep rates at 1%. Treasury to name 9 toxic asset managers. ENER initiated by JPMorgan at Overweight. Swiss franc falls on talk of foreign exchange [...]

No More Half Ticks in Bond Futes

FRPT down 35% after loss of $1B contract to OSK (up 30%). Microsoft’s Bing slowly taking searches from Google. Aeropostale expects strong back-to-school season. American Apparel receives notice from ICE that 30% of it’s workforce appears to be unauthorized to work in the US. Mitsubishi Financial Group and Morgan Stanley announce global IB joint venture. [...]