*****************************************************************************
After generating $37.9 billion in cash, short and long-term equivalents in 2011, and a record $16 billion in Q4 alone (of which $11.8 billion in Long-Term Marketable Securities: Treasurys? Pretty soon Apple will be a bigger monetization force than the Fed), the company's total cash and equivalents horde is now just shy of $100 billion, or $97.6 billion. And with cash growing at 20% in the quarter, extrapolating into the future, means that the company will hit $1 trillion in cash by Q1 2015. Looked at otherwise, if Apple were a country, and its cash was equivalent to GDP, it would rank as the world's 58th largest economy, above such countries as Slovakia, Iraq, Luxembourg, and Syria. At least now we know where all that money that is not going to pay mortgages, is going.*****************************************************************************
This was sent to me after the Fed announcement yesterday.
At least gold rallied, as it should in the face of such news. The precious metal jumped more than 2% to $1,699 an ounce.
Dan Ferris e-mailed his comments on the situation earlier today…
When people are really scared, they buy cash, not gold. People sell gold for cash all the time. When I go to the coin store to buy Krugerrands, there's always a line of people with their arms full of gold jewelry and coins. They're all selling.
It's like Reverend Jim Jones and the People's Temple of Jonestown, Guyana – the original "drink the Kool-Aid" moment. Everything is wonderful… you're in an exotic land, learning from your charismatic leader about the paradise you and your family will soon inhabit.
Then one day, you wake up, and he's convinced you to force your kids to drink cyanide. And you've allowed him to brainwash you into drinking it, too. Before the day is over, everyone is dead. Any sane, rational person could have seen the whole affair would lead to no good, but few would have guessed it would have killed everyone involved.
It's the same way with paper money. Everything is wonderful… You're in the richest country on Earth, enjoying the highest standard of living (even if you're described as "poor"). Your charismatic leader tells you taking more from rich people and putting 45 million people on foodstamps will make the country stronger. You believe him because it's the easy, lazy thing to do. Or maybe you don't, but after all, what can you do?
Then one day, you wake up, and the government is $15 trillion in debt, with tens of trillions of dollars more in present value of future liabilities. You're scared, so you do what they tell you. You drink the Kool-Aid and buy Treasurys. That's the fatal mistake… It won't be long now… Say adios to all you've worked for. It's on its way to money heaven.
*******************************************************************************
LA Military Exercises
LOS ANGELES (CNS) - Joint military training exercises will be held evenings in downtown Los Angeles through Thursday, according to the Los Angeles Police Department.
The LAPD will be providing support for the exercises, which will also be held in other portions of the greater Los Angeles area, police said.
Training sites ``have been carefully selected to ensure the event does not negatively impact the citizens of Los Angeles and their daily routine,'' a department official said.
The training, which a department official said would involve helicopters, has been coordinated with local authorities and owners of the training sites, police said.
Police said safety precautions have been taken to prevent risk to the general public and military personnel involved.
The exercises are closed to the public, police said.
The exercises are designed to ensure the military's ability to operate in urban environments, prepare forces for upcoming overseas deployments, and meet mandatory training certification requirements, police said.
Posted by David Perez
*****************************************************************************
Nine Words Women Use
NINE WORDS WOMEN ALWAYS USE
(1) Fine : This is the word women use to end an argument when they are right and you need to shut up.
(2) Five Minutes : If she is getting dressed, this means a half an hour. Five minutes is only five minutes if you have just been given five more minutes to watch the game before helping around the house.
(3) Nothing : This is the calm before the storm. This means something, and you should be on your toes Arguments that begin with nothing usually end in fine.
(4) Go Ahead : This is a dare, not permission. Don't Do It!
(5) Loud Sigh : This is actually a word, but is a non-verbal statement often misunderstood by men. A loud sigh means she thinks you are an idiot and wonders why she is wasting her time standing here and arguing with you about nothing. (Refer back to # 3 for the meaning of nothing.)
(6) That's Okay : This is one of the most dangerous statements a woman can make to a man. That's okay means she wants to think long and hard before deciding how and when you will pay for your mistake.
(7) Thanks : A woman is thanking you, do not question, or faint. Just say you're welcome. (I want to add in a clause here - This is true, unless she says 'Thanks a lot' - that is PURE sarcasm and she is not thanking you at all. DO NOT say 'you're welcome'. That will bring on a 'whatever').
(8) Whatever : Is a woman's way of saying F*** YOU!
(9) Don't worry about it, I got it : Another dangerous statement, meaning this is something that a woman has told a man to do several times, but is now doing it herself. This will later result in a man asking 'What's wrong?' For the woman's response, refer to # 3.
******************************************************************************
Is the Government Going to Crash the Stock Market?
By Jeff Clark
Thursday, January 26, 2012
OK all you conspiracy theorists… dust off your aluminum foil hats and get out your J.D. Salinger novels. The government is going to push stock prices lower.
The U.S. Treasury is going to be auctioning off another series of 30-year bonds on February 9. If this auction goes off like the last three have, stock prices are in for a rough time. Stocks sold off ahead of each of the three previous 30-year U.S. Treasury bond auctions.
Now normally, I'm not a big believer in the government manipulation of stock prices. It probably does happen – just not to the extent that most of the folks in the "ham-radio" community think it does.
But let's face it… The government needs investors to buy its bonds to help keep interest rates low. And what better way to encourage demand in bonds than to orchestrate a stock market selloff just ahead of a bond auction?
Think about this…
The government auctioned off $13 billion in 30-year bonds on November 10. The S&P 500 peaked above 1,280 just 10 days prior… and then bottomed at 1,230 the day before the auction.
In December, the S&P 500 hit 1,260 early in the month. Then it declined 4% in five trading days… bottoming at 1,210 on December 14 – the day the U.S. Treasury auctioned $16 billion in 30-year bonds.
January's action was less obvious. As all conspiracy advocates know, it's just like the government to try to be less obvious. Stocks didn't decline much ahead of the January 12 auction of $13 billion in 30-year bonds. But the market did fall hard the morning of the auction.
So there you have it… Three auctions… three stock market drops.
Interest rates have been rising recently as folks have taken money out of Treasurys in favor of better returns in the stock market. But the Treasury needs to somehow motivate investors to bid for at least $13 billion in 30-year bonds on February 9. I can't think of a better way to coax investors back into the Treasury market than to have stocks fall hard in the early days of February.
Normally, it would seem absurd to think the government is actively manipulating stock prices. But given all the shenanigans the Fed has pulled over the past three years – and given the stock market action just before the past three bond auctions – it's almost absurd not to consider the possibility.
The market is already poised for at least a short-term pullback. Investor sentiment (a contrary indicator) is overwhelmingly bullish. Stocks are extended to the upside after rallying 5% already this month. And the Volatility Index (or "VIX") is on the verge of reversing higher.
The upcoming Treasury bond auction is just one more reason – albeit a bit of a conspiracy theory – to be a little cautious with stocks here.
Of course, once we get the February 9 auction out of the way, the stock market rally can continue. And we can get back to more important things… like looking for President Kennedy's real assassin.
Best regards and good trading,
Jeff Clark
No comments:
Post a Comment