Still Think You Can Predict Bond Market Sell-Off? You're Already A Month Late.

NAV of total bond market is already down almost 2% in a month.

So says James B. Stewart here in The New York Times, who notes Bill Gross of PIMCO fame manages a corporate bond/MBS fund which is already down well over 10%:

The sell-off in fixed income began slowly on May 10, an otherwise uneventful day with no obvious catalyst for any change in sentiment. It picked up steam when Fed sources didn’t step forward to calm markets. Then, in comments to Congress on May 22, Mr. Bernanke said, “We could in the next few meetings take a step down in our pace of purchases.”

That set off alarm bells, in contrast with his prepared text, which gave no suggestion that the Fed’s policy would change so soon. And then, the minutes of the Fed’s May meeting suggested that some Fed governors were prepared to start tapering off bond purchases as soon as the Fed’s next meeting, which will be June 18 and 19. Near-panic selling in some markets ensued.

. . . the simplest and safest approach [may be] simply to park funds in a low-volatility money market fund and accept near-zero returns.

"Americans For A Conservative Direction" Isn't Conservative: It's A Mark Zuckerberg/Jeb Bush BiPartisan Front Group Trying To Ram Immigration Reform Down Our Throats

Breitbart had the story on May 7th, here, and the radio ads from "Americans For A Conservative Direction", which run incessantly during Rush Limbaugh's program, have gone through at least one major makeover which removes the recorded voices of Sen. Rubio and Rep. Ryan.

Wake up people: "Republican" does not mean "conservative", and Mark Zuckerberg of Facebook fame and fan of Barack Obama is the last person on earth I would think of when I'm asked to name a conservative.

You are being manipulated and lulled to sleep in order to pass a bill which will only favor Democrats and hurt Americans looking for jobs.

Republicans who are bipartisan are selling us down the river.

Unemployment Ticks Up To 7.6% In May

Average jobs added per month ticks up to 172,000 from 169,000 in last month's report.

The latest from the Bureau of Labor Statistics is here.

Unemployment in America has been above 7% since December 2008: 54 months. If Obama keeps this up he can beat the original Teflon president's string of 61 months of unemployment at 7% or above from December 1980 through December 1985.

Hey Obama! You Can't Stop What We're Thinking!

Hey Obama! Guess Where I'm Callin' From!

Lying ObamaCare Lies And The Liberals Who Tell Them

ObamaCare will force you to buy more expensive coverage than you willingly do now, according to this Wall Street Journal op-ed, here:

Liberals have spent years claiming that "rate shock" under the Affordable Care Act—the 20% to 30% average spike in insurance premiums that every independent analyst projects—is merely the political imagination of Republicans and the insurance industry. So they immediately claimed victory when California reported last month that the plans that will be available on the state's new insurance exchange next year would be cheaper than they are today.

Except now it emerges that California goosed the data to make it appear as if ObamaCare won't send costs aloft as the law's regulations and mandates kick in. It will, by a lot. And now liberals have suddenly switched to arguing that, sure, insurance will be more expensive but the new costs are justified. Needless to say that was not how Democrats sold health-care reform.

California reported that the rates would range from 2% above to 29% below the current market. "This is a home run for consumers in every region of California," said Peter Lee, the director of the state exchange. "These rates are way below the worst-case gloom-and-doom scenarios we have heard."

The Things You See On Wordpress

Here.

"It's not a recovery. It's not even normal growth. It's bad."

So says Edward Leamer, Director of the UCLA Anderson Forecast, here in The Los Angeles Times:

The country's tepid growth in its gross domestic product isn't creating enough good jobs to build a strong middle class, according to a UCLA report released Wednesday. ...

Real GDP growth — the value of goods and services produced after adjusting for inflation — is 15.4% below the 3% growth trend of past recoveries, wrote Edward Leamer . . ..

"It's not a recovery," he wrote. "It's not even normal growth. It's bad." ...

Young adults are facing staggering student loan debt that will force them to put off buying homes until later in life, said senior economist David Shulman.

Outstanding student loans have tripled since 2004, according to Federal Reserve Bank figures. In 2012, public and private student loan levels reached $966 billion.

"Never before have so many young people been saddled with so much non-mortgage debt, and that burden will keep them out of the home buying market for years to come," Shulman wrote.

Honest Liberal Calls This The Worst Consumer Recession In Modern History

Stephen Roach of Yale University, here, points out that the rate of growth in personal consumption is just 25% of what it used to be:

Over the 21 quarters since the beginning of 2008, real (inflation-adjusted) personal consumption has risen at an average annual rate of just 0.9%. That is by far the most protracted period of weakness in real US consumer demand since the end of World War II – and a massive slowdown from the pre-crisis pace of 3.6% annual real consumption growth from 1996 to 2007. ...

[T]he release of pent-up demand in the current cycle amounted to just 3% annualized growth in the five quarters from early 2010 to early 2011. Moreover, the strongest quarterly gain was a 4.1% increase in the fourth quarter of 2010.

This is a stunning result. The worst consumer recession in modern history, featuring a record collapse in durable-goods expenditures in 2008-2009, should have triggered an outsize surge of pent-up demand. Yet it did anything but that. Instead, the release of pent-up consumer demand was literally half that of previous business cycles.

How To Become Fat Like The Government

h/t Scott

Obama The Marxist Thinks The Middle Class Is His Greatest And Most Dangerous Enemy

"The most dangerous enemies of the dictatorship of the proletariat."

"The greatest internal enemy of the proletariat and the proletarian revolution."

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Impose a dearth of ammo for their guns, mediocritize their healthcare, impoverish them with unemployment, make them servile with food stamps and disability payments, destroy their incentive to save with artificially low interest rates, spy on them with cameras, wire taps, drones and email intercepts, make it too expensive to travel, or too humiliating, dumb them down with inadequate public school educations, reduce them to the level of the gutter in their speech and morals through ridicule of all standards of public discourse and thinking, and destroy all traditional conceptions in institutions from the Boy Scouts to the US military. Politicize everything, but threaten the wrong politics with the power of the State. Anesthetize with drugs. Make them hate the rich so they stop trying to be so. Meanwhile, party, and spend their money like it's never been spent before.

IRS Casts Wide Net Full Of 88 Employees In Scandal, One Claiming DC In Charge

CNN had the stories here on Friday:

The Internal Revenue Service has told House GOP investigators they have identified 88 IRS employees who may have documents relevant to the congressional investigation into targeting of conservative groups, according to a congressional source familiar with the investigation.

And here on Sunday:

One Cincinnati IRS employee interviewed by the Oversight Committee rejects the White House assertion (that the Cincinnati office was responsible) and points to Washington as being responsible for targeting effort (from 5/30 interview):

Q In early 2010, was there a time when you became aware of applications that referenced Tea Party or other conservative groups?

A In March of 2010, I was made aware.

******

Q Okay. Now, was there a point around this time period when [your supervisor] asked you to do a search for similar applications?

A Yes.

Q To the best of your recollection, when was this request made?

A Sometime in early March of 2010.

******

Q Did [your supervisor] give you any indication of the need for the search, any more context?

A He told me that Washington, D.C., wanted some cases.

******

Q So as of April 2010, these 40 cases were held at that moment in your group; is that right?

A Some were.

Q How many were held there?

A Less than 40. Some went to Washington, D.C.

Q Okay. How many went to Washington, D.C.?

A I sent seven.

******

Q So you prepared seven hard copy versions of the applications to go to Washington, D.C.?

A Correct.

******

Q Did he give you any sort of indication as to why he requested you to do that?

[…]

A He said Washington, D.C. wanted seven. Because at one point I believe I heard they were thinking 10, but it came down to seven. I said okay, seven.

Q How did you decide which seven were sent?

A Just the first seven.

Q The first seven to come into the system?

A Yes.

*****

Think Of It As 501(c)(4) For Recreational Purposes, Minus The 501

IRS' Lois Lerner Speedily Approved Obama's Brother's Charity, Retroactively 3 Years

Story here:

The National Legal and Policy Center filed an official complaint with the IRS in May 2011 asking why the foundation was being allowed to solicit tax-deductible contributions when it had not even applied for an IRS determination. In a New York Post article dated May 8, 2011, an officer of the foundation admitted, “We haven’t been able to find someone with the expertise” to apply for tax-exempt status.

Nevertheless, a month later, the Barack H. Obama Foundation had flown through the grueling application process. Lerner granted the organization a 501(c) determination and even gave it a retroactive tax exemption dating back to December 2008.

The group’s available paperwork suggests an extremely hurried application and approval process. For example, the group’s 990 filings for 2008 and 2009 were submitted to the IRS on May 30, 2011, and its 2010 filing was submitted on May 23, 2011.

Lerner signed the group’s approval on June 26, 2011.

It is illegal to operate for longer than 27 months without an IRS determination and solicit tax-deductible contributions.

If You Can't Pronounce "Apoplectic", Raise Your Hand

How To Destroy The Bourgeoisie: Swell The Proletariat, One Latino At A Time

“If Latinos sit out the election instead of saying, ‘We’re going to punish our enemies and we’re gonna reward our friends who stand with us on issues that are important to us,’ if they don’t see that kind of upsurge in voting in this election, then I think it’s going to be harder and that’s why I think it’s so important that people focus on voting on November 2.”

-- President Obama, quoted here October 25, 2010

Obama Is Eliminating The Middle Class, But Do You Know Why?

Based on how thorough-going are Obama's attacks on the middle class, I'd say it's all intentional, something the professor would not dare say if he wants to keep his career, so I'll say it for him since I don't have a career to save.

Summarized from an op-ed by Peter Morici, University of Maryland, here:

His immigration policy swells the ranks of visa-holders in skill-short areas like engineering as well as the ranks of semi-skilled immigrant workers, frustrating the middle-class aspirations of the working poor born in this country.

His massive expansion of student loans permits universities to jack up tuition . . . Students are graduating encumbered by massive debt and too few marketable skills. Broke and unemployed, they are not marrying and starting families—that shrinks the middle class. 

Despite the availability of loans, skyrocketing tuition mandates ever greater family contributions to finance college. This puts higher education further out of reach for many working class families, and fewer low income children are pursuing post-secondary education than in the past—that shrinks the middle class too.

The President has jacked up taxes on families earning more than $250,000. Unfortunately, most businesses in America are either proprietorships or pass through corporations that pay those higher individual, as opposed to corporate, tax rates, raising the cost of investing and expanding businesses—that spells fewer jobs for the middle class and those that aspire to its ranks.

Unable to push through Congress limits on CO2 emissions, President Obama has used executive orders and the EPA to impose limits by fiat. Unfortunately, those raise manufacturing costs, China has no such limits, and all this encourages business to outsource in China—again fewer jobs for the middle class and aspiring middle class.

Free trade agreements that permit trading partners to undervalue their currencies, subsidize exports and artificially under price their products on U.S. store shelves, health care mandates that raise the price of insuring employees instead of controlling costs, unnecessarily cumbersome regulations to run factories, mindless limits on developing U.S. oil reserves, and exporting abundant natural gas to countries that shut out U.S. products with high tariffs all encourage outsourcing, not just in manufacturing but for many supporting services too—yet again, fewer jobs for middle class Americans.

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“The lower middle-class,” in Marx’s words, “has no special class interests. Its liberation does not entail a break with the system of private property. Being unfitted for an independent part in the class struggle, it considers every decisive class struggle a blow at the community. The conditions of his own personal freedom, which do not entail a departure from the system of private property, are, in the eyes of the member of the lower middle-class, those under which the whole of society can be saved.”

And this is the very reason why the lower middle-class masses are the most dangerous enemies of the dictatorship of the proletariat. They represent a very strong section of society. Their special interests are absolutely incompatible with the economic disturbances which are the inevitable accompaniment of transitional periods.

The disturbance of credit cuts the ground from under their feet. They begin shouting for order, for the strengthening of credit, in such a way that every concession to them leads in effect to a complete restoration of the old order. ...

[Marx] wished to separate the Labour movement from all lower middle class elements, because the lower middle class attitude — attachment to the idea of private property, more or less open striving to uphold credit, terror of every fundamental social disturbance — is in practice the greatest internal enemy of the proletariat and the proletarian revolution.

-- Bela Kun, Pravda, May 4, 1918 (Marxists Internet Archive, here)

By 2008, IRS' 40ish Shulman No Longer Considered Himself Much Of A Midwesterner

Mlive.com had the story in 2008, here, capturing the Ohioan's distance from the heartland after years spent at Williams, Harvard and Georgetown, and in New York City:

Shulman, who grew up in Ohio, said Kalamazoo has a "neat downtown. Kalamazoo is a great town," he said. "I like the Midwest. I like down-to-earth people."

IRS' Doug Shulman, Arrogant Prick

Oops. How Could I Have Missed It? Lois Lerner Did The Mussolini.