Food stamp recipients decline 2.7% in April 2014 from a year ago

Total recipients in April 2014 ticked up from the month earlier to 46,247,450 but remain down from 47,548,577 a year prior.

Bob Brinker was right in March 2003, but not until May 2009 at the earliest

Bob Brinker's gain since March 2003 when he called for his followers to fully invest in the stock market has been an impressive 7.14% per annum inflation-adjusted, on average, in the S&P500 index through March 2014.

Things didn't look anywhere near that good in April 2009, however, when his  return was still -0.45% per annum, inflation-adjusted, on average, for the 6 years plus one month. His returns had plunged at their worst to -2.32% per annum just the month before, through March 2009, because of the market crash, which of course he never saw coming and he never predicted. Bob remained fully invested into the teeth of the 2008-2009 banking apocalypse cum financial panic, and never told his followers to sell, as did Jim Cramer, infamously, the Monday after TARP was signed into law by President George W. Bush on October 3, 2008, a Friday, on national television no less. Who needs Monday morning coffee with that kind of news on NBC? I say Bob Brinker gets a lot of credit for that courage, and Cramer gets nothing but ridicule.

Bob Brinker's advice began to turn positive again in May 2009, as the stock market began to recover with the suspension of mark to market rules by the SEC in late March. Brinker never told anyone to get out of the markets, but soldiered on to where we are today. Was it prescience? Bull-headedness? Luck? Faith?

Here's what I think it was: Bob believes in secular markets, and he knew the secular high in 2000 was not matched in 2007 on an inflation-adjusted basis (1753), so there was no need for caution even though there might be a big correction. The financial collapse made him look like a fool for the size of it, but he knows that today even at 1967 the S&P500 remains well off the real 2000 high of 2045. We could just as easily get a big correction here before we march on to retest that real high.

Either way the market should retest the former high before the secular bear comes to an end, which means we have a bit more to go in point terms, but not very much.

I'm expecting a stock market sell order from Bob Brinker in the not very distant future as we get closer to 2045.

Anyone wanna bet we get as high as 2249?

h/t politicalcalculations.blogspot.com

Important inflation-adjusted milestones in the S&P500 index: 75 years of no progress have happened before

1967.57 Sunday, July 13, 2014

1752.10 October 1, 2013
  846.80 March 1, 2009
1753.10 October 1, 2007
1087.54 February 1, 2003
1767.00 February 1, 2001
2045.09 August 1, 2000
1727.35 December 1, 1998
1054.18 October 1, 1996
  841.39 June 1, 1995
  716.77 January 1, 1992
  266.94 July 1, 1982
  713.70 December 1, 1968
  430.68 November 1, 1958
  266.47 July 1, 1954
    83.44 June 1, 1932
  430.42 September 1, 1929
    83.51 December 1, 1920
  278.75 September 1, 1906
    83.77 January 1, 1878
    64.37 June 1, 1877
    83.38 February 1, 1871

With every child you don't have . . .

. . . the country dies a little bit more because of you.

America is already well on the way to being completely dead because of all the children we stopped having since the 1960s, and the irony of it is that the parents of the Baby Boomers told their children not to have so many children. Trust me, I know from personal experience. So why would the children of the Boomers do anything but the same? And they have.

The greatest generation were liberals, and their death wish is coming true in spades, visiting their iniquity on the third and fourth generations of them that hate me, saith the Lord. They've not only spent your inheritance, they've also made sure there's no one to inherit it.

I hate them all.

Japan poised to rise from the dead: nuclear plants finally to begin restart after 2011 Fukushima disaster

The Japan Times reports here:

The Nuclear Regulation Authority is moving toward the first reactor restart under its new safety requirements since the Fukushima disaster started, giving impetus to bond sales by utilities as borrowing costs plunge. ...

“The fact that the government is in favor of restarting reactors is positive because it shows a firm commitment toward the electric power companies,” said Yasuhiro Matsumoto, the senior manager for the financial services industry at ABeam Consulting Ltd. “Once one restart is approved, others will come one after another, and the pace may quicken. You can’t approve one but turn down others.” ...

All 48 of Japan’s functioning commercial reactors are idled for safety checks after a tsunami wrecked Tokyo Electric Power Co.’s Fukushima No. 1 plant on March 11, 2011, and caused the worst nuclear crisis since Chernobyl in 1986.

Minus 2.9% GDP has never occurred outside of a recession: They're ignoring it like 2008

Jeffrey Snider, here:

The most recent example of this, in a larger scale setting, was the first quarter's GDP estimate. Rather than embrace the information that might be relevant to what is actually taking place, the entire orthodox economics profession is busy trying to convince everyone that there was nothing useful in that result. It was, as has been repeated over and over, an aberration of no significant value; an error term to be denied a full place in the analysis of where the economy might actually be headed.

A GDP figure of nearly minus three percent is decidedly rare, however, so unusual that it has never taken place outside of a recession. But that is precisely what we are supposed to ignore when being counselled to take no notice of it. Actually, counsel is too slight and too soft of a word, as what is really occurring is nothing short of a demand. The surety at which the orthodox profession, especially those of monetary disposition, exercises such confidence about forecasting is very much descriptive of ideology rather than science.

Ambrose Evans-Pritchard oddly unaware high CO2 coincides with 17yr+ pause in global warming

Ambrose Evans-Pritchard, here:

[Shale] has whittled down the US current account deficit, now just 2pc of GDP [approximately $340 billion?]. Cheap gas costs - a third of EU prices and a quarter of Asian prices - has brought US industry back from near death, perhaps for long enough to give America another two decades of superpower ascendancy. But making money out of shale is another matter.

Even if the fossil companies navigate the next global downturn more or less intact, they are in the untenable position of booking vast assets that can never be burned without violating global accords on climate change.

The IEA says that two-thirds of their reserves become fictional if there is a binding deal limit to CO2 levels to 450 particles per million (ppm), the maximum deemed necessary to stop the planet rising more than two degrees centigrade above pre-industrial levels. It crossed 400 ppm threshold this spring, the highest in more than 800,000 years.

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Ambrose's problem is that he has insufficient skepticism: There is no binding deal, and we couldn't stop developing nations from spewing even if we wanted to. Ambrose has become a co-dependent in the climate scare and is trafficking in last year's news:

If CO2 was at the same level as of 800,000 years ago, why are we cooler by 5-10 degrees and sea levels lower by 75-120 feet? This would indicate there’s no CO2/temp/sea level relationship.

Indeed, as the picture has unfolded in the last year, we are well past the 17 year milestone for no temperature anomaly. All that extra CO2 is doing nothing, except maybe producing too much vegetation.

So I bought a lawn tractor to mow it all down.

About market timing on the way down, Mish can be very wise

Here:

History suggests bear markets will destroy many bears, some by turning bullish at the top, others by turning bullish way too soon after a correction.

Watch those valuation measures on the way down, folks, be patient, and keep your powder dry. 

What unites some Christians and libertarians is radically unconservative: belief in human change for the better

Here's Christian libertarian economist David Brat, Cantor-killer:

"Preach the gospel and change hearts and souls. If we make all of the people good, markets will be good. Markets are made up of people. Supply and Demand are curves, but they are also people. Nothing else. If markets are bad, which they are, that means people are bad, which they are. Want good markets? Change the people. If there are not nervous twitches in the pews when we preach, then we are not doing our jobs."

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Conservatives generally haven't believed human nature changes for the better, but it is central to the Catholic doctrine of grace that grace infuses the baptized and changes them, and the belief is central also to the doctrine of some protestants.

These were called Schwaermer by Luther, "enthusiasts".

In politics we called them ideologues.

Josh Brown must be nuts: valuations are high, markets are exuberant and growth is as pathetic as 2007

Is Ritholtz paying him to say this stuff?

Here:

"Valuation is not going to tell you when the run ends. We were reasonably valued in 2007. The economy fell off the cliff," he said. Brown also said he agreed with Yardeni that there was "no sign of a recession."

"Those are usually what coincide with the end of a bull market," he said. "I'm not telling you P/E expansion takes us significantly higher, but earnings growth could, revenue growth could, and in the second half of this year, we should be seeing a meaningful uptick based on what analysts are expecting at the moment. So, I think it's smarter to be constructive than to be worried about the next 5 percent in either direction."

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In late September 2007 the Shiller p/e was high, in the range of 26/27, the S&P500 was making new all time highs, and 1Q2007 GDP had just been finalized at 0.6% after a 2.1% and a 1.1% print for the two previous quarters of 2006. That's growth of more or less just 1.2% over three quarters.

The 3.8% 3rd estimate for Q2 at the time arguably contributed to the blow off market top at 1565 within days of the announcement, but growth in the economy had been pathetic up to that point. People thought things were looking up again, but within a year we were almost scraping people off the sidewalks of Wall Street.

Today valuations are similarly high at 26, the market has made new all time highs, and we've just booked a horrible NEGATIVE GDP for the first quarter. The average of the last three quarters is now the same as it was in late September 2007: 1.2%.

Valuations are reasonable? There's no sign of a recession? Both may very well be coinciding right now to signal the end of a bull market, just like in 2007.

Sorry Mark Judge, the original punk rockers of Christendom were Lutherans

Why can't Mark Judge write a decent opener? He starts off, here, with this:

"With the takeover of liberalism and secularism in the West, Catholicism is now a subculture."

What he means is:

"With the takeover of the West by liberalism and secularism, Catholicism is now reduced to a subculture."

And it's too bad, too, because the rest of what he writes is worth reading . . . if only he could imagine a subculture. You know, like Lutherans. The original punk rockers of Christendom, who shouted like Joey Ramone 

I don't like sacraments

I don't like celibates

I don't like priests and nuns

I don't like what the pope has done

Well I'm against it

The truth is Catholics could never be punkers and never have been. Being a punker requires being an individual, and saying no to something, like disco and rap, and instead Catholics have been busy for centuries saying yes to everyone and everything, absorbing every culture and every cult under the aegis of their big tent. It's been the secret to their success.

To take only the latest example, they see illegals coming across the border and immediately want to welcome the stranger, give them a shower, a meal and a place to sleep. The protestants see this and want to kick their asses all the way back to Guatemala.

Catholics aren't really against anything, and never have been.

That's why if they get their way, America is finished.

I'm against it. 

Something about riskier bonds for Bob Brinker listeners to think about

Seen here:

"The sensitivity of a bond to interest rate increases is determined by the time to maturity, not its credit rating."

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Some of Bob Brinker's followers/critics think his recent move away from all bonds with durations beyond one year was a big mistake.

If there's a bond run, which becomes more likely when bonds are overvalued, which they arguably are, selling becomes more difficult than people realize. Steep losses would be almost certain, but it is also likely that the ultra short duration bonds would recover much more quickly, and perhaps not just because they are ultra short. People might actually plow into them as they did with bonds in general in the wake of the financial panic of 2008, boosting prices.

I'll go out on a limb and predict the S&P500 maximum market high for this cycle since 2009

I'll predict 2249.60 for an S&P500 market high before the market begins to revert to mean. From 1977 that's not quite 14% more to go, or 272 more points!

But my money is in cash!

John Hope Bryant is an ignoramus about Jesus and poverty

Seen here:

'The Greek word for poor, as used by Jesus, is poucos, which means non-productivity. To be poor doesn’t mean you don’t have anything; it means you aren’t doing anything. Poverty is cured by hard work. “Lazy hands make a man poor” (Proverbs 10/4). The Bible says, “How long will you lie there, you sluggard? When will you get up from your sleep? A little sleep, a little slumber, a little folding of the hands to rest – and poverty will come on you like a bandit, and scarcity like an armed man.” Proverbs 6/10-11.'

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Actually the Greek word is properly transliterated "ptochos", not "poucos". And Bryant couldn't be more wrong about how the poor behave. The truly poor don't lay about and do nothing. The root of the word signifies that the poor do plenty . . . of crouching and begging.

But the worst thing is trying to baptize Jesus in this enterprise of viewing poverty as an evil, a problem to be solved. Unfortunately in the case of Jesus it's exactly the opposite of what Bryant thinks.

Frankly, Jesus prized poverty and required it as a condition of discipleship: "So likewise, whosoever he be of you that forsaketh not all that he hath, he cannot be my disciple" (Luke 14:33).

John Hope Bryant is all over the place in a media onslaught spreading his silly message about the poor saving capitalism, nevermind they can't save for the next month let alone the system most notably conceptualized by Adam Smith, a man feeble in neither mind nor money.

Expect more of this pap from Bryant and your federal government, through his connection with the Consumer Financial Protection Bureau, a propaganda project of the Dodd-Frank bill.

The Bureau's current director, by the way, was an unconstitutional recess appointment by the president according to a Supreme Court ruling just in recent days.

GDP less interest payments on the debt 2006-2012 is net positive $44.1 billion, that's all

Nominal GDP, not seasonally adjusted, for the seven years 2006-2012 totals $2,941.8 billion.

Nominal interest payments on the debt for all the same fiscal years totals $2,897.7 billion.

And people wonder why we're not growing when all we've got is a measly $44.1 billion to show for it.

Interest payments on the massive debt of $17,609 billion are gobbling up economic growth.

Think of it this way. The seven year average interest payment on the debt, $414 billion annually, represents a simple interest rate of 2.35% on today's balance. That's what the economic growth rate should look like. Instead, last quarter it was -2.9%, down almost $74 billion seasonally adjusted, and negative $118 billion real.

The huge public debt is the drag on the economy, and would be the knee on the chest of the heart attack victim if the Federal Reserve didn't suppress interest rates the way it is doing. 

For the 1st time in my adult life, I am proud of Joan Rivers

So says Drez Zipper, here.

Presidents ranked by average jobs created Q1 to Q2 since the 1970s

From total nonfarm not seasonally adjusted, average percentage achieved:

1. Clinton +2.22%

2. Reagan +2.07%

3. Bush 1  +1.69% (four years, accepts Profiles in Courage Award for raising taxes)

4. Obama  +1.68% (six years, blames drought, winter weather, hurricanes, earthquakes)

5. Bush 2  +1.38%.

The definition of a jobs boom Q1 to Q2 is not the just reported +2.06%

Best jobs booms for each president Q1 to Q2 since the 1970s, from total non farm employment, not seasonally adjusted:

1. Reagan in 1984: +2.69%

2. Clinton in 1994: +2.56%

3. Bush 2  in 2005: +2.14%

4. Obama  in 2011: +2.09%

5. Bush 1  in 1989: +1.92%.  

Total nonfarm is up 288,000 in June: Why I'm yawning

Unemployment in June falls to 6.1% and total non farm employment is up 288,000, seasonally adjusted, to finish the second quarter. Not seasonally adjusted, the figure is an impressive sounding 582,000 newly employed.

So Q1 GDP at -2.9% is meaningless, right? We're really doing much much better than that number indicates, yes?

That's what fellow traveler Rex Nutting thinks over at MarketWatch in "The payrolls report is right, and GDP isn't". He goes so far as to say that even 2008 negative GDP was meaningless:

"Take, for instance, the first quarter of 2008, just as the Great Recession began. The first estimate of quarterly GDP was 0.6% growth. In mid-2008, that was revised to 0.9%. A year later, however, GDP was revised to a 0.7% decline. The most recent estimate is that the economy shrank 2.7%. It’s madness to think this number means anything."

Spoken like a true believer in the success rate of Soviet 5-year plans. At least "shrank" shows he's educated.

And even John Silvia of Wells Fargo says the jobs report shows "economic growth is far better than the Q1 GDP report indicates".

Oh really? I don't think so. The employment gains aren't telling us anything indicative of a break out to the upside either for jobs or for the economy. To see this you have to stop comparing apples to oranges by comparing monthly change in jobs to GDP which is measured on a quarterly basis.

When you look at the jobs figures on a quarterly basis, you see that total nonfarm always takes a dive in Q1, good economy or bad economy, and it always rebounds in Q2, good economy or bad economy. It tells you almost nothing about the economic trend that in Q2 you always get an increase. So we should expect the jobs numbers to go up in the spring, and they always do. Go all the way back in the not seasonally adjusted data to 1981 and you will see that this is true, in the awful year 1982 when the gain was a lousy 1.0%, and even in the dreadful year of 2009. When 2009 was over there were nearly 30 million first time claims for unemployment, yet between Q1 and Q2 that year total nonfarm went up 138,000, a paltry 0.1% but still completely counter trend. The worst was over. Not.

In 2014 we have just witnessed total nonfarm go up 2.805 million jobs between the end of Q1 and the end of Q2, the most since Obama has been president. But guess what? That's an increase of barely 2.06%. Obama's actually done better, for example in 2011 when the increase was 2.09%, his best Q1 to Q2 gain on record. But we don't point to that number today as a sign of the economy turning around at that time, especially since the measure has been weaker since, and GDP has actually gone negative since.

It's instructive to compare Obama's recent 2.06% quarter on quarter gain with past presidents' records for the same period from winter to spring.

How high was the best record Q1 to Q2 since 1980, for example? You would be surprised that it's barely 29% higher than Obama's best to date. Reagan, of boom fame, holds top spot at just 2.69% in 1984. Clinton comes in second with 2.56% in 1994. George W. Bush comes in third with 2.14% in 2005. Obama comes in fourth in 2011 at 2.09%. And George Herbert Walker Bush brings up the rear in 1989 at 1.92%.

But the best record isn't a very good predictor of economic growth ranking. Best GDP to worst was Clinton, Reagan, Bush I, Bush II, and then Obama (so far), not Reagan, Clinton, Bush II, Obama, Bush I.

The overall jobs record between Q1 and Q2 seems like a better predictor of likely economic growth ranking. Clinton, first for GDP, averaged 2.22% over eight years while Reagan, second, averaged 2.07% for the increase in total nonfarm between the winter and the spring. In third is George Herbert Walker Bush at 1.69% (third also for GDP), followed closely by Obama at 1.68% (last for GDP so far) and George W. Bush bringing up the rear at 1.3% (fourth for GDP).

It's entirely possible that Obama already peaked for jobs increases from winter to spring in 2011. Each of the other four presidents peaked early or mid-term. It would be unusual for Obama to do better this late in his term. And so far he hasn't, and has just two more opportunities to prove me wrong.

Overall Obama has lost his momentum, his aura and his credibility, and his lately shrill tone sounds more like a dying bunny the cat got in the backyard than a statesman presiding over the final years of a successful term. I think that means it's likely Obama's overall jobs performance is going to remain weak, as will his GDP.

Jobless claims now average 326,000 weekly in the first half of 2014, down 7% from 2013

Jobless claims for the first 26 weeks of 2014 now average 326,000 weekly, not seasonally adjusted. For the same period last year the average was 352,000.

The current rate implies 16.95 million claims in 2014. In 2013 actual claims not seasonally adjusted were 17.75 million.

The best years in recent memory were under George W. Bush: 16.2 million claims in 2006, and 16.7 million claims in 2007.

First time claims for unemployment had been as high as 29.5 million in 2009.