Dim bulb Rush Limbaugh doesn't know what an L.E.D. is

Transcript here.

Does anyone really know what is the level of stock buybacks?

The LA Times reported yesterday here that the level was $598 billion in 2013.

But The Washington Post reported last December here that is was $754 billion, not counting a big buyback announced by Boeing.

How do they know?

2Q2014 GDP, second estimate, at 4.2% vs. 4.0% in advance estimate and -2.1% in 1Q2014

If today's report of GDP holds up in the final estimate of 2Q2014 GDP about a month from now, Obama will have racked up just three quarters in his entire presidency with prints in the fours:

4Q2011  4.6%

3Q2013  4.5%

2Q2014  4.2%.

Here's Obama's full record incorporating the latest annual revisions from bea.gov at the end of July and the annual revisions from the summer of 2013:

2009: -5.4, -0.4,  1.3,  3.9

2010:  1.6,   3.9,  2.8,  2.5

2011: -1.5,   2.9,  0.8,  4.6

2012:  2.3,   1.6,  2.5,  0.1

2013:  2.7,   1.8,  4.5,  3.5

2014: -2.1,   4.2.

Average report after 22 quarters: 1.7%.

Pathetic!

Congressional Budget Office quietly predicts 1.5% real 2014 GDP one day before BEA.gov announcement

Is 2Q2014 GDP of 4% just a memory?

The Canadian Broadcasting Corporation (!) had the story here:

"The Congressional Budget Office on Wednesday forecast that the U.S. economy will grow by just 1.5 per cent in 2014, undermined by a poor performance during the first three months of the year."

Why S&P500 2000.02 isn't the all time high

Because adjusted for inflation the August 2000 high was 2048.10, so we remain 48.08 points away from the all time high, or another 2.3%.

S&P500 makes historic close above 2000 yesterday

The housing riot: Average time in mortgage delinquency is 2.7 years nationwide, 4 years in New York State

Lawlessness and mayhem isn't just for po folk in Ferguson, Missouri, where law enforcement was overwhelmed by the bad actors doing millions of dollars in damage on the streets. Same goes for freeloaders in judicial mortgage states like New York where the authorities do not have the capacity to deal with the widespread problem of non-payment.

From Michael Sincere, here:

Millions of homeowners are already seriously delinquent. “The average length of time that houses remain delinquent nationwide is 995 days,” [Keith] Jurow says. “The worst culprit is New York State. The average delinquency period there is four years.” Many homeowners are aware that banks are not in a rush to file foreclosures, so they stay in their houses mortgage-free. “The banks are not initiating foreclosure proceedings because once the servicer forecloses, the lender takes a hit on earnings,” Jurow says. “They also have to manage the property, and most banks don’t want to do that.”

Postmodernism at The Atlantic, continued, where the seven-day week is completely man-made

What's completely man-made is this account of the week, "Where the Five-Day Workweek Came From", in which long observation of four lunar phases of 7.4 days in length over millennia means nothing to an architect, who is, fittingly, cited as an authority, as in architects making stuff up.

The author, one Philip Sopher, an economics graduate from Princeton who should know his dates better, is completely ignorant of the Julian calendar reform of the Roman market day cycle of eight days to the more natural seven, which together with its other changes in 46 BC helped remove ever after in the West, not add, deliberate human meddling with the calendar, a common problem at the time of Caesar, here:

“Seven days,” wrote Witold Rybczynski in the August 1991 issue of The Atlantic, “is not natural because no natural phenomenon occurs every seven days.” The year marks one revolution of the Earth around the sun. Months, supposedly, mark the time between full moons.  The seven-day week, however, is completely man-made.

If it’s man-made, can’t man unmake it? For all the talk of how freeing it’d be to shave a day or two off the five-day workweek, little attention has been paid to where the weekly calendar came from. Understanding the sometimes arbitrary origins of the modern workweek might inform the movement to shorten it.

... At the very latest, the seven-day week was firmly entrenched in the Western calendar about 250 years before Christ was born.

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Little attention, indeed.

Federal Reserve banks rob the people a minimum $400 billion annually through ZIRP, so far have paid just $125 billion in fines for financial crisis crimes

Bank of America is a chief offender appearing in the lists. The latest fine against it, among others, is detailed here:

"The Bank of America deal announced Thursday, the government’s largest-ever settlement with a single company, means the nation’s second-biggest bank will shell out $16.65 billion over allegations that it knowingly sold toxic mortgages to investors. ... The sum surpasses Bank of America’s entire profits last year and is significantly higher than the $13 billion it offered during negotiations in July."

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The story doesn't mention the nearly $90 billion paid out by the FDIC Deposit Insurance Fund for the failed banks which have numbered over 500 since 2007, the funds for which are supplied by insurance premiums extorted from the honest banks. But it is the depositors who end up paying for that cost of doing business in the end. Nor does it ruminate on the effects of the Federal Reserve's Zero Interest Rate Policy, which allows those first in line for money to get it rock bottom cheap and speculate with it. The financial sector now rivals the household sector in stock ownership. Savers meanwhile get the crumbs which fall from their masters' table. Ten years prior to 2007 the country was finally beginning to recover from a decade long Savings and Loan crisis which witnessed over a thousand institutions fail, costing the taxpayers directly about $130 billion. No sooner was that over in 1995 when the wizards of smart conspired to abolish the Glass-Steagall banking regime in 1999, precipitating the recent panic less than a decade later. And, of course, the Great Depression after 1929 followed closely on the heels of the establishment of the Federal Reserve itself in 1913, signed into law by one Woodrow Wilson, Ph.D., Johns Hopkins University. Over 700 banks failed in 1930, and 9,000 over the ensuing decade. The professionals have a long history of failure. The prudent avoid them.

S&P500 posts its 28th record close in 2014 at 1992

That's one new record high every 1.18 weeks to date, down from just slightly more than one per week in 2013, or one new high every 1.02 weeks.

Sentier Research: Real Median Annual Household Income Down 3.1% From 2009, 4.8% From 2007, 5.9% From 2000

The metric has recovered between 2011 and 2014 by 3.8%, so things could be a lot worse. But the report means incomes remain in a depression now fourteen years long and counting.

Read the full report here.

Missouri governor calls in the National Guard to protect . . . the police

The New York Times reports here in "National Guard Troops Fail to Quell Unrest in Ferguson":

"Early Monday, after a new spate of unrest, Gov. Jay Nixon said he was bringing in the National Guard. Hours later, he said that he was lifting the curfew and that the Guard would have only a limited role, protecting the police command post. ... at the police command post, National Guard members in Army fatigues, some with military police patches on their uniforms, stood ready but never entered the area where protesters were marching. State and local law enforcement authorities oversaw operations there."

The market crash is not coming with signs to be observed

John Hussman, here:

"Compressed risk premiums normalize in spikes.

"Those spikes will make it quite difficult to exit in the nice, orderly manner that speculators seem to imagine will be possible. Nor are readily observable warnings (beyond those we already observe) likely to provide a clear exit signal. Galbraith reminds us that the 1929 market crash did not have observable catalysts. Rather, his description is very much in line with the view that the market crashed first, and the underlying economic strains emerged later: 'the crash did not come – as some have suggested – because the market suddenly became aware that a serious depression was in the offing. A depression, serious or otherwise, could not be foreseen when the market fell.'"

Grand Rapids Community College students take less classes, learn fewer knowledge: VP for Finance and Administration copes with declining revenue

Story at mlive.com here:

Lisa Freiburger, vice president for finance and administration, didn’t have an estimate on the number of vacant positions the college will delay filling or leave unfilled altogether. ... Freiburger said an improving economy is likely one of the factors causing enrollment to decline. In addition to a declining headcount, students are also taking fewer courses. “We are seeing students take less classes, and I assume those students are perhaps working more than they might have been,” she said. “Clearly, we’re down farther than we anticipated, but we are managing that drop and related loss in revenue.”

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Maybe GRCC could save money by firing people who speak English goodier.

Gold bug Ralph Benko thinks Richard Nixon had to resign over the closing of the gold window!

I like Ralph Benko. Ralph Benko often makes important arguments on behalf of the gold standard. But when he tries to force everything in the universe to be interpreted through the lens of it you know you have met an ideologue who has become unhinged from reality. Which is why Forbes is a good place for him.

His latest screed here is a mere flight of fantasy, imagining Richard Nixon was forced to resign over the closing of the gold window in 1971. Had he presented it as such, it would have entertained and illumined, even pleased. Instead, its talk of correlation only annoys, the way a chart reader plots two things on a graph and yells 'See! See! They both go up together!' Against Benko, Pat Buchanan may be forgiven for ignoring what didn't exist, just as Nixon's enemies ignored it, except in the fever camps of utopianism.

Benko makes Thomas Paine's opinions about gold a prophecy reaching 200 years into the future where gold becomes Nemesis and the end of Bretton Woods Hubris. Covering up Watergate? Well, simply an instrumental little detail:

"The House Judiciary Committee’s charges and the Connally indictment uncannily fulfill a prophecy by Tom Paine. ... Connally was acquitted on the charges of graft and perjury.  Later he underwent bankruptcy before dying in semi-disgrace.  Nixon resigned rather than undergoing impeachment, also living out his life in disgraced political exile.   The spirit of Paine’s declaration was fulfilled in both cases. Connally and Nixon engineered this violation, abandoning the good, precious-metal, money contemplated by the Constitution. Nemesis followed hubris. The closing of the 'gold window' was based, by Connolly, on deeply wrong premises.  It was sold to the public, by Nixon, on deeply false promises."

Methinks Tom Paine himself would be a little embarrassed at the almost religious regard with which some of his present day followers come to what he has left behind for us on paper.

He'd probably call them Burkeans.

Missouri governor calls in National Guard, vindicating need for militarized police to stop riots in Ferguson

Reported here, with this excellent comment appended by a reader:

"Now we learn the National Guard is being called in. More than looking like the military, which the locals cops were accused of doing, these fellows 'are' the military. If this doesn't vindicate the local cops accused of being over the top in their response, nothing will."

Ross Douthat is insane, doesn't say a word about millions of dollars in damage done by rioters in Ferguson, MO

Ross Douthat in The New York Times calls for taking away the militarized components of police departments, here.

But Ferguson, MO, police effectively watched on the sidelines as millions of dollars in damages were inflicted on property owners by rioters there, and didn't use their hardware to stop it. They should have.

It would have sent a message across this country to cease and desist, or suffer the consequences. Law-abiding people everywhere want this in their hearts, but are afraid to speak up because of the intimidation they would suffer from an insane media allied with the race hucksters of this country. It's too bad Ross Douthat has joined them.

From the St. Louis Business Journal, here:

"QuikTrip, which saw its store at 9420 West Florrisant Ave. looted and burned, estimated Monday the damage total to be in the seven figures.

"More than a dozen other businesses along West Florissant Avenue were damaged and looted, including Zisser Tire & Auto, Wal-Mart, Taco Bell, St. Vincent de Paul Thrift Store, and Toys R Us. Nu Fashion Beauty, Party City and Boost Mobile were also affected. The unrest spread beyond Ferguson Monday night, as a Shoe Carnival on Gravois near Grand was vandalized and looted."

In America, unfortunately, some property is more unequal than others.

German Bunds make history, yields fall below 1%, poor GDP blamed on MILD winter!

Germany now joins Japan and Switzerland in the below 1% yield club. The rush into the safety of government bonds driving down yields is a sign everywhere of lousy productivity.

Meanwhile yields below 2% exist in Taiwan, Hong Kong, Sweden, The Netherlands, Ireland, France, Finland, Denmark, The Czech Republic, Belgium, and Austria. Finland is the lowest of these presently at 1.14%.

CNBC reports here:

"Following disappointing growth data for the euro zone, 10-year yields finally broke through the 1 percent handle on Thursday—a first—dipping to an intraday low of 0.998 percent.  Yields then fell below 1 percent again on Friday, on reports that Ukrainian troops had attacked armed Russian military, which had crossed into the country near the border of Izvaryne. U.S. yields also declined, hitting a low of 2.333 percent, while the euro and European stocks turned negative."

German GDP fell in the second quarter from the first, at -0.6% annualized, which was, believe it or not, blamed on a mild winter there after poor GDP Stateside was blamed on an unusually harsh one.

The Wall Street Journal reported with a straight face here:

"Germany's economy, long Europe's growth engine, shrank for the first time in more than a year, a development economists largely attributed to a mild winter that boosted activity in the first quarter at the expense of the second. The bigger concerns, they say, are France and Italy, where respectable rates of growth aren't even in sight."

Oh well, at least they wrote "shrank".

Rex "The Nut" Nutting commits drive by shooting of American savers, misunderstands excess reserves

The resident communist at MarketWatch weighs in here:

Sure, people need to keep some money handy to pay their bills and some folks might have a few hundred or a few thousand in a rainy-day fund, but no one needs immediate access to the equivalent of 11 months of income. In essence, there’s $10.8 trillion stuffed into mattresses. That $10.8 trillion hoard represents a failure of Fed policy. Since the Fed began quantitative easing in September 2012, U.S. households have socked away $1.17 trillion in their low-yield accounts. That means that 95% of the Fed’s $1.24 trillion QE3 ended up not in bubbly markets but in a safe and boring bank account.

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The $1.17 trillion since September 2012 is nicely represented in "excess reserves of depository institutions", which are up $1.21 trillion since that time. So sorry, Rex, the banks are holding on to that cash, not households. The reason? They must, to help comply with increased capital requirements under Basel III rules in the wake of the panic of 2008. That's the reason for QE, but no one wants to call it the continued bank bailout that it is while the rest of us continue to suffer without bailouts of our own. People might actually revolt if they did that, so it's best to call QE and its evil twin ZIRP necessary measures to prop up housing, employment and the like. To call it a bank bailout would just give it away, and we can't have that, now can we?

Savings deposits, meanwhile, are up less than $1 trillion since September 2012, to which, by the way, no one has "immediate access". Savings deposits are not "demand deposits" like checking accounts. It can take up to 30 days to get all your money out of savings, which now totals $7.38 trillion. Demand deposits at commercial banks, on the other hand, are up just $220 billion since September 2012, to $1.18 trillion, and total checkable deposits are up just $320 billion to $1.66 trillion. Not exactly a lot of money in a $17 trillion economy.

These savings, such as they are, aren't a failure of Fed policy. They are actually a repudiation of it by a part of the population which still possesses a cultural memory of the basis of capitalism.

Wake up and join the revolution, Rex.

This country needs more law enforcement, not less

Video here.

Story here.