USA: Economic optimism soaring, helping Trump: says "bogus" CNBC survey - Or is it another Stock Market Fata Morgana?

"American optimism" - (not sure which people this includes except maybe the wealthy) on the economy is reaching "new heights" and President Donald Trump's approval ratings look to be benefiting, at least somewhat.

The "CNBC All-American Economic Survey" found that for the first time in at least 11 years, more than half of "respondents" to the survey rated the economy as good or excellent, while a near record 41 percent expected the economy to improve in the next year.

Note EU-Digest: Is this another Wall Street Fata Morgana? Who was covered in this bogus survey? Certainly not the one out of 4 Americans who live in poverty.  How do we explain the great proven disparity between poor and rich in America. Tell us another one CNBC.  

EU-Digest

USA: Super committee squandered a rare opportunity to take major action against the United States' fiscal problems

One thing is that is absolutely certain is that Democrats and Republicans will use the super committee's dead end for political gain. Democrats are saying the outcome is further evidence Republicans just want to protect the rich from sharing the burden of deficit reduction. Republicans will argue that, once again, Democrats fail to grasp the gravity of escalating costs of healthcare benefits.

The White House has been bracing for days for the committee's failure and believes President Barack Obama can weather it without major political fallout and that he may even be able to score points against Republicans as he seeks re-election. Aides believe Obama will be able to seize the chance to further paint Republicans as obstructionist, a strategy they hope will be more potent because of polls showing most voters back his proposal to increase taxes on wealthier Americans.

The committee's failure could trigger another downgrade of the U.S. credit rating. Rating agencies, however, have said they will look at a range of factors in making any decision but that the committee's washout will not be decisive.

One thing is certain: The super committee disbanding without having agreed on one penny of deficit-reduction. Instead, it will have actually contributed to the government's $1 trillion-a-year budget deficits, having spent government funds paying for staff and other expenses.

Note EU-Digest: Watching CNBC Squawk Box this morning in trying to get some more insight as to the Super Committee's collapse it was surprising to see how little discussion there was about what, without doubt, is a major setback for the US economy. Instead the Squawk Box TV commentators seemed more interested to talk and joke in detail about the quality of their $70.00 hair cuts. Maybe it shows how irrelevant the political establishment has become in comparison to the the financial community ?

EU-Digest

Wall Street, Financial Market Traders - Its Not About You Or Rescue Packages - Its About Making Money For Themselves

People who believe Wall Street or the Financial Industry give one damn about the interest of the shareholder or for that matter the interest of any country, think again.  They don't. Specially today, the enormous volatility in the market is a day-traders wet dream. Due to today's market volatility, you can't swing a dead cat without hitting a stock making a 10%-40% move in one day. You've got large numbers of companies stock like Goldman Sachs, making 30% moves in a few days. One often doesn't realize how incredible that is, major stocks like those mentioned aren't supposed to move like that, they're supposed to be steady, safe investments.

Today selling high, buying low and making a killing on the margins is the name of the game. Unfortunately most, if not all of the profits go into the traders and their company's pocket, not  in that of the shareholder.

Working in the financial Industry has also become extremely popular. Economics and Finance students at Cornell University say its a well known fact that after five years on Wall Street, you could expect to be making half a million a year in salary and bonuses; after 10 years you could expect a million or more.

Unfortunately as the size of the financial industry grew, the original purpose of banking to allocate capital to its most productive uses has been forgotten not only by the bankers, but probably by the public as well. According to Jeff Madrick, who wrote "The Age of Greed: The Triumph of Finance and the Decline of America, 1920 to the Present", the current system that pushes the socially beneficial goals of the industry to the periphery only encourages greed. Now, banking shifts money around the world while rarely increasing market efficiency.

Financial advisors in major trading companies enjoy dealing with derivatives and often funneling income to offshore holding companies, so rich people and corporations don't have to pay taxes. These trading companies have lawyers on retainer in the Cayman Islands and Jersey – and a quick phone call to them will set it all  up, no more taxes for their clients. This is not what the financial industry should be doing, this is basically criminal behavior.

Like one Wall Street analyst said: "Governments don't control today's world, Goldman Sachs does."

To prove the above point also see the BBC news clip "Financial Armageddon Imminent 2011"

As for those who continue watching and listening to those fast talking, so-called, financial "Gurus" on Fox News, CNBC, CNN and other corporate owned News Media, please take it for what this really represents -Corporate Orchestrated Populist Financial Reality Shows.

EU-Digest

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Conference call between leaders of France, Germany and Greece results in a huge Wall Street Rally

It's too bad the world does not have financial media that's willing to explain what's going on in simple terms; Instead, we're deluged with daily data-points that have little meaning to the average working slob who just wants to know whether he's going to have a job tomorrow or if the company he works for is going to pack-it-in and head for La-La-Land..

The fact that one conference call today between  the leaders of France, Germany and Greece makes the US stock market gain 140 points shows once again how totally messed up and unreliable the financial system  and Wall Street is..

If you want to be amused, just watch the CNBC "Closing Bell" program and listen to all the non-stop verbiage their reporters are "pumping out" for their viewers.  .As their slogan goes "we help you get the information you need to succeed". Excuse me? Has anyone ever reported they .made any real money from the advice they got from these so-called analysts?

The ethics of oil in a time of turmoil

"Only a few weeks ago, instability in the House of Saud seemed inconceivable. But the generational divide that is driving regional protests is perhaps greatest in Saudi Arabia. Nearly half of its people are 18 or younger, and 40 per cent of Saudis aged 20 to 24 are unemployed. At the other end of the divide, the country’s top three rulers are aged 76 to 83. Saudi activists want jobs, democracy and greater rights for women. Through Facebook, they are calling for a “day of rage” on March 11.

No wonder U.S. President Barack Obama’s congratulatory speech after the overthrow of Egypt’s Hosni Mubarak was so poorly received in the Saudi capital of Riyadh. And when American diplomats threatened to end U.S. financial support for the Egyptian military if it intervened to support Mr. Mubarak, the Saudis immediately offered to replace that financing – a notable schism in the long-standing close relationship between Saudi Arabia and the United States. With countries producing nine million barrels of oil a day facing instability, any serious disruption to Saudi Arabia’s 11 million barrels would send oil prices to stratospheric heights. Already high food prices would follow suit, pushing the world into unthinkable economic and political turmoil.

The West needs to avoid this nightmare scenario, even if it means compromising democratic ideology with the reality of preventing global economic meltdown."


Note EU-Digest:  compromising democratic ideology to prevent global economic meltdown? what nonsense - that is what we have been doing all the time and look what happened.  It is precisely what we should not be doing.  

In this context it was interesting to hear financial reporters and analysts on CNBC this evening promoting a no-fly-zone above Libya. They based their assessments on the fact that even though it would cost the US Government and its "partners" about eight billion dollars a year to implement a no-fly-zone above Libya, the drop in oil prices as a result of this no-fly-zone could make Wall Street more money in one day than what  would be  invested into this no-fly-zone for a full year. Obviously, self interest once again taken to great heights by our "compassionate" financial community.

Lets face it, the fact of the matter is that the financial community has no ethics and the problems the world is facing today are just about all of their making. The only way to make the financial industry understand is through their pocketbooks. So its not a question of the West having to avoid "Nightmare Scenarios", it is really about the financial industry having to make changes. Lets hope some event, maybe even this present Middle East crises, will bring them to their knees. Only than might they start showing some more  humility and compassion towards the people they serve.

For more: CTV News | The ethics of oil in a time of turmoil

EU battles Wall Street speculators- Merkel Invokes Market ‘Battle’ as Germany Votes on Greece Aid

Chancellor Angela Merkel went on the offensive before tomorrow’s parliamentary vote on German aid to Greece, appealing for European unity to ward off speculators and tighten government control over “perfidious” markets.

“In some ways, it’s a battle of the politicians against the markets” and “I’m determined to win,” Merkel said today. “The speculators are our adversaries. That’s why we have to weigh our words more carefully than ever and stand united.”

Note EU-Digest:  Watching the hype on CNBC today as the stock market plunged close to1000 points being blamed on Greece and Europe showed that financial speculators will do everything needed to get their way. It is time to ban these kind of activities and speculators out of the EU.

For more: Merkel Invokes Market ‘Battle’ as Germany Votes on Greece Aid - BusinessWeek

Hub Trader: Fraudulent Practices on Wallstreet USA: Jim Cramer (NBC) brags about manipulating stock prices when he was a Wall Street trader

For the complete report from the HubPages click on this link

Fraudulent Practices on Wallstreet USA: Jim Cramer brags about manipulating stock prices when he was a Wall Street trader

Jim Cramer, the boisterous host of CNBC’s “Mad Money,” recently bragged in an interview about manipulating stock prices when he was a Wall Street trader, proving all too directly — and stupidly, I might add — that investment professionals profit off the backs of the naïve investing public.In the Web interview with TheStreet.com's executive editor Aaron Task, which is on YouTube and has been blasted all around the Internet, Cramer gave advice on how to keep a profit on a short-position by driving a stock price down. He gave a number of different examples of manipulation, which he admitted might be illegal, but said it didn't really matter because "the Securities and Exchange Commission never understands this."

And that is the sad point of Cramer's comments and this column: The people who are supposed to guard and protect the public's trust in the markets are letting the people down. They simply aren't doing their jobs effectively. For years the SEC tried to pin something, in a very public manner, on Cramer. But they could never really make anything stick; he ran circles around them. There are now thousands of hedge fund managers playing tricks just like the old Cramer used to when he was running a hedge fund. And regulators are looking on without making a call. And the public still continues to invest like they know better. And hedge fund managers continue to laugh all the way to the bank.

Note EU-Digest: "one day the market goes down 6oo points and the next day it goes up 600, with screaming "know it all" CNBC reporters hyping-up the public This has nothing to do with the investors money, but all about making a select group of Wall Street traders very rich. This fraudulent activity will never stop without very strict regulations on Wall Street".

The Market Oracle: Investors Duped by CNBC Bubble Pumping Casino Propaganda - by Mike Stathis

For the complete report from The Market Oracle click on this link

Investors Duped by CNBC Bubble Pumping Casino Propaganda - by Mike Stathis

Note EU-Digest: "an interesting report on how news reports from stations like CNBC are spinning the financial news to Utopian heights and getting many investors to follow-up on their hyped-up advice. Its American Capitalism at its best, or is it?"

Mr. Mike Stathis is the Managing Principal of Apex Venture Advisors, a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects. Mike's work in the private markets includes valuation analysis, deal structuring, and business strategy. In the public markets he has assisted hedge funds with investment strategy, valuation analysis, market forecasting, risk management, and distressed securities analysis. Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking.