... And sleeping about the Economy leads to having no economy!
Did y'all see what happened yesterday morning when the Bot systems took over Wall Street?
Flood of Errant Trades Is a Black Eye for Wall Street - New York Times - NATHANIEL POPPER - August 1, 2012 - An automated stock trading program suddenly flooded the market with millions of trades Wednesday morning, spreading turmoil across Wall Street and drawing renewed attention to the fragility and instability of the nation’s stock markets..... While the broad stock indexes quickly recovered and ended the day slightly down, it was the latest black eye for the financial markets. The runaway trading suggests that regulators have not been able to keep up with electronic programs that increasingly dominate the supercharged market and have helped undermine investor confidence in stocks..... Traders on Wednesday said that a rogue algorithm repeatedly bought and sold millions of shares of companies like RadioShack, Best Buy, Bank of America and American Airlines, sending trading volume surging. While the trading firm involved blamed a “technology issue,” the company and regulators were still trying to understand what went wrong.
Terminator or the Dark Knight Rises?
Latest Market Glitch Shows 'Trading Out of Control' - CNBC - Jeff Cox - August 1, 2012 - Wednesday morning's stock snafu had a familiar ring to it — mysterious volume in trades that simply could not have been made by a human comes surging out of nowhere, causing brief but acute market mayhem..... By now, many players on trading floors have gotten used to the disruptions that can come from the highly automated new world of high-frequency trading. But that doesn't mean they like it..... "This algorithmic trading is kind of out of control," Phil Silverman, managing partner at Kingsview Capital, said as officials at the New York Stock Exchange tried to make sense of what happened. "It seriously hurts investor confidence."
The Fed will print up more Monopoly Money once they decide who they want for President. Actually, I think they have already chosen.
Fed Holds Off on New Steps to Stimulate US Economy - Reuters through CNBC - August 1, 2012 - The Federal Reserve on Wednesday said the U.S. economic recovery had lost momentum so far this year, but stopped short of offering new monetary stimulus even as it signaled further bond buys could be in store..... Fed officials described the economy as having "decelerated somewhat,'' and reiterated their disappointment with the slow pace of progress in bringing down the nation's 8.2 percent jobless rate........ The central bank, which disappointed market expectations by not extending further into the future its guidance for low rates until late 2014, nevertheless showed it was prepared to do more to support an ailing economy.
Who does the Fed answer to?
75% Of Americans Believe The Fed Should Be Audited – Why It Won’t Happen - Gold and Silver Blog - July 30, 2012 - Most Americans under 30 have a strange sense of unease that something is very wrong with the way things are going in America. If you are 60 or older and can remember with nostalgia how life in America was prior to the days of blatant and corrupt crony capitalism, you know for sure we are heading in a very wrong direction at an accelerating pace. I can remember the days when the average worker could support his family without putting his wife to work, without having to give up on having children, without having to worry about banks going under, without having to worry about an implosion of the financial system and without the expectation that the government would provide handouts to solve every little one of life's problems. Gradually, it has begun to dawn on the average American of all ages that the Federal Reserve may be at the heart of the nation's financial problems. Much has been written about this, but two graphs sum up the situation quite nicely. Since the Federal Reserve was created in 1913, the value of the dollar has declined to a fraction of what it was once worth and since the abandonment of the gold standard, government debt has reached levels that are no longer sustainable without further debasement of the paper dollar. The American public is beginning to connect the dots.
And then there is our Petroleum based Economy
Gas Prices Post Rare, Steep Rise in July - Wall Street Journal - July 31, 2012 - If it seems like the price of gasoline is rising quickly and at an odd time of year, that is because it is true. The average price of a gallon of regular gas in the U.S. rose 5.1% or 17 cents to $3.50 per gallon today according to auto and travel group AAA. This marks the first monthly increase since March and the largest July increase in at least a dozen years. The average price of gas in July was $3.42 a gallon. This was the third-highest average price for July ever recorded. AAA began keeping the fuel-price data in 2000..... National average gas prices rose for 26 days in July after hitting a low for the summer of about $3.33 a gallon on July 2.
And the LIBOR scandal
US senator asks NY Fed for more answers about Libor scandal - Reuters - August 2, 2012 - A U.S. senator on Wednesday asked the New York Federal Reserve to explain further the actions it took to address possible manipulation by big banks of the Libor benchmark interest rate. Democrat Sherrod Brown, who sits on the Senate committee that oversees the Fed, questioned Federal Reserve Chairman Ben Bernanke's assertions that he had no authority to address rigging problems with the key inter-bank lending rate. In light of the Fed's past claims to strong expertise and authority to oversee the largest U.S. banks, "it is difficult to accept the argument that the Fed has no authority to address this problem," Brown said in a letter Wednesday to the New York Fed's president and director of bank supervision. The Fed oversees large banks, including the U.S. branches of foreign banks such as Barclays Plc, which paid a record fine to settle charges that it manipulated the London Interbank Offered Rate. (Libor scandal: Barclays executive Jerry del Missier given £8.75m pay-off - The Telegraph of London - Alistair Osborne - July 31, 2012)
Now back to sleep my children