Randoms: A 50% Tax For Wall Street Bonuses?
Britain sets another precedent.
I return from the Thomson Reuters Mother Ship where I participated with a roundtable of reporters...and me. I'll tell ya, if I'm ever called to testify in Congress, I would imagine it would feel a bit like that...with one primary difference; we were all on the same team, searching for truth and exploring solutions.
Some random observations as I strap back into my chair
- Remember when Britain set precedent in September 2008 when they banned short-selling on financial stocks? I sure as shvitz do; that led to Martial Law for the Markets and a seismic shift in free-market capitalism.
- Why do I bring that up? They're at it again, this time imposing a one-time 50% tax on banker bonuses for anyone making over $40,700. Would Washington dare and could that happen to Wall Street? What would the ripples in that pond be?
- Or, are there now two ponds?
- For many, this morning's article was really "out there" but please understand a few things. First, I'm always early and second, not always right (who is?). The tricky tri-fecta we spoke of isn't in anyone's best interest and there will be two-sided opportunities as we pave the path to our ultimate destination, wherever that might be.
- Granny Goldman (GS) stands out as a green seed in an otherwise pink pack of financials. We spied this dry eye on yesterday's Buzz and we can indeed learn a lot just by watching. A few quick technical takes, in no particular order:
- There's dandruff forming
- The downtrend remains in place.
- $157ish is initial support and the 200-day is nestled below in and around $150.
- The stochastics are 'twisty" oversold (but we should remember they remained twisty overbought for the better part of the last six months).
- NYSE internals aren't working nine to five; what a way to make a living!
- Speaking of which, whatever happened to Dabney Coleman?
- Minyan Mason Slaine -- the same fella who presciently predicted DJIA 10K on July 8th when we were trading at DJIA 8100 -- explains why he loves AOL to fitty and beyond.
- Timmy G wants to extend the $700 billion TARP until next October despite Bank of America (BAC) and others paying the government back? That's the "what," Minyans know by now to explore the "why?"
- We've been talking about the technical construct for some time and it very much remains in play. Here it is; the white line is the downtrend from 2007 and a 50% retracement of the entire decline (bearish). The red line is the uptrend from the lows that rocked steady since March. Those two parallel lines (far right) are the trend channel between S&P 1083 and S&P 1120, where we've been hanging since early November.
- Minyan Peter's observations regarding "1's and 9's" are silly, you say? Yesterday's close for the S&P was 1091.94. I don't claim to understand it but it sure is fascinating.
- You know The Power of the Invisible Sun book that Bobby Sager and I discussed in our recent Minyanville interview? I've got a copy signed by Sting and Bobby that somehow slipped through the Festivus cracks. If you're interested in snagging this prized pup-one of fifty in existence and with 100% of the cost supporting his cause-ping me directly. The high bid on Friday's closing bell will have it in time for the holidays and Minyan Hank is sitting atop the leader board with a $500 bid.
- Speaking of good peeps doing the right thing, snaps to Minyan Dough Boy for stepping up in a big way for Ruby and the Kids.
- Have you read James Grant's Requiem for the Dollar?
- Is there anything wrong with some vintage Bobby?
- According to the CMA Sovereign Risk Monitor, the highest default probabilities, in order, are: Venezuela, Ukraine, Argentina, Pakistan, Dubai, Latvia, Iceland, Lithuania, California and Greece.
- China's banking regulator plans to slow new lending; this could be an important nugget of news so we wanted to make sure you saw it.
- Another stocking stuffer thought? Frost yourself with some Hoofy & Boo Bobbleheads on the heels of last night's DPAC (Digital Publishing & Advertising Awards) top prize for best branded video. Congrats boys; that will look mighty fine next to your Emmy Award!
- If thinking positive doesn't work, we can always meditate with the critters?
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