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11.16 Scotland was first Industrialized Country to Run wholly on Wind in October

11.16 How pesticide bans can prevent tens of thousands of suicides a year [how many thousands more die early from eating pesticide-laced food?]

11.15  The long read:  The plastic backlash: what's behind our sudden rage – and will it make a difference? [the world wants to throw-up...]

11.15 Claws out: crab fishermen sue 30 oil firms over climate change [workers are waking-up...]

11.15 Trump administration to cut air pollution from heavy-duty trucks

11.14 Backed by Ocasio-Cortez, Youth Climate Activists Arrested in Pelosi's Office Demanding Democrats Embrace 'Green New Deal'

11.13 What would a smog-free city look like?

11.13 Global report highlights Australia’s renewables potential amid mixed signals for coal

11.13 Interior department whistleblower: Ryan Zinke hollowed out the agency

11.12  This Land is Your Land:  The Zinke effect: how the US interior department became a tool of industry [behaving ignorantly again...]

11.12 Planned Parenthood's new president warns of 'state of emergency' for women's health

11.11 Trump responds to worst fires in California’s history by threatening to withhold federal aid [behaving ignorantly again...]

11.11 Interior department sued for ‘secretive process’ in at-risk species assessment [behaving ignorantly again...]

11.11 Keystone XL pipeline: judge rules government 'jumped the gun' and orders halt [behaving ignorantly again...]

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11.16 As 'Green New Deal' Demand Grows, Democrats Have Choice: Confront and Defeat Fossil Fuel Industry or Take Credit for 'Doomed' Planet [Two choices: Save life-on-Earth or help Republicans let it die?]

11.16 Trump’s latest interview shows a president who’s in way over his head

11.16 Why the political fight in Georgia is far from over

11.16 Florida judge sides with Democrats, giving thousands a second chance to fix their ballots

11.15 Democrats Won Big. Can They Go Bold, Too? [it's about suppressing the influence and leadership by Republican-like Democrats who counsel 'íncremental' (no) change, such as Nancy Pelosi, Steny Hoyer, Hillary Clinton, Chuck Shumer and Joe Biden]

11.15 Pentagon Officials Forced to Make Fewer Public Appearances to Avoid Provoking Trump [...by revealing Trump's huuuge ignorance]

11.15 REPUBLICANS USED A BILL ABOUT WOLVES TO AVOID A VOTE ON YEMEN WAR [if there are 'defense industry' profits to be made—including congress-critter insider-trading—and political 'donations' to be had, we mustn't stop killing innocent civilians!]

11.15 Big Oil v the planet is the fight of our lives. Democrats must choose a side

11.14 The Real Florida Recount Fraud

11.14 Telling NRA #ThisIsOurLane, Doctors' Photos Show Blood-Soaked Reality of America's Gun Madness

11.14 At Freshman Orientation, Young and Growing Progressive Caucus Makes Clear It Will 'Fight Like Hell' for Bold Democratic Agenda

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High Crimes?

11.14 The Guardian view on Yemen’s misery: the west is complicit [WAR CRIMES]

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11.16 Amazon’s HQ2 Will Get a Tax Break Designed to Help the Poor [a Republican program that directly helps participating wealthy companies—but only helps workers if and when 'trickle-down' occurs.]

11.16 Trump doesn’t want to punish Saudi Arabia over Khashoggi. His new sanctions prove it. [George W. Bush made a similar immoral decision for the same oily reasons after 9-11, protecting Saudi defense contracts while facilitating the slaughter of poorer Arab "terrorists" in the region.]

11.15 The Earth is in a death spiral. It will take radical action to save us [fossil fuel burning, un-recyclable plastic production/use and methane gas release must cease ASAP.]

11.14 Brexit: May tells her cabinet, this is the deal – now back me

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11.15 Cuba to pull doctors out of Brazil after President-elect Bolsonaro comments [terms must be negotiated for fairness to Cuba's health professionals without disruption of healthcare for Brazil's poor]

11.14 'Appalling' Khashoggi audio shocked Saudi intelligence – Erdogan [Exposing a psychopath?]

11.14 Israel and Hamas launch hundreds of attacks in Gaza clash

11.14 Mueller seeking more details on Nigel Farage, key Russia inquiry target says

11.13 Austin's Fix for Homelessness: Tiny Houses, and Lots of Neighbors

11.13 Portugal Dared to Cast Aside Austerity. It’s Having a Major Revival.

11.13 Caravan marks one month on the road: ‘We keep on going, laughing or crying’

11.13 Letter Shows Einstein’s Prescient Concerns About ‘Dark Times’ in Germany

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  Thinking About Explanations

COMMENTARY:

Thinking About Explanations

by Fred Cederholm
Last week saw the largest single day drop of equity valuations in a matter of a little over an hour. Were the market makers (aka “the Plunge Protection Team”) asleep at the switch? The exchanges went into free fall. Things happened too fast, but they still happened.

I’ve been thinking about explanations. Actually I’ve been thinking about tall tales, pensions, Greece, the EURO, the US dollar, and the markets. Last week Lucy had a lot of “splaining” to do. We were watching the Greeks rioting, the gulf oil slicks floating towards our coast, and the stock markets tanking. Our world was literally coming apart at the seams. Not to worry, Der Spinmeisters went into overdrive to “splain” things away by demonstrating their so called knowledge of the situations, tell what they were going to do to fix things, and more importantly, to show that “they” were still in control. Tall tales were the order of the day. Hopefully the general public would NOT do any real TH*NK*NG and the fast talking elixir salesmen would once again prevail thus buying some more time. Suspending ones’ misbelief to enjoy a novel, science fiction, a TV show, or a movie is one thing; to buy into governmental fabrications, financial sector misinformation, and the media coverage (as in cover up, or obfuscate, the truth) is quite another.

You see common sense and rational TH*NK*NG about what the governments, the financial sector, and media are spewing out to the masses would show the explanations for the “hooey” they actually are. Most of the public around the globe is concerned about the here and now. Their concerns are for food and shelter, raising their families, keeping working, paying their bills, and looking forward to an uneventful (and enjoyable) retirement. To insure the latter (which is hopefully off sometime into the future), the American public looks to Social Security, pensions, IRAs, 401Ks, and savings to cover them on this front. Recent revelations depict a very sick system. This makes us all very edgy.

The big companies and the governmental units (Federal, state and local --- which combined are the hands down largest employers) have under funded their pension obligations. We all know this. Will they be able to follow through on their promises? Add to that point the fact that private holdings of stocks, bonds, CDs, and savings accounts make up another huge chunk of the pension mix; bring to light why it is so unfathomable for our banking and financial system of equity markets to tank. Last week saw the largest single day drop of equity valuations in a matter of a little over an hour. Were the market makers (aka “the Plunge Protection Team”) asleep at the switch? The exchanges went into free fall. Things happened too fast, but they still happened. Explanations were critical, but how could the powers that be say the markets were overvalued, the companies were not as strong/ profitable, and that the hyped fantasy that the depression/ recession was over was false? Well, they couldn’t. You cover and perpetuate one set of lies with another and bigger set of falsehoods --- and the game goes on!

The problems in Greece (and Portugal and Spain and Italy and Ireland and the UK) are now coming out into the open. Greece with its riots in the street is leading the way! Each and all of these UC members have been spending well more than they took in, or could even (or rather should) borrow. The day of reckoning is at hand, but those using EUROs as their currency can’t just print more money to cover their obligations. They must receive a bailout, or go into default. If any one or more of these goes under it WOULD bring down the EURO and the European Union. The US dollar and the Pound are still acceptable as reserve currencies so the printing money option is still working for them - for now. The EURO as a viable alternative to either of them has been dashed on the rocks and has been set back at least a decade in the broader scheme of things.

It would be to the US advantage in the short run if the EURO disintegrated and the EU actually broke up! The troubles in Greece and the precarious nature of the EURO would make US dollar and US dollar denominated investments a better bet on the planet as a whole. If anything... Greece and the troubles across the pond should have caused the market to erroneously rise last week --- not go down! After the initial “blame it on the Greeks and the need for a European bail out scenario” fell apart on closer analysis and TH*NK*NG, Der Spinmeisters here had to look elsewhere to point the finger. US entities hold less than 5% of the Greek debt, so our exposure there is highly limited. We already have far more of our own debt here to really even give the Greek mess a first, much less a second thought.

The next lame attempt at explanation for the precipitous drop in our equity markets was that ONE trader accidentally typed in a sell order for a BILLION shares instead of a MILLION. DUH!!! Are there no programmed checks, or supervisory approvals, required by the Wall Street super duper protection systems for such a large (make that HUGE) trade? Nice try...but NO, I’m not buying that one either!

I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.


Copyright 2009 Questions, Inc. All rights reserved. Fred Cederholm is a CPA/CFE, a forensic accountant, and writer. He is a graduate of the University of Illinois (B.A., M.A. and M.A.S.). He can be reached at asklet@rochelle.net.



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This story was published on May 10, 2010.

 

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