My predication: Monday is gonna be a rough one on the markets. The WaPo’s Ezra Klein Blog has some basic analysis but for bondholders when rates rise, bond pricing drops. Monday morning all eyes need to be on bonds, not the initial reaction of the equity markets. We all are likely pay higher rates on home mortgages go forward and those in variable rate mortgages may see their rates rise sooner than later. From a broad view, the excesses in the economy that manifested themselves in the year 2000 stock market bubble with the 2007 real estate crash on its heels remain in the economy that must be worked out. The end result of this is that the standard of living of all but the obscenely wealthy will take a hit and more Americans living on the financial razors edge will be thrown into poverty.
But there is also another story here IMHO folks. I’ll begin it with this simple fact: One of those obscenely wealthy folks I mentioned above, namely one Edward B Rust Jr of State Farm infamy, is on the board of directors of Mcgraw Hill, the owner of Standard and Poors. Affectionately known as Snake Farm to those that have been bafukkied on the Farm, I think a very strong case can be made to throw several members of this robber baron’s family in the pokey for what they have done.
Folks back in the day it was called organized crime but since they bought most of the politicians beginning in the 1980s such corporate predators are actually respectable in official circles these days. I bet ol’ Ed loved it when Barack Obama genuflected before him and opened up wide when he ran for the Illinois Senate and later President. About 90% of the GOP is no better by my reckoning.
And yes I can verify there is such a place in South Mississippi though I really wasn’t there today on 3G. I was actually closer to Hot Coffee. 😉
And today’s Yahoo Finance intraday trading headline:
Stocks swing as Europe, economy fears spread. Stocks zigzag in volatile trading driven by uncertain economy and European debt crisis
From a traders perspective the volatility aka the “zigzag” means the market is trying to make up its mind as to its future direction as neither buyers nor sellers have enough strength of financial conviction to sustain momentum in one direction.
Along those lines the pros at Zerohedge had a more honed perspective in their post on today’s intraday trading. I too share their suspicions about the veracity of today’s jobs report. That said one of the commenters distilled the post very succiently for the professional trading community:
Summary: Shit is fucked, but go with the flow.
The worst part though and what you have not been told by the financial press or the financial pros at Fox 8 can be found here. But before you peek consider that Italy Continue reading Not that I would want to throw a wet blanket on today’s market gyrations
Folks, organized crime operate a myriad of scams the only common denominator being garnering ill-gotten loot at the end. Paul Rioux at the Times Picayune outlines a time-honored scam in the construction industry albeit taken to its most brazen level as Fazzio is alleged in the his indictment to fictitiously billed Garner Services around $1MM with the help of Garner COO Mark Titus. Normally the way this scam works is a rogue employee of the contractor will assist a subcontractor in getting inflated bids by circumventing the procurement process and a kickback is paid at the end to the rogue employee by the sub in question. According to the government Fazzio and Titus took it to a whole new level and indeed having the COO of the contractor running the inside interference certainly helped that illicit process. I’ll add that Garner needs to work on its internal controls because hiding the payments likely involved cost shifting and other nefarious construction accounting tricks.
Of course the government has some time-honored tricks of its own and to the extent Fazzio is ass deep in business with Team River Birch and its management team of Fred Heebe, Jim Ward and his bro Butch (now stinking up the coast) squeezing his balls may be an easy shortcut to getting more dirt on the doings at River Birch, which we already know stinks worse than the landfill on a summer day and Fazzio certainly knows where all the bodies are buried.
When I get back to my office later today I’ll try to dig up the indictment via PACER but in the meantime Rioux’s story is well worth the read.