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Wall Street

The Greatest Criminal Enterprise in the World

From the Editor: Shah Gilani is one of the few people who can show you how it really is. In this case, he's going to show you the real reason the Fed chose not to taper. If you're overly idealistic, don't read this. It will only anger you. That, of course, is why Shah's naming names today...

Ben Bernanke is the don of the greatest criminal enterprise in the world.

And yesterday his made monsters, the Five Families, lined up to kiss his ring, again.

By not "tapering" or reducing the $85 billion a month ($45 billion in Treasuries and $40 billion in agency mortgage-backed securities) the Fed is buying from banks, the Fed is saying to its hit men, "We are family, and as long as Johnny Law is coming after you, we've got your back."

The "legal and litigation costs" (that means lawyers and fines) racked up by America's Five Families since the credit crisis gently (not) ushered in the Great Recession is over $103 billion, by some estimates. That doesn't include actual losses from related activities.

The Five Families, according to the Federal Reserve, are big, very big bosses in their territories, which means America and a good part of the world.

Let's name names... and then I'll tell you the REAL reason the Fed didn't taper yesterday

How to Prepare for "The Mother of All Bubbles"

There are lots of reasons to be fully invested in the stock market. And that’s why it’s so important right now to keep an eye on all the bubbles.

They’re everywhere. And we have plenty of reasons to fear any number of them bursting.

So let’s look at these bubbles now, while you still have time to prepare. And I’m not just talking “capital preservation” here…

You can make a killing when a bubble bursts, especially the one we’ll start with today.

It’s the biggest of the big bubbles. And it could start hissing at any moment.

The hissing will be loud, too...

Stock Market News Today

A few major mergers and acquisition deals are claiming headlines in stock market news today.

Last month, stocks suffered their biggest monthly decline in a year. But today stocks are kicking off September on a positive note after a three-day weekend. Stocks are rebounding from last week's selloff, stemming from fears of a U.S. strike against Syria.

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Amgen (Nasdaq: AMGN) Deal Shows How to Find Biotech's Best Investments


At $10.4 billion dollars, biotech giant Amgen's acquisition of Onyx is the fifth-largest biotech deal in history - and definitely won't be the last. This deal is a perfect illustration of why there’s so much money being made in biotech...


This Week in Numbers


It's the numbers that count in this crazy world. They can tell stories that words simply can't. Here's a look at some of the fascinating, infuriating, amusing, depressing, and altogether important numbers that the world has put up on the board recently - and why you need to know them.

Two Stocks to Buy Now – and One to Ignore

Company Apple logo

Money Morning Capital Wave Strategist Shah Gilani offered two picks for top stocks to buy now - along with one to avoid - on FOX Business' "Varney & Co." Tuesday.

His pick to avoid: Facebook Inc. (Nasdaq: FB). Recent gains haven't been enough to sway Gilani, who remains bearish on the stock.

Stocks to Buy now, GM and Apple

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Unlocked: The Fastest-Growing Companies in America

IPOs are back, big time. Even unsexy companies are sprouting sweet IPO gains.
Take organic grocer Sprouts Farmers Market. It gained nearly 123% in its first day of trading Thursday - the best initial public offering debut since LinkedIn more than two years ago.
IPOs as diverse as Norwegian Cruise Line Holdings Ltd. and fast-casual dining chain Noodles & Co. have soared... The market has locked and loaded on about $4 billion in U.S. IPOs so far this year.
At that pace, companies "going public" would raise the most this year since at least 1999.
Welcome to the white-hot IPO market.
There's only one problem...
If you're not rich - you know, aren't one of those high-net-worth "accredited investors" (in essence, an insider or someone with a good buddy at an investment bank) - then you probably are watching from the sidelines. And that's why I can't wait to show this to you today, because you don't have to watch the Millionaire's Game anymore. You can finally play it.
Pick up some of these shares today, and you can win it, too. Big...

Can Corporate Earnings Keep Up with Soaring Stock Prices?

Can Corporate Earnings Keep Up with Soaring Stock Prices?

Are high stock prices backed by profits or an overheated market? Money Morning’s Keith Fitz-Gerald shares his earnings expectations with Fox Business’ “Varney & Co.”...

Stock Market News Today: What and Who to Watch

After last week's onslaught of economic indicators and earnings reports, the stock market today is down in morning trade.

As earnings season winds down, this week has fewer economic reports in the pipeline and the stock market today is slightly weighed.

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Goldman Sachs, the Judas Penguin, and the Tip of the Iceberg

Emperor Penguins

News from Wall Street this week reminded me of the penguins that inhabit the icy, turbulent waters of the Southern Ocean.

These penguins are preyed upon mercilessly by tremendous, ravenous orcas - a terrible beast to feel gnawing on your leg if you derive your daily bread from the frozen, watery wastes.

But the penguins have devised a clever, if brutal, warning system.

A flock of penguins will gather apprehensively at waters' edge... and one luckless penguin will be pushed into the sea. If the penguin is ripped to shreds by killer whales, the rest will hang back a while.

Otherwise, the rest of the flock piles into the briny deep.

Goldman Sachs Group (NYSE: GS) bond trader Fabrice Tourre is one of those luckless, doomed penguins.

The predator in this case is unlikely: a normally toothless flounder otherwise known as the Securities & Exchange Commission.

Fabrice Tourre, a bond trader of the middling ranks, was earlier this week found liable for six of seven fraud charges relating to Goldman Sachs' trading of toxic mortgage assets.

The civil trial - a rare prosecution - provided a rare victory to the SEC, who, after a loss and a draw, are desperate for a win. At issue was whether or not a full $1 billion worth of collateralized debt obligations (CDOs) were fraudulently marketed.

They were.

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Why You Have to Be Investing in the Stock Market Now

Why You Have to Be Investing in the Stock Market Now

Money Morning Capital Wave Strategist Shah Gilani - sometimes called "the reluctant bull" - joined FOX Business' "Varney & Co." today (Friday) to discuss why the U.S. is the "place to be."

Shah emphasizes that all reluctance aside, when it comes to investing in the stock market now, "You have to be in it to win it."

Why you should be investing today

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Goldman Sachs' "Warehouse Shuffle" Just Cost You $5 Billion

Construction forklift

It's just another game for Goldman Sachs Group (NYSE: GS) - a "warehouse shuffle" that moves aluminum around while the big bank collects rent on the metal.

Although the rent on the stored aluminum - Goldman isn't allowed to actually own the commodity - is just pennies a day, the vast amount of the metal it has stored in its 27 Detroit warehouses and the "warehouse shuffle" strategy that enables it to extend the rental period for months on end adds up.

Through the Metro International Trade Services subsidiary it bought in 2010, Goldman has accumulated 1.4 million tons of aluminum, which it stores at about 48 cents per ton per day. That's about $672,000 per day of revenue - nearly half a billion a year.

Experts say the warehouse shuffle game ultimately raises the price of aluminum to manufacturers - everything from beer and soda companies to automakers. That extra cost, about $5 billion over the past three years, is passed on to consumers - you and me.

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Empires have come and gone. Some lasted a blink of an eye and some millennia.
The question is, after 9/11, the rise of China and a great financial crisis, where does the U.S. empire stack up to its predecessors?
Well, it seems the one commonality they all have is the point when their might was undermined by sloth and greed. And entitlements: free bread and circuses. For some it took years, others centuries.
Here, in a compelling and unique address, is what Romulus Augustus, the last emperor of the Roman Empire, might say to President Obama now about how to keep America great.
Read on and share with family and friends...

Dark Pools of Liquidity Are a Big Problem for Free Markets

hands in cuffs

by Greg Madison, Associate Editor, Money Morning

Everything runs on liquidity. Unless you know something I don't, that dollar bill in your pocket is just as likely to buy a can of Pabst Blue Ribbon today as it was yesterday, and will be tomorrow.

Or you could sell 1,000 lbs. of gold - if you have that lying around - without fear of completely scuttling the global gold market. Your bank has to have cash, liquidity, lying around somewhere in the back if it wants to stay in business.

And in many cases, it's easy to see or verify this liquidity. It helps everyone feel better about doing anything.

But there are markets where this liquidity is kept off the open exchanges, where it can be used to juice up huge deals. Or it can prevent these huge deals from having the impact that they "should" have, keeping the hands of large traders hidden.

These are the sinister-sounding dark pools of liquidity.

Dark liquidity is generated and stored in a variety of ways, most of which are possible due to the huge variety of trading venues, electronic and traditional.

With dark pools, neither the size of the order nor the entity making that order can be known until the order is completed. Rosenberg Securities Inc. estimates that fully 15% - trillions of dollars - of all trades occurring on American exchanges, every day, utilize dark pools.

Not Playing Straight Poker

And the markets, like nearly everything else, operate on the wide availability and transparency of good, reliable information. A poker game gets its lurid thrills from the partial presence of that information, or the possibility that the information could be faulty. You wouldn't want to play with all your cards face-up. You just don't know, and that's why it's fun to play poker.

But the markets, despite some inkling to the contrary, can't function with true optimum efficiency if good information isn't available to the widest possible group of participants.

It's not that a player has to have the information, but it should be available to the player if things are going to work the way they should. One is a vying, gambling game, and the other is a free market. We should be able to tell the difference.

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The Latest Obama Outrage: the Family's $100 Million Vacation

Flip flops Q

How much do you spend on your summer vacation? American households usually spend about $1,200 per person on summer vacations, according to a recent American Express survey.

Presidents spend more on their vacations than you or I. They have to. Air Force One and security does cost more than loading the Honda and heading to the beach.

Here's how much some recent presidents spent our tax dollars on vacation.

Ronald Reagan spent most of his free time at his California ranch. Taxpayers covered the cost of approximately $8 million for presidential travel during Reagan's first six years in office, according to the Los Angeles Times. That amounts to $1.3 million a year.

For George Bush the cost of flying Air Force One to his Texas ranch was approximately $56,800 per trip, for each of the 180 trips according to Media Matters. President Bush spent Christmas during his two terms at the White House so his staff and secret service could spend the holiday with their family, according to Conservative Byte.

Now Obama plans to blow away all previous presidents' leisure travel costs on our dime with a better than Disney World extravaganza trip to Africa.

However Obama had to cancel the safari because of the need to fill the surrounding jungle with snipers to guard the president from wild animals!

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