Archives for April 2013

April 2013 - Page 2 of 21 - Money Morning - Only the News You Can Profit From

A Simple, Scary Way to Neuter Goldman Sachs and Friends 

TBTF is the acronym for "too big to fail."

It's the crazy notion that certain banks are so large and systematically important (which really means so threatening to financial systems) that they must be kept alive by the government, because their failure would wreak havoc on the economy.

How will they be saved from their own greed? And how will we be saved from their greed so we can kneel at their altars another day?

Central banks and governments, who are not as powerful as central banks, will backstop them with printed paper and taxpayer blood. That's how they'll be saved, grow bigger, and one day rule the world.

Oh, that already happened… never mind

Myths and Realities About the U.S. Economy

When it comes to the U.S. economy, myths and misleading statistics abound.

Are taxes the highest they've ever been? Is the country's spending at record levels? Are the majority of products U.S. consumers buy produced by low-wage workers overseas?

The answer often depends on the spin.

But this Bureau of Economic Analysis presentation on myths and misperceptions about the U.S. economy gives investors a sense of what's real and what's the twisted truth.

To continue reading, please click here…

What America's $2 Trillion Underground Economy Says About Jobs

Doing what they can to survive in a dour job market, millions of Americans exist in an underground economy that has ballooned to $2 trillion annually.

By "underground economy," we're talking about all the business activity that is not reported to the government, which includes a growing number of people getting paid for their labor in cash.

That means the shadowy figures of the underground economy – the drug dealers and Mafia godfathers, for example – now have a lot more company.

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Keith Fitz-Gerald on Samsung, IBM and Why Businesses Won't Borrow

Money Morning Chief Investment Strategist Keith Fitz-Gerald joined FOX News' Neil Cavuto for a "Biz Blitz" segment April 26. On tap were these three hot issues of the moment:

  • Issue #1: Samsung profit is soaring, while tech king Apple is on the decline. Is this because of buzz Samsung is creating for its phones, or are we witnessing a major consumer shift for the hottest tech products? Does Samsung have a shot at winning over Apple lovers?
  • Issue #2: IBM CEO in an internal company video tells employees after a weak earnings report to get their act together – or get out. Is this too harsh, or a necessary tactic to turn the company around? Can it work?
  • Issue #3: Outstanding loans by the biggest banks to U.S. companies fell 9% in the first two weeks of April compared to the end of March. What's behind the decline – and what does it tell us about the U.S. economy in 2013?

To get the answers from Fitz-Gerald and fellow guest Dave Maney, watch the full interview below.



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Obama's Latest "Bad Bet' is About to Cost Taxpayers $180 Million

Talk about clean-energy boondoggles. Here's the latest one from the Obama administration.

Electric hybrid car maker Fisker Automotive Inc. is now on the verge of bankruptcy and owes the U.S. government more than $180 million – which would be the biggest waste of taxpayer money since the Solyndra fiasco.

According to PrivCo, a New York-based researcher, Fisker has not produced a car since last summer and has gone through more than $1.3 billion in private investment capital and government loans.

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Bangladesh Tragedy Exposes Real Cost of Corporate Greed

We've known for a long time that the things that fuel our lifestyles can come from some pretty ugly places.

The coltan that's used in our mobile phones and entertainment systems is mostly mined in the Democratic Republic of Congo, where millions have died in what's been called "Africa's World War." The United Nations has reported that warlords, guilty of numerous crimes against humanity, vie for control of coltan production while enslaving and killing thousands.

Many of the diamonds we buy for our loved ones come from West Africa, where diamond mining and the black market in the stones has fueled bloody wars in Liberia and Sierra Leone.

Now, in light of a recent tragedy in Bangladesh, it seems even the clothes on our backs may be contributing to a portion of human misery.

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Stock Market Today: April Set to Continue 2013 Winning Streak

U.S. equities followed Europe's lead and headed higher when the stock market today (Monday) opened.

Wall Street's mood was lifted after Enrico Letta was sworn in as Italy's prime minister, ending weeks of political gridlock in the ailing European nation. The news also propelled Italian stocks up more than 1%.

Shortly before noon, the Dow Jones Industrial Average was up 68.55 points, or 0.47%, at 14,781.10. The Standard and Poor's 500 Index was higher by 8.59, or 0.54%, at 1,590.83. The Nasdaq climbed 26.72, or 0.81% at 3,305.98.

Another lift to the stock market today came from a report on March consumer spending. The read was 2%, much better than and 0.1% rise economists had expected and up from a 0.7% gain in February and a 0.4% advance in January.

With just two more trading sessions left in the month, U.S. stocks are set to end April with gains. That would mark the fourth consecutive positive month for equities.

But it's about that time when the familiar spring swoon weighs on stocks in the near term.

According to data from Bespoke Investment Group, over the past 30 years, an investor who bought the S&P 500 Index every Oct. 31 and sold the following April 30 would have reaped a 898% gain. In contrast, buying every April 30 and selling every late October would have returned just 56%.

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BJ's Restaurants Misses Earnings, Rev - Analyst Blog

BJ's Restaurants Inc.’s (BJRI) first-quarter 2013 earnings of 29 cents per share beat the Zacks Consensus Estimate by a penny but were 3.3% lower than the year-ago level. Despite a solid increase in the top line, the bottom line skid year over year due to a sharp rise in costs. Inside the Headline Numbers Revenues […]

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The 5 Most Shorted Stocks in the S&P 500

May's right around the corner and bears are piling on bets against the most shorted stocks – and the overall market – in preparation for the expected annual sell-off.

During the first two weeks of April, almost 60% of stocks in the Standard & Poor's 500 Index saw an increase in short interest, and the Nasdaq had an overall increase in short positions as well.

Right now, the most shorted stocks include a struggling retailer, a for-profit college and an alternative energy company – and one stock that's up a whopping 131% in 2013.

But don't be misled into going against the grain. These stocks are not "buys."

Rather, investors should steer clear of these risky stocks.

Obama Turns America's Retirement Dreams into Nightmares

If you think the U.S. government will not – or cannot – seize your money the way the government in Cyprus is doing, check out page 18 of the President's Proposed Fiscal Year 2014 Budget of the U.S. Government.

That's exactly what he intends to do.

Not years from now. Not decades from now.

Today.

This is organized crime on an incomprehensible scale and, if it passes, it will be legal, too.