Is it the unemployment situation? Is it the volatility in the markets? The weakening greenback? Perhaps the generally perceived level of incompetence amongst our political and corporate leaders? Is it a media that does not hold our public officials and corporate leaders accountable?

While I could write extensively – and I have – on each of these questions, I am firmly convinced the ever increasing levels of populist rage go much deeper than any of these questions. How deep? To the very core of this great nation. What is at the core of any individual, institution, or nation?

Honesty and integrity.

Americans are a strong people. America is a proud land. That said, I believe we have allowed a semblance of moral decay to increasingly infiltrate our very core and we are now paying the price for it. How is this growing moral decay exemplified?

I am not suggesting that those who might hold differing opinions than mine on specific questions addressing ethical and moral topics as being the root of our current problems. I would like to think I am not so narrow-minded or judgmental. I do believe, however, that the rage sweeping our country on both sides of the political aisle stems from the reality that Americans are increasingly convinced that our political representatives, government officials, financial leaders, and their selected constituents have not been honest with America.

This lack of integrity and its growing level of awareness enrages Americans. They are voicing their rage. Congress is starting to hear this rage and is redirecting the anger and frustration toward leaders in Washington, state capitols, and Wall Street. We are now seeing this reality each and every day. America knows a lack of integrity when it sees it or feels it, despite the fact that large swaths of our media (exceptions include Susan Antilla and Jonathan Weil of Bloomberg, to name a few) provide the establishment cover.

Where have we seen a lack of integrity and honesty?

1. Select government reports to the contrary, the massive failings within the financial regulatory structure with specific emphasis on FINRA and the SEC.

2. Goldman Sachs CEO Llloyd Blankfein’s confession just this week that Goldman had engaged in activities that were clearly wrong and led to the economic crisis.

3. I have no doubt that many within our nation believe the Obama administration fundamentally believes in the principle of redistributing wealth via a number of programs. This emphasis on redistribution in one direction while simultaneously bailing out financial institutions leaves a very large percentage of those in the middle and on both sides of the aisle feeling totally disenfranchised. Not only do these people feel disenfranchised, but they feel that the government is not being honest with them regarding its motivations.

Will this situation turn around quickly? No. We did not get here just in the last year. While America is enraged currently, ultimately America itself needs to be held accountable for allowing this lack of integrity and honesty to promulgate over the years.

The cauldron is boiling. Washington and Wall Street feel it. I would expect we will witness more and more statements and acts from our leaders on Wall Street and in Washington to appease the electorate and assuage the pain.

Washington and Wall Street can keep their acts and statements.

Stop lying to America. Only then might we be able to make real progress.

LD

I love that pearl of wisdom shared by Danielle Park, my guest this past Sunday evening on No Quarter Radio’s Sense on Cents with Larry Doyle. I find it very applicable to the recently released economic report on housing starts. What did that report indicate? Housing starts in October registered a supposed surprising decline of 10.6% to a seasonally adjusted 529, 000 annual rate.

Is this truly a surprise? Market analysts and government pundits who continually ‘oversell’ economic data as legitimate, when in fact that data is gamed via government props, need to show surprise when a report disappoints. If they do not act surprised, then they merely expose themselves and lose credibility.

The simple fact is the housing market in our country remains in decline. One merely needs to look at the continually increasing levels of delinquencies to understand that. I addressed this important data last May in writing, “The Most Critical Economic Statistic”:

Which economic statistic is the most important? Unemployment? Housing starts? Trade deficit? Inflation? Retail sales?

Well, they are all important . . . but as I review the many statistics, the economic data that I believe most significant are loan delinquencies. Now, mind you a delinquency does not mean that the loan has defaulted and been foreclosed upon. A delinquency is merely a late payment. Typically loans are classified as 30 day, 60 day, or 90 day delinquent. There is a very high correlation between delinquent loans and those that default.

Loans become delinquent for a whole host of fairly typical reasons. That said, in this economy the nature and array of reasons are growing. As a result, the ability of lenders to forecast and manage delinquencies is increasingly more challenging. Lenders will typically increase reserves as loans become more delinquent in anticipation of a natural rate of default.

Loan delinquencies will often occur even before unemployment hits or sales falter. As individuals or companies feel increasingly squeezed, the monthly loan payment becomes more difficult to make and delinquency results.

Delinquencies show no sign of abating. For a wealth of information on housing, I am happy to share a link to Mark Hanson Advisers, a site I recently found which provides true, cutting edge insights on housing.

While cheerleaders will look to parse each and every monthly statistic in an attempt to legitimize their work, do yourself the favor of looking at the major trend lines. Uncle Sam can attempt to ‘game this process,’ but I strongly recommend you do not ‘play’ his game. Why? The truth is not revealed in his game. When is the truth revealed? Over time.

Thank you Danielle. Thank you Mark.

Color from around the country as to developments within your local markets is very much appreciated.

LD

Goldman Sachs CEO Lloyd Blankfein

Wait a second. Blankfein admits that Goldman participated in activities that led to the crisis? Get Lloyd back in here and ask him for specifics.

In an attempt to probe as to Goldman’s culpability, I inquired:

What do you think Blankfein was referring to when he stated that Goldman “participated in things that were clearly wrong”? I’ll get the ball rolling with a few possibilities:

1. Manipulated the equity markets via computer programs connected with high frequency trading.

2. Ran over Tim Geithner in the settlement of open positions with AIG.

3. Facilitated insider trading on behalf of hedge funds.

4. Intentionally misled lesser prioritized clients via trading huddles.

5. Abused privileged information provided by former Goldman execs now in government positions.

6. All of the above.

7. Other . . . please share your opinions.

Yesterday we learn the answer is most likely choice # 2. It appears that Lloyd Blankfein would like forgiveness for the aggressive posture it took with Uncle Sam in the process of settling its exposure with AIG. Recall that Blankfein has repeatedly asserted that whether AIG went down or not was not meaningful to Goldman Sachs because Goldman had secured collateral from AIG to cover its exposure.

Does Lloyd regret making those strong and bold assertions? Is he apologizing for these statements? Why would he apologize? Did he intentionally misrepresent Goldman’s position? Did he lie? The Wall Street Journal provides compelling evidence that he did just that. The WSJ writes, Report Rebuts Goldman Claim on AIG:

For more than a year, Goldman Sachs Group Inc. has maintained that it wouldn’t have suffered material losses had the government allowed one of its major trading partners, American International Group Inc., to collapse.

A government report throws cold water on that claim.

Goldman was among the largest beneficiaries of a decision by the Federal Reserve Bank of New York to bail out insurer AIG in September 2008 at the height of the financial crisis. The Fed agreed to pay Goldman and 15 other banks, in full, for $62 billion of insurance contracts they had with AIG to protect against price drops of mortgage securities they held.

The report, issued this week by the special inspector general for the Troubled Asset Relief Program, comes amid controversy over whether the government unfairly helped out big banks in its bailout of AIG. The government auditor’s report broadly found that the New York Fed left itself little room in negotiating with the banks for a better deal for taxpayers.

Goldman’s trading position with AIG centered on $22.1 billion of such insurance the firm had purchased from AIG. In a separate series of trades, Goldman itself had sold protection against losses on the same securities to other trading firms.

The problem for Goldman: If AIG collapsed and markets continued to swoon, Goldman would have had to make payments to the other trading firms and been unable to collect on protection it had bought from AIG.

While spokesmen for Goldman may try to spin Blankfein’s previous statements of Goldman being hedged against an AIG default, it does not take a brain surgeon to tie Blankfein’s apology on Tuesday to the recently released WSJ story. Professional courtesy in the financial industry compels journalists to share articles, especially negative coverage, with selected parties prior to its release. Do not think for a second that Blankfein was not aware of the WSJ article. While some within the industry may look at Blankfein’s statements about Goldman being protected from an AIG default as some semblance of harmless obfuscation, from where I come, we call it lying.

Goldman took the American taxpayer to the hoop in the process. When does Blankfein want to make proper restitution? Keep your apology. Give the taxpayer their money back. Get Geithner in here as well, as he facilitated this transfer and allowed the lie to perpetuate.

If Blankfein lied about this situation, the question begs as to what other lies or half-truths he has spoken.

What do you think?

LD

Isn’t that great?? Well, it would be if it was actually true. But it is not. For instance, did you know that Puerto Rico has 99 districts? Nope, me, either. Because they don’t. They have 1 (one). How about Arizona? Heck, they’ve got at least 38 (thirty-eight), right? Oh, wait, no they don’t – they have 8 (eight). The alleged “recovered jobs” bragged about by Biden and how our stimulus money is being spent don’t quite match up. I know, big surprise (almost as much as the following report being on ABCNews):

Wow that’s some “state of the art system” you got going on there, Joe. And I am SOOOOO sure that all of the problems are the result of people not knowing in which district they live. Oh, sure. Because it is so difficult to access that information. I mean, really, you might need to make a PHONE CALL or something. Or look it up on “the internets,” if it isn’t in the area in which you live. Because then, you could just take a little look-see at your voter registration card! Gosh, I am just stunned that they would not be getting these numbers right!

Speaking of jobs, check out these headlines:

This is exactly why so many of us are concerned about the Government running our health care system. Can you say fraud? If they cannot even get this right, how are they going to adequately address issues of life and death?? I don’t think even an abacus could help out there …

Retail sales rebounded strongly this month posing a 1.4% gain. Good news, right? In an attempt to provide a degree of sanity to what has become an extremely volatile report, let’s break this report down a little bit further.

Recall that our automotive sales have bounced around tremendously over the course of the last three months due to the Cash for Clunkers program. Auto sales soared in August given Uncle Sam’s handout. Once Uncle Sam shut that spigot off, auto sales dropped like a stone in September. In October, auto sales had a respectable bounce. All this said, there is no respected economist who doubts that the Cash for Clunkers program pulled demand forward. In the process, it has skewed the overall retail sales readings. What is the American consumer doing away from the auto sector? Let’s navigate.

Retail sales ex-autos posted a 1.0% increase in August, a .5% increase in September, and a .2% increase in October. That trend line does not look all that positive to me. Against that backdrop, holiday sales for retailers remain a major concern.

The retail concern combined with issues within housing and labor present major hurdles for our economy, but apparently not our markets. What gives? Our equity markets seemingly discount all bearish news and rally higher on any hint of positive news. Is this rational behavior? I am no psychologist or psychiatrist, but it strikes me that our markets are entering into a dynamic not commonly seen but not to be discounted. What is it? Welcome to a blowoff. What is a blowoff?

This large and dramatic price movement is generally seen at the peak of a market or stock. The idea behind the bearishness of a blowoff is that it signals the activity of the most irrational and overly exuberant market participants, who, wanting to take part in the rally, momentarily push up the already-overvalued stock.

What is likely to happen in a blowoff? Expect an increase in the number of solicitations from brokers and financial planners to get into the market. Expect stories of quick and easy money to flourish. Expect day trading ads to become prevalent once again. A blowoff can occur over a protracted period.

What is one to do? Keep your head. In fact, is there ever a time when one should lose his head? Of course not.

The virtues of discipline, patience, thrift, focus, and family never go out of style although they do not necessarily align well with those who would solicit active trading and investing based on positive price action in the markets.

Thoughts, comments always appreciated.

LD

Remember back in April when Obama traveled to the G-20 and bowed to the king of Saudi Arabia? If not, here it is:

Actually, that doesn’t look as much like a bow as it does a genuflect. Not, true, says Obama’s Spokes Weasel, Robert Gibbs. Oh, no – it is just because Obama is tall, and “bending over.” I am not kidding you – that’s what he claimed. So, don’t believe what you actually SAW, just believe Spokes Weasel that it’s not what it looked like it was.

Well, it would seem Obama learned nothing from that experience when he traveled to Japan and met the Emperor Akihito and Empress Michiko of Japan:

Sigh. I know it is customary to bow in Japan, but this is a bit over the top for anyone, much less a US president, or another world leader. You will notice that, while the Emperor or Empress bows in return, it is slight, almost imperceptible. Nice to see that SOME people understand decorum and protocol, even if Obama doesn’t. They were modeling the appropriate level for him, and he missed it. I might add, Obama doesn’t bow just once, he does it over and over and over again (though not as low) like a frikkin’ bobblehead. His hosts, however, are not recirpocating.

Wow. So much for the President of the United States bowing to no one. What an amateur. Respect is one thing. Subordination is another. This appears to be a case of the latter, IMHO.

Yep, the second bow heard around the world. Oh, and the topic of discussion? Green tea ice cream. I’m not making this up, people, that’s what Obama discussed with the Emperor and Empress.

Perhaps Obama could take a few lessons from Secretary of State Clinton on how one meets with other world leaders, particularly in Japan, as this video from February, 2000 demonstrates (pay special attention around the 5:10 mark when the Empress and Clinton greet each other):

You’ll notice Clinton did not bow to the Empress. Though I have to say, the looks exchanged between the two women were quite lovely. They seem to really like each other (and who doesn’t like our Hillary??). Other than that, not a bow in sight. Oh, sure, she nodded her head a few times in recognition when someone bowed to her, but a real bow? Uh, yeah, NO. Didn’t see a one.

Once again, our Amateur in Chief is on display for all the world to see, and believe you me, they all saw it, too. Seriously, he needs to get some real protocol officers instead of asking one of his frat boys from their video games (”No, really, dude – I’m pretty sure they bow to each other in Japan. At least that’s what my Samurai warriors just did to each other on my X Box…”).

How I wish I could say I was surprised at Obama’s breach of protocol after his “teachable moment” in April with the King of Saudi Arabia. But when you have a president who gives a “shout out” and CALLS it a “shout out” after finding out about a devastating attack on one of our military bases before even acknowledging the attack, this is just par for the course. It just leaves me shaking my head…

Liu Mingkang, Chairman of China Banking Regulatory Commission

With friends like this, who needs enemies?

That trite saying is far too simplistic in defining the diverse and convoluted nature of U.S.-Chinese relations. That said, as President Obama prepares to arrive in the People’s Republic of China for the first time during his Presidency, he is faced with an extremely aggressive overture from Liu Mingkang, China’s chief banking regulator.

What does Mr. Mingkang have to say? Well, let’s just say he has a drastically different opinion on U.S. monetary and fiscal policy than his counterparts in Washington. While our wizards in Washington, Messrs. Bernanke, Geithner, and Summers would lead us to believe that the rebound in markets is a precursor to a rebound in our economy, Mr. Mingkang has a decidedly different take.

The Financial Times sheds light on this topic in writing, China Says Fed Policy Threatens Recovery:

The US Federal Reserve is fueling “speculative investments” and endangering global recovery through loose monetary policy, a senior Chinese official warned just hours before President Barack Obama arrived in China for his first visit.

Liu Mingkang , China’s chief banking regulator, said the combination of a weak dollar and low interest rates had encouraged a “huge carry trade” that was having a “massive impact on global asset prices”.

The comments came as China and the US sparred at the Asia Pacific Economic Co-operation summit over exchange rate policies amid rising international criticism that China’s currency is undervalued.

Mr Liu’s unusually blunt remarks underscore how China – the largest US creditor because of its massive holdings of Treasury bonds – has become a trenchant critic of monetary and fiscal policy in the US.

Since the start of the financial crisis, China has issued a number of warnings that the US should not inflate its mounting debt burden. Before these latest comments, however, Beijing had generally been most critical of US fiscal policy, urging Washington to spend less.

But speaking at a conference in Beijing, Mr Liu said the Fed’s policy of maintaining low interest rates together with the weak dollar posed a threat to the global economic recovery.

Why so aggressive on Mr. Mingkang’s part? Two reasons. The weakening greenback negatively impact’s China’s massive dollar-denominated holdings, primarily in U.S. Treasury securities. Additionally, the weak greenback negatively impacts China’s balance of trade.

Despite assertions by Secretary Geithner to the contrary, I firmly believe a weakening greenback is a central tenet of the Obama administration’s economic policy. In fact, our government officials would never say it but they are likely somewhat envious of the benefits of the weak and undervalued currency policy practiced in China.

While those on Wall Street and Washington are reluctant to address ‘huge carry trades’ and ‘asset bubbles,’ our largest creditor pulls no punches on these topics and provides a healthy dose of ’sense on cents’ in the process.

Welcome to China, Mr. President. How nice to see you. About your currency, we are not so happy.

LD

Ignorance of the law is never an acceptable defense on Main Street; regrettably, the same does not seem to hold true on Wall Street. How so?

A recent auction-rate securities arbitration case involving an investor who purchased ARS from a Raymond James financial representative acknowledges the ignorance of the sales rep, but effectively absolves the firm in the process. The implications of this decision should not be underestimated. The Wall Street Journal sheds further light on this case in a recent review, GETTING PERSONAL: Investor Loses Out In Auction-Rate Case:

A complaint brought by an auction-rate securities investor offers insight into the plight of those stranded in the instruments as well as the arbitration process some investors dread.

Like many investors, Gene McCutchin, a real-estate entrepreneur, was holding auction-rate securities when the $330 billion market froze up in early 2008. He filed a complaint against his broker, Raymond James Financial Services Inc., in September 2008 asserting negligence, fraud and breach of fiduciary duty, among other things. He said the brokerage failed to warn him about the risks before his purchase, and he asked for compensation and punitive damages.

A Financial Industry Regulatory Authority arbitration panel, in an Oct. 26 resolution, didn’t award damages or order that the share sale be rescinded. It supported some of McCutchin’s assertions, finding that a Raymond James broker, Rick Woolfolk, “was poorly trained with respect to the ARS product,” and it did order the brokerage to pay forum costs.

But the panel also said that McCutchin identified himself as “a sophisticated investor.” While McCutchin wasn’t informed about the extent of risk before the transaction, it was clear that his personal adviser, Dan Chilton, understood that he was buying ARS bonds, and that the higher returns they offered came with higher risk, the panel’s resolution said.

Let’s zero in on the phrase, “wasn’t informed about the extent of the risk before the transaction.” The fact that the FINRA arbitration panel is absolving Raymond James in this transaction, despite the fact that the customer was not informed of all the risks, should send chills down the spine of every investor in our public markets. With that statement, the arbitration panel is sending a message, loud and clear: “Buyer Beware!!” You are on your own.

To mitigate the enormous risk of purchasing an investment that a sales representative may not understand, I would strongly encourage individual investors to do the following:

1. Make sure your conversations with your sales reps are on taped lines.

2. Ask the sales rep if he fully understands ALL of the risks in the dog meat, I mean the investment, he is trying to sell you.

3. Ask the sales rep to put his understanding of the risks in writing and have him sign it. Have his sales manager sign it as well.

4. To the sales reps in the audience, compel your product and sales managers to provide a fully written explanation of ALL the risks which you can share with your customers. While individually sales reps may think that may be a tough request, if the entire salesforce makes the request, management will have to listen.

If the financial industry is going to send incompetent and uninformed sales reps out to lay garbage investments on the American public, and FINRA is not going to hold the firms and individuals accountable, then American investors only have one choice: play offense.

I strongly encourage each and every investor to put the burden back on Wall Street and utilize the above approach. If the firms, reps, and managers are not willing to accomodate you, then take your business elsewhere.

Caveat Emptor . . . Buyer Beware?? No, I don’t think so.

Caveat Venditor . . . Seller Beware!!

Comments, color, constructive criticisms always appreciated.

LD

Our global economic landscape continues to present new twists, turns, peaks, valleys, and challenges. There are those who believe we are in the midst of a V-shaped recovery, while others see the next Great Depression right around the corner. What is one to do? Where can one turn to make sense of it all so as to most effectively ‘navigate the economic landscape?’ You have come to the right place as No Quarter Radio’s Sense on Cents with Larry Doyle welcomes Danielle Park tonight at 8pm EST.

While many market pundits and Wall Street analysts would attempt to define the ‘rules of the game’ and inform us as to how to play, what has that approach truly ever accomplished? I strongly believe each and every individual needs to understand his own personal situation in the process of navigating one’s own personal economic landscape. To that end, I am thrilled to have Danielle Park join me this Sunday evening. Why?

Danielle brings a perspective to personal finance, the markets, and the economy that is vastly different from what we are fed by the Wall Street establishment. How so? Who is Danielle Park? Let’s go ‘north of the border’ as Danielle lives and works in Ontario, Canada. Danielle is uniquely qualified to address the challenges of our current economic turmoil.

Portfolio Manager, attorney, finance author and television personality Danielle Park, a regular guest on CNBC, BNN, CBC and many other networks, is the author of the best selling myth-busting book Juggling Dynamite: An Insider’s Wisdom on Money Management, Markets and Wealth that Lasts, as well as a popular daily financial blog, Juggling Dynamite.com.

Danielle worked as a litigator until 1997 when she was recruited to work for an international securities firm. Becoming a Chartered Financial Analyst (CFA), she now helps to manage many million dollars for more than a hundred of Canada’s wealthiest families as a Portfolio Manager and analyst at the independent investment counsel firm she co-founded Venable Park Investment Counsel Inc. In recent years Danielle has been writing, speaking and educating industry professionals as well as investors on the risks and realities of investment behaviors.

A member of the the internationally recognized CFA Institute, Toronto Society of Financial Analysts, and the Law Society of Upper Canada. Danielle is also an avid health and fitness buff.

She is a passionate and insightful speaker on financial markets, money management, work/life balance and wisdom.

Little doubt, Ms. Park possesses all the tools to help us most effectively ‘navigate the economic landscape.’ I look forward to what will assuredly be a riveting discussion. Please join us.

LD

Ironic that yesterday, NY Times columnist Charles Blow, certainly an Obama cheerleader from way back, penned a column entitled Obama’s to Fix, in which he cautions the President to stop blaming George Bush for the “mess” he inherited. Clearly, our President, far from undoing such a mess, is daily making a bigger one of his own. Mr. Blow begins with this ominous phrase:

What a difference a year makes.

In October 2008, the candidate Barack Obama delivered a major economic speech in Toledo, Ohio. In it he said: “Right now, we face an immediate economic emergency, and that requires urgent action. We can’t wait to help workers and families and communities who are struggling right now — who don’t know if their job or their retirement will be there tomorrow; who don’t know if next week’s paycheck will cover this month’s bills. … We need to pass an economic rescue plan for the middle-class, and we need to do it not five years from now, not next year, we need to do it right now.

“So today I’m proposing a number of steps that we should take immediately to stabilize our financial system, provide relief to families and communities and help struggling homeowners. It’s a plan that begins with one word that’s on everybody’s mind, and it’s easy to spell: J-O-B-S.”

“Right now,” “immediate economic emergency,” “requires urgent action,” “can’t wait.” Wow! He gave the impression that job creation would be his top priority, that action would be swift and effective, that his solutions would not only stanch the hemorrhaging, but reverse the trend.

He has not made jobs his top priority. This health care debacle, bailing out Wall Street, getting into the car business and generally putting money into the pockets of everyone except those who need it have all taken priority over putting Americans back to work. And, no, putting an extra $13 a week into people’s paychecks is not going to do the trick when as Mr. Blow points out the new official labor statistics have us at 10.2 unemployment, which is an increase of “more than 50 percent from the time Obama gave that speech.”

“(By the way, the underemployment rate, which includes part-time workers who want to work full time and those who’ve given up searching, is a staggering 17.5 percent.)”

I am still at a loss to understand why there was such a great urgency to pass health care legislation that is not supposed to go into effect for more than three years. Someone on another blog made the observation that Obama and Pelosi et al are using the economic crisis and joblessness as a weapon to pass their agenda. As people are panicked at losing their jobs and their healthcare, they are more likely to look to government to bail them out – and more amenable. As Rahm Emanuel said, “never waste a good crisis.” What better time to ram this through. Mr. Blow continues:

Job creation has dropped from top priority to one of many, and President Obama has been remanded to pandering for patience and offering excuses. On the one hand, he argues the tortured rationale that there is good news in the awful numbers: Things are still getting worse but at a slower pace. On the other, he incessantly reminds us that he inherited the crisis. The implication: Don’t blame me, blame Bush.

But this president can’t keep deflecting to the last one. Pain is presently felt. The crisis that took form on Bush’s watch is being experienced on Obama’s. Fair or not, finger-pointing is not effective policy.

This is now Obama’s crisis, and it carries political consequences. During Tuesday’s gubernatorial races in New Jersey and Virginia, nearly 9 in 10 voters said that they were worried about the direction of the nation’s economy in the next year. And the majority of those who held that view voted for the Republican candidates. This could portend a flashback to 1994.

It isn’t President Obama’s fault that he inherited this mess, but it is his to fix, and he must make haste. To paraphrase his Toledo prelection: you need to do it not five years from now, not next year, you need to do it right now. J-O-B-S.

There were many options to put people back to work this year if that was really the priority. Clearly it was not. This President spent almost a billion dollars to get his job. I don’t want to hear complaints now. Obviously, he inherited a mess, which he has made worse with reckless spending. No one expects him to fix everything in the space of a year, but I thought his “good judgment” meant he knew how to prioritize. We need leadership and part of that involves sacrificing one’s ego to help those who need it most. That is far more important than pushing legislation just for the purpose of putting a check mark next to one’s name. You don’t not spend billions, even trillions, you don’t have at a time like this. Since this bunch so miscalculated on their $787 billion stimulus package, I am not inclined to trust them now by handing over 1/6 of the economy to their stewardship.

It is interesting that Mr. Blow, who played the race card on Mr. Obama’s behalf last year, is now joining the ever increasing number of his pundit supporters who are having problems with his endless campaigning, blaming and wrongheaded focus.

As to the health care debate, I called my Congressman’s office Friday morning to complain about the bill and his assistant debated the merits with me. At least she took the time to do so. It was a shame she was wrong on the facts. I told her to go back and read the thing. Now we have a 2,000 page beast that the Senate must contend with and we are told it will never pass in its current form. So why the rush? Why wouldn’t this Administration be in the same kind of rush to help get people back to work?

There are 237 millionaires in Congress. Perhaps that explains why they have difficulty relating to the urgent need to put millions of Americans back of work, instead manufacturing an urgent need to pass labrynthian legislation for the mere purpose of saying “Mission Accomplished.”

Hmm. Where have we heard that phrase before?

No, no, I am not going to focus on their insanity this morning. Rather, the run for the ages was none of those things. It was the running of the 2009 Breeders’ Cup, with a stacked field you wouldn’t believe. There was Mine That Bird, with Calvin Borel on board, the little wonder horse who won the Kentucky Derby this year (and who had had a stellar career in Canada with rider Chantal Sutherland guiding him to a number of victories). And Summer Bird, the Belmont Stakes Winner of 2009. And yes, they have the same sire, Birdstone. The Preakness winner, Rachel Alexandra, with her historic win*, did not make the trip. Her owner and trainer did not want her running on the artificial surface of Santa Anita. Still, as I said, the field was LOADED with exceptional horses. A number of fillies have raced in the Breeders’ Cup Classic, but none have ever won it.

There was quite a bit of drama as they were loading the horses into the starting gate for the Breeders’ Cup Classic. The horse at the number 12 position (out of 13 horses), Quality Road, would not load. It was a tense few minutes as they tried to get him in. He was bucking, rearing, and would have none of it. They put a blindfold on and tried to trick him into going into the gate. They did get him in, but he freaked out again, scratching his hind leg, which meant an immediate scratch (while they were fairly sure it was nothing serious, they weren’t going to take any chances). All of the horses had to be unloaded, and reloaded, into the starting gate, which makes for a tense situation for all of them, and can be quite confusing for the horses.

A little more about Zenyatta. Not only was she undefeated – 13 wins under her belt, but she is a beast – a huge horse at 17 1/2 hh. For comparison, the great horse, Secretariat, was 16.2hh (the same as my Jordan). She loves the crowd, and plays up to them, with a straight-legged front step and pawing of the ground. To say she rises to the occasion is an understatement.

And now, the 2009 Breeders’ Cup Classic – the culmination of the horse-racing season:

Amazing, right? Did you hear Mike Smith say he didn’t even take her through all of her gears? (If she still has more gears to go, I’d sure love to see them. Wow – it’s unimaginable.) How she slowed a bit to pose for the crowd as they roared? And how about her affect as she came back to the stands? Head held high, prancing for the crowd? What a champion. Undefeated, bad start out of the gate, wrong lead, and she STILL wins it against a formidable field. No wonder she is in the discussion for Horse Of The Year, against another amazing filly, Rachel Alexandra. But today was most definitely Zenyatta’s day.

And watching the Breeders’ Cup beats the hell out of having my head explode over the House of Un-Representatives…

*As a reminder, here was the Preakness with Rachel Alexandra going for the first win of the Preakness by a filly since 1924:

Amazing horse – definitely a Horse of the Year contender.

The widely anticipated November Unemployment Report covering the month of October was just released. Let’s dive right in and take a look at the numbers . . .

I. UNEMPLOYMENT RATE
July: 9.5%
August: 9.4%
September: 9.7%
October: 9.8%
– November Consensus Expectation: 9.9%
– November Actual:10.2% !!!!

>> LD’s comments: this is the shocker and will get all the play.

This rate is especially damaging because the participation rate declined. That drop would help the unemployment rate, all other things being equal. The fact that the rate jumped to 10.2% is an indication that job losses jumped much more than otherwise expected with a loss 558k jobs. The underemployment rate (U-6 rate) is 17.5%!!

II. NON-FARM PAYROLL (click here for definition of this term)
July: initial loss of 467k initially revised to a loss of 443k and now revised to a loss of 463k
August: initial loss of 247k revised to a loss of 276k, further revised to -304k
September: initial loss of 216k, revised to a loss of 201k, revised to a loss of 154k
October: a loss of 263k, revised to a loss of 219k
- November Consensus Expectation: loss of 175k
– November Actual: a loss of 190k with revisions of +91k to prior months

>> LD’s comments: this month’s print is slightly worse than expected, but given the revisions the overall non-farm payroll could be spun in a somewhat positive fashion. In my opinion, there has been massaging of these numbers for many months and dare I say market participants are questioning the integrity of the reports. Recall that the birth-death model has likely overestimated job creation by upwards of 800k jobs. More of the same here? Perhaps, if not likely. Temporary workers did increase by 36k jobs.

III. AVERAGE HOURLY EARNINGS
July: 0.0%
August: +.2% revised to +.3
September: came in at .3 but then revised to .4%
October: .1%
– November Consensus Expectation: +.1%
– November Actual:+.3%

>>LD’s comment: a positive for those working, but in conjunction with no movement in the hourly workweek this is muted.

IV. AVERAGE HOURLY WORKWEEK
July: 33.0 hours
August: 33.1 hours
September: 33.1 hours
October: 33.0 hours
– November Consensus Expectation: 33.0 hours
– November Actual:33.0 hours

>> LD’s comments: no indication here of any strength. This number rests at a low going back to 1964.

V. FURTHER COLOR
It’s all about the headline print of 10.2%. That number will spook consumers and keep Consumer Confidence under pressure. The Fed will clearly remain on hold for as extended as extended can be. I expect this report will cause Washington to talk about the need for another stimulus package.

VI. MARKET REACTION
At 8:10am:

2yr Tsy: .89%
10yr Tsy: 3.52%
S&P 500 Futures: +2
DJIA Futures: +14
U. S. Dollar Index: 75.78

At 8:50am, Post-Report:

2yr Tsy: .85%
10yr Tsy: 3.47%
S&P 500 Futures: -8
DJIA Futures: -68
U.S. Dollar Index: 75.86

Questions, comments, constructive criticisms always encouraged and appreciated. Thanks.

LD

Due to the tragic events at Fort Hood yesterday, this post was delayed out of respect for those who were lost and wounded. Our thoughts and prayers are with their families, friends, and all those serving at Fort Hood.

Bleary eyed, but sated with my celebratory Belgian pecan waffles, turkey link sausages, numerous cappuccinos, and with a goofy grin plastered on my face, I am happy to report that the New York Yankees have won their 27th World Series Championship. Woohoo!!

The Yankees have christened their new stadium with their 27th World Series Championship in 40 tries. They won the Series 4 – 2 over a gutsy, exceptional Philadelphia Phillies team with a strong 5 2/3 showing by Andy Pettitte. Pettitte gave up 3 runs, but battled hard for outs and got the ones that counted even though he only had 3 days rest. Pedro Martinez was operating on regular rest, but that didn’t keep the Yankees from driving him out of the game early. Joba Chamberlain and Demaso Marte held down the fort until the Yankees could bring in the greatest reliever of all time, Mariano Rivera. Rivera got the last 5 outs of the game, capping a phenomenal year, and post-season, with a final score of 7 – 3. Derek Jeter recorded his 175th hit in his post season appearances, and had a hit in all but one game in the entire Post Season. Alex Rodriguez was hit by pitches three times, as was Mark Teixiera, but A-Rod also provided a tremendous spark to the offense, casting of the demons of post seasons past.

The Yankees manager, Joe Girardi, won 3 World Series rings as a Yankees player (catcher), and has now won 1 as a manager in only his second year at the helm. That is quite a feat. And quite a feat to have done both for the same team. Not only is he a great manager, and a great player in his day, but a great humanitarian, too. On his way home from the stadium last night, after their big win, he stopped and helped a woman who had crashed her car into a wall. Not only did he check on her and make sure she was okay, but he flagged down a police car for her. Oh, and he had to run across a highway on which people routinely go 80 mph, according to the article link above. He didn’t tell the woman who he was, either. She found that out after the fact. That’s one helluva guy.

The Yankees, with the best record in baseball (103 wins in the Regular Season), played like the best team in baseball, and earned this 27th World Series Championship.

(Gallery of Photos, NJ.com)

Hideki Matsui earned the World Series MVP on the strength of his bat, driving in 6 runs Weds. night, tying a 49 year old record held by Bobby Richardson, also a Yankee. Matsui’s contribution to the team throughout the postseason was simply outstanding.

(Eric Gay/AP)

This team started out slowly at the beginning of the season, losing their ace, Chien Ming Wang, early in the season. Alex Rodriguez was out for almost a month following hip surgery, with more surgery to follow in the off season. Mark Teixeira was also off to a very slow start with his bat, but not his defense. Yankee fans were dismayed, to say the least, when the Yankees were swept by the Red Sox – TWICE – early on.

But then something happened – A-Rod came back, Tex’s bat began to match his defensive prowess, the pitchers started locating their pitchers, and the team became a team. People often complain about how much money the Yankees spend on their players, but all the money in the world doesn’t buy you a Championship – it has to be won. This team, this 2009 club, is just that – a TEAM. They enjoy each other, have fun with each other, and they are passionate about playing the game. We usually hear about the highly paid players, like A-Rod, or Tex, or CC Sabathia. But there are plenty of players on that team who contributed who do not rake in the big bucks. The point is something happened this year. Despite their slow start, despite losing some crucial players, this team jelled as a team. They backed each other up, they worked for every win, and as a result, they are now the new World Series Champions.

Oh, and for all of the Yankee haters, here is a little piece of trivia for you – when the Yankees win the World Series, historically stocks go up, especially when they do it in 6 games! So, even if you hate them, there is a total bonus to them winning!

Here is Hal Stein Steinbrenner, son of The Boss, George Steinbrenner, talking about this team, and this win:

This win came exactly 9 years after the Yankees lost the World Series in Game 7 back in 2001. That was an emotional year for the Yankees, for the entire country, coming as it did on the heels of the attacks on the World Trade Towers. It is fitting that this week, the week the Yankees claim their Championship, in New York City Harbor is the USS New York awaiting its commission. This new ship is partially made with 7.5 tons of reclaimed steel from the rubble of the World Trade Towers. While traditionally* only submarines are named for states, former NY State Governor Pataki lobbied to have this state of the art ship named for New York as both a memorial and a monument to those who were lost, and for those who will take the fight to our attackers. The ship’s motto: Never Forget. Here it is sailing into New York City Harbor this week:

(AP Photo, Newsday.com)

Secretary of State Hillary Clinton will commission this assault ship on Saturday. Secretary Clinton will represent the Administration, but as a NY State senator at the time of the attacks, and one who worked diligently for the First Responders in New York City, it is most fitting that she has this honor.

It is a big week for New York City, for the Yankees as they clinch their 27th Championship, and as this great monument to those who were lost at 9/11 is commissioned into active duty.

Go, Yankees! Only four and a half more months until Spring Training starts!

* Please see comment below on naming of ships/submarines – while accurate that a certain class of submarines receive the names of states, that appears to be a fairly recent event.

Who would have projected the twists and turns we have experienced on our global economic landscape? Who would have forecasted the ups and downs in the markets? Who has the global perspective to project where our economies and markets are headed? While the future is always uncertain, experience is always the best teacher. Where can one turn to gain riveting insights and perspectives from some of the sharpest minds in the market today?

Welcome to No Quarter Radio’s Sense on Cents with Larry Doyle as I welcome Keith Fitz-Gerald to my show tonight at 8pm. So, who is Keith Fitz-Gerald? From Keith’s own website, we learn:

When Keith speaks, savvy investors listen. He is one of the few to correctly call the dot.bomb collapse in 2000, the cyclical recovery in 2003 and the credit crisis in 2007 – a full year in advance. He’s got one of the best documented (and most accurate) predictive records in the business.

Keith is the Chief Investment Strategist for Money Map Press and Money Morning, is read by more than 500,000 subscribers each day in 30 countries. It’s free just in case you’re wondering. He also writes the following paid publications: The New China Trader, The Money Map Report, The Geiger Index and The Time Trader Pro – each of which is also read by customers around the world.

A former professional trade advisor, Keith has provided analysis, trading direction, and performance measurement to institutions and qualified individuals for more than twenty years. He is regarded as one of the world’s leading experts on global investing and is a popular, highly sought after speaker at financial conferences around the world – especially when it comes to Asia.

A frequent traveler who lives part-time each year in Asia, he believes in boots on the ground when it comes to identifying opportunities that will profit.

Keith is also a founding Fellow of the Kenos Circle, a Vienna, Austria-based think tank whose members work with institutional, corporate, and government clients worldwide to predict future economic and financial events.

Keith authored the recently released book, Fiscal Hangover, which addresses how to protect your money and profit in the new global economy.

Keith speaks at conferences and symposiums around the world. Don’t miss him on Sunday evening for what will assuredly be a fascinating conversation as we collectively ‘navigate the economic landscape.’

LD

This is rich. We know about Obama’s many, many czars. Mark Steyn believes Obama has another one, someone of whom you have heard, but who isn’t on the usual list,

Obama Makes Bush His Blame Czar. You know, he has a point – we’ve been hearing for months now “He did it!” from Obama on all sorts of issues.

Steyn begins his piece writing about “Barack’s Rock,” Valerie Jarrett:

Valerie Jarrett announced the other day that “we’re going to speak truth to power.”

Who’s Valerie Jarrett? She’s “Senior Adviser” to the president of the United States – i.e., the leader of the most powerful nation on the face of the Earth. You would think the most powerful man in the most powerful nation would find a hard job finding anyone on the planet to “speak truth to power” to. But I suppose if you’re as eager to do so as his Senior Adviser, there’s always somebody out there: The Supreme Leader of Iran. The Prime Minister of Belgium. The Deputy Tourism Minister of the Solomon Islands. But no. The Senior Adviser has selected targets closer to home: “I think that what the administration has said very clearly is that we’re going to speak truth to power. When we saw all of the distortions in the course of the summer, when people were coming down to town hall meetings and putting up signs that were scaring seniors to death.”

Ah, right. People “putting up signs.” Can’t have that, can we? The most powerful woman in the inner circle of the most powerful man on Earth has decided to speak truth to powerful people standing in the street with handwritten placards saying “THIS GRAN’MA ISN’T SHOVEL READY.” Was it only a week ago that I wrote about this administration’s peculiar need for domestic enemies?

The Senior Adviser seems to have forgotten that she is the power. Admittedly, this is a recurring lapse on the part of the administration. There was Barack Obama only the other day, blaming everything on the president – no, no, silly, not him, the other fellow, the Designated Fall Guy who stepped down as head of state in January to accept the new constitutional position of Blame Czar. Musing on problems in Afghanistan, Obama blamed the “long years of drift” under his predecessor. The new president – OK, newish president – has been Drifter-in-Chief for almost a year but he’s too busy speaking truth to the former power to get on top of the situation. It could be a while yet. In his more self-regarding moments, such as his speech to the United Nations, he gives the strong impression that the “long years of drift” began in 1776.

Indeed, Ms. Jarrett thinks throwing around phrases pulled from those who are actually in the trenches will give her some street cred. You don’t think anyone fell for that hooey, do you? Just in case you know anyone who did, you can tell them that she is a lawyer, married to a doctor, and was on the Chicago Stock Exchange. So, yeah, not exactly a career in the Peace Corps., or hell, even AmeriCorps. Just more posturing on the part of the Obama Administration.

Just like Obama’s blame shifting. Just more posturing to protect his carefully crafted image:

Rocco Landesman, head honcho at the National Endowment for the Arts, seems closer to the reality of the situation. In his keynote address to the 2009 “Grantmakers in the Arts” conference, Landesman hailed Obama as “the most powerful writer since Julius Caesar”. He didn’t mean a “powerful writer” as in a compelling voice, gripping narrative, vivid characterization, command of language, etc. He meant a “powerful writer” as in Caesar was king of the world, and now Obama is. He came, he saw, he stimulated: “If you accept the premise, and I do, that the United States is the most powerful country in the world, then Barack Obama is the most powerful writer since Julius Caesar. That has to be good for American artists.”

I suppose so. He could invade somewhere and force the natives to accept degrading roles in NEA-funded performance art. He could take out the Iranian nuclear program by carpet-bombing it with unreadable literary novels. That is, if you “accept the premise” that the United States is the most powerful country in the world. Rocco Landesman may, but it’s not clear, from his actions (or inactions) in Eastern Europe, Iran, Afghanistan and elsewhere, that the president does. But, even so, it seems an odd pitch to “American artists.” Rocco Landesman, Speaking Goof to Power, isn’t the first Obama groupie to enjoy the kinky frisson of groveling obsequiousness, but he’s set an impressive new standard in public revelation thereof. Rocco’s aunt, Fran Landesman, is the great lyricist of “Spring Can Really Hang You Up The Most” as well as “The Ballad Of The Sad Young Men.” But surely there are few sadder middle-age men than her nephew, prostrating himself before his master as the most literate global colossus in two millennia.

Oh, I wouldn’t be so sure about that, but I take his point. Still, there are a whole bunch of sad “middle-age men” who would fit that bill. Chris Matthews springs immediately to mind.

Speaking of the NEA:

Meanwhile, Larry David is now doing televised NEA exhibits on his HBO show “Curb Your Enthusiasm.” Christians are said to be “angry” at him because of an episode in which, after he accidentally sprays his urine on a picture of Jesus, his assistant mistakes the droplets for tears and calls in her mother to witness the miracle of Christ weeping. Ha-ha! Oh, those brave transgressive artists! Of course, Christians aren’t “angry” in the sense that two U.S. residents arrested last week are. The pair – one an American citizen, the other Canadian – were so “angry” about the Muhammad cartoons published in the Danish newspaper Jyllands-Posten that they hatched a plot to kill the artist and his editor. As many commentators pointed out, Mr. David’s splashy stunt is a dreary provocation: It’s easy to be provocative with people who can’t be provoked. If he were to start urinating in a more Mecca-ly direction, he’d find an entirely more motivated crowd waiting for him at the stage door.

But I liked the point made by the Anchoress, a writer at the magazine First Things: Putting Muhammad, et al aside, if Larry David had a yen to urinate hither and yon, wouldn’t it have been “braver” to have done it to the religious icon du jour? That’s to say, Barack Obama. And then maybe Ashton Kutcher could have marveled at how even Obama’s image was empathizing tearily with all 687 million Americans without health insurance. Or, alternatively, dribbling warm champagne from his Norwegian Nobel banquet toast. C’mon, Larry. Sure, you might not have a career afterward, but, unlike any Islamo-provocations, you’re not gonna get killed. Just fired, and probably damned as a racist. But at least you wouldn’t be a simpering suck-up to power like Rocco Landesman and the other creeps.

“Religious icon du jour” – priceless. I mean, c’mon, obviously he is – just check out that Chia commercial. And I wouldn’t hold my breath on the end of sucking-up, but that’s just me:

At some point the Caesar cult has to manifest itself in an achievement – I mean a real achievement, not merely some dud prize handed out by Norwegian Lefties. Afghanistan is his now: Notwithstanding “years of drift,” whether it winds up as victory or defeat is his call. It’s Obama’s war. It’s Obama’s economy. The stimulus bill is his stimulus, and for $787 billion it created 30,000 new jobs (according to the government) or (according to the Associated Press) 25,000. Either way, you do the math. It’s Obama’s unemployment rate, Obama’s dollar, Obama’s debt. Pace Valerie Jarrett, the truth is you are the power. And those on the receiving end of it are going to be speaking a lot louder in the months ahead.

Yep, it surely is all Obama’s now. And not for nothing, but it isn’t like the Democrats didn’t control both houses for two years before Obama got into the White House. There is a lot for which Bush is responsible, but at some point, Obama needs to stop making him the Blame Czar, and start doing his job.