The Market Bull – April 11, 2019
The major averages couldn’t hold their early gains and closed with small losses on little news of significance.
The March Producer Price Index of PPI surprised to the upside with a .6% gain on a big jump in energy prices for the month. On a year ago basis the PPI increased 2.2%, still very low by historical standards. While this exceeds the Fed’s 2% inflation target it isn’t likely to alter their view on interest rates, currently no change in rates is expected this year. In fact there is considerable talk of cuts and another round of QE or Quantitative Easing, something that has blown destabilizing asset bubbles to the benefit of the Wall Street economy but has done little to help the Main Street economy.
Some of the burning questions left unanswered after the Great Financial Crisis or GFC in 2007-2009 include what the extent of the bailouts was, and what was the total in fines assessed. For the first time we have the answers compliments of the nonprofit watchdog Better Markets who conveniently released a study titled “The RAP Sheet for Wall Street’s Biggest Banks’ Crime Spree”. It noted that of the more than 29 trillion Dollars in total bailouts from the GFC some 8.2 trillion went to the 6 biggest US banks, AKA the too big to fail, or jail crowd including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo. An additional $700 billion taxpayer dollars was made available under the TARP program. These “Banks” weren’t just staid basic depository institutions they were in fact giant financial conglomerates involved in all manner of risk taking much of which was central to the actual crisis. In their desire to maximize profits, caution was thrown to the wind and when combined with an environment of lax and declining regulation led to the crisis. As the bailouts effectively socialized losses while profits remained private one of the most basic tenets of capitalism was violated along the way, namely that failure leads to bankruptcy. But the worst part of all this is that in the post crisis and bailout period the banksters have not changed their ways, continuing their crime spree directed at the American public, pursuing it with even greater gusto and violating almost every rule and law imaginable in the process. You can read the whole thing here.
Standard and Poors 500 Index closed at: 2,888.32 up .11
NASDAQ finished the day: 7,947.36 down 16.88
Gold ended trading at: $1,29.00 down $18.90