- “A rising stock market encouraged more investors to go into debt to buy stocks, sending margin debt levels past their all-time high”.
- “The National Association of Securities Dealers (NASD) has asked members to review their lending requirements in a sign of increasing concern that rising levels of margin debt could exacerbate a stock market plunch.”
- “The Fed is concerned about a sharp rise in margin debt but has been unwilling to attack stock market speculation as high levels of leverage do not necessarily translate into high risk. The last time the Fed adjusted the margin rules was in 1974, when when it reduced the down payment required for stocks to 50 percent of the purchase price, from 65 percent.” […] “The Fed should return to its pre- 1974 policy of actively changing margin requirements in response to stock market speculation”.
- “High margin debts show the effect of over-leveraging and mispricing of risk”.
- “The movements in stocks cause brokerages to stop allowing customers to buy some of the volatile stocks on margin or require clients to put up more cash.”
- “Either the market rises dramatically to make those loans good or in any down move there is tremendous selling pressure”.
- “Until recently, most investors ignored red flags raised by regulators”.
“AMERICAN investors have taken out more margin loans than ever before. That indicates that speculative investing has grown among retail investors, reaching levels that in the past indicated the market was getting to unsustainable levels and might be in for a fall. [...]It was the first time the total had surpassed the 2007 peak of $381 billion, a peak that was followed by the Great Recession and credit crisis. [...][T]he last time the Fed adjusted the margin rules was in 1974, when it reduced the down payment required for stocks to 50 percent of the purchase price, from 65 percent. ...]Nonetheless,margin loans have remained popular among many individual investors, who tend to raise their borrowings during times of market optimism and to reduce them when markets are falling. Thus the margin debt levels now may provide an indication of popular enthusiasm for investments.”
Aug 08, 2013 - 06:15 PM GMT
There’s the old saying that if the government fears the people, there is liberty, but if the people fear the government there is tyranny. The criminals in Washington not only do not fear us, they do not respect us. Washington looks upon Americans as stupid sheeple.
Washington believes that it can tell the population anything and the people will believe it. For example, the official line is that the recession that began in December 2007 ended in June 2009. Many Americans believe this even thought they have not personally experienced economic recovery. Indeed, they are sinking further into poverty and near poverty.
And don’t forget those nonexistent weapons of mass destruction that Saddam Hussein was alleged by Washington to possess. Or the Gulf of Tonkin fake event when Washington claimed that its warship was attacked by North Vietnam. Really, the list of official lies is very long. Anyone who believes anything that Washington says is too naive to be let out of the house alone. But Americans believe the lies, because that is what they think patriotism requires.
Relying on the proven gullibility of the bulk of the US population, Washington claims to have uncovered an al Qaeda plot to attack US embassies across North Africa and the Middle East. To foil the plot, Washington closed 19 embassies for the past week-end and for this week also.
Washington has not explained how closing the embassies foils the plot. If al Qaeda wants to blow up the embassies, it can blow them up whether they are open or closed.
If al Qaeda wants to kill the embassy personnel, they can kill them at home or on the way to work or later in the embassies when the alert passes.
I only check in with the presstitute media in order to ascertain whether my current estimate of their prostitution for Washington is accurate. Possibly I missed some expression of skepticism about the latest terrorist threat. But I did hear NPR’s account. Back in the Reagan years, NPR was an independent voice. Today it is part of the presstitute media. NPR lies for Washington with the best of them.
The US media has ignored the obvious fact that as soon as the American population, Congress, and Washington’s puppet allies, such as Germany, made an issue over the NSA’s clearly unconstitutional and totally illegal universal spying, the Obama regime pushed the Fear Button and hyped a new terror plot in order to shut up critics and bring Congress and Germany back in line.
Washington proclaimed that a “threat” was discovered that al Qaeda–an organization that Washington is using in Washington’s effort to overthrow the Assad government in Syria and one that is enriched by US military contracts to affiliated groups in Afghanistan–was going to blow up US embassies in the Middle East and North Africa. Washington did not explain why al Qaeda, a recipient of Washington’s largess, was going to turn off the money spigot by attacking US embassies.
I am surprised that bombs haven’t been set off in the embassies in order to prove the value of the National Stasi Agency’s spying, thereby shaming those in Congress and among the puppet states in Europe who object to the spying.
Once you give a moment’s thought to Washington’s claim, you see that Washington is proving its impotence by hyping such non-existent threats. Officially, the US has been at war with al Qaeda since October 7, 2001. The “superpower” has been battling a few thousand lightly armed al Qaeda for almost 12 years, and what is the result?
Despite Washington’s claims to have killed al Qaeda’s top leaders, including Osama bin Laden himself, Washington has lost the war. Al Qaeda has grown so powerful that it not only fights in Syria, with Washington’s help, against Assad, but also has prevented the US military from occupying Afghanistan. Moreover, in addition to al Qaeda’s military success against the “superpower” and the chaos that al Qaeda continues to produce in Iraq, al Qaeda now is so powerful that it can shut down US embassies all across the Middle East and North Africa. The “threat” which was supposed to boost the NSA’s position actually proves Washington’s powerlessness.
We an only pray that soon al Qaeda shuts down Washington itself. Imagine the sense of American liberation if Washington simply was shut down, or even better if Washington could be put under Punjab’s magic blanket and disappeared. For the 99 percent, and the rest of the world, Washington is nothing but an oppressor.
Paul Craig Roberts
We've seen one of the most groundbreaking intelligence scandals in history. Leaked to sources such as the Guardian, whistleblower Edward Snowden released a trove of files showing the NSA among others is not only spying on Americans, they are also monitoring conferences such as political negotiations, foreign diplomatic offices, and more.
- The number of employed was 3,621,153, a decline of 14,889 from April, and down 171,356 from a year earlier
- The number of unemployed was a record high 1,381,088, an increase of 43,467 from April, and up 193,668 from a year earlier
- The unemployment rate was a record high 27.6%, up from 26.9% in April and 23.8% a year earlier