Union Jobs Are The New iPads As 1500 New Yorkers Camp Out Three Freezing Days For A $17.20/Hour Job

While this morning’s dismal jobs data is being blamed on the weather (despite no other recent indicator reflecting the same effect), it seems New Yorkers are not afraid of the cold. In fact, as FoxNY reports, it seems there is a new ‘must-have’ for the New Year – a Union Job. 1,500 people have been on line since 1pm on Tuesday for a ‘coveted’ union job that pays $17.20 per hour (for painting and decorating apprenticeships) and could lead to a full-time union position. Forget the iPhone5S, union jobs is where it’s at…

 

New York News

 

Via FoxNY,

The line wrapped nearly around an entire city block on Friday as approximately 1,500 people waited in Queens for a chance to apply for a coveted union job.

 

The first few people on line had been there since 1 p.m. on Tuesday when the temperature in New York City was in the single digits.

 

District Council 9 is accepting 500 applications in Long Island City for painting and decorating apprenticeships.

 

The hired will receive a salary of $17.20 an hour during the first year.

 

The apprenticeship could lead to a full time union position.

 

Maybe Apple (or Microsoft or Sony) should consider offering a union-job with the next release of their products? Given today’s jobs data, we suspect the demand for the latter may outstrip demand for the former very very soon…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/5cLHXo4K_Bk/story01.htm Tyler Durden

The Grand SCOTUS Facade

The Grand SCOTUS Facade

By

Cognitive Dissonance

 

There is a widely held and increasingly difficult to believe myth that the three branches of the United States government operate independently from each other, thus acting as checks and balances upon each other. And the reality is that as long as it suits The Empire’s self interest those three branches of government will outwardly appear to operate as directed by the constitution.

But if the supremacy of The Empire is threatened by external or internal forces those very same three governmental branches, either separately or in unison, will act to protect The Empire and its special interests………and the Constitution be damned if it gets in the way. Let me repeat that. The Empire will protect itself from itself, from its own greed, corruption, malfeasance, incompetence and especially from its oppressed and enslaved citizens. It is then that the facade of separation of powers begins to slip and fade away.

For example in decades past the Supreme Court of the United States (SCOTUS) affirmed slavery in America and then approved by abstention Abraham Lincoln’s blatantly unconstitutional power grab from the states, only to rule against it after the Civil War had ended and the damage had been done. Incredibly they even ratified the corralling of US citizens of Japanese descent during WW2 and the taking of their property without compensation.

And just recently The SCOTUS confirmed that the Affordable Care Act, aka Obamacare, was constitutional because it’s just a little tax after all. Some said this was a surprising decision, but we knew it was a slam dunk because it supported the teetering Empire with additional tax revenue and control of its ‘citizens’. And this doesn’t even begin to cover the actual list of Empire ass covering rulings by The SCOTUS nor does it mention the long list of legislative or executive affronts to ‘We the People’.

Similarly, as long as it suited The Empire the myth was widely propagated that the USA was the land of milk and honey and egalitarianism ran riot in the streets. As long as productivity increases outpaced the cost of gruel and there was still plenty of financial leverage to exploit, the slaves of the nation were fed a steady propaganda diet of shared prosperity for their share of the elbow grease.

This comforting myth was helped along by switching from one wage earner households to two under the guise of equal rights for women and upward mobility for all. In addition, plenty of cool gadgets and baubles were produced and sold (at double the cost plus profit of course, this being the birth place of [crony] capitalism) in order to entertain the debt and wage slaves while carefully disguised, but none-the-less much higher than advertised, inflation ate them alive.

Now that it is no longer in the best interest of the now bloated and corrupt Empire to maintain the facade, the pretty red velvet curtain at the back of the stage is slowly being removed and the crumbling brick wall is exposed for all to see. It’s time to tighten our belts my fellow peons because the elite are having trouble maintaining their year over year double digit increases in wealth.   

As many are beginning to realize, the dismantling of the middle class has begun in earnest and the various branches of government are now obviously and blatantly rallying to protect and serve The Empire. This is accomplished using many brilliantly applied techniques such as bait and switch social programs, bread and circuses for the masses, fear mongering for the weak willed and impressionable, nationalistic propaganda, manufactured left/right ideological conflicts and that old standby, good old fashioned subterfuge. Who doesn’t love it when they slop more lipstick on the pig and slap another coat of wet paint on the dry rot?

It was with this firmly in mind that I stumbled across a photo essay in Politico Magazine entitled 18 Photographs That Will Change Your View of Washington”. This was not my fault; I clicked on a link, then another link, then another when suddenly I found myself in the cesspool of Politico Magazine. Upon arriving and realizing I was already knee deep in DC excrement I plunged ahead and clicked away.

What I found after the third or fourth click took my breath away and shocked me in a way I had never quit experienced. I was so startled that I just stared at the image open mouth and mesmerized, not quite believing my eyes, stunned that ‘they’ would do such a thing. At one point I turned to Mrs. Cog in disbelief and begged her to look at my screen and confirm that what I was seeing wasn’t really what I was seeing. Alas, Mrs. Cog verified that while I may be old and senile, my cataracts had not blurred my vision to such an extent that what I thought I was seeing was not.

It seems that the exterior of the Supreme Court building is undergoing what was described as renovations and some scaffolding needed to go up. While it didn’t mention why they do so, it is common practice to place tarps over the exterior of the scaffolding to catch stray dirt and debris. In fact I believe that somewhere in the constitution there is a passage about keeping the Supreme Court Justice’s black robes clean at all costs during remodeling, so the tarps were completely understandable.

SCOTUS Facade

What was so alarming to me was the image that had been printed on the tarp which covered the entire depth and breadth of the SCOTUS building. A life size (and anatomically correct) picture of the SCOTUS building facade had been painted on the tarp, which was in turn covering the actual SCOTUS building facade, which itself is just an architectural fantasy and placed there only to project an image of strength, integrity and justice for all. I was staring at a simulation of a simulation of a lie if you will, and at taxpayers’ expense no less. Simply amazing the size balls these guys and gals have.

Personally I suspect they’re looting the place under cover of tarp and when the wraps come off martial law will go up and the ugly brick wall will be fully exposed for all to see. Of course this is precisely when the SCOTUS will spring into action and rule that the final nail driven into the constitution is in fact constitutional precisely because it serves to support The Empire.

It is my understanding that something similar was done to the Washington Monument while they repaired the damage done by God’s wrath, also known as an earthquake. And now I read that the Dome of the U.S. Capital Building is currently undergoing a two year restoration because that too is falling apart at the seams. No word yet on if they will paint a picture of the dome on the Dome, but personally I vote for an image of the Three Stooges instead. It’s so apropos.

 

01-10-2014

Cognitive Dissonance

 

P.S. – Don’t you just love this image of some tourists taking a picture of the picture of the SCOTUS facade? It speaks volumes about your average American.

SCOTUS Facade Tourists

Then again, the above picture is a picture of tourists taking pictures of a picture of the SCOTUS facade. Just where this all ends is anybody’s guess. Cue the hall of mirrors.

<Please, someone take a screenshot of this image and pass it on. It’s the patriotic thing to do. >


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/J2VPMg0OzOg/story01.htm Cognitive Dissonance

Fed Hints At Reason For QE5: Obamacare

While excess risk-taking and broken markets likely dominate their thinking, the ‘real economic recovery’ meme the Fed is using to enable them to ‘taper’ their excesses. However, investors remain assured that if things get worse once again then the Fed will crank the presses and save the assets. It seems they have found their new excuse – no matter what…

  • *LACKER EXPECTS ‘A LOT OF TURMOIL’ IN HEALTH CARE INDUSTRY
  • *LACKER SAYS FED WILL BE WATCHING HEALTHCARE CLOSELY IN NEXT FEW YEARS

So, despite admitting asset-bubbles, fears over stock-multiples and excessively easy lending; the Fed will launch QE5 when Obamacare drags the US economy into trouble

  • LACKER SAYS HEALTHCARE ACT COULD HAVE SUBSTANTIAL ECONOMIC IMPACT, SMALL BUSINESS LOOKING FOR HOW BEST TO HANDLE

But – that’s not what Obama said!


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/BlcX_ymPRm8/story01.htm Tyler Durden

Druckenmiller On Chris Christie: “Once In A Generation Leader”

With the FBI joining investigations into the New Jersey Governor's Bridge-Gate scandal (and David Wildstein 'pleading da fif'), it would appear Chris Christie is calling in some favors. Bloomberg TV's Stephanie Ruhle reports this moring that the billionaire money manager Stan Druckenmiller proclaimed, "Governor Christie's actions yesterday reinforces my admiration for him," as he (rightly) pointed out that "the country thirsts for a great leader. A leader's actions in crisis are revealing." Druckenmiller went on to explain in his statement that he "believes Chris Christie is a once-in-a-generation leader… and he is showing essential executive skills as a manager: ensuring accountability and taking responsibility."

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/1EoaLBRaXfw/story01.htm Tyler Durden

Druckenmiller On Chris Christie: "Once In A Generation Leader"

With the FBI joining investigations into the New Jersey Governor's Bridge-Gate scandal (and David Wildstein 'pleading da fif'), it would appear Chris Christie is calling in some favors. Bloomberg TV's Stephanie Ruhle reports this moring that the billionaire money manager Stan Druckenmiller proclaimed, "Governor Christie's actions yesterday reinforces my admiration for him," as he (rightly) pointed out that "the country thirsts for a great leader. A leader's actions in crisis are revealing." Druckenmiller went on to explain in his statement that he "believes Chris Christie is a once-in-a-generation leader… and he is showing essential executive skills as a manager: ensuring accountability and taking responsibility."

 


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/1EoaLBRaXfw/story01.htm Tyler Durden

And The Market Breaks

If one has no access to a market pricing service, perhaps the simplest and easiest way of testing if the market is down, is to check the NASDAQ market system status page. Usually, on down days, the NASDAQ just, well, breaks. As it did moments ago when it announced that trading in options with a symbol range A through M has been halted.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/Y4BXX1TqqNY/story01.htm Tyler Durden

European Peripheral Stocks Exploded Higher This Week

Even Draghi proclaimed anyone calling the crisis over as ‘premature’ but that was ignored by the fast-money momo chasers looking for where to rotate their cash on the sidelines as US momentum fades. Greece, Portugal, and Spain stocks literally exploded higher this week:

  • Greece +7.7% – best week in 8 months
  • Portugal +4.7% – best week in 9 months
  • Spain +4.98% – best week in 16 months

Sounds right?! Efficient markets, indeed…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/4ZQoXHFKlmw/story01.htm Tyler Durden

More Than Half Of December Jobs Added Were Temporary

Once again, in its sheer panic to tout the quantity, or lack thereof, in the case of the December jobs number, the frenzied media and pundits completely ignored the quality of the jobs gained in the last month of December. Or lack thereof. Because as the simple breakdown below shows, of the 74K jobs gained in December, 55%, or 40K were the worst of the lot when it comes to wages or benefits: temporary jobs.

As for the other job additions? Well, between Temp Help, and the bottom of the barrel paying Retail and Wholesale Trade jobs, the total additions were 111K. Which means all the other, better-paying, job groups saw… a drop of 35K.

In other words, the “recovery” may be lacking in numbers, but at least it is completely lacking in quality. And oh yes: remember – when it is snowing outside, employers only hire temp workers, hence it’s the weather’s fault.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/bEE4FJXjENk/story01.htm Tyler Durden

Bank Of America Smiles On Its Junior Bankers, Tells Them To Take 4 Weekend Days Off

In a memo to employees today, Bank of America has made some ‘improvements’ to its recommendations for analysts and associates working hours…

  • *BOFA ANNOUNCES IMPROVEMENT IN WORKING CONDITIONS FOR JUNIORS
  • *BOFA SAYS JUNIOR BANKERS SHOULD TAKE 4 WEEKEND DAYS OFF A MONTH
This comes on the heels of the death of a 21-year old intern in August who “pulled eight all-nighters in two weeks” prior to his death. Next they will be demanding a rise in minimum wage…
Why is BofA ‘smiling’ on its juniors?

From August:

Bank of America Merrill Lynch has announced it will review working conditions for junior employees after the death of a 21-year-old intern last week.

 

Moritz Erhardt, a Bank of America Merrill Lynch intern, was found dead in his dorm in London. A spokesperson for the London Metropolitan police said the death had been ruled “unsuspicious,” and that the medical examiner was expected to release its findings later this week.

 

 

The company will particularly be looking at the working conditions faced by junior employees and interns.

 

Erhardt, a German student, was finishing his summer internship at Bank of America Merrill Lynch, a competitive seven-week program in which interns often work overtime during their placement, the bank confirmed.

 

According to the U.K’s Independent, an unidentified intern, who lived in the same building as Erhardt, said the German intern had been staying up for days during the last few weeks of the internship.

 

“He apparently pulled eight all-nighters in two weeks. They get you working crazy hours, and maybe it was just too much for him in the end,” the intern told The Independent.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/V4Ryd6bI8BQ/story01.htm Tyler Durden

Market Bulls Should Consider These Charts

Submitted by Lance Roberts of STA Wealth Management,

There have been a litany of articles written recently discussing how the stock market is set for a continued bull rally.  The are some primary points that are common threads among each of these articles which are:  1) interest rates are low, 2) corporate profitability is high, and; 3) the Fed's monetary programs continue to put a floor under stocks.  The problem is that while I do not disagree with any of those points – they are all artificially influenced by outside factors.  Interest rates are low because of the Federal Reserve's actions, corporate profitability is high due to accounting rule changes following the financial crisis and the Fed's liquidity program artificially inflates stock prices.

However, while the promise of a continued bull market is very enticing it is important to remember, as investors, that we have only one job:  "Buy Low/Sell High."  It is a simple rule that is more often than not forgotten as "greed" replaces "logic."  However, it is also that simple emotion of greed that tends to lead to devastating losses.  Therefore, if your portfolio, and ultimately your retirement, is dependent upon the thesis of a continued bull market you should at least consider the following charts.


It is often stated that valuations are still cheap.   The chart below shows Dr. Robert Shiller's cyclically adjusted P/E ratio.  The problem is that current valuations only appear cheap when compared to the peak in 2000.  In order to put valuations into perspective I have capped P/E's at 25x trailing earnings as this has been the level where secular bull markets have previously ended.  I have noted the peak valuations in periods that have exceeded that level.

PE-Deviation-010914

The next chart is Tobin's Q Ratio.  James Tobin of Yale University, Nobel laureate in economics, hypothesized that the combined market value of all the companies on the stock market should be about equal to their replacement costs. The Q ratio is calculated as the market value of a company divided by the replacement value of the firm's assets.  With the exception of the "tech bubble" we are near the peak of every major bull market in history.

Q-Ratio-SP500-010914

One argument that I hear made consistently is that retail investors are just now beginning to jump into the market.  The chart below shows the percentage of stocks, bonds and cash owned by individual investors according to the American Association of Individual Investor's survey.  As you can see, equity ownership and near record low levels of cash suggest that the individual investor is "all in."

AAII-Allocations-010914

Of course, with investors fully committed to stocks it is not surprising to see margin debt as a percentage of the S&P 500 at record levels also.  It is important to notice that sharp spikes in this ratio have always coincided with market corrections of which some have been much worse than others.

Margin-Debt-SP500-010914

Bob Farrell's rule #9 basically states that when everyone agrees; something else is bound to happen.  The next two charts show the level of "bullishness" of both individual investors (AAII Survey) and professional money managers (INVI Survey).  Surprisingly, professional money managers are more exuberant than individuals.  It is interesting to note that the 8-week moving average of bullish sentiment for individuals has declined prior to the eventual peak in the market.

AAII-Bullish-Sentiment-8wk-010914

As I stated above – professional investors are just plain "giddy" about the market. 

INVI-Bullish-Sentiment-SP500-010914

Lastly, an important chart I have shown previously, the deviation of the S&P 500 and the Wilshire 5000 from their respective 36-month moving average is at levels that have only been seen at four other periods previously. 

S&P-500-Wilshire-Dev-36M-010914

As a money manager, I am currently long the stock market.  I must be or I potentially suffer career risk.  However, my job as an advisor is not only to make money for my clients, but also to preserve their gains, and investment capital, as much as possible.  Understanding the bullish arguments is surely important but the risk to investors is not a continued rise but the eventual reversion that will occur.  Unfortunately, since most individuals only consider the "bull case," as it creates confirmation bias for their "greed" emotion, they never see the "train coming."

Hopefully, these charts will give you some food for thought.  Remember, every professional poker player knows how to spot a "pigeon at the table."  Make sure it isn't you.

Why do I keep humming "Come'on Take The Money And Run."


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/2A7xhdeQxyE/story01.htm Tyler Durden