THESIS 2011: Beggar-Thy Neighbor -(Open Access- 37 Pages of 217)

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DECEMBER 2011: MONTHLY MARKET COMMENTARY -(Subscription Plan II - 24 Pages)

The European financial markets in the six weeks since the last EU Summit, have had a complete, unofficial and unreported implosion in the bond and credit markets .

1. Wholesale Lending is now completely frozen,
2. Sovereign yields have reached unfundable levels as even sovereign yield curves have inverted,
3. Collateral Contagion is running rampant,
4. Banks runs are quietly occurring,
5. Shadow Banking Dis-intermediation is under distress,
6. The Euro-Yen Carry trade unwinding is rapidly accelerating,
7. The Shadow banking system is seizing up,
8. European banks have nearly stopped lending, sopped interbank lending, have been repatriating funds globally and are now increasingly depositing funds at central banks for safe keeping.
9. The Credit rating have placed 15 EU sovereign countries on negative credit watch includes EU Core countries.
10. The EFSF yields have soared and foreign funding sources dried up

The current agenda of the upcoming EU Summit does nothing to fundamentally address the underlying causes. MORE>>

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The World Economic Forum's 2012 Risks Report, the IMF's Global Financial Stability Report and our proprietary Aggregated Global Risk Level Index (AGRLI) all suggest global macroeconomic risks are increasing. The consensus findings are that the center of gravity of Global Macro issues are a combination of Chronic Fiscal Imbalances and a Global Governance Failure.    MORE>> EXPANDED COVERAGE INCLUDING AUDIO & MONTHLY UPDATE SUMMARY

MARKET ANALYTICS & TECHNO-FUNDAMENTAL ANALYSIS

DECEMBER 2011: MARKET ANALYTICS & TECHNICAL ANALYSIS - (Subscription Plan IV - 165 Pages)
The market action since March 2009 is a bear market counter rally that has completed a classic ending diagonal pattern. The Bear Market which started in 2000 will resume in full force when the current "ROUNDED TOP" is completed. We presently are in the midst of of a "ROLLING TOP" across all Global Markets. We are seeing broad based weakening analytics and cascading warning signals. This behavior is typically seen during major tops.  This is all part of a final topping formation and a long term right shoulder technical construction pattern.

MORE>> EXPANDED COVERAGE INCLUDING AUDIO & EXECUTIVE BRIEF

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>> LONGWave >> GOLD & SILVER: CRISIS or OPPORTUNITY?? December 15th, 2011

>> LONGWave >> VOLUME & VOLATILITY December 12th, 2011

>> LONGWave >> BEWARE OF EURO WEAKNESS October 25th, 2011

>> Under The Lens >> US ECONOMIC UPDATE October 22nd, 2011

>> Under The Lens >> EU FRENCH-GERMAN DISAGREEMENT October 21st, 2011

EURO EXPERIMENT :  ECB's LTRO Won't Stop Collateral Contagion! Released December 27th, 2011
I would argue that the problem short term is a shortage of real collateral and that US dollar cash, versus 'encumbered' cash flow, is now king. It is clear that the rampant advancing Collateral Contagion will quickly eat the futile LTRO attempt like ravenous wolves. A well circulated Tweet from PIMCO bond king Bill Gross said it all: " What does LTRO stand for? 1- A shell game; 2-Cash for trash; 3 Three-card Monti; or 4. All of the above." Here is the stark reality of what forced the ECB to offer unprecedented three year loans at absurd rates and most alarmingly, the acceptance of collateral that no other financial institutions will accept. The ECB has sacrificed its balance sheet in yet another EU "kick at the can". MORE>>

CURRENCY WARS:  EU: A FLAWED FOUNDATION, BUT A BRILLIANT STRATEGY Released May 31st, 2011
It was the perception of getting something of value without any meaningful sacrifice that initially fostered the EU Monetary Union. Though the countries of Europe were fiercely nationalistic they were willing to surrender minor sovereign powers  only if it was going to prove advantageous to them.  They were certainly  unwilling to relinquish sufficient sovereignty to create the requisite political union required for its success. After a decade long trial period it is now time to pay the price for Monetary Union.  I suspect that the EU membership is unwilling to do so. Though they likely will see the price as too high to do so, the price to not do so has become even greater.  They have unwittingly been trapped by a well crafted strategy. MORE>>

CURRENCY WARS:  The Economic Death Spiral Has Been Triggered Released May 27th, 2011
For nearly 30 years we have had two Global Strategies working in a symbiotic fashion that has created a virtuous economic growth spiral. Unfortunately, the economic underpinnings were flawed and as a consequence, the virtuous cycle has ended.  It is now in the process of reversing and becoming a vicious downward economic spiral. One of the strategies is the Asian Mercantile Strategy.  The other is the US Dollar Reserve Currency Strategy. These two strategies have worked in harmony because they fed off each other, each reinforcing the other. However, today the realities of debt saturation have brought the virtuous spiral to an end. MORE>>

CURRENCY WARS:  Debt Saturation & Money Illusion Released April 27th, 2011
Most of the clearly evident financial problems that surround us today stem from one cause - Debt Saturation. Most, intuitively, sense this to be a correct assessment but few can either prove it or articulate it to the less sophisticated. Let me arm you to be the "Nostradamus" amongst your friends and colleagues in explaining the problem and what the future therefore foretells. However, let me make it very clear, this will not make you popular. Smart maybe, but highly likely to make you unwanted at the social gatherings of the genteel. MORE>>

GREECE

Call for EU to control Greek budget Berlin wants eurozone to take Athens’ reins

Prepare for Greece to Leave Eurozone; German Government Calls for Greece to Cede Sovereignty Over Tax and Spending Decisions to Eurozone "Budget Commissioner"; Text of the German Demands 01/27/12 Mish

• The Silent Anschluss: Germany Formally Requests That Greece Hand Over Its Fiscal Independence 01/27/12 Zero Hedge
• Germany's new proposal will have Greeks fuming 01/28/12 BI
• Experts Are Terrified By Greece And Its Debt Problems 01/28/12 BI

FITCH EU DOWNGRADES

Fitch cuts ratings of five eurozone countries

• Fitch Downgrades 5 Euro-Zone Members 01/28/12 WSJ
• Fitch Gives Europe Not So High Five, Downgrades 5 Countries... But Not France 01/27/12 Zero Hedge

1. FITCH TAKES RATING ACTIONS ON SIX EUROZONE SOVEREIGNS
2. ITALY LT IDR CUT TO A- FROM A+ BY FITCH
3. SPAIN ST IDR DOWNGRADED TO F1 FROM F1+ BY FITCH
4. IRELAND L-T IDR AFFIRMED BY FITCH; OUTLOOK NEGATIVE
5. BELGIUM LT IDR CUT TO AA FROM AA+ BY FITCH
6. SLOVENIA LT IDR CUT TO A FROM AA- BY FITCH
7. CYPRUS LT IDR CUT TO BBB- FROM BBB BY FITCH, OUTLOOK NEGATIVE

And some sheer brilliance from Fitch: In Fitch's opinion, the eurozone crisis will only be resolved as and when there is broad economic recovery. And just as EUR shorts were starting to sweat bullets. Naturally no downgrade of France. French Fitch won't downgrade France. In other news, Fitch's Italian office is about to be sacked by an errant roving vandal tribe (or so the local Police will claim).

IRAN

Iran ready to cut Europe’s oil at once Parliament set to vote on bill on Sunday

• Iran Turns Embargo Tables: To Pass Law Halting All Crude Exports To Europe 01/27/12 Zero Hedge
• Iran threatens to act first on EU embargo 01/28/12 FT
• Strain in the strait 01/28/12 FT

Iran Set to Turn Off Oil Supply to Europe 01/27/12 Spiegel The European Union embargo on Iranian oil will only come into effect in six months, but the leadership in Tehran wants to act first

• Ahmadinejad: Iran Ready to Renew Nuclear Talks 01/27/12 BL

US to send floating commando base to Mideast The US military plans to send a large floating base for commando teams to the Middle East amid rising tensions with Iran and intensifying fighting in Yemen, The Washington Post reported Saturday.

The Pentagon is rushing a “mothership” to the Middle East to be used by commando teams as unrest in the region heightens, reports The Washington Post. The U.S. Navy is planning to refit the USS Ponce, an amphibious transport docking ship, which was about to be retired and decommissioned. The Post reports that it will now be modified into an “Afloat Forward Staging Base” and used to support mine-clearance ships, smaller patrol ships and aircraft in the Middle East.

Unofficially dubbed a “mothership,” the floating base could accommodate smaller high-speed boats and helicopters commonly used by Navy SEALs,

Navy wants commando 'mothership' in Middle East 01/27/12 Washington Post

PORTUGAL

Portugal Isn't Exactly Like Greece, But It's Pretty Close

Investors fear mounting losses in Portugal as second rescue looms 01/27/12 Ambrose Evans-Pritchard “Portugal's debt is unsustainable. That is the only possible conclusion”

Portugal's default insurance costs marched to record highs as the yield on its 10-year bond rose toward the record levels reached in July, due to concern about the implications of the Greek debt-restructuring talks. Five-year credit default swaps—derivatives that function like a default insurance contract for debt—were trading near levels Greece's CDS reached last April. The annual cost of insuring $10 million of debt issued by Portugal for five years increased by $31,000 to an average of $1.31 million, although it had declined at the start of trading. The country's borrowing costs were also higher. Its 10-year bond yielded 14.05%, moving up 0.37 percentage point from the close Tuesday, according to Tradeweb data. Yield levels in Portugal need to be viewed with caution because trade in the country's debt is limited and prices are volatile.

Portuguese borrowing costs hit record - Three-year yield jumps to 19.4% on default fears 01/25/12 FT

• Portugal slips into default territory 01/25/12 FT
• Portugal bail-out 01/25/12 FT
• Fears Mount That Portugal Will Need a Second Bailout 01/24/12 WSJ Investors, economists and politicians are increasingly concerned that Portugal will need a second bailout as fears mount that it won't be able to return to markets for financing next year.
• Portugal Reenters Bailout Radar As Traders Realize Greek "Rescue" Model Is Not Feasible Here 01/24/12 Zero Hedge
• Fears Grow for Portuguese Economy

Western Policymakers Are Doing The Exact Opposite Of What South Korea And Indonesia Did Right The Asian crisis, back then was brought on by the same things that led to the current crisis in Europe and the US (and the one I believe is coming to China):

1. Too much cheap money.
2. Too much borrowing by people who couldn’t afford it,
3. to buy non-productive assets.
4. And an insanely leveraged banking system run amuck.

Indonesia and South Korea “reset” their systems back in the late 1990s and have emerged stronger and more dynamic than ever. When everything collapsed, the policy prescriptions from the World Bank and IMF for Asia’s sick economies was to:

1. HIKE interest rates,
2. CUT government spending,
3. Further deregulate, liberalize, and open their economies to foreign investment to attract capital;
4. And let their zombie banks FAIL

Today, the same Western policymakers whose advice got Indonesia and South Korea quickly back on the rails are giving the EXACT OPPOSITE prescriptions for their own economies. They’ve CUT interest rates to near ZERO. Governments have SPENT trillions of borrowed money that they have no hope of ever repaying on ill-advised “stimulus.” They’ve BAILED OUT nearly all the brain-dead banks, keeping them on life support in a coma. Protectionist rhetoric is building up, and more onerous regulations are being ushered in. This is what Japan did after its 1980s bubble. And look at them now. They’re stuck in a time warp, and the Japanese economy remains in a funk.

CHRONIC UNEMPLOYMENT

Spanish unemployment hits almost 23%

US Q4 2011 GDP

US growth accelerates to 2.8% - Economy boosted by inventory build-up

• GDP on Recession Track; Real GDP +2.8%, Misses Estimates; Inventory Replenishment Accounts for 1.9 Percentage Points; Five-Year Treasury Yield Hits Record Low 01/27/12 Mish
• Rally momentum fades after US GDP data disappoints 01/28/12 FT

King signals need to print more money Bank governor warns of another difficult year

• UK debt tops £1tn despite fall in spending 01/25/12 FT

Germany Approves Bank Bailout Bill 01/27/12 WSJ German lawmakers approved a bill to reactivate the country's bank bailout fund SoFFin to help banks weather the current debt crisis and improve their capital base.

• Hollande Pledges to Rein In France's Banks 01/27/12 WSJ
• BBVA Chief Upbeat on Plans to Fix Bank Sector 01/27/12 WSJ

German Bunds Draw Strong Demand The Bundesbank, which conducts German federal debt auctions, sold €2.458 billion ($3.2 billion) at an average yield of 2.62%, down from 2.82% at the previous sale on Oct. 12. The German finance agency received €5.042 billion of bids on its €3 billion offer, leaving the auction strongly covered.

• 30 Year => 2.62%
• 10 Year => 1.92%

U.S. Money-Market Funds Cut Euro Zone Bank Debt Holdings

These funds, among the most conservative and largest lenders, now hold $64 billion, or 10% of their total assets—$644 billion at the end of December—in euro-zone bank debt. This is down from $230 billion, or 30%, of the $755 billion total at the end of May. That's when the worsening sovereign debt crisis first sparked funds to begin reducing their exposure to European banks. The money withdrawn from Europe ended up in debt from banks in Australia, Canada and Japan. The percentage of holdings in those countries represents more than 30% of money-market fund assets, up from 20% at the end of May.

ECB

ECB under pressure over Greek bond hit Central bank insisting on full payment for its Athens debt holdings

• Central banks urged to share Greek pain 01/25/12 FT
• Uncomfortable days for ECB 01/25/12 FT
• Eurozone lenders cling tightly to ECB life raft 01/25/12 FT

EU avoided ‘major, major credit crunch’

ECB Loan Program Has Eased Strains 01/23/12 WSJ The ECB's program of offering three-year loans to euro-zone banks at cheap interest rates has given Europe's bond market a psychological boost and driven down yields on struggling nations' debt.

GREECE

Euro Zone Spars Over Greece Germany and the IMF pressed their case at a meeting of finance ministers that Greece's private-sector creditors should agree to interest rates of less than 4%, deepening a standoff that has delayed time-sensitive talks.

• 80%+ Immediate Downside To Par For New Greek "Fresh Start" Bonds 01/24/12 Zero Hedge

Eurozone Fin Mins REJECT Greek Debt Deal BI Eurozone finance ministers have rejected a deal reached by the Greek government and its private creditors to extend maturities on Greek debt. That's according to a eurozone official. Evidently, the finance ministers are asking Greece's creditors to accept a coupon of below 4% on the new Greek bonds it will swap in exchange for existing obligations. Managing Director of the Institute of International Finance Charles Dallara told reporters earlier today that private creditors would accept a maximum haircut on current holdings of 65% to 70%. While the details of the initial deal had not been released, those terms would probably have been part of it. Demands by eurozone finance ministers for a more potent deal diminish further the likelihood that all Greece's creditors will agree to participate in the swap voluntarily. Several hedge funds have already threatened to press a legal case if they are forced to stomach the losses on a "voluntary" basis without provoking a credit event.

Greek bondholders draw line in the sand IIF negotiator ‘hopeful’ and ‘confident’ of avoiding default 01/23/12 FT

• Hours Ahead Of Monday's Euro FinMin Meeting There Is No Greek Deal; IIF "Remains Hopeful" 01/22/12 Zero Hedge
• IMF should stay out of eurozone crisis 01/23/12 Wolfgang Munchau
• A deal for Greece is near Danske
• Super Mario’s bank rescue no lifesaver for a dying Greece G&M If you think Greece, sinking ever deeper into the recession hellhole, can survive, let alone thrive, with €100-billion less debt, we’ve got a deal for you on a nice little Athens bank. And we’ll throw in the subsidiary branches in Portugal and Ireland for free...

George Soros Warns Of Financial Collapse, Class Warfare And The Rise Of Evil

SYRIA

Arab League calls for Syria regime shift UN backing to be sought for unity government plan

• Syria Rejects Arab League Plan 01/23/12 WSJ Syria rejected a new Arab League plan aiming to end the country's 10-month crisis by calling on the government and the opposition to form a national unity government within two months.

IRAN

Storm warning in the strait Worry is Tehran will act to provoke a conflict in wake of sanctions

• EU Sets Embargo on Iranian Oil 01/24/12 WSJ EU foreign ministers approved an oil embargo on Iran, moving past an internal debate on the economic burden on some members.
• U.S. Sanctions Iran's 3rd Largest Bank - Bank Tejarat 01/24/12 WSJThe U.S. Treasury Department's action on Monday follows President Barack Obama's move last month to ban any American dealings with Iran's central bank, and an agreement by the European Union earlier Monday to ban all purchases of Iranian oil. Bank Tejarat is the 23rd Iranian-linked financial institution to be blacklisted by the U.S. since 2006. The list includes all of Iran's largest state-owned banks. Treasury officials said they sanctioned Bank Tejarat for its alleged role in financing Iran's nuclear program and for assisting other designated Iranian banks and companies in evading international sanctions.
• U.S. Pressures Africa to Squeeze Iran 01/24/12 WSJ

STATE OF THE UNION

Text Highlights

New Policy Proposals

Mortgage Refinancing Plan

Obama: High-Earners Should Pay 30% of Income as Tax 01/25/12 BL “It’s time to apply the same rules from top to bottom: No bailouts, no handouts, and no copouts. An America built to last insists on responsibility from everybody.” -- “So if you’re a big bank or financial institution, you are no longer allowed to make risky bets with your customers’ deposits. You’re required to write out a “living will” that details exactly how you’ll pay the bills if you fail – because the rest of us aren’t bailing you out ever again.” -- “...anyone who tells you that America is in decline or that our influence has waned, doesn’t know what they’re talking about.”

• Obama puts tax at heart of election 01/25/12 FT
• Obama Makes Populist Pitch in Speech 01/25/12 WSJ
• Economic Programs Are Outlined 01/25/12 WSJ The president offered Americans a populist economic vision in the State of the Union address, seeking to draw a contrast with his eventual GOP rival.

Public Pensions Increase Private-Equity Investments

Pension-fund officials say they increasingly are turning to private equity in an effort to hit annual return targets of 8%. Over both the past five years and the past 10 years, private-equity returns were more than double those of the S&P 500 stock index and the Dow Jones Industrial Average, according to Cambridge Associates LLC, which tracks over 4,500 private-equity firms.

As of September 2011, median private-equity returns for large public pension funds over the past five years was 6.6%, according to Wilshire Associates. Median stock-market returns for those funds were a negative 0.9% over that same five-year period. Today, pension-fund managers "would say you may be breaching your fiduciary duty if you avoid this asset class," said Bill Kelly, a lawyer at Nixon Peabody who has worked with pensions and private-equity firms for 30 years.

Pension funds are experimenting with new ways to team up with private-equity firms, such as publishing joint research and investing directly in companies alongside private-equity partners. In November, the $100 billion Teacher Retirement System of Texas made one of the largest single private-equity investment ever—a $6 billion commitment to new partnerships with Apollo Global Management and KKR & Co. The pension fund and the two New York firms will swap strategies and share resources.

United Welfare States of America: In 2011 Nearly Half The Population Received Some Form Of Government Benefit in 2011 nearly half of the population lived in a household that receives some form of government benefit, which in turn accounted for 65% of total federal spending, or $2.5 trillion, and amount to 15% of GDP. Something tells us that there will be a peculiar overlap between this 50% and the 50% of Americans that pay zero taxes.

FOMC MEETING

Federal Reserve issues FOMC statement

“...the Committee...currently anticipates that economic conditions...are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”

FED FORECAST CHARTS

• Fed sets path for three years of low rates FOMC sets formal inflation objective at 2% 01/26/12 FT
• Fed’s 2 per cent inflation target 01/26/12 FT Alphaville
• Fed extends conditional commitment until late 2014 01/26/12 Money Supply
• Breaking Down the New Fed Forecasts 01/26/12 WSJ
• Fed Expects Low Rates Through 2014 01/26/12 WSJ Fed officials said they expect short-term interest rates to stay close to zero "at least through late 2014," longer than previously.
  • Heard: Future-Proof Forecast
  • Bull's-Eye on a Benchmark
  • How Statement Changed
  • Recap: Bernanke's Remarks

Market Now Pricing In $770 Billion Increase In Fed Balance Sheet

Stephen Roach Explains How The Fed Is Pulling The Wool Over Our Eyes "Bernanke is betting the ranch on open-ended QE and zero interest rates and it worries me" is how Stephen Roach of Morgan Stanley starts this must-see reality-check interview with Bloomberg TV's Tom Keene. The reason for his concern is simple, the current Fed modus operandi is a framework for rescuing economies in crisis but does little to sustain economic recovery. Roach agrees with Cal's Eichengreen that the European and US central banks are indeed in a policy trap, committed to a path of action that has to be perpetually ante'd up to maintain the dream. With Europe in recession already in his view, Roach does not expect the tough structural action until we see greater social unrest or overwhelming unemployment and reminds us of how close we got when Greece threatened the referendum in the late summer. He goes on to discuss China (positive on their efforts and 'solid strategy') and it's relative success as a regime which he contrasts with our "central bankers who pull the wool over our eyes with ZIRP and magical QE". Taking on the mistakes of Greenspan, letting capitalism go unchecked, and his incredulity at the 'glide-path' charts we were treated to yesterday by the Fed's bankers ('accountability'), Roach sees the painful process of deleveraging from excess debt, insufficient savings, and over-consumption as likely to take a long time as we should not assume investment will be the driver as Obama goes 'protectionist' (in the SOTU) on our 3rd largest export partner - yes, China.

Biderman Explains The Bullish Market Ponzi All markets trade their way to Perdition" is how TrimTabs' CEO Charles Biderman concludes a rather clear and factually full exposition of the reason we have gone up and the reality of why a drop is inevitable. Between the outsize number of investment vehicles relative to investable assets, the trend bias that every wealth manager seems stuck with that we will grow our way out of this mess (which Biderman suggests means a long-term rate of 5-10% GDP growth for the US - which seems obviously beyond our reach). He takes on the irony of the Wall Street vs Main Street arguments and warns of the inevitable plunge in the stock market (further believing that the winner of the next election is irrelevant given the cash vs special needs imbalance that exists). The US economy, if marked to market, is broke. Take home pay for all taxpayers is now only $6.2tn, down from $7tn at its peak in 07, and additionally we have created $5tn of new debt since the start of QE1 and owe a PV of $50tn in 'unfunded' liabilities leaving the future looking quite grim in his view. Perdition indeed appears to be looming given the Fed's far from sanguine view of reality.

Dow Highest Since May 2008? Maybe Not? If it were not for CAT, HD, MCD, and IBM things would look a lot different The headlines are crowing of the magnificent CAT earnings (channel stuffing?) which in turn is helping the Dow reach its highest point since May 2008 (CAT is responsible for 27 of the Dow's 30 point gain today alone). This must be the signal that we-the-consuming-people need to borrow-and-spend again right? Well, no. Unfortunately, as many already know, the process of indexing is implicitly flawed in many ways - most importantly survivorship bias.

If we compare the performance of the components of the Dow at the start of 2008 to the actual Dow index performance, there is a very significant divergence of around 7% (or around 900 points). This is actually understating the difference (as it is an average) as we note that 5 of the 30 names from 2008 have lost more than 70% of their value (GM, AIG, C, BAC, and AA) since January 2008 (averaging -88% among those).

Three names have risen by more than 70% (MCD, HD, and IBM - thank you Warren) as 18 of the 2008 Dow 30 names are lower (on average -36.5%) with the remaining 12 Dow 2008 names up on average 33%. What is worse is the realization of the dramatic loss in real purchasing power as Gold has risen by more than 100% since the start of January 2008 as the Fed continues to realize it can abuse the lemming-like focus on nominal returns.

Complacency Risk Is High 01/24/12

The media and analyst community were convinced early on in 2007, even though we did protest heavily, that the economy would experience a "Goldilocks scenario" and the economy would "muddle through." As the market declined, and one indication after another showed that the coming crisis would be far worse than people imagined, investors remained complacent until the "Oh $#@!" moment occurred. Unfortunately, by that time it was far too late. The same thing occurred in 2009 as the Fed intervened with quantitative easing and then again in 2010 with Q.E. 2. Each time, as the volatility index retraced back to levels of complacency, the seeds were sown for the next "Oh $#@!" moment.

• "Most measures of market sentiment are back to where they were last May just when the S&P 500 was peaking.
• Short interest has dried up to three year lows.
• The VIX closed the week below 20 for the first time since last July.
• As Mike Santoli points out in Barron's, volume in leveraged ETF's versus bearish ones has risen to levels that in the past touched off interim market pullbacks.
• Credit market indicators have lagged well behind the improvement in equity performance.
• The S&P 500 is three standard deviation points above its 20-day moving average.
• Again, as Barron's points out, the ratio of the 15-day volume puts on the S&P 100 Index to bullish call volume hit 2-to-1 last week - this happened in the February 2007, February 2011 and April 2011."

Volume Crashes As Stocks End Unchanged 01/24/12 Zero Hedge Amid the lowest NYSE volume of the year (-24% from Friday - OPEX) and pretty much the lowest non-holiday-period volume in 9 years based on Bloomberg's NYSEVOL data, ES (the e-mini S&P 500 futures contract) ended the day almost perfectly unchanged underperforming 5Y investment grade and high-yield credit indices on the day as both moved to contract tights (their best levels since early August last year) even as their curves flattened. With a third of the quarter already done, this is shaping up to be an even worse quarter for banks that Q4. With trading volumes so far this year 18% lower than the Q4 (ex-Xmas), we can only assume that what they lose in volume they make up for in margin so expect your bid-offer spreads to widen (viciously exaggerating the decline in trading volume we suspect). The chart above shows the mind-blowingly bad NYSE stock volume appears to be the lowest non-holiday period trading volume we have seen in 9 years

Notorious Market Timer Joe Granville Predicts A 50% Plunge

• Gavyn Davies Equities can outperform bonds in liquidity trap

Crony Capitalism and the Entitled Class of Wall Street Financiers; Bill Moyers Interviews David Stockman, Ronald Reagan's Budget Directo

Even as the economy has sluggishly improved, far too many consumers remain dependent on government assistance to make ends meet.

• More than seven million people are living on unemployment benefit insurance.
• Food stamps usage has increased 43 percent since 2009, with a near 19 percent increase from 2010 to October 2011.
• As of October, 46.2 million Americans were in the supplemental nutrition assistance program, which is nearly 15 percent of the total U.S. population of 311 million in late 2011.