Monday, January 12, 2015

Tuesday January 13 Housing and Economic stories


Congress should raise gas tax: Sen. Corker - (www.cnbc.com) It's time for Congress to hike the federal gas tax and actually solve a fiscal problem instead of "kicking the can down the road," Sen. Bob Corker, R-Tenn., told CNBC on Monday. The tax, or user fee, funds infrastructure repairs and improvements and hasn't been raised since 1993. Instead, Congress has been dipping into the general treasury to keep the dwindling Highway Trust Fund solvent. "What Congress has done five times since 2008 is literally generational theft, just stealing from future generations out of the general funds to pay for infrastructure because Congress is going to fund infrastructure but not in the appropriate way," Corker said in an interview with "Closing Bell." Corker, along with Sen. Chris Murphy, D-Conn., have proposed a gas tax increase of 6 cents a gallon each year for two years, ultimately raising it by 12 cents. It is currently 18.4 cents per gallon, and the diesel tax is 24.4 cents per gallon. The existing highway legislation expires in May, and Corker said there is a $100 billion shortfall in the fund over the next 10 years. He said his proposal would solve the problem for the "long, long term."

Margin debt: A ticking time bomb for stocks? – (www.nbcnews.com) The last six years for the U.S. stock market have been an indomitable buying orgy fueled by the Federal Reserve's zero interest rate policy, causing the S&P 500 to triple in value. One metric says it may have gone too far. Borrowing to buy stocks, as measured by the NYSE monthly margin debt figures, ended 2014 at its highest level relative to the size of the U.S. economy since 1929. In absolute terms, it's the highest ever. "If this doesn't count, then we might as well throw away everything we've ever learned about risk because there is none," said Alan Newman, who sent this data to customers of his Crosscurrents newsletter last week. "The manias of 2000 and 2007 now both look like small potatoes by comparison. This is total insanity." As noted on Newman's in chart, buying stocks on margin peaked in 2007 before the popping of the housing market bubble, as well as in March 2000, exactly when the Nasdaq Composite's frenzied tech boost ended, causing share prices to be cut in half.  While too often ignored by the masses, this indicator has a storied history among long-time market data crunchers. It was, after all, buying stocks on margin that was the single cause of the infamous crash of 1929. But like any single indicator, its track record isn't perfect. Elevated buying on margin can go on for long period of times before it has consequences, history shows. And stock borrowing itself is not a bad thing. In fact, signs of a pickup can mark the start of a healthy bull market. And some of this elevated borrowing can be due to risk arbitrage related to M&A.

Euro drops to lowest level in almost 9 years on ECB-easing talk - (www.marketwatch.com) The euro stabilized Monday during North American morning trade after falling to its lowest level in nine years despite a weak reading on German inflation for December, as investors bought euros to lock in profits. The final German consumer price index reading for 2014 showed that prices remained flat month over month, missing a consensus estimate of 0.1% growth from economists polled by The Wall Street Journal. John Doyle, a foreign-exchange trader and director of markets at Tempus, Inc., attributed the pause in the euro’s downward trajectory to profit-taking, and said he expects it to be temporary. “Overall the dollar is still very strong, but once we got below $1.19, that was an important technical level, and there’s going to be some profit-taking when there’s a big move like that,” Doyle said. “We’re going to see these moments of pullback as orders get triggered at big levels like [euro at] $1.20 and $1.19.” The selling in the euro was triggered by analyst expectations that ECB President Mario Draghi will soon begin large-scale purchases of government bonds, a policy known as quantitative easing, which could add around €1 trillion to the central bank’s approximately €2 trillion-balance sheet. This will increase the amount of euros in circulation, lowering their value. The ECB’s next monetary policy meeting is Jan. 22.

Ex-CBS reporter sues feds over hacking - (money.cnn.com) Former CBS News investigative correspondent Sharyl Attkisson is suing the U.S. Department of Justice and the Postal Service for the alleged "unauthorized and illegal surveillance" of her laptops and telephones between 2011 and 2013. The lawsuit, filed last week in a Washington, D.C., court, names Attorney General Eric Holder and Postmaster General Patrick Donahoe as defendants. Many of the incidents described in the suit were covered in Attkisson's 2014 book, "Stonewalled," which chronicles the electronic intrusions and the repeated push-back she says she drew from the Obama administration. But the filing marks her most explicit accusation yet that government agencies were involved in the intrusions. Attkisson has previously hinted at that possibility. In her book, she wrote, "Can you really turn to the Justice Department's FBI when the Justice Department might be part of the plot?" Attkisson left CBS News in early 2014, claiming that her bosses had stifled her reporting on stories that were unkind to the Obama administration.

Government ‘Takes Custody’ Of Teen Girl, Forces Her To Go Through Chemotherapy - (www.infowars.com) A 17 year old girl in Hartford, Connecticut was forced to have chemotherapy against her will and was taken away from her parents by government agents after they supported her decision to pursue natural remedies to treat her cancer diagnosis. Hodgkin’s Lymphoma sufferer Cassandra Fortin refused to undergo chemotherapy treatment for the disease, and her family respected her decision. This prompted doctors at the Connecticut Children’s Medical Center to report the case to the Connecticut Department of Children and Families, alleging that the parents were neglecting their daughter’s medical needs. According to Cassandra’s mother, the pressure from the government agents caused her daughter to flee home for fear that she would be made to undergo the treatment, which involves flooding the body with chemical substances, including big pharma developed anti-cancer drugs, in order to kill rapidly dividing cells. “CCMC reported to DCF that I was not giving medical attention to my daughter,” Cassandra’s mother, Jackie Forton told local reporters, adding that “She has always—even years ago—said that if she was diagnosed with cancer, she would not put poison into her body,” The government agents reportedly tracked and apprehended Cassandra, then handing her over to doctors. The family claims that their daughter attempted to fight off the doctors, who literally strapped her down to a table and forced the treatment on her.





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