Market Clues

The stock market soared on Tuesday as a combination of bargain prices attracted buyers and news of an accounting rule change that would eliminate much of the panic caused shorts to cover.

The accounting rule in question is called "mark to market", which makes sense when there is a rational market. But, when trillions of dollars' worth of mortgage securities are being marked to an insane market, it makes no sense at all. Banks are being forced to raise capital to cover almost total losses in securities which, when held to maturity, would likely take only a small "haircut". This was, in fact, the basis for the bailout proponents' claim that the taxpayer would likely make a profit buying distressed securities---the market was pricing them at "fire sale" prices and not the value they would have when held to maturity. If it's such a good idea to eliminate the fire sale pricing of securities, and a simple accounting rule change would allow it, why should the taxpayer be forced to assume the long term risk from the firm which made the bet? And, if the firm which made the bet made a really bad bet, why shouldn't they simply be allowed to go under?

Bankruptcy, not bailout, is the right answer is the title of a commentary on CNN by Jeffrey A. Miron, senior lecturer in economics at Harvard University. He explains exactly why the bailout is a very bad idea and outlines a viable alternative:

The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of businesses that remain profitable.

In contrast, a bailout transfers enormous wealth from taxpayers to those who knowingly engaged in risky subprime lending. Thus, the bailout encourages companies to take large, imprudent risks and count on getting bailed out by government. This "moral hazard" generates enormous distortions in an economy's allocation of its financial resources.

One more point on projected costs of the bailout: Merrill Lynch's David Rosenberg explains that "Policymakers [are] still underestimating the size of the problem":

Tack on our view that the unemployment rate looks set to rise above 7%, the output gap to 4%; credit spreads at elevated levels, together with our expectation of continued house price deflation, and our estimate of the expected total losses going forward are close to $1.5 trillion or double the size of the TARP. So, the one problem we have with the TARP as it stands is the size---$700 billion. This tells us that even Bernanke and Paulson, who have been pounding the table to get this plan TARP legislated, continue to underestimate the total size of the problem. So, when you think about it, this entire credit collapse of the past 13 months has reflected one thing and one thing only, which is the unwinding of the greatest asset bubble in modern US history---residential real estate.

If $700 Billion isn't enough to prevent "Armageddon", how much will it take? Maybe in a rush to "rescue" the banks, Paulson and Bernanke may have overlooked some seemingly obvious alternatives, perhaps?

The solution is simple:

1. Fire Paulson. He's clearly a tool of the banks.
2. Force the banks into bankruptcy and let the bondholders bail them out.

The market soared Tuesday, recouping much of the ground lost Monday:

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	+4.68%	+485.21
DIAMONDS TRUST SER 1 (DIA)	+2.68%	+277.80
Ultra Dow30 ProShares (DDM)	+5.69%	+589.41
UltraShort Dow30 ProShares (DXD)	-7.47%	-774.68
S&P 500 (index)	+5.24%	+543.48
S& P DEP RECEIPTS (SPY)	+4.33%	+448.57
Ultra S&P500 ProShares (SSO)	+6.06%	+628.21
UltraShort S&P500 ProShares (SDS)	-8.07%	-836.01
NYSE Composite (index)	+4.57%	+473.25
ISHARES NYSE CMP IDX (NYC)	+2.16%	+223.39
S&P SmallCap 600 (index)	+2.56%	+265.87
Ultra SmallCap 600 ProShares (SAA)	+7.22%	+748.48
Short SmallCap 600 ProShares (SBB)	-4.22%	-437.50
UltraShort SmallCap 600 ProShares (SDD)	-5.20%	-538.64
Russell 2000 (index)	+3.33%	+344.66
ISHARE RUS 2000 INDX (IWM)	+4.53%	+470.07
Ultra Russell 2000 ProShares (UWM)	+7.79%	+807.47
UltraShort Russell 2000 ProShares (TWM)	-9.32%	-966.08
NASDAQ-100 (index)	+6.27%	+649.58
NASDAQ 100 TR SER I (QQQQ)	+2.88%	+298.74
Ultra QQQ ProShares (QLD)	+9.01%	+934.41
UltraShort QQQ ProShares (QID)	-11.35%	-1176.25
S&P MidCap 400 (index)	+4.16%	+431.71
ISHARE SP MC 400 INX (IJH)	+2.81%	+291.61
Ultra MC400 ProShares (MVV)	+7.32%	+759.22
UltraShort MC400 ProShares (MZZ)	-8.06%	-835.17
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	-0.90%	-92.98
Amex Gold (index)	-1.85%	-191.35
MKT VECT GOLD MNRS (GDX)	-0.90%	-93.44
STREETTRACKS GOLD TR (GLD)	-5.02%	-520.76
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	+12.88%	+1334.59
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	-8.78%	-909.85
Semiconductor Sector (index)	+4.63%	+479.91
Ultra Semiconductors ProShares (USD)	+6.73%	+697.71
UltraShort Semiconductors ProShares (SSG)	-8.54%	-885.58
ISHARE DJ FIN SC INX (IYF)	+5.81%	+601.74
ISHARES LEHMAN 20 YR (TLT)	-2.44%	-252.61
ISHARESLEHMAN 7-10YR (IEF)	-1.32%	-136.83
ISHARES LEH AGG FD (AGG)	+0.34%	+34.81
ISHARES GS $ INVEST (LQD)	+9.77%	+1012.47
ISHARES LEHMAN 1-3YR (SHY)	-0.39%	-40.78
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	+2.71%	+280.54
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	+3.99%	+414.06
Short QQQ ProShares (PSQ)	-4.75%	-491.96
Short Dow30 ProShares (DOG)	-3.77%	-390.96
Short S&P500 ProShares (SH)	-2.61%	-270.82
Short MC400 ProShares (MYY)	-3.25%	-337.14
Short SmallCap 600 ProShares (SBB)	-4.22%	-437.50
Short Russell 2000 ProShares (RWM)	-4.13%	-428.19
UltraShort QQQ ProShares (QID)	-11.35%	-1176.25
UltraShort Dow30 ProShares (DXD)	-7.47%	-774.68
UltraShort S&P500 ProShares (SDS)	-8.07%	-836.01
UltraShort MC400 ProShares (MZZ)	-8.06%	-835.17
UltraShort SmallCap 600 ProShares (SDD)	-5.20%	-538.64
UltraShort Russell 2000 ProShares (TWM)	-9.32%	-966.08
UltraShort Russell 1000 Value ProShares (SJF)	-9.46%	-980.45
UltraShort Russell 1000 Growth ProShares (SFK)	-6.05%	-627.52
UltraShort Russell MidCap Value ProShares (SJL)	-1.76%	-182.29
UltraShort Russell MidCap Growth ProShares (SDK)	-7.79%	-807.45
UltraShort Russell 2000 Value ProShares (SJH)	-8.17%	-846.88
UltraShort Russell 2000 Growth ProShares (SKK)	-5.01%	-519.57
UltraShort Basic Materials ProShares (SMN)	-2.57%	-266.51
UltraShort Consumer Goods ProShares (SZK)	-4.57%	-473.97
UltraShort Consumer Services ProShares (SCC)	-4.18%	-433.37
UltraShort Financials ProShares (SKF)	-12.46%	-1291.52
UltraShort Health Care ProShares (RXD)	-2.28%	-236.60
UltraShort Industrials ProShares (SIJ)	-5.47%	-567.45
UltraShort Oil & Gas ProShares (DUG)	-7.21%	-747.64
UltraShort Real Estate ProShares (SRS)	-4.99%	-516.74
UltraShort Semiconductors ProShares (SSG)	-8.54%	-885.58
UltraShort Technology ProShares (REW)	-5.39%	-558.96
UltraShort Utilities ProShares (SDP)	-1.24%	-128.66
Short MSCI Emerging Markets ProShares (EUM)	-6.93%	-718.56
Short MSCI EAFE ProShares (EFZ)	-5.23%	-542.08
UltraShort MSCI EAFE ProShares (EFU)	-11.11%	-1151.72
UltraShort MSCI Emerging Markets ProShares (EEV)	-16.34%	-1694.00
UltraShort MSCI Japan ProShares (EWV)	-6.08%	-629.88
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	-19.08%	-1977.34
Ultra QQQ ProShares (QLD)	+9.01%	+934.41
Ultra Dow30 ProShares (DDM)	+5.69%	+589.41
Ultra S&P500 ProShares (SSO)	+6.06%	+628.21
Ultra MC400 ProShares (MVV)	+7.32%	+759.22
Ultra SmallCap 600 ProShares (SAA)	+7.22%	+748.48
Ultra Russell 2000 ProShares (UWM)	+7.79%	+807.47
Ultra Russell 1000 Value ProShares (UVG)	+6.82%	+706.74
Ultra Russell 1000 Growth ProShares (UKF)	+5.44%	+564.12
Ultra Russell MidCap Value ProShares (UVU)	+1.39%	+144.52
Ultra Russell MidCap Growth ProShares (UKW)	+5.20%	+539.05
Ultra Russell 2000 Value ProShares (UVT)	+10.57%	+1096.12
Ultra Russell2000 Growth ProShares (UKK)	+6.86%	+710.95
Ultra Basic Materials ProShares (UYM)	+4.33%	+449.17
Ultra Consumer Goods ProShares (UGE)	+3.99%	+414.02
Ultra Consumer Services ProShares (UCC)	+0.86%	+89.36
Ultra Financials ProShares (UYG)	+9.06%	+938.78
Ultra Health Care ProShares (RXL)	+1.45%	+149.91
Ultra Industrials ProShares (UXI)	+5.48%	+567.60
Ultra Oil & Gas ProShares (DIG)	+7.33%	+759.54
Ultra Real Estate ProShares (URE)	+7.33%	+760.13
Ultra Semiconductors ProShares (USD)	+6.73%	+697.71
Ultra Technology ProShares (ROM)	+3.78%	+391.86
Ultra Utilities ProShares (UPW)	+2.03%	+210.39
Other ETFs
PowerShares NASDAQ-100 BuyWrite Portfolio (PQBW)	+0.98%	+101.13
NASDAQ Internet Portfolio (PNQI)	+4.78%	+495.51
PowerShares DB Base Metals Double Short (BOM)	-1.06%	-110.11
PowerShares DB Base Metals Double Long (BDD)	-0.73%	-75.71
PowerShares DB Base Metals Short (BOS)	-0.94%	-97.56
PowerShares DB Base Metals Long (BDG)	+1.67%	+173.61
PowerShares DB Crude Oil Double Short (DTO)	-8.38%	-868.46
PowerShares DB Crude Oil Short (SZO)	-4.61%	-478.08
PowerShares DB Crude Oil Double Long (DXO)	+12.49%	+1294.62
PowerShares DB Crude Oil Long (OLO)	-0.83%	-86.00

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posted by Bob Carver  # 10:21 PM

Congress refused to be railroaded by the Democrats (and a few Republicans) into bailing out the banks on Monday and voted down the plan. Enough representatives saw through this transparent money grab by the banks and refused to roll over and be "good Germans" for the plutocracy. Now, if the plutocrats want their money, they'll have to up the ante to the holdouts, for surely those who vote for the bailout will not be returned to office next year. You are already seeing the plutocrats directing the journalists to sway public opinion. Journalists are basically as ignorant of markets as politicians are. When someone puts a script before them, they will gladly read it. One of the real positives of this whole exercise has been to smoke out the plutocrats and their minions in Congress and the press. Barney Frank is the most visible plutocratic agent, but there are certainly many of these agents both inside and outside Washington.

We watched an ABC (American Broadcasting Company--controlled by Disney) network newscast for the first time in a very long time this evening and it was an eye-opening experience in totally-biased reporting which favored the banks. It even included an animated clip purporting to demonstrate how bankers drive the economy. It, of course, completely ignored the key problem in banking---the fractional reserve system, which is the source of the current plight of banks requiring their bailout. This was a surreal analogy to the telephone company animation sequence in The President's Analyst. Life is definitely imitating art, presenting a propaganda cartoon within a news report. It's amazing that the news media has gone so completely over to the dark side that they now present a one-sided (and sometimes completely false) view of the situation. The American people deserve a lot better from the media mouthpieces. But, then, if the American people are so stupid as to believe what the vile journalists report, they deserve everything they get.

The plan itself was very weak intrinsically, addressing only the symptoms of the credit market seizeup (banks' balance sheets) without addressing the root causes at all: falling home prices, an economic recession moving toward its one-year anniversary and a decline in homeowners' ability to pay their mortgages. While allocating $700 Billion to the banks (likely much more in the long run), there was no provision which would have forced the banks to actually start lending again, which was the ostensible goal of the bailout in the first place. The claim that the credit markets are frozen is a bald-faced admission that the banks are simply using that as a bargaining chip as they strike for higher pay. In other words, the bill was written with the typical Washington theme of, "Let's throw money at it and see if it makes the problem go away." Fortunately, there were enough clear-headed members in both parties to combine to shut down the scheme to siphon taxpayer money. Spending $700 Billion would have been only the first installment in a much larger bailout that looked to be on the order of $7 Trillion if current best estimates are accurate.

The stock market saw intense selling pressure as stocks were sold to generate cash. Some of this was from hedge funds, but there was little doubt that some of the selling was by banks, who were selling stocks to force a large market fall designed to influence Congressional holdouts. This is setting up a great buying opportunity as the old financial system is dying and a better one is emerging. As the old saying goes, you have to break a few eggs to make an omelet. Economist Nouriel Roubini said (and has already been proven correct),

What we are facing now is the beginning of the unravelling and collapse of the entire shadow financial system, a system of institutions (broker dealers, hedge funds, private equity funds, SIVs, conduits, etc.) that look like banks (as they borrow short, are highly leveraged and lend and invest long and in illiquid ways) and thus are highly vulnerable to bank-like runs; but unlike banks they are not properly regulated and supervised, they don't have access to deposit insurance and don't have access to the lender of last resort support of the central bank.

The step by step, ad hoc and non-holistic approach of Fed and Treasury to crisis management has been a failure. . . . [P]lugging and filling one hole at [a] time is useless when the entire system of levies is collapsing in the perfect financial storm of the century. A much more radical, holistic and systemic approach to crisis management is now necessary.

We may soon hear that the credit market is frozen, that there is no money to keep homeowners in their homes, workers gainfully employed, or infrastructure maintained. But this is not true. The underlying source of all money is government credit---our own public credit. We don't need to borrow it from the Chinese or the Saudis or private banks. The government can issue its own credit---the full faith and credit of the United States. That was the model followed by the Pennsylvania colonists in the eighteenth century, and it worked brilliantly well. Before the provincial government came up with this plan, the Pennsylvania economy was languishing. There was little gold to conduct trade, and the British bankers were charging 8% interest to borrow what was available. The government solved the credit problem by issuing and lending its own paper scrip. A publicly-owned bank lent the money to farmers at 5% interest. The money was returned to the government, preventing inflation; and the interest paid the government's expenses, replacing taxes. During the period the system was in place, the economy flourished, prices remained stable, and the Pennsylvania colonists paid no taxes at all. (For more on this, see E. Brown, Sustainable Energy Development: How Costs Can Be Cut in Half, webofdebt.com/articles, November 5, 2007.)

In Ms. Brown's latest article, THANKS BUT NO THANKS: WHAT LINCOLN WOULD HAVE SAID TO PAULSON'S $700 BILLION RANSOM, she points out:

Abraham Lincoln was faced with a similar situation when he stepped into the Presidency in 1861. The country was suddenly in a civil war, and there was insufficient money to fund it. The British bankers, knowing they had him over a barrel, agreed to lend him money only at 24 to 36% interest, highly usurious rates that would have bankrupted the North. Our fearless forefather said, "Thanks but no thanks, I'll print my own." Issuing the national currency is the sovereign right of governments. A government does not need to borrow its national currency from bankers "merely pretending to have money." That was the phrase used by Thomas Jefferson when he realized the bankers' fractional reserve lending scheme meant that they were lending the same reserves many times over.

The problem today is that the plutocratic money interests are entrenched in the current banking system. They are fighting tooth and nail to keep themselves in power. But, these dinosaurs are sinking in a La Brea tarpit of death, trying to use the American taxpayer to pull themselves out of this pit of doom. They may win this round, but, having exposed themselves to the public in their final death throes, are well on their way to permanent oblivion. A new system will emerge and our society will flourish again without the immense weight of unproductive bankers.

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	-6.98%	-777.68
DIAMONDS TRUST SER 1 (DIA)	-5.46%	-608.72
Ultra Dow30 ProShares (DDM)	-11.32%	-1261.38
UltraShort Dow30 ProShares (DXD)	+11.45%	+1275.48
S&P 500 (index)	-8.19%	-912.57
S& P DEP RECEIPTS (SPY)	-7.82%	-871.48
Ultra S&P500 ProShares (SSO)	-14.14%	-1575.90
UltraShort S&P500 ProShares (SDS)	+14.69%	+1637.22
NYSE Composite (index)	-8.70%	-968.99
ISHARES NYSE CMP IDX (NYC)	-6.81%	-759.34
S&P SmallCap 600 (index)	-5.85%	-651.86
Ultra SmallCap 600 ProShares (SAA)	-12.79%	-1425.54
Short SmallCap 600 ProShares (SBB)	+6.68%	+744.11
UltraShort SmallCap 600 ProShares (SDD)	+12.13%	+1351.28
Russell 2000 (index)	-6.68%	-744.20
ISHARE RUS 2000 INDX (IWM)	-7.90%	-880.34
Ultra Russell 2000 ProShares (UWM)	-14.78%	-1646.54
UltraShort Russell 2000 ProShares (TWM)	+15.65%	+1743.96
NASDAQ-100 (index)	-9.70%	-1081.14
NASDAQ 100 TR SER I (QQQQ)	-7.94%	-884.29
Ultra QQQ ProShares (QLD)	-18.88%	-2103.55
UltraShort QQQ ProShares (QID)	+19.58%	+2181.40
S&P MidCap 400 (index)	-7.31%	-814.50
ISHARE SP MC 400 INX (IJH)	-6.36%	-708.68
Ultra MC400 ProShares (MVV)	-13.70%	-1526.19
UltraShort MC400 ProShares (MZZ)	+14.37%	+1601.08
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	-5.01%	-558.30
Amex Gold (index)	-2.90%	-323.34
MKT VECT GOLD MNRS (GDX)	-3.62%	-402.88
STREETTRACKS GOLD TR (GLD)	+3.38%	+376.84
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	-8.11%	-903.29
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	+6.38%	+710.43
Semiconductor Sector (index)	-8.80%	-980.85
Ultra Semiconductors ProShares (USD)	-16.23%	-1808.17
UltraShort Semiconductors ProShares (SSG)	+18.26%	+2034.78
ISHARE DJ FIN SC INX (IYF)	-9.12%	-1016.80
ISHARES LEHMAN 20 YR (TLT)	+2.91%	+324.27
ISHARESLEHMAN 7-10YR (IEF)	+1.39%	+155.41
ISHARES LEH AGG FD (AGG)	-0.46%	-50.80
ISHARES GS $ INVEST (LQD)	-9.11%	-1015.26
ISHARES LEHMAN 1-3YR (SHY)	+0.58%	+64.12
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	-3.11%	-346.98
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	-6.15%	-685.19
Short QQQ ProShares (PSQ)	+8.94%	+996.45
Short Dow30 ProShares (DOG)	+5.80%	+646.50
Short S&P500 ProShares (SH)	+6.57%	+732.38
Short MC400 ProShares (MYY)	+7.17%	+798.98
Short SmallCap 600 ProShares (SBB)	+6.68%	+744.11
Short Russell 2000 ProShares (RWM)	+7.60%	+847.17
UltraShort QQQ ProShares (QID)	+19.58%	+2181.40
UltraShort Dow30 ProShares (DXD)	+11.45%	+1275.48
UltraShort S&P500 ProShares (SDS)	+14.69%	+1637.22
UltraShort MC400 ProShares (MZZ)	+14.37%	+1601.08
UltraShort SmallCap 600 ProShares (SDD)	+12.13%	+1351.28
UltraShort Russell 2000 ProShares (TWM)	+15.65%	+1743.96
UltraShort Russell 1000 Value ProShares (SJF)	+16.16%	+1801.27
UltraShort Russell 1000 Growth ProShares (SFK)	+13.05%	+1454.14
UltraShort Russell MidCap Value ProShares (SJL)	+14.06%	+1567.11
UltraShort Russell MidCap Growth ProShares (SDK)	+15.85%	+1765.64
UltraShort Russell 2000 Value ProShares (SJH)	+13.16%	+1466.92
UltraShort Russell 2000 Growth ProShares (SKK)	+13.08%	+1457.71
UltraShort Basic Materials ProShares (SMN)	+15.48%	+1724.62
UltraShort Consumer Goods ProShares (SZK)	+6.19%	+690.07
UltraShort Consumer Services ProShares (SCC)	+10.86%	+1210.67
UltraShort Financials ProShares (SKF)	+18.91%	+2107.45
UltraShort Health Care ProShares (RXD)	+7.14%	+795.94
UltraShort Industrials ProShares (SIJ)	+11.76%	+1310.51
UltraShort Oil & Gas ProShares (DUG)	+17.48%	+1947.86
UltraShort Real Estate ProShares (SRS)	+8.95%	+997.43
UltraShort Semiconductors ProShares (SSG)	+18.26%	+2034.78
UltraShort Technology ProShares (REW)	+16.58%	+1847.37
UltraShort Utilities ProShares (SDP)	+9.07%	+1011.12
Short MSCI Emerging Markets ProShares (EUM)	+11.24%	+1252.12
Short MSCI EAFE ProShares (EFZ)	+10.27%	+1144.73
UltraShort MSCI EAFE ProShares (EFU)	+21.36%	+2380.09
UltraShort MSCI Emerging Markets ProShares (EEV)	+21.74%	+2421.96
UltraShort MSCI Japan ProShares (EWV)	+14.49%	+1614.96
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	+29.10%	+3242.97
Ultra QQQ ProShares (QLD)	-18.88%	-2103.55
Ultra Dow30 ProShares (DDM)	-11.32%	-1261.38
Ultra S&P500 ProShares (SSO)	-14.14%	-1575.90
Ultra MC400 ProShares (MVV)	-13.70%	-1526.19
Ultra SmallCap 600 ProShares (SAA)	-12.79%	-1425.54
Ultra Russell 2000 ProShares (UWM)	-14.78%	-1646.54
Ultra Russell 1000 Value ProShares (UVG)	-14.06%	-1567.00
Ultra Russell 1000 Growth ProShares (UKF)	-13.29%	-1481.43
Ultra Russell MidCap Value ProShares (UVU)	-12.19%	-1358.42
Ultra Russell MidCap Growth ProShares (UKW)	-14.61%	-1628.21
Ultra Russell 2000 Value ProShares (UVT)	-14.10%	-1570.66
Ultra Russell2000 Growth ProShares (UKK)	-13.74%	-1531.14
Ultra Basic Materials ProShares (UYM)	-16.91%	-1884.74
Ultra Consumer Goods ProShares (UGE)	-7.90%	-880.74
Ultra Consumer Services ProShares (UCC)	-11.22%	-1250.76
Ultra Financials ProShares (UYG)	-21.33%	-2376.47
Ultra Health Care ProShares (RXL)	-6.56%	-730.83
Ultra Industrials ProShares (UXI)	-12.32%	-1373.09
Ultra Oil & Gas ProShares (DIG)	-19.22%	-2141.72
Ultra Real Estate ProShares (URE)	-9.80%	-1091.85
Ultra Semiconductors ProShares (USD)	-16.23%	-1808.17
Ultra Technology ProShares (ROM)	-14.21%	-1583.22
Ultra Utilities ProShares (UPW)	-9.97%	-1110.53
Other ETFs
NASDAQ Internet Portfolio (PNQI)	-9.19%	-1023.75
PowerShares DB Base Metals Double Short (BOM)	+9.15%	+1019.68
PowerShares DB Base Metals Double Long (BDD)	-10.51%	-1171.36
PowerShares DB Base Metals Short (BOS)	+4.20%	+468.36
PowerShares DB Base Metals Long (BDG)	-6.54%	-728.51
PowerShares DB Crude Oil Double Short (DTO)	+17.71%	+1973.39
PowerShares DB Crude Oil Short (SZO)	+7.79%	+868.02
PowerShares DB Crude Oil Double Long (DXO)	-18.81%	-2096.31
PowerShares DB Crude Oil Long (OLO)	-6.13%	-682.70

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posted by Bob Carver  # 10:12 PM

Why Are the Democrats Bailing Out the Super-Rich?

Can we assume that the plutocrats favor Democrats? It does seem that's the case. While the vast majority of Americans are aghast at this ripoff of America by the banks and have told their representatives in Congress of their feelings, it's the Democratic majority who are so much in favor of this latest welfare spending for the fat cats. They can certainly talk a great line about how they're for the downtrodden, but when it comes to dispensing money, the super-rich get the lion's share.

Here's Why Democrats, Not Republicans, Are Bailing Out the Super-Rich

When it comes right down to it, money talks and money flows to where it's treated best and that's to Democrats.

The Republicans have their problems (which we've detailed many times here), but it's the Democrats who are responsible for laying the foundation for the current financial system meltdown. And, it looks like we'll have more of the same from the next Democrat Administration.

The Republicans take the blame for irresponsibly lax governance. A capitalist system is prone to spinning completely out of control when government chooses to abdicate its necessary role of mediator between owners of capital and owners of services. Combine a factory of fireworks built by Democrats with a lighted match provided by Republicans and you soon have a very large conflagration which threatens to blow up the entire world economy.

If you don't believe the Democrats share responsibility, it's not hard to prove. Just read "Fannie Mae Eases Credit To Aid Mortgage Lending" in the September 30, 1999, edition of the New York Times (that was over a year before the Republicans came into power in 2001). Some excerpts from the article:

[Fannie Mae] will encourage ... banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.…

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

If the American people install another Democrat in the White House, they will prove just how stupid the average voter truly is. After all, they installed the current bush in the White House for the past eight years, didn't they? Hasn't he done everything the Republicans said a Democrat would do?

When a Trillion Dollars Won't Do

There are whispers now making the rounds that the trillion-dollar bailout is a gross underestimate of what's needed. From what we've been able to determine, the final bill looks to be on the order of 40 times that amount---$40 Trillion. The entire world economy is only a little larger than that.

How the Fractional Reserve System Causes Financial Catastrophe

The root cause for this mess is the fractional reserve system. Banks take in deposits, but loan out up to 40 (or more) times more money than they keep on deposit. In other words, private banks print money and loan it out. In good times, loans are repaid and all is well. Depositors keep their money on deposit at the bank. But, when the economy slows down and depositors demand their money back in bank "runs", banks run out of available cash and become insolvent, wiping out shareholders.

The government then seizes the bank's assets and sells them to a "healthy" bank, making sure depositors are paid, but only if their accounts are covered by insurance. Due to the low $100,000 limit on government insurance, many bank customers are finding that their money has been lost in recent weeks. For example, let's say a small company needs to deposit $400,000 into their bank account to meet payroll every couple of weeks. If the bank fails, they will suffer an immediate $300,000 loss. In order to avoid such a loss, many companies are pulling their deposits out of any bank in which it doesn't have complete confidence. Even a false rumor about a bank having problems may be sufficient to start a run and cause a bank failure. This is why we are seeing so many runs on banks in recent days---deposit insurance hasn't kept up with the gargantuan rate of inflation over time. For example, $100,000 today is less than $5000 in 1900 dollars even if you use the government's official inflation statistics which grossly understate the true rate of inflation.

At the heart of the problem is the fractional reserve system of banking. The first problem it causes is inflation---every dollar placed on deposit generates 40 or more dollars in circulation without any real productivity increase. One definition of inflation is "more dollars chasing fewer goods." Restated, we might say that inflation caused by the fractional reserve system is "forty dollars chasing one dollar of real goods." Now, if those forty dollars resulted in a dramatic forty-fold rise in productivity to match the increase in money, there would not be any inflation. But, in reality, productivity grows much more slowly than the number of dollars in circulation. The result is inflation.

When the economy turns down, the fractional reserve system runs in reverse. Instead of printing new money, it starts destroying money as scared depositors demand their money back. Banks are forced to call in loans and raise capital to replace money paid out to depositors. Forty dollars in fiat money is destroyed every time the bank has to pay out just one dollar to a depositor. When the bank is unable to raise new capital, it runs out of money, causing the bank to collapse. That's exactly what caused the largest bank failure in history on Thursday. And, it likely will not be the last big bank failure.

The Collapse of the World Trade Center Was Just a Preview

The solution to the problem is to destroy the current financial system, then rebuild it in a way that isn't prone to catastrophic failure. The first steps in destroying the system are well underway right now. The Federal Reserve has already spent half a trillion dollars bailing out banks and the system is still on the verge of complete collapse. The Congress is about to spend another trillion dollars to try to stop it. We are likely to see many trillions of taxpayer dollars destroyed before the system finally finishes collapsing.

The Presidential Puppet Debate

The Presidential candidates proved themselves to be mere puppets of the ruling class Friday evening as they put on a display of ignorance seldom seen even on national television.

While the Democrats in charge of writing a trillion-dollar bailout bill worked hard to complete their task and send it to their party leader in the White House (the bush), the two puppets running for President faced off in a debate Friday evening. Americans should be embarrassed that such ill-informed persons have been chosen by the ruling plutocrats to run for the highest office in the land. Their ignorance of the facts was appalling. In fact, both candidates seemed little more informed that the bush in the White House himself.

If either of these candidates ends up being President, we are in serious trouble for the next four years. And, if the subsequent winner of the Electoral College vote is unable to assume office, their seconds in line are no better and likely very much worse.

Most of the media is worthless when it comes to finding out what's really happening. But, we have to give credit where credit is due: Lou Dobbs and his team of journalists at CNN are doing an outstanding job of ferreting out key facts concerning the coming transfer of wealth to the plutocrats running the banks. On Friday they reported that both the Democrats and the Republicans in charge of writing the bailout bill have received millions of dollars in funding by the banks. It seems that the banks are spending their money well: a few million dollars slipped to the right legislators will end up transferring hundreds of billions back to them at the expense of the taxpayer. That's an excellent return on bribes paid.

Market Manipulation Last Week

The powers-that-be are doing everything in their power to levitate the stock market, but their best efforts have only been able to keep it barely above the surface of the water. It's amazing that they haven't been able to push the market back to a new high considering all the money they've spent pushing stock prices up and banning short selling. And, in fact, the majority of stocks are still in downtrends---only the major Industrials average and indices are being run up the flagpole. Perhaps with $1 Trillion to spend on the bailout, they'll buy stocks with some of the money and run the stock market to new highs.

Wall Street anticipates Christmas will come early this year and that sent money flowing into the Dow on Friday:

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	+1.10%	+121.07
DIAMONDS TRUST SER 1 (DIA)	+1.08%	+119.12
Ultra Dow30 ProShares (DDM)	+2.53%	+279.04
UltraShort Dow30 ProShares (DXD)	-2.37%	-261.49
S&P 500 (index)	+0.38%	+41.57
S& P DEP RECEIPTS (SPY)	+0.16%	+17.34
Ultra S&P500 ProShares (SSO)	+0.28%	+30.81
UltraShort S&P500 ProShares (SDS)	-0.19%	-21.44
NYSE Composite (index)	-0.47%	-52.01
ISHARES NYSE CMP IDX (NYC)	-0.32%	-35.00
S&P SmallCap 600 (index)	+0.10%	+10.93
Ultra SmallCap 600 ProShares (SAA)	-0.55%	-60.97
Short SmallCap 600 ProShares (SBB)	+0.78%	+86.18
UltraShort SmallCap 600 ProShares (SDD)	-0.54%	-59.98
Russell 2000 (index)	-0.13%	-14.84
ISHARE RUS 2000 INDX (IWM)	+0.47%	+51.74
Ultra Russell 2000 ProShares (UWM)	+0.19%	+20.68
UltraShort Russell 2000 ProShares (TWM)	-0.49%	-54.39
NASDAQ-100 (index)	-0.92%	-101.11
NASDAQ 100 TR SER I (QQQQ)	-1.01%	-111.55
Ultra QQQ ProShares (QLD)	-0.59%	-65.22
UltraShort QQQ ProShares (QID)	+0.37%	+40.86
S&P MidCap 400 (index)	-0.71%	-77.73
ISHARE SP MC 400 INX (IJH)	-0.62%	-68.50
Ultra MC400 ProShares (MVV)	-1.81%	-199.54
UltraShort MC400 ProShares (MZZ)	+1.48%	+163.41
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	-0.88%	-96.82
Amex Gold (index)	-1.88%	-207.58
MKT VECT GOLD MNRS (GDX)	-1.22%	-134.27
STREETTRACKS GOLD TR (GLD)	+0.22%	+24.22
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	-0.45%	-49.21
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	+0.05%	+5.54
Semiconductor Sector (index)	+0.54%	+59.61
Ultra Semiconductors ProShares (USD)	+2.08%	+229.49
UltraShort Semiconductors ProShares (SSG)	-1.84%	-203.17
ISHARE DJ FIN SC INX (IYF)	+2.19%	+241.75
ISHARES LEHMAN 20 YR (TLT)	+0.72%	+79.89
ISHARESLEHMAN 7-10YR (IEF)	-0.07%	-7.43
ISHARES LEH AGG FD (AGG)	-0.50%	-55.55
ISHARES GS $ INVEST (LQD)	-2.70%	-297.89
ISHARES LEHMAN 1-3YR (SHY)	0.00%	0.00
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	+0.13%	+14.80
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	-0.86%	-94.28
Short QQQ ProShares (PSQ)	+0.52%	+57.46
Short Dow30 ProShares (DOG)	-1.28%	-141.00
Short S&P500 ProShares (SH)	-0.39%	-43.45
Short MC400 ProShares (MYY)	+0.79%	+86.61
Short SmallCap 600 ProShares (SBB)	+0.78%	+86.18
Short Russell 2000 ProShares (RWM)	-0.15%	-16.41
UltraShort QQQ ProShares (QID)	+0.37%	+40.86
UltraShort Dow30 ProShares (DXD)	-2.37%	-261.49
UltraShort S&P500 ProShares (SDS)	-0.19%	-21.44
UltraShort MC400 ProShares (MZZ)	+1.48%	+163.41
UltraShort SmallCap 600 ProShares (SDD)	-0.54%	-59.98
UltraShort Russell 2000 ProShares (TWM)	-0.49%	-54.39
UltraShort Russell 1000 Value ProShares (SJF)	-1.90%	-209.06
UltraShort Russell 1000 Growth ProShares (SFK)	+0.18%	+19.58
UltraShort Russell MidCap Value ProShares (SJL)	-0.15%	-16.53
UltraShort Russell MidCap Growth ProShares (SDK)	+1.47%	+161.78
UltraShort Russell 2000 Value ProShares (SJH)	+0.39%	+42.51
UltraShort Russell 2000 Growth ProShares (SKK)	-0.11%	-11.92
UltraShort Basic Materials ProShares (SMN)	+6.48%	+714.21
UltraShort Consumer Goods ProShares (SZK)	-1.04%	-115.13
UltraShort Consumer Services ProShares (SCC)	-2.01%	-221.24
UltraShort Financials ProShares (SKF)	-4.28%	-471.36
UltraShort Health Care ProShares (RXD)	+0.04%	+4.28
UltraShort Industrials ProShares (SIJ)	+0.16%	+18.01
UltraShort Oil & Gas ProShares (DUG)	+3.01%	+331.30
UltraShort Real Estate ProShares (SRS)	-4.79%	-527.94
UltraShort Semiconductors ProShares (SSG)	-1.84%	-203.17
UltraShort Technology ProShares (REW)	-2.84%	-312.79
UltraShort Utilities ProShares (SDP)	+1.15%	+126.86
Short MSCI Emerging Markets ProShares (EUM)	+3.46%	+381.61
Short MSCI EAFE ProShares (EFZ)	+1.30%	+143.22
UltraShort MSCI EAFE ProShares (EFU)	+1.72%	+189.48
UltraShort MSCI Emerging Markets ProShares (EEV)	+6.25%	+688.34
UltraShort MSCI Japan ProShares (EWV)	+0.69%	+75.81
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	+4.92%	+542.82
Ultra QQQ ProShares (QLD)	-0.59%	-65.22
Ultra Dow30 ProShares (DDM)	+2.53%	+279.04
Ultra S&P500 ProShares (SSO)	+0.28%	+30.81
Ultra MC400 ProShares (MVV)	-1.81%	-199.54
Ultra SmallCap 600 ProShares (SAA)	-0.55%	-60.97
Ultra Russell 2000 ProShares (UWM)	+0.19%	+20.68
Ultra Russell 1000 Value ProShares (UVG)	+1.35%	+148.36
Ultra Russell 1000 Growth ProShares (UKF)	-0.02%	-2.37
Ultra Russell MidCap Value ProShares (UVU)	-1.08%	-119.28
Ultra Russell MidCap Growth ProShares (UKW)	-1.95%	-214.49
Ultra Russell 2000 Value ProShares (UVT)	-1.07%	-118.43
Ultra Russell2000 Growth ProShares (UKK)	-0.51%	-56.41
Ultra Basic Materials ProShares (UYM)	-8.19%	-902.82
Ultra Consumer Goods ProShares (UGE)	+0.87%	+95.80
Ultra Consumer Services ProShares (UCC)	+1.58%	+174.23
Ultra Financials ProShares (UYG)	+4.31%	+474.55
Ultra Health Care ProShares (RXL)	+1.02%	+112.35
Ultra Industrials ProShares (UXI)	-0.43%	-47.49
Ultra Oil & Gas ProShares (DIG)	-3.30%	-363.69
Ultra Real Estate ProShares (URE)	+6.04%	+665.62
Ultra Semiconductors ProShares (USD)	+2.08%	+229.49
Ultra Technology ProShares (ROM)	-0.79%	-86.95
Ultra Utilities ProShares (UPW)	-1.48%	-163.65
Other ETFs
NASDAQ Internet Portfolio (PNQI)	-2.46%	-271.35
PowerShares DB Base Metals Double Short (BOM)	+1.88%	+207.63
PowerShares DB Base Metals Double Long (BDD)	-2.81%	-309.25
PowerShares DB Base Metals Short (BOS)	+1.21%	+132.84
PowerShares DB Base Metals Long (BDG)	-0.73%	-80.60
PowerShares DB Crude Oil Double Short (DTO)	+0.69%	+76.50
PowerShares DB Crude Oil Short (SZO)	+1.48%	+162.92
PowerShares DB Crude Oil Double Long (DXO)	-1.06%	-116.40

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posted by Bob Carver  # 4:32 PM

. . . and the truth shall make you free.

One of the truths which emerged this week was just how incompetent and dishonest our political representatives in Washington really are.

But, there's a much more important truth which has emerged. The American people now know that they have been operating under a gross misperception for hundreds of years. If there's a positive which has come out of the events of the last couple of weeks, it's that Americans now know:

• Who our representatives in government, both Democrats and Republicans, truly represent:

  The super-rich plutocrats who own the banks and think they own the country and its people.

• Whose opinion doesn't really count:

  Everyone except the plutocrats.

• Who makes huge profits when their bets work:

  The plutocrats.

• Who loses money when their bets don't work:

  Everyone except the plutocrats.

America is owned by the plutocrats and now everyone knows it. Like Pandora's Box, it's out in the open and can't be denied or contained.

The mistake America made was in delegating the constitutional authority of government to create money to private interests---the private banking cartel. Now that the private banks have gotten themselves into trouble by imprudent lending---literally creating money backed by nothing---they are coming back to the public to demand compensation for their mistakes. And, they are threatening the fabric of the economy if they don't receive their tribute. In doing so, they have exposed the sordid truth they've carefully hidden for centuries.

The inexorable march of history will record that these are the last days of the American empire. The American people will not continue to be subjugated to the whims of the plutocrats in the future. This final, desperate act of the Empire to bail out the banks (what the media euphemistically calls "Wall Street") will be the final nail in the coffin of the plutocracy.

This is good news despite all of the frustration and worry it represents for the average American. Yes, it means that we are on the road to a brighter future. A future without the parasites (the super-rich) standing in the way of real progress toward a better life for all.

The steps toward a brighter future will not initially be easy. Rebuilding a failed system never is. But, it has to be done. As soon as the financial system finishes imploding, and it most certainly will despite the desperate transfer of almost a trillion dollars of taxpayer money to the banking cartel, we will have a unique opportunity to rebuild it to work for everyone, rather than a small minority.

It's something to keep in mind.

In the meantime, the representatives and senators who vote for the bailout package are publically identifying themselves as plutocrat-loyalists and must be defeated when they are up for re-election. Fortunately, most will be on the chopping block on November 4th.

The stock market was levitated higher Thursday by the banking cartel in order to influence the Congress to make it appear that the market supported the bailout. This is easy to do since they have the power to print money---they conducted a sustained buying campaign in stock index futures, forcing short covering in the cash market.

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	+1.82%	+196.89
DIAMONDS TRUST SER 1 (DIA)	+1.48%	+160.63
Ultra Dow30 ProShares (DDM)	+2.80%	+303.56
UltraShort Dow30 ProShares (DXD)	-2.88%	-311.36
S&P 500 (index)	+1.90%	+205.48
S& P DEP RECEIPTS (SPY)	+1.55%	+167.48
Ultra S&P500 ProShares (SSO)	+3.29%	+356.32
UltraShort S&P500 ProShares (SDS)	-3.10%	-335.88
NYSE Composite (index)	+2.05%	+221.62
ISHARES NYSE CMP IDX (NYC)	+1.49%	+160.78
S&P SmallCap 600 (index)	+1.05%	+114.04
Ultra SmallCap 600 ProShares (SAA)	+2.06%	+222.61
Short SmallCap 600 ProShares (SBB)	-1.23%	-132.87
UltraShort SmallCap 600 ProShares (SDD)	-2.26%	-244.33
Russell 2000 (index)	+1.22%	+131.87
ISHARE RUS 2000 INDX (IWM)	+0.51%	+55.72
Ultra Russell 2000 ProShares (UWM)	+0.78%	+84.16
UltraShort Russell 2000 ProShares (TWM)	-1.25%	-134.98
NASDAQ-100 (index)	+0.38%	+40.72
NASDAQ 100 TR SER I (QQQQ)	+1.59%	+172.25
Ultra QQQ ProShares (QLD)	+0.66%	+71.85
UltraShort QQQ ProShares (QID)	-0.49%	-52.55
S&P MidCap 400 (index)	+1.12%	+121.21
ISHARE SP MC 400 INX (IJH)	+0.60%	+64.80
Ultra MC400 ProShares (MVV)	+1.75%	+189.92
UltraShort MC400 ProShares (MZZ)	-1.67%	-180.36
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	+0.34%	+36.70
Amex Gold (index)	-3.04%	-329.51
MKT VECT GOLD MNRS (GDX)	-2.88%	-311.45
STREETTRACKS GOLD TR (GLD)	-0.30%	-32.46
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	+0.76%	+82.41
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	-0.55%	-59.48
Semiconductor Sector (index)	+1.25%	+135.34
Ultra Semiconductors ProShares (USD)	+1.55%	+168.30
UltraShort Semiconductors ProShares (SSG)	-1.90%	-205.36
ISHARE DJ FIN SC INX (IYF)	+2.01%	+217.19
ISHARES LEHMAN 20 YR (TLT)	-0.20%	-21.88
ISHARESLEHMAN 7-10YR (IEF)	-0.30%	-32.75
ISHARES LEH AGG FD (AGG)	-0.18%	-19.60
ISHARES GS $ INVEST (LQD)	+0.43%	+47.02
ISHARES LEHMAN 1-3YR (SHY)	-0.18%	-19.43
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	+0.71%	+76.44
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	+0.63%	+67.76
Short QQQ ProShares (PSQ)	-1.43%	-155.08
Short Dow30 ProShares (DOG)	-1.55%	-167.33
Short S&P500 ProShares (SH)	-1.66%	-179.85
Short MC400 ProShares (MYY)	-1.05%	-113.88
Short SmallCap 600 ProShares (SBB)	-1.23%	-132.87
Short Russell 2000 ProShares (RWM)	-1.39%	-150.23
UltraShort QQQ ProShares (QID)	-0.49%	-52.55
UltraShort Dow30 ProShares (DXD)	-2.88%	-311.36
UltraShort S&P500 ProShares (SDS)	-3.10%	-335.88
UltraShort MC400 ProShares (MZZ)	-1.67%	-180.36
UltraShort SmallCap 600 ProShares (SDD)	-2.26%	-244.33
UltraShort Russell 2000 ProShares (TWM)	-1.25%	-134.98
UltraShort Russell 1000 Value ProShares (SJF)	-3.78%	-409.17
UltraShort Russell 1000 Growth ProShares (SFK)	-1.35%	-146.68
UltraShort Russell MidCap Value ProShares (SJL)	-2.22%	-240.36
UltraShort Russell MidCap Growth ProShares (SDK)	-1.92%	-207.39
UltraShort Russell 2000 Value ProShares (SJH)	-2.52%	-272.66
UltraShort Russell 2000 Growth ProShares (SKK)	-1.70%	-184.06
UltraShort Basic Materials ProShares (SMN)	+0.61%	+65.93
UltraShort Consumer Goods ProShares (SZK)	-2.95%	-318.99
UltraShort Consumer Services ProShares (SCC)	-2.29%	-248.41
UltraShort Financials ProShares (SKF)	-4.48%	-485.09
UltraShort Health Care ProShares (RXD)	-4.43%	-479.45
UltraShort Industrials ProShares (SIJ)	-3.37%	-364.68
UltraShort Oil & Gas ProShares (DUG)	-3.89%	-420.98
UltraShort Real Estate ProShares (SRS)	-2.27%	-245.29
UltraShort Semiconductors ProShares (SSG)	-1.90%	-205.36
UltraShort Technology ProShares (REW)	-2.95%	-319.43
UltraShort Utilities ProShares (SDP)	-4.83%	-522.35
Short MSCI Emerging Markets ProShares (EUM)	-6.10%	-660.32
Short MSCI EAFE ProShares (EFZ)	-2.23%	-240.98
UltraShort MSCI EAFE ProShares (EFU)	-4.33%	-468.77
UltraShort MSCI Emerging Markets ProShares (EEV)	-9.14%	-989.00
UltraShort MSCI Japan ProShares (EWV)	-3.78%	-408.93
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	-4.29%	-463.89
Ultra QQQ ProShares (QLD)	+0.66%	+71.85
Ultra Dow30 ProShares (DDM)	+2.80%	+303.56
Ultra S&P500 ProShares (SSO)	+3.29%	+356.32
Ultra MC400 ProShares (MVV)	+1.75%	+189.92
Ultra SmallCap 600 ProShares (SAA)	+2.06%	+222.61
Ultra Russell 2000 ProShares (UWM)	+0.78%	+84.16
Ultra Russell 1000 Value ProShares (UVG)	+3.78%	+409.17
Ultra Russell 1000 Growth ProShares (UKF)	+3.32%	+358.99
Ultra Russell MidCap Value ProShares (UVU)	+2.48%	+268.70
Ultra Russell MidCap Growth ProShares (UKW)	+2.96%	+319.90
Ultra Russell 2000 Value ProShares (UVT)	+2.66%	+287.66
Ultra Russell2000 Growth ProShares (UKK)	+0.97%	+104.90
Ultra Basic Materials ProShares (UYM)	-0.42%	-45.03
Ultra Consumer Goods ProShares (UGE)	+2.43%	+263.17
Ultra Consumer Services ProShares (UCC)	+1.96%	+211.64
Ultra Financials ProShares (UYG)	+4.50%	+487.05
Ultra Health Care ProShares (RXL)	+2.52%	+272.70
Ultra Industrials ProShares (UXI)	+3.15%	+341.37
Ultra Oil & Gas ProShares (DIG)	+4.01%	+433.67
Ultra Real Estate ProShares (URE)	+1.25%	+135.67
Ultra Semiconductors ProShares (USD)	+1.55%	+168.30
Ultra Technology ProShares (ROM)	+4.99%	+540.31
Ultra Utilities ProShares (UPW)	+5.11%	+553.30
Other ETFs
PowerShares DB Base Metals Double Short (BOM)	-0.70%	-75.51
PowerShares DB Base Metals Double Long (BDD)	+0.96%	+104.14
PowerShares DB Base Metals Short (BOS)	+0.14%	+15.37
PowerShares DB Base Metals Long (BDG)	+0.46%	+49.70
PowerShares DB Crude Oil Double Short (DTO)	-3.78%	-408.76
PowerShares DB Crude Oil Short (SZO)	+0.74%	+80.60
PowerShares DB Crude Oil Double Long (DXO)	+4.77%	+516.55

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posted by Bob Carver  # 12:17 AM

It's not just any shark that smells blood on Wall Street, it's the Great White One himself, Warren Buffett. Seeing a very large mountain of taxpayer cash about to be shoveled into banks, Warren has plunked down $5 Billion for equity in Goldman Sachs, the last investment bank standing. Would he have done it without the government bailout? Absolutely not, according to what he told CNBC-TV in a phone call on Wednesday morning.

The banking cartel are pulling out all the stops to get the bailout through Congress. First, they brought in Buffett with the implication that if a legendary investor is willing to pay $5 Billion for a big bank, it must be a good deal for taxpayers, right? Well, yes, but only if the government were also investing in Goldman. The government will be on the other side of the trade, buying toxic waste from Goldman at more than fair market value. Now, how is that a good deal for the taxpayer?

Next, the Fed pulled $25 Billion out of the banking system.... huh? Doesn't that reduce liquidity and impede lending? Yes, it does. And, banks immediately stopped lending. Apparently, they have taken a play out of France's playbook---when farmers want to get their way, they simply park their tractors on the Champs-Elysées and halt traffic until the bureaucrats concede.

Then, in testimony before Congress, the implication was made that the government would turn a nice profit on the bailout. Hmmm.... wasn't the takeover of Iraq supposed to guarantee us a profit on oil we could seize in that country? Fool me once, shame on you; fool me twice, shame on me.

Fool me three times or more and who do you blame?

Michelle Malkin takes the Treasury Secretary to task:

Both parties in Washington are about to screw us over on an unprecedented scale. They are threatening us with fiscal apocalypse if we don't fork over $700 billion to Treasury Secretary Henry Paulson and allow him to dole it out to whomever he chooses in whatever amount he chooses---without public input or recourse. They are rushing like mad to cram this Mother of All Bailouts down our throats in the next 72-96 hours. And right there in the text of the proposal is this naked power grab: "Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."

Stop.

My question for fellow conservatives: Do you trust this man?

I don't.

Do you trust Hank Paulson's judgement?

I don't.

She goes on to detail a litany of false promises made by the Secretary over the past 18 months.

But, Who Is Really To Blame?

The Democrats will go along with the bailout for a very simple reason: they were responsible for this mess. While it's clear there's plenty of things that could have been done by the neocons to head off the crisis, it's undeniable that the Democrats deserve the lion's share of the blame for the explosion in rotten subprime lending. They want to get the bailout out the door before too many people realize they caused the problem. If they balk, the Republicans are sure to speak up and remind the taxpayer that it was the Democrats who killed the bill which would have reformed mortgage lending three years ago and, very likely, headed off this crisis.

Kevin Hassett, writing for Bloomberg News, details just how the Democrats created this financial crisis:

Some might say the current mess couldn't be foreseen, yet in 2005 Alan Greenspan told Congress how urgent it was for it to act in the clearest possible terms: If Fannie and Freddie ``continue to grow, continue to have the low capital that they have, continue to engage in the dynamic hedging of their portfolios, which they need to do for interest rate risk aversion, they potentially create ever-growing potential systemic risk down the road,'' he said. ``We are placing the total financial system of the future at a substantial risk.''

What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets.

If that bill had become law, then the world today would be different. In 2005, 2006 and 2007, a blizzard of terrible mortgage paper fluttered out of the Fannie and Freddie clouds, burying many of our oldest and most venerable institutions. Without their checkbooks keeping the market liquid and buying up excess supply, the market would likely have not existed.

But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.

With blame enough to destroy both parties, it will be a miracle if either party survives to the 2010 Election. Especially if this $700 Billion bailout doesn't do the trick.

More Bush Lies

The bush in the White House addressed the American people on Wednesday evening, retelling his favorite yarn about how some bad boys on Wall Street had gotten drunk and went on a bender, wiping out the banks in the process. Now, the good people of America are being called on by a higher power to rescue the bad boys and save the world from their sins. Only the drunks actually believed him, though. Such a performance might have fooled the majority after the horror of 9/11, but America is far too sophisticated now to believe this buffoon's lies. If the majority do not yet realize it, they feel it at a visceral level: this man was never on their side and never will be. His kind are the ones you were always warned about, always up to no good, scheming for the next dollar and thoroughly the rapscallion.

Wall Street yearns for a savior, but found none on Wednesday:

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	-0.27%	-29.00
DIAMONDS TRUST SER 1 (DIA)	0.00%	0.00
Ultra Dow30 ProShares (DDM)	-0.58%	-63.29
UltraShort Dow30 ProShares (DXD)	-5.86%	-636.47
S&P 500 (index)	-0.06%	-6.03
S& P DEP RECEIPTS (SPY)	+0.36%	+39.39
Ultra S&P500 ProShares (SSO)	+0.19%	+20.93
UltraShort S&P500 ProShares (SDS)	-6.14%	-666.20
NYSE Composite (index)	-0.21%	-22.93
ISHARES NYSE CMP IDX (NYC)	-0.50%	-54.48
S&P SmallCap 600 (index)	-1.67%	-181.51
Ultra SmallCap 600 ProShares (SAA)	-3.24%	-351.50
Short SmallCap 600 ProShares (SBB)	+1.02%	+110.39
UltraShort SmallCap 600 ProShares (SDD)	+2.87%	+311.40
Russell 2000 (index)	-1.61%	-174.78
ISHARE RUS 2000 INDX (IWM)	-1.48%	-160.54
Ultra Russell 2000 ProShares (UWM)	-1.27%	-137.37
UltraShort Russell 2000 ProShares (TWM)	+1.50%	+162.64
NASDAQ-100 (index)	+1.05%	+114.31
NASDAQ 100 TR SER I (QQQQ)	+0.69%	+74.91
Ultra QQQ ProShares (QLD)	+2.37%	+257.17
UltraShort QQQ ProShares (QID)	-2.87%	-311.17
S&P MidCap 400 (index)	-1.12%	-122.02
ISHARE SP MC 400 INX (IJH)	-0.73%	-78.83
Ultra MC400 ProShares (MVV)	-2.01%	-218.31
UltraShort MC400 ProShares (MZZ)	+1.30%	+140.92
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	-0.71%	-76.72
Amex Gold (index)	+0.47%	+50.58
MKT VECT GOLD MNRS (GDX)	0.00%	0.00
STREETTRACKS GOLD TR (GLD)	-1.82%	-197.86
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	+4.37%	+474.31
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	-3.52%	-381.86
Semiconductor Sector (index)	+1.05%	+113.52
Ultra Semiconductors ProShares (USD)	+0.50%	+54.27
UltraShort Semiconductors ProShares (SSG)	-2.03%	-220.60
ISHARE DJ FIN SC INX (IYF)	-1.74%	-189.34
ISHARES LEHMAN 20 YR (TLT)	+0.44%	+47.55
ISHARESLEHMAN 7-10YR (IEF)	+0.26%	+28.05
ISHARES LEH AGG FD (AGG)	+0.12%	+13.12
ISHARES GS $ INVEST (LQD)	-0.26%	-28.21
ISHARES LEHMAN 1-3YR (SHY)	+0.22%	+23.43
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	-0.88%	-95.37
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	-0.96%	-104.30
Short QQQ ProShares (PSQ)	-0.79%	-85.52
Short Dow30 ProShares (DOG)	-0.10%	-10.86
Short S&P500 ProShares (SH)	-0.58%	-62.75
Short MC400 ProShares (MYY)	+0.57%	+61.58
Short SmallCap 600 ProShares (SBB)	+1.02%	+110.39
Short Russell 2000 ProShares (RWM)	+1.46%	+158.71
UltraShort QQQ ProShares (QID)	-2.87%	-311.17
UltraShort Dow30 ProShares (DXD)	-5.86%	-636.47
UltraShort S&P500 ProShares (SDS)	-6.14%	-666.20
UltraShort MC400 ProShares (MZZ)	+1.30%	+140.92
UltraShort SmallCap 600 ProShares (SDD)	+2.87%	+311.40
UltraShort Russell 2000 ProShares (TWM)	+1.50%	+162.64
UltraShort Russell 1000 Value ProShares (SJF)	+4.09%	+443.95
UltraShort Russell 1000 Growth ProShares (SFK)	+2.22%	+241.06
UltraShort Russell MidCap Value ProShares (SJL)	+1.92%	+208.56
UltraShort Russell MidCap Growth ProShares (SDK)	+1.91%	+207.01
UltraShort Russell 2000 Value ProShares (SJH)	+1.84%	+199.46
UltraShort Russell 2000 Growth ProShares (SKK)	+2.42%	+262.86
UltraShort Basic Materials ProShares (SMN)	+2.62%	+283.92
UltraShort Consumer Goods ProShares (SZK)	+0.41%	+44.19
UltraShort Consumer Services ProShares (SCC)	+0.64%	+69.57
UltraShort Financials ProShares (SKF)	+1.74%	+188.56
UltraShort Health Care ProShares (RXD)	+1.00%	+108.50
UltraShort Industrials ProShares (SIJ)	+2.70%	+293.40
UltraShort Oil & Gas ProShares (DUG)	-5.26%	-571.27
UltraShort Real Estate ProShares (SRS)	+0.40%	+43.42
UltraShort Semiconductors ProShares (SSG)	-2.03%	-220.60
UltraShort Technology ProShares (REW)	-1.83%	-198.44
UltraShort Utilities ProShares (SDP)	+0.74%	+80.36
Short MSCI Emerging Markets ProShares (EUM)	-0.25%	-27.08
Short MSCI EAFE ProShares (EFZ)	-0.77%	-83.04
UltraShort MSCI EAFE ProShares (EFU)	-0.91%	-98.79
UltraShort MSCI Emerging Markets ProShares (EEV)	-5.75%	-624.12
UltraShort MSCI Japan ProShares (EWV)	-1.81%	-196.42
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	-4.00%	-433.94
Ultra QQQ ProShares (QLD)	+2.37%	+257.17
Ultra Dow30 ProShares (DDM)	-0.58%	-63.29
Ultra S&P500 ProShares (SSO)	+0.19%	+20.93
Ultra MC400 ProShares (MVV)	-2.01%	-218.31
Ultra SmallCap 600 ProShares (SAA)	-3.24%	-351.50
Ultra Russell 2000 ProShares (UWM)	-1.27%	-137.37
Ultra Russell 1000 Value ProShares (UVG)	-0.49%	-53.25
Ultra Russell 1000 Growth ProShares (UKF)	-1.84%	-199.20
Ultra Russell MidCap Value ProShares (UVU)	-0.97%	-105.02
Ultra Russell MidCap Growth ProShares (UKW)	-3.57%	-387.93
Ultra Russell 2000 Value ProShares (UVT)	-3.93%	-426.12
Ultra Russell2000 Growth ProShares (UKK)	-2.03%	-219.83
Ultra Basic Materials ProShares (UYM)	-2.74%	-297.84
Ultra Consumer Goods ProShares (UGE)	-0.66%	-71.99
Ultra Consumer Services ProShares (UCC)	+0.08%	+8.61
Ultra Financials ProShares (UYG)	-3.26%	-354.31
Ultra Health Care ProShares (RXL)	+0.45%	+48.83
Ultra Industrials ProShares (UXI)	-3.37%	-366.25
Ultra Oil & Gas ProShares (DIG)	-0.15%	-16.70
Ultra Real Estate ProShares (URE)	-0.83%	-89.94
Ultra Semiconductors ProShares (USD)	+0.50%	+54.27
Ultra Technology ProShares (ROM)	+1.48%	+160.86
Ultra Utilities ProShares (UPW)	-1.04%	-113.15
Other ETFs
PowerShares DB Base Metals Double Short (BOM)	+0.96%	+104.23
PowerShares DB Base Metals Double Long (BDD)	-3.46%	-375.25
PowerShares DB Crude Oil Double Short (DTO)	+2.93%	+318.57
PowerShares DB Crude Oil Short (SZO)	-0.74%	-80.22
PowerShares DB Crude Oil Double Long (DXO)	-1.63%	-177.21
PowerShares DB Crude Oil Long (OLO)	-3.40%	-368.86

Subscriber Notes (if you're reading this in plain text format or on the blog, visit the MyClues Home Page and click on "Subscriber Notes" in the Quick Links section at the top of the page).

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posted by Bob Carver  # 11:48 PM

Jabberwocky Media: Reporting the Price of Oil

Yesterday, the headlines read, The Highest Oil Price Spike in History. As the reporter said, "a price spike of this magnitude -- oil prices have now traveled from lows in the $90s last week to $130 today -- is alarming." But, as they say, sensational news sells newspapers. Yes, the price of oil for delivery in October did jump to $130 and closed at $120.98. But, oil for November delivery closed at just $109.37 after hitting a high of a tad over $110---about $20 below the October contract. That news was simply ignored, of course.

The media loves to sensationalize their product, the "news". When oil prices are rising, causing consumers to pay up and get worried, they emphasize the rise. But, when oil reverses course and drops, they simply ignore or minimize the news. For example, today, the media reported that oil closed trading at $106.74, down $2.63 from yesterday. Somehow, oil prices fell from $130 to $106.74 from the high yesterday to the close today and the media is reporting it just as a $2.63 decrease, rather than more than a $23 crash! Talk about having your cake and eating it, too. At this rate oil can go up $20 a day and down again the next day, but we'll only read about those alternate days it went up.

Crime in America---Let's End Bank Dictatorship

The same thing is happening with the so-called "credit crisis." The media reports that huge losses are being suffered by banks, most of which were unregulated "investment" banks---really, just barely legal gambling casinos for the super-rich. They took risks and lost. But, instead of taking their losses, the super-rich want to be made whole by the government---meaning the taxpayers. According to the latest figures from John Hussman, less than 6% of all mortgage money is at risk, not the calamity the whining plutocrats claim it is. And, what the Treasury Secretary isn't telling Congress is that bank equity holders and bond holders can easily cover all of the losses (equity holders will lose everything, of course, but bond holders will simply get a minor "haircut"). Both Paulson and Fed Head Bernanke are asking Congress to give them a blank check to bail out the rich, claiming that it is necessary to prevent the banks from cutting off credit to Main Street. According to Hussman,

The key is to recognize that for nearly all of the institutions currently at risk of failure, there exists a cushion of bondholder capital sufficient to absorb all probable losses, without any need for the public to bear the cost. Why on earth would Congress put the U.S. public behind these bondholders?

The stockholders and bondholders of the company itself should be the first to bear losses, not the public. That is the essence of what a free and fair market, and a responsible government would enforce. The investors in the companies that produced the losses should be accountable for them, and the customers and counterparties should be protected.

The scare tactics being employed by the Administration are straight out of a Nazi playbook, with its emphasis on fear, haste and the seeming necessity of a blank check to pay for it. These are the tools despots use to seize power and money in a society. After crying wolf about "Weapons of Mass Destruction" in Iraq, anyone who takes what Bush says at face value should look at the relationship between his family and Hitler. In the early years of World War II, Bush's grandfather, Prescott Bush, maintained a close business relationship with the Nazi leader in defiance of laws prohibiting such dealings with the enemy. While it has never been firmly established that Bush directly financed Hitler's political career (but widely suspected), evidence has emerged which positively links the Bush family fortune with the Nazi party. Fritz Thyssen helped finance Hitler in the 1930s before falling out with him at the end of the decade. According to the The Guardian, "Bush was the director of the New York-based Union Banking Corporation (UBC) that represented Thyssen's US interests and he continued to work for the bank after America entered the war."

Maybe there's no current connection between Bush and the Nazis, but you can never be too sure when writing $700 Billion checks.

This whole sham begs the question, "Why are the banks not lending?" The banks haven't lent money to borrowers, except for mortgages, in years. Are mortgages the only loans which make sense in the 21st century? No, of course not. Do entrepreneurs get treated like second class citizens and laughed out of the bank when they ask for loans? Yes, they do. What we have is a broken banking system that not only does not need bailing out, it simply needs dismantling.

If anyone in America needs bailing out, it's Main Street, which has been victimized by the banks for years. It's time Congress stood up and ended the dictatorship of the banks once and for all. Take back the power to print money---it should have never been delegated to private banks in the first place. The government is the only entity that should be allowed to print money and it should be strictly controlled by independent auditors. The only bank that should be allowed to lend money is the Federal Reserve, which should be nationalized and run by the government (it's a private institution owned by the banks right now).

Take back your government, America. Thomas Jefferson knew what he was talking about when he said:

"I believe that banking institutions are more dangerous to our liberties than standing armies. Already they have raised up a moneyed aristocracy that has set the Government at defiance. The issuing power should be taken from the banks and restored to the people to whom it properly belongs."

and,

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."

Now is the time to act. House members are up for re-election in November and are sensitive to voters' opinions. Call your representative and demand that s/he revoke the right of banks to print money---and to exist, for that matter. Use this link to find your representative and call today!

For more on the "crisis," see Paul B. Farrell's latest column, Reaganomics $3.9 trillion debt outrages taxpayers:

"Do the math folks: With a straight face these rabid ideologues are disgracing Reagan's great conservative principles while trying to shift the blame to Democrats as tax-and-spenders. What a bunch of hypocrites! Truth is, Reaganomic extremists are the ones responsible for adding this $3.9 trillion new debt that taxpayers must pay for in new taxes. So who's going to bail out America?"

But, if you think this is just another of Paul's rants, it's not (well, not all of it). He goes on to point out that, "Anyone can become a Zen Millionaire, in an instant. Seriously, I've read all the books about millionaires, even wrote a couple. Spent time on Wall Street with Morgan Stanley as an investment banker. But I keep coming back to this one simple truth: Real wealth is within!" He goes on to list "12 secrets" that will help you calm down and "plan ahead for Paulson's massive reincarnation of Reaganomics."

As for Wall Street, all it wants is a nice, early Christmas present this year:

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	-1.47%	-161.52
DIAMONDS TRUST SER 1 (DIA)	-1.70%	-187.62
Ultra Dow30 ProShares (DDM)	-3.21%	-353.59
UltraShort Dow30 ProShares (DXD)	+3.32%	+366.05
S&P 500 (index)	-1.51%	-166.82
S& P DEP RECEIPTS (SPY)	-2.18%	-240.06
Ultra S&P500 ProShares (SSO)	-4.42%	-487.33
UltraShort S&P500 ProShares (SDS)	+4.27%	+470.52
NYSE Composite (index)	-1.68%	-185.49
ISHARES NYSE CMP IDX (NYC)	-1.79%	-197.57
S&P SmallCap 600 (index)	-1.30%	-142.74
Ultra SmallCap 600 ProShares (SAA)	-2.36%	-260.18
Short SmallCap 600 ProShares (SBB)	+2.00%	+220.72
UltraShort SmallCap 600 ProShares (SDD)	+3.08%	+339.20
Russell 2000 (index)	-1.56%	-172.02
ISHARE RUS 2000 INDX (IWM)	-1.33%	-146.98
Ultra Russell 2000 ProShares (UWM)	-4.37%	-480.84
UltraShort Russell 2000 ProShares (TWM)	+3.90%	+429.57
NASDAQ-100 (index)	-0.90%	-98.92
NASDAQ 100 TR SER I (QQQQ)	-0.76%	-83.53
Ultra QQQ ProShares (QLD)	-2.25%	-247.63
UltraShort QQQ ProShares (QID)	+2.22%	+244.23
S&P MidCap 400 (index)	-1.15%	-126.72
ISHARE SP MC 400 INX (IJH)	-1.32%	-144.98
Ultra MC400 ProShares (MVV)	-2.60%	-285.91
UltraShort MC400 ProShares (MZZ)	+2.77%	+304.97
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	-0.80%	-88.27
Amex Gold (index)	-2.95%	-324.84
MKT VECT GOLD MNRS (GDX)	-2.54%	-280.01
STREETTRACKS GOLD TR (GLD)	-0.96%	-106.23
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	+2.78%	+306.67
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	-2.12%	-233.82
Semiconductor Sector (index)	-1.84%	-202.32
Ultra Semiconductors ProShares (USD)	-2.05%	-225.91
UltraShort Semiconductors ProShares (SSG)	+1.21%	+133.29
ISHARE DJ FIN SC INX (IYF)	-1.26%	-138.83
ISHARES LEHMAN 20 YR (TLT)	-0.38%	-42.21
ISHARESLEHMAN 7-10YR (IEF)	0.00%	0.00
ISHARES LEH AGG FD (AGG)	-0.15%	-16.62
ISHARES GS $ INVEST (LQD)	-1.03%	-113.35
ISHARES LEHMAN 1-3YR (SHY)	+0.07%	+7.93
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	-0.13%	-14.74
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	-0.09%	-10.24
Short QQQ ProShares (PSQ)	+0.47%	+51.29
Short Dow30 ProShares (DOG)	+1.47%	+161.41
Short S&P500 ProShares (SH)	+1.96%	+216.45
Short MC400 ProShares (MYY)	+1.32%	+145.46
Short SmallCap 600 ProShares (SBB)	+2.00%	+220.72
Short Russell 2000 ProShares (RWM)	+1.69%	+186.55
UltraShort QQQ ProShares (QID)	+2.22%	+244.23
UltraShort Dow30 ProShares (DXD)	+3.32%	+366.05
UltraShort S&P500 ProShares (SDS)	+4.27%	+470.52
UltraShort MC400 ProShares (MZZ)	+2.77%	+304.97
UltraShort SmallCap 600 ProShares (SDD)	+3.08%	+339.20
UltraShort Russell 2000 ProShares (TWM)	+3.90%	+429.57
UltraShort Russell 1000 Value ProShares (SJF)	+0.24%	+26.36
UltraShort Russell 1000 Growth ProShares (SFK)	+0.16%	+17.13
UltraShort Russell MidCap Value ProShares (SJL)	+2.05%	+225.59
UltraShort Russell MidCap Growth ProShares (SDK)	+3.11%	+342.24
UltraShort Russell 2000 Value ProShares (SJH)	+3.39%	+373.54
UltraShort Russell 2000 Growth ProShares (SKK)	+2.61%	+287.58
UltraShort Basic Materials ProShares (SMN)	+8.49%	+935.03
UltraShort Consumer Goods ProShares (SZK)	+1.77%	+194.75
UltraShort Consumer Services ProShares (SCC)	+2.17%	+239.32
UltraShort Financials ProShares (SKF)	+2.15%	+236.51
UltraShort Health Care ProShares (RXD)	-0.39%	-42.50
UltraShort Industrials ProShares (SIJ)	+4.95%	+545.32
UltraShort Oil & Gas ProShares (DUG)	+5.97%	+657.38
UltraShort Real Estate ProShares (SRS)	-0.02%	-2.75
UltraShort Semiconductors ProShares (SSG)	+1.21%	+133.29
UltraShort Technology ProShares (REW)	+0.75%	+82.88
UltraShort Utilities ProShares (SDP)	+2.45%	+269.56
Short MSCI Emerging Markets ProShares (EUM)	+2.04%	+224.31
Short MSCI EAFE ProShares (EFZ)	+1.54%	+169.95
UltraShort MSCI EAFE ProShares (EFU)	+3.29%	+361.96
UltraShort MSCI Emerging Markets ProShares (EEV)	+5.73%	+630.68
UltraShort MSCI Japan ProShares (EWV)	+0.07%	+7.71
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	+5.92%	+652.33
Ultra QQQ ProShares (QLD)	-2.25%	-247.63
Ultra Dow30 ProShares (DDM)	-3.21%	-353.59
Ultra S&P500 ProShares (SSO)	-4.42%	-487.33
Ultra MC400 ProShares (MVV)	-2.60%	-285.91
Ultra SmallCap 600 ProShares (SAA)	-2.36%	-260.18
Ultra Russell 2000 ProShares (UWM)	-4.37%	-480.84
Ultra Russell 1000 Value ProShares (UVG)	-4.18%	-460.31
Ultra Russell 1000 Growth ProShares (UKF)	-2.99%	-329.21
Ultra Russell MidCap Value ProShares (UVU)	-2.30%	-253.30
Ultra Russell MidCap Growth ProShares (UKW)	-3.23%	-355.26
Ultra Russell 2000 Value ProShares (UVT)	-3.10%	-341.91
Ultra Russell2000 Growth ProShares (UKK)	-3.56%	-392.22
Ultra Basic Materials ProShares (UYM)	-6.96%	-766.23
Ultra Consumer Goods ProShares (UGE)	-1.66%	-182.40
Ultra Consumer Services ProShares (UCC)	-1.61%	-177.67
Ultra Financials ProShares (UYG)	-2.13%	-234.61
Ultra Health Care ProShares (RXL)	-0.50%	-55.47
Ultra Industrials ProShares (UXI)	-3.47%	-382.70
Ultra Oil & Gas ProShares (DIG)	-5.29%	-582.23
Ultra Real Estate ProShares (URE)	+0.11%	+12.46
Ultra Semiconductors ProShares (USD)	-2.05%	-225.91
Ultra Technology ProShares (ROM)	-1.72%	-189.18
Ultra Utilities ProShares (UPW)	-2.98%	-328.06
Other ETFs
PowerShares DB Base Metals Double Short (BOM)	+5.19%	+571.18
PowerShares DB Base Metals Double Long (BDD)	-2.81%	-309.37
PowerShares DB Crude Oil Double Short (DTO)	+1.83%	+201.69
PowerShares DB Crude Oil Short (SZO)	+1.14%	+125.30
PowerShares DB Crude Oil Double Long (DXO)	-5.34%	-588.73
PowerShares DB Crude Oil Long (OLO)	+0.05%	+5.51

Additional stock market commentary -- for subscribers only -- can be found here: Subscriber Notes (if you're reading this in plain text format or on the blog, visit the MyClues Home Page and click on "Subscriber Notes" in the Quick Links section at the top of the page).

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posted by Bob Carver  # 9:35 PM

Commodities caught a bid on Monday as stocks were sold. "Reflation" was the theme as traders moved back into real goods and financial assets were dumped. After last week's big rally and the inflationary effects of the Fed's bailout of the banks, this is a sensible reaction, of course.

The dealmaking between Washington and Wall Street was intense as the Democrats seized the initiative from the Republicans. The bailout of banks is inevitable, of course, but the Democrats want to make sure that the public doesn't get completely taken to the cleaners and demanded concessions, such as preventing homeowner foreclosures, limits on fat-cat CEO salaries and bonuses and a government equity stake in the banks to allow the taxpayer to reap the benefits, if any, of this bailout in the future. The public is in no mood to allow the fat cats get away with murder as they usually do---they want a profit out of the deal.

The Republicans are a pitiable lot these days, having presided over a reign of power which has seen them go from free market capitalism all the way across the spectrum to plutocratic socialism. One theory of political science posits that a party will transition itself over time from one end of the spectrum all the way to the other end of the spectrum just before it dies out. The Democrat Party once fought to protect slaveowners from having their slaves freed by the government. The Republican Party opposed them and tried to free the slaves. It looks like we are coming to the end of both parties.

The one thing that's clear is that most of Congress and the Presidency have totally abdicated their responsibility to the super-rich and virtually none of them deserve to be re-elected this Fall. They should all be locked in the Capitol and not be allowed to campaign for re-election until they have come up with a plan which eliminates this plutocratic system of government. Any bailout must result in big profits for the taxpayer---and big losses for the fat cats.

Though stocks did retrace some of their gains Monday, they remain well above the lows of last week:

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	-3.27%	-372.75
DIAMONDS TRUST SER 1 (DIA)	-3.07%	-350.01
Ultra Dow30 ProShares (DDM)	-5.50%	-626.36
UltraShort Dow30 ProShares (DXD)	+5.65%	+643.43
S&P 500 (index)	-2.94%	-335.32
S& P DEP RECEIPTS (SPY)	-2.69%	-306.46
Ultra S&P500 ProShares (SSO)	-4.82%	-549.44
UltraShort S&P500 ProShares (SDS)	+4.77%	+543.52
NYSE Composite (index)	-3.27%	-372.54
ISHARES NYSE CMP IDX (NYC)	-2.64%	-300.57
S&P SmallCap 600 (index)	-3.87%	-440.55
Ultra SmallCap 600 ProShares (SAA)	-7.98%	-908.28
Short SmallCap 600 ProShares (SBB)	+2.43%	+276.84
UltraShort SmallCap 600 ProShares (SDD)	+7.12%	+810.80
Russell 2000 (index)	-4.42%	-503.14
ISHARE RUS 2000 INDX (IWM)	-4.07%	-463.13
Ultra Russell 2000 ProShares (UWM)	-8.63%	-982.76
UltraShort Russell 2000 ProShares (TWM)	+8.64%	+983.63
NASDAQ-100 (index)	-3.57%	-406.51
NASDAQ 100 TR SER I (QQQQ)	-4.71%	-536.24
Ultra QQQ ProShares (QLD)	-7.82%	-890.34
UltraShort QQQ ProShares (QID)	+7.26%	+826.58
S&P MidCap 400 (index)	-4.66%	-530.46
ISHARE SP MC 400 INX (IJH)	-3.61%	-410.56
Ultra MC400 ProShares (MVV)	-7.77%	-884.69
UltraShort MC400 ProShares (MZZ)	+6.79%	+772.75
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	+3.67%	+417.85
Amex Gold (index)	+7.84%	+892.81
MKT VECT GOLD MNRS (GDX)	+8.41%	+957.66
STREETTRACKS GOLD TR (GLD)	+3.72%	+423.85
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	-8.34%	-949.36
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	+7.67%	+873.36
Semiconductor Sector (index)	-4.61%	-524.90
Ultra Semiconductors ProShares (USD)	-8.31%	-946.11
UltraShort Semiconductors ProShares (SSG)	+9.00%	+1025.51
ISHARE DJ FIN SC INX (IYF)	-6.04%	-687.80
ISHARES LEHMAN 20 YR (TLT)	-0.01%	-1.21
ISHARESLEHMAN 7-10YR (IEF)	-0.21%	-24.26
ISHARES LEH AGG FD (AGG)	-1.56%	-178.16
ISHARES GS $ INVEST (LQD)	+0.59%	+67.53
ISHARES LEHMAN 1-3YR (SHY)	+0.07%	+8.21
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	+0.98%	+111.17
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	+0.75%	+85.28
Short QQQ ProShares (PSQ)	+4.93%	+562.00
Short Dow30 ProShares (DOG)	+3.19%	+363.13
Short S&P500 ProShares (SH)	+3.26%	+371.36
Short MC400 ProShares (MYY)	+4.31%	+490.90
Short SmallCap 600 ProShares (SBB)	+2.43%	+276.84
Short Russell 2000 ProShares (RWM)	+3.76%	+427.88
UltraShort QQQ ProShares (QID)	+7.26%	+826.58
UltraShort Dow30 ProShares (DXD)	+5.65%	+643.43
UltraShort S&P500 ProShares (SDS)	+4.77%	+543.52
UltraShort MC400 ProShares (MZZ)	+6.79%	+772.75
UltraShort SmallCap 600 ProShares (SDD)	+7.12%	+810.80
UltraShort Russell 2000 ProShares (TWM)	+8.64%	+983.63
UltraShort Russell 1000 Value ProShares (SJF)	+6.77%	+770.53
UltraShort Russell 1000 Growth ProShares (SFK)	+5.21%	+593.21
UltraShort Russell MidCap Value ProShares (SJL)	+7.71%	+877.88
UltraShort Russell MidCap Growth ProShares (SDK)	+4.87%	+554.48
UltraShort Russell 2000 Value ProShares (SJH)	+9.38%	+1068.33
UltraShort Russell 2000 Growth ProShares (SKK)	+7.63%	+869.32
UltraShort Basic Materials ProShares (SMN)	+4.68%	+532.90
UltraShort Consumer Goods ProShares (SZK)	+6.08%	+692.48
UltraShort Consumer Services ProShares (SCC)	+11.56%	+1316.74
UltraShort Financials ProShares (SKF)	+2.70%	+307.30
UltraShort Health Care ProShares (RXD)	+3.66%	+417.33
UltraShort Industrials ProShares (SIJ)	+6.29%	+715.96
UltraShort Oil & Gas ProShares (DUG)	+2.43%	+276.50
UltraShort Real Estate ProShares (SRS)	+14.15%	+1611.60
UltraShort Semiconductors ProShares (SSG)	+9.00%	+1025.51
UltraShort Technology ProShares (REW)	+6.64%	+756.18
UltraShort Utilities ProShares (SDP)	+4.07%	+463.00
Short MSCI Emerging Markets ProShares (EUM)	-1.70%	-193.28
Short MSCI EAFE ProShares (EFZ)	+3.48%	+395.86
UltraShort MSCI EAFE ProShares (EFU)	+6.04%	+687.65
UltraShort MSCI Emerging Markets ProShares (EEV)	+10.68%	+1216.37
UltraShort MSCI Japan ProShares (EWV)	+7.47%	+851.07
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	+8.88%	+1011.38
Ultra QQQ ProShares (QLD)	-7.82%	-890.34
Ultra Dow30 ProShares (DDM)	-5.50%	-626.36
Ultra S&P500 ProShares (SSO)	-4.82%	-549.44
Ultra MC400 ProShares (MVV)	-7.77%	-884.69
Ultra SmallCap 600 ProShares (SAA)	-7.98%	-908.28
Ultra Russell 2000 ProShares (UWM)	-8.63%	-982.76
Ultra Russell 1000 Value ProShares (UVG)	-9.11%	-1038.02
Ultra Russell 1000 Growth ProShares (UKF)	-4.69%	-533.76
Ultra Russell MidCap Value ProShares (UVU)	-9.27%	-1055.95
Ultra Russell MidCap Growth ProShares (UKW)	-2.73%	-310.66
Ultra Russell 2000 Value ProShares (UVT)	-8.83%	-1005.58
Ultra Russell2000 Growth ProShares (UKK)	-6.84%	-779.23
Ultra Basic Materials ProShares (UYM)	-5.27%	-600.32
Ultra Consumer Goods ProShares (UGE)	-5.53%	-629.79
Ultra Consumer Services ProShares (UCC)	-8.35%	-950.39
Ultra Financials ProShares (UYG)	-10.16%	-1157.00
Ultra Health Care ProShares (RXL)	-4.01%	-456.68
Ultra Industrials ProShares (UXI)	-10.38%	-1182.56
Ultra Oil & Gas ProShares (DIG)	-1.92%	-218.98
Ultra Real Estate ProShares (URE)	-14.17%	-1614.28
Ultra Semiconductors ProShares (USD)	-8.31%	-946.11
Ultra Technology ProShares (ROM)	-7.76%	-883.76
Ultra Utilities ProShares (UPW)	-3.89%	-442.83
Other ETFs
PowerShares DB Base Metals Double Short (BOM)	-13.26%	-1510.03
PowerShares DB Base Metals Short (BOS)	+5.21%	+592.97
PowerShares DB Base Metals Long (BDG)	+6.94%	+790.26
PowerShares DB Crude Oil Double Short (DTO)	-7.43%	-845.90
PowerShares DB Crude Oil Short (SZO)	-2.35%	-267.45
PowerShares DB Crude Oil Double Long (DXO)	+11.73%	+1335.48

Additional stock market commentary -- for subscribers only -- can be found here: Subscriber Notes (if you're reading this in plain text format or on the blog, visit the MyClues Home Page and click on "Subscriber Notes" in the Quick Links section at the top of the page).

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posted by Bob Carver  # 8:40 PM

In the continuing, daily saga of the socialists in Washington gone wild, shredding the Constitution and printing bundles of cash in billion-dollar notes, we thought we'd let you know how to make a killing in the stock market by telling you how our comrades did it.

The Chairman of the Securities and Exchange Commission, Christopher Cox, along with his buddies, made a killing in the stock market last week. Cox made it possible to turn an investment of a few pennies on Thursday afternoon into thousands of dollars by Friday morning. Will he ever be arrested and serve prison time for manipulating the market he is sworn to regulate? As John MacEnroe would scream, "You cannot be serious!"

Here's what Cox and his fellow travelers did:

As the clock ticked down Thursday afternoon on expiring September call options on the S&P 500 Index, far out-of-the-money calls were bought for mere pennies as the expectation was that they would close well out-of-the-money. Then, Cox rammed through new rules which created a panic situation for the bears: no more short selling, shorts would be forced to cover, driving those S&P 500 Index calls well into the money and churning out massive profits for call buyers by the opening on Friday morning. In one hour of trading, Cox created a profit of many thousands of percentage points.

Welcome to the new world of centrally-managed markets. Our comrades in the socialist state have decreed that they will graciously allow us to buy stocks as long as we don't sell them short. The new rules are "temporary" (like "temporary taxes," there is a hint of permanence there). Supposedly, they will expire on October 2nd, at which time the market will be allowed to crash---not. Most traders believe the rules will be extended until after the new politburo and sovereigns are elected in November. Or, maybe until January. Who really knows? At least we'll know ahead of time when to expect stocks to crash.

Japan had a law against selling short which allowed their stock market to run up to near 40,000 in 1989. Then, convinced by a Wall Street investment bank, they decided to relax the rules and allow short selling. The market immediately started collapsing, declining 80%. If the US stock market follows the same path, we'll see the Dow rally to 40,000, then they'll allow short selling and we can watch the market crash.

By the way, this is a good time to remind you of "survivor bias." This is what happens to stock indices. It's very bullish, actually. And, it's something the permabears always forget. When a stock gets nationalized and its stockholders are wiped out, the stock is removed from all of the stock indices and a healthy, growing company usually replaces it. Over time, the weaklings are weeded out of the indices and the strong companies power the index to higher highs. For example, on Monday morning, AIG, the largest insurance company in the world (and one you as a US citizen own), will disappear from the Dow Industrials Average and will be replaced by Kraft Foods. This is exactly why all the bears who are predicting the stock market to tumble back to extremely low levels are all wet. They forget "survivor bias."

Sometimes the Wall Street Journal, which determines which stocks make up the Dow Industrials, make a mistake and the average underperforms. For example, they pulled IBM out of the Dow at one point and replaced it by AT&T. Over the next couple of decades, IBM grew thousands of percentage points while AT&T did its usual "stuck in the mud" routine. Had the editors left IBM in and AT&T out, the Dow would have long ago surpassed the 100,000 level. And, so it goes .…

Now, to the matter of the new unnamed federal agency which is going to bail out the comrades running investment banks on Wall Street. CNBC viewers proposed several names for this new conduit to funnel taxpayer money to the super-rich. The one we liked best was "Securitized Housing Investment Trust" (SHIT). Our back-of-the-envelope estimate suggests that the total cost of this latest bailout will run into the trillions when you count the out-of-pocket expenses, plus the boost in the overall inflation rate (which will raise the cost of everything in the future). By the time it's all wound up (2020 is the best time estimate we have), it will have debilitated America so much that the country might have declared bankruptcy and been repossessed by her creditors. No kidding. The road to hell is paved with "free market capitalism." Didn't Kondratiev prove that this was the ultimate fate of all societies, both capitalist and communist? That genius was sent to Siberia for demonstrating that communism had no advantage over capitalism. The current crop of neocons is proving that capitalism has no advantage over communism.

So, you want to make a killing on Wall Street? Here's the secret: bribe one of your Washington comrades and ask him when the next "ramp job" is scheduled for Wall Street.

By the way, it was Christopher Cox who allowed Wall Street to use 40:1 leverage on mortgage-backed securities and that's exactly what got us into this financial debacle, not short sellers. Banning short selling just assured Cox and his buddies huge windfall profits. Now that McCain has publically declared he will fire Cox if he's elected (and, of course, Obama would certainly do the same since Cox is a Republican), Cox is a short-timer just getting his before they throw him out of a job.

It's Time For a Real Change

Ellen Brown writes an informative article on It's the Derivatives, Stupid! Why Fannie, Freddie and AIG all had to be bailed out:

The current system is collapsing at train-wreck speed, and the "change" called for in Washington may soon be taking a direction undreamt of a few years ago. We need to stop funding the culprits who brought us this debacle at our expense. We need a public banking system that makes a cost-effective credit mechanism available for homeowners, manufacturing, renewable energy, and infrastructure; and the first step to making it cost-effective is to strip out the swarms of gamblers, fraudsters and profiteers now gaming the system.

Motivation and Fear Are the Same Thing

Friday, the master planners in Washington changed the rules on Wall Street and the bears became motivated buyers in a big hurry. As the Pointy-Haired Boss in Scott Adam's Dilbert comic for November 7th will put it:

"This job got a lot easier when I realized that motivation and fear are the same thing."

Motivation was in abundance on Friday:

Security	Percentage Change	Change in Dow Industrials Points
Dow Industrials (index)	+3.35%	+368.75
DIAMONDS TRUST SER 1 (DIA)	+3.62%	+399.07
Ultra Dow30 ProShares (DDM)	+6.70%	+738.83
UltraShort Dow30 ProShares (DXD)	-6.50%	-716.70
S&P 500 (index)	+3.25%	+358.58
S& P DEP RECEIPTS (SPY)	+3.59%	+395.20
Ultra S&P500 ProShares (SSO)	+6.94%	+764.97
UltraShort S&P500 ProShares (SDS)	-7.74%	-852.55
NYSE Composite (index)	+5.29%	+582.95
ISHARES NYSE CMP IDX (NYC)	+5.26%	+579.82
S&P SmallCap 600 (index)	+2.98%	+328.31
Ultra SmallCap 600 ProShares (SAA)	+7.56%	+833.12
Short SmallCap 600 ProShares (SBB)	-2.75%	-302.64
UltraShort SmallCap 600 ProShares (SDD)	-7.35%	-810.22
Russell 2000 (index)	+4.15%	+457.73
ISHARE RUS 2000 INDX (IWM)	+4.46%	+491.13
Ultra Russell 2000 ProShares (UWM)	+10.92%	+1203.24
UltraShort Russell 2000 ProShares (TWM)	-10.34%	-1138.96
NASDAQ-100 (index)	+2.08%	+229.36
NASDAQ 100 TR SER I (QQQQ)	+3.20%	+352.57
Ultra QQQ ProShares (QLD)	+3.93%	+433.31
UltraShort QQQ ProShares (QID)	-3.76%	-414.47
S&P MidCap 400 (index)	+4.24%	+466.83
ISHARE SP MC 400 INX (IJH)	+3.32%	+366.13
Ultra MC400 ProShares (MVV)	+8.15%	+898.21
UltraShort MC400 ProShares (MZZ)	-7.97%	-877.82
GREENHAVEN Continuous Commodity Indx Fnd (GCC)	+1.65%	+182.24
Amex Gold (index)	+3.43%	+377.75
MKT VECT GOLD MNRS (GDX)	+2.92%	+322.21
STREETTRACKS GOLD TR (GLD)	+3.84%	+423.22
DEUTSCHE BANK DOUBLE SHORT GOLD (DZZ)	-8.01%	-882.96
DEUTSCHE BANK DOUBLE LONG GOLD (DGP)	+7.54%	+830.54
Semiconductor Sector (index)	+1.89%	+208.48
Ultra Semiconductors ProShares (USD)	+4.36%	+480.94
UltraShort Semiconductors ProShares (SSG)	-2.24%	-246.72
ISHARE DJ FIN SC INX (IYF)	+9.10%	+1002.94
ISHARES LEHMAN 20 YR (TLT)	-3.17%	-349.72
ISHARESLEHMAN 7-10YR (IEF)	-1.78%	-196.56
ISHARES LEH AGG FD (AGG)	+0.45%	+49.32
ISHARES GS $ INVEST (LQD)	+3.12%	+344.29
ISHARES LEHMAN 1-3YR (SHY)	-0.56%	-61.86
ProShares ETFs
UltraShort Lehman 7-10 Year Treasury ProShares (PST)	+2.86%	+314.90
UltraShort Lehman 20+ Year Treasury ProShares (TBT)	+5.72%	+630.68
Short QQQ ProShares (PSQ)	-3.19%	-350.99
Short Dow30 ProShares (DOG)	-3.61%	-397.54
Short S&P500 ProShares (SH)	-4.81%	-530.54
Short MC400 ProShares (MYY)	-3.89%	-429.05
Short SmallCap 600 ProShares (SBB)	-2.75%	-302.64
Short Russell 2000 ProShares (RWM)	-4.84%	-533.31
UltraShort QQQ ProShares (QID)	-3.76%	-414.47
UltraShort Dow30 ProShares (DXD)	-6.50%	-716.70
UltraShort S&P500 ProShares (SDS)	-7.74%	-852.55
UltraShort MC400 ProShares (MZZ)	-7.97%	-877.82
UltraShort SmallCap 600 ProShares (SDD)	-7.35%	-810.22
UltraShort Russell 2000 ProShares (TWM)	-10.34%	-1138.96
UltraShort Russell 1000 Value ProShares (SJF)	-11.07%	-1219.45
UltraShort Russell 1000 Growth ProShares (SFK)	-6.54%	-720.48
UltraShort Russell MidCap Value ProShares (SJL)	-6.34%	-698.72
UltraShort Russell MidCap Growth ProShares (SDK)	-6.56%	-722.50
UltraShort Russell 2000 Value ProShares (SJH)	-9.98%	-1099.54
UltraShort Russell 2000 Growth ProShares (SKK)	-7.44%	-819.96
UltraShort Basic Materials ProShares (SMN)	-12.77%	-1407.47
UltraShort Consumer Goods ProShares (SZK)	-1.20%	-132.40
UltraShort Consumer Services ProShares (SCC)	-4.40%	-485.01
UltraShort Financials ProShares (SKF)	-14.75%	-1625.05
UltraShort Health Care ProShares (RXD)	-1.47%	-162.51
UltraShort Industrials ProShares (SIJ)	-3.87%	-426.41
UltraShort Oil & Gas ProShares (DUG)	-14.61%	-1609.95
UltraShort Real Estate ProShares (SRS)	-11.82%	-1302.96
UltraShort Semiconductors ProShares (SSG)	-2.24%	-246.72
UltraShort Technology ProShares (REW)	-4.88%	-537.93
UltraShort Utilities ProShares (SDP)	-6.99%	-770.77
Short MSCI Emerging Markets ProShares (EUM)	-3.75%	-413.09
Short MSCI EAFE ProShares (EFZ)	-7.03%	-774.86
UltraShort MSCI EAFE ProShares (EFU)	-13.49%	-1486.19
UltraShort MSCI Emerging Markets ProShares (EEV)	-23.00%	-2534.53
UltraShort MSCI Japan ProShares (EWV)	-10.80%	-1190.12
UltraShort FTSE/Xinhua China 25 ProShares (FXP)	-23.89%	-2632.48
Ultra QQQ ProShares (QLD)	+3.93%	+433.31
Ultra Dow30 ProShares (DDM)	+6.70%	+738.83
Ultra S&P500 ProShares (SSO)	+6.94%	+764.97
Ultra MC400 ProShares (MVV)	+8.15%	+898.21
Ultra SmallCap 600 ProShares (SAA)	+7.56%	+833.12
Ultra Russell 2000 ProShares (UWM)	+10.92%	+1203.24
Ultra Russell 1000 Value ProShares (UVG)	+12.74%	+1403.63
Ultra Russell 1000 Growth ProShares (UKF)	+5.95%	+655.71
Ultra Russell MidCap Value ProShares (UVU)	+14.10%	+1553.42
Ultra Russell MidCap Growth ProShares (UKW)	+5.09%	+560.73
Ultra Russell 2000 Value ProShares (UVT)	+8.80%	+969.32
Ultra Russell2000 Growth ProShares (UKK)	+9.35%	+1030.03
Ultra Basic Materials ProShares (UYM)	+13.12%	+1445.59
Ultra Consumer Goods ProShares (UGE)	+0.73%	+80.68
Ultra Consumer Services ProShares (UCC)	+1.99%	+219.75
Ultra Financials ProShares (UYG)	+16.63%	+1832.71
Ultra Health Care ProShares (RXL)	+1.20%	+131.76
Ultra Industrials ProShares (UXI)	+11.02%	+1214.07
Ultra Oil & Gas ProShares (DIG)	+14.08%	+1551.61
Ultra Real Estate ProShares (URE)	+4.89%	+538.64
Ultra Semiconductors ProShares (USD)	+4.36%	+480.94
Ultra Technology ProShares (ROM)	+7.25%	+798.63
Ultra Utilities ProShares (UPW)	+5.19%	+571.75
Other ETFs
PowerShares DB Base Metals Double Short (BOM)	+6.27%	+690.87
PowerShares DB Base Metals Short (BOS)	-7.08%	-780.12
PowerShares DB Crude Oil Double Short (DTO)	-6.52%	-718.90
PowerShares DB Crude Oil Short (SZO)	-4.77%	-526.17
PowerShares DB Crude Oil Double Long (DXO)	+10.41%	+1146.61