Today’s Call: JPMorgan to fall. Currently $40.48.
Rationale: News today that JPMorgan is being sued by the federal regulators on behalf of the NCUA regarding securities losses at corporate credit unions which failed at the height of the financial crisis. While $840 million is pocket change to JPMorgan, the resulting hit to their image as well as their loss of the Medicare payment processing business are recent indicators that even they are vulnerable to populist retaliation.
Result of Call for June 15, 2011: Euro to rise vs US Dollar. Was $1.44397:1€., Currently $1.43001:1€. Bad Call.
Calls to Date: Good Calls: 29, Bad Calls: 24, Batting .547
Key Indicators for Monday, June 20, 2011
Copper Price per Lb: $4.09
Oil Price per Barrel: $93.26 A FAILURE TO INFLATE
Corn Price per Bushel: $7.00 MONETARY POLICY IS NOT WORKING
10 Yr US Treasury Bond: 2.96%
FED Target Rate: 0.10% FED IN PERMANENT DESPERATION MODE
Gold Price Per Ounce: $1,540 BENEFITING FROM PERMANENT UNCERTAINTY
MINT Perceived Target Rate*: 2.25%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.2%
Dow Jones Industrial Average: 12,080
M1 Monetary Base: $1,927,300,000,000 RED ALERT!!!
M2 Monetary Base: $9,015,500,000,000 YIKES!!!
*See FED Perceived Economic Effect Rate Chart at bottom of blog. This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy. This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.