Hello, Dallas! Here We Come!

NASDAQ CONSIDERING MOVE TO TEXAS?

NASDAQ CONSIDERING MOVE TO TEXAS?

November 18, 2020 By Joseph P. Farrell

So many people sent me versions of this story it would be impossible to thank each individually, but the numbers of people who did so clearly indicate that our “Gizars” are still on top of their game. Indeed, I am blogging about this story because it has my suspicion meter in the red zone. Here’s a version shared by M.G.:

https://www.ksat.com/news/texas/2020/11/10/wall-street-moving-to-big-d-nasdaq-other-stock-exchanges-consider-relocating-to-texas/

What’s the story? Basically the NASDAQ stock exchange is considering pulling up stakes, and leaving its New Jersey/New York home, and heading for Texas, Dallas to be specific. And NASDAQ isn’t the only exchange considering such a move. There are rumors that the NYSE itself might consider a move to Texas.

From the article:

Officials from Nasdaq and other major stock exchanges will meet with Gov. Greg Abbott on Nov. 20 in Austin to discuss a possible move from New Jersey to Texas, nbcdfw.com and the Dallas Morning News reported.

The meeting comes on the heels of the exchanges threatening to move their trading platforms out of New Jersey, the report said.

Abbott and other Texas officials plan to boast the state’s business-friendly environment during the meeting.

“Texas continues to be the premier economic destination in the country, attracting more leading businesses than any other state,” spokeswoman Renae Eze said in a statement to The Dallas Morning News. “The governor looks forward to meeting with Nasdaq and showcasing Texas’ business-friendly environment, skilled workforce, robust infrastructure, and low taxes, all of which foster greater economic growth in the Lone Star State.”

According to The Dallas Morning News, Abbott’s office has been talking with Nasdaq and other exchanges about moving their data centers to Dallas because of a potential tax on financial transactions in New Jersey. (Emphases added)

Now this article, one might have noted, is a bit peculiar in several respects. For one thing, it mentions – twice – “NASDAQ and other exchanges,” the clear implication being the NYSE itself. But that’s only one of what might be “other exchanges.” We’ll get back to that in a moment. Then there is a second peculiarity in that the article specially mentions that what is being moved are the “trading platforms” and “data centers”. I strongly suspect that the language here is meant to be reassuring to the low information news consumer, because the language implies that the actual exchange floors themselves – you know, that image we have in our minds of people on the floors of those exchanges shouting bids at each other and waving papers around. They’re just moving the data centers and not the actual exchanges themselves.

Except in the modern world of dark pools and algorithmic trading, to move the data center so far away from the actual trading floor is a big clue, because in the dark pool world of quants and algorithmic trading, moving the data center is moving the trading floor, at least, the virtual one. And whatever may be left of real humans on the real trading floor shouting buy and sell orders at each other won’t be far behind. THe reason? Because in the world of algorithmic trading, trading/data centers need to be as close to “the action” as possible, because trades are executed in nanoseconds. The farther the distance – even at the speed of light – the greater the risk that certain trades won’t go through in time.

Which brings me back to “the other exchanges.” The article, I suspect, has already given us the “public spin version” of the reasons for the move: higher taxes. But I suspect the deeper reason is the insanity of the political culture in the “blue states”, and their increasing fiscal unsoundness and lack of stability. It’s difficult – even in a dark pool – for traders manning the phone banks and computers to execute trades by following arrows on the floor, wearing masks, and “social distancing” (which Abbot will have to explain too). One needs sane environments in which to conduct market activities. So one wonders if “other exchanges” means that commodities exchanges – like in Chicago, another “blue” city with a mayor competing with DiBlasio for the nuttiest mayor of the year award – might be looking at Texas as well.

Which brings me to my high octane speculation of the day, for I do not for a moment think that this is just happenstance. All the mentioned “reasons” in the article seem to be to be a bit contrived. After all, New York and New Jersey have had high taxes for years if not decades. So what has changed? For one thing, the political and cultural climate. For another, the financial one. Texas is a producing state. It produces things: crops, cattle, horses, technologies, rockets, airplanes, cement… New York produces, hmmm… well, crops, horses, some technology, and things like that. But it’s biggest product is “financial paper”, or what I call “crapitalism.” And it’s produced a lot of that. And it also produces lots of taxes. So if one is entertaining the idea of a financial reset, or even a “coming split” in the country, one wants to be “where the action is,” and that’s not New York or California, it’s Texas.

And while we’re talking about splits and financial resets, Texas has something else New York doesn’t, and that thing makes me wonder if we’re looking at the public face of plans – detailed plans – that were set in motion some time ago…:

Texas has a state bullion depository. And isn’t it funny how they’re all of a sudden talking about crypto-“currencies” “backed” by gold…

All New York has is the Federal Reserve… which tends to lose massive amounts of gold on occasion. Just ask Hjalmar Schacht…

It’s much easier to re-hypothecate and otherwise lose gold if one is dealing in currencies that aren’t really currencies…

See you on the flip side…

from:    https://gizadeathstar.com/2020/11/nasdaq-considering-move-to-texas/

Some Articles, Some Considerations

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TIDBITS: THIS WEEK’S HONORABLE MENTIONS (AND PLANSCAMDEMIC WRAP …

August 15, 2020 By Joseph P. Farrell

As I promised earlier this week, most(but not all)  of this week’s honorable mentions concern the planscamdemic. I’ve tried to gather the most informative, and in some cases most helpful, articles on how to fight the medical technocratic tyranny. My thanks to all the following:

https://www.washingtonexaminer.com/opinion/hydroxychloroquine-works-in-high-risk-patients-and-saying-otherwise-is-dangerous

https://www.newsweek.com/key-defeating-covid-19-already-exists-we-need-start-using-it-opinion-1519535

https://www.bloomberg.com/features/2020-moderna-biontech-covid-shot/?fbclid=IwAR3ZqCet1BF60ilUG96cv6leHVizrLakdflzhsFZlPInAXw358Pd00a1Q88

https://freebeacon.com/coronavirus/meet-the-mom-challenging-newsoms-school-shutdowns/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7192087/

https://www.rt.com/russia/497671-putin-covid-19-vaccine-first/

https://www.deccanherald.com/science-and-environment/people-were-immune-to-covid-19-before-it-existed-study-871274.html

And if you still think there’s no financial aspect to the planscamdemic, think again:

https://www.zerohedge.com/political/bitcoin-hating-fed-president-urges-stricter-lockdown-save-lives-save-economy

https://www.theglobeandmail.com/opinion/article-its-time-for-a-massive-reset-of-capitalism/

https://www.christianpost.com/news/satanic-temple-abortion-religious-ritual-claims-it-provides-spiritual-comfort-to-women.html

https://www.zerohedge.com/geopolitical/germany-suffers-biggest-jump-covid-19-case-may-poland-imposes-new-restrictions-live?utm_campaign=&utm_content=ZeroHedge%3A+The+Durden+Dispatch&utm_medium=email&utm_source=zh_newsletter

https://www.targetliberty.com/2020/08/mask-mandate-repealed-in-orange-county.html

https://www.bostonglobe.com/2020/07/25/nation/bipartisan-group-secretly-gathered-game-out-contested-trump-biden-election-it-wasnt-pretty/

from:    https://gizadeathstar.com/2020/08/tidbits-this-weeks-honorable-mentions-and-planscamdemic-wrap-up/

Mr. Fed, Where are You Going?

David Stockman: The Biggest Threat To Your Prosperity And What You Can Do

Authored by David Stockman via Doug Casey’s International Man,

If you want to understand America’s dangerously deepening travails, you have to start at the Federal Reserve’s Eccles Building…

After a 30-year rolling coup d’etat, its occupants have imposed a regime of destructive falsification on America’s financial, economic, political, and social life.

It has become the heart of mushrooming darkness taking prosperity, liberty, and democracy down for the count.

How do we get 50 million unemployed… the stock market at record highs… companies trashing their balance sheets to buy back stock and do vastly overpriced M&A deals… doctors and politicians savaging the economy and the livelihoods of millions… and Washington going incontinent on the fiscal front?

The answer is simple:

the rapidly-spreading dysfunction is rooted in the giant financial fraud embedded in the Federal Reserve’s $7 trillion balance sheet.

The latter is blissfully taken for granted by the politicians and C-suites of corporate America and desperately insisted upon by the unhinged gamblers of Wall Street.

Even if you believe that a regular infusion of money is needed to catalyze the wheels of capitalist growth (we don’t), there is absolutely no economic logic that says the central bank’s balance sheet should grow by orders of magnitude faster than GDP over an extended period of time.

If the robustly growing GDP of 1987 needed $5 of central bank money per $100 of GDP, there is no reason why that ratio should have differed in 2008 or 2020.

But it did and does.

In June 1987, the nominal GDP was $4.8 trillion, and by all current estimates, it clocked in at $19.4 trillion in June 2020. That’s a 4.1X expansion over 33 years.

In contrast, the Federal Reserve’s balance sheet stood at about $240 billion on the eve of Greenspan’s arrival at the Eccles Building in August 1987 and clocked in at $7.2 trillion at the end of Q2 2020. That’s a 30X gain.

Since the early 2000s and the dotcom crash, it has only gotten far worse. The chart below of the Fed’s balance sheet and GDP is indexed to 100 as of January 2003. It tells you all you need to know.

During the past 17 years, the Fed’s balance sheet (purple line) has risen to 983% of its starting value, even as GDP (red line) has risen to only 192%.

What was fostered in the vast area between the two lines above was excess liquidity, debt, speculation, and malinvestment. This was accompanied by a complete breakdown of financial discipline in all sectors of American society.

These long-term growth factors are not even in the same zip code or planet—and the massive excess of the Federal Reserve’s balance sheet versus GDP did not happen like a tree falling silently in an empty forest.

On the contrary, it turned the financial and economic world upside down. That’s because the effect was to systematically suppress the cost of debt and speculation and drastically inflate the value of financial assets. As a result, everyone got false price signals and changed their behavior accordingly:

  • Wall Street investors became leveraged speculators;
  • Corporate business builders become financial engineers;
  • Middle-class households became debt slaves living hand-to-mouth on borrowed money; and
  • Washington’s politicians became free lunch spendthrifts piling on public debt like there was no tomorrow.

The Fed is now a rogue institution that comprises a clear and present danger to the future of prosperity and liberty in America.

The tragedy is that the clueless speculators on Wall Street, and the politicians of Washington who are riding the most egregiously inflated financial bubble ever, don’t even get the joke.

So what happens next?

We’d say nothing very pleasant.

*  *  *

The truth is, we’re on the cusp of a economic crisis that could eclipse anything we’ve seen before. And most people won’t be prepared for what’s coming. That’s exactly why bestselling author Doug Casey and his team just released a free report with all the details on how to survive an economic collapse. Click here to download the PDF now.

from:    https://www.zerohedge.com/markets/david-stockman-biggest-threat-your-prosperity-and-what-you-can-do?utm_campaign=&utm_content=ZeroHedge%3A+The+Durden+Dispatch&utm_medium=email&utm_source=zh_newsletter

Nasdaq — Going Down….

What In The World Is Happening To The Nasdaq?

Michael Snyder
Activist Post

All of a sudden, the Nasdaq is absolutely tanking. On Monday, it fell more than 1 percent after dropping 3.6 percent on Thursday and Friday combined. At this point, the Nasdaq is off to the worst start to a year that we have seen since 2008, and we all remember what happened back then. So why is this happening? In recent years, the Nasdaq has been ground zero for “dotcom bubble 2.0”. The hottest stocks in the entire world are on the Nasdaq – we are talking about stocks like Yahoo, Netflix, Apple, Tesla, Google and Facebook.

Those stocks have gone to absolutely incredible heights, but now they are starting to fall. Some are blaming insider selling, and without a doubt the “smart money” is starting to flee the stock market. Just check out this chart. Others are blaming low expectations for first-quarter earnings or the tapering of quantitative easing by the Federal Reserve. But whatever is causing this decline, it is starting to get alarming. The Nasdaq just experienced its largest three day fall since November 2011.

No stock can resist gravity forever. What goes up must eventually come down. This is especially true for stock prices that become grotesquely distorted.
On Wall Street, a price to earnings ratio of 20 to 25 is usually considered fairly normal. In recent years, the price to earnings ratios for many of these “hot tech stocks” have gone way, way beyond that. For example, posted below is a screen capture from Bloomberg TV that was featured in a recent Zero Hedge article

There is no way in the world that such valuations are justified.

We have been living in another dotcom bubble, and it was inevitable that it was going to burst at some point.

The following is how one financial industry insider described the carnage that we have seen on the Nasdaq over the past few days…

Gary Kaltbaum, president of money-management firm Kaltbaum Capital Management, describes the carnage of once high-flying “growth” names in the Nasdaq composite, that have come crashing down to earth: “The best we can describe what we have been recently seeing in ‘growth-land’ is a 50-car pileup,” Kaltbaum told clients in a morning research note. “Call them what you want … risk areas, growth stocks, froth areas … they are melting away.”

And of course it isn’t just the Nasdaq that has been seeing declines over the past few days. On Monday, some of the biggest names on the Dow also fell precipitiously

Visa, Goldman Sachs and Boeing are among the biggest drags on the Dow Monday, falling 2.1%, 2.9% and 1.4% respectively. Weakness in these stocks is especially problematic since the Dow gives greatest weight to the stocks with the highest per-share prices. And at $203.41, $158.56 and $125.59 respectively, Visa, Goldman and Boeing are the stocks that really matter to the measure.

And the trouble in these stocks isn’t just today. So far this year, Visa is down 8.7%, Goldman is off 10.5% and Boeing is down 8.0%.

This recent decline has many analysts groping for answers.

Some believe that it is simply a “rotation” as investors leave growth stocks that have become overvalued and move into safer, more traditional stocks.

Others are pointing their fingers at the Federal Reserve

Peter Boockvar, chief market strategist at Lindsey Group, believes it’s all about the Fed. “I’m still amazed at the complacency with the Fed taper, and a lot of people still don’t think it’s a big deal,” he said. “I just don’t think it’s a coincidence that the high-fliers are getting popped when the Fed is half way done with QE. We’ve got tightening smack in front of your face with the taper.”

In fact, some believe that the really big stock market decline will happen later this year when the Fed starts to wrap up quantitative easing completely

Once the Fed begins to truly reduce its massive bond buying program later this year, markets could see a quarter of their value wiped off the books, a private equity pro told CNBC on Friday.

Jay Jordan, founder of the Jordan Company, issued the dire warning during an interview on CNBC’s “Squawk Box,” saying a 25 percent drop could extend to all asset classes. He blames the monetary policies of former Fed chair Ben Bernanke for artificially inflating asset prices through super-low interest rates.

Yet others point to the fact that we are now moving into earnings season, and it is being projected that corporate earnings will come in at very poor levels. In fact, it is being estimated that overall earnings for companies in the S&P 500 for the first quarter will be down 1.2 percent.

So what should we expect to see next?

Whether it happens this month or not, at some point a massive stock market correction is coming. In recent years, the financial markets have become completely and totally divorced from economic reality, and that is a state of affairs that cannot last indefinitely.

Many have compared the current state of affairs to 2008, but to me what is happening right now is eerily reminiscent of 2007. The Dow soared to record heights quite a few times that year, but there were constant rumblings of economic trouble in the background. Stocks began to drop steadily late in the year, and 2008 ultimately turned out to be an utter bloodbath.

I believe that what is happening right now is setting the stage for another financial bloodbath. I truly believe that we will look back on this two-year time period and regard it as a major “turning point” for America.

And as I have written about previously, we are in far worse shape as a nation than we were back in 2008. We have far more debt, the “too big to fail banks” have a much larger share of the banking industry, the derivatives bubble has gotten completely and totally out of control, and our overall economy is far weaker than it was back then.

In other words, we are now even more vulnerable. When the next great financial crisis strikes us, it is going to be absolutely crippling.

Now is not the time to get complacent.

Now is the time to get prepared, because time is running out.

This article first appeared here at the Economic Collapse Blog. Michael Snyder is a writer, speaker and activist who writes and edits his own blogs The American Dream and Economic Collapse Blog.

from:    http://www.activistpost.com/2014/04/what-in-world-is-happening-to-nasdaq.html