KTFA

BACKDOC: THUNDER,  THIS IS HOW THEY WILL EVENTUALLY GET THE STOCK PRICES TO RECOVER SOME AFTER THE GREAT REPRICING. (see article below)
THERE WILL BE SIGNIFICANT BUSINESS CONTRACTION AND MASSIVE LAYOFFS WHICH HAVE ALREADY BEGUN.
WHEN COMPANIES BUY BACK THEIR STOCK IT REDUCES THEIR DEBT AND ALLOWS FOR A HIGHER STOCK PRICE. DOC  IMO
Mountainman:  Don’t HOLD Your BREATH here Boys…….This Strategy of buying Back Ones Stocks to Keep Confidence and Spare CORPORATE Losses in the Future has Not worked So well…….
Waiting on this MARKET to BOUNCE Back is going to be A While, for We Haven’t Even TRANSITIONED Over to the New Asset Valued REALITY Yet…….UPS and DOWNS are the New MANTRA for Now…..IMO
Blessings,Mountainman  (8)=New Beginnings…….for A STEEP CLIMB……
Thunderhawk:   Backdoc Alert
Companies are planning to spend $600 billion on this losing strategy
Companies are planning to devote billions to buying back their own stock this year, even though the strategy seems to be losing its bite.
Statements accompanying first-quarter earnings indicate corporations are preparing to buy a total of $600 billion in their own shares, according to Goldman Sachs calculations.
That comes after a year in which S&P 500 buybacks amounted to $572.2 billion, which itself was a 3,3 percent increase from 2014 and part of a trend that has seen repurchases amount to more than $2.7 trillion since 2010, data from S&P Dow Jones Indices show.
Buybacks slowed in the first part of the year, with TrimTabs reporting a 35 percent decline over 2015. However, that’s not likely to last as companies struggle to find the best way to spend cash. S&P 500 companies have nearly $1.5 trillion in cash on their balance sheets.
“The main thing that determines that is whether they see their markets pop or not,” said Jim Paulsen, chief market strategist at Wells Capital Management. “One of the things we really haven’t had in this recovery is getting all the economic boats moving north at the same time.”
With the lack of sustained economic growth, companies have turned to buybacks and dividends to pick up the slack. However, the effectiveness of returning cash directly to shareholders doesn’t have the same pop it once had.
Where buybacks had helped fuel the S&P 500’s meteoric rise and the second longest bull market in history, the market has been volatile but flat over the past year or so. Moreover, companies that have been the biggest movers in buybacks have underperformed significantly.
The PowerShares BuyBack Achievers Portfolio exchange-traded fund tracks companies that have bought back at least 5 percent of their shares over the past 12 months.
The ETF is down about 0.7 percent in 2016 and off 8.4 percent over the past year. The fund’s biggest holdings include McDonald’s, Boeing, Qualcomm, Lowes and Mondelez. A big name missing from the top holdings is Apple, which has buyback plans totaling $175 billion for a stock that is down 13.2 percent year to date and 27.5 percent over the past year.
Yet the buyback and dividend trend continues as companies remain reluctant to hire and invest in equipment and as the deal climate cools after a blistering 2015. Mergers and acquisitions activity plunged 25 percent in the first quarter, with much of the steam taken out by the collapse of multiple big-ticket deals, the most recent being the $6 billion Staples-Office Depot marriage.
“If we do get a synchronized bounce in growth, I think you’ll start to see these buybacks reduced as companies start to see other uses for their cash,” Paulsen said.
Indeed, the inability of stocks to break out has made buybacks a value play as much as anything else as companies find it hard to buy growth. Should the market jump higher, that could serve as an incentive to invest elsewhere.
“You’ve got to see a market that makes sense to expand operations in,” Paulsen said. “If you think this is a pause [in the stock market] it’s hard to beat that return. There is no capital investment that’s going to give you that this year.”
http://www.cnbc.com/2016/05/13/s-and-p-500-ompanies-are-planning-to-spend-600-billion-on-share-buybacks.html
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Mountainman:   NOTE…..The ONLY “Income Inequality” is Those Who Purposely CHOKE OUT the Life of Average Americans to Earn A Decent Living…..and The MAIN PROBLEM w/ this Scenario Comes Back to EXTREME TAXATION and OVER REGULATION w/Rules so EGREGIOUS It PULLS the MONEY Out of SOCIETY before It Ever Gets STARTED…..this Narrative is Grossly Exaggerated and as One is Affected it Rolls Down Hill to the Next Group as Well…..IMO
Blessings,Mountainman  (8)=New Beginnings……for A True Chance for{ALL} Classes
Thunderhawk:  US Income Gap Widening, Middle Class Vanishing, Economic Growth Threatened
As wealthy Americans see their income surge, middle and lower class household incomes are seeing a drastic decline.
A new study by the Pew Research Center found that middle and lower class households brought in significantly less income in 2014 than they did in 1999, and observes that the middle class is being pushed out of 90% of the urban areas across the nation.
Researchers determined that, across the country, the share of adults living in middle-income households fell in 203 of the 229 US metropolitan statistical areas.
“With relatively fewer Americans in the middle-income tier, the economic tiers above and below have grown in significance over time,” the report stated. “The share of adults in upper-income households increased in 172 of the 229 metropolitan areas, even as the share of adults in lower-income households rose in 160 metropolitan areas from 2000 to 2014.”
Growth was experienced in 108 of the areas, in both the lower and upper income tiers, while the middle class in those areas declined.
“The current and future status of the American middle class continues to be a central issue in the 2016 presidential campaign. Moreover, new economic research suggests that a struggling middle class could be holding back the potential for future economic growth. The national trend is clear—the middle class is losing ground as a share of the population, and its share of aggregate US household income is also declining,” the report reads.
With fewer people in the middle tier, the gap between rich and poor is widening and, for the first time in 40 years, the middle class is no longer the majority in America.
“You can’t say this is a very positive change,” Rakesh Kochhar, associate director of the Pew Research Center, told the Los Angeles Times. “[T]his movement reflects more inequality in income and can be a hindrance to economic growth.”
http://www.ooyuz.com/geturl?aid=11616470
Mountainman:  LOOK for More VOLATILITY In the MARKETS as Next Week
JACK LEW and Other G7 Countries meet in Japan to Discuss their Strategies in How and When they Adjust their Currencies…..The Implication is it CENTERS Around DEVALUATION Strategies…..
Blessings,Mountainman   (8)=New Beginnings…..for…..STRATEGY
Thunderhawk:  Backdoc Alert
This is what’s lurking under the quiet market
Even though markets are trading in a narrow range, traders are fixated on a potentially important level in the S&P 500.
“The major indices — SPX, OEX, INDU, RTY — are testing their 50-day moving averages, which sometimes act as support, so today’s action will be telling,” BTIG Chief Technical Strategist Katie Stockton said in a morning note Friday.
U.S. stocks traded narrowly mixed Friday morning, wrapping up a volatile week that saw the Dow’s worst day since February and its best day since March. While disappointing retailer earnings renewed concerns about U.S. economic growth, traders said the existence of many crosscurrents in the market puts greater focus on technical levels.
The S&P 500 briefly dipped below its 50-day moving average in intraday trade Thursday but did not close below that level. The index was hovering just above its 50-day of 2,055.01 in morning trade Friday.
Lance Roberts, chief investment strategist at Clarity Financial, said if the S&P 500 falls below its 50-day moving average it will test the 200-day moving average around 2,012 and, if it falls below that, the index will test the lows of last year.  Read more at:
http://www.cnbc.com/2016/05/13/traders-watching-dow-sp-50-day-moving-average.html
Mountainman: Yes the Infamous and Not So Desire to be FAMOUS……BREXIT……In the {TRANSITION} of Countries and their Respective Values there has to be Major Economies that Will Go DOWN and Likewise……Others will Go UP……it’s A Give And Take Scenario…..
With that being said,IMO…..It has to be this Way as EMERGING Countries like INDONESIA,VIETNAM, and Others RISE from their  OPPRESSED/SUPPRESSED Economies Resulting from the US DOLLAR and Other Factors Over the Years…..
Now, it Will Allow Most Countries to Thrive As they Should Be……Unfortunately there is Those like the UK who will Take A Hit on the Downside and Later Will Rise Up as The MARKETS and TRADE Begin to Cycle thru the Changes GLOBALLY…..IMO
Blessings,Mountainman  (8)=New Beginnings……for A (SERIES) of GROWING PAINS
Thunderhawk:  Brexit hit to UK would be from “pretty bad to very, very bad”
The International Monetary Fund (IMF) does not predict that anything positive will arise from the United Kingdom potentially leaving the European Union through a so-called Brexit, IMF Managing Director Christine Lagarde said Friday.
Speaking before journalists at the UK Treasury, Lagarde said IMF had looked at a wide range of opinions and worked out several scenarios for a Brexit.
“And frankly in the very vast majority of what we’ve seen we haven’t seen anything that is positive. It’s always been on the negative side. Consequences will vary,” Lagarde said, adding that the impact on the British economy could range from “pretty bad to very, very bad.”
On June 23, the United Kingdom will vote on whether to remain part of the European Union. Supporters of UK exit from the bloc argue that EU membership has eroded Britain’s independence to legislate, direct its economy and control its borders. Opponents warn that leaving the European Union could deeply harm the country’s economy.
Earlier this month, IMF European Department Deputy Director Mahmood Pradhan said that a UK exit from the European Union had been identified as a risk factor for the EU economy and would disrupt trade and financial services.
http://www.ooyuz.com/geturl?aid=11607873
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BACKDOC:  HERE WE GO.  IMO,
LIKE I SAID COUNTRIES ARE GOING TO BE VERY HUNGRY FOR NEW REVENUE. THEY WILL LOOK FOR FRAUD AND ABUSE AND WILL RESORT TO INCREASING TAXES ON THE RICH AND CORPORATIONS.
AFTER ALL OF THAT THEY WILL BE FORCED TO GO WHERE IT WILL GET NASTY, ENTITLEMENTS.  THATS WHERE THE RUBBER WILL MEET THE ROAD.
I SUSPECT SOCIAL DISRUPTION WILL BE POSSIBLE WHEN SOME OF THOSE ARE REDUCED OR REMOVED.
THE EASY THINGS WILL BE OBAMACARE AND OTHER BIG SPENDING ISSUES. TIME WILL TELL.  IMO
Thunderhawk:   Global plan to recover stolen assets
A global plan to help recover stolen assets has been announced. The Global Forum for Asset Recovery will bring together governments and law enforcement agencies to discuss returning assets to Nigeria, Ukraine, Sri Lanka and Tunisia.
The meeting will be held in the US next year, co-hosted with the UK, and supported by the UN and the World Bank, BBC reported.
David Cameron made the announcement at a global anti-corruption summit in London on Thursday.
It was being hailed as the first of its kind, bringing together governments, business and other organizations.  Read more at:
http://iran-daily.com/News/151255.html
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Mountainman:  Now You Know (WHEN) the WB is Willing Ready and Able to Help Your Country w/It’s Infrastructure Loans and other Local Needs……..You are in a GOOD PLACE w/Your Economy…..for Loans have to be paid back….Right…???….or They take It Back by OTHER MEANS……You Know {WHAT} I Mean……Yikes…..IMO
Blessings,Mountainman  (8)=New Beginnings…..for WB’S HELP for VIETNAM
Thunderhawk:   WB supports Vietnam’s competitiveness with US$150 million loan
The World Bank’s Board of Executive Directors on May 12 approved a US$150 million loan to the government of Vietnam for the Third Economic Management and Competitiveness development policy operation.
The loan is providing flexible budget support to the Government while reinforcing selected structural reform priorities in the government’s Socio-Economic Development Plan.
The operation supports a program of concrete policy reforms across three pillars contributing to the government’s efforts to:
(i) Maintain macroeconomic stability. Strengthening financial sector governance and fiscal management, including policies for non-performing loans and promoting the restructuring of banks, and debt and treasury management;
(ii) Create a more transparent, efficient and accountable public sector. Strengthening public administration, state-owned enterprise management and public investment management for more transparency and improved regulatory environment; and
(iii) Improve the business environment. Reducing administrative burdens and strengthening tax and procurement policies, including streamlined administrative procedures.
Read more at:  http://english.vov.vn/economy/wb-supports-vietnams-competitiveness-with-us150-million-loan-319653.vov
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Mountainman:  Unfortunately as the OIL DRAMA Continues…..Many Oil Companies have LOST so Much that they Couldn’t Hang On any Longer…..thus In this New Reality…..MANY Companies will be Squeezed Out and Be Bought Up by the Bigger OIL Companies…..
Perhaps this was A Calculated Strategy as OIL was shall We say….LEVERAGED for FUTURE Objectives…..IMO…..Hmmm
Blessings,Mountainman  (8)=New Beginnings……for the SQUEEZING of OIL……SQUISH…..
Thunderhawk:  US energy bankruptcy wave surges despite recovering oil prices
Exco has reported a loss for the last five quarters in a row. It has a number of big-name board members including billionaire investor Wilbur Ross and executive chairman John Wilder, who engineered the giant leveraged buyout of TXU.
Valued at about $495 million as of Thursday’s stock market close, Exco had long-term debt of $1.32 billion on March 31, according to a regulatory filing.
One probable outcome, as Exco said on Friday, may include getting rid of debt by having debtholders become shareholders, possibly wiping out existing equity owners.
Penn Virginia’s strategy is similar. “Once the restructuring is implemented, the Company will have substantially less debt and a much stronger balance sheet,” Penn Virginia’s Chairman and interim CEO Edward Cloues said in a statement.
http://www.cnbc.com/2016/05/13/us-energy-bankruptcy-wave-surges-despite-recovering-oil-prices.html
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Thunderhawk:  Ex-Argentine leader Fernandez indicted in central bank case
Reuters/Marcos Brindicci
Former Argentine President Cristina Fernandez was indicted on Friday over accusations that she oversaw irregularities in the central bank’s sale of U.S. dollars in the futures market while she was in office.
Federal Judge Claudio Bonadio charged Fernandez, her former economy minister Axel Kicillof and former central bank chief Alejandro Vanoli with “unfaithful administration to the detriment of public administration,” according to court papers.
The ruling, which gives a green light for prosecutors to put Fernandez on trial, may be appealed. There was no arrest warrant.
The accusation is that the central bank took billions of dollars worth of money-losing positions in the futures market ahead of a widely expected devaluation of the Argentine peso.
Fernandez, who heads a large faction of the Peronist party, stepped down in December at the end of her second term.
Her successor, Mauricio Macri, won the presidency on a platform of ditching currency controls that he said were strangling the economy. Since lifting the controls in mid-December the peso has weakened by about 30 percent to 14.1575 per U.S. dollar. ARS=RASL
The transactions referred to in the case involved $5 billion to $17 billion, according to court papers published by Argentina’s Judicial Information Center (CIJ).
“It’s impossible to believe that a financial operation of this size … could have been carried out without the approval of the highest executive level of the national government,” the ruling said.
Fernandez is revered by millions for the generous welfare programs she offered while in office and reviled by others for economic policies such as nationalizing businesses and placing heavy-handed controls on the economy.
“The indictment was not unexpected, but politically, it creates noise,” said Ignacio Labaqui, who analyses Argentina for emerging markets consultancy Medley Global Advisors. “Peronism is going through a leadership crisis and this could make the divisions within the party more acute.”
The indictment of Fernandez came a day after the president of neighboring Brazil, Dilma Rousseff, was suspended from office by the Senate while she is tried on charges of breaking budget rules.
http://www.reuters.com/article/us-argentina-fernandez-idUSKCN0Y42L2
Mountainman:  One thing so far that has Surfaced in this GLOBAL BANKING shake Up is a Need for HONESTY and TRANSPARENCY……
Well Deutschebank has their Work Cut Out for them……Will they SURVIVE their FINANCIAL Debts though???…..That Remains to be Seen……..LOOK Out Below……this Won’t Be the Only BANK to take A DIVE to Try and Stay ALIVE as this New Reality Opens The DOORS of SKELETONS in the CLOSETS of BANKS…….IMO
Blessings,Mountainman   (8)=New Beginnings…….to CLEAN Out The SKELETONS
Thunderhawk:  For Deutsche Bank’s Cryan, profit can wait
“You would hide trades, say the profit was from something else, manipulate pricing to disguise where it came from, all so you didn’t have to give up the idea to the boss,” Taylor said.
Deutsche declined to comment.
Cryan has taken a tough approach to bad behavior. His influence has already been noticed by staff. Arrogance and disrespectful behavior had become barriers to promotion, said one employee.
“We changed the people,” said Cryan. “We changed the incentives. We summarily dismissed people who did something wrong and told people about it. There was a glasnost at the bank.”
http://www.reuters.com/article/us-deutschebank-cryan-insight-idUSKCN0Y40GK