I came across this story from 2002 online the other day and though I'd share it with the group. It peaked an interest in me so I did some research and I was frankly shocked at what I discovered.
First the article itself.
To Work and Die in Juarez
Early last fall, authorities in the gray-brown factory city of Ciudad Juarez, across the Rio Grande from El Paso, Texas, were prepared to declare a triumph. For nine months, no women's bodies had been found dumped in a field or ditch or along the side of a road. Officials were ready to say that Ciudad Juarez's eight-year series of rape-murders was finally over.
And so Mexico's fourth-largest city retains its nickname as "the capital of murdered women." The city of 1.5 million, where an acrid haze of factory smoke and car exhaust hangs in the air, is known for having one of the highest crime rates in Mexico; in 2001 alone, drug traffickers were blamed for more than 60 execution-style murders. But Juarez is most notorious as a place that draws tens of thousands of young women from small, poor towns to take $55-a-week jobs in assembly plants, known as maquiladoras, operated by some of the wealthiest corporations in the world -- companies like General Electric, Alcoa, and DuPont. More than 60 percent of maquiladora workers are women and girls, many as young as 13 or 14.
As I said I was shocked, I had no idea this kind of injustice was going on not only right in our own backyard, but it is largely a result of American business.
It got me thinking, about the huge injustices we have imparted upon our southern neighbor. My position on the ongoing "War on Drugs" should be well known by now, and here we have American companies not only abandoning the workers of their home country, but taking rank advantage of the foreign workers they now employ in their international manufacturing centers. Many of these very same companies actively rig the tax system to their own benefit.
How have we abandoned the moral responsibility we once wore so well. Can we ever, as a people get it back?
This is pretty dynamite stuff. A group of Nokia shareholders is planning an attempted coup at the May 3rd general meeting. They want to start by firing Elop and his henchmen, then reframe the Microsoft tie-up as a tactical play for the U.S. market, then put the company fully behind MeeGo as their bid for the smartphone future.
ReplyDeleteThe Smartphone Wars: Nokia shareholders revolt!
Hey Thor, definitely no love for Microsoft:p
From my POV, Microsoft may still have one last appeal for speculators:it may prove one of the greatest shorts in techs in coming years.
ReplyDeleteAs for the timing, I'm clueless, maybe the fundamentals can tell something about it.
Maybe I'll be back in time to take a last ride with the old tired dinosaur, while it walks its way out.
Morning all - everyone enjoying our little bounce? ;-)
ReplyDeleteQuite the little pump this morning.
ReplyDelete@Emmanuel,
ReplyDeleteCheck out FXI, above 50dma, could be H&S.
ICan
Canadian bank shares are up and way up today. RBC up over 6% on earnings and dividend news. There was a some talk that banks will increase dividends, but I didn't pay attention.
ReplyDeleteICan
Correction ovah? Looks that way to me. Wow, this is one tough market to navigate.
ReplyDeleteManny - this is a pretty big bounce isn't it? And not on hugely positive news. The unemployment picture has been improving for awhile now. I thought we'd get a bigger correction, of course one big bounce day does not a corrections end make. . .
ReplyDelete@Jeff,
ReplyDelete"ECb drops April hike hint",(marketwatch.com) and Eur/Usd is up, at 1.3936.
ICan
Oil price surge not a recovery killer
ReplyDeleteSAN FRANCISCO (MarketWatch) — The sudden surge in oil prices in response to turmoil in Northern Africa and the Middle East has shocked the stock market out of its winter carnival, but a new, oil-led bear market is not on the horizon.
After three straight months of gains, the market was looking for an excuse to rest, and a jump in oil above $100 a barrel and then $102 a barrel on Wednesday seemed just the thing to rattle some nerves. Gold’s recent move to all-time highs didn’t help.
Probably a good time to cover the nflx short, if anyone put in on.
ReplyDeleteGood morning everyone. Looks like they turned the buy programs back on.
ReplyDeleteEach pullback has become shallower and shorter.
Lots of this morning is short covering, we'll see how far this rally can go.
ReplyDeleteEven Gold and Silver are down!
ReplyDeleteOil is down just a bit.
ReplyDeleteThor,
ReplyDeleteThe dirty side of globalization and profits at any cost is the way of the future. We all have heard the horror stories coming out of third world work houses.
@Denise: Survival of the "fittest" (and "criminalist") uber alles.
ReplyDeleteAre we headed towards urban decay again in many cities? Many are already there, of course.
ReplyDeletehttp://www.nytimes.com/2011/03/06/magazine/06Muni-t.html?_r=1&hp
I'm left speechless by the cognitive dissonance that continues in this country. Or outright narccisstic, ignorance, idiocy, fraudulence and hypocrisy.
ReplyDeletehttp://www.nakedcapitalism.com/2011/03/even-tea-party-members-do-not-support-cutting-social-security.html
Thor – Coming from the area I did, I was able to hear first hand some of the conditions of life in Mexico. I have seen groups of 10-12 people living in a house and in conditions we would find disgusting. Americans take things like running water, toilets and electricity for granted. Yet many of the Mexicans who enter our country (either legally or ill-legally) raise their standard of living just by crossing the boarder.
ReplyDeleteThe young women of Ciudad Juarez (And all over Mexico) are willing to take $60 a week jobs, but I am sure most do not have clean water to drink, decent food to eat or a safe place to sleep at night. They are ripe for those who want to take advantage of them.
It is truly appalling that major U.S. Companies are the ones leading the way in abuse, yet they are the first to try and blame the “bad” people of Mexico, for the conditions people are forced to live in. Yet they have done nothing to help raise the standard of living for any of these people and in fact taken away more from them then just the dream of a better life
And it is these same corporations that have moved jobs once held by Americans out of this country and in so doing have helped to lower if not destroy the standard of living of Americans too.
I am appalled, dis-heartened and saddened by what goes on not only south of the U.S.A. but corporate American has done here too, but I am not shocked.
Mutt
@Jeff(11:15)
ReplyDeleteFrom the businessinsider.com,
"These are the controversial satellite photos that set off protests in Bahrain and caused the government to ban Google Earth".
http://www.businessinsider.com/bahrain-google-earth-2011-3
Narccisstism, fraud, outright looting of the public treasury.
And they continue to insist it's their right. Like Ghadaffi says, " I am one of you".
ICan
No kidding, I Can. And Ghaddafi (or is it Qaddaffi, there's like a million ways to spell his name) now also jumping on the blame Al Quaida (another one with a million spellings) game. It would be truly comical if not downright tragic.
ReplyDeleteI continue to find it truly appalling that the mantra of "we must never raise taxes" on anyone (even those that can easily deal with that "hardship") to address our problems continues to hold. Time for big, powerful companies and people to do their share of "sacrificing" for the community. Once the community is broke and the little guy done for, the ire will be directed at these powerful players next. Mark it down. It's coming but may take a while. Aside from the usual suspects of minorities, women and gays, there will be nobody left at that point at which to direct the public's ire.
ReplyDeleteMeanwhile, another record in food stamps. "Recovery" rolls onward.
ReplyDeletehttp://www.zerohedge.com/article/charles-ponzi-day-we-celebrate-another-all-time-record-food-stamp-usage
@Manny,
ReplyDelete"Keep your government hands off of my social security"!
These people are so fucking brainwashed that they don't understand that they are the targets of the budget cuts. Government spending = evil liberal plot, Fox News told me so, it must be true!
Contributing to their own demise. It's sad, tragic, and pathetic, but wouldn't bother me THAT much if it didn't likely adversely affect just about everyone else, myself included.
ReplyDeleteWhat I find most disturbing, and is something we've covered here quite a bit - is our new Fascist meme' that business knows best how to both grow the economy, and take care of the countries growth. If we would just unburden these companies from all of these burdensome regulations we'd have economic growth as far as the eye can see.
ReplyDeleteI find this both disturbing and depressing. We have current and real world examples of exactly how these companies behave when they don't have a boot on their neck to make sure they do the right thing. The argument that's put forth by the fringe right and their brown-shirts in the Tea Party is that these companies are leaving the US because of our tight labor laws and massive regulatory environment. So the solution, according to this line of thought, is to basically turn the US into Mexico and China when it comes to human rights, worker rights, and environmental laws.
Talk about Stockholm Syndrome taken to an extreme. If you want to shut the Tea Party down, send them all to these third world countries to spend a week working in one of these factories and living in the homes that these people live in.
ICan, you could also pull up satellites of the Hamptons. Pretty much the same thing going on here.
ReplyDeleteManny,
ReplyDeleteListening to the pundits yesterday bemoaning the rich pay packages of teachers, describing their benefits (health insurance, pension, not social security) as "golden", referring to them as spoiled and selfish was about to send me over the edge. The guy was glowingly describing the overly generous $75k a year total pay and benefits as if it were a billion dollars.
Yet, somehow those hard working bankers can't make it on $10 million a year. We can't take away their bonuses! They might leave the bank! The horror of it!
This is how it all falls apart again, albeit likely in very slow, grinding fashion. The powerful and uber-wealthy fail to care about their communities enough to fund things to keep it together mainly because their only "community" in reality is with each other (other elites and powerful) around the world. In reality, they don't really care about their community at home and country in the U.S. It's all about them. This is how/why third world poverty exists. There's more than enough wealth in this country to keep cities and communities from falling apart if only we cared enough to do something about it. People had better start getting their own private security systems AND people to guard their private estates, just like they do in third world countries because that's where this is all headed. Shameful.
ReplyDeleteGREAT point, greg. Spot on.
ReplyDeleteLike I said Denise, it would be downright COMICAL if it didn't affect us all in some way. Someone should do a musical theater production on it. I could see some real potential in that being hilarious in a dark sort of way. It's truly unbelievable. I truly believe we're living in the midst of the decline of the U.S. empire.
ReplyDeleteManny - re - urban decay. I don't know about other cities, but we continue to gentrify big chunks of LA. Hollywood for sure, I've been surprised at how much the gentrification has continued since the economy tanked. Cheaper to live in Hollywood than many of the surrounding neighborhoods and the transit in the area is very handy, the subway runs right through the middle of Hollywood on it's way downtown.
ReplyDeleteDowntown itself is still experiencing a big revival. Watching it is pretty much exactly like what we saw in San Francisco starting 20 years ago. A few big ticket redevelopment projects, LA Live, The Marriott, Staples, and now a new stadium, combined with the dozen or so big mass transit projects that all feed into Union Station (where the high speed rail will also go) has got people moving back into downtown in droves. All the old buildings are being converted into lofts.
Who knows how far it will go, but I read quite a bit about people in LA wanting to live closer in to where things are as opposed to way out in the suburbs where you have to drive (and then sit in traffic) so much.
@Thor: Maybe the decay won't happen in rich cities like NYC, LA, Boston, and DC, but other smaller, less rich cities around the country?
ReplyDeleteThat's already happening. See Detroit and other smaller, declining cities. 60 students a class? Wow. Idiocracy reigns supreme.
ReplyDeleteAnd the suburbs (and exurbs). We have some suburbs here that have basically replaced some of the inner city poverty-stricken areas because, like you said, many people want to live in the city or very close, which pushes out the poor further outside of the city in various surburban areas.
ReplyDeleteManny,
ReplyDeleteThe Broke Town article by the great Roger Lowenstein is one of the best that I have read on that subject. Thanks!
But, hey, the invisible hand will continue to take care of things for the middle class just like it has since 1973:
ReplyDeletehttp://www.zerohedge.com/article/shadowstats-john-williams-explains-why-its-all-been-downhill-1973
I have theory that this is a big driver in the breakdown of communities, which creates a disconnect among one's neighbors and often a meanness with other in terms of public discourse. It's all a battle of survival with each other.
ReplyDeleteManny - that's a really good point . . certain cities are renewed, while others languish and die like Detroit.
ReplyDeleteI also sometimes console myself with the hope that this will be our last leg up before a final collapse and then real reform. Wishful thinking, I know.
ReplyDeleteI-Man - does this 180 point move do anything to your calculations?
ReplyDeleteManny - almost forgot - some of this gentrification is madness, for instance; putting back all the street car lines that were town out 60 years ago. They're talking about putting the streetcars (similar to the one's they have in SF now if you've been there in the last 15 years or so) back in. LA used to have the best streetcar system in the country, now all we have left is the worst TRAFFIC in the country. Idiotic short term thinking - we have the auto companies to thank for that as well.
ReplyDeleteHrmmm maybe Karma for Detroit?
Thor,
ReplyDeleteIt was not just the auto companies, it was the tire companies as well.
We used to have a street car system here in the Twin Cities as well, and a really good one a very long time ago. Got replaced when the highway system was built, I believe. Have one light rail line now that does very well and are planning to build others despite objections from the usual suspects.
ReplyDeleteThor,
ReplyDeleteI have never bought into the "final solution" crash band wagon as history tells us that drastic change does not occur this way. Especially in a country as large, wealthy and diverse as ours.
Your other scenario is most apt, some population areas do well, others are on life support. Life goes on. People leave the blight and decay and go where the jobs are. It is the history of the rust belt.
Look at NYC, it was written off in the 70's as a great wasteland, bankrupt, crime ridden, and now look at it.
The four "ticking time bombs" by Paul Farrel at Marketwatch:
ReplyDeletehttp://www.zerohedge.com/article/paul-farrell-4-bombs-would-ignite-wall-street-revolution
Paul Farrel is always so over the top!
ReplyDeleteTrue Denise, but I think that eventually one or more of those could come to pass. Could take a while though. A slow motion grind downward for the many.
ReplyDelete@Dss
ReplyDeleteYour point about pullbacks being smaller is well-taken.
I was looking at Stockcharts $SPXA50 over the last couple of years, using the 3LB tool, and it seems to lead the pullbacks by some period of time. For the pullback we are in, it is almost as deep as the pullback that happened Oct/end to Thanksgiving, but in that case, the SPY went from 122.72 down to 117.99 (around 4%, not a huge pullback, but a pullback nevertheless) but this pullback went from 134.69 to 129.70 or 3.8%.
This week it seems the $SPXA50 is higher, but not enough to turn-around the 3LB chart.
Not that I am trying to predict a "bottom" of this pullback, but it seems the 3LB measurement of the number of stocks above their 50 DMA has stopped falling, and has started to turn around. This week it's up, but not enough for the 3LB to show a turnaround.
I've tried to look at the TICK and TRIN, but haven't been able to make sense of these because of the signal/noise ratio.
But looking at the $SPXA50 internals, it seems that the bottom is in, and I'm full of bull. Again.
I'm wondering why the pullbacks seem so tiny. I'm wondering if the plunger team is hard at work to forestall any significant pullbacks.
Anyway, Rock's prediction is that the bottom of this pullback is in, and we're starting back on our up up and away market again.
I'd appreciate thoughts on why these pullbacks are so small. I talked to an old friend who's been a trader since the 60's, and he's quite surprised the pullbacks are so small as well.
The effects of the Bernank Put, Rock? Personally, I don't think we should dismiss this at all, even though I know many don't believe it has much, if any, real effect on the market.
ReplyDeleteRock,
ReplyDeleteI don't use the trin as a predictor of anything. It shows the buying and selling pressure but has been numerically distorted by stocks like C. So intraday I would look at direction of the trin not the trin numbers by themselves.
I do not use the 3lb as I find the tools I have work well and do not see a need to add something else. Less is more. When I do use the 3lb it is for confirming a trend, but I seldom use it.
Rock - My totally unscientific opinion on why the pullbacks are so small lately is QE and QE2, as well as the implicit understanding in the investment and trading community that the government is holding a floor under the market with all this money pouring forth.
ReplyDeleteReading some of the NY Times comments to that article makes my head want to explode. Here's one. He's "irked" by his fellow citizen who has a $200K pension but what about being "irked" by other more egregious causes of the mess we're in? Are people simply incapable of connnecting the dots or is it just easier to go after each other than the real causes?
ReplyDeleteTim BSeattleMarch 3rd, 201112:03 pmWhen I first started reading this article, it felt like some strange doomsday scenario in a sci fi novel. If a business was poorly run, and eventually its debts exceeded income, it would go bankrupt. Ultimately, I see the same for many of these troubled municipalities, unless something substantive is done immediately.
To read of a man retiring with a $200,000 pension irks me. I imagine he'll also have social security, though he would have to pay some time on that. Excesses like that will have to be addressed.
Short term, the internals showed that there were divergences at the bottom yesterday; i.e., tick did not make a new low, advancing issues did not make a new low, and up volume did not make a new low.
ReplyDeleteThe shallow pullbacks are indications of lack of selling, institutions are not selling, they are buying the dip. This is confirmed by the divergences in the internals, buying was occuring, not selling. This market is totally institutionally driven and their foot prints cannot be hidden if you know what to look for.
Denise & All, I must say it's fascinating to both watch, and learn, how each of you trades.I'm starting to get a real feel for how each trader works. . . I guess spending so much time with a group of people will have that affect.
ReplyDeleteThank you all, even though I'm not an active trader, I've learned a HUGE amount from the traders here!
Great point, Denise. I also see that in some of the individual stocks that I'm watching. It seems the dips are indeed being bought from an institutional level. I really don't think retail is still participating that much but if they do, then we could see this thing go much higher than anyone expects, which of course, means the eventual fall will likely be catastrophic again, mostly for the retail investor, AGAIN.
ReplyDeleteAnyone know if there's a source to check where 401K money is being invested each month? Does anyone track that?
ReplyDeleteRock,
ReplyDeleteI prefer to make the market prove itself one way or another, up, down, or sideways, one day at a time, then one week at a time, and so on.
So, until the market breaks out to new highs, I would consider it consolidating, the longer the period of consolidation the more likely that the trend continues.
When the market is breaking down from a short term top, it usually puts together three or more big down days. We have not seen that yet.
Still not a lot of fear out there that I can see.
What's an investor to do? Lose buying power to inflation or take risk?
ReplyDeleteThat's what Bernanke wants people to do. JBTFD!
Not only BB, but JCB, ECB, the BRICs, the Middle East will also have to print!
ICan
Manny,
ReplyDeleteInstitutional money is also retail money. Few people buy individual stocks anymore, they buy mutual funds or ETF's, if they are smart. So if 100 retail guys want to buy the market they do so through their Fidelity or Schwab account, buying Vanguard's funds, for example. I will have to see if I can find the stat on individuals that actually buy individual stocks anymore. It is quite small compared to the olden days.
Great article on inflation from PragCap. I struggle with attentional bias myself a lot of the time, especially times like these.
ReplyDeleteSTICKY PRICES VS FLEXIBLE PRICES
There are multiple problems when debates over inflation and deflation break out. The primary problem is that humans tend to be extreme in their beliefs. There is too often no room for middle ground. For instance, I am often taken out of context as a deflationist even though I maintained for the entirety of 2010 that we were likely to suffer disinflation and then earlier this year forecast low levels of inflation in 2011. Nonetheless, because I reject the notion of hyperinflation or even high inflation I am pegged as the extreme opposite – a deflationist. This extremism results in losing sight of the highest probability outcomes (which is likely to be neither deflation nor hyperinflation). It’s great to have conviction in a belief, but it must be tempered by reality and probability.
In addition, humans tend to have very short memories resulting in attentional biases. In the case of inflation we tend to focus on what has happened only just recently as opposed to what has happened around us over the course of several months or years. For most of us, this involves seeing gasoline signs, stock prices, gold prices or other noticeable prices. These biases combine to lead most of us to constantly fret about near-term price changes in highly visible prices. Gasoline prices are rising in the last few months so it must mean that we are on the verge of hyperinflation, right? Not so fast.
So far we have a trend day up, grinding upward all day. There is some resistance at the 1332.00 ES level, 3 points away, and we are only 13 or so points from the high of 2/18.
ReplyDeleteWhen trying to assess the market's structure I usually use a 60 minute chart that spans one month.
ReplyDeleteLooking at the ES chart we can see that the lows of 2/24 were not taken out, which is inherently very short term bullish.
Ticks have not made new lows since 2/22, and didn't make new lows on 2/24 when the index made a new low. This is also short term bullish.
We're above the Feb 28th high now as well.
ReplyDeleteRe Manny, 12:25PM:Aside from the usual suspects of minorities, women and gays, there will be nobody left at that point at which to direct the public's ire.
ReplyDeleteAs discussed here quite often, hard times are coming for the vast majority of Western citizens. Hard to see and end to the widening of inequalities. Those who have a say in this won't let go of anything, and will keep feeding the weapon of massive job destruction that we call globalization ever further.
Not that it is comforting, but at least, as you state, there will be some justice in the choice of the targets.
What these leaders discard, is that, just like a stock overreacts after an overextended market move, so will people's ire be overviolent, once they can take no more and come back to hit them.
Thor, any happier with the bounce in Apple today? : )
ReplyDeleteWolfie - well said!
ReplyDeleteGreg - 8 bucks? oh yes :-)
ReplyDeleteRock said:Anyway, Rock's prediction is that the bottom of this pullback is in, and we're starting back on our up up and away market again.
ReplyDeleteHate to hear things like that... :'( We'll know very soon if that was just another buy the freeging deeps opportunity..
@Rock:Also, interesting question about pullbacks seeming unusually small these days. Seems like this feeling is being shared by many then, including some very experienced traders. I'll take it for granted then (no time to do my homework and check by myself:p)
ReplyDeleteAs to the why this market behaviour happens at that point in time vs another time.. I'll pass, but good question :s
Good evening, have fun watching trees grow to the sky;)
ReplyDeletePS:
screw Gkquaddafi, you dirty bastard.
Thor (1:39) and different peoples trading styles
ReplyDeleteThis is mine - Pick a stock - Loss money - Pick a stock and do research on it - Loss more money - Try and study market reactions THEN pick a stock - Still lose money.
If nothing else my style is consistant :p
Actually it is not that bad, but I still have a lot more to learn before I can quite my day job and hang out with Rock and Denise on their yates :)
Mutt
This is CLASSIC. Whatever happend to "the will of the people?" LOL. I guess it depends on what one means by "which people" and whose "will".
ReplyDeletehttp://www.huffingtonpost.com/2011/03/03/deficit-public-sentiment_n_830986.html
Some key passages:
ReplyDelete"The public, by contrast, would do it primarily by cutting defense spending and imposing significantly higher and more progressive taxes on the rich -- while at the same time dramatically increasing spending in such areas as job training, higher education and humanitarian aid.
In other words, the public takes a considerably more humane view of spending than either party, is considerably less beholden to the military-industrial complex, and doesn't seem to care if the super-rich get a bit offended.
Given the goal of cutting the deficit, the average Americans did the job -- cutting it way more deeply, in fact, than either the Democratic or Republican proposals call for.
Ironically, the political subgroup that did the worst job was the slice of respondents who identified themselves as Tea Party sympathizers. They were the least likely to raise taxes and also the least likely, when faced with actual programs, to make cuts."
Manny . . so what this would imply is that the Tea Partiers are primarily just angry at "something" and want "change"? Not surprised.
ReplyDelete"What happens if there is no QE3, David Rosenberg responds".
ReplyDeletehttP;//www.zerohedge.com/article/what-happens-if-there-is-no-qe3-david-rosenberg-responds
Whatever happens in delfation.
Btw, this is second time posting this comment. I don't know what happended to the earlier one.
ICan
ICan . . It's stuck in SPAM . . . want me to release or delete?
ReplyDelete@Thor,
ReplyDeletePlease delete.
ICan
Done!
ReplyDeleteFadel Gheit, a voice of reason, an oil analyst I respect. Listened to him since the oil run-up of 2008. A managing director(oil analyst) at Oppenheimer & Co.
ReplyDeleteYahoo tech-ticker has two videos today.
He thinks some sort of democratic change is also coming to Saudi Arabia.
"The root cause of the Middle East unrest is inequality, decades of autocratic rule, and the vast majority of wealth of the oil producing countries is in the hands of a small privileged few...80% of the wealth is in the hands of the 20%.."
Also, in another video he says he does not believe oil will go to $200 soon.
ICan
Yet another drag on housing prices?
ReplyDeletehttp://www.nytimes.com/2011/03/04/business/04housing.html?hp