The World Pivots Through Peak Peak Wealth, As Investors Passed Through Peak Dividend Investing And Peak Real Estate Investing On The Trade Lower In European Financials Trade …. A New Trust, The Trust In The Diktat Of Regional Leaders Such As The EU Finance Leaders And Angela Merkel Is Rising

Financial Market Report for Monday March 25, 2013

1) … On Monday, March 25, 2013, the world pivoted through peak wealth, as investors passed through peak dividend investing as well as peak real estate investing on the exhaustion of the world central banks’ monetary authority to stimulate global growth and trade, as well as their failure to increase corporate profitability, as well as fears of banking insolvency and nation insolvency in the EU.

Dividend investment came to an end Monday March 25, 2013, as Dividend Growth, VIG, traded -.4%, and Dividends Excluding Financials, DTN, traded -.3%. This as the high yield debt sectors Corporate Junk Bonds, HYG -.2%, Junk Bonds, JNK -.1%, and Leveraged Buyouts, PSP -.5%. Distressed Investments, FAGIX, such as those taken in by the US Federal Reserve under QE1, traded unchanged at 9.71.  Real Estate Investing came to an end as Mortgage REITS, REM, traded 3.1%, lower, Real Estate, IYR -.9%, Industrial Office Reits, FNIO, -.8%, and Global Real Estate, DRW, -.7%.

World stocks VT, traded 0.6%, lower, with Nation Investment, EFA -1.3, Small Cap Nation Investment, IFSM -1.2, the S&P 500, SPY -.4, US Shares, VTI. -.3, and the Russell 2000, IWM -.2.

World stocks, VT, are unable to leverage higher on Corporate Debt, HYG, as is seen in the ongoing Yahoo Finance chart of VT, HYG, and PICB. Corporate Credit is exhausted as a means of providing returns to investors and funding corporate buybacks. Credit Service Companies, such as Visa, V, American Express, AXP, Discover Financial Services, DFS, and Nicholas Financial, NICK, seen in this Finviz Screener, have topped out in value.

With the trade lower today in Large Cap Value, JKF, and Mid Cap Value, JKI, the S&P 500, $SPX, is a failed investment; the chart of the SPY shows it peaked on February 14, 2013

Reuters reports Wall Street slips, but off lows after Cyprus clarification.  US stocks fell on Monday but pulled off their session lows by late afternoon after the president of the Eurogroup tried to clarify his comments on the Cyprus bailout.

Reuters reports Wall Street ends lower on renewed Cyprus worries  Stocks fell on Monday on renewed concerns about the developments in Cyprus and the euro zone, which wiped away earlier gains that drove the S&P 500, SPY, to less than a point away from its record close.

Jordan Shilton and Chris Marsden of WSWS report European Union imposes bank bailout on Cyprus. The statement by Euro Group head Jeroen Dijsselbloem that the Cyprus bailout is a model for the rest of the euro zone led to falls on Europe’s financial markets.

Mike Mish Shedlock writes Merkel’s Vision: “United States of Germany. Following brutal negotiations with EU finance ministers, the IMF and various European government officials, Cyprus finally agreed to measures that her highness, Angela Merkel would accept.  This time she held her ground. Previously, Merkel compromised every key position she has ever held in the sake of political expediency. For example, Merkel went to the well twice on Greece to appease her opponents. She repeatedly caved in to demands from French president Nicolas Sarkozy. She reversed her stand on nuclear energy following German polls. So why did Merkel draw the line at Cyprus? To Merkel everything is a play to win the next election and ultimately to preserve her legacy. She is willing to play hardball now for one reason only. Public opinion is decisively against further bailouts, and anything but exceptionally harsh terms on Cyprus would hurt her election chances in September. She fears the rise of the eurosceptic Alternative for Germany (AfD) Party and the best way to take some wind out of the AfD sails is to show she cares about austerity. Merkel’s vision is not a United States of Europe. Rather, Merkel’s vision is for a “United States of Germany”.

A new trust, the trust in the diktat of  regional leaders such as the EU Finance Leaders and Angela Merkel is rising. Complete and total regional governance of the Eurozone is only a matte of time where nannycrats now state leaders will rule. Under liberallism, sovereign nation states and their leaders governed citizens; but under authoritarianism, sovereign regional leaders and sovereign regional bodies, govern residents of regional zones.

BBC reports EU President Van Rompuy and Foreign Affairs Leader Ashton to quit in 2014.

There is waiting in the wings of Europe’s Stage, a New Pharaoh, the most credible of sovereigns. Soon he will step into the limelight, and rise to power, not through schemes of Liberalism, such as carry trade investment, but rather through schemes of Authoritarianism, Daniel 8:23, such as regional framework agreements, to rule Euroland, Revelation 13:5-10.  He will be accompanied in authority and power by the EU’s Monetary Priest, who will provide the economy of diktat, where diktat serves as currency, power and wealth, Revelation 13:11-18. The Prince of the people, will one day rule the world for three and one half years, that is during the Great Tribulation, demanding emperor worship, this immediately prior to the Advent of Jesus, Daniel 9:26.  These Fierce Leaders will oversee the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, that is rising from the profligate Mediterranean nation states, to replace the Banker Regime of Democratic Nation Investment, Revelation 13:1-4.  Germans cannot be Greeks; but most assuredly they will be one, living together in a debt union and gulag of debt servitude, with the periphery profligate countries of Portugal, Italy, Ireland, Greece, and Spain, existing as hollow economic moons revolving about planet Germany.

Today’s financial market trading establishes that European banks and eurozone nations are insolvent banks and insolvent nations.

Banks traded lower included European financials, EUFN -3.3, World Banks, IXG  -1.0, and the Too Big To Fail Banks, RWW -.5.

European shares, VGK, -1.6, traded lower, as Spain, EWP -4.7, Italy, EWI -4.0, Poland, EPOL -2.4, Greece, GREK -2.1, Germany, EWG 1.8, Finland,  EFNL -1.7, Norway, NORW -1.5, and Ireland, EIRL -1.1.

Interest bearing sectors trading lower included Mortgage Reits, REM -3.1%, Global Utilities, DBU -1.7, Shipping, SEA, -1.6, World Small Cap Dividend, DLS -1.0, Real Estate, IYR -.9, Industrial and Office REITS, FNIO -.8, World Real Estate, DRW -.7, Super Dividend, SPIV -.6, Calamos Closed End Total Return, CGO, -.6, S&P Telecom, IST, -0.5, Dividend Growth, VIG, -.4, Dividend Excluding Financials, DTN -.3, Utilities, XLU -.2, Pharmaceuticals, XPH -.1.

Sectors trading lower included Solar, TAN -5.2, Wind Energy, FAN -2.6, Copper Mining, COPX -1.9, Industrial Mining, PICK -1.8, Rare Earth Mining, REMX, -1.5.

Abenomics has failed to stimulate Japanese stocks higher; Bank of Japan monetary policy has failed in its mission to stem deflation, as Japan, EWJ, and Japan Small Caps, JSC, both traded 1.0% lower. The rally in Nikkei, NKY, has ended. Look for Japanese Interest Rates to rise as bond vigilantes call interest rates higher soon; as not only Japanese Stocks, but Japanese Treasury debt trades lower in value.

A global bear market is underway, with Dow Theory support coming from Transports, IYT, trading 1.0 lower, and Industrials, IYJ, 0.8 lower; Global Industrial Producers, FXR, traded 0.5% lower.

Commodities, DBC, trading lower included Natural Gas, UNG -1.8, Lead, LD -1.8, Cotton, BAL, -.7, and Timber, CUT, -.6.

The Euro, FXE, closed -1.0, at 127.46, and the Swedish Krona, FXS, traded 0.5 lower. Action Forex, which is bullish the Euro Yen Carry Trade, EUR/JPY, shows that its chart closed lower at 121.41.

Columbia, GXG, Peru, EPU, Brazil, EWZ, South Africa, EZA, and India, INP, have been leading the Emerging Markets, EEM, lower, beginning in early January, 2013, as seen in this ongoing Yahoo Finance Chart, reflecting debt deflation, that is currency deflation, as seen in Emerging Market Bonds, EMB, and Emerging Market Currencies, CEW, trading lower. As these countries have lost monetary sovereignty, nation investment in them has decreased. These countries are increasingly becoming insolvent sovereigns. Insolvent sovereigns, and their banks are unable to provide seigniorage, that is moneyness, to stocks and treasury debt; and these are a factor in International Treasury Debt, BWX, trading lower.

Jan Strupczewski and Annika Breidthardt of Reuters report Last-minute Cyprus deal to close bank, force losses on uninsured depositors. Cyprus clinched a last-ditch deal with international lenders to shut down its second-largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro ($13 billion) bailout.

The agreement came hours before a deadline to avert a collapse of the banking system in fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund.

Swiftly endorsed by euro zone finance ministers, the plan will spare the Mediterranean island a financial meltdown by winding down the largely state-owned Popular Bank of Cyprus, also known as Laiki, and shifting deposits below 100,000 euros to the Bank of Cyprus to create a “good bank”.

Deposits above 100,000 euros in both banks, which are not guaranteed under EU law, will be frozen and used to resolve Laiki’s debts and recapitalize Bank of Cyprus through a deposit/equity conversion.

The raid on uninsured Laiki depositors is expected to raise 4.2 billion euros, Eurogroup chairman Jeroen Dijssebloem said. Laiki will effectively be shuttered, with thousands of job losses. Officials said senior bondholders in Laiki would be wiped out and those in Bank of Cyprus would have to make a contribution.

An EU spokesman said no across-the-board levy or tax would be imposed on deposits in Cypriot banks, although the hit on large account holders in the two biggest banks is likely to be far greater than initially planned. A first attempt at a deal last week collapsed when the Cypriot parliament rejected a proposed levy on all deposits.

Cyprus government spokesman Christos Stylianides said: “We averted a disorderly bankruptcy which would have led to an exit of Cyprus from the euro zone with unforeseeable consequences.”

German Finance Minister Wolfgang Schaeuble said Cypriot lawmakers would not need to vote on the new scheme, since they had already enacted a law setting procedures for bank resolution.

“It can’t be done without a bail-in in both banks. This is bitter for Cyprus, but we now have the result that the (German) government always stood up for,”

Lefteris Christoforou, vice-chairman of the ruling Democratic Rally party, said it was important that Cyprus had avoided a chaotic bankruptcy.

A senior source in the Brussels talks said Anastasiades threatened to resign at one stage on Sunday if he was pushed too far. He left EU headquarters without making any comment.

Diplomats said the president had fought hard to preserve the country’s business model as an offshore financial centre drawing huge sums from wealthy Russians and Britons but had lost.

The EU and IMF required that Cyprus raise 5.8 billion euros from its banking sector towards its own financial rescue in return for 10 billion euros in international loans. The head of the EU rescue fund said Cyprus should receive the first emergency funds in May.

IMF chief Christine Lagarde said the agreement was “a comprehensive and credible plan” that addresses the core problem of the banking system. “This agreement provides the basis for restoring trust in the banking system, which is key to supporting growth,” she said in a statement.

French Finance Minister Pierre Moscovici rejected charges that the EU had brought Cypriots to their knees, saying it was the island’s offshore business model that had failed. “To all those who say that we are strangling an entire people. Cyprus is a casino economy that was on the brink of bankruptcy,” he said. The euro gained against the dollar on the news in early Asian trading.

The abandoned plan for a levy on bank deposits had unsettled investors since it represented an unprecedented step in Europe’s handling of a debt crisis that has spread from Greece to Ireland, Portugal, Spain and Italy.

Cyprus’s banking sector, with assets eight times the size of the economy, has been crippled by exposure to Greece, where private bondholders suffered a 75 percent “haircut” last year. On Tuesday, the 56-seat parliament had rejected a levy on depositors, big and small. Finance Minister Michael Sarris then spent three fruitless days in Moscow trying to win help from Russia, whose citizens and companies have billions of euros at stake in Cypriot banks. On Friday, lawmakers voted to nationalize pension funds and split failing lenders into good and bad banks – the measure to be applied to Laiki. The plan to tap pension funds was shelved due to German opposition, a Cypriot official said.

The tottering banks held 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros – enormous sums for an island of 1.1 million people that could never sustain such a big financial system on its own.

Rebecca Christie, James G. Neuger & Svenja O’Donnell of Bloomberg report Cyprus said to reach tentative deal to avert default Cyprus agreed to the outlines of an international bailout, paving the way for 10 billion euros ($13 billion) of emergency loans and eliminating the threat of default

The euro rose after the provisional agreement was struck that would make Cyprus the fifth country to tap a rescue since the euro debt crisis broke out in Greece in 2009. The European currency rose 0.3 percent to $1.3025 at 3:40 a.m. Brussels time. Stocks in Asia gained, with the MSCI Asia Pacific Index climbed 0.7 percent. The Nikkei 225 added 1.3 percent.

The agreement calls for Cyprus Popular Bank Pcl (CPB) to be shut down and split. The Bank of Cyprus Plc would take over the viable assets of the failed bank along with 9 billion euros in central bank-provided emergency liquidity aid, according to three EU officials who asked not to be named because talks are ongoing.

Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.

Bloated by investments from Russia, Cypriot banks have assets equal to 750 percent of the country’s gross domestic product, more than double the euro-zone average, the European Commission says. Russian companies and individuals have an estimated $31 billion in Cyprus, according to Moody’s Investors Service. All the contradictions of the crisis management came together over Cyprus, with name-calling between northern and southern Europe, tensions between unelected central bankers and elected politicians, and the disconnect between slow-moving policy makers and lightning-fast markets.

Reuters reports Fed’s easy money policy benefits world economy, Bernanke says.  Federal Reserve Chairman Ben Bernanke spoke defended the central bank’s aggressive easing of monetary policy.

Bloomberg reports Japan 10-Year Bond Yield Falls to 2003 Low on Easing Bets. Japan’s bonds rose, sending 10-year and 20-year yields to the lowest in almost a decade, amid speculation Bank of Japan (8301) Governor Haruhiko Kuroda will use parliament testimony tomorrow to outline new easing steps. The extra yield investors demand to hold 10-year bonds instead of 3-year notes narrowed to the least since June 2003 on prospects the BOJ will buy longer-dated securities. At his inaugural press conference as BOJ chief last week, Kuroda reiterated a pledge to achieve a 2 percent price target. The 30-year yield dropped to a 2 1/2-year low.

“There are expectations in the market that the BOJ will eventually buy super long bonds in additional easing,” said Satoshi Yamada, a Tokyo-based manager of debt trading at Okasan Asset Management Co., which manages the equivalent of $12 billion. “Japan’s bond yields are falling despite stock gains globally and losses in bonds overseas.”

The yield on the benchmark 10-year note touched 0.55 percent, the lowest since June 2003, before trading unchanged at 0.555 percent as of 3:30 p.m. in Tokyo, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker. The all-time low for the 10-year rate is 0.43 percent, also reached in June 2003.

The 20-year rate fell 4 1/2 basis points, or 0.045 percentage point, to 1.44 percent, after earlier touching 1.43 percent, the least since July 2003. Yields on 30-year bonds dropped six basis point to 1.55 percent, a level unseen since August 2010.

Kuroda will appear in parliament tomorrow to speak about monetary policy. He said on March 21 he was confident that“decisive monetary easing” would lead to 2 percent inflation, adding that the nation’s biggest task is to end deflation.

The BOJ currently buys government bonds with maturities of up to three years through its 76 trillion-yen ($802 billion) asset-purchase program

2) … A note on psychopaths. My experience from living in the inner city, is that there three types of these predators. One, the bear, who has paws, on which he stands his ground, and is loud and menacing, with which he uses to rummage through smelly and rotten stuff.  And two, the lion, who has a mane, that is preeminence, and often uses these to charm, and a mouth filled with teeth that bite, rip and tear his opponents apart, and spends his time being a busybody in his territory.  And three, the leopard, having a coat of camouflage, he operates by stealth in the shadows, and literally pounces on his prey, taking them by surprise up into the trees, where he crushes and devours his catch. The Beast Regime of Revelation 13:1-4, which is replacing the Milton Friedman Banking Regime, has characteristics of all three of these animals; God has designed it to be an invincible predator.

Abuse Sanctuary Blog relates April Wilkinson writes Psychologist explains the psyche of psychopaths. Dr. Sue Stone is a clinical psychologist at the Citizen Potawatomi Nation in Shawnee, a position she’s held since January. Although her work here is in general psychology and therapy, her specialty area is psychopathy, and she came from three years’ work at the Department of Corrections, doing criminal court evaluations, consulting on capital murder cases and more.

There are people functioning in society who exhibit various degrees of psychopathic behavior in their daily lives, she said. That makes the term psychopath a relative one, but there are definite characteristics of such people, Stone said.

Psychopaths demonstrate antisocial behavior and an aggressive narcissism, they use people through charm, intimidation or violence, she said.

“They have a parasitic lifestyle, they live off people. Their whole mindset is domination over other people,” she said. “Psychopaths are not necessarily criminal in their activities, but they are attracted to positions of power. They have no anxiety about their behavior.

“Psychopaths see themselves as wronged. They can be paranoid, feel persecuted, feel a need for revenge. They harbor a lot of persecutory beliefs.” (i.e. – They are the victim, not you, in their heads)

There also is a lot of thrill-seeking with psychopathic behavior, Stone said. Over time, there will be an escalation of their behavior because they’ve gotten sensitized to a certain act, but then have to “up the ante” to capture the thrill they seek, she said.

“Psychopaths have a need for recognition, not just a need for attention,” she said. “They have a sense of being invincible, of ‘I can outsmart you.’ They’re taken in by their own narcissism. It’s almost like a game.”

[Sociopaths] often take “souvenirs” from their victims — pictures, jewelry, lock of hair, to remind them later, Stone said. “They want to keep that image, the fantasy of that control going,” she said. (I add they often carry voice recorders to record conversations and cell phones to take pictures).

A psychopathic individual can be a chameleon and learn to act a certain way. That advances their opportunity to engage in certain behaviors because who would suspect?”

Psychopaths also differ in that their intellectual and emotional understanding of things don’t match. Stone said psychologist Robert Hare has a saying for this condition: Psychopaths know the words but don’t know the music when it comes to emotions. “They know intellectually what it is to be sad, but their empathy and regard for other people is not there,” Stone said. “They can mimic the feeling, but they really can’t put words to how they feel because they don’t have that internal experience.”

There is no known treatment for psychopaths; rather, behavior management is the course of action, Stone said. Psychopaths don’t say, “I need help” because they see others as the cause of their problems; they don’t have anxiety to prohibit their behavior, she said. And studies have shown that group therapy not only doesn’t work for psychopaths, it makes their behavior worse, Stone said. They use the therapy setting as practice for manipulating people.

I relate that there is a resolution process of dealing with psychopaths; it involves marking and turning away, as well as withdrawing, as presented in the bible in Romans 16:17, and 2 Thessalonians 3:2-6. Christians practice biblical separation daily; it is a tenet of sound christian doctrine: there are four aspects of Biblical separation: political (separation of church and state), personal (separation from sin), ecclesiastical (separation from false teaching), and practical (separation from others who walk disorderly).

3) … In the news

BBC reports Exiled Russian tycoon Boris Berezovsky, profiled on NNDB, has been found dead at his home outside London. A police investigation has been launched into the death of the 67-year-old – a wanted man in Russia, and an opponent of President Vladimir Putin. A former Kremlin power-broker whose fortunes declined under Mr Putin, Mr Berezovsky emigrated to the UK in 2000.Thames Valley Police said the death, at a property in Ascot, Berkshire, was being treated as unexplained.


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