MONDAY 4/7/14; Market Selling Continues

Aussie house prices are up almost 11% over the last year creating increased concern over a housing bubble. The major cities see larger price increases and at the same time Australia’s household debt is at record highs. Voting in India elections begins and will continue in nine stages over the next five weeks. India’s elections end 5/12/14 and results will be announced by 5/16/14. India is the largest democracy in the world with over 815 million voters. Money is flooding into India sending the BSE to record highs. IFN, the India ETF, gains nearly +30% over the last two months. India’s GDP is below 5%, at 4.5% to 4.9%, for the last couple years. India’s Sun Pharma buys Ranbaxy for $3.2 billion. Ranbaxy has continuing quality concerns so perhaps Sun can right the ship. Dollar/rupee 60.2138.

[Text is Redacted: Purchase April 2014-04 to Read the Complete Chronology]

The Fed provides banks two more years time to meet the Volcker Rule requirements. Five years after the financial crisis and US regulators and banks cannot yet fully provide a plan to prevent another crisis. If banks must meet the requirements now, they will have to sell bad paper that will result in billions in losses. Banks now receive a free pass until July 2017. There are two sets of rules in America; one for the banks and one for everyone else. The Fed takes care of the banks above the common people since Fed members receive lucrative rewards when they leave government after doing the banks bidding. Previous Fed Chairman Bernanke now receives a quarter of a million dollars for a 45 minute speech. The banks and wealthy 1% gladly repay Bernanke for his easy money policies that made them richer.