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JPMorgan chief executive Jamie Dimon has bought 500,000 share in the bank, according to Dow Jones and CNBC.
The purchase cost around $26.5 million, according to CNBC.
JPMorgan's shares have taken a hammering through 2015 to date, falling around 15% since the turn of the year.
More to follow
Many are worried about what the hemorrhaging stock market could mean going forward for the overall economy.
But Deutsche Bank's Torsten Sløk argues that the negative wealth effect on the economy caused by investors freaking out about turbulence in the markets shouldn't be too huge because middle income consumers are feeling good.
In a recent note to clients Sløk wrote that, generally speaking, an increase in wealth has a greater impact on consumer behavior than a decline in wealth.
"Given how small the positive wealth effects have been over the past seven years then it would be a surprise if the negative wealth effects are big, in particular in a situation with consumer sentiment for middle income groups rising in January and at levels higher than in 2005 — 2006," he argued.
"Put differently, the lack of a slowdown in the broader macro data including consumer sentiment, the unemployment rate, the quits rate, job openings, hours worked, wage inflation, and jobless claims [Thursday] morning, suggests that the negative wealth effects are indeed going to be limited," he continued.
One reason why this might be the case, Sløk suggested, is that stock market wealth is concentrated among higher income households who have seen S&P 500 triple from 666 in 2009 to about 1,825 today. Sløk also points out that the Atlanta Fed currently expects consumer spending to grow by 3.0% in Q1.
This is good news.
Meanwhile, this chart provided by Sløk shows that the middle class — defined as those in the middle tercile of US incomes — is more optimistic about their future financial situations than they've been since before the Great Recession:
Still, it's also worth noting that fears about recession could be enough to damage the psyche of middle income consumers — even if their present economic and financial situation is good.
As Scott Brown, chief economist at Raymond James, wrote in a recent note to clients:
"There is concern that fear of recession could become self-fulfilling prophecy ... That is, consumers (fearful of losing their jobs) may save more and spend less, and businesses may be reluctant to commit to capital expenditures — and the economy slows."
This idea is particularly relevant given that last Friday's January jobs report was weaker than in previous months, which could theoretically influence consumers' expectations amid a declining stock market.
But then again, Americans are also quitting their jobs like crazy right now, which suggests confidence that they'll be able to find better-paying/better-benefits opportunities elsewhere.
Which brings us right back to Sløk's point.
This article was written by Julie Wilson and originally published at NewsTarget.com.
Editor’s Comment: This is outrageous. Apparently, the round up is upon us. If this report is correct, it now appears that the resolution of the occupation at the Malheur Wildlife Refuge is only a prelude, and that a major crackdown is underway to round up patriots. Cliven Bundy was arrested only a few hours ago, and now it appears they are going after everyone else who was involved. Provocateurs have now succeeded in misdirecting the patriot movement, and entrapping many well meaning patriots who did nothing but stand up to federal overreach.
While the list of 86 individuals has not been produced, it is clear enough that few, if any of them, actually committed any crime. Instead, they will be punished retroactively for supporting a situation that dared to challenge federal authority.
From a tactical standpoint, many freedom loving patriots are now being targeted as the result of escalation of a situation that was never going to end well at Malheur, appeared offensive on its face, and has resulted in a huge response by FBI and other federal authorities, the loss of one life, and a now a witch hunt for those who dared to stand up. After that, how far will they go in targeting dissenters? History shows a dark path from here.
EXCLUSIVE: FBI sting to arrest 86 Americans in massive BLM cover-up
by Julie Wilson
Nevada rancher Cliven Bundy, 74, was arrested late yesterday evening while exiting a plane at Portland International Airport on his way to Burns, Ore., a town located 30 miles south of the federally owned Malheur National Wildlife Refuge, the site of a months-long standoff between free-loving land owners and the U.S. government.
Celebrated for standing up to government land-grabs in 2014, Bundy has been charged with conspiracy to interfere with a federal officer, an allegation that reportedly stems back to his standoff with the Bureau of Land Management, which tried stripping he and his family of land-use rights they spent a century earning. The charges are identical to those filed against seven protestors (including his son Ammon Bundy) who occupied the wildlife refuge in protest of government overreach.
NewsTarget has received exclusive information that Bundy’s arrest, which was made using facial recognition technology and TSA goons, may not be isolated, but is in fact the first of many to come in an effort to silence those who obtained incriminating information about the BLM and its unlawful land grabs.
Government uses facial recognition to apprehend libertarian activists
While taking up occupancy of the Malheur National Wildlife Refuge, protestors reportedly gained access to sensitive information stored on the computers there, revealing sinister plans by the BLM to confiscate privately owned land before auctioning it off corporate interests, according a source who requested anonymity.
In an effort to suppress this information, the FBI is believed to be conducting a nationwide warrant roundup of protestors and independent journalists involved in the recent protests and standoffs against the federal government. A total of 86 people, including Bundy, are believed to be on the FBI’s roundup list and could subsequently be arrested for their “crimes.”
The war on indie journalists and citizen protesters refusing to fall in line with the government’s increasing tyrannical actions is escalating. Radio show host Pete Santilli, who merely covered the wildlife occupation as a citizen journalist, never spending a single night at the refuge, was also arrested on felony conspiratorial charges.
When asked about his role at the wildlife refuge occupation, Santilli replied: “My role is the same here that it was at the Bundy ranch. To talk about the constitutional implications of what is going on here. The Constitution cannot be negotiated.”
Constitutional law and human rights attorney John Whitehead wrote that “the government doesn’t actually believe that 50-year-old Santilli is an accomplice to any criminal activity. Read between the line and you’ll find that what the government is really accusing Santilli of is employing dangerous speech.
“As court documents indicate, the government is prosecuting Santilli solely as a reporter of information. In other words, they’re making an example of him, which is consistent with the government’s ongoing efforts to intimidate members of the media who portray the government in a less than favorable light.”
The Obama’s administrations notorious crackdown on journalists is part of a large-scale government effort to use political correctness and accusations of hate speech to silence First Amendment rights – in turn attempting to destroy citizen journalism, the only faucet of journalism that remains uncontrolled by the establishment.
Carl Icahn and John Paulson scored a big win on Thursday.
The billionaire investors got seats on the board of insurance giant AIG.
Icahn won't be on the board, but he'll have one of his firm's analysts take the seat. Paulson will have a seat.
Here's Icahn's announcement:
Today we reached an agreement with AIG whereby one of our analysts will join the board of directors at the upcoming annual meeting in May. I myself declined to go on the board because of my involvement in so many other companies at this time. AIG also entered into a separate agreement with Paulson & Co. Inc. pursuant to which President John Paulson will join the board at the same time. We welcome John Paulson's addition to the board and believe his involvement will be additive, especially in that we both have stated the same goals for AIG. We commend the board for adopting a number of our recommendations over the last few months. We continue to believe that smaller and simpler is better and look forward to working collaboratively with the board and management to help catalyze a turnaround in core P&C operations, a more transparent operating structure, and the ultimate shedding of the SIFI designation. We believe that AIG stockholders will benefit from our agreement, which permits our representative to share information with our principals and consultants, subject to customary confidentiality restrictions. I hope and believe that we will work with AIG’s board to enhance value as we have done with so many other boards and companies in the past.
In October, Icahn sent a public letter to the company's CEO, Peter Hancock, saying that the company continued "to severely underperform" and was "too big to succeed."
AIG nearly failed during the financial crisis and had to be bailed out by the US government. Icahn said the company had not done enough to make itself smaller since then.
In the letter, Icahn said that it was a "no brainer" that splitting up the company would unlock shareholder value. AIG recently rejected Icahn's call to split itself into separate businesses.
Icahn owns 42.2 million shares and Paulson 14.6 million. The stock fell $1.87, or -3.57%, on Friday to end at $50.58 per share.
Shares of online discount marketplace Groupon are jumping nearly 20% after the company reported stronger than expected earnings.
Groupon crushed estimates, reporting revenue of $917.2 million against expectations for $845.9 million.
Adjusted earnings per share was $0.04 against expectations for a breakeven quarter.
In response the stock jumped as much as 20% in after hours trading.
Shares were up about 16% near 4:45 p.m. ET.
Groupon has had a precipitous fall from grace over the past few years. Since its anticipated IPO in 2012 the stock had fallen 92% as of close Thursday.
After consistent disappointing growth and sliding profits, the company replaced its founder and CEO in November.
"Following a stronger than expected fourth quarter, we enter 2016 with a continued focus on streamlining our global operations, reducing our reliance on low margin products in our shopping business and rekindling our customer acquisition efforts to set the stage for accelerated growth," wrote CEO Rich Williams in the earnings release.
Whether this is a turnaround or a brief comeback remains to be seen.
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The Enzo Ferrari is one of the rarest most desirable hypercars in recent memory. Named after the legendary Italian sports car maker's founder, only 400 of the cars were ever built.
Although the car sold originally for around $600,000 when it debuted in 2002, values have skyrocketed in recent years.
Last year, the final Enzo ever built and owned by Pope John Paul II sold at auction for $6 million, while a rebuilt wrecked one sold for more $1.75 million earlier this month.
Which is why it was truly extraordinary when pictures of a dusty Enzo abandoned in a Dubai Police impound lot turned up on the internet back in 2012. Even more extraordinary is that the Enzo remains unclaimed, 7Days UAE reported.
The car has been in the possession of the Dubai Police since was abandoned by its British owner in 2011. Although, law enforcement in Dubai usually sell impounded vehicles after period of time in detention, this car is not for sale.
According to the publication, Interpol believes the Enzo was either stolen or purchased with stolen funds. There is also an active legal dispute over the ownership of the car in Dubai's court system.
But don't worry about the well being of this precious car. Although initial photos show the Enzo baking in the desert sun and caked in dirt, the Ferrari has since been moved to an indoor facility to prevent further damage.
That's it: Global stocks are officially in a bear market.
On Thursday, the MSCI all-country world index closed down 20% from its recent high to meet the technical definition of a bear market.
The index tracks large and mid-cap stock performance across 23 developed and 23 emerging countries, and peaked last May. It fell about 1% Thursday.
We'd note that the index had touched bear-market territory, but it has now closed down more than 20% from its peak.
Earlier today, global markets continued to sell off, with the Dow falling by as many as 400 points during the trading session. European stocks fell to the lowest level since September 2013.
The collapse into a bear market was accelerated last August and September, and then again in the first six weeks of this year. There are a whole host of reasons investors could give for freaking out and dumping stocks, including the oil crash and turbulence in China's economy.
Also, central banks worldwide spooked investors as they cut interest rates, some into negative territory, and announced more stimulus measures to boost domestic demand, indicating that pockets of the global economy are in distress.
US stocks had the worst start to a year ever in 2016 and remain in correction — a 10% drop from recent highs, with the Nasdaq less than 2% away from a bear market.
"Given the very real challenges around the world, we can probably expect more damage to the markets," wrote Brad McMillan, chief investment officer for Commonwealth Financial Network. "What we likely won’t see is continued economic damage or a U.S. economic crisis. The very factors that are battering the markets are, in large part, positive for the real economy."
"In 2008, the real economy was broken, with consumers borrowing money they did not have to buy assets they could not afford at prices that made no sense," he continued. "Today, we have jobs, savings, and rational prices in the real economy. A downward adjustment in financial values won’t change that, and that same solid foundation will eventually allow the market to recover as well."
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