Next Week: FOMC Minutes, IIP, Google, Chase and Infosys

The Dog wags the tail on Wall Street. The amazzing dog frowns at Police at NY

Angel Merkel and Sarkozy met and spoke in their natives, it seems that both speak but nothing was Heard. It seems the impasse continuous. The Active downgrade Banks continued from rating agencies. This does not make things great. The Belgium seems to be next show to fall.

In India, at 1100 hrs ' Telecom Policy' is to be declared and the 2G Hearing on Dr Swamy's appeal resumes. The Weekend news that Reliance Capital to market Insurance Arm to Nippon may auger well for the Stock
The Result season is flagged off with Infosys in this week and On Tuesday, I.I.P nos may reveal some more about Economic data. The Banking data showed continuance of good banking data as lending remained at 19.2% and Deposits increased marginally. How ever the weekend bond auction saw some ugly results of hardening of Yield.

In US, Tuesdays FOMC Minutes may reveal some more ailing economic indicators and may decide the need for QE 3. Alcoa result to honk on Tuesday and Wednesday factory orders are drivers. Thursday, JP Morgan and Google to be the game changers, While Retail Sales may show some respite , Fridays, Consumer Confidence, and Imp-Exp prices to set tone on Dollar Index. The Hurricanes will have Blow there Wings in the middle of the week and bloom on closure of the week.

Euro Zone Head Leaders to congregate for another Talkathon.

Expecting some Harsh news in the chaos at the week End

US (Im)Balanced budget: Political Strangle and Economic Suffocation

The US Debt raise and Balanced Budget is likely to be Political Strangle Hold on the Washington and is expected to remain  an financial Traction and Suffocation to the ailing Economy. The Debt Deal prescriptions may starve the Economy and Inject a traction, which is Likely to act more of Noose, than a rope.

Alan Greenspan, in his recent interviews had rightly hinted the impasse and predicated a vary Late Awakening by political class of the impending reality. Washington news is churning all sorts of formulations.
The victory to neither and both republicans, democrats hints that,
         Bush Tax Cuts not extended.
1) The Bush Tax Cuts will vanish in thin air, replaced by a ' Cumbersome formula ' paving a larger   opaqueness. The Back Door Taxing will impinge the Corporates. 
                                                                                          The Shallow Expenditure Cuts:                                                                                                                                                                                                          

2) The Governmental expenditure will be Trimmed by an extent, which may appear too little, and unsustainable. The wafer thin margin of errors and provisioning for extremities will endure to uncertainty towards real fulcrum of the deal squabble.
         Absence of Long Term Plan                                                                                                                             
3)  The Lack of Long Term Plan and Uncertainty will invite the Rating Agencies to recur the down grading of US Sovereign Debt Sooner, than expected.
        Inverted yield Curve:
4)  The Rise in Borrowing shall, hence forth will accompanied by ' Rising Yields'. The Short Term End of the Yield curve may Rise, faster than the Long Term. This will make the 'Yield Curve' Inverted for the Medium Term.
                               Balancing Of Budget is delayed :
5)  The ' Unresolved Remainder Budget' will be maintained by the US Government, for now and shall nag, the Investors like 'a wagging tail'. The State Budgets discrepancies may surface
                               Continued Political Bickering.
6)  The redundant imbalance now is likely to taken to the each state and Common Citizens. This unresolved issues may be 'political menu' for the upcoming Election.  US will be seeing much too, turbulent times than is being seen, today and Polarisation may spurt in the coming months
                               Wall Street Response
     However , Wall Street and International Equity Bourses likely to celebrate the ' Relief Rally' for lifting the immediate traction and the ' Oil And Gas Sector' is likely to have better days. The Unwinding Trade in USD Index will ensue hereafter. The Spike Volatility shall be higher with VIX nearing 30/38 range
            Investors: remain on Wait/ Watch.
     But, Investors shall be better off, If they, remain Side ways and Deal with Utmost Caution, as ' Risk' is not Priced in the Equities and Bond Markets. And, wait for Opportune time to enter.                                                                                                                              

Hungarian Monarch on Wall street : Gorge Soros

Money can be dull. There are only so many denominations, and only so many ways to make it. What’s interesting are the people who risk it, and over the past four decades no one has made more of a spectacle of risk than George Soros, whose http://www.bloomberg.com/news/2011-07-28/soros-goes-private-as-golden-era-of-rock-star-traders-ends-with-dodd-frank.htmlQuantum fund famously bet $10 billion that the Bank of England would be forced to devalue the pound. Soros earned $1 billion on that trade and incalculable legend points.

Now, Soros is going to stop risking other people’s money. By the end of this year, his Soros Fund Management LLC will have no outside customers for the first time in 42 years. The shift concludes a process that began in 2000, when Soros stopped accepting new investments, Bloomberg Businessweek reports in its Aug. 1 issue.

Four years later he turned management of the company over to his sons Robert and Jonathan. On July 26, after months of debate, the three men decided to return the less than $1 billion of outsiders’ money Quantum still oversees and convert the firm into a family office to manage almost $25 billion for George, his family, and foundations.

There’s a two-word explanation for closing what was once one of the world’s biggest hedge funds and consistently one of the best-performing --- with returns of about 30 percent annually in its first 30 years: Dodd-Frank. The law requires hedge funds to register with the Securities and Exchange Commission and provide information about customers, employees and assets. By returning outsiders’ money, Soros Fund Management escapes that rule and the loss of privacy that goes with it.

‘Unfortunate Consequence’

“An unfortunate consequence of these new circumstances is that we will no longer be able to manage assets for anyone other than a family client as defined under the regulations,” the brothers wrote in a letter to investors.

The move completes the 80-year-old Soros’s transformation from speculator to philanthropist statesman, a role he has said he first imagined for himself as a Hungarian émigré studying at the London School of Economics & Political Science after World War II. In the past 30 years, Soros said he’s given away more than $8 billion to promote democracy, foster free speech, improve education, and fight poverty around the world.

Economic Trends

Soros’s retreat from the stage is a marker of just how much the industry has changed --- and how much he’s changed the industry --- since he opened his first fund in 1969 with $4 million from investors and his own savings. Back then, hedge funds catered mainly to wealthy individuals and managers stayed out of the limelight. No one even bothered to track the number of hedge funds, which differ from mutual funds because they bet on falling as well as rising prices of stocks and other securities and can concentrate their money in a handful of positions.

Soros -- a “macro” investor who profits from broad economic trends rather than focusing on individual stocks or bonds --- was among the first managers to give the industry visibility. The world was his casino, and after his 1992 bet against the pound, investors and governments were forced to pay attention. Whenever a currency plunged, there were rumors Soros had been betting against it. Mahathir Mohamad, the Prime Minister of Malaysia, called him a moron for profiting from the ringgit’s decline in 1997, even though Soros was buying the currency at the time.

Russian Government

In January 1998, Soros went to South Korea and met with President-elect Kim Dae-Jung. His conclusion after the meeting was that the country needed a reorganization of its entire economy. If South Korea made such changes as strengthening its banks and letting foreigners buy controlling stakes in its companies, he said Quantum would invest up to $1 billion in the country. South Korean stocks jumped 7 percent over the next three days.