who is the "welfare queen" now Wall Street?

Stocks decline amid Fed worries, dragged by banks; Vix spikes

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 Published: Wednesday, 7 Aug 2013 | 11:55 AM ET

By: JeeYeon Park | CNBC.com Stock Market Writer

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Stocks held their losses Wednesday, with the Dow and S&P 500 on pace for their third-straight declines, amid renewed concerns about when the Federal Reserve will begin tapering off its asset purchases.

	Name	Price		Change	%Change
DJIA	Dow Jones Industrial Average	15464.78		-53.96	-0.35%
S&P 500	S&P 500 Index	1690.64		-6.73	-0.40%
NASDAQ	Nasdaq Composite Index	3648.41		-17.36	-0.47%

The Dow Jones Industrial Average traded in negative territory, dragged byDisney and Bank of America, after falling nearly 100 points in the previous session.

The S&P 500 and the Nasdaq also declined. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped above 13.

Most key S&P sectors were in the red, dragged by financials and consumer discretionary.

(Read more: S&P 500's most shorted stocks)

Play Video

Investors 'obsessed' with tapering

Alec Young, global equity strategist at S&P Capital IQ, says investors are getting "increasingly obsessed" with central bank tapering, which is affecting the markets.

"At these levels and given how quickly the S&P 500 put on those last 100 points, people seem to be looking for opportunities to take profits," said Chris Bouffard, CIO with The Mutual Fund Store. "But overall, the economic signs are still relatively healthy and earnings are holding up…I would expect the Fed to wait until the end of the year to taper."

On Tuesday, two Fed presidents — Charles Evans and Dennis Lockhart — said the central bank would likely start reducing its stimulus program as early as September. U.S. stocks logged their biggest drop since June after the comments.

(Read more: Fed may cut bond buying as soon as next month, Evans)

Cleveland Fed President Sandra Pianalto at 1:40 pm ET on the regional economy. Philadelphia Fed President Charles Plosser, who was originally scheduled to speak at 12:30 pm, cancelled his speech.

On the economic front, mortgage applications edged up last week as potential buyers crept back into the housing market even though rates continued to climb, according to the Mortgage Bankers Association.

The Fed will also release consumer credit data for June at 3 p.m. Analysts polled by Reuters forecast a $15 billion gain, after a $19.6 billion rise in May.

The government is scheduled to auction $24 billion in 10-year notes with the results available shortly after 1 pm ET, following Tuesday's strong $32 billion 3-year note auction.

"We're entering the dog days of August and that tends to benefit the Treasury market," said John Briggs, senior Treasury strategist with RBS.

(Read more: Cashin: Here's what's making markets nervous today)

Play Video

Stocks slump on Fed tapering worries

The Dow and S&P are having a rough start to the trading day. David Kelly, Morgan Funds, share his investment strategies for a volatile market.

Among earnings, Walt Disney declined after the media conglomerate edged past earnings expectations but projected a massive loss related to its summer film, "The Lone Ranger." Analysts were mixed on the stock—Bernstein raised its price target on the company to $76 from $73, while RBC cut its target price to $71 from $72.

Time Warner rose after the media corporation beat earnings and revenue forecasts. In addition, the company said it expected mid-teens percentage earnings growth for the full year, up from the low double-digit estimates it previously provided.

Meanwhile, First Solar plunged to lead the S&P 500 laggards after the solar company posted quarterly results that were below expectations and cut its full-year outlook.

Groupon, Green Mountain Coffee Roasters, Mondelez International, Tesla Motors and Transocean are among notable companies slated to post results after the closing bell.

In Asia, the Nikkei ended below the key 14,000 level and the Japanese yen hit a six-week high against the dollar. Australia's S&P ASX 200 index and South Korea'sKospi hit two-week lows.

Meanwhile, the Bank of Japan began a two-day policy meeting on Wednesday with an outcome due on Thursday. While analysts expect no action, the direction of the yen will hinge on the central bank's statement.

Shares in Europe closed lower amid concerns that both the U.K. and U.S. central bank may tighten monetary policy earlier than anticipated. Bank of England's Mark Carney unveiled U.S. Fed-style forward guidance, and said Britain's central bank will not raise interest rates until U.K. unemployment hits 7 percent.

Meanwhile, Fitch affirmed Germany's rating at 'AAA' with a stable outlook.

—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: 

@JeeYeonParkCNBC

)

Coming Up This Week:

WEDNESDAY: 10-yr note auction, Fed's Pianalto speaks, consumer credit; Earnings from Green Mountain Coffee Roasters, Groupon, Mondelez Int'l, Tesla Motors, Transocean
THURSDAY: Jobless claims, natural gas inventories, Fed balance sheet/money supply, chain store sales; Earnings from Rio Tinto, Dean Foods, T-Mobile, Lions Gate Entertainment, Nvidia, Priceline.com, Annie's
FRIDAY: Wholesale trade

Communist China will collapse in 2016?

The Chinese Communist Party will collapse in three stages in the next three years and its reign will come to an end by 2016, according to the Hong Kong magazine Frontline, which focuses on Chinese politics. 

According to Frontline, the first to go will be China’s economy, in 2014; in 2015 the “political structure” of the Party will be destroyed; and in 2016, the entire society will fall apart, the article says, citing historical precedents. With a big enough trigger, the collapse could arrive earlier, it said.

Economists are seeing a reverse in global capital flows—money is moving out of China—which may trigger financial upheaval, Frontline said.

Among all the threats, the most lethal three are the real estate bubble, shadow banking, and local government debts, because of how pervasive and large-scale they are, says Dr. Frank Tian Xie, a business professor at the University of South Carolina Aiken.

China will see negative investment growth next year and monetary injections into the system won’t improve the situation but are still necessary for maintaining the chain of local debt, according to the report.

According to the article, the Chinese economy’s crisis originates from political problems that will make themselves apparent in a 2015 collapse. Many complex vested interest groups in China disregard the fate of the Party or the nation and are only concentrated on accumulating wealth, Frontline said.

According to the Hong Kong report, these vested interest groups are more willing to see the end of the Chinese Communist Party than follow the reforms suggested by Xi Jinping and other current top leaders, because they have prepared their own exit strategies.

As a last resort to save itself, the Party may use a multinational corporation to funnel money back to China and maintain the Chinese yuan while discontinuing the use of foreign exchange savings and U.S. bonds, Frontline Magazine speculated in a June issue.

The subject of a Party collapse has been popular in the past year, with a China-centric apocalyptic novel published in January titled “2014: The Great Collapse” becoming the number one bestseller in a Hong Kong store for banned books.

Translation by Frank Fang, Ariel Tian, and Janet Chiu.

Gotta open my mouth

Dear Honorable Representative Bonamici,

The ccp (Chinese Communist Party) is not a party at all.  They espouse no moral values.  They are an organized crime gang.  They would arrest you too.  They will persecute you.  They will tell you what you can and cant do.  This is not a Foreign Policy issue, this is a human rights issue. 

The ccp goes against every stated principle known to every decent people in the world, not to mention our own constitution, a document apparently so important, that great men and women have died for it.   Great people like you continue to work for it and enable the people of America to prosper.  

The ccp are the worst kind of evil people that exist on the planet.  They are Extortionists thugs, thieves, bullies.   Their history is one of death.  

They are completely opposite the values of Truth, Compassion, Tolerance.  Traits that I hope my grandmother had. I hope my mother and dad had.  I hope that I have.  And I hope that you have. 

Most successful people have had a great person in their lives that showed them how to “live right”.      

Many people blame societies' ills on people who don’t have any values. You are what many people would consider accomplished. Good for you.  At gatherings you are held in esteem. Good for you. Most successful people have had a great person in their lives that showed them how to “live right”.  Not all people have that.  Good for you.   There are probably some people who are very proud of your accomplishments.  This is probably because you lived and live by certain values.  I wish continued good blessings for you.  

This is not a political situation.  The people of China don’t want the CCP in power any longer, not because of preference for a particular political party, but simply because the ccps’s values are against theirs.  They have the right to decide they no longer want those people to represent them.  But that’s another story.   

Again, the ccp is not even a political party,  They are just an organized state of thieves, murderers, plunderers. They have no moral values. They will do anything to maintain their fading grip on the people of China.  Their talk about “social harmony” is disgusting, nothing but a cynical use of patriotism to look away.   Look to whom wants all to be quiet and there you will find the oppressor.  “Oppressors desire to silence every voice raised in opposition for in silence, oppression is perpetuated”   - Ellie Weisel.  There is no bottom to their depravity.  “You can fool some of the people all the time, and all of the people some of the time, but you cannot fool all of the people all the time.” said Abraham Lincoln.   The ccp is trying to prove old Abe wrong.  We have gotten to the point of no return.  I am no longer fooled.   This is a state of affairs that any good and decent person would work to eliminate.  This is not a “run of the mill” issue.  This is truly make or break.  We have to get out of this morass and see what needs to be done and DO IT.   

Falun Dafa practitioners, having been detained by the “state”, their freedoms abridged, their bodies not in their own control, for no other reason than their belief in these simple concepts of Truth, Compassion and Tolerance, are having their organs removed from their bodies.  Under the ccp, there is no truth, compassion, or tolerance for those who believe in it and only try to be so.    

This is crazy.  There is no rational explanation for this except wanton depravity, and complete and heinous loss of control of their self-conscience, profit at any cost, and I do mean any. With this kind of behavior, in a vacuum, I believe in ten years they would all die in a blood bath.  

If the CCP were to ever conquer the US, (however improbable, but just imagine the logical conclusion) would they not would not force us to live in the exact same way? One need only to look at Hong Kong.  

But they don’t live in a vacuum.  They live on this earth, just like us, among other nations and people who have given their lives for justice, life and liberty -  all denied to the practitioners of Falun Dafa and the people of China.   What motivates us to work with a State like that?   “But, by the God that made me, I will cease to exist before I yield to a connection on such terms as the British Parliament propose; and in this, I think I speak the sentiments of America.” 

—Thomas Jefferson, November 29, 1775.  In place of British Parliament, substitute ccp.  

Don’t think of the ccp as a political party.  They are organized criminals and should all be tried for crimes against humanity.  

This is a horrible crime that needs to stop. You are here to represent your people. I am one of those people. We can all only benefit from stopping such activities, in ways that cannot always be tangible.  Please sign H.R. 281. which calls for a complete cessation of the practice of organ harvesting from it’s political prisoners.  

It would be a good thing.  

I am posting this to twitter, and facebook, google+ and my blog.  

Christopher O’Neill

Russia is worse - Isn't it?

Edward Snowden was given asylum in Russia Today.  The US is bent and upset that he will not be coming back to face charges.  If US is that much better than Russia, then why are they so upset that he is stuck there?

Russia is a worse -     Isn't it?