Pushing A String

Unfortunately, we have an extremely serious economic problem that is a massive ball and chain on the ankle of American commerce. In addition, President Obama not only knows this and is not informing you, but he is complicit in orchestrating it.

The markets are currently rigged, with the politicians in charge, most notably President Obama and Massachusetts Senatorial candidate Elizabeth Warren and advocate for the creation of Consumer Financial Protection Bureau, running at the mouth about how we need further market regulation.

Of course, under Obama's crony capitalism, we are not enforcing current laws when it comes to the financial markets and are allowing thieves to abscond with billions. See former New Jersey Governor, and Democratic bundler for Obama, Jon Corzine, of MF Global.

Although they say they are not, the FED is monetizing the debt, punishing savers. Banks are flush in cash, and are not lending. They sense something bad coming, and do not want risk extended in the upcoming environment.

Doug Dachille of First Principles Capital Management joins Joe Kernan on CNBC's Squawk Box to discuss QE3, the mortgage market and price distortion. Take a listen:




The FED should raise rates immediately and effort to strengthen the dollar, and quit pushing a string of failing central planning programs.  As Reagan said, government is not the solution to the problem; government is the problem.

With a Romney victory, the FED will promptly effort to pull back the extension of capital within the market, puncturing the propped up market averages. At this point, real value will be learned, improper market manipulation by The FED should cease with Bernake being fired and risk can be measured adequately.

We might have DOW 8000, but it will be real and we will have a solid basis to operate from. This will be much better than the crony capitalism and market manipulation we are currently dealing with.

Traders Handcuffed By Regulators

Governmental regulation, much of it coming from the horrendous Dodd-Frank bill, is an unwelcome participant in the marketplace, making it much harder for investors and traders to make money.

Forecast are increasingly difficult, as random governmental interaction and artificial interference curtails investment opportunities. Risk is central to an efficient market, and regulations to eliminate risk cause inefficiencies and reduce potential profits for those who can accurately measure risk.

Doug Dachille, CEO of First Principles Capital Management, was the guest host on Squawk Box last week and explains the difficulty traders are facing:

Jail The Looters

In the aftermath of the greatest financial crisis in a half century, progressives who seek additional governmental control jumped at the chance to increase financial regulatory instruments. Never let a crisis go to waste, you will recall.

Charged with crafting such policy were two Congressional members, both of whom should be investigated for their role in the collapse, Senator Barney Frank, D:MA and Congressman Chris Dodd, D:CT. Exactly what our corrupt government needed, inmates running the asylum.

With the Democrats holding super majorities in both Houses, the Dodd-Frank Bill became law. The basic purpose of the law is to prohibit fraud and chicanery in the financial system.

Someone forgot to tell former New Jersey Governor Jon Corzine, who was recently under consideration by the Obama administration as a potential successor to Treasury Secretary Timothy Geithner. After losing the governors race, Corzine, a Democrat, became Chairman of MF Global, and under his leadership, the company has filed for bankruptcy and is the subject of an FBI investigation. In short, the money is missing.

Bart Chilton, CFTC Commissioner who is on the circuit promoting his new book Ponzimonium, chats with The Squawk Box Crew; Becky Quick, Andrew Ross Sorkin and Joe Kernen, and guest host Mario Gabelli, on the recent increase of Ponzi Schemes and the goings on at MF Global. Take a listen:

The situation over at MF Global is very troubling and funds cannot be properly accounted for. Many investors appear out a lot of money, including Trends Research founder Gerald Celente, whose gold has seemingly turned to dust. The company cannot make investors whole, and Chilton says it is "suspicious as heck".

It should noted that existing regulatory agencies and the new far reaching Dodd-Frank bill, a job killing beast smothering business, failed miserably to prohibit Corzine and this group from crashing to bankruptcy, allegedly for the misappropriation of funds.

Remember in "Its A Wonderful Life" when the money went missing. George Bailey, upset with Uncle Billy, angrily quipped 'someone is going to jail, and it ain't gonna me me". Well, back in the day, folks did go to Sing Sing when money went missing.

It will be interesting to see, provided the allegations result in malfeasance and charges, if Democrat darling Corzine is prosecuted to the fullest extent of the law. You know how George Bailey would feel about it, but good guys are not winning these days.