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Stock Market Update, March 13th, 2014, InvestWithAlex.com

Daily Chart March 13, 2014 investwithalex

A massive down day with the Dow Jones losing -231 points (-1.41%) and the Nasdaq losing -63 points (-1.46%). Today’s market action closed the large gap that was left behind on March 4th when Putin promised not to invade Ukraine. 

Is this a simple technical correction or start of a larger trend?

Over the last few weeks, and on numerous occasions, I have outlined how 5-Year cycles control large trends withing the stock market. For instance, the bull market between October 10th, 2002 bottom and October 11th, 2007 top was exactly 5 Years and 1 trading day. Thus far, the market topped out on March 7th. That’s right, exactly 5 Years and 1 trading day from March 6th, 2009 bottom. 

Does that mean the bear market has already started? 

The answer is a lot more complicated than just one cycle outlined above. I did mention before that the bear market of 2014-2017 has already started (on the Dow) on December 31st, 2013.  If you would be interested in learning exactly where we are in this bear market and the exact composition of the decline over the next 3 years, please Click Here. 

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Stock Market Update, March 13th, 2014, InvestWithAlex.com Google

Investors Stampede Back Into The Market With $41Billion….Boom Times Ahead?

As Bloomberg reports, investors poured $41 Billion into ETF’s over the last 4 weeks, suggesting further upside. What they didn’t mention is that there was a $40 Billion outflow in January and February when the market tanked. The net result? The Dow went down 1,300 points in Jan/Feb and went up 1,300 points over the last 5 weeks. ZERO SUM GAME. 

The report goes on “Dwindling outflows show investors regaining confidence that the global economy is going to grow,” Joseph Quinlan, the chief market strategist at Bank of America Corp.’s U.S. Trust, which oversees about $330 billion, said by phone from New York. “When you look at growth in the U.S., this is emblematic of one economy pulling other economies along.”

Based on our mathematical and timing work that is a misconception. No surprise, it’s coming out of Bank of America. It doesn’t show investor confidence, its shows herd mentality or yield chasing. Further, capital inflows are indicative of market tops and not market bottoms or acceleration points. Please see the chart below. Retail investors are nowhere to be found at market bottoms. Yet, they are always there in mass at market tops. Just as today.   That has always been and will always be the case. Just another red flag for today’s market.  

As our work indicates, the bear market of 2014-2017 is just around the corner. If you would like to learn more about exactly when it starts and its exact internal structure, please Click Here.    

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Investors Stampede Back Into The Market With $41Billion….Boom Times Ahead? Google

 

 

ETFs Get $41 Billion Erasing Global Withdrawals as Economic Optimism Rises

Investors who beat a path out of global equity markets earlier this year are stampeding back in.

More than $41 billion has returned to U.S. exchange-traded funds that own shares in the past four weeks, reversing withdrawals that swelled to as much as $40.2 billion last month, according to data compiled by Bloomberg. Cash has flowed back as the MSCI All-Country World Index rallied 5.8 percent from the four-month low it reached Feb. 4, when turmoil in emerging markets spurred speculation the global recovery would slow.

The reversal is the latest sign of confidence in a five-year bull market that has gained momentum amid 11 straight quarters of expansion in U.S. gross domestic product. The MSCI gauge this month reached its highest level since 2007 after investors blamed cold weather for U.S. retail sales and housing data that trailed economists’ forecasts while world leaders pledged to maintain accommodative policies to spur growth.

“Dwindling outflows show investors regaining confidence that the global economy is going to grow,” Joseph Quinlan, the chief market strategist at Bank of America Corp.’s U.S. Trust, which oversees about $330 billion, said by phone from New York. “When you look at growth in the U.S., this is emblematic of one economy pulling other economies along.”

Global Equities

About $1.5 billion was deposited to global equity ETFs on March 11, bringing the total inflows for the month to $15.3 billion, data compiled by Bloomberg show. Investors pulled almost $15 billion out of the funds in January and the MSCI All-Country World Index was down as much as 5.8 percent through Feb. 4 after Argentina unexpectedly devalued the peso, Turkey doubled interest rates and manufacturing growth slowed in China.

U.S. consumer confidence improved last month and employers added more workers than projected, a sign that the world’s largest economy is starting to shake off the effects of the severe winter weather that slowed growth at the start of 2014.

Federal Reserve Chair Janet Yellen has pledged to maintain Ben S. Bernanke‘s policy of cutting bond purchases in measured steps. While policy makers monitor data to determine if recent weakness in the economy is temporary, “if there’s a significant change in the outlook, certainly we would be open to reconsidering,” she said in testimony to Senate Banking Committee on Feb. 27.

Bond Purchases

Three rounds of bond purchases from the Fed have propelled the Standard & Poor’s 500 Index as much as 178 percent higher from a bear-market low in 2009. The benchmark gauge hit an all-time high of 1,878.04 on March 7. It rose 0.1 percent to 1,870.56 as of 9:56 a.m. in New York as data showed retail sales rose for the first time in three months and jobless claims unexpectedly fell.

“Stocks seem to shrug off any hits that would have moved them lower,” Matt McCormick, who helps oversee $11 billion as a portfolio manager at Cincinnati, Ohio-based Bahl & Gaynor Inc., said in a phone interview. “The thinking is probably that Yellen will come in and bring liquidity to the market if we get anywhere close to a substantial correction, so why not enjoy the party while it lasts.”

Not only in the U.S., monetary policies remain loose from Japan to Europe. The Bank of Japan this week maintained record easing, keeping a pledge to expand the monetary base at a pace of 60 trillion to 70 trillion yen ($680 billion) per year. Seventy-three percent of economists surveyed by Bloomberg forecast the central bank will add to easing by the end of September to support the economy.

‘Long Way’

In the euro region, European Central Bank President Mario Draghi has cut interest rates five times and taken the central bank down unconventional policy routes since assuming office in November 2011.

Bill Schultz, chief investment officer who oversees about $1.1 billion at McQueen Ball & Associates in Bethlehem, Pennsylvania, says the return of equity inflows will only be sustained should growth pick up in coming months.

“I’m not committing new money to the market until I see signs there’s a reason to,” Schultz said. “We still need to see signs that the weather-related phenomenon was truly that — a slowdown in economic growth because of people not necessarily spending as much as they may have. The S&P has come a long way. It needs a new catalyst to get it moving forward.”

Investors are shifting to Europe while withdrawing from emerging markets as optimism mounts that growth in advanced economies is strengthening while developed economies are poised to falter.

Growth Forecasts

ETFs investing in international equities have drawn $448.8 million this year as demand for assets in countries from Japan to Italy and Spain increased, data compiled by Bloomberg show. Emerging-market funds lost $12.1 billion, more than double the total redemption of $5.6 billion for the whole year of 2013, according to the data.

While the euro region is forecast to rebound from a two-year recession in 2014 and growth in the U.S. will accelerate to 2.9 percent from 1.9 percent last year, the economies in some of the biggest emerging countries — Brazil, Russia, India, China and South Africa — are projected to stall at a growth rate of 5.6 percent, economists’ estimates compiled by Bloomberg show.

More Stability

“It is clear that developed markets will pull along the developing markets,” Quinlan at U.S. Trust said. “We haven’t hit the bottom with emerging markets. Investors are expecting them to get cheaper and want them to get cheaper before they take on that risk. They’re also looking for more stability over there.”

The MSCI Emerging Markets Index has lost 5.8 percent this year, trailing the gauge of global equities, as currencies from Turkey to South Africa tumbled while tensions between Ukraine and Russia escalated.

While turmoil in developing nations will boost market volatility, it’s not going to derail the global recovery, according to Chad Morganlander, a Florham Park, New Jersey-based fund manager at Stifel Nicolaus & Co.

“There will be this gradual improvement and momentum that will kick in,” Morganlander, whose firm oversees about $150 billion of assets and manages ETF portfolios, said by phone. “The inflows will continue in the coming months as investors try to get ahead of the existing economic data and earnings.”

Federal Government Spent $172 Million On Penis Pumps

You really can’t make this shit up. In another perfect illustration of Government waste, Medicare spent $172 Million on penis pumps as per NBC report below.  

“Penis pumps, which are vacuum tubes that help men attain erections, cost the government $360 each, according to Ilyse Hogue, president of the National Abortion and Reproductive Rights Action League. Medicare spent $172 million on penis pump claims from 2006 to 2011, NBC News reported.”

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Federal Government Spent $172 Million On Penis Pumps Google

 

Critics of Obamacare don’t want women’s contraceptives covered — but hey, hands off the penis pumps

“Daily Show” correspondent Samantha Bee has uncovered a small double standard: While Obamacare critics object to its covering contraception for women, no lawmakers have attacked $172 million in Medicare spending on penis pumps.

Penis pumps, which are vacuum tubes that help men attain erections, cost the government $360 each, according to Ilyse Hogue, president of the National Abortion and Reproductive Rights Action League. Medicare spent $172 million on penis pump claims from 2006 to 2011, NBC News reported.

Also read: Jon Stewart Shreds Paul Ryan’s Fake School Lunch Story (Video)

Bee was stunned to learn of the costs.

“So for less than a dollar a day, a man can restore the glory of his erection?” she said on “The Daily Show” Wednesday. “That’s amazing!”

She also said Hogue’s criticism of the situation seems misplaced.

Also read: ‘Daily Show’ Correspondent Jessica Williams Exposes Racist Dogs and Computers (Video)

“She just didn’t understand that women’s selfish desire for sexual health and gynecological exams pales in comparison to men’s need to deal with erectile disfunction,” Bee said.

“These are hardworking American penises,” she added. “Should we really be abandoning them at the end of their careers?”

Bee and Hogue also speculated about why lawmakers haven’t declared war on penis pump spending.

“Statistics show that probably some members of our Congress have a vested interested in having penis pumps covered,” Hogue gently suggested.

John McCain: “We Are All Ukrainians”

As he was about to board his plane to Ukraine Senator John McCain proclaimed “We Are All Ukrainians”.  Umm…. thanks, but no thanks. Can Ukraine keep him? Please 😀  In related news, while president Obama’s rating is hitting a new at 41%, Putin’s approval rating soared to a 3 year high of 72% as Interfax notes “we now have a complex society that supports the president, primarily because of his stance on Ukraine.”

Did  anyone in the Western Media stop and think that they might have gotten the story wrong or will they continue this BS American propaganda that might lead to an actual  war? 

Unfortunately, I think everyone knows the answer to that. 

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John McCain: “We Are All Ukrainians” Google

Warning: Work Until You Die. Sounds Good To Me.

Americans are obsessed with retirements. That’s all you see for TV commercials now days. As if some whack job from Edwards Jones or Charles Schwab will be able to make you enough money to retire on. Especially, after your Federal government inflates all of your savings away. Now, the report below. More Americans, at least 50% of those over the age of 65,  are starting to realize that the retirement is nothing but a pipe dream and that they might have to work until they drop dead.  

Let me ask you this. What’s wrong with that? I plan on working until I drop dead. No matter how much money I have. What the hell is there to do in retirement? Eat Bonbons and watch Jerry Springer? That’s not life. Instead Americans should embrace this fact as a positive and position themselves, as they get older, to find a job/career where they can, as the article puts it, drop dead in their cubicle. 

It is time for this retirement nonsense to go away.  

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Warning: Work Until You Die. Sounds Good To Me. Google

 

Work until you die: Lifelong labor becomes new normal

For a growing number of Americans, there may never be such a thing as real retirement.

“The market is filled with people who are petrified of the idea of retiring because they might not have the funding to afford retirement,” Goalinvestor.com’s Melissa Doran Rayer, whose company provides financial planning services and created a data chart to show how retirement trends are shifting, told Yahoo News in a recent interview.

From 1990 to 2010, the percentage of workers 65 and older staying in the job market rose for both women (from 28.2 to 43.8 percent) and men (52.5 to 65.3 percent).

Interestingly, those trends have occurred in the 35-plus years since the Revenue Act of 1978 was passed, allowing workers to invest tax-deferred savings in 401(k) plans.

There have also been broad cutbacks to pensions across the U.S. A recent analysis found that more than 20 million American workers could have their retirement threatened from pension mismanagement.

The percentage of companies offering pension plans has also declined, as have the average retirement contributions in corporate 401(k) plans. In February, AOL’s CEO Tim Armstrong faced wide criticism for his plans to both alter and scale back company 401(k) contributions.

There’s also the risk that people will plan poorly for their retirement, choosing either to retire too early or to spend too much when they need to be living on a more modest budget.

For example, a new online test about Social Security, which found that about only 5 percent of respondents correctly answered a set of basic questions about when and how to best use their retirement funds.

“There are two or three key mistakes — people planning for too early a retirement or too lavish a retirement,” Tash Elwyn, president of Raymond James & Associates, told USA Today.

“It might mean that you’re working part-time or that you’re starting a new business,” Doran Rayer said. And for some, starting a new business is obviously a positive choice. But she said it can also be the only option for some older workers struggling to find a place in a workforce that has largely left them behind.

“Going forward, it’s not so much retirement but financial flexibility,” she said. “It means the freedom to make decisions for themselves about the types of jobs they take on. Maybe not how much their W-2 reads at the end of the year, but things they want to be doing.”

Will The US Go To War Against Russia Over Ukraine Or China Over The Philippines

Hmm, so many good opportunities….so hard to choose. Can we get a two for one discount? The US continues it’s idiotic foreign policy by meeting an illegitimate and criminal new President of Ukrainian Government in the White House, driving the USA/Russia relationship to a new low. All while shoving “American Righteousness” down Chinese throats. Yesterday, I published a report that I held close to my heart for over 5 years. 

Nuclear World War 3 Is Coming Soon. When, How & Why (Part I) 

In it I outlined that it will be NATO Vs. China/Russia Alliance to fight the final war. Whatever you think of politics, please note how today’s geopolitical and macroeconomic events line up perfectly.  Typically, such developments take 15-20 years to boil over and that’s the exact time frame we are looking at. With the US and their EU counterparts going after Russia and China with all they have got, China & Russia will have no choice but to forge their already strong relationship into an eventual military alliance. 

 

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Will The US Go To War Against Russia Over Ukraine Or China Over The Philippines Will Google

US hits ‘provocative’ China move on Philippine ships

 
Disputed claims in the South China Sea

.

Washington (AFP) – The United States on Wednesday accused China of raising tensions by blocking two Philippines vessels as it urged freedom of navigation in the tense South China Sea.

The United States, a treaty-bound ally of Manila, said it was “troubled” by Sunday’s incident in which China prevented movement of two ships contracted by the Philippine navy to deliver supplies and troops to the disputed Second Thomas Shoal.

“This is a provocative move that raises tensions. Pending resolution of competing claims in the South China Sea, there should be no interference with the efforts of claimants to maintain the status quo,” State Department spokeswoman Jen Psaki said.

The Philippines on Tuesday summoned China’s charge d’affaires, accusing Beijing of a “clear and urgent threat” to Manila’s interests. Beijing countered that the ships “infringed China’s territorial sovereignty” and violated a 2002 declaration of conduct in the South China Sea.

The United States rejected China’s stance, saying that countries had the right to “regular resupply and rotation of personnel” to locations before the 2002 declaration.

The Second Thomas Shoal, which sits around 200 kilometers (125 miles) from the western Philippine island of Palawan, is claimed by the Philippines, China and Taiwan. Beijing calls it Ren’ai Reef.

Malaysia, Brunei and Vietnam claim other parts of the Spratly islands, which lie near vital sea lanes and rich fishing grounds and are also believe to sit on vast mineral resources.

The United States, while saying it takes no position on the sovereignty of disputed territories, has been increasingly robust in its criticism of China. Last month, the United States challenged the legal basis for China’s claims over a vast area across the South China Sea.

The United States has been seeking to prevent China from taking more drastic action in the South China Sea. In November, China declared an Air Defense Identification Zone — requiring planes to report to Beijing — over a vast area in the East China Sea where it has a separate but intense feud over Japanese-administered islands.

Japan and the Philippines have accused China of making growing incursions to challenge their control over territories. US President Barack Obama will visit both Japan and the Philippines next month.

No Stock Market Bubble, All Bears Are Idiots

Well, at least according to the WSJ and Steven Russolillo. What is his evidence? The P/E ratio of course. 

“Nine of the 10 biggest S&P 500 companies currently trade at price-to-earnings ratios of less than 20, according to Bespoke Investment Group. At the peak of the tech bubble in March 2000, none of the 10 largest companies were that cheap, suggesting the irrational exuberance that infiltrated the market back then hasn’t come close to making a comeback now.”

I am not sure how many times I have to explain this stupidity away, but let me give it another try. Take a look at the P/E chart below. The P/E ratio is no longer relevant in today’s macroeconomic environment where the FED floods the market with cheap credit. You see, most of the corporate earnings (the E in P/E) have been driven by this same credit. If you take away the low interest rates and over $1 Trillion of stimulus that was pumped into our economy over the last 3 years, you will see this E collapse. Making today’s P/E ratio not only expensive, but “are you fu&#ing kidding me expensive”.

That is exactly what happened at the market top in 2007 when the S&P P/E ratio went from about 18 at the top in 2007 to 128 in 2008. How is that possible? Well, the earnings that were driven by credit and speculation at 2007 top simply vanished. Today we face an identical situation. The bottom line is this. Anyone who relies on the P/E ratio to “value the markets” in today’s environment will lose a lot of money.

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No Stock Market Bubble, All Bears Are Idiots  Google

Morning MoneyBeat: No Bubble Here

Warnings of an impending stock-market bubble are everywhere. But one important, and perhaps underrated, indicator says investors shouldn’t worry so much.

Nine of the 10 biggest S&P 500 companies currently trade at price-to-earnings ratios of less than 20, according to Bespoke Investment Group. At the peak of the tech bubble in March 2000, none of the 10 largest companies were that cheap, suggesting the irrational exuberance that infiltrated the market back then hasn’t come close to making a comeback now.

In 1999 and 2000 when the market zoomed to uncharted territory, the bubble started in tech stocks and then spread through the rest of the market. It lifted tech companies to exorbitant valuations and pushed the overall market to historically expensive levels. But now, the fact that valuations among the biggest companies remain in-line or even below historic averages highlights how pockets of frothiness haven’t had the same impact on the broad market.

The top 10 companies, on average, currently trade at 16.1 times trailing earnings, Bespoke’s data show. In March 2000 the 10 biggest firms had an average P/E multiple of 62.6, almost four times the current amount.

Apple Inc., Exxon Mobil Corp. and Microsoft Corp.—three of the S&P 500’s four biggest companies right now—all sport P/E ratios around 13, well below the S&P 500’s trailing P/E ratio of 18.09Wells FargoWal-Mart andJ.P. Morgan also have cheaper multiples than the broader market. The priciest stock in the top 10 is Google Inc., which trades at 33 times earnings.

To put those numbers in perspective, Google’s current valuation would’ve ranked as the third cheapest among the S&P 500’s top 10 biggest companies in March 2000.

The go-go days of the dot-com boom were much different than today. Consider some of the valuation metrics: Microsoft, then the biggest company, traded at 56.8 time trailing earnings. Cisco Systems had a P/E ratio of 196.2 and Oracle traded at 148.4 times trailing earnings. The cheapest of the top 10 was Exxon Mobil, which had a P/E ratio of 24.6. That would rank as the second priciest among today’s top 10.

“Back in 2000, many of the technology stocks that were part of the bubble were also among the largest companies in the U.S. in terms of market cap,” Paul Hickey, cofounder at Bespoke Investment Group, wrote to clients. “When the bubble stocks popped, they dragged down the entire index along with them.”

In 2014 some pockets of the market, such as biotech and social media, look particularly frothy. But even if those groups fall substantially, they aren’t big enough to bring the rest of the market lower. “A large decline in fuel-cell, marijuana, or even social-media stocks is unlikely to be a major market moving event,” Mr. Hickey says.

To be sure, the bubble warnings flying around Wall Street shouldn’t be ignored. We’ve cited several of them recently, including pricey stock valuations and record high margin-debt levels. Investors have also been pushing stocks of newly public companies higher even as a growing number of them aren’t profitable.

But the message from America’s biggest companies isn’t flashing concern just yet. That’s far different from what transpired 14 years ago.

Morning MoneyBeat Daily Factoid: On this day six years ago, gold prices on the New York Mercantile Exchange hit $1,000 an ounce for the first time ever.

Did Aliens Hijack Malaysia Airlines Flight 370?

As ridiculous as this sounds, this might as well be the case. A fascinating and unprecedented case worth following. How can a plane vanish into thin air and without a trace? With over 80 planes and ships searching the area and with most of the developed nations searching with satellites, not a single piece of evidence have been found. Let’s look at some of the theories out there. 

  • The Plane Turned Around, Turned Off It’s Transponder and flew towards the Indian Ocean – this doesn’t make any sense. Plus, China Mobile is saying that some of the cell phones on board still ring, no one answers and they can’t trace them. I am not sure how that’s possible. 
  • Catastrophic Mechanical Failure and Midair Disintegration…..OK, but where is the debris?   
  • Terrorism: Did the two individuals traveling with counterfeit passports blow up the plane?  With mysterious Mr. Ali buying both plane tickets with cash in Thailand, there are more questions than answers. Than again, where is the debris?  
  • Hijacking: In the day and age where NSA tracks every click you make, how is it possible to steal or hijack a Boeing 777 without a trace? Did Kim Jong Un need a private plane? 
  • Aliens: Might as well be at this point in time.  It won’t be long before these theories show up. 

Too many questions and not enough answers. No one knows. The plane simply vanished. While a fascinating case, our prayers go out to the families and to the loved ones of the people on board. 

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Did Aliens Hijack Malaysia Airlines Flight 370? Google

(CNN) — With lead after lead failing to pan out, search and rescue officials said Monday they will expand the search area for the Malaysia Airlines aircraft that vanished three days ago.

The newly expanded search area encompasses a larger portion of the Gulf of Thailand between Malaysia and Vietnam, said Azharuddin Abdul Rahman, director general of the Malaysian Civil Aviation Department.

Nearly three dozen aircraft and 40 ships from 10 countries have so far failed to find any sign of the aircraft.

Other leads — reports that a plane door and its tail had been spotted — turned out to be untrue, he said at an earlier briefing.

“Unfortunately, ladies and gentlemen, we have not found anything that appear to be objects from the aircraft, let alone the aircraft,” Rahman said at the earlier briefing.

Authorities are sending ships to investigate a report of debris found south of Hong Kong, but it will likely be Tuesday before authorities know if there is anything to those reports, Rahman said.

No emergency signal has been detected by any search vessel or aircraft. And family members of passengers are being told to prepare for the worst.

So the mysteries surrounding Malaysia Airlines Flight 370 — and the true identities of some of its passengers — remain unsolved.

“For the aircraft to go missing just like that … as far as we are concerned, we are equally puzzled as well,” Rahman said.

“We have to find the aircraft.”

So far, nothing

Malaysia Airlines Flight 370 took off from Kuala Lumpur shortly before 1 a.m. Saturday (1 p.m. Friday ET). The Boeing 777-200ER, carrying 227 passengers and 12 crew members, went missing while flying to Beijing.

Since then, teams of searchers from Vietnam, China, Singapore, Indonesia, the United States, Thailand, Australia, the Philippines and New Zealand have been working alongside Malaysians to scour the Gulf of Thailand, part of the South China Sea that lies between several Southeast Asian countries.

The focus has now shifted to the Andaman Sea, near Thailand’s border, after radar data indicated the plane may have turned around to head back to Kuala Lumpur.

But the pilot apparently gave no signal to authorities that he was turning around.

From 7 a.m. to 7 p.m., planes flew over the vast waters. Ships searched through the night

It is perplexing enough that a jetliner seemed to have vanished without a trace. Adding to the mystery is the news that at least two people on board were traveling on passports stolen from an Austrian and an Italian.

Malaysian officials have shared with the U.S. government the images and biometrics of the men believed to have used stolen passports to board the flight, a U.S. intelligence official told CNN’s Jim Sciutto. The official didn’t specify what data were shared. Biometrics can include things like fingerprints.

“They will compare that to what we have in our terrorist databases. These are lists of people on no-fly lists, people with possible terrorist connections, people we have reasons to be suspicious of,” U.S. Rep. Peter King told CNN’s “The Lead.” “We have these listings, and those names and those biometrics will be compared to those.”

According to Thai police officials, an Iranian man by the name of Kazem Ali purchased the tickets for two friends who he said wanted to return home to Europe. While Ali made the initial booking by telephone, either Ali or someone acting on his behalf paid for the tickets in cash, according to police.

Rahman said Monday that authorities have reviewed security footage from the airport and said the men who traveled on the stolen passports “are not Asian-looking men.”

Interpol tweeted Sunday it was examining additional “suspect #passports.”

“Whilst it is too soon to speculate about any connection between these stolen passports and the missing plane, it is clearly of great concern that any passenger was able to board an international flight using a stolen passport listed in INTERPOL’s databases,” said Interpol Secretary General Ronald K. Noble in a statement.

The passports were reportedly stolen in Thailand, and Thai Prime Minister Yingluck Shinawatra told CNN’s “Amanpour” on Monday that police are investigating.

“Initially we don’t know about their nationality yet,” she said. “But we gave orders for the police to investigate the passport users. Because this is very important to Thailand, to give full cooperation to Interpol in the investigation about the passport users. We are now following this.”

Terrorism concern

The passport mystery raised concerns about the possibility of terrorism, but officials cautioned that it was still too early to arrive at any conclusions.

One possible explanation for the use of the stolen passports is illegal immigration.

There are previous cases of illegal immigrants using fake passports to try to enter Western countries. And Southeast Asia is known to be a booming market for stolen passports.

Five passengers ended up not boarding the aircraft. Their bags were removed and were not on board the jet when it disappeared, Rahman said at Monday’s briefing.

Could the plane have been hijacked? “We are looking at every angle, every aspect,” Rahman said.

“We are looking at every inch of the sea.”

There has been some speculation that the flight might have been a test run for a terrorist organization planning a later attack.

The incident has some similarities to such incidents in the past, such as the 1994 bombing of a Philippine jetliner that investigators later learned was a test run for a wider plot to bomb numerous airliners, former U.S. Department of transportation Inspector General Mary Schiavo told CNN on Monday.

But John Magaw, a former Transportation Security Administration official and U.S. Secret Service director, said his best guess is the Malaysia Alrlines flight was not a test.

“They’ve already done the dry run,” he said. “This was the actual flight.”

Agonizing wait

For the relatives of the 227 passengers and 12 crew members, the wait has been agonizing.

Among the passengers, 154 people were from China or Taiwan. The plane was also carrying 38 Malaysians, five Indians and three Americans citizens. Five of the passengers were younger than 5 years old.

In Beijing, family members gathered in a conference room at a hotel complex.

More than 100 people signed a hand-written petition that demanded “truth” from the airline. They also urged the Chinese government to help them deal with Malaysian authorities.

Malaysia Airlines, which was helping family members apply for expedited passports, said it will fly out five relatives of each passenger to Kuala Lumpur.

A fuller picture of what happened may not become available until searchers find the plane and its flight data recorder.

And so far, that hasn’t happened.

George Soros: Germany Is Stupid For Staying In The EU and Euro

It’s nice to find George Soros and myself on the same page….again. The EU is a basket case and a bad idea. I have been a proponent, for quite a while, that Germany should have said Auf Wiedersehen to the EU and Euro a long time ago. They could have gone back to the Deutsche Mark and watch their economy skyrocket. Instead, they are supporting socialist French, flamboyant Italians,  forever fiesta Spaniards and we are never going to pay you back Greeks. With cultural differences going back thousands of years, I very much doubt that the EU will be able to survive over the next 20 years. If German people wise up, they will be the first out of the door.  

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George Soros: Germany Is Stupid For Staying In The EU and Euro Google

 

Soros: ‘EU fulfilling my worst expectations’

Germany should have quit the euro zone to help boost its indebted counterparts in the currency union, according to billionaire investor George Soros, who discussed the future of Europe at an event in London on Wednesday. The exit of Europe’s largest economy from the 18-country currency bloc would likely have weakened the euro (Exchange:EUR=), potentially helping the region’s struggling economies to recover from the recent sovereign debt crisis. (Read more:Russia’s Putin acting out of weakness: Soros )

With regards to Germany’s decision to remain in the zone, Soros said: “This has fulfilled my worst expectations.” Before German elections last year, Soros said he was an advocate of the country leaving the single currency. This, he said, would have created a difficult but “quick fix” that would have allowed the region to rebalance. Now the chances of this happening are almost none, he added, saying Europe will likely face a prolonged period of painful readjustment and stagnation.

“(This is) endangering the European Union from what it is meant to be, namely a voluntary association,” he said. “(It’s changed into) something that is radically different, into a creditor debtor relationship.” He added that as a result the European Union (EU) now has two-tiers – or two classes – of members. “Currently the power is in the hands of the creditors,” he said with Germany’s government holding most of that power.

A crisis of ignorance Soros viewed the euro zone crisis as “a crisis of ignorance” – a very complicated situation which neither markets nor government authorities had fully understood. There was some optimism on the Union though.

Soros said a new public debate was now beginning. “The understanding of the issues is now catching up with reality…it gives me hope,” he said. Following the global financial crash of 2008, a sovereign debt crisis raged across the continent in 2011 with bailouts needed for several euro zone nations. Austerity followed with tough fiscal tightening required of some of the more indebted countries.

Despite opposition and a rise in fringe politics, the underlying fundamental data in many euro zone countries have improved. These flickering signs of growth have helped the bloc manage to exit a prolonged recession. Meanwhile, the euro has strengthened significantly – since the middle of 2012, it has risen around 13 percent against the dollar.

Soros also criticized Germany’s leadership, saying that it should never insist on austerity policies in a deflationary environment. ‘QE saved the world’ His comments follow the launch of his book “The Tragedy of the European Union,” in which Soros questions whether it is too late to preserve the EU. If the 28-country economic and political union collapsed, the effects would be felt way beyond Europe, according to a press release on Thursday, with “serious economic and political consequences” for both the U.S. and the rest of the world. (Read more: Why Soros and Paulson’s bet on Spain could pay off )

The founder of Soros Fund Management called on European politicians to react to these “unusual circumstances” quickly – and not to cling to old rules for the union that have proved inadequate. He heaped praise on the U.S. Federal’s Reserve’s quantitative easing program (QE), which saw it buy up bonds to lower interest rates and boost money supply.

“Quantitative easing has saved the world from a repeat of The Great Depression,” he added. With regards to the ongoing trouble in Ukraine, Soros stressed that it should be a “wake-up call” to the EU that “people are willing to sacrifice their lives to move closer to Europe.” Gun battles between police and protesters last month resulted in the ousting of former president Viktor Yanukovich but also claimed many lives. -By CNBC.com’s