China’s Economy, Internal And External Balance

China's Economy, Internal And External Balance

Courtesy of Michael Pettis of China Financial Markets

I was recently asked by an Australian economics journal to write a review [Continue Reading]

“Terrifically vexing but a wonderful opportunity”

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“Terrifically vexing but a wonderful opportunity”

Is it time to consider investing in gold?

I think so. Reasons: (1) its performance has been horrible and at some point the bleeding will stop. (Don’t over-generalize this reasoning, not all bleeding stops.) (2) Gold has inherent value as [Continue Reading]

Venezuela’s Hyperinflation Crack-Up Boom On Its Way To Outer Space

If you haven't been following the stock market and the economy during the past seven years, repeat after me: "Stock Markets Are Not an Indicator of the Economy, Stock Markets Are Not an Indicator of the Economy, Stock Markets Are Not an Indicator of the Economy…" I think we have this cleared up now. 

Courtesy of [Continue Reading]

Bubble, Bubble, Toil, & Trouble: When Authorities Buy Assets To Prop Up Markets

Courtesy of Charles Hugh-Smith of OfTwoMinds

The actual line from Shakespeare's Macbeth is double, double, toil and [Continue Reading]

When the flood comes


When the flood comes

Courtesy of Joshua M Brown

 . . . on that day all the fountains of the great deep were broken up, and the windows of heaven were opened. And the rain was on the [Continue Reading]

Jim Grant On Gold’s Liquidation Sale: A “Vexing But Wonderful Opportunity”

Courtesy of Valuewalk

Don’t tell Jim Grant, the publisher of Grant’s Interest Rate Observer, that gold is a hedge.

The author and publisher said the metal is much more dynamic; providing a trifecta of price, value and sentiment, and investors should have exposure to it.

“[G]old is an investment in monetary and financial [Continue Reading]

5 Things To Ponder: Shades Of Risk

Courtesy of Lance Roberts via STA Wealth Management

Is it just me? Last week while on vacation, the markets surged back to all-time highs as the Greek and China problems were solved. Unfortunately, as I left the white, sandy beaches and clear ocean waters behind me to [Continue Reading]

Top 10 Reasons why Zillow Breaks $40

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Top 10 Reasons why Zillow Breaks $40

Courtesy of Citron Reports

TrueCar and Bankrate Tell Us how Wall Street Values Lead Generation Businesses

Citron Research has been skeptical of Zillow [Continue Reading]

Copper, China And World Trade Are All Screaming That The Next Economic Crisis Is Here

Courtesy of Michael Snyder of The Economic Collapse

If you are looking for a “canary in a coal mine” type of warning for the entire global economy, you have a whole bunch to pick from right now. “Dr. Copper” just hit a six year low, Morgan Stanley [Continue Reading]

You Need to Get Your Head Examined If You Own HP or Intel Shares

Did Tony Sagami miss a dot or two with a premature call for the death of PCs, and for Intel (and maybe HP)? The graphic below shows the revenue categories for Intel's products. It shows that Intel is moving its business into other areas besides the PC (Internet of Things, Mobile, Data). Further, Intel is not a [Continue Reading]

New Home Sales Unexpectedly Decline 6.8%, April and May Revised Lower; Writers Still Upbeat

Courtesy of Mish.

New home sales unexpectedly plunged 6.8% to 482,000 annualized units, far below any Bloomberg Consensus Estimate.

Volatility is common for new home sales and there's plenty of it the June report where the headline plunged 6.8 percent to [Continue Reading]

Central Banks Ready To Panic – Again

Courtesy of John Rubino.

Less than a decade after a housing/derivatives bubble nearly wiped out the global financial system, a new and much bigger commodities/derivatives bubble is threatening to finish the job. Raw materials are tanking as capital pours out of the most heavily-impacted countries and into anything [Continue Reading]

NJ Pension Officials Don’t Understand the Relationship Between Risk and Reward


NJ Pension Officials Don’t Understand the Relationship Between Risk and Reward

Courtesy of Joshua M. Brown

The State of New Jersey is paying some $600 million in annual fees to hedge [Continue Reading]

Gold vs Interest Rates


Gold vs Interest Rates

Courtesy of 

The bearish case for spot gold prices here, according to Morgan Stanley, involves a worsening demand picture from China coinciding with a rise in rates [Continue Reading]

China Manufacturing PMI Hits 15-Month Low: Is This a Big Deal?

Courtesy of Mish.

I have been bearish on China manufacturing and growth in general for years. It is no surprise to me that news is generally negative.

For example, on news today that China's PMI "unexpectedly" declined Yahoo!Finance reported [Continue Reading]

What Blows Up Next? Part 1: Resource-Based Economies

Courtesy of John Rubino.

The Great Recession and its aftermath was actually the best of times for countries with natural resources to sell. The US, Europe and Japan ran record deficits and cut interest rates to zero or thereabouts, sending hot money pouring into mining and energy projects [Continue Reading]

Hoisington Quarterly Review and Outlook – Second Quarter 2015


Outside the Box: Hoisington Quarterly Review and Outlook – Second Quarter 2015

Courtesy of John Mauldin

In today’s Outside the Box, my good friend Lacy Hunt of Hoisington Investment Management reminds us that since the 1990-91 recession, the 30-year [Continue Reading]

3 Things: Steel, Sentiment, & Productivity


Courtesy of Lance Roberts via STA Wealth Management

Strength Of Steel

Yesterday, I discussed the issues surrounding the Fed's ongoing determination to hike interest rates despite evidence of a weakening economic environment. E.g.

"The Federal Reserve raises interest rates to slow economic [Continue Reading]

What Happens When Public Unions Control Everything for Decades? (Hint: Look at Chicago and the State of Illinois)

Courtesy of Mish.

I will be on CNBC again Friday, with Rick Santelli. This will be my third appearance, all discussing the sorry state of affairs in Chicago.

Spotlight will likely be on my post a week ago: [Continue Reading]

Gearing Up for More War in Ukraine?

Courtesy of Mish.

In spite of near continuous ceasefire breakages on both sides in Ukraine, media has turned its attention elsewhere, especially to Greece and China.

Today I have some Ukraine anecdotes from reader Steven, who lives in Prague. He has family ties to Ukraine. Steven writes ….

Hi Mish,

Here are [Continue Reading]

The Hard Truth: For Retail Investors, The NYSE Is Always Out Of Service

So, Retail Stock Traders, if you get the feeling you are not getting the best prices, it's because, well, you're not.

Courtesy of Nanex

1. Charts of the Event.

On July 8, 2015 at 11:32:57, trades and quotes stopped updating from the NYSE. Trading eventually resumed at 3:10pm.

Timeline up to the halt.

Trades from [Continue Reading]

Is The Echo Housing Bubble About To Burst?

Courtesy of Charles Hugh-Smith, Of Two Minds

Speculative bubbles that burst are often followed by an echo bubble, as many participants continue to believe that the crash was only a temporary setback.

The U.S. housing market is experiencing a classic echo bubble. Exhibit A is the Case-Shiller Housing Index for [Continue Reading]

Weekly Unemployment Claims Lowest in 41 Years

Courtesy of Mish.

Weekly initial unemployment claims fell to the Lowest level Since 1973, perhaps distorted by auto retooling summer shutdowns, or lack thereof.
The number of Americans filing new applications for unemployment benefits last week dropped to its lowest level [Continue Reading]

JPMorgan Chase Closes at All-Time High – As Financial Crises Sprout Like ’08

Courtesy of Pam Martens.

JPMorgan Chase’s Stock Chart, July 16, 2008 Through August 11, 2008

From the looks of JPMorgan’s share price, one would think the financial world is bathing in a sea of tranquility rather than experiencing crashing commodity prices, tremors in [Continue Reading]