Market Shadows Update (11/21/14)


The Virtual Value Portfolio and Virtual Put-Selling Portfolio were updated on Nov. 21. The Put-Selling portfolio is winding down (Paul). I will not be updating it, Paul might. 

Market Shadows began as the “best of the blogging world” news on financial and [Continue Reading]

Lower Oil Prices And The U.S. Economy

Lower Oil Prices And The U.S. Economy

Courtesy of James Hamilton of

For the last 4 years, the national average retail price of gasoline in the United States stayed within a range of $3.25-$4.00 a [Continue Reading]

The Fed Concerned About “Importing” Disinflation

The Fed Concerned About "Importing" Disinflation

Courtesy of

The latest Reuters poll is showing 24 out of 43 economists projecting the first rate hike in the U.S. by June of next year. The futures market is pricing [Continue Reading]

The Consequences of Imposing Negative Interest Rates

Courtesy of Pater Tenebrarum of Acting-Man

Negative Interest Rates and Capital Consumption

Ever since the ECB has introduced negative interest rates on its deposit facility, people have been waiting for commercial banks to react. After all, they are effectively losing money as a result of this bizarre directive, on excess reserves [Continue Reading]

Wrong Three Ways: Europe Not at Risk of Full-Blown Deflation Says ECB Vice President


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Wrong Three Ways: Europe Not at Risk of Full-Blown Deflation Says ECB [Continue Reading]

Who’s Ready For $30 Oil?

Courtesy of The Automatic Earth.

Jack Delano Spectators at annual barrel rolling contest in Presque Isle, Maine Oct 1940

How low can and will oil prices go, and what will the effects of those [Continue Reading]

Politics is Economics in the Week Ahead

Courtesy of Marc To Market

Many people assume that politics and economics are separate spheres.  We find ourselves often harkening back to the even older tradition of referring to "political economy." After all it was Harold Laswell, who is regarded as the father of modern political science, that [Continue Reading]

Pity the Sub-Genius

Courtesy of Tim Knight of Slope of Hope

From the Slope of Hope: They say be careful what you wish for. And, as is often the case, "they" are right.

As a kid, I [Continue Reading]

“Eagle Cam”: Aerial View of London via Video Camera Attached to an Eagle

Courtesy of Mish.

An eagle got an impressive birds-eye-view of London this week, flying over the city’s most iconic landmarks using a Sony HDR-AZ1VR Action Cam attached to its back.

Link if video does not play: [Continue Reading]

On The Looming Wall Of Chinese Defaults, Restructuring Firm Warns “You Know It’s Coming”


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Courtesy of ZeroHedge. View original post here.

The [Continue Reading]

UKIP Picks Up Second Seat Following Tory Defection, Two More Coming Up?


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Courtesy of Mish.

The first one or two people doing something can hardly be called a trend. Yet, all trends start with a movement of One.

UKIP [Continue Reading]

Sell, Sell, Sell… Central Bank Madmen Are Raging

Sell, Sell, Sell… Central Bank Madmen Are Raging

Courtesy of David Stockman via Contra Corner 

The global financial system has come unglued. Everywhere the real world evidence points to cooling [Continue Reading]

Here’s Why the Fed has been More Insane Than the PBoC, and the ECB Tries but Fails

Here’s Why The Fed Has Been More Insane Than the PBoC, and The ECB Tries But Fails?

Courtesy of Lee Adler [Continue Reading]

Everyone Wants Dollars (Again)

Courtesy of Marc To Market

A new phase in the markets began this month. The Federal Reserve ended its QE3+ purchases. The Bank of Japan unexpectedly and dramatically stepped up its asset purchases under its QQE operations.  The government's largest pension fund announced aggressive portfolio diversification plan. 

Contrary [Continue Reading]

Why the Economy Isn’t Slowing and Why That’s Bearish

Why The Economy Isn’t Slowing and Why That’s Bearish (Video)

Courtesy of Lee Adler of the Wall Street Examiner

Housing may be slowing, but the broader economy isn’t. [Continue Reading]

View From Far Above

Courtesy of Tim Knight from Slope of Hope.

As the entire world knows by now, China joined the rest of the world's central banks in more "easing", which sent markets into a spastic move higher. As you can see by this view of the [Continue Reading]

Bloomberg Sensationalism and Inaccuracies Regarding “Forced Nationalization of Crimea”

Courtesy of Mish.

A few days ago a friend emailed the Bloomberg article Russia Delivers a New Shock to Crimean Business: Forced Nationalization.

I replied something along the lines of "interesting, but [Continue Reading]

Nick Colas: Ten Signs You’ve Been on Wall Street Too Long

Uh oh, I was just in the car the other day explaining the three points about why one of the only worthwhile country songs, The Gambler, actually applies to everything in life from 1) the stock market (obviously) to 2) relationships to 3) career moves. My favorite [Continue Reading]

Central Bankers, Fear and Other Bad Counselors

Courtesy of The Automatic Earth.

NPC US Navy photographers March 24, 1925

The original idea behind a central bank is that medium and longer term monetary policy should not be allowed to be held [Continue Reading]

Reply From Pettis on Spain; Prisoner’s Dilemma in Reverse; EMU End Game

Courtesy of Mish.

In response to Spain Needs to Debate Leaving the Euro; Tooth Fairy Economics I received a nice email from Michael Pettis confirming my translation was correct. He also [Continue Reading]

Hugh Hendry And The Deflationary Zeitgeist

Courtesy of The Automatic Earth.

Jack Delano Colored drivers entrance, U.S. 1, NY Avenue, Washington, DC Jun 1940

It’s funny how things roll at times. When I wrote yesterday’s [Continue Reading]

Have Central Banks Entered An Undeclared War?

Courtesy of Charles Hugh-Smith of OfTwoMinds

The monetary tectonic plates are shifting, and predicting the next global financial earthquake is relatively easy.

I recently suggested that the devaluation of the yen was Japan's Monetary Pearl Harbor: a direct attack [Continue Reading]

Deutsche Bank: “People Are Talking About Helicopter Money And Debt Cancellation Being The End Game”

Courtesy of ZeroHedge. View original post here.

If Deutsche Bank's Jim Reid is right, what just took place overnight from the PBOC is just a pleasant start and an enjoyable dress rehearsal of what is about to take place. Where [Continue Reading]

Output Gap Idiocy; Shaky Accounting EU and US Style



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Courtesy of Mish.

Shaky Accounting EU Style

Inquiring minds note that Italy [Continue Reading]

Jobless Claims Below 300,000 for Tenth Straight Week

Jobless Claims Below 300,000 for Tenth Straight Week

Courteys of 


The number of Americans filing new claims for unemployment benefits fell less than expected last [Continue Reading]

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