Archives for September 2012

What If I Am Wrong About Europe?

Courtesy of Mish. I have long stated the eurozone will breakup. Historically speaking, no currency union has ever survived in the absence of a political union. Moreover, in It’s Just Impossible I noted The Bundesbank said there should be no banking union until there is a fiscal union. Angela Merkel said that there should be […]

At Some Point the Hat Runs out of Rabbits

At Some Point the Hat Runs out of Rabbits; First Catalonia, Now Basque Separatists Call for Independent Country; El Pais Survey Shows 43% Catalans For Independence, 41% Opposed Courtesy of Mish. Calls for the splintering of Spain have picked up steam. Euskal Herria Bildu (EHB, a left-wing, Basque nationalist party) has called for "A Great […]

China Manufacturing Disappoints Expansion Expectation, Contracts for Second Month

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Following HSBC's PMI data, China's official Manufacturing PMI just printed well below economists' expectations and is now signaling contraction for the second month in a row. Critically the expectation was for a return to expansion at 50.1 but the data came at 49.8 – […]

QE Winners and Losers

QE Winners and Losers Courtesy of  Springheel Jack What effect has QE had on various investment classes in the past? Presumably, though not necessarily, we may see similar moves this time. The chart below shows the losers from QE1 and QE2 charted against the SPX chart. Equities were a big winner both times. The losers were […]

Case for a Nasdaq Decline

Case for a Nasdaq Decline Courtesy of Allan of Allan Trends Weekend Market Analysis My prior life was that of an attorney and early in my legal career I learned that basic elements that apply to just about any legal case: Facts. Issue. Law. Reasoning. Judgment. From this basic outline flows the judicial framework that makes […]

Importance of Patience and Persistence in Trading

Importance of Patience and Persistence in Trading  View the lesson learned from a dramatic sell-off in the E-Mini S&P 500 in this educational video clip by Elliott Wave International. EWI Senior Analyst Jeffrey Kennedy combines actionable advice that's easy to understand with a no-nonsense take on trading psychology. You can get immediate access to additional trading […]

Britain’s Labour leader vows to break up banks

Britain's Labour leader vows to break up banks (via AFP) Britain's opposition Labour leader Ed Miliband vowed on Sunday to break up the country's biggest banks if his party comes to power at the next general election. Miliband, whose party enjoys a 10-point lead in the latest polls, told the Observer newspaper that Labour would […]

Britain's Labour leader vows to break up banks

Britain's Labour leader vows to break up banks (via AFP) Britain's opposition Labour leader Ed Miliband vowed on Sunday to break up the country's biggest banks if his party comes to power at the next general election. Miliband, whose party enjoys a 10-point lead in the latest polls, told the Observer newspaper that Labour would […]

Massive Microbial Population Colonized Land 2.75 Billion Years Ago

Massive Microbial Population Colonized Land 2.75 Billion Years Ago (via Planetsave) New research from the University of Washington is suggesting that the earliest land microbes were probably much more widespread than previously thought, creating oxygen and weathering pyrite, which is an iron sulfide mineral that releases sulfur and molybdenum into the oceans when ‘weathered.’…

Rent or own? The new sharing economy values access over ownership

Rent or own? The new sharing economy values access over ownership (via The Christian Science Monitor) Lisa Gansky likes to share, and usually with strangers. A typical day for her looks something like this: •She leaves her house in Napa, Calif., at 7:30 a.m. and drives to the ferry, parks her Mini Cooper, and takes the […]

Thousands on Paris streets to denounce EU ‘austerity’ pact

Thousands on Paris streets to denounce EU 'austerity' pact (via AFP) Thousands of left-wing protesters took to the streets of Paris on Sunday to denounce the European Union fiscal pact forcing governments to stick to tough deficit limits. Chanting "Resistance!", protesters marched through central Paris in a rally organisers said was aimed at fighting EU-imposed […]

Thousands on Paris streets to denounce EU 'austerity' pact

Thousands on Paris streets to denounce EU 'austerity' pact (via AFP) Thousands of left-wing protesters took to the streets of Paris on Sunday to denounce the European Union fiscal pact forcing governments to stick to tough deficit limits. Chanting "Resistance!", protesters marched through central Paris in a rally organisers said was aimed at fighting EU-imposed […]

Austerity Programs Hit France; Marchers Demand Vote on Treaty; Hollande Reneges on Campaign Promise

Courtesy of Mish. Following protests in Portugal, Spain, and Greece, a wave of Leftists march in Paris against austerity. Thousands of leftists marched through Paris on Sunday demanding a referendum on the EU’s new fiscal discipline treaty in the latest of a series of anti-austerity protests in countries hit by the eurozone crisis. The demonstration, […]

With central banks flooding the world with cash, how can Treasuries and stocks sell off? Professional Edition

Courtesy of Lee Adler of the Wall Street Examiner Here are a few of the key bullet points from this week’s report. • The Fed’s purchases of $85 billion this month in MBS and net Treasury purchases from Primary Dealers under Operation Twist will be enough to fund almost 100% of new Treasury supply. • […]

Uncertainty And Risk In The Suicide Pool

Uncertainty And Risk In The Suicide Pool tonic_witch at www.flickr.com via business insider  Courtesy of John Mauldin, Thoughts from the Frontline  “By ‘uncertain’ knowledge, let me explain, I do not mean merely to distinguish what is known for certain from what is only probable. The game of roulette is not subject, in this sense, to uncertainty; nor […]

Electronic Arts – Revenge of the Nerd

Courtesy of Vitaliy Katsenelson. I wrote article for Institutional Investor Magazine article about Electronic Arts in May 2012.  My monthly column limits me to 800 words (you can read it here), but here is a longer, unabridged version (I forgot to post it here).  I had the pleasure to present EA at the FAME conference in […]

Durable Goods Orders Really Did Stink, But Does It Matter?

Courtesy of Lee Adler of the Wall Street Examiner Real Durable Goods Orders Chart- Click to enlarge 9/27/12 August Real Durable Goods Orders, adjusted for inflation and not seasonally manipulated, dropped 8.3% year over year. That compares with a 5% year to year gain in July. It was the first drop since March, and the […]

JPMorgan, Bank of America Forgive Debts that No Longer Exist

JPMorgan, Bank of America Forgive Debts that No Longer Exist; Wonderful News! But For Whom? Courtesy of Mish. In February, five of the nation’s largest banks agreed on a $25 billion settlement over widespread, systemic mortgage fraud and related issues. The $25 Billion Deal, announced with huge fanfare, was supposed to help up to a […]

BBC and NPR’s Marketplace Now Officially Part of the Problem

Courtesy of Jaime Falcon. Another whitewash of the causes of the crisis. I give this show a 3 out of 10. It is so disappointing to have NPR and BBC do such pathetic work. If the BBC and NPR were were serious about getting to the core of the issue, they would have Bill Black […]

BBC and NPR's Marketplace Now Officially Part of the Problem

Courtesy of Jaime Falcon. Another whitewash of the causes of the crisis. I give this show a 3 out of 10. It is so disappointing to have NPR and BBC do such pathetic work. If the BBC and NPR were were serious about getting to the core of the issue, they would have Bill Black […]

A Financial Coup d'Etat, the Credibility Trap, and What Must Be Done

A Financial Coup d'Etat, the Credibility Trap, and What Must Be Done Courtesy of Jesse's Cafe Americain These two statements on the credibility trap and reform are from the bottom of my blog, and a permanent fixture to the layout of the site. I wanted to take a moment to remind you of them, because they can […]

Judges to Review Constitutionality of NDAA Military Detention Legislation

Judges to Review Constitutionality of NDAA Military Detention Legislation Courtesy of Naked Capitalism Chris Hedges, whose column is published Mondays on Truthdig, spent nearly two decades as a foreign correspondent in Central America, the Middle East, Africa and the Balkans. His book War Is a Force That Gives Us Meaning (2003) was a finalist for the National Book […]

How Bad Was The Great Depression?

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. To properly understand the events of the time (and to put them in today's context), we believe, like the FEE, that it is factually appropriate to view the Great Depression as not one, but four consecutive downturns rolled into one. These four “phases” are: […]

Will Markets Go Overnight From ‘Don’t Fight the Fed’ to ‘Pushing on a String’?

Courtesy of Russ Winter of Winter Watch at Wall Street Examiner “Things do not happen. Things are made to happen.” ~ John F. Kennedy Ultimately the markets will need to see improvements in economic fundamentals from QE3.  Fed president Charles Plosser says the economy is immune to Fed stimulus. At this stage, I predict that the real […]