Archives for April 2013

20 Signs That The Next Great Economic Depression Has Started In Europe

20 Signs That The Next Great Economic Depression Has Started In Europe Courtesy of Michael Snyder of The Economic Collapse The next Great Depression is already happening – it just hasn't reached the United States yet.  Things in Europe just continue to get worse and worse, and yet most people in the United States still don't […]

Here We Go Again – Builders Hold Lotteries for Right to Buy a House

Courtesy of Mish. Here’s that “froth” thing again: Builders hold lotteries for eager new homebuyers. O’Brien Homes started holding a monthly housing lottery for its 228-unit development called Fusion in Sunnyvale, Calf., after seeing throngs of prospective buyers camp out at the openings of other new condo complexes in the area. Each month, as new […]

33 Months of Falling Retail Sales in Spain; Austerity the Wrong Way

Courtesy of Mish. Guru’s blog in Spanish highlights the dramatic retail spending situation in Spain. Here is a Mish-modified translation. Last month I discussed the retail drama in Spain. March data is more of the same. Sales have fallen 33 consecutive months coupled with 56 months of job destruction. This month overall sales fell by […]

US Homeownership Rate Drops to 1995 Levels

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. When it comes to the US housing market there appear to be three groups of people: those who who have either unlimited cash and/or access to credit, and like the most rabid of bubble-chasing speculators, are perfectly happy to engage in a game of […]

Central Banks and Their Unerring Sense of Timing

Central Banks and Their Unerring Sense of Timing Courtesy of Pater Tenebrarum of Acting-Man blog Central Banks Wade Into Stocks Readers may recall that we have frequently remarked that the fact that central banks have reportedly become fairly large net buyers of gold over the past two years was at best irrelevant and at worst a contrary indicator. […]

How To Make Austerity Work

How To Make Austerity Work Pater Tenebrarum of Acting-Man blog A Question of Spending Discipline and Reform The Baltic States are unique in Europe in that they went through an austerity crash program a while ago already (beginning right after the 2008 crisis) and have in the meantime recovered strongly. Der Spiegel has an interesting […]

Hey guess what – Abenomics is starting to work

Hey guess what – Abenomics is starting to work Courtesy of Joshua M Brown, The Reformed Broker The latest data from Japan indicates a society that is beginning to buy in to the New Nippon and Abenomics. Check this out, from Wall Street Breakfast: Abenomics got a vote of confidence from Japanese consumers in March as household spending […]

The Message Is The Message

Courtesy of Lee Adler of the Wall Street Examiner So I’ve gotten a few things right lately. The stock market keeps rallying. I’ve been pretty steadfastly bullish since last November and published as early as January 23 that the market was headed for 1600. Got that right. Not hard if you face the fact that […]

Now That You Know Wall Street Can Eat Up Two-Thirds of Your 401(k) With Fees, You Should Also Know It Formed a Coalition to Block Full Disclosure of That Fact

Courtesy of Pam Martens. Last week we reported on a PBS Frontline program showing that a 2 percent mutual fund management fee can gobble up two-thirds of your nest egg for retirement over a span of 50 years of saving. Now comes an equally ugly truth.  Since at least 1998 the U.S. Department of Labor, […]

Book Reviews: Bailout, Confidence Men

Courtesy of Larry Doyle. If the American public is concerned about the dysfunction within Washington D.C., after reading two inside editions on the games being played within our nation’s capital, the public should be even more concerned than ever. I recently completed two enlightening books, Confidence Men by Ron Suskind and Bailout by Neil Barofsky. […]

Is the US Spending Enough on Education?

Courtesy of Mish. Given the constant chatter from the Obama administration and from teachers’ unions on the need to spend more for public education, let’s address the question “Is the US spending enough on education?” I propose we look at the stats in graphical form starting with charts of population and total spending, culminating with […]

Bond Bubble Goes Full Retard

The minute you send Rwanda or Ghana your money, it’s gone. But you won’t know it for awhile.  Rwanda is borrowing foreign currency – US dollars – offering a tempting 7% interest. But the likelihood of getting principal back is zero, though the country will probably pay some interest while the game is alive. Most […]

Egypt’s economic woes becoming acute

Egypt's economic woes becoming acute Courtesy of Sober Look The Washington Post recently published a story on Egypt's growing black market, which is rapidly replacing the "official" economy. WP: – Egypt’s rapidly expanding black market for fuel — and for foodstuffs, other commodities and U.S. dollars — may be the most tangible illustration of just how […]

“Read 500 pages like this every day…”

“Read 500 pages like this every day…” Courtesy of Joshua M Brown, The Reformed Broker “Read 500 pages like this every day…That's how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.” – Warren Buffett My favorite article from this weekend […]

Wishes, Fantasies, Delusions, And Dumbasses

We Wish By James Howard Kunstler Wishful thinking now runs so thick and deep across the USA that our hopes for a credible future are being drowned in a tidal wave of yellow smiley-face stories recklessly issued by institutions that ought to know better. A case in point is the Charles C. Mann’s tragically dumb […]

A slowdown in US lending or a ramp up in shadow banking

A slowdown in US lending or a ramp up in shadow banking Courtesy of Sober Looking We've received a number of emails pointing to what looks like a slowdown in lending by US-chartered banks. The amount of loans and leases on balance sheets of US banks has stopped growing. As in 2009 and 2011, some people […]

Weaponized America: Sturm, Ruger Backlog Doubles; Gun Production, Shipments Surge

Weaponized America: Sturm, Ruger Backlog Doubles; Gun Production, Shipments Surge Courtesy of ZeroHedge Whether it is due to the recent governmental attempt to enforce assorted gun controlling measures in the aftermath of the Newtown, CT shooting, or, merely driven by the same catalyst that saw a surge in gun sales four years ago, namely the presidential […]

“Freely Traded Markets Are An Anachronism; Fundamental Rules No Longer Apply”

"Freely Traded Markets Are An Anachronism; Fundamental Rules No Longer Apply" Courtesy of Lance Roberts of Street Talk Live March Spending Driven By Surge In Services The latest personal income and expenditure report for March was of particularly interesting reading.  However, as opposed to the mainstream headlines that immediately reported that despite higher payroll taxes consumers […]

Bond-Choking Central Banks Expand Investment Menu

Bond-Choking Central Banks Expand Investment Menu Courtesy of Wade of Investing Caffeine Central banks around the globe are choking on low-yielding bonds, and as result are now expanding their investment menu beyond Treasuries into equities. Expansionary monetary policies purchasing short-term, low-rate bonds means that central banks have been gobbling up securities on their balance sheets that […]

Revolving Door Goes Both Ways

Revolving Door Goes Both Ways: Morgan Stanley Hires Former Treasury Staffer To Head Corporate Affairs Courtesy of ZeroHedge Think the revolving door for Morgan Stanley's diaspora of clutch interests goes only from the private sector outward, with the recent appointment of MS' darling Mary Jo White (who will promptly recuse herself in virtually all major cases […]

Fed Mortgage Subsidy Drives Buying Panic In Existing Homes To Bubble Levels

Courtesy of Lee Adler of the Wall Street Examiner The NAR Pending Home Sales data for March is a measure of current sales as of the date of the contract. It’s the closest thing we have to a real time measure of sales activity in the existing home market. The NAR’s “Existing Home Sales” represents […]

Increasing Likelihood of Unstable German Coalition Following Next Elections

Courtesy of Mish. Following my April 23 political prediction Merkel Loses Chancellorship in September as Support for AfD Soars, I received many emails from readers suggesting I was engaged in wishful thinking, that German polls are unreliable, that I was following the wrong polls, etc. I am sticking with what I said. I simply do […]

Wall Street Is A Rentier Rip-Off

Wall Street Is A Rentier Rip-Off: Index Funds Beat 99.6% Of Managers Over Ten Years Courtesy of Charles Hugh-Smith of Of Two Minds The entire financial management industry is a profit-skimming rentier arrangement. It may seem uncharitable to note that only .4%–that's 4/10th of 1%–of mutual fund managers outperform a plain-vanilla S&P 500 index fund over […]

Mary Jo White About to Get Off to a Bad Start

Mary Jo White About to Get Off to a Bad Start Courtesy of Yves Smith, Naked Capitalism Your humble blogger was surprised when Obama nominated Mary Jo White to head the SEC, since her reputation as a tough prosecutor is at odds with Obama’s well established pattern of catering to banks (the fact that he gives them only 97% […]