Archives for August 2013

Japan Seeks to Hike Taxes then Waste Money on Stimulus to Make Up for Decline in Spending; Currency Crisis Awaits

Courtesy of Mish. Politicians and economic illiterates frequently assume two wrongs make a right. Here is a case in point: Japan panel backs sales tax hike coupled with stimulus. Japan’s government won backing for a controversial decision to raise the national sales tax in 2014 after influential members of a special advisory panel said the […]

If You Want To Know Why Things Are Falling Apart, Look At Total Debt

Courtesy of Charles Hugh-Smith of OfTwoMinds We are in a long-term trend where additional debt undermines the system as the positive returns on that debt turn negative. Want to know why things are falling apart? Just look at our soaring systemic debt and the diminishing returns on that debt. Our Chartist Friend from Pittsburgh has assembled a comprehensive series […]

Wall Street Knows a Bad Trade When it Sees One

Wall Street Knows a Bad Trade When it Sees One Courtesy of Joshua M Brown Wall Streeters are conditioned to know a bad trade when they see one. They tend to view most life decisions through the prism of risk and reward, just as they do buy and sell decisions each day at the office. In […]

Treasury Sucks While Fed Pumps, But Markets Go Limp

Courtesy of Lee Adler of the Wall Street Examiner (My notes in italics and emphases in bold ~ Ilene) Excerpts: The Treasury added more unexpected supply last week. (Much of the Treasury’s supply gets paid for by the Primary Dealers, leaving them with less money to buy stocks.) It has now sucked out all of the cash the […]

Berlusconi Threatens to Topple Italian Government if Expelled From Senate

Courtesy of Mish. Former prime minister Silvio Berlusconi, convicted of tax fraud, Threatens to Topple Letta If Expelled From Senate Silvio Berlusconi threatened to bring down the Italian government if Prime Minister Enrico Letta’s Democratic Party votes to expel the three-time former premier from the Senate. “We’re not available to keep the government going if […]

Why Google Glass Will Fail Miserably

Courtesy of Tim Knight from Slope of Hope By now I imagine most of you have heard of the forthcoming Google Glass product. These are the eyeglasses which, when worn, allow a person to bark out commands and do things like take a picture or a video of what they are seeing, do a Google search, or help […]

Chart o’ the Day: Significance of 90% Down Days

Chart o’ the Day: Significance of 90% Down Days Courtesy of Joshua M Brown, The Reformed Broker Are we close to the end of a correction once the market prints a 90% down day (in which 90% or more of volume on the exchange is in declining stocks)? My pal Jonathan Krinsky, chartered market technician and […]

Michael Mauboussin on Crowded Trades

Michael Mauboussin on Crowded Trades Courtesy of Joshua M Brown Michael Mauboussin's book about untangling the results we generate from skill and from pure luck lit up the investment biz upon its release last fall. Since then, his work has been widely referenced virtually everywhere people are seriously trying to understand results and randomness. Quick shameless plug – […]

Did The Fed’s QE Really Drive Down Long Term Rates?

Courtesy of Lee Adler of the Wall Street Examiner This video by Wall Street Examiner Productions answers the question. If you are receiving this by email, click here to view. Get regular updates the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, in the Fed Report in the […]

Mark Hulbert on Stocks in September

Courtesy of Joshua M Brown, The Reformed Broker Mark Hulbert makes a nuanced point in his MarketWatrch column about the historical behavior of stocks during the month of September. On the one hand, he finds that this is really and truly the cruelest month… Let me first review the impressive statistics behind September’s terrible reputation. Since […]

No one wants it, but we’ll have a little war anyway

BY ALEX PAREENE, SALON Barack Obama is president now because he opposed a war, from the start. I imagine Ed Miliband knows this. I think he also knows that his Labour colleague Tony Blair is among the most reviled people in Great Britain, a nation that really knows how to revile. So Miliband, the leader of the U.K. […]

GE is Exiting Retail Lending

By Kate Linebaugh, The Wall Street Journal General Electric Co. is preparing to spin off one of its most important financial assets—the unit that issues store credit cards for 55 million Americans—as it retreats from one of the high-growth businesses that defined the modern conglomerate. The decision to divest the business, amid concerns about the company's […]

Stocks, Gold or Oil–Your Call

By Paul Price Oil, Gold or Stocks? Only one beat inflation since 1980. Middle-Eastern tensions have sent oil prices soaring. Worldwide Central Bank QE programs (money printing) have driven investors out of fiat-based currencies and into hard assets and commodities. Did owning oil or gold work to protect real wealth since inflation got truly ugly in […]

Judge Disses CalPERS Lawsuit Hoping to Stop San Bernardino Bankruptcy; City Eligible “as a matter of law based on incontrovertible facts”

Courtesy of Mish. In a common sense ruling sure to have union advocates howling, a Federal judge says San Bernardino, California eligible for bankruptcy Judge Meredith Jury of the U.S. Bankruptcy Court for the Central District of California, said the city of 210,000, located 60 miles east of Los Angeles, was eligible for bankruptcy protection […]

When Printing Money Loses Its Magic

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. The magic was the magnificent illusion that money printing increased wealth. It certainly looked that way, despite all the common-sense interpretation that would have you believe that it doesn't. But that's the beauty of a wonderfully performed magic trick. Something impossible seems to happen. […]

Oil, Gold, or Stocks – Your Call

By Paul Price Oil, Gold or Stocks? Only one beat inflation since 1980. Middle-Eastern tensions have sent oil prices soaring. Worldwide Central Bank QE programs (money printing) have driven investors out of fiat-based currencies and into hard assets and commodities. Did owning oil or gold work to protect real wealth since inflation got truly ugly […]

Freedom Fries are Out – French Fries and French Toast Back In

Courtesy of Mish. UK Will Not Join War Against Syria Yesterday UK Prime Minister David Cameron Lost House of Commons Vote on Syria. Western efforts to co-ordinate action against the Assad regime in Syria over charges of chemical attacks against civilians were dealt a blow on Thursday night when UK prime minister David Cameron lost […]

The Crisis, the Causes, the Aftermath

Courtesy of Jaime Falcon. John Titus, who created the movie BAILOUT, contacted me last week to discuss a new project that he is working on. The question he is tackling is, “How is it that 1075 elite executives were imprisoned following the S&L crisis, and not one was even charged following our more recent crisis?” […]

Wal-Mart is not Costco; So Why Should it Pay Like Costco?

Note: Costco also collects yearly fees, Walmart does not…. Courtesy of Mish. President Obama, the unions, and Democrats in general are attempting to force Wal-Mart to raise its minimum wage. In Seattle, there is an absurd push by activists to raise the minimum wage to $15 per hour for fast food workers, retail clerks, baristas […]

The Biggest Wall Street Banks Are Doing Fine, Set To Beat 2009 Pay Levels

The Biggest Wall Street Banks Are Doing Fine, Set To Beat 2009 Pay Levels Courtesy of Jesse's Cafe Americain Not bad for a small set of TBTF Banks that are still being heavily subsidized by the sacrifice of the public. But they work really hard, and have a lot of very important expenses with which […]

Age-Related Forgetfulness Tied to Diminished Brain Protein

Typical age-related forgetfulness and Alzheimer's disease follow distinct courses involving different neural circuits. Not much is yet known about natural, age-related memory loss.  In a Science Translational Medicine article, Memory Protein Fades With Age, researches reported on a gene that reduced its expression by about 50% with age in both human and rodent tissues. The gene codes for a protein, called RbAp48, which regulates gene expression in the […]

Celebrating Life: Greetings From Germany

Courtesy of Mish. Greetings from Munich and Rothenburg ob der Tauber,  in Germany. Actually, I am now back in the states, having returned from a fantastic European trip with Liz, on a delayed honeymoon following our June wedding. Click on any image below for a larger, sharper view. Rothenburg ob der Tauber is rated as […]

Here’s Why First Time Claims Support Fed Tapering and A Hostile Environment For Stocks

Courtesy of Lee Adler of the Wall Street Examiner Initial claims for unemployment compensation declined at an annual rate of 11.3% last week, which was slightly faster than last week’s 10.1% rate and better than the average of the past two years. The data continues to allow the Fed an excuse to taper QE in September. […]

Reflections on Peak Oil, India, Asia, and Global Growth; What’s the Mathematical Outcome?

Courtesy of Mish. In response to Currency Lessons: Think a Sinking Currency is Always Good For Manufacturers? my friend "BC" pinged me with a few comments. India has a trade deficit of 10% of GDP. 70% of India electricity generation is from fossil fuels. 100% of India oil consumption is imported. 20% of India natural […]