Archives for November 2013

Record Number of French Corporate Bankruptcies; Socialist Theory vs. Practice; What Went Wrong?

Courtesy of Mish. The number of French business bankruptcies hit a record in the third quarter of 2013 and the yearly total is on a pace that will come close to the total reached in the dark days of the great financial collapse in 2009. Via translation here are a few articles from Le Monde. […]

Most Signs Point To A Significant Market Decline Ahead

Courtesy of Comstock Partners Inc. We would ignore all of the talk on Wall Street and in the media about whether the stock market is in a bubble.  After all, that’s just a matter of semantics, and whatever we call it, the market is overvalued, overbought, and overly bullish at a time when the economy is […]

Wal-Mart: Fairly Valued Retail Powerhouse

Courtesy of www.fastgraphs.com. This Bentonville, AR based mega-retailer perennially ranks amongst the top of the Fortune 500 list and likely needs no introduction. In lieu of a business summary, we thought it might be interesting to highlight some prominent statistics. For instance, every week more than 245 million customers visit Wal-Mart’s (WMT) 11,000 stores under […]

The Official Video from the Federal Reserve on How It Creates Electronic Money

Courtesy of Pam Martens. Official Graphic From the Federal Reserve Showing How It Creates Money Unless you’ve been lost at sea since 2008, you’ve likely heard time and again that the Federal Reserve is creating money out of thin air. Type the words “Federal Reserve creates money AND thin air” into the Google search engine […]

Industry Insiders Provide 2014 Outlook

Courtesy of Larry Doyle. As we navigate even further into uncharted waters, many who visit this site are likely wondering what lurks on the horizon for our markets and economy in 2014. The markets may be typically quiet today and tomorrow with sloppy weather in many parts of our nation and preparation underway for our […]

Jobs vs. Employment Analysis Suggests Huge Obamacare Impact (And Way Less Job Growth than Anyone Thinks)

Courtesy of Mish. Every month (on average), for about a year, there has been a startling discrepancy between employment as measured by the household survey and jobs as reported by the establishment survey. I believe the discrepancy is yet another Obamacare artifact. Jobs vs. Employment Discussion Before diving into the details, it is important to […]

Investors love Obamacare

Courtesy of SoberLook.com Some of the most unpopular policies often create tremendous opportunities. Take the Affordable Care Act for example. While the public is complaining bitterly about this legislation, some investors will be (or already have been) profiting handsomely. Venture capital firms for example are expected to rake it in by funding companies that provide healthcare-related software […]

Why Fed’s taper is essential to stabilize agency MBS liquidity

Courtesy of SoberLook.com While we've discussed some of the economic implications of the Fed's current policy, let's now take a quick look at the impact of QE on the overall mortgage bond market. Here is a simple fact: the amount of mortgage-related securities in the US has been declining since 2008 – after reaching just over $9 […]

October Pending Home Sales Not As Bad As Reported, Actually Pretty Decent

Courtesy of Lee Adler of the Wall Street Examiner Contract volume for sales of existing homes in October were actually much better than media reports suggested. This video gives the details so that you can form an opinion on the basis of the actual data. The chart below was featured in the video. US Housing […]

Confusing Fear Bubbles with Stock Bubbles

Courtesy of Wade of Investing Caffeine With the Dow Jones Industrial Average approaching and now breaking the 16,000 level, there has been a lot of discussion about whether the stock market is an inflating bubble about to burst due to excessive price appreciation? The reality is a fear bubble exists…not a valuation bubble. This fear phenomenon […]

Encrypt Everything, Store Nothing, Leave No Trace! (Dissolving Messages, Wickr, Snapchat)

Courtesy of Mish. US corporations like Google, Facebook, and Microsoft benefit from “safe harbor” treaties with the US that allow those companies exemption from European privacy rules. Then the NSA and FBI came along and forced those companies to put in “back doors” so that nothing is private.  In the latest 100% believable accusation, EU […]

Goldman: Hedge Fund Short Positions

You might be surprised at what crazy, overvalued stocks you're dying to short that you don't find on this list… GOLDMAN: Here Are 25 Stocks That Hedge Funds Are Shorting Like Crazy By SARANYA KAPUR at Business Insider   REUTERS/Jessica Rinaldi The S&P 500 closed at an all-time high of 1,804 on Friday, and Wall Street's short sellers with the […]

Things Investors Should Read. Things Investors Should Avoid.

Things Investors Should Read. Things Investors Should Avoid. By Morgan Housel at The Motley Fool Originally posted on June 11, 2013  YouTube, CBSNewsOnline. This is Warren Buffett's office at Berkshire Hathaway (NYSE: BRK-B  ) headquarters in Omaha, Nebraska. The portrait behind Buffett's right arm is his father. The file bin at the end of the desk reads "TOO HARD." There are […]

All Bulled Up With No Place To Go

All Bulled Up With No Place To Go By James Howard Kunstler      The financial wires and pod-waves are all lit up these days like it was happy hour at the Lottery Winner’s Lounge.  It appears that the American economy — capital management division — has found the long-wished-for magic alternative energy source: horseshit. It […]

Majority in U.S. Say Healthcare Not Government’s Responsibility

Courtesy of Mish. By a 56 to 42 margin, Gallup reports Majority in U.S. Say Healthcare Not Government Responsibility. Question: Do you think it is the responsibility of the federal government to make sure all Americans have healthcare coverage, or is that not the responsibility of the federal government? No Responsibility by Political Party Percentage […]

French Tax Revolts

French Tax Revolts Courtesy of Pater Tenebrarum, Acting Man They're Not Taking It Anymore France's socialist president Francois Hollande, the 'welfare State incarnate' (h/t Gaspard Koenig), is in trouble. Not only has he has become the president with one of the lowest ever recorded approval ratings at a mere 15%, he apparently even feels it necessary to dispatch […]

FTC Investigates Questcor: Serious Jeopardy for Synacthen Deal

FTC Investigates Questcor: Serious Jeopardy for Synacthen Deal Courtesy of Citron Reports  Stock Chart   Gadgets powered by Google Analysts Comments tell you Everything You (and FTC investigators) Need to Know On June 11, Questcor (NASDAQ:QCOR) surprised the investment community with news that it had acquired rights to Synacthen for the United States and up to 40 […]

New York Fed’s Strange New Role: Big Bank Equity Analyst

Courtesy of Pam Martens. For more than two decades, financial columnist John Crudele has been hypothesizing on whether the Federal Reserve has its fingers in the stock market – directly or indirectly. Tampering with stocks is off limits to the Federal Reserve, as far as the public is aware. Its stated function is to serve […]

Will ‘Too Big to Fail’ Banks Charge for Deposits?

Courtesy of Larry Doyle. $82 billion. What does that figure represent? The subsidy (aka competitive advantage) that accrues to our major banking institutions from favorable borrowing rates given their status as ‘too big to fail.’ Those tens of billions of dollars truly represent a nice, big head start for a handful of banks, and a […]

Hussman’s Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect

Courtesy of Mish. John Hussman’s last three weekly emails have been outstanding. Let’s take a look at a couple short snips from the first two articles and then a longer snip from his letter to the Fed. Textbook Pre-Crash Bubble November 11: Textbook Pre-Crash Bubble by John Hussman Hussman: “The problem with bubbles is that […]

Inflation is Raging – If You Know Where to Look

Courtesy of John Rubino. Most people – certainly most governments and economists – define inflation as a general rise in prices. But this is wrong. Inflation is an increase in the money supply, of which a rising general price level is just one possible result – and not the most common one. More often, excessive […]

How Elite Overproduction Brings Disorder

Late weekend reading–this will last all week. Fascinating subject.  How Elite Overproduction Brings Disorder Courtesy of Peter Turchin at the Social Evolution Forum Today Bloomberg.com published my opinion piece in which I analyze the connection between economic inequality and political instability. It starts: Complex human societies, including our own, are fragile. They are held together by an invisible web of mutual […]

Greece’s “Meaningless” Debt; Puppies Beg for Treats; Euro Debate Greece Isn’t Having; Sisyphean Tasks

Courtesy of Mish. Greece’s “Meaningless” Debt The Debt-to-GDP ratio in Greece is now at 175% and rising. Recall Troika statements said anything over 120% was unsustainable. Yet each quarter debt and debt service ratios rise. Now, a new argument has arisen: Greece does not need debt relief because its maturities and payback time are large. […]

Now what?

Now what? Courtesy of Joshua M Brown I try not to make market or economic predictions because they will mostly be wrong. Everyone else is mostly wrong too but most won’t admit it. I will, whatever. While I admit to have no ability to forecast markets, I am a pretty good predictor of what people will […]