Archives for December 2013

Gary Shilling: Review and Forecast

Gary Shilling: Review and Forecast Courtesy of John Mauldin, Thoughts from the Frontline Should auld acquaintance be forgot And never brought to mind? Should auld acquaintance be forgot, And auld lang syne! For auld lang syne, my dear, For auld lang syne, We'll take a cup o' kindness yet For auld lang syne It's that […]

France Seeks Another Tax on Facebook, Google And YouTube, to Finance “French Culture” Cinema

Courtesy of Mish. The economic stupidity in France is astounding. It’s hard keeping up with all the inane ideas of President Francois Hollande’s socialist administration. Here’s another one of Hollande’s ideas for your amusement. RT reports French broadcasting watchdog CSA eager to tax YouTube, Facebook, Dailymotion France’s Superior Council of Audiovisual, an independent broadcasting authority, […]

Monetary policy under financial repression

Monetary policy under financial repression Courtesy of Michael Pettis  Following Paul Krugman’s lead I guess I can refer to this post as being “wonkish”. Much of it is based on my recent book Avoiding the Fall (Carnegie Endowment, September 2013). In order to understand much of what is happening in China I believe it is crucially important to […]

Obamacare Showdown: Missouri Bill to Gut Obamacare, Ban Penalties, Ban Healthcare Exchange; How Would Obama Respond?

Courtesy of Mish. If enough states act, we are on the way to a constitutional showdown over Obamacare. The Washington Times reports Missouri bill would gut Obamacare Next month, the Missouri Senate will consider a bill which would effectively cripple the implementation of the Affordable Care Act within the state. Following the lead of South […]

Fear the Octopus: Judge Says NSA Phone Surveillance Is Legal; Case Likely Headed to Supreme Court

Courtesy of Mish. December 16 Ruling vs. Ruling Today On December 16, in a rare victory for constitutional freedoms, U.S. District Court Judge Richard Leon, ruled NSA phone program likely unconstitutional. (See District Court Judge Rules NSA Phone Taps Likely Unconstitutional; 68 Page Ruling Cites “Orwellian Technology” and Unreasonable Searches). In contrast, a Manhattan District […]

Madrid Bans Vacation Home Rentals to “Protect Tourists” and “End Unfair Competition”

Courtesy of Mish. In the name of “Protecting Tourists” Madrid Prohibits Vacation Rental Homes. Via Mish-modified translation from El Economista … Proposed rules would effectively prohibit homeowners from renting their homes. Rental licenses will be only given to properties for primary uses (hotels, offices, etc.), not to individuals for temporary use. The Community of Madrid […]

European Monetary Union Misnamed; I Propose GEU (German Economic Union) or USG (United States of Germany)

Courtesy of Mish. The irony and hypocrisy in chancellor Angela Merkel’s first parliamentary speech of her third term would be astounding were it not par for the “Everything for Germany” course of action. Please consider Chancellor Urges Reforms to Preserve Euro In her first parliamentary speech since her re-election for a third term on Tuesday, […]

Some Themes To Watch In 2014

Courtesy of Charles Hugh-Smith of OfTwoMinds blog, Propaganda, phony fixes and more debt can only cover the widening gap between fiscal reality and official fantasy for so long. So what else besides the potential for another global financial meltdown bears watching in 2014? Here are a few worthy prospects. Continuing our end-of-the-year tradition of exploring themes that […]

Twitter Now Has A Larger Market Capitalization Than 80% Of All S&P 500 Companies

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. As everyone is well aware by now, Twitter investors and speculators have been on a sharp, sudden and very relentless buying spree, sending the company nearly 50% higher since the first week of December, and nearly doubling it since late November. Why the stock […]

China Cash Crunch Eases, For How Long? Three Things China Needs to Avoid; When can Beijing Truly move to Market-Determined Interest Rates?

Courtesy of Mish. As noted on December 23, China Interest Rate Crisis Continues: China Bans Words “Cash Crunch”, the 7-Day Interest Rate Doubled to 10%. The doubling of rates took about a week. Then, on December 24, China injected 29 billion RMB (Yuan), about $4.8 billion. For the size of China’s RMB 130 trillion economy […]

VA Refuses Christmas Cards from 51 School Kids Intended for Disabled Veterans

Courtesy of Mish. A group of 51 school children in Texas spent the week before Christmas making Christmas cards for veterans. According to the VA, the kids made a mistake by saying “Merry Christmas”. Fox News reports VA hospital refuses to accept ‘Merry Christmas’ cards. Boys and girls at Grace Academy in Prosper, Tex., spent […]

What Could Go Wrong Here?

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. We wondered previously what happens when there are no more greater fools to sell to? But, US investors have turned the euphoria dial to 11 this week as the percent bullish is the highest since the peak in Fall 2007 and bears are at […]

Pettis on Debt, Malinvestments, Hidden Losses, and China’s GDP

Courtesy of Mish. Heading into 2014, Michael Pettis at China Financial Markets remains adamant that growth estimates for China are too high and that rebalancing (while necessary), implies lower growth than most expect. Via email … It is widely acknowledged that perhaps the most important reason to change the Chinese growth model is its excessive […]

The unintended consequences of Abenomics

The unintended consequences of Abenomics Courtesy of Sober Look As discussed earlier (see post), Japan continues to struggle in its endeavor to generate demand-driven inflation. To a large extent price increases have been the result of costlier imports due to a weaker yen, particularly items related to food and energy. Outside of those sectors, prices remain […]

Darlene Love – Christmas Wish

Courtesy of Mish. Darlene Love has been appearing on the David Letterman Show every Christmas week since 1986, always singing the same song, ‘Christmas (Baby Please Come Home)’. I watched most of them. I caught the 2013 version this year as well. She is one of my favorite “girl group” singers from the 60’s 1986 […]

Merry Christmas from Snowden

Courtesy of Dangerous Minds. Via Paul Gallagher.   Whistleblower Edward Snowden has given an “Alternative Christmas Message” on Britain’s Channel 4 television. Snowden, who revealed the mass surveillance programs operated by US and other governments, spoke about the dangers of such operations, “A child born today will grow up with no conception of privacy at […]

Relaxing Oil Export Ban is Bad News for US Consumers

Relaxing Oil Export Ban is Bad News for US Consumers By EconMatters     US Energy Boom   The US is producing much more energy domestically the last decade in all forms from natural gas to crude oil with a myriad of boutique products along the way, and so it is natural for producers to want to […]

Merry Christmas, Happy Holidays

Courtesy of Mish. Merry Christmas and Happy Holidays to you and your loved ones. Mish Continue Here

Herbalife: The Greater Fools Theory

Courtesy of EconMatters Short Squeezes – Easier Said, Than Done On December 5 Herbalife Ltd. (HLF) got as high as $76.43 and some investors might be thinking that they could get in on a short squeeze of Bill Ackman and Pershing Square Capital Management`s public and noteworthy short position on the company. Well since then the […]

Merry Christmas From the TSA

Courtesy of Mish. Traveling this holiday season? Whether yes or no, the TSA has 12 helpful hints about what you can and cannot carry on planes. Link if video does not play: TSA’s 12 Banned Items of Christmas Mike “Mish” Shedlock    Continue Here

Christmas 1919 – Christmas 2013

Courtesy of Larry Doyle. This story has become my traditional post to embrace the true spirit of faith, hope, and love. This tale of real heroism and sacrifice ran in The Wall Street Journal in 2008. I think if you read it you will understand why I like it so much. Merry Christmas, Happy Hanukkah, […]

GM: Momentum Stock Candidate 2014

Courtesy of By EconMatters Momentum Stocks   Every year on average there are at least 4 momentum stocks that capture Wall Street`s fancy and all the fund managers pile into these names. Hedge funds realize this investing phenomenon and try to figure out which names are going to be the chosen ones this year […]

Lawyer Advises Me “Don’t Go to France”; French Pub Fined €9,000 for Using “Undeclared Labor” after Customers Returned Empties to Bar

Courtesy of Mish. A few days ago my lawyer advised me “Don’t go France” (not that I had any plans to of course). The advise, coupled with the message “First amendment rights stop at the US border“, was in reference to my November 20 article Mish Fined 8,000 Euros for Quoting French Blog. All I […]

Economic Illiterate Proposal: “Inflation Creates Jobs”; Inflation Economics 101

Courtesy of Mish. Those looking economically illiterate proposals can have a field day reading Ezra Klein’s “Wonkblog” on the Washington Post. In Full Employment Gives People Jobs Klein states (citing two others) “The Federal Reserve Bank’s focus on keeping inflation below 2 percent effectively sacrifices the other half of its dual mandate: full employment.“ It’s […]