Archives for March 2014

No Increase in Wealth Inequality for Top 1% Since 1960

Courtesy of Mish. For all the ranting about the top 1% by the Economic Policy Institute and others, a US Berkeley study by Emmanuel Saez and Gabriel Zucman on The Distribution of US Wealth, Capital Income and Returns since 1913 shows no increase in wealth inequality for top 1% since 1960. All of the increase […]

Economic consequences of income inequality

  Economic consequences of income inequality Courtesy of Michael Pettis  A lot of things have happened in China since my last entry – in the FX markets, in the banking system, in the announcements of default, and in the continuing lowering of growth expectations – but for all the turmoil, as I see it nothing has […]

Attention Deficit

  Attention Deficit Courtesy of James Howard Kunstler    Apparently someone at the US State Department put out the fire in John Kerry’s magnificent head of hair, because he has stopped declaiming (for now) on the urgent need to start World War Three over Russia’s annexation of the Crimean peninsula. In my lifetime, there has […]

Ukraine’s Boomerang Aid

Ukraine’s Boomerang Aid By Michael Hudson with Thom Hartmann from RT’s The Big Picture.  

As If 194 Hedge Fund Suddenly Cried Out In Terror, And Were Suddenly Silenced

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Another day, another disaster for GM. Moments ago, on top of the already previously reported, numerous recalls by the car marker bailed out by the US government at a loss (but with so many votes for Obama that who's counting), here is the latest. […]

High Frequency Trading Hits 60-Minutes Scrutiny; Trading or Skimming?

Courtesy of Mish. In the wake of a 60-Minutes report on High Frequency Trading, numerous people have sent dozens of links. Let's take a look at a few of them. CBS Video High-Speed Traders Rip Investors Off Michael Lewis says High-Speed Traders Rip Investors Off. The U.S. stock market is rigged when high-frequency traders with […]

Why The Most Popular Chart In The Profit Margins Debate Is A Complete Disaster

Why The Most Popular Chart In The Profit Margins Debate Is A Complete Disaster Courtesy of SAM RO at Business Insider  Fattening profit margins have enabled U.S. corporations to generate record profits despite modest revenue growth in the wake of the financial crisis. Now, everyone wants to know if and when these margins will contract. The bulls generally […]

“The Stock Market is Rigged!”

Yes it is, but let's keep this in perspective.  “The Stock Market is Rigged!” Courtesy of Joshua M Brown   Yes, I’m excited about Michael Lewis’s new book Flash Boys coming out this week but no, I don’t get worked up about high frequency trading anymore. I’m going to tell you a quick story and then you won’t […]

Damn the Bubbles, More Printing Ahead; Property Bubbles and the Perils of Easy Money

Courtesy of Mish. Damn the Bubbles, More Printing Ahead Fed Chair Janet Yellen was tooting her own horn today. Yahoo! Finance reports Yellen strongly defends easy Fed policies, cites U.S. labor slack Federal Reserve Chair Janet Yellen gave a strong defense of the central bank’s easy-money policies on Monday, saying its “extraordinary” commitment to boosting […]

“Buy me anything but America”

  “Buy me anything but America” Courtesy of Joshua M Brown, The Reformed Broker   Last year it was US stocks and anything else could GTFO. In December, I rhetorically asked whether investors would take all of the wrong lessons away from 2013 and go on to make the same mistake they always make in the presence of […]

Inflation Is Coming, What to Do

Inflation Is Coming, What to Do By Jeff Clark, Senior Precious Metals Analyst We’ve all heard of the inflationary horrors so many countries have lived through in the past. Third-world countries, developing nations, and advanced economies alike—no country in history has escaped the debilitating fallout of unrepentant currency abuse. And we expect the same fallout […]

“The Market Is Rigged” – Michael Lewis Explains How HFTs “Screw” Investors Every Day

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. It was almost excatly five years ago to the day, on April 10, 2009, that Zero Hedge – widely mocked at the time by "experts" – began its crusade against HFT and the perils of algorithmic trading (which of course were validated a year […]

PITCHFORKS COME OUT AS CHINESE BUST KLEPTOCRATS

PITCHFORKS COME OUT AS CHINESE BUST KLEPTOCRATS By RUSS WINTER Unlike in the West, being a kleptocratic crook in China is now becoming a higher risk proposition. One gets the sense that as the credit monster collapses in China, and as auntie’s wealth management product is shown to be a loss, out will come the pitch […]

David Stockman: Why We Are Plagued With Drivel Masquerading As Financial Reporting

Courtesy of ZeroHedge. View original post here. Submitted by David Stockman via Contra Corner blog, Bubbleberg News LP: Why We Are Plagued With Drivel Masquerading As Financial Reporting One of the evils of massive over-financialization is that it enables Wall Street to scalp vast “rents” from the Main Street economy. These zero sum extractions not only bloat the […]

Have the Mega Banks Put the U.S. on Course for Another Crash? The Answer May Reside in Nomi Prins’ New Book

Courtesy of Pam Martens. “All the Presidents’ Bankers: The Hidden Alliances that Drive American Power” by former Wall Street veteran, Nomi Prins, is a seminal addition to the history of continuity government between the White House and Wall Street from the days of Teddy Roosevelt and the Panic of 1907 right up through the Panic […]

E-Money Digital Payments Sweep Africa, Head for Europe and India

  It may not be via bitcoins, and it won't be, but the wave of monetary payments. "mobile money," made by cell phones is spreading throughout the world. M-Pesa is a first step.   Courtesy of Mish. An interesting, but inaccurate headline appeared on the Financial Times today: Africa’s digital money heads to Europe. A close look reveals this […]

Michael Lewis on HFT: “It’s All A Scam”; Here’s the Cause and Effect

Courtesy of Larry Doyle. Major props to renowned writer Michael Lewis for using his enormous platform to direct light on the scam that has come to define our equity markets under the construct of high frequency trading. As Lewis states, the scam is not only restricted to HFT activity but rather the market as a whole has […]

BEFORE ‘THE SIMPSONS,’ MATT GROENING DREW CARTOONS FOR APPLE COMPUTERS

BEFORE ‘THE SIMPSONS,’ MATT GROENING DREW CARTOONS FOR APPLE COMPUTERS Courtesy of Dangerous Minds By Amber Frost    You might remember my post from a while back on Hunter S. Thompson’s truly weird Apple computer commercial, but I think I’ve found something to top it. Apple’s branding strategy has usually been to flatter those who fancy […]

Look Out! Massive Treasury Paydowns Are Almost Here

Lee Adler, in the Professional Edition of the Wall Street Examiner, gives reasons that, barring other factors, support continued bullish action in the stock market for the next two or three months. ~ Ilene Look Out! Massive Treasury Paydowns Are Almost Here Courtesy of Lee Adler Excerpts:   Withholding tax collections continue to be very strong suggesting lighter […]

So Far, So Meh

So Far, So Meh Courtesy of Joshua M Brown, The Reformed Broker? Just wanted to revisit something I did on January 5th for a moment, from my year-opening post “You Are Here“. In it, I tried to come up with the most likely scenario for 2014 and I hit upon the 1994 analogy as my top […]

2014: A Brave New Dystopian “1984” World

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. While many have pointed out that the Middle-East/Far-East are drifting to a more "Orwellian" world and the West is a more "Huxleyan" environ, the merger of the two dystopias is seemingly growing each day. As The Guardian previously noted, Huxley's dystopia is a totalitarian […]

China Accelerates Bad Debt Writeoffs; Reflections on “Policies to Counter Economic Volatility”

Courtesy of Mish. Financial stress related to Ponzi financing and other bad debts in China is readily visible in numerous places. One result is China’s Big Banks Double Bad-Loan Write-Offs. China’s biggest banks more than doubled the level of bad loans they wrote off last year, in a sign that financial strains are mounting as […]

The US Is #1 (In Global Income Inequality)

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Widening income disparity has been a feature of many advanced and developing economies for the past few years and has myriad investment implications. As we noted yesterday, the USA is at levels of income disparity not seen since the roaring 20s (and by some […]

Spain Misses 2013 Budget Deficit Target in Spite of Massive Tax Increases; So Much Pain for Virtually No Reward

Courtesy of Mish. The official results are in. Spain missed its budget deficit target considerably by reasonable reporting, barely by another. Spain’s Budget Deficit Only Two Tenths Lower in 2013 Despite Massive Tax Increase Via translation from Libre Mercado please consider Spain’s Budget Deficit Only Two Tenths Lower in 2013 Despite Massive Tax Increase. Spain’s […]