Archives for March 2014

Thoughts from the Frontline: When Inequality Isn’t

  Thoughts from the Frontline: When Inequality Isn’t By John Mauldin at Thoughts from the Frontline “An imbalance between rich and poor is the oldest and most fatal ailment of all republics.” –Plutarch, Greek historian, first century AD “In the economic sphere an act, a habit, an institution, a law produces not only one effect, […]

The science of getting drunk

In one easy chart.  Source: bestcollegesonline.org

Teaching Revolution: Online, Accredited, Free; Start Learning Now!

Courtesy of Mish. One of the things I staunchly believe is that the cost of education will drop sharply. It has to. The current path of graduating student loan zombies is simply not sustainable. Eventually, online education will be both inexpensive and accredited. In turn that will drive down costs at brick-and-mortar colleges. MOOCS Pick […]

You Can’t Make This Up: MF Global Sues PWC, Blames It For Its Collapse

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. File this one in the "you can't make it up" category. Over two years after the MF Global collapse, in which the primary dealer headed by Jon "I don't recall" Corzine all but admitted it had engaged in the cardinal sin of any financial […]

Debt Rattle Mar 29 2014: Candy Crush, Ukraine Style

Courtesy of The Automatic Earth. National Photo Co. Janes’ candy store, Ninth Street, Washington, D.C. 1924 Boxing champ Vitali Klitschko, who was reportedly the most popular opposition leader in Ukraine during the Maidan protests before Yanukovych was chased away, and was then shunned by the west as interim PM in favor of banker-boy Yatsenyuk, this […]

Reader Question on Banking System Insolvency, QE, and “Necessity”

Courtesy of Mish. In response to Will Prices Rise Significantly When Velocity of Money Picks Up? reader Dave, a friend, noted that as the Fed jacked up its balance sheet, velocity has mirrored the curve to the downside. Dave asks “Can’t an argument be made that since much of the banking system is really insolvent, […]

A U.S.-Saudi Move to Lower Oil Prices?

Courtesy of Nick Cunningham via OilPrice.com Could the U.S. unleash a flood of oil from the strategic petroleum reserve that would drive down prices in order to punish Russia? While the idea has been kicked around over the last few weeks – most recently by George Soros – it has also been dismissed as not a […]

It’s possible MtGox didn’t fail over transaction malleability

  It’s possible MtGox didn’t fail over transaction malleability By TIM WORSTALL at PandoDaily. As we know, when MtGox fell over it insisted that it had been tricked by transaction malleability into shipping out off the exchange hundreds of thousands more Bitcoin than it actually had. Losing a few hundred million $ worth of something by paying it […]

5 Things To Ponder: Words Of Caution

Courtesy of Lance Roberts of STA Wealth Management The financial markets have not done much since the beginning of the year but that is not necessarily bad news.  Despite Russia's annexation of Crimea which sparked threats of military conflict, the Federal Reserve tapering asset purchases, massive "polar vortexes" and less than impressive economic data – the […]

If You’re Bullish About Stocks, You Should Ponder This Quote From One Of The Smartest Investors Ever

If You're Bullish About Stocks, You Should Ponder This Quote From One Of The Smartest Investors Ever Courtesy of HENRY BLODGET of Business Insider     [Seth Klarman valuebin.files.wordpress.com]   Seth Klarman, one of the most successful investors in history, recently returned $4 billion of capital to his clients. He also reportedly has 40% of his portfolio in cash. Why? Because […]

Debt Rattle Mar 28 2014: The China Clock Goes Tick Tock

Courtesy of The Automatic Earth. Esther Bubley Daily Greyhound commute to Memphis September 1943 How do we know what’s really going on in China’s economy? Given that it’s – at least officially – under central control, that’s not easy. The Chinese leaders know their way around spin and propaganda; one might argue that their lives […]

Soaring Bacon Prices Got You Down? Blame The “Porcine Epidemic Diarrhea Virus”… And Spiking Inflation

Food inflation is undeniable. Not only are prices up but portions are down. Yet the government insists there minimal inflation in prices. Food, obviously, is one of the few essentials that people with limited funds MUST spend their money on. ~ Ilene  Courtesy of ZeroHedge. View original post here. We recently noted the soaring cost […]

McCain Wants More Weapons Delivered to Al Qaeda Rebels; How Do Warmongers Get Elected?

Courtesy of Mish. Lawmakers Bash Obama’s Delusional Syria Policy In a recent post I noted Turkey Plans Military Intervention in Syria, Bans YouTube for Leaked Reporting. As a followup, please see Outrageous but Highly Believable Rumor Involving Syria, Turkey, Kerry. Meanwhile, back in the US Lawmakers Bash Obama’s “Delusional” Syria Policy. U.S. lawmakers lashed out […]

Outrageous but Highly Believable Rumor Involving Syria, Turkey, Kerry

Courtesy of Mish. Normally I stay far away from the rumor mill. Typically, most rumors turn out to be false. However, actions in Turkey suggest at least some substance to this rumor. Moreover, it’s entirely believable. First let’s tune in to what Bloomberg reports (which I also commented on yesterday). Please consider Turkey Blocks YouTube […]

Why Gold Is Falling & A Gold Forecast You May Not Like

Why Gold Is Falling & A Gold Forecast You May Not Like Courtesy of Chris Vermeulen The bitter truth about what may happen to gold is not all that exciting and you likely don’t want to know, but this is what I think is unfolding… Long story short, the prices of bonds look as though […]

Bernard Baruch’s 10 Rules of Investing

  Bernard Baruch’s 10 Rules of Investing Courtesy of Joshua M Brown You want someone to emulate? Bernard Baruch (August 19, 1870 – June 20, 1965) was the son of a South Carolina physician whose family moved to New York City when he was eleven year old. By his mid-twenties, he is able to buy an […]

Robert Shiller: Bubbles are a Good Motivator

  Robert Shiller: Bubbles are a Good Motivator Courtesy of Joshua M Brown, The Reformed Broker The Wall Street Journal’s David Wessel interviews Nobel laureate Professor Robert Shiller about investing and bubbles this week. I particularly liked this bit, on why bubbles aren’t necessarily “bad” or “good”, but perhaps necessary for capitalism: Q: Are bubbles always […]

Chink In The Market’s Armor?

Courtesy of Lance Roberts of STA Wealth Management According to Wikipedia, the idiom "chink in one's armor" refers to an area of vulnerability. It has traditionally been used to refer to a weak spot in a figurative suit of armor. Since the beginning of 2013, the market has been seen as invulnerable.  Despite issues in the Eurozone, […]

Initial Claims Suggest That This Bubble Has Reached Its Limit

Courtesy of Lee Adler of the Wall Street Examiner The seasonally finagled headline number for weekly initial unemployment claims was 311,000 last week, soundly trouncing the consensus wild guess of the Wall Street conomist crowd, who were looking for 330,000. Seasonally adjusted (SA) data represents an idealized, fictional, dumbed down, smoothed, abstract impressionistic version of reality that […]

As Its Ultranationalists Rage, Ukraine’s Ousted President Calls For Regional Referendums

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. While the US and its allies are locked in a war of words which Russia has so far been completely ignoring, things continue to move both literally (along the Russian side of Ukraine's eastern border) and metaphorically. Overnight, ousted President Viktor Yanukovych has called […]

Are You Minding the Curves? Sweet Spot is Likely Not Where You Think

Courtesy of Mish. Curve Watcher’s Anonymous has its eye on the yield curve again. Over the course of the last year, and except for the close front-end, US treasury yields have risen across the board, and in some cases dramatically. This is what one would expect from a tapering Fed that is also discussing rate […]

Limitations of the Elliott Wave

Courtesy of Chris Vermeulen A large number of investors rely on Elliott wave theory as part of their market trend analysis to help them make good decisions, and it is a very good, very accurate tool.  But it is merely one tool, and as with anything, it is unwise to become over reliant on any single […]

GULF COAST PADD 3 The New U.S. Oil Bottleneck

Courtesy of EconMatters As Cushing supplies decline due to increased logistic options out of the storage hub in the Midwest PADD 2 in Cushing, Oklahoma inventories are rising to elevated levels in the Gulf Coast which eventually will provide the bottleneck and back up oil flows all along the supply and logistics chain. The shortsighted obsession […]

Turkey Plans Military Intervention in Syria, Bans YouTube for Leaked Reporting

Courtesy of Mish. Turkey is threatening military intervention in Syria. A leaked recording proves it. In response, an angry Turkish Government Banned YouTube. The Foreign Ministry called the leak a “despicable attack” on national security, in a statement e-mailed from Ankara yesterday. It said the meeting, attended by Foreign Minister Ahmet Davutoglu, the head of […]