Archives for April 2014

Inside The “Low-flation” Myth: A Disquisition On Inflation Seen And Not Seen – Part 1

Courtesy of David Stockman at Contra Corner After paying my bills the other day I had home heating and electric utility costs on my mind—the winter having been an unusually harsh one in NYC like much of the rest of the nation. But then I noticed a story by an outfit called CNS that contained some […]

17 Facts Showing That The U.S. Economy Is Not Just Fine

Courtesy of Michael Snyder of The Economic Collapse No, the economy is most definitely not "recovering." Despite what you may hear from the politicians and from the mainstream media (shrugging off today's terrible GDP print), the truth is that the U.S. economy is in far worse shape than it was prior to the last recession. In fact, we […]

World Money Analyst: Europe: Cliff Ahead?

World Money Analyst: Europe: Cliff Ahead? By Dirk Steinhoff Europe: Cliff Ahead? (This article originally appeared in World Money Analyst) When Kevin Brekke, managing editor [of World Money Analyst], contacted me last week, I knew it was time again to survey the investment landscape. This month, I will focus on Europe and its decoupled financial and real-economy […]

Even Worse Than It Looks

Courtesy of John Rubino. No US GDP report is complete without an explanation from the Consumer Metrics Institute of how Washington is fooling us. The latest one is even scarier than usual: There are a number of disturbing items in this report: – Even at first glance this is not a good report. Although the […]

Can We Say When It Will End? No. Can We Say That It Will End? Yes

Courtesy of Lance Roberts of STA Wealth Management This morning I received a blog written by Brad DeLong which asked a simple question; why are people depressed about medium-term prospects for equity investments? He claims he doesn't understand the gloomy mindset. However, look at the evidence contradicts DeLong's underlying assumption about investor attitudes. And when we […]

3D Printer Builds 10 Small Houses a Day for $5,000 Each

Courtesy of Mish. Chinese construction firms can 3-D print 10 low-cost houses a day with machines that add layer after layer of quick-drying cement in a process called “contour crafting”. A private company in east China recently used a giant printer set to print out ten full-sized houses within just one day. The stand-alone one-story […]

Japan’s manufacturing contracts for the first time in 14 months

Japan's manufacturing contracts for the first time in 14 months Courtesy of Japan's consumption tax hit the nation's manufacturing sector harder than economists had anticipated. Markit: – Japanese manufacturing firms saw a decline in output for the first time in 14 months in April. Alongside this fall in output was a deterioration in new orders […]

The Fed’s Deadly Error: Penalties For Labor And Thrift; Windfalls For Speculation In Land And Financial Assets

Courtesy of Lee Adler of the Wall Street Examiner There’s no law that says the stock market can’t have a major correction when central banks are pumping money into the system via the Primary Dealers. But in the 12 years since the Fed began publishing detailed data on its operations, and since I began observing those […]

Karl Marx Makes a Comeback — And That’s Okay

Courtesy of John Rubino. A perfect sign of the times is the unexpected success of a 700-page economics text called Capital in the 21st Century by French college professor Thomas Piketty. As of April 30, it is the best-selling book in the world and is generating the kind of controversy that one would expect for […]

I’m Shocked, Shocked!

I’m Shocked, Shocked! By James Kwak  Technology-land is abuzz these days about net neutrality: the idea, supported by President Obama, (until recently) the Federal Communications Commission, and most of the technology industry, that all traffic should be able to travel across the Internet and into people’s homes on equal terms. In other words, broadband providers like […]

The Conspiracy Behind the B of A “Mistake”

The Conspiracy Behind the B of A “Mistake” By James Kwak Some very clever people deep in the bowels of Bank of America’s accounting and regulatory compliance departments came up with a clever strategy to show, once and for all, that their bank is too big to manage. On Monday, the bank admitted that it […]

Separatism Spreads; Kiev Admits Losing Grip in Eastern Ukraine; Putin Threatens to Retaliate Against Sanctions

Courtesy of Mish. Pro-Russia forces seized administration buildings in Horlivka today forcing Kiev to admit reality. Please consider Kiev Admits Losing Grip in Eastern Ukraine. Ukraine’s acting president on Wednesday admitted that government authorities had lost control of the eastern Donetsk and Lugansk provinces to separatists, and said the challenge now was to “prevent terrorism […]

SEC Chair Says Markets Are Not Rigged Versus SEC Diagram Showing How the Market Is Rigged

Courtesy of Pam Martens. SEC Chair, Mary Jo White, Testifies on Rigged Markets Before the House Financial Services Committee on April 29, 2014 The scene in the House Financial Services Committee hearing yesterday was surreal. After Mary Jo White bluntly told the panel that “The markets are not rigged,” (countering heavily publicized charges made by […]

Debt Rattle Apr 30 2014: The Boy In The Bubble

Courtesy of The Automatic Earth. Alfred Palmer Nose section of B-17F “Flying Fortress”, Douglas Aircraft, Long Beach, CA. October 1942 That’s how I feel these days, or I should say these years. Since the name of this site comes from Paul Simon’s song by that title, it comes easily. Funny enough, I watched one of […]

Elizabeth Warren Exposes Larry Summers: The Game Is Rigged

Courtesy of Larry Doyle. Why is it that our nation does not have real statesmen in public service?  Why is it that very real corruption and scandal — legal and otherwise — have gained a stranglehold on our political process? Why is it that an SEC attorney states at his retirement sendoff that “the system is […]

Simply Irresistible

By Paul Price of Market Shadows I added two new put positions today, selling puts in these high quality, old favorites: Bed Bath & Beyond (BBBY) and Coach (COH). These two are too cheap to resist for put writing purposes. We sold two contracts of the BBBY Jan. 2016, $60 strike price puts @ $6.40 per share […]

Japan Output and New Orders Decline at Fastest Pace Since 2012; Abenomics in Review

Courtesy of Mish. Abenomics said Japanese stimulus efforts would offset tax hikes. I disagreed. Although one month is not proof, Markit reports Japanese Output and New Orders Decline For First Time in 14 Months Following Tax Hike Key points: Output falls at fastest pace since December 2012 New orders also down; exports decline slightly Rate […]

China to Surpass USA as World’s Largest Economy THIS YEAR

Courtesy of George Washington Financial Times reports: The US is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies. This is – rightly – front page news (hat tip to Drudge for the […]

The ECB betting on “creditless” recovery

The ECB betting on "creditless" recovery Courtesy of The story from the Eurozone is beginning to sounds like a broken record. The area's monetary conditions continue to tighten as the Eurosystem's balance sheet shrinks.    Eurosystem total balance sheet (source: ECB) The decline is driven by banks' deleveraging, as the LTRO balances decline.   LTRO […]

Ukraine Separatists Seize Another Local Government Headquarters; Two Points of View; EU Expands Sanction List by 15

Courtesy of Mish. Making it readily apparent that no one has any control over the separatists, nor can anyone speak for them, Separatists Seize Another Local Government HQ in Ukraine. Hundreds of pro-Russian separatists seized the regional government headquarters in Luhansk on Tuesday, unopposed by police, underlining the lack of control of central government over […]

The Madison County Bridges In Nowhere And The Perennial Myth Of Crumbling Infrastructure

Courtesy of David Stockman via Contra Corner Whenever the beltway bandits run low on excuses to run-up the national debt they trot out florid tales of crumbling infrastructure—that is, dilapidated roads, collapsing bridges, failing water and sewer systems, inadequate rail and public transit and the rest. This is variously alleged to represent a national disgrace, an impediment to economic growth […]

Investing is a Bizarro World

By Paul Price of Market Shadows Three separate brokerage firms decided Boardwalk Pipeline Partners (BWP) had risen enough to finally get interested in buying again. God forbid they would have told anyone to buy near the multi-year low. The MLP’s units (similar to shares) have now gone up about 37.5% since hitting $11.99 in mid-March. As […]

High Frequency Trading Is Not Like a First Class Airline Ticket – Unless You Have Also Hijacked the Plane and Robbed the Passengers in Coach

Courtesy of Pam Martens. Mary Jo White, the Chair of the Securities and Exchange Commission, will appear before the House Financial Services Committee this morning at 10 a.m. to boast about the past year’s accomplishments at the SEC and possibly handle a few queries about the growing public perception that stock markets are rigged.  White’s […]

Debt Rattle Apr 29 2014: Economists Are Stupid, Useless And Dangerous

Courtesy of The Automatic Earth. Andreas Feininger Production of B-17 Flying Fortress bomber, Seattle March 1936 Economists are stupid because they have studied economics. Which doesn’t mean they weren’t born stupid, but that’s hardly relevant. Economists are useless because, well, they have studied economics. And economists are dangerous because they have studied economics, and people […]