Archives for April 2014

Sense on Cents Instant Classic: SEC Commissioner Stein Accuses Agency “Strayed From Its Mission”

Courtesy of Larry Doyle. “Financial institutions that are ‘too big to fail,’ combined with politicians who are too compromised to govern and regulators who are too captured and corrupted to protect, produce an incestuous cabal that is simply too big to trust.” pg 187, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy America […]

With friends like these… who needs enemies?

With friends like these… who needs enemies? By Paul Price of Market Shadows Typical, backward-looking brokerage house advice, can actually cost you money. In the opposite of ‘value added’ advice, brokerage firm Raymond James took Boardwalk Pipeline Partners (BWP) off the SELL list and went to NEUTRAL today. BWP bottomed in March at $11.99 and closed Monday at $16.16. It […]

Slow Motion Bust – The Long Goodbye – One-Sided Incentives

Courtesy of Mish. In The Long Goodbye, economist Andy Xie says People around the world will only begin to question their economic policymakers when they realize living standards are slowly worsening. The recent tumbling of Internet and biotech stocks may indicate that the speculation in such stocks has peaked. But, unlike in 2000, the bursting […]

ECB, BOE want to resurrect shadow banking in Europe

ECB, BOE want to resurrect shadow banking in Europe Courtesy of SoberLook.com   Recently, the ECB and the Bank of England published a joint paper calling for the return of securitization markets in Europe (see below). This goes completely against the grain of the latest Basel accord which has started imposing much higher capital requirements for […]

Prosecutors Explained Congressman’s Alleged Tax Cheating With Two Handy Charts

Prosecutors Explained Congressman's Alleged Tax Cheating With Two Handy Charts By HUNTER WALKER at Business Insider There's a lot going on in the 20 count indictment against New York City Congressman Michael Grimm for allegedly perpetrating a "scheme" designed to help him maximize profits and avoid taxes at a health food restaurant he once partially owned. So, […]

Been There, Done That, Did it Again

We added to our Franklin Resources Position By Paul Price of Market Shadows Sometimes, obvious is best. Money management firm Franklin Resources (BEN) has been a huge money maker over the long term. It has a cash-rich balance sheet and a wonderful business model. Despite the impact from the Crash of 2008, BEN’s earnings per […]

The government is now liquidating seized bitcoins before convicting their owners of any crimes

    #167578473 / gettyimages.com The government is now liquidating seized bitcoins before convicting their owners of any crimes By MICHAEL CARNEY at Pando  The US government has once again seized large sums of bitcoin from those involved in the online drug trade. Late last week the US Attorney’s office announced that it had seized $3,030,000 million worth […]

Debt Rattle Apr 28 2014: Why A Market Collapse Would Be A Good Thing

Courtesy of The Automatic Earth. Russell Lee Love Shack, South Side Chicago April 1941 I’m not going to argue here that a market collapse would be a positive thing no matter what, because the implications of a true collapse would be so deep and widespread that they’re too hard for anyone to oversee. But having […]

Coffee just got too expensive for Starbucks

    #464399199 / gettyimages.com Coffee just got too expensive for Starbucks By Matt Phillips It’s true. Coffee giant Starbucks has been taking a break from buying beans over the last month, as coffee prices continue to log ridiculous gains. The Wall Street Journal reports (paywall) that the coffee giant has already locked in prices for all […]

A Critique Of Piketty’s Solution To Widening Wealth Inequality

Courtesy of Charles Hugh-Smith of OfTwoMinds The real problem with Piketty's taxation/social welfare solution to wealth inequality is that it does nothing to change the source of systemic inequality, debt-based neofeudalism and neocolonialism. Those of us concerned by widening wealth/income inequality have been following the work of Thomas Piketty and Emmanuel Saez for many years. I've cited […]

Let’s Be Frank

A share price decline after its earnings report made for a great chance to add another strike price to our Franklin Resources put position. Market Shadows’ Virtual Put Writing Portfolio sold 2 contracts of the BEN Jan. 2016, $50 puts @ $6.00 per share today. Our worst case scenario on this trade would force us […]

You Can’t Kiss Every Pretty Girl (…or Handsome Boy)

You Can’t Kiss Every Pretty Girl (…or Handsome Boy) By Wade of Investing Caffeine There are a lot of pretty girls in the world, and there are a lot of sexy stocks in the stock market, but not even the most eligible bachelor (or bachelorettes) are able to kiss all the beautiful people in the world. […]

Pending Home Sales Rise First Time in 9 Months, Down 7.9% From Year Ago

Courtesy of Mish. The Wall Street Journal reports Pending Home Sales Up 3.4% in March, the first rise in nine months. Facts and Figures Pending sales up 3.4% from February Pending sales down 7.9% from year ago Index 2.6% Below 2001 Level Actual new home sales down 14.5% Wishful Thinking In the wishful thinking department, […]

Donetsk Riots Break Out In “Scenes Of Absolute Brutality”

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. It seems the US and EU sanctions escalation has done nothing to calm the tensions between Ukrainians and pro-Russian forces in Donetsk, where according to report ultranationalists from Kiev are involved in a skirmish with local riot police. As the following clip suggests… "rocks […]

One Sentiment Gauge in Europe Reaches Epic Proportion

One Sentiment Gauge in Europe Reaches Epic Proportion A visual history of complacency and fear as seen by the 10-year spread over German Bunds By Elliott Wave International The one-two punch 2014 winter storms that battered the southeastern United States left $13.5 million in damages in Georgia alone and thousands of residents displaced due to […]

As Its Domestic Cash Plunges By Record To Early 2010 Levels, Apple Prepares Massive $17 Billion Bond Offering

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. While Apple's earnings report last week left little to be desired, one of the more notable observations was that the company's cash hoard, relentlessly rising until now, had seen its first quarterly dip since Lehman, declining by $8 billion from $158.8 billion to $150.6 […]

Suspicious Deaths of Bankers Are Now Classified as “Trade Secrets” by Federal Regulator

Courtesy of Pam Martens. (Left) JPMorgan's European Headquarters at 25 Bank Street, London Where Gabriel Magee Died on January 27 or January 28, 2014 It doesn’t get any more Orwellian than this: Wall Street mega banks crash the U.S. financial system in 2008. Hundreds of thousands of financial industry workers lose their jobs. Then, beginning […]

FINRA Enforcement Chief Brad Bennett on HFT, “Better To Be Silent and Thought a Fool . . .”

Courtesy of Larry Doyle. In today’s version of “You Can’t Make This Stuff Up,” we hear from Brad Bennett, the Head of Enforcement at Wall Street’s self-regulatory organization FINRA. Bennett and others spoke on a panel this past Friday at a conference sponsored by the Practicing Law Institute. On the hot button topic of high […]

Gimme Some Credit

Gimme Some Credit By Paul Price of Market Shadows (Originally published on 4/28) We Sold a Long-Term Put on Visa  Market Shadows’ Virtual Put Writing Portfolio took advantage of last week’s sell-off in the high-quality shares of Visa (V).  We wrote (sold) one contract of the Jan. 2016, $200 strike price put for $24.42. Thus, we are […]

Progressives Plan Huge Illinois Tax Hikes; Union Member on the “Fair Tax” Proposal

Courtesy of Mish. Via email, Ben VanMetre at the Illinois Policy Institute mentions huge tax hikes that Progressives are angling for. The tax hikes are so steep and so universal that even thinking union members are against the hikes. From VanMetre State Sen. Don Harmon and advocates for his progressive tax proposal argue that the […]

How Technology Affects Sleep

How Technology Affects Sleep — An infographic by Big Brand Beds.  

How Technology Affects Sleep

How Technology Affects Sleep — An infographic by Big Brand Beds

Why Housing Has Stalled — And Why Everything Else Will Follow

Courtesy of John Rubino. It’s not easy being a mainstream economist. You spend your life building models that become your professional identity. And when those models fail to describe and predict reality, you’re left wondering about the meaning of it all. The latest case in point is US housing. Keynesian economic models say that if […]

Why Housing Has Stalled – And Why Everything Else Will Follow

Courtesy of John Rubino. It’s not easy being a mainstream economist. You spend your life building models that become your professional identity. And when those models fail to describe and predict reality, you’re left wondering about the meaning of it all. The latest case in point is US housing. Keynesian economic models say that if […]