Archives for May 2014

Volatility is all about Liquidity

Volatility is all about Liquidity Courtesy of Surly Trader (Originally published on May 21, 2014) The S&P 500 tried to pull back yesterday, but as usual the late day trading pushed the loss to just 65 bps. This has become the normal market. In 2012, volatility puttered at 12.77%. In 2013 it fizzled down to 11.07%. YTD […]

Fresh lows for industrial commodities, other indicators still point to persistent risks to growth in China

Fresh lows for industrial commodities, other indicators still point to persistent risks to growth in China Courtesy of   In spite of what appeared to be an improvement in China's manufacturing sector (see chart), China's economic picture remains cloudy. A number if indicators point to rising uncertainty and slowing industrial demand.  Investors are becoming increasingly […]

Staging the QE exit

Staging the QE exit Courtesy of Sober Look  Fed officials are hinting that the rate hike could take place before the Fed ends the policy of reinvesting securities that pay down or mature. The order of events would look something like this: 1. Securities purchases end later this year but the Fed maintains its balance […]

The U.S. Job Market is Gaining Traction

Courtesy of EconMatters   Claims Data The Jobless claims data came out on Thursday and the trend is still in place and bodes well for the May Employment Report coming out next Friday as jobless claims fell sharply in the May 24 week, down 27,000 to 300,000. The 4-week average is down a significant 11,250 to a […]

US GDP Even Worse Than It Looks, Again

Courtesy of John Rubino. As expected, the US revised the most recent quarter’s GDP from barely positive to sharply negative today. But once again the true extent of the problem was hidden by some statistical sleight of hand, in this case wildly-optimistic inflation assumptions. Here’s an excerpt from the Consumer Metrics Institute’s just-published analysis: May […]

Pam Martens on Hot Topic ‘Inclusive Capitalism’ Meet-Up

For ongoing commentary about the worst of Wall Street’s behavior (is there any other?), visit Pam Martens at Wall Street on Parade. Ms. Martens is very familiar with the Wall Street culture having spent 21 years on the Street observing it. She is now an outspoken critic of Wall Street’s corrupt practices and its private justice system. […]

BLS Employment Projections Through 2022: How Many Jobs Require a College Degree?

Courtesy of Mish. Inquiring minds are taking a look at BLS Occupation Forecast for 2022. The above table is by the BLS. In the following table, I stripped out all the occupations that I believe should not realistically require a college degree. Here are the results.   Results Of the projected 15,628,000 jobs that will […]

The Bond Market Explained Part II

Courtesy of EconMatters Addendum Needed Since so many people are still slightly confused about how all the pieces come together in this move lower in yields, we feel the need to add some follow-up commentary to our previous article entitled "The Bond Market Explained for CNBC" on the subject which should help investors better understand the behind the […]

Debt Rattle May 29 2014: The New Normal is Negative

Courtesy of The Automatic Earth. Arthur Rothstein President Roosevelt tours drought area, Bismarck, North Dakota August 1936 No, the nonsense will not stop, and neither will the torture. At least 5 years into the alleged recovery, US GDP contracted by -1% in Q1 2014, down from last month’s estimate of a 0.1% growth. Why? It’s […]

Examinations of Wall Street’s Biggest Banks Come Under Foreign Microscopes

Courtesy of Pam Martens. Thomas Curry, Comptroller of the Currency You know there is a lot more to the story when the top Federal regulator of Wall Street’s biggest banks turns to three foreign countries to figure out how to beef up examining these complex webs of darkness. And London (infamous now for its blinders […]

US Economy Shrank By 1% In The First Quarter: First Contraction Since 2011

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Weather 1 – Quantitative Easing 0. Spot on the chart below just how high the culmination of over $1 trillion in QE3 proceeds "pushed" the US economy. Joking aside, while the realization that nobody can fight the Fed except a cold weather front, is […]

France Budget Forecast “Wildly Inaccurate” Leaving €14 Billion Black Hole; Sharp Rise in French Unemployment

Courtesy of Mish. French President Francois Hollande hiked income taxes, VAT and corporation tax following his election two years ago. Hollande estimated those tax hikes would raise €30 Billion in revenue. The BBC reports France Faces €14 Billion Budget Hole. The French government faces a 14bn-euro black hole in its public finances after overestimating tax […]

Bacon Prices To Soar Even More: The Pig Diarrhea Virus Is Back For Round Two

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. The last time we looked at the rather unpalatable issue of soaring bacon prices back in March, it was the direct result of exploding, no pun intended, prices of lean hogs stricken by the aptly named porcine epidemic diarrhea (PED) virus, which killed up […]

Google Unveils Self-Driving Car, No Steering Wheel, No Accelerator, No Brake Pedal; Self-Driving Taxi Has Arrived

Courtesy of Mish. In yet another step towards self-driving vehicles, Google Unveils Steering Wheel-Less Car Prototype. Ever since we started the Google self-driving car project, we’ve been working toward the goal of vehicles that can shoulder the entire burden of driving. Just imagine: You can take a trip downtown at lunchtime without a 20-minute buffer […]

Calling all bulls: Bitcoin climbs 32% in a week, prompting cheers of “to the moon”

Of the theories presented, I like the notion the price of bitcoin is increasing due to the lack of a new scandal. At least for now, believers have gained control. But "to the moon" for the battered digital currency? Doubt it. ~ Ilene  Calling all bulls: Bitcoin climbs 32% in a week, prompting cheers of “to the […]

Debt Rattle May 28 2014: Everything You Think You Own Has Been Borrowed

Courtesy of The Automatic Earth. Esther Bubley Soldier treats his date to a coke, Idaho Hall, Arlington Farms, VA June 1943   Let’s take another look at debt. We’ve probably all gotten so used to huge debt numbers that we’re losing sight of what they actually mean. In the following article, Tyler Durden made me […]

John Hussman’s Rant: “Someone Is Going To Have To Hold Stocks At These Prices”

John Hussman has a word of two for those of you who haven't been fans and don't like his message. Buy stocks. John Hussman's Rant: "Someone Is Going To Have To Hold Stocks At These Prices" Courtesy of ZeroHedge. View original post here. Excerpted from John Hussman's Weekly Market Comment, I’m sometimes viewed as an […]

Why Are Food Prices So High?

  #129749003 / Why Are Food Prices so High? Because We're Eating Oil  Courtesy of Charles Hugh-Smith Of Two Minds  Regardless of what we eat, we're actually eating oil. Anyone who buys their own groceries (as opposed to having a full-time cook handle such mundane chores) knows that the cost of basic foods keeps rising, despite the […]

Success, Redux?

By Dr. Paul Price of Market Shadows In Market Shadows’ Virtual Value Portfolio, we booked a 92.7% profit when we sold Kelly Services Class A (KELYA) last Dec. 23, 2014, for $25.30 per share. While not 100% perfect, our timing was very good. Today, with Kelly Services back down to $18. This time, we sold eight November 22, […]

Employers Struggle to Find Qualified Graduates: Poorly Written Resumes to Blame?

Courtesy of Mish. Graduates looking for jobs struggle to fine them. Employers cannot find qualified graduates. Are poor resumes to blame? An article in The Independent suggests that is part of the problem. Please consider Graduate Employers Struggling to Fill Vacancies. The class of 2014 who graduate from university this summer still have a choice […]

Goldman’s Cohn Says Inactive Trading Environment Is Abnormal

Lack of trading volatility and volume has negatively affected investment firms. Goldman Sachs, Citigroup (up to a 25% decline in trading revenue) and JP Morgan (20% shortfall) have had to compensate for revenue losses. GS's Gary Cohn won't guess as to the extent of Q2's decline, but noted that the company has been laying off employees […]

Try to Contain Your Laughter: Prince Charles and Lady de Rothschild Team Up to Talk About ‘Inclusive Capitalism’

Pam quotes Christine Lagarde, Managing Director of the IMF: The 85 richest people in the world, who could fit into a single London double-decker, control as much wealth as the poorest half of the global population  – that is 3.5 billion people.   This statistic was noted in a Forbes article in January. I had wanted to find […]

If the Shoe Fits… Sell Puts

Market Shadows’ Virtual Put Writing Portfolio is back in action. By Dr. Paul Price We took advantage of a clearance sale in DSW (Designer Shoe Warehouse) shares after a weaker than expected, but decent, fiscal Q1 profit. We sold (wrote) 6 contracts of the January 2015, $25.00 puts for $3.40 per share in our Virtual Put Selling […]

Capitalism in Crisis Again (Not)

  #478835201 / Capitalism in Crisis Again (Not) Courtesy of Tim Richards of The Psy-Fi Blog Beans I imagine we all think that what the world needs is a conference on the topic of Inclusive Capitalism, a jolly beanfest of the world’s great and the good dedicated to discussing how to renew trust in capitalism.  Even […]