Archives for June 2014

Voila: World War Three

Voila: World War Three Courtesy of James Howard Kunstler Whoever really runs things these days for the semi-mummified royal administration down in Saudi Arabia must be leaving skid-marks in his small-clothes thinking about Abu Bakr al-Baghdadi and his ISIS army of psychopathic killers sweeping hither and thither through what is again being quaintly called “the […]

Letter to Editorial Board of The New York Times: “Real Cause Is Regulatory Capture/Corruption”

Courtesy of Larry Doyle. I sent a copy of this letter to the members of the Editorial Board of The New York Times this morning.  To the Editorial Board of The New York Times Re: Sunday Editorial, The Dark Pool Iceberg: Lawsuit Against Barclays Shows Need for More Scrutiny Dear Mr. Rosenthal, et al, I […]

The New Normal of Healthcare Spending

Thoughts from the Frontline: The New Normal of Healthcare Spending ?By John Mauldin A rather interesting shockwave came across the newsfeeds this week. I was actually doing a TV interview when the host announced that GDP was down 2.9% for the first quarter. There was not much else I could do but note that that […]

Analysts Can’t Always Be Trusted

Here’s One Way Wall Street Cheats. Los Angeles based Wedbush Securities got some national press last Friday morning when Barrons.com republished their Jun. 26, 2014, research blurb on Bed, Bath & Beyond (BBBY).  The analyst indicated he was now neutral on BBBY @ $61.11 per share. He cut his target price by $8 per share […]

Macro-Economic Factors Make for Bad Market Timing

Would knowing next year’s GDP in advance help you invest? By Dr. Paul Price Data released by Zacks Investments shows advanced knowledge of some pretty important economic information… might actually have led you astray. Since 1933, there have been nine full years which showed negative GDP. Six of those years experienced positive stock market action […]

Japan’s households stung by consumption tax

Japan's households stung by consumption tax Courtesy of SoberLook.com   Japan's household spending fell sharply in May as the consumption tax hike took its toll. While some decline was expected, the 8% year-on-year drop puts the BOJ's optimistic economic forecast in doubt. As inflation cools with the diminishing impact of weaker yen (discussed here), the central […]

K is for Kruger-Dunning Effect

#88904682 / gettyimages.com We all know people suffering from Dunning-Kruger syndrome, but as Tim Richards explains, there is absolutely no point in sending this article to them. They will not believe you, they will not thank you, they will not change. ~ Ilene K is for Kruger-Dunning Effect Courtesy of Tim Richards of the Psy-Fi Blog The Kruger-Dunning […]

Is Obamacare Bad For US Economic Growth?

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. Following the rather stunning shenanigans of Q1 GDP with regard healthcare spending (as we detailed here), we thought, four years after its passage in 2010, it worth analyzing Obamacare's economic impact? Beforehand, economists generally believed that the broader coverage would raise the demand for […]

6 Weeks of Manic-Depressive Insider Trading Action

Bottoms Up is the Way to Go By Dr. Paul Price of Market Shadows Even corporate insiders have been indecisive over the last six weeks as world events and market sentiment shifted rapidly. The Thomson Reuters Insider Sell-Buy ratio has been pretty accurate during that period and over the full year ended June 27, 2104. […]

Three More GM Recalls Today: When Will It End?

Courtesy of Mish. In a seemingly unending series of recalls, GM announce three more recalls today. This set involves pickup trucks, SUVs, Corvettes, and police cars. With every announcement, I wonder “Is this the last?” But here we go again. The Wall Street Journal reports GM Discloses Yet Another Recall. General Motors Co. disclosed three […]

The Keynesian End Game Is Near: No Escape Velocity This Year, Either

The Keynesian End Game Is Near: No Escape Velocity This Year, Either Courtesy of David Stockman of Contra Corner The economic releases of the past few days are putting the lie to the Keynesian escape velocity myth. The latter is not just around the corner – and 2014 is now virtually certain to mark the fifth […]

Glad We Didn’t “Sell in May and Go Away”

Major Averages: Mixed         Market Shadows’ Value Mix: New Record By Dr. Paul Price of Market Shadows The DJIA and SPY posted fractional losses this week while the Nasdaq Composite rose by almost 0.7%. The three indices are all in the black year to date with profits running from 1.66% to 6.09%. […]

Another Ghost Town in China, This Time a Replica of Manhattan

(Click this link for the Bloomberg article and video.) Another Ghost Town in China, This Time a Replica of Manhattan Courtesy of Mish. Malinvestment in China proceeds at a staggering pace. Technically, this growth adds to GDP, but eventually it will be written off. Ghost cities, ghost malls, and empty train stations in China have […]

Divided Iraq Inevitable; Isis Targets Baghdad Green Zone; Obama’s Inane Weapon’s Proposal

Courtesy of Mish. A breakup if Iraq is now inevitable, even as the US and Iran are ideologically aligned in preventing that outcome. And while the US is still worried about potential problems a separate Kurdistan may cause, Turkey is Ready to Accept Kurdish State in Historic Shift. “In the past an independent Kurdish state […]

From the Archives : Shedding Light on Dark Pools

Courtesy of Larry Doyle. In light of the recent legal action brought by NY AG Eric Schneiderman against Barclays, I thought it might be beneficial to rerun a commentary that was initially posted here on October 20, 2009. Ponder that date for a minute. The issues exposed in the suit brought against Barclays are not […]

Rolling the Drunks

Rolling the Drunks Courtesy of Joshua M Brown In nineteenth century New York City, one of the more popular ways for the lower-class criminal element to earn a living was emptying the pockets of the inebriated passersby. The scam was so popular, it was given its own name: Rolling the drunks. Essentially, the tavern or saloon owners would […]

What’s Behind The Rise In U.S. Industrial Production?

Courtesy of Charles Hugh-Smith, Of Two Minds The domestic energy boom is behind the expansion of Industrial Production. In contrast to other measures of economic activity that are stagnant or declining, U.S. industrial production has been rising: Industrial Production and Capacity Utilization (Federal Reserve data) Is this evidence that manufacturing is on-shoring, i.e. returning from overseas? While there is anecdotal […]

The top ten ETFs of 2014 at the halfway point

The top ten ETFs of 2014 at the halfway point Courtesy of Joshua M Brown, The Reformed Broker  The most fascinating thing about the leading coffee ETNs (1 and 3), which rose 62% and 57% respectively, is that they faced a combined $100 million plus in outflows through the first six months – another reminder that […]

Why “Margin Debt” Is Meaningless In The New Shadow Banking Normal

  #157613808 / gettyimages.com Why "Margin Debt" Is Meaningless In The New Shadow Banking Normal Courtesy of ZeroHedge. View original post here. Everyone who has followed this website since 2009 will know that we firmly believe that the "magic plumbing" of the modern financial system is not what is seen on the surface, in terms […]

Barclays Dark Pool Lawsuit and the ‘In Bed with Wall Street Conspiracy’

Courtesy of Larry Doyle. The lawsuit filed by New York Attorney General Eric Schneiderman against Barclays for ‘pernicious fraud’ in the operation of its dark pool sent shock waves through Wall Street yesterday. The equity valuations for a number of large Wall Street banks declined significantly under the premise that this lawsuit will impact their own […]

Why CEOs Love Buybacks (One Simple Chart)

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. The CEOs of U.S. companies are compensated exceedingly well with the heads of the S&P 500 paid 331 times as much, on average, as production and nonsupervisory employees. As we wrote a month ago to explain the 'mystery and completely indiscriminate' buyer of US stocks, "Since a […]

Bitcoins to Become Legal Currency in California; Bill Awaits Signing by Gov. Brown; Commodities vs. Currencies

  #480262433 / gettyimages.com   Courtesy of Mish. California Bill AB-129 Lawful Money passed the California Senate on June 19, and the Assembly on June 23. The bill now awaits signing by Governor Jerry Brown. Existing law prohibits a corporation, flexible purpose corporation, association, or individual from issuing or putting in circulation, as money, anything […]

Dark Pools, Barclays and the ‘Tone at the Top’

Courtesy of Pam Martens. New York State Attorney General, Eric Schneiderman, (Right) Announcing Fraud Lawsuit Against Barclays Over Its Dark Pool Yesterday, New York State Attorney General Eric Schneiderman filed a civil fraud complaint against the global bank, Barclays, for what can best be summed up as fostering an internal culture that rewards serial lying […]

Made a Valuation-Based Swap

Sold IBM to Pick Up BBBY By Dr. Paul Price of Market Shadows When you are fully invested and a too-good-to-miss chance to buy pops up, you need to triage your portfolio. Something must be sold  to raise cash for the new position. With Bed, Bath & Beyond (BBBY) down 9% this morning and on […]