Archives for September 2014

RX For Revisionist Bunkum: A Lehman Bailout Wouldn’t Have Saved The Economy

Courtesy of David Stockman via Contra Corner Here come the revisionists with new malarkey about the 2008 financial crisis. No less august a forum than the New York Times today carries a front page piece by journeyman financial reporter James Stewart suggesting that Lehman Brothers was solvent; could and should have been bailed out; and that the entire trauma […]

Draghi Pressures ECB to Buy “Junk-Rated” Loan Bundles of Greece and Cyprus

Courtesy of Mish. On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB’s balance sheet by another €1 trillion. Draghi confirmed the asset purchases would “include the real estate, the RMBS, real estate ABS. It would also include a fairly wide range of ABS containing loans to […]

The U.S. Government Is Borrowing About 8 Trillion Dollars A Year

Courtesy of Michael Snyder of The Economic Collapse The U.S. government is borrowing about 8 trillion dollars a year, and you are about to see the hard numbers that prove this.  When discussing the national debt, most people tend to only focus on the amount that it increases each 12 months.  And as I wrote about […]

Yeah I said it.

Yeah I said it. Courtesy of Joshua M Brown Flowchart: Is my stock going up? pic.twitter.com/scjFv5kaqG — Downtown Josh Brown (@ReformedBroker) September 30, 2014   Yes, this is basically what the “rally” has come to. Change is due in one direction or the other, the present condition is unsustainable.  

Debt Rattle Sep 30 2014: Why The Fed WILL Raise Rates

Courtesy of The Automatic Earth. Herbert Mayer Honi soit qui mal y pense: Aug 1939 This is not the first time I’ve written on this topic, but I want to do it again, because rate hikes, when they come, will have a tremendous effect on everybody’s loves and economies, wherever you live. And because I […]

Europe: The ONE Economic Comparison That Must Not Be Named… Was Just Named

Europe: The ONE Economic Comparison That Must Not Be Named… Was Just Named The Continent is now teetering on the edge of a "Japan-style" deflation. Here's our take on it. By Elliott Wave International It's happened. The one economic comparison Europe has dreaded more than any other; the name that's akin to Lord Voldemort for […]

“Come Hell or High Water” Promise Morphs Into “Infinity and Beyond”

Courtesy of Mish. In 2010, vice-president Joe Biden publicly vowed the US would be “totally out” of Afghanistan “come hell or high water, by 2014.” In a few short months, 2014 will be gone. Are US troops out of Afghanistan? Nope. Iraq? Nope. Instead, we have troops in Syria. Political Promises Political promises should never […]

You can’t even spell “capitulation”

You can’t even spell “capitulation” Courtesy of Joshua M Brown, The Reformed Broker People are starting to freak out a little. A massive amount of individual stocks have dropped more than 20 percent from their 52-week highs this fall and this is beginning to dawn on folks. The bullshittiness of the S&P 500’s year-to-date gain – driven by […]

Reader Question on a Credit-Based Society: Can Interest Ever Be Repaid?

Courtesy of Mish. Reader Mike wonders how interest can ever be repaid in a credit-based economy. Hi Mish, I wonder if you would be able to comment on this from Bill Gross in For Wonks Only: "A credit-based financial economy (as opposed to pure cash) depends on an ever-expanding outstanding level of credit for its […]

Is the Stock Market Top In?

Courtesy of Charles Hugh-Smith of OfTwoMinds  The pool of greater fools willing and able to buy assets at higher prices with leveraged free money has been drained by six years of credit/risk expansion. [Picture from WikiImages at Pixabay ~ Ilene] Is the top in U.S. stocks in? The consensus is "no"–corporate profits are rising, the U.S. economy is recovering and […]

Hong Kong Protesters Give Wednesday Deadline For Reform As Chinese Army Watches From Above

  #456408520 / gettyimages.com Hong Kong Protesters Give Wednesday Deadline For Reform As Chinese Army Watches From Above Courtesy of ZeroHedge The crowds of protesters in Hong Kong swelled overnight with some estimates that 3-400,000 "will join in a show of people's power," on the eve of the two-day National Day holiday. With neither side […]

New Report: Global Economies May Be on Path to Another Crash

Courtesy of Pam Martens. U.S. Total Debt by Sector, 1916 to 2014, from International Center for Monetary and Banking Studies and CEPR Four noted economists have issued a report under the umbrellas of the International Center for Monetary and Banking Studies and the Centre for Economic Policy Research (CEPR) that is raising alarm bells at […]

The Difference Between Nominal And Real, In One Chart Courtesy Of Japan

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. For about three years, or just before the terminal Keynesian/monetarist experiment of Abenomics was launched, Japanese wages were flatlining, happily hugging the 0% Y/Y line. But that was ok, because the country had deflation or at best 0% inflation, meaning quite often real wages, […]

Schoolgirls Aged 14-16 Leave France, UK, Germany for Syria to Join ISIS Jihad

Courtesy of Mish. As many as 63 seriously misguided teenaged girls from France, 40 from Germany, and 50 in the UK have left their countries to join ISIS in Syria. The Guardian has a fascinating report on Schoolgirl jihadis: the female Islamists leaving home to join Isis fighters. Hundreds of young women and girls are […]

Clinkle is the New Color

Courtesy of Tim Knight from Slope of Hope Greetings from Palo Alto. Over three years (and thousands of posts……) ago, I wrote Color and the Mania in This Valley. The thrust of my post was: + Color.com had received $41 million to develop an app; + The app sucked out loud; + The company deserved to fail. […]

Debt Rattle Sep 29 2014: A Rare Sane European

Courtesy of The Automatic Earth. W.H. Jackson Rice Creek near Brown’s Landing, Putnam County, FL 1890 Something tells me I make get into trouble with my Czech and Slovak friends – and readers – over this, but I was still struck by the following interview with former Czech prime minister and president Václav Klaus. I […]

Study Finds Treated Fracking Wastewater Still Too Toxic

  #455983964 / gettyimages.com   Study Finds Treated Fracking Wastewater Still Too Toxic Courtesy of Andy Tully via OilPrice.com One of the biggest concerns about hydraulic fracturing, or fracking, is that the vast amount of wastewater produced by the process of extracting oil and gas from shale rock deep underground is incredibly toxic.   Most often, […]

The Goldman Tapes and Why the Delusion of Macro-Prudential Regulation Means the Next Crash is Nigh

Courtesy of David Stockman via Contra Corner There is nothing like the release of secret tape recordings to clarify an inconclusive debate. I recall that happening with Nixon back in the day. Even as a Washington apprentice I could see that he was a ruthless, power hungry abuser of his office, but much of official Washington just denied it. Then […]

US Bombed Wrong Refineries in Syria; Iran Seeks to Stop Oil Price Slide; Sanctions Won’t Impede Arctic Drilling

Courtesy of Mish. US Bombed Wrong Refineries in Syria Oil is in the news in many countries in many ways. Let's take a look starting with a couple of paragraphs buried in the Financial Times report Barack Obama Admits US Underestimated Isis. Allied aircraft on Sunday struck three makeshift oil refineries in an area controlled […]

We’ll Become ISIS

James Kunstler looks at our country from a darkened view, and from there, goes further into the shadows. We’ll Become ISIS Courtesy of James Kunstler I played fiddle at a small-town, country dance last night with several other musicians and it was a merry enough time because that kind of self-made music has the power to […]

The Fraud At Textura

The Fraud At Textura Courtesy of Citron Reports by Stocklemon Target Price — 12 Months = $4 In December of 2013, Citron Research introduced readers to Textura Corp. (NASDAQ:TXTR), documenting the CEO’s history of fraud and failed businesses, and a shadowy weave of poorly disclosed insider relationships.  In its last three quarters, Textura has missed analyst expectations […]

Spain Manufacturers Warn of Another Slowdown; Consumption Recovery Ends, Retail Sales Contract, Price Deflation Sets In

Courtesy of Mish. The alleged recovery in Spain is already over. Retail sales are down month-over-month and year-over-year in July. August and September are both projected to be weak. Vial translation from El Economista, Manufacturers and Retailers Warn of Another Consumption Slowdown. After a slight recovery in the first months of the year, stagnation set […]

The End of Monetary Policy

Thoughts from the Frontline: The End of Monetary Policy By John Mauldin We are the hollow men We are the stuffed men Leaning together Headpiece filled with straw. Alas! Our dried voices, when We whisper together Are quiet and meaningless As wind in dry grass Or rats’ feet over broken glass In our dry cellar… […]

Carmen Segarra: Wall Street’s Spy Vs Spy

Pam Martens writes about the Segarra Tapes released last week. These tapes show how the regulation of Wall Street is a complete failure, a farce, with only punishment waiting for those who speak out as Carmen Segarra did. William D. Cohan noted that the Segarra Tapes didn’t reveal much we didn’t already know. Sadly, this is […]