Archives for October 2014

NASA Rocket With Russian-Made Engine Explodes On Takeoff; Ironies Abound

  #458019700 / gettyimages.com NASA Rocket With Russian-Made Engine Explodes On Takeoff; Ironies Abound Courtesy of Mish. Sanctions or not, NASA uses Russian-made engines to propel rockets. Yesterday, just seconds after takeoff, a NASA Antares rocket with a Russian-made engine exploded on takeoff. The mission was to carry supplies to the orbiting space station. Today, […]

Mortgage Purchase Applications Plunge To 19-Year Lows

The third chart shows that since around 2007, the correlation between interest rates and mortgage applications is more positive than negative, i.e. rates and number of applications are going in the same direction, mostly down. The spike in applications from around 1996 through 2005 could be attributed to the housing bubble (chart 2), but the failure of […]

Good Riddance To QE – It Was Just Plain Financial Fraud

  #457986924 / gettyimages.com Courtesy of David Stockman via Contra Corner QE has finally come to an end, but public comprehension of the immense fraud it embodied has not even started. In round terms, this official counterfeiting spree amounted to $3.5 trillion— reflecting the difference between the Fed’s approximate $900 billion balance sheet when its “extraordinary policies” incepted at the time of the […]

Why Does the U.S. Senate Need a Petition Drive to Hold Hearings on the Secret Goldman Sachs’ Tapes

Courtesy of Pam Martens. Traders at the New York Fed Have Speed Dials to Wall Street’s Biggest Firms It appears that Senators Elizabeth Warren and Sherrod Brown believe they may have a battle on their hands getting their colleagues on the Senate Banking Committee to agree to hold hearings on the now notorious tape recordings […]

MH17-Chief Investigator Investigates Possibility of Air-to-Air Missile, Seeks Cooperation From Russia

Courtesy of Mish. Spiegel Online interviews Fred Westerbeke, the Dutch lead investigator of flight MH17 crash. Westerbeke states that a surface-to-air missile is the most likely scenario, but he also discusses “secret satellite images and a possible involvement of the Ukrainian military.” Here are edited interview snips from MH17-Chief Investigator Westerbeke: “Do the Russians Have […]

Fed Again Issues Surreptitious SNAP Payments to Bankster Welfare Queens At Taxpayer Expense

Courtesy of Lee Adler of the Wall Street Examiner UPDATE- The Fed renewed its Term Deposit facility a couple of weeks ago initially taking in $110 billion in 7 day deposits paying 26 basis points. That amount rose to $219 billion today from 69 banks. Since these payments reduce the surplus which the Fed returns to […]

Dead Man’s Party

Courtesy of Tim Knight from Slope of Hope. About five blocks from my house is the residence of Marissa Mayer, the CEO of Yahoo who is famous for being employee #7 at Google, very smart, very vain, and (mildly) good-looking. At the midpoint between our two houses is a funeral home which, oddly, she decided to buy a couple of […]

Life Lessons To Derive From QE And Stress Tests

Courtesy of The Automatic Earth Arthur Rothstein Texas Panhandle Dust Bowl Mar 1936   I already proposed a few days ago that the recent ECB stress test exercise was such a shambles, it may well have been designed to fail on purpose. In order for Mario Draghi and his Goldman made men to be freed […]

ROSENBERG: Bear Markets Don’t Just Happen – They’re Caused By These Two Conditions

ROSENBERG: Bear Markets Don't Just Happen — They're Caused By These Two Conditions Courtesy of SAM RO, Business Insider Gluskin Sheff's David Rosenberg isn't rattled by the recent volatility in the financial markets. "For stocks, it always comes down to the Fed and the economy," Rosenberg said to Business Insider. "The reality is that bear markets do […]

Nomi Prins: Why The Financial & Political System Failed And Stability Matters

Courtesy of ZeroHedge. View original post here. Submitted by Nomi Prins, author of All The Presidents' Bankers, via NomiPrins.com, The recent spike in global political-financial volatility that was temporarily soothed by ECB covered bond buying reveals another crack in the six-year-old throw-money-at-the-banks strategies of politicians and central bankers. The premise of using banks as credit […]

Durable Goods Decline Second Month; Key Take-Aways

Courtesy of Mish. Inquiring minds are digging into the Census Bureau Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders for September 2014 for hints at 4th quarter GDP. The headline data shows new orders for manufactured durable goods in September decreased $3.2 billion or 1.3 percent. This follows an 18.3 percent decline in […]

Forget “Free Trade” – Focus On Capital Flows

Courtesy of Charles Hugh-Smith of Of Two Minds In a world dominated by mobile capital, mobile capital is the comparative advantage. Defenders and critics of "free trade" and globalization tend to present the issue as either/or: it's inherently good or bad. In the real world, it's not that simple. The confusion starts with defining free trade (and by […]

El-Erian: “Europe Is One or Two Rounds of Sanctions From Recession”; El-Erian Far Too Optimistic

Courtesy of Mish. In a speech on BRICs at the Peterson International Institute of Economics former PIMCO co-head El-Erian made the claim Europe Is One or Two Rounds of Sanctions From Recession. The West, and Europe in particular, is one or two rounds of sanctions and counter-sanctions away from entering into a new recession, chairman […]

Wall Street Journal: Wealth Inequality Is Your Own Dumb Fault

Courtesy of Pam Martens. Yesterday the Wall Street Journal gave prominence to the following headline on page one of its newspaper with the story jumping to page A2: “Bad Market Timing Fueled Wealth Gap.” Through the use of the word “fueled” in that headline, the reader is conditioned to believe that market timing is a […]

Most Expensive Housing Markets in US are Liberal: Correlation or Cause?

Courtesy of Mish. Here’s an interesting article thanks to Jed Kolko, Chief Economist at Trulia Trends via Washington Post Wonkblog: The most expensive housing markets in the U.S. are also the most liberal. The relationship between housing affordability and politics in the US is startlingly strong as these charts by Jed Kolko shows. Median asking […]

Chris Hedges: The Myth of a Free Press

Chris Hedges: The Myth of a Free Press Courtesy of Jesse's Cafe Americain The bias in the US media towards corporate and special interests is apparent in some sources more easily and readily than in others, especially if one has access and bothers to look at a broad base of international news sources.   The great […]

The Gift that Keeps on Giving

The Gift that Keeps on Giving Courtesy of Wade of Investing Caffeine There have been numerous factors contributing to this bull market, even in the face of a slew of daunting and exhausting headlines. Contributing to the advance has been a steady stream of rising earnings; a flood of price buoying stock buybacks; and the all-important […]

Is This The Reason Twitter Is Tumbling After Hours?

Courtesy of ZeroHedge. View original post here. Submitted by Tyler Durden. While overall Twitter's just released Q3 numbers were more or less in line as expected, with Q3 EPS printing at just a penny, the same as expected on $361 million in revenues, $10 million higher than the $351 million consensus estimate, and even EBITDA […]

Tapering, Exiting, or Just Punting?

Tapering, Exiting, or Just Punting? Courtesy of James Kunstler Oh, that sound you hear this morning is the distant roar of European equity markets puking after the latest round of phony bank “stress tests” — another exercise in pretend by financial authorities who understand, at least, the bottomless credulity of the news media and the […]

This Little Piggy Bent The Market

Things That Make You Go Hmmm: This Little Piggy Bent The Market By Grant Williams About 18 months ago, I had a very pleasant chat with a gentleman by the name of Luzi Stamm. You may detect some measure of surprise in my words, and the reason for that is quite simple: Luzi Stamm is […]

HUSSMAN: I Think The Stock Market Is Crashing

HUSSMAN: I Think The Stock Market Is Crashing Courtesy of HENRY BLODGET of Business Insider Fund manager John Hussman of the Hussman Funds has been one of the most vocal bears on Wall Street for the past few years. The market has continued to rise strongly in the face of these warnings, which has clobbered Hussman's reputation and performance. […]

The Saudis have the staying power to undercut the competition

The Saudis have the staying power to undercut the competition Courtesy of Sober Look According to Deutsche Bank, the Saudi government can sustain itself for almost 8 years with Brent crude at $83/bbl. The nation's government has accumulated sufficient "rainy day funds" to withstand a prolonged period of budget deficits driven by low oil prices. […]

Why The Fed Will End QE On Wednesday

Courtesy of Lance Roberts of STA Wealth Management This week we will find out the answer to whether the Federal Reserve will end its current quantitative easing program or not (click here for more discussion on this issue). Today is the last open market operation of the current program, and my bet is that it will […]

“Will These Central Bank Morons Ever Learn?” asks Albert Edwards at Societe General

Courtesy of Mish. Central Banks and the Business Cycle I like it when someone besides a few financial bloggers takes the gloves off and starts asking some hard-hitting questions. In Cross Asset Research last week, Albert Edwards at Societe General did just that. Emphasis in italics is mine. Fragile and vulnerable in itself, the US […]