Archives for February 2015

In Memory of Spock: Live Long and Prosper; Is He or Isn’t He? Fish Tomatoes, Hand Transplants, Sci-Fi vs. Reality

Courtesy of Mish. One of my favorite characters in TV history was Star Trek’s “Spock”. Yesterday, Leonard Nimoy, Spock of ‘Star Trek,’ Died at 83. Leonard Nimoy, the sonorous, gaunt-faced actor who won a worshipful global following as Mr. Spock, the resolutely logical human-alien first officer of the Starship Enterprise in the television and movie […]

Greece Negotiations Resume Again; “Constructive Ambiguity”; Schäuble Outmaneuvered!

Courtesy of Mish. On Friday, the German Bundestag Backed the Greek Bailout Extension. Ahead of the vote, many commented that Greece collapsed. It’s not all that simple as I have explained. The likely explanation for the alleged collapse of Syriza is Greece did not have a primary account surplus. Had it left now, it would […]

Did the Dollar Get its Groove Back?

Did the Dollar Find its Groove Again? Courtesy of Marc To Market. The US dollar traded higher against most of the major currencies over the past week.  No thanks to Yellen's testimony before Congress.  Market participants took away from her a reduced chance of a mid-year rate hike. We disagree with the interpretation, seeing her comments […]

China And The Dragon Tail Of Marx

Courtesy of Charles Hugh-Smith of OfTwoMinds The dragon tail of Marx's end-game of overcapacity and finance capital is about to shred China's fantasy that the state can micro-manage both capitalism and financialization with no contradictions or consequences. Longtime readers know my one expertise is annoying the entire ideological spectrum in 1,000 words or less. Today is one […]

Panic in Ukraine Over Food, Empty Stores and Protests; Strategic Food Reserve Empty

Courtesy of Mish. Here’s a brief update from “Ellen” who lives in Lviv, a city in Western Ukraine. Hello Mish We have quite a panic over the collapse of currency. People buy any food product that can be stored. Everyone wants to rid of Hryvnia. We haven’t seen anything like this since 1991 when the […]

The Echo Boom, Part 2

The Echo Boom, Part 2 Courtesy of Pater Tenebrarum, Acting Man Boom-Bust Mechanics We want to focus on a specific aspect of the current money supply expansion in this part. Price inflation, as well as investment and production will be discussed in a follow-up post shortly. Let us consider the mechanics of past boom-bust cycles […]

The Epic Retrophin 8-K Filing

The Epic Retrophin 8-K Filing Courtesy of Bronte Capital Martin Shkreli was formerly a biotech short-seller. I know those people. I am one. They have their eye out for the inflated claim re. the efficacy of a drug and the wheeling and dealing in stock. Unusually Martin became CEO of a biotech (Retrophin) and became […]

Shovelin’ Schmitt Against the Tide

Outside the Box: Shovelin’ Schmitt Against the Tide By John Mauldin There is an obsession in the marketplace over the date when the Fed will once again begin to raise rates. As if another 25 basis points is going to change the economics on tens of trillions of dollars of investments. But as we reflect […]

Why Expectations for Future Global Business Activity are Plunging

Why Expectations for Future Global Business Activity are Plunging Note: This article is excerpted from "The State of the Global Markets 2015 Edition," a recent report by Elliott Wave International. In its November issue, published on Oct. 31, EWI's European Financial Forecast discussed the plunging 5-year/5-year forward swap, a market-based gauge that measures inflation expectations […]

“NowCast” – The Evolution of GDP Forecasting

Courtesy of Mish. In the wake of existing home sales reports on Monday, and new home sales yesterday, GDP and residential investment forecasts came tumbling down. Check out the latest “GDP Nowcast” from the Atlanta Fed. “The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2015 was […]

Chicago PMI Crashes to 5 1/2 Year Low: Production, New Orders, Backlogs Suffer Double Digit Declines

Courtesy of Mish. Fourth quarter GDP was revised lower today to 2.2 percent from 2.6 percent previously estimated. Looking ahead, I think we are going to see some shocking downward estimates in the months to come. Meanwhile, a shocking PMI report came out today. Chicago PMI Crashes to 5 1/2 Year Low ISM Chicago reports […]

Recession is On the Way: Questioning One’s Sanity; Beat the Crowd, Panic Now!

Courtesy of Mish. In 2006-2007 I called for a recession. We got a big one. I called for another one in 2011, as did the ECRI. That recession never happened. 50% is not a very good recession predicting track record except in comparison to consensus economic opinions that have never once in history predicted a […]

Yet Another Record Low In Initial Unemployment Claims Screams Danger

Courtesy of Lee Adler of the Wall Street Examiner The actual unmanipulated data on weekly first time unemployment claims paints a picture of a US economy that is in a bubble that is boiling over, driven by the massive central bank money printing campaigns and ZIRP. The headline, fictional, seasonally adjusted (SA) number of initial unemployment […]

When do we decide that Europe must restructure much of its debt?

When do we decide that Europe must restructure much of its debt? Courtesy of Michael Pettis  It is hard to watch the Greek drama unfold without a sense of foreboding. If it is possible for the Greek economy partially to revive in spite of its tremendous debt burden, with a lot of hard work and even […]

Ukraine Rations Food; Interbank Rate New Record Low; Monetization of Bonds; “Devaluation Kerosene”; Electronics a Store of Value

Courtesy of Mish. A chart of Ukraine’s currency is nonsensical once again today. Supposedly the hryvnia rallied again today, if only by a miniscule amount 0.15%. Yet, once again the chart is complete nonsense. Black Market Rate The Black Market Rate today is a bit improved, with a bid/ask spread of 29.45 to 34.55. How […]

3 Things – High Yield Warning, Yellen’s Employment & Economy

Courtesy of Lance Roberts via STA Wealth Management A High-Yield Warning With Janet Yellen recently warning about overvaluation in the bond market, I thought it would be important to look at potentially one of the single most overvalued areas in that market – high yield. To wit: "However, the staff report noted valuation pressures in some […]

Economic Composite Index Suggests Restocking Cycle Is Over

Courtesy of Lance Roberts via STA Wealth Management Since the end of the financial crisis, the economy has ebbed and flowed between expansions and contractions. The contraction in economic activity during the financial crisis was followed by a surge in economic activity as inventories were restocked, and pent-up demand was filled. The same occurred during, and […]

Right-to-Work Sweeps Midwest, Heads for Passage in Wisconsin

Courtesy of Mish. Right-to-Work legislation is sweeping the Midwest. It’s one of many reforms needed to makes states more competitive, reduce cost pressures on infrastructure projects, and hold down the necessity of tax hikes. Today the Wisconsin Senate Passed ‘Right to Work’ Legislation. The proposal would let workers opt out of paying mandatory dues. Many […]

Greece Suffers Biggest Bank Run In History: January Deposits Plunge To 2005 Levels

View image | Greece Suffers Biggest Bank Run In History: January Deposits Plunge To 2005 Levels Courtesy of ZeroHedge. View original post here. One of the biggest question marks surrounding the Greek negotiation and ultimately, bailout extension, was just how panicked the Greek population and domestic corporations were. As previously noted, the tension boiled […]

Reforming the Fed: Who’s Right; Who’s Wrong?

Courtesy of Pam Martens. Congressman Jeb Hensarling, Chair of the House Financial Services Committee The Republicans are making good on their campaign pledge to turn up the heat on the Federal Reserve. Sparks flew in the House Financial Services Committee hearing room yesterday as Fed Chair Janet Yellen appeared to present her semi-annual testimony. At […]

Briefing For A Descent Into Hell

Courtesy of The Automatic Earth. Ben Shahn “Scene in Jackson Square, New Orleans” 1935 Oh well, some are more equal than others. One day after Eurogroup head Dijsselbloem says France won’t get any more lenience … France Must Respect EU Budget Rules France must meet EU budget targets or risk damaging the bloc’s entire framework […]

Mariupol Exchange Rates vs. Laughable “Official” Rate: Foreign Exchange Intervention; IMF Calling the Shots?

Courtesy of Mish. Colonel Cassad reports It Takes 44 Hryvnia to Buy a Dollar in Mariupol. Let’s do some quick math. On Monday (perhaps reflective of Sunday) Ellen, who lives in Kiev wrote “Today $1 is worth 36 hryvnias on the black market. A Week ago it was 20 hryvnais. No one knows where the […]

Presented without comment…

As usual I was looking for something uniquely entertaining today, and Joshua M. Brown came through with Morgan Stanley’s Hunger Games-inspired video. I'm not sure what M.S. management was thinking when it produced this video, but apparently someone had second thoughts between the making of the video and the releasing of the video. Presented without comment… […]

Ukraine Enters The Endgame

Ukraine Enters The Endgame Courtesy of ZeroHedge. View original post here. Back in March 2014 we forecast that it in the aftermath of the US State Department-sponsored military coup in Kiev, it was only a matter of time before Ukraine (all of its sovereign gold having since "vaporized") succumbed to full blown hyperinflation and economic […]