Archives for February 2015

Another Reason To Worry About The Stock Market

Courtesy of John Rubino. The world is full of “carry trades” these days, and that’s a really bad thing. In general terms, a carry trade involves someone borrowing money cheaply in one currency or market and investing the proceeds in something else that offers a higher yield. The strategy is profitable as long as the […]

Ukraine Hyperinflation; Currency Plunges 44% in One Week! Actual Black Market Rates; Poroshenko Gives “Ultimatum” to Central Bank to Fix Exchange Rate

Courtesy of Mish. I hear various reports of what the hryvnia actually trades for on the black market in Ukraine. I believe the reports, but they come in piece-mail. Today, I have an actual black market link to share thanks to reader Oleg from Crimea. In response to Ukrainian Currency Comparison: Budget Rate vs. Official […]

How Far Is It From Kiev To Athens?

Courtesy of The Automatic Earth. Gordon Parks “New York, New York. Scene in Harlem area.” 1943 Riddle me this, Batman. I don’t think I get it, and I definitely don’t get why nobody is asking any questions. The IMF and EU make a lot of noise – through the Eurogroup – about all the conditions […]

In Search of the Magic Wand: Career Change at Age 45 Possible?

Courtesy of Mish. Reader Mark has a career question. Mark writes … Hi Mish: I am 45 years old. I have worked in the grocery business for 20 years. I am starting to have back problems. I would like to move on. Do you have any suggestions as to a suitable career for someone my […]

What Dodd-Frank Didn’t Fix: The Worst Conflicts on Wall Street

Courtesy of Pam Martens. Mary Jo White, Testifying at Her Confirmation Hearing for SEC Chair on March 12, 2013; Her Husband, John W. White, Partner at Cravath, Swaine & Moore, Sits to Her Left Two major stories have broken this week showing how little has actually changed under the much heralded financial reform legislation known […]

Kimble Charts: Coal

Kimble Charts: Coal Chris Kimble’s chart for KOL shows a recently beaten down ETF struggling to pull itself up from the ashes. As the chart shows, KOL has recently drifted down to levels not seen since the financial crisis of 2008-9. Bouncing or recovering with energy in general, coal prices appear to have stabilized in the short-term. Reflecting coal […]

Emails From Kiev: Free Speech Vanishes, Total Media Thought Control; US Radar System Falls Into Rebel Hands?

Courtesy of Mish. Free Speech Vanishes – Total Media Thought Control I have a couple emails from Ukraine to share, one from two days ago, one from yesterday. Both are from "Ellen" who lives in Kiev (name changed). Two Days Ago From Ellen As you know, the Debaltsevo pocket situation is resolved. It's not as […]

War of Terror: “Disappeared in Chicago”; Illegal Detention by Chicago Police Without Charges; Beatings and Death

Courtesy of Mish. Meet the “Nato Three” Brian Jacob Church, Jared Chase and Brent Vincent Betterly, known as the ‘Nato Three’. Photograph: AP/Cook County sheriff’s office. All were arrested, put in an “off-the-books” interrogation compound in Chicago and denied access to lawyers. This goes on every day. People are beaten and threatened. It’s all part […]

Debt Be Not Proud

Thoughts from the Frontline: Debt Be Not Proud By John Mauldin Some things never change. Here is Eugen von Böhm-Bawerk, one of the founding intellectuals of the Austrian school of economics, writing in January 1914, lambasting politicians for their complicity in the corruption of monetary policy: We have seen innumerable variations of the vexing game […]

14 Signs That Most Americans Are Flat Broke And Totally Unprepared For The Coming Economic Crisis

Courtesy of Michael Snyder at The Economic Collapse When the coming economic crisis strikes, more than half the country is going to be financially wiped out within weeks.  At this point, more than 60 percent of all Americans are living paycheck to paycheck, and a whopping 24 percent of the country has more credit card debt […]

Cash for Gas: Russia Threatens to Shut Off Gas in Two Days for Lack of Payment; Meter Maid Called In

Courtesy of Mish. Meter Maid Called to Resolve Dispute Last year, Russia shut off gas deliveries to Ukraine for lack of payment. Most of the flow through Ukraine goes to Europe, but Russia accused Ukraine of siphoning off gas without paying for it. In December, Ukraine agreed to prepay for gas. The flows resumed, but […]

Ukrainian Currency Comparison: Budget Rate vs. Official Rate vs. Interbank Rate vs. Street Rate

Courtesy of Mish. Last Friday, reader John told me the “street rate” for currency in Ukraine was not the reported 28 Hryvnias per US$ but rather on the order of 32 per US$. I asked John where he got his information. He replied, “from my sister who lives in Lviv“. Lviv is a beautiful city […]

The Easy Oil Is Gone So Where Do We Look Now?

The Easy Oil Is Gone So Where Do We Look Now?  By Andrew Topf of  In 2008, Canadian economist Jeff Rubin stunned the oil market with a bold prediction: With the world economy growing at 5 percent a year, oil demand would grow with it, outpacing supply, thus lifting the oil price from $147 […]

JP Morgan to charge big clients fees on deposits

Emily Glazer at the Wall Street Journal reports on JP Morgan's move to reduce large deposits, worth about $390 billion, down to about half of that. The fees will presumably force the clients into switching to other ways of holding their money and/or other less liquid investments. The stock market likes the news, shares are up about 2.5%. To read the […]

Lowest Interest Rates EVER

Courtesy of John Rubino. Business Insider’s Myles Udland just posted a chart, drawn from research by the Bank of England, showing interest rates for the past 3,000 years. And for all those who’ve been feeling like today’s “new normal” is actually profoundly abnormal, here’s your proof. It turns out that interest rates, both long and […]

Is Oil Returning To $100 Or Dropping To $10?

Is Oil Returning To $100 Or Dropping To $10? Courtesy of Martin Tillier via If you have been following the price of oil over the last few months, the chances are you’re a little confused. On the one hand you have Gary Shilling who, in this Bloomberg article, loudly trumpets the prospect of oil at $10/Barrel, […]

Crash Course in Free Market Economics and Income Inequality

Courtesy of Mish. On February 19 Doug McMillon, President & CEO, Walmart, announced higher pay in a Letter to Associates. Bloomberg columnist Barry Ritholtz, a higher minimum wage advocate, pounced on the news, calling the wage hike Wal-Mart’s Crash Course in Labor Economics Last week, we learned that Wal-Mart was giving the lowest paid of […]

Revolt In Athens: Syriza Central Committee Member Says “Leadership Strategy Has Failed Miserably”

Courtesy of ZeroHedge. View original post here. Not everybody is ignoring that fact that just days after the new Prime Minister promised the Greek population on prime time TV that the loathed bailout program wouldn't be extended and that Greece would have a fresh start – i.e., the mandate it was elected on – one […]

Chart Of The Day: The Run For Nasdaq All-Time Highs

Courtesy of Lance Roberts via STA Wealth Management With the S&P 500 and Dow Jones Industrial Averages already hitting real, inflation-adjusted, all-time highs; market participants have now turned their attention towards the Nasdaq Composite. Today's "Chart of the Day" takes a look at just how close, and far, the Nasdaq is from joining the "all-time" […]

Throw Your Grandma Under The Bus

Courtesy of The Automatic Earth. Dorothea Lange “Men on ‘Skid Row’, Modesto, California” 1937 Before we get news in a few hours on the new proposals Greece is required to hand to its slavemasters today, Monday Feb 23, it seems relevant to point out one more time that what is happening to Greece is the […]

JPMorgan, Still On 2-Year Probation, Under Scrutiny in Gold Fixing Probe

Courtesy of Pam Martens. The financial press is reporting this morning that the U.S. Justice Department is investigating at least 10 of the biggest U.S. and foreign banks for potentially rigging the gold market and other precious metals markets. That investigation comes while ongoing investigations continue into the potential rigging by big banks of the […]

Uneven Housing Recovery in Pictures: Florida, Arizona, Illinois the Worst Large-Population Performers

Courtesy of Mish. The latest Black Knight HPI report shows what I call the “Uneven Housing Recovery“. Nationally, prices are up 4.5% from a year ago, and down 0.1% from last month. Variances are wide. A few pictures will explain what I mean.  Biggest Movers This Month Biggest Metro Movers This Month Think Florida looks […]

Too Many Houses, Not Enough Jobs

Courtesy of John Rubino. Today’s existing home sales report was down another 4.9% to an annual rate of 4.82 million units, the lowest in nearly a year. And this, remember, is in the sixth year of a recovery with reported unemployment below 6% and the Fed preparing to raise interest rates to head off incipient […]

Union Group Mobilizes “Against” Pay Hike

Courtesy of Mish. In what may be a first (otherwise an extreme rarity), a substantial force within a union has mobilized against a pay hike to $9.00 per hour from essentially nothing. “Nothing” you say? Yes, it happens in small non-profit theaters that pay aspiring actors $7 to $15 per performance. Rehearsal time does not […]