Archives for March 2015

If It Ain’t Broken, Don’t Fix It: Religious Freedom Act Take II

Courtesy of Mish. Religious Freedom Act Take II I received a number of emails in response to Indiana Legalizes Discrimination on Grounds of "Religious Freedom". The bill, signed by Indiana Governor Mike Pence openly encourages discrimination based on sexual preference although Pence incredulously denies that claim. Pence now recognizes the need to "clarify" the legislation. […]

In the News, 3-31-15

From Bloomberg Singapore Home Prices Post Longest Losing Streak Since 2004 Singapore’s home prices dropped for a sixth consecutive quarter, the longest losing streak in more than a decade, as tighter mortgage curbs cooled demand in Asia’s second-most expensive housing market. An index tracking private residential prices fell 1.1 percent in the three months ended […]

Chart o’ the Day: How Dispersion Stole the Alpha

Chart o’ the Day: How Dispersion Stole the Alpha Courtesy of Joshua M Brown Why have stock-picking fund managers had it so tough over the last few years? A lot of people would say high correlation in the stock market, but that’s only part of the story. According to Goldman Sachs strategists, the real culprit is […]

Downside Data Surprises in Canada; Bad Weather Up North? How About Recession?

Courtesy of Mish. The string of bad data reports not only applies to the US, economists up North appear to be no better at predicting the weather than US economists. Variant Perception reports Downside Data Surprises Continue in Canada. For the past 6 months, we have been alerting clients to the persistent decline in our […]

Apple CEO: Pro-discrimination ‘religious freedom ‘ laws are dangerous

  View image | gettyimages.com Apple CEO: Pro-discrimination ‘religious freedom ’ laws are dangerous  By TIM COOK, The Washington Post, via Business Insider There's something very dangerous happening in states across the country. A wave of legislation, introduced in more than two dozen states, would allow people to discriminate against their neighbors. Some, such as the bill enacted […]

Economists Fail to Predict Weather Once Again: Chicago PMI Disappoints

Courtesy of Mish. Chicago PMI Disappoints Economists expected a rebound in the Chicago PMI index this month following its collapse last month. Alas, once again the weather was much worse in Chicago than economists thought. The Bloomberg Consensus was for a rebound from last month’s dismal print of 45.8 back into positive territory of 50.2 […]

Why The Mania Is Getting Scary – Central Bankers Are Running A Doomsday Machine

Courtesy of David Stockman at Contra Corner If you need evidence that we are in the midst of a lunatic financial mania, just consider this summary from a Marketwatch commentator as to why markets are ripping higher this morning [March 30]: “The dovish comments from both Fed Chairwoman Janet Yellen and People’s Bank of China Governor Zhou Xiaochuan are […]

Why Is the Fed’s Stanley Fischer Tilting at Windmills?

Courtesy of Pam Martens. Stanley Fischer, Vice Chairman of the Federal Reserve Last Friday and again yesterday, the Vice Chairman of the Federal Reserve, Stanley Fischer, delivered speeches that attempted to refocus his audience away from the systemic global risk posed by behemoth Wall Street banks and redirect their gaze to dangers lurking in the […]

How The Fed Has Failed The Nation (In One Chart)

Courtesy of Charles Hugh-Smith of OfTwoMinds The Federal Reserve has failed not just the nation and the U.S. economy, but more importantly, the American people that it supposedly serves. It has also failed the world, by showing other central banks that they can reward private banks and top .01% with absolute impunity. The supposed goal of the […]

Former Fed Governor Admits Market Controlling The Fed Is A “Very Dangerous Development”

Courtesy of ZeroHedge. View original post here. The constant changes to Fed policy targets and enslavement to the ticker must change, according to former Fed Governor Kevin Warsh.  "The markets think they have Yellen's number," that she will never allow markets to go down, Warsh warns "that is a very dangerous development." We must stop […]

Recovery, Geopolitics and Detergents

Courtesy of The Automatic Earth. Gottscho-Schleisner Fulton Market pier, view to Manhattan over East River, NY 1934 Increasingly over the past year or so, when people ask me what I do, and that happens a lot on a trip like the one I’m currently on in the world of down under, I find myself not […]

Historical Perspective on CPI Deflations: How Damaging are They?

Courtesy of Mish. Yet another central bank has announced a warning about the perils of deflation. Please consider China Central Bank Calls for Vigilance on Deflation. China's central bank governor Zhou Xiaochuan warned on Sunday that the country needs to be vigilant for signs of deflation and said policymakers were closely watching slowing global economic […]

In the News, 3-30-15

From Bloomberg: FDA 'Taking a Very Light Touch' on Regulating the Apple Watch With Apple Inc. and fellow Silicon Valley companies edging further into health care, the U.S. agency in charge of oversight says it will give the technology industry leeway to develop new products without aggressive regulation. Bakul Patel, who oversees the new wave of […]

Indiana Legalizes Discrimination on Grounds of “Religious Freedom”

Courtesy of Mish. Can you refuse service to gays and lesbians? You can in Indiana thanks to the "Religious Freedom" Bill. Indiana Governor Mike Pence has signed a bill that would allow businesses to refuse service to gay and lesbian patrons on the grounds of “religious freedom”, even as some of the state’s largest business […]

Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It

Ben Bernanke, Confused as Ever, Starts His Own Blog to Prove It Courtesy of Mish. Ben Bernanke just started his own blog at the Brookings Institute. His first post, from today, Inaugurating a New Blog is the announcement. Let's dive into Bernanke's second post of the day: Why are Interest Rates So Low? Bernanke: Low […]

Wishful Thinking: “Strong Growth” to Propel Housing

Courtesy of Mish. CoreLogic chief economist Dr. Frank Nothaft says Strong Economic Growth To Propel US Housing Market in 2015. The U.S. economy is poised to grow by close to 3 percent in 2015, generating a 3- to 3.5-million-person gain in employment. This job growth, coupled with very low mortgage interest rates and some easing […]

Risk Has Begun To Rein

Risk Has Begun To Rein By Dana Lyons, Tumblr  The following piece was originally posted in J. Lyons Fund Management Inc.’s February Newsletter at www.jlfmi.com. Investment in the riskiest assets has been on a relative decline, a development which has preceded previous major tops. "For the moment all discipline seems painful rather than pleasant, but later it yields the peaceful fruit […]

Why Intel Wants Altera

Why Intel Wants Altera By Brian Nelson, Tumblr In its biggest potential acquisition in history, newsletter portfolio holding Intel is reportedly in talks to acquire Altera, though deal terms have yet to be disclosed. We think Intel could pay up to ~$40 per share for the company on the basis of the high end of our fair value estimate range […]

Is This The ‘Best’ Blood Type?

This caught my eye this morning. While the author confirms that the diet book, the Blood Type Diet (telling people what to eat based on their blood types), was junk science, she also explains that blood type is likely correlated to certain diseases and causes of death — the major ones. Essentially, type O blood doesn't clot as […]

How Many Slots Are Open In The Upper Middle Class? Not As Many As You Might Think

Courtesy of Charles Hugh-Smith via OfTwoMinds If America is the Land of Opportunity, why are so many parents worried that their princeling/princess might not get into the "right" pre-school, i.e. the first rung on the ladder to the Ivy League-issued "ticket to the upper middle class"? The obsessive focus on getting your kids into the "right" pre-school, […]

Paranoia Reigns in Congress Over an International Financial Cabal

Courtesy of Pam Martens. The Plenary: Governing Body of the Financial Stability Board It’s tough to keep up with the conspiracy theories that run rampant from day to day in the hallowed halls of Congress. But one that is gaining traction is that the U.S. Treasury Department’s Financial Stability Oversight Council (whose acronym is pronounced […]

UBS on the Driver for Gold: What is Gold About to Tell Us?

Courtesy of Mish. An interesting article came my way from UBS analyst Julien Garran on the driver for gold. I do not have a link to share so excerpts will have to do. Garran's article is one of the better one's I have seen. Unlike others, Garran does not cite jewelry, mining capacity, central bank […]

In the News, 3-29-15 (p.m.)

From around the web: Oil Companies Reap Large Gains After Cashing In Hedging Bets (The Wall Street Journal) Rocked by months of plunging crude prices, oil producers are harvesting financial bets to raise, for some, much-needed cash. (Read More) Woe Betide the Value Investor (Research Affiliates) Research Affiliates is a value shop in the tradition of Ben Graham’s […]

Sarkozy, Le Pen Triumph Over Socialists in Second Round of Local Elections

Courtesy of Mish. The Socialists were routed in the second round of French elections this weekend. The centre-right UMP party led by Nicholas Sarkozy was the clear winner but Marone Le Pen’s National Front had it best performance ever at the local level although it did not win any départements. The Financial Times reports Nicolas […]