Archives for March 2015

Living in a Free-Lunch World

Living in a Free-Lunch World Courtesy of John Mauldin, Thoughts from the Frontline “Everyone is a prisoner of his own experiences. No one can eliminate prejudices – just recognize them.” – Edward R. Murrow, US broadcast journalist & newscaster (1908 – 1965), television broadcast, December 31, 1955 “High debt levels, whether in the public or […]

US Dollar: American Phoenix

Outside the Box: US Dollar: American Phoenix By John Mauldin  “Just a little patience, yeah…” – Guns N’ Roses Lastweek the FOMC essentially removed forward guidance and placed all options back on the table, and at the end of the day they’ve opened the door for further tightening. As Yellen recently explained in advance, the […]

Time to Eliminate Pilots in Aircrafts: Post Pilot Era Coming Up

Courtesy of Mish. Instead of new rules making sure two people are in the cockpit at all times, how about a rule that says no one is cockpit? This is precisely how I felt after 911 and even more so after the disappearance of Malaysia Flight 370 on March 8. The tragedy of Germanwings Flight […]

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

From around the Web: Business Insider presents the 10 things in tech you need to know today. Company mentioned include Apple, Google, Amazon, Yahoo, Facebook and Uber. Alasdair Macleod at GoldMoney argues "though the Fed would deny it, it is clear from the minutes of the last Federal Open Market Committee (FOMC) meeting that a rise in interest rates […]

The Fed Has Not Learnt From The Crisis

Courtesy of Steve Keen at The Financial Crisis of 2007 was the nearest thing to a “Near Death Experience” that the Federal Reserve could have had. One ordinarily expects someone who has such an experience—exuberance behind the wheel that causes an almost fatal crash, a binge drinking escapade that ends up in the intensive care ward—to […]

Can the Eurozone Survive? Not in Its Current Form Says PIMCO; Mish Response

Courtesy of Mish. Echoing statements I have made many times, PIMCO says the single currency area must become a “United States of Europe” in order to secure its future. Please consider Eurozone can’t survive in current form, says PIMCO. The eurozone is “untenable” in its current form and cannot survive unless countries are prepared to […]

The American Dream Part 2 – We Now Live In A “Pimpocracy”

Courtesy of Bill Bonner at Acting-Man blog Shabby Immensity Today, we continue mouth wide open (Part 1 here) … staggered by the shabby immensity of it … a tear forming in the corner of our eye. Yes, we are looking at how the US economy, money and government have changed since President Nixon ended the gold-backed […]

Buffett buys Kraft Foods: A big bite

  View image | The Economist discusses the merits of Buffett's latest acquisition, Kraft Foods.  Buffett buys Kraft Foods: A big bite  Berkshire Hathaway’s latest big deal is quite a mouthful WARREN BUFFETT says he likes to buy companies that are easy to understand and are performing well. His latest deal, the $50 billion acquisition […]

Who Should-And Who Shouldn’t-Take Vitamin D

Are you supplementing with vitamin D? I have been; my levels are consistently low. In Who Should—And Who Shouldn’t—Take Vitamin D, Alice Park suggests that supplementing with more than 600 IUs is too much. Her argument makes sense: there isn't enough data to understand the effects of vitamin D (or specifically, trying to increase blood levels vitamin D) and the dangers of […]

Wally Becomes Chief Economist for Dilbert, Predicts “Bubble in Monetary Policy”

Courtesy of Mish. On the lighter side, in the March 28, 2015 Dilbert, Wally becomes the new chief economist. Wally: "The exchange rate on derivatives will trigger a bubble in monetary policy and deflate the Yen." I like the phrase "bubble in monetary policy". It aptly expresses precisely what has been happening globally. Mike "Mish" […]

The Beard Has Spoken

The Beard Has Spoken Courtesy of JESSE FELDER I’ve written plenty about the markets over the past six months since I started growing the correction beard. But I regularly get questions related to one post or the other that I’ve already answered somewhere else. So I thought I’d try to write a more comprehensive view aggregating much […]

Why We Feel So Poor, In Two Charts

Courtesy of John Rubino. Among the many things that mystify economists these days, the biggest might be the lingering perception, despite six years of ostensible recovery, that the average person is getting poorer rather than richer. Lots of culprits come in for blame, including the growing gap between the 1% and everyone else, negative interest […]

Patriot Act Vote Coming Up: Google joins Apple, Others Requesting Spying Controls

Courtesy of Mish. The Patriot act expires in June, and anyone in their right mind would wish the entire concept to go away entirely. NSA Spying has a 100% perfect track record of failure. Sadly, the answer to the question Would NSA Data Surveillance End With Patriot Act? is a resounding "No". The National Security […]

5 Things To Ponder: Random Musings

Courtesy of Lance Roberts via STA Wealth Management This weekend's reading list is a bit of a hodge-podge of reads on a variety of different topics. However, before we get into it I wanted to address an interesting statement by the Atlanta Federal Reserve President Dennis Lockhart who Thursday: "Atlanta Federal Reserve Bank president Dennis Lockhart […]

In the News, 3-27-15

From Bloomberg  Economy in U.S. Grew 2.2% in Fourth Quarter on Consumer Spending — The U.S. economy expanded at 2.2 percent annualized pace in the fourth quarter, led by the biggest gain in consumer spending in eight years. A Physicist Is Building a Time Machine to Reconnect With His Dead Father  — The hour is late. His […]

The Bottom’s Not In-Why This Market Is Dumber Than A Mule

The Bottom’s Not In——Why This Market Is Dumber Than A Mule Courtesy of David Stockman They were trying to put in a bottom—–again! The sell-off earlier this week amounted to the sixth sizeable “dip” since November 20—-so the market’s ingrained reflex was back at work all afternoon, trying to scoop up the “bargains”. But the roundtrip to the flat-line shown below is not a classic “wall […]

Earnings “Beat the Street” Manipulation Underway as Profit Warnings Mount

Courtesy of Mish. Of S&P 500 companies providing first-quarter outlooks, MarketWatch reports 84% have been negative as Profit Warnings Pile Up. Ahead of the start of earnings reporting season, which unofficially kicks off when Alcoa Inc., reports results on April 8, about 84% of the companies that have provided first-quarter outlooks gave negative outlooks. That’s […]

Misunderstanding “Peak Gold”; Gold About to Run Out?

Courtesy of Mish. Is gold about to “run out”? The correct answer to that question is the likelihood of that happening is precisely 0%. However, that is not the conclusion one would come to from the Zerohedge headline Peak Gold? Goldman Calculates There Is Only 20 Years Of Gold Supply Left. Zerohedge supplied a couple […]

SNB Warns of “Temporary Deflation”, Promises Further “Unconventional Measures” Including Forex Interventions to Achieve “Stability”

Courtesy of Mish. Unconventional Yields Swiss Bonds are negative out to 10 years. They briefly went negative out to 15 years in the wake of the sudden removal of the Swiss National Bank peg to the euro back on January 13 as shown in the following chart. Swiss 15-Year Bond Yield Yield on 20-year Swiss […]

3 Things: No Money, Wall Street’s Big Scam, Bottom 80%

Courtesy of Lance Roberts via STA Wealth Management Much of the commentary from the more liberal leaning media has continued to tout that the rise in asset markets over the last few years are clear evidence of economic prosperity in this country. However, is that really the case? In order for rising asset prices to be […]

For Robots Only: Amazon Sponsored Contest; Soft Fingers Needed

Picture from Amazon Picking Challange Courtesy of Mish. Amazon is sponsoring a robot warehouse automation contest to see to who can pack the most boxes in the least amount of time without dropping any packages or crushing anything delicate such as cookies. In the contest, in which human workers are not eligible to apply, the […]

Damn the Reports, Full Speed Ahead; Recession Overdue; Good Time to Normalize Rates?

Courtesy of Mish. Here's one for the I'll believe it when I see it category: Fed Officials say Rate Hike Plan Intact Despite Weak U.S. Data. In separate events in Frankfurt and Detroit, St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart said U.S. monetary policy might need to be adjusted in […]

Following A 1-Week 17% Client-Muppeting, Goldman Removes Sandisk From Conviction Buy List

Courtesy of ZeroHedge. View original post here. . If you liked it at $83, you'll love it at $66… is apparently the message from Goldman Sachs as last week's transition of Sandisk to the company's "Conviction Buy" list has left clients with a Cramer-esque muppet-hole of around 17% (and rising). One wonders if it is […]

Three Triggers That Will Send Oil Crashing Again

Courtesy of Charles Kennedy of Oil prices bounced back on March 24 on a sliding U.S. Dollar, and then again overnight on Middle East turmoil, but the pain may not be over yet. Oil storage capacity continues to deplete. Storage levels at Cushing, Oklahoma, home to the crucial WTI benchmark, are at record levels. As […]