Those who lived through the last two speculative blow-off tops know the impossibility of predicting the final top. How can we tell if stocks are in the final blow-off stage of a bubble? There are four basic give-aways...
We are paying a high price for too many elites and their ‘frivolous cravings’. Nowadays many countries’ social and political structure relies on debt-driven consumption and increasing levels of entitlements. Blame the policy-makers as the “permanent lie [has become] the only safe form of existence.”
The collapse of Q1 GDP has been placed squarely on the shoulders of weather (too hot, too cold, and definitely not just right) and the dockworkers strike which shut 29 seaports. As Q1 GDP plunged, so Q2 was lifted hockey-stick-like to keep the growth dream alive but so far in Q2, data has not shown the bounce expected... so we are going to need a bigger excuse. We have found one! As NBC Los Angeles reports, truck drivers who haul goods from the nation's busiest port complex in Los Angeles and Long Beach went on strike Monday in the latest action as part of a long-running labor dispute (it wasn't immediately clear how many of the 16,000 truckers would walk off the job).
As we recently noted, the US government is in the process of launching an all-out war on truth. Those who express views contrary to the party line out of Washington will be labeled a threat. But Washington's propaganda isn't working at all well in the rest of the world, be it Russia or China or Latin America. In all of these places, Washington's message control has more or less failed. This is why the people in Washington are in a bit of a panic, and labeling internal dissidents as a “threat” is just them flailing in search of an answer. They can't stop lying, and they can't even pretend to rule the world if everyone knows that they are lying, so their only option is to try to squelch every voice except their own. They may succeed at this within the US (some would say they already have) but as far as the rest of the world - good luck!
Some borrowers are allowed to remain in a perpetual state of default even as they avoid actual payment default and in the end, their loans are legally discharged at the expense of the US taxpayer. Meanwhile, the payments they aren't making appear to be classified by the Department of Education as both "in repayment" and "current."
One of the great ironies of American politics is that most politicians who talk about helping the middle class support policies that, by expanding the welfare-warfare state, are harmful to middle-class Americans. Eliminating the welfare-warfare state would benefit middle-class Americans by freeing them from exorbitant federal taxes, including the Federal Reserve’s inflation tax.
"How the agency obtains GDP figures is 'anybody’s guess,'" one economics professor tells WSJ, referring to the ambiguity surrounding China's official GDP data. Amid a worsening economic situation which includes industrial production data that doesn't match up to the headline GDP figures coming out of Beijing, analysts weigh in with their own projections for how the world's economic growth engine is really performing.
The worldwide commodity glut is not a surprise to Austrian school economists - It is a wonderful example of the adverse consequences of monetary repression to drive the interest rate below the natural rate.
This is how fast America changes its mind...
This new nothingness is creating a youth, a political system and an economic outlook which is based more in peoples’ heads and minds than it is in reality.
At a certain point, even central bankers will realise they can go no further.
Moments ago AAPL reported Q2 earnings for the quarter ended March 31, 2015 which saw AAPL beat soundly on the top and bottom line as as result of a jump in iPhone sales, even as iPad and Mac sales came in below the expectation. EPS was $2.33 vs consensus $2.16, while revenues came in at $58.0 billion, $2 billion higher than the $56.0 billion expected. But while the operations were impressive if China and iPhone centric, what everyone is focusing on is the AAPL news that it once again expanded its buyback program en route to hitting the Goldman forecast of a record $900 billion in 2015 for the entire S&P500, by announcing it would boost its buyback authorization by more than 50%, from $90 billion to $140 billion.