Archive - Jul 20, 2013

williambanzai7's picture

THe AMeRiKaN DReaM...





The Hope event horizon...

 

Tyler Durden's picture

Now That Detroit’s Gone Bust, Is Your City Next?





Detroit’s bankruptcy filing is one depressing read. Poverty, crime, blight – you name the malady and there’s plenty of data to back it up. And unfortunately, Detroit’s not alone. You may be wondering which city hits the wall next...

 

Tyler Durden's picture

China Warns Of "Overly Optimistic Forecasts"; Tells G-20 To Mind Your Own Economies





In a wide-ranging interview with Xinhua, the Chinese finance minister Lou Jiwei started from the normal fantasy-land of central-planners by noting that the topic of a Chinese hard-landing "was not discussed at the G-20," because "no participant believes in the existence of that risk." Commenting on calls for the Chinese to launch new stimulus (to save the world's economy), Lou admonished the other nations, adding "I suggest they fulfill their own due work rather than counting mainly on others." He remained adamant that China is still growing and creating jobs but fears what everyone else fears: "The global market will sustain negative impact should the Fed fail to interact properly with other components of the market." In other words, "get to work, Mr. Bernanke, and don't remove the punchbowl," because as Lou notes, "some countries are overly optimistic on their outlooks."

 

Tyler Durden's picture

Was Ron Paul Right?





Ron Paul wrote this scathing assessment and prediction about the newly created DHS eleven years ago. He was outraged by the $3 billion price tag. The DHS 2014 budget is $60 billion. Were his warnings about the American people being spied on by our government accurate? Are you safer today than you were in 2002? Do you have more or less liberty and freedom than you had in 2002? Was it worth it? 

 

Tyler Durden's picture

The Crash Of 1929





Based on eight years of continued prosperity, presidents and economists alike confidently predicted that America would soon enter a time when there would be no more poverty, no more depressions - a "New Era" when everyone could be rich. Then 1929 began - a time when the stock market epitomized the false promise of permanent prosperity... it's only when we learn the lessons of the past can we avoid the mistakes of the future - or this time it's really different.

 

Tyler Durden's picture

Guest Post: Is This A 2007 Redux?





Are we likely forming a market top? It is very possible.  We saw the same type of market action towards the last two market peaks.  However, it will only be known for sure in hindsight.  The many similarities between the last cyclical bull market cycle and what we are currently experiencing should be at least raising some warning flags for investors.  The levels of speculation, leverage, price extensions, duration of the rally, earnings trends and valuations are all at levels that have historically led to not so pleasant outcomes. The reality, however, is that the current "liquidity driven exuberance" could keep the markets "irrational" longer than logic, technicals or fundamentals would dictate.

 

 

Tyler Durden's picture

When Central Bankers Fail - A Tale Of Two Broken Bond Markets





A month ago we showed the chart that we suspect scared Bernanke straight and required his verbal intervention to de-froth the US Treasury market. The huge surge in 'fails-to-deliver' in the US Treasury market meant something was very wrong as this critical indicator of both collateral shortages and technical carry trade unwinds was flashing a very angry red (and as Barclays notes "was ready to feed upon itself"). Bernanke's jawboning provided just the right amount of concern at the Taper that the market began to clear a little and 'fails' have been reduced (though we note are rising once again as un-Taper exuberance returns). The problem is - exactly the same critical dilemma is now hitting the JGB market and as JPMorgan warns, the sharp rise in fails in June suggests that there is perhaps more stress in the JGB market than that conveyed by the recent stability of JGB yields.

 

testosteronepit's picture

“Who Could Trust Such A Company?” – The Big Fat Lies About Radiation Exposure Of Workers At Fukushima





They still obfuscate and minimize the consequences of the triple melt-down at Fukushima Daiichi.

 

Tyler Durden's picture

Confessions Of A Keynesian Debt Serf





"Things are different now. I’ve turned my savings into spending, rung up thousands of dollars’ worth of purchases on my credit cards and in the process paid a lot more in taxes. And I’ll probably keep spending like this until I nearly run out of money. In other words, I’ve bought a house. Since the recession materialized in 2008, policymakers in Washington have been urging Americans to buy homes, because no single purchase does more to generate economic activity. The housing market and everything associated with it accounts for around one-sixth of the entire economy, which is why a housing bust can drag the whole nation into a recession (basically what happened starting in 2007) while a housing boom can make nearly everyone better off, including people who don’t even own homes."

 

Tyler Durden's picture

Guest Post: Enough Oz-Economics… Let’s Get Back To Kansas-Reality





Detroit just made the news as it filed for bankruptcy.  A model city in the century-old upsurge of American industrial enterprise, it has now become the prophet-messenger of its decline – over 70,000 decaying structures and pension-promises which won’t be kept in this city being an albatross for what’s to be new America.  At the end of the day, a productive society must create an efficient combination of building products and needed services… its GDP hardly to be represented by a ridiculous measurement of over-consumption and unneeded services. There’s little, however, that can be done to keep the curtain down in Oz.  It’s slowly going up… and soon the world will see us with our pants down.  And as the curtain goes up there won’t be a place for us to hide, and we’ll have no other choice than to return to the reality which is Kansas.

 

Pivotfarm's picture

Sovereign-Debt Risk – Best and Worst





Sovereign debt is the bonds that are issued by national governments in foreign currencies with the intent to finance a country’s growth. The risk involved is determined by whether that country is a developed or a developing country, whether that country has a stable government or not and the sovereign-credit ratings that are attributed by agencies to that country’s economy.

 

Asia Confidential's picture

The Markets' Worst Kept Secret





The secret is the world is more indebted now than it was at the height of the financial bubble in 2007. And big changes are needed to avoid further trouble.

 

Tyler Durden's picture

Ponzi-Scheme Expert To Oversee Detroit Bankruptcy





It's good to see that as more of the US spirals into chaos, someone still has a sarcastic sense of humor. For those who missed it, in the Kevyn Odd statement listing the primary reason for the bankruptcy of Detroit, this was the punchline: "For years, the City has spent more than it takes in and has borrowed and deferred paying certain obligations to make ends meet. The City is insolvent." In other words, a pure pyramid scheme whose final can kicking day has finally come. Which perhaps explains why the just appointed Judge to preside over the largest municipal bankruptcy in US history is none other than Judge Steven Rhodes, 64, who just happens to be the co-author of "The Ponzi Book: A Legal Resource for Unraveling Ponzi Schemes." In other words, if there is anyone qualified to oversee the biggest Ponzi scheme collapse to date in US public sector history, it would be Judge Rhodes. We can only hope, however, that he leaves some time in his busy schedule over the next several years, for that other, biggest of all Ponzi schemes, the United States of America.

 

EconMatters's picture

President Obama Could Give Middle Class a Bailout with SPR Release





We bail everybody else out in this country, why not middle-class Americans via an SPR Release to counter high prices at the pump?

 
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