Archive - May 3, 2015

In every inflating bubble, there’s usually two camps. The first group points out various metrics suggesting something is inherently unsustainable, while the second reiterates that this time, it is different. After all, if everyone always agreed on these things, then no one would do the buying to perpetuate the bubble’s expansion. The Canadian housing bubble has been no exception to this, and the war of words is starting to heat up.

Alibaba — where gender diversity is a point of pride — has an interesting job opportunity available for anyone who thinks they might be a good "programmer cheerleader"...

"With US GDP growth ‘officially’ back where it belongs, in the Arctic zone close to freezing on the surface but much worse in real life, for reasons both Albert Edwards and Ambrose Evans-Pritchard (not exactly a pair of Siamese twins) remarked this week; that is, excluding the 'biggest inventory build in history, the economy contracted sharply', it’s time for everyone to at long last change the angle from which they view the world, if not the color of their glasses."

A look at the drivers for the week ahead.  

Unfortuantely, until three things change dramatically, there will never be a capex boom, corporate revenues will keep declining, and companies will continue artificially inflating their stock prices by diverting every last profitable dollar into instant gratification for "activist" shareholders (and option-compensated management) instead of investing into long-term growth.

Something serious is brewing under the hood...