Archive - May 2015

“It is unacceptable, illegal and corrupt for anyone at the Fed to deliver inside information that could provide a financial advantage to the privileged few and lead to the manipulation of financial markets”: Hensarling

How is it that the company's GAAP EPS declined by a whopping 17%, from $0.66 to $0.55, and yet its non-GAAP EPS dropped by a tiny 1% from 0.88% to 0.87%? This is how...

Janet Yellen at the Federal Reserve believes that the partying on Wall Street and in the financial institutions may “lead to trouble”.

Investors are the most 'neutral' and confused in 26 years with bullish sentiment and bearish sentiment hovering at multi-decade lows...

Gun to our head, this is what happens next: several false flag YouTube clips once again emerge just around the time Obama announces it is time to send a tactical, contained group of troops in Syria to retake the cultural "heritage that" is Palmyra, at which point the war against ISIS morphs into what it has been from day one: the western attempt to crush and topple the Assad government, and to hand over control of Syria to Turkey and Iraq, just so the US, Saudi Arabia and Qatar can control what happens behind the scenes, by which we mean finally allow that long overdue gas pipeline to traverse the nation. We expect this scenario to start unfolding within the month.

Presented with no comment whatsoever...

This psychology of mass delusion now dominates housing, stocks and bonds: not only is this not a bubble, the expansion will continue forever. History, however, suggests otherwise: all bubbles burst, period.

You’re talking about a joint economy of $16 trillion in which 30%-56% of the population is employed b the Government and the Government is shredding democracy and the legal system. The cultural reactions will have financial repercussions for years to come.

This is the first generation of young Americans that our government systemically disfavors and the first generation whose prospects are lower than those of their parents. Their parents and grandparents have put them in the hole.

Robbed? Cheated? Scammed? Flimflammed? Rolled? Take your pick.

"The weapons appear to have been discarded as Officers arrived and some hastily hidden. The have been found in sacks of chips, stuffed between bags of flour, stuffed into the bench seating, hidden in shelves, thrown into trash cans, placed in the kitchen stoves, discarded on floors and even so far as to attempt to flush a handgun down a commode."

It appears the frauds, falsehoods, and f##king fallacies are all being exposed at the same time. While we have noted three companies that have collapsed in the last week - destroying their billionaire owners' wealth in the process - it appears the Chinese capital destruction virus has spread to Germany. Joyou AG - a Chinese affiliate of German bathroom manufacturer Grohe - has collapsed from record highs a week ago to 0, pending bankruptcy, after admitting balance sheet manipulation.

The 2nd tallest building in the world, Shanghai Tower, will open to the public mid 2015 during a time when China's own economy is going through the darkest period in recent years.     

The rising risk to the housing recovery story lies in the Fed's ability to continue to keep interest rates suppressed. It is important to remember that individuals "buy payments" rather than houses. With each tick higher in mortgage rates so goes the monthly mortgage payment. With wages remaining suppressed, 1 out of 3 Americans no longer counted as part of the work force or drawing on a Federal subsidy, the pool of potential buyers remains tightly constrained. While there are many hopes pinned on the housing recovery as a "driver" of economic growth in 2015 and beyond - the lack of recovery in the home ownership data suggests otherwise.