Archive - Jun 11, 2014 - Blog entry

Many of you probably heard the news yesterday that teachers unions received a nasty (and well-deserved) blow from the Los Angeles Superior Court. So when I was listening to the radio yesterday, and the reporter was saying that California teachers are granted "tenure at eighteen...." I naively assumed the next word was going to be "years." Nope. It was "months." After just eighteen months, these people get what is effectively guaranteed lifetime employment. Even, as in the court's case, the teacher just sleeps at their desk or browses the web.

In order to back the dollars now in circulation and on deposit -- about $2.7 trillion -- with the approximately 261 million ounces of gold believed to be held by the U.S. government, gold prices would have to rise as high as $10,000 an ounce. Who said gold is not money?

The reality is that what’s happening in the US today is not a cyclical recession, but a one in 100 year, secular economic shift.

Oil prices are set to hike in the next few days with the growing fear that fighting in the northern city of Mosul will spread southwards in Iraq.

New All time highs almost every single day, yet market volumes have literally collapsed. On any given day, you would see an average of 2M eminis (S&P Futures, spoos) trade, and now we are seeing barely 1M trade, sometimes even lower. This has left everyone, including big banks, who are now being forced to lay off traders amid the slowdown, asking the same question: WTF is going on?