Archive - Mar 2015 - Story

Investors are wary of debt from fourth largest iron ore miner as slumping demand and a supply glut crush prices.

Russia must get aggressive in the economic war. You can win this economic contest in 24 months, if certain special zones in Russia simply are allowed to copy Swiss banking rules and regulations, as wealth will always flow to secure locations where taxes are low. You know what banking privacy and security did for Switzerland, it made a poor country with few natural resources the wealthiest nation in the world.

Recall Lenin’s quote: “The capitalists will sell us the rope with which we will hang them.” Today, of course, the capitalists don’t even sell the rope; they give it away, for nothing. But what’s not to like? Stock investors are getting rich. Bondholders are making money. The government can spend as much as it likes. And the voters are bamboozled by it; they think it helps make the economy work better. This is going to be a hard habit to break. So, here’s the gist of my conclusion: Governments won’t break the habit of getting something for nothing. It will break them. But how?

Even as a Graccident becomes more likely by the day, there are still plenty of signs that EMU members are prepared to present a unified front in the face of uncertainty.

What we have here is another powerful case of the Great Immoderation. That is, the havoc that the Fed’s bubble finance policies have visited upon the main street economy. In short, in the name of improving upon the alleged instability of the private economy - absent the Fed’s expert ministrations - the geniuses in the Eccles building have actually caused the rate of housing starts to gyrate wildly. To wit, by a factor of 5X from top to bottom - so far this century.

What the Fed just said is the following: "it wasn't the snow, it was the economy." End Result: Goodbye "recovery", hello stock surge.

A decade ago the Inland Empire was known for having more real estate agents than any other profession, because "making money in real estate was so easy, anyone could do it." Now it's the rise of the "hedge fund managers."

With Greek bank bonds collapsing, stocks near record lows, Greek default risk at post-crisis record highs, and Greek government bond yields spiking, it has been surprisng that we have not seen the ATM lines and generalized 'panic' of a population in fear of being "Cyprus'd." Well, now as ekathimerini reports, that appears to escalating and rapidly as credit sector officials estimated that the flight of deposits yesterday alone amounted to 350-400 million euros, which was some five times higher than the daily average in previous days.

This time is not different. The excesses being built up in the markets today will eventually revert just as they have been at every other peak in market history. The only question, of which no one has the answer to, is exactly when this occurs. With this in mind, there are 10-basic investment rules that have historically kept investors out of trouble over the long term. These are not unique by any means but rather a list of investment rules that in some shape, or form, has been uttered by every great investor in history.

As the world continues its push towards de-dollarization, Washington responds to Russian military preparedness by conducting drills in Moscow's backyard. 

Where is the Greek government going with its approach? Four scenarios present themselves and hold the possible answer...

Because it's called a credit "cycle" for a reason...

As the Dept. Of Justice reports, a joint effort by the FBI and several New Jersey police departments has culminated in the indictment of US Air Force veteran Tairod Nathan Webster Pugh who “allegedly” pulled the terrorist trifecta by first accessing the internet and then traveling from Egypt to Turkey with an iPod and a picture of a machine gun.

The United States government just went from “Please, baby, don’t leave me,” to frustrated threats and whining. After the UK announced it will join new China-led Asian Infrastructure Investment Bank (AIIB) as a founding member late last week, Germany, France and Italy decided yesterday to follow Britain’s lead and join as well. Welcome to the beginning of the end of the US dollar’s domination. It’s happening.