Another day, another demand by "activist" (which as we have explained patiently before simply means someone who demands companies use moar debt to fund buybacks and/or dividends) Carl Icahn for Apple to buyback it shares. Uncle Carl's bottom line: AAPL stock would be worth a ridiculous $203 (or a $1.2 trillion market cap), if only the board were to "repurchase a lot more" stock "and sooner." Icahn's insight in a nutshell: "the more shares repurchased now, the more each remaining shareholder will benefit from that earnings growth." That's great, but we don't get why waste his precious repeating what he has said so many times before: instead Icahn should just pitch the Fed to monetize AAPL stock in QE 5. Value added Q.E. and well D.
What can popular television programs tell us about the zeitgeist (spirit of the age) of our culture and economy? It’s an interesting question, as all mass media both responds to and shapes our interpretations and explanations of changing times. It’s also an important question, as mass media trends crystallize and express new ways of understanding our era. Those who shape our interpretation of events also shape our responses. This of course is the goal of propaganda: Shape the interpretation, and the response predictably follows.
If the top 1/100th of 1% crowding airports with their private jets isn't afraid of impoverished, disenchanted debt-serfs with pitchforks, they should be.
The one market seemingly everyone "knows" is a bubble is the treasury market. That is the market that just made new low yields on the 30 year bond for the year. GTAT, which is the first true "jump to default" I have ever seen looks exactly like a "bubble" popping, is spurring the rethinking of where the risk is in high yield.
The good thing about Germany’s bad, make that awful, numbers is that they will raise the voices of euroskeptics across the country. If there is to be a change in view or politics from Angela Merkel and her people, it’s not going to be what the rest of Europe wants, a softer stance on Mario Draghi’s ABS junk paper purchases. Quite the opposite: Germans will increase their calls for Deutschland first, and Merkel can no longer ignore them.
A recent weekend experience reminded me of how 99% of them are completely useless
Almost everyone is expecting much higher yields in the near term, but a 30-year drop in yield toward 2.5% should be considered as a possibility for these 8 reasons...
The single most important issue for understanding why the finacnial system is not healthy and why we’re set to have an even bigger crash than in 2008 has to do with one word…
This may be excessively optimistic on my part, but there seems to be a slow change in the way the world thinks about reserve currencies. For a long time it was widely accepted that reserve currency status granted the provider of the currency substantial economic benefits. For much of my career I pretty much accepted the consensus, but as one starts to think more seriously about the components of the balance of payments, it is clear Keynes wad right in his call for a hybrid currency when he recognized that once the reserve currency was no longer constrained by gold convertibility, the world needed an alternative way to prevent destabilizing imbalances from developing. On the heels of Treasury Economist Kenneth Austin and former-Obama chief economist Jared Bernstein discussing the end of the USD as a reserve currency, Michael Pettis summarizes 10 reasons the USD's reserve status has become an 'exorbitant burden'.
Whereas two months ago Obama spent his 53rd birthday in the usual style, by playing a casual round of golf with his Hawaiian childhood buddies at Andrews AFB before escpaing to Camp David, tomorrow that other Cold War 2.0 nation leader, Vladimir Putin, will be celebrating his own birthday, the 62nd, in a way that is about as diametrically opposite as can be. As reported by RIA, the former KGB spy will spend the day in the Siberian taiga, a vast forested area in the northern regions of Russia covering hundreds of thousands of square miles, according to Presidential spokesman Dmitry Peskov told journalists on Monday.
For the US, it’s now shooting fish in a barrel – but just for now. The three-pronged plan the Fed has started to execute is plain for everyone to see... And it will have the rest of the world begging for mercy.
Another humanitarian catastrophe may be just hours away at Kobani - a Syrian Kurdish town on the border with Turkey that is now surrounded by ISIS tanks and is being pounded day after day by ISIS heavy artillery. Already this lethal phalanx, which fuses 21st century American technology and equipment with 12th century religious fanaticism, has rolled through dozens of Kurdish villages and towns in the region around Kobani, sending 180,000 refugees fleeing for their lives across the border. Self-evidently the lightly armed Kurdish militias desperately holding out in Kobani are fighting the right enemy - that is, the Islamic State. So why has Obama’s grand coalition been unable to relieve the siege?
"October: This is one of the particularly dangerous months to invest in stocks. Other dangerous months are July, January, September, April, November, May, March, June, December, August and February.” - Mark Twain
We continue to be told that the US economy is in recovery and stronger than ever. The press trumpets heavily massaged data (GDP growth and the unemployment number) while ignoring data that clearly indicates the US economy is in the toilet (labor participation rate, median income, etc).
The way to preserve great wealth is to buy political protection of that wealth. The way to protect great political leverage is to grease the machinery of governance with cash.