When the bubble vision stock peddlers get desperate, they talk decoupling. So by the end of yesterday’s bloodbath you would have thought China was on another planet, and that “commodities” were some trinket-like collectibles gathered by people who don’t wear long pants, drink coca cola or jabber on their cell phones. On these fine shores, of course, its all awesome from sea to shinning sea. So don’t be troubled. Buy the dip.
“If the freedom of speech be taken away, then dumb and silent we may be led, like sheep to the slaughter.” - George Washington
With every passing week that money markets rates remain pinned to the zero bound by the Fed, the magnitude of the financial catastrophe hurtling toward main street America intensifies. When the next financial bubble crashes it can only be hoped that this time the people will grab their torches and pitchforks. Stanley Fischer ought to be among the first tarred and feathered for the calamity that he has so arrogantly helped enable.
If you can't work for yourself and afford health insurance, something is seriously messed up.
- Crude prices fall towards $40 on global glut (Reuters)
- China Central Bank Injects Most Funds Since February as Money Rates Increase (BBG)
- Divided Fed Puts Yellen on Hot Seat (Hilsenrath)
- So Long September: Bond Traders Defer Their Date With the Fed (BBG)
- More Foods Boast Non-GMO Labels—Even Those Without GMO Varieties (WSJ)
- UN to let Iran inspect alleged nuke work site (AP)
- IAEA says access to Iran's Parchin military site meets demands (Reuters)
- Time to End Quarterly Reports, Law Firm Says (WSJ)
Saddled with a corporate media that marches in lockstep with the government, elected officials who dance to the tune of their corporate benefactors, and a court system that serves to maintain order rather than mete out justice, Americans often feel as if they have no voice, no authority and no recourse when it comes to holding government officials accountable and combatting rampant corruption and injustice. In the face of such abject injustice, outright corruption and overt inequality, it’s hard to feel empowered to believe the average citizen can make a difference.
The robo machines pushed their snouts through 2100 on the S&P index again yesterday. This was the 13th time since, well, February 13th that this line has been re-penetrated from below. But don’t call it an omen of bad luck; its more like monetary rigor mortis. The bull market is dead, but the robo-machines and talking heads of bubble vision just don’t know it yet.
The era of reaping stupendous profits from low-quality goods produced by low-cost labor in a lax anything-goes regulatory system are ending, not as a result of policy changes but as a result of far deeper structural changes. Anyone thinking China, Inc. and Corporate America will emerge unscathed is living in Fantasyland.
Everyone knows the disparity between CEO pay and worker pay is vast in America. Now, the SEC is set to require companies to publish how much more their executives make than their employees. According to Bloomberg, at least one of these 11 CEOs "may have some explaining to do."
In this financialized hall of mirrors, narcissism replaces identity and the authentic self is rendered incoherent.
Being a citizen in the American corporate state is much like playing against a stacked deck: you’re always going to lose. The game is rigged, and “we the people” keep getting dealt the same losing hand. Even so, most stay in the game, against all odds, trusting that their luck will change. The problem, of course, is that luck will not save us.
The presumed Democratic nominee is set to roll out her plan to confront the $1.2 trillion student loan bubble. As Bloomberg reports, the pitch is expected to be one of the "biggest-ticket policy proposals of her presidential campaign," totaling some $350 billion and will include $200 billion for states who will be encouraged to do more to facilitate loan-free college educations and a $150 billion refi effort for the country’s heavily indebted students.
The chart below shows why a Fed rate hike hike in the coming months virtually assures a recession: in July, wages for non-supervisory workers failed to rise once again, increasing by a paltry 1.8% Y/Y after peaking at 2.0% in late 2014. Worse, the current trend suggest the record lows of 1.3% will be revisited in the coming months.
From our perspective, the fundamental reason for economic stagnation and growing income disparity is straightforward: Our current set of economic policies supports and encourages a low level equilibrium by encouraging debt-financed consumption and discouraging saving and productive investment. We permit an insular group of professors and bankers to fling trillions of dollars about like Frisbees in the simplistic, misguided, and repeatedly destructive attempt to buy prosperity by maximally distorting the financial markets.
This erosion of opportunities to complete life's stages and core dramas is rarely recognized, much less addressed. The End of Secure Work and the diminishing returns of financialization are disrupting these core human challenges and frustrating those who are unable to proceed to the next stage of life...