Fisher

Home Prices Are Soaring In America's 2nd Most Dangerous City

With home prices in San Francisco beyond the reach of all but the elitest of the elites, it appears the "just well off" are migrating to Oakland in search of affordable properties. Despite being the second most dangerous city in America, Bloomberg reports that Oakland’s housing market is still soaring even as growth cools in San Francisco as the East Bay city had California’s highest annual appreciation of home values and the biggest rent growth of the 50 largest U.S. cities.

Venezuela's Latest Response To Food Shortages: Ban Lines Outside Bakeries

The tragedy of Venezuela continues unabated, but that doesn't mean the government of President Nicolás Maduro has stopped trying to fix problems. Maduro has reportedly instituted a policy of fining bakeries that allow lines to stretch out their front doors, according to PanAmPost, claiming the lines aren't a true indicator of a severe shortage of bread, but rather, a political "strategy of generating anxiety."

Mysterious "Computer Glitch" Conveniently Cancels Hotel Rooms For Fed Protesters At Jackson Hole Event

Over the last two years, the Fed Up Campaign has routinely brought a coalition of low-wage workers to Jackson Hole, Wyoming to protest Federal Reserve hike rates amidst the unequal “economic recovery.” The Jackson Hole event is invite only, closed to the public and costs $1,000 per person to attend. It appears that this year, Janet Yellen and company went out of their way to ensure there would be no such protests diverting the attention of the nation's most esteemed economists.

There Is No Asset Bubble?

Does an asset bubble currently exist? Ask anyone and they will tell you “NO.” However, maybe it is exactly that tacit denial which might just be an indication of its existence.

Visions Of Tomorrow From The Permanently High Plateau

Somewhere, someone first said “bull markets don’t die of old age.”  We suppose this throwaway phrase was first uttered in a time and place much like today.  That is, in the midst of a protracted bull market where stock prices had detached from the assets and earnings of companies their shares represent claim to.

Soros – A Rudimentary Theory Of Bubbles

"...financial markets, far from accurately reflecting all the available knowledge, always provide a distorted view of reality. The degree of distortion may vary from time to time. Sometimes it’s quite insignificant, at other times, it is quite pronounced. When there is a significant divergence between market prices and the underlying reality, there is a lack of equilibrium conditions. I have developed a rudimentary theory of bubbles along these lines..."

Pictet: "The Pricing And Valuation Of Bonds No Longer Reflects Fundamentals" - Why This Matters

"Wicksellians believe that in today’s climate, where markets are being swamped with money pumped in by central banks via QE, long-term sovereign bond yields need to rise steeply to revert to their ‘natural’ rate of interest. An unexpected spike in inflation might be the trigger for this upward movement. According to proponents of this scenario, bonds would then be sent crashing. Conversely, the Fisherian camp believes that low government bond yields essentially reflect the anaemic state of the economy. Wicksellians are duly offloading their positions in government bonds, whereas Fisherians are building up theirs."

Former Fed President: "All My Very Rich Friends Are Hoarding Cash"

Fisher’s most telling comment came during the Q&A session when he was asked how his personal portfolio was positioned. Fisher’s response: “In the fetal position.” Moreover, he also said that “all my very rich friends are hoarding cash.” 

Quantitative Easing And The Corruption Of Corporate America

Since the turn of this century, debt-financed share buybacks have severely tested the character of those charged with growing publicly-traded U.S. firms. Should she ignore the potential for further QE-financed share buybacks to exact more untold economic damage, it would be akin to intentionally corrupting Corporate America. The time, though, has come for these wayward companies’ banker and enabler, the Fed, to hold the line, no matter how difficult the next inevitable test of their character may prove to be. It’s time for the Fed to defend the entire Union and end a civil war that pits a chosen few against the economic freedom of the many.

Knave Dave's picture

This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve tried to push back up to that distant high that means new life several times, but each time the market falls into a pit again to where the market is once again lower than it was a year ago. These are the last gasps of a stock market (and economy) that is struggling to rise again, which it simply cannot do now that QE has been turned off and the oxygen tank of zero interest is being slowly turned down.

Fed Up With The Fed

Destroying our ability to discover the real cost of assets, credit and risk has not just crippled the markets--it's crippled the entire economy.

The Endgame

There is a growing fear in financial and monetary circles that there is something deeply wrong with the global economy. Publicly, officials and practitioners alike have become confused by policy failures, and privately, occasionally even downright pessimistic, at a loss to see a statist solution. It is hardly exaggerating to say there is a growing feeling of impending doom. In short, growing evidence of price inflation and stagnant production can be expected to materially increase the risk of a global banking and currency meltdown. The best escape-route is ownership of anything other than purely financial assets and fiat currency deposits. No wonder the price of gold, which is the soundest of moneys, appears to have entered a new bull market.