• Sprott Money
    01/30/2015 - 08:31
    The quick-and-easy way to categorize the retail sector of the U.S. economy would be to use the metaphor of “falling off a cliff”. However, such a characterization would be overly simplistic. A...

Global Economy

Tyler Durden's picture

Mario Draghi: Goodbye ECB, Hello Italian Presidency?





While the entire financial world is hanging on to every Mario Draghi word in hope Europe finally improves the market's (if not the economy's) "fundamentals" to new record highs, and joins the rest of the "developed" world's central banks in injecting trillions of liquidity into the Div/0 P/E stocks "whatever it takes" (because in a world where only multiple expansion is left, the ECB is the last wildcard at least until the US is dragged right back into the global recession and the Fed admits any pipe dreams of a rate hike in 2015 were just that), something far more different may be taking place behind the scenes. According to at least one journalist, the Fiscal Times' Patrick Smith, "Draghi appears set to leave Frankfurt and return to his native Italy the first chance he gets."

 
Tyler Durden's picture

The Aftermath Of The Great 2014 Oil Crash "A Textbook Macroeconomic Shock"





Not a day passes without pundits on either side of the debate, eager to make their case that the acute, nearly 50% plunge in the price of crude, swear up and down their preferred economic ideology of choice that said plunge is [bullish|bearish] for the economy. The reality is that the true impact of the great oil crash of 2014 will not be revealed for at least several months, however for those who can't afford to wait, or simply lack the patience, here is perhaps the most comprehensive view of the pros and cons of what has now been dubbed a "textbook macroeconomic shock" by Deutsche Bank.

 
EconMatters's picture

The Fed Meets This Week Dealing with Alarming Bond Market Bubble





The only reason this bond bubble exists isn`t due to the lower price of oil, it is directly a result of too much cheap liquidity via ridiculously low interest rates by central banks. 

 
Tyler Durden's picture

5 Things To Ponder: Crude Oppositeness





This weekend's reading list is a collection of articles discussing the good, the bad and the ugly of the dive in crude oil prices.

 
Tyler Durden's picture

Name That Chart? Oil Supply Or Demand Edition





While the question of supply vs demand in global oil markets is merely different sides of the same coin, we hope the following "name that chart" image provides some clarifying perspective on what is really dragging oil prices lower...

 
GoldCore's picture

Gold Surges As Greece Crashes - Eurozone Debt Crisis Part II Cometh





The attention being brought to bear upon Greece highlights once again the hollow nature of the “recovery” in Greece, Europe and the western world. The crisis is far from resolved - merely to use the very true cliche - kicked down the road. Well we appear to be coming towards the end of the road in Greece and this could set the stage for the next stage of the Eurozone debt crisis.

 
Tyler Durden's picture

No Time Like The Present





At the latest ECB press conference Draghi said that. “The monetary policy team had this week discussed buying all assets except gold”; qualifying a claim by fellow member Yves Mersch two weeks ago that gold bullion could be included.” If central bankers truly believed in sound monetary policy the headline would have said “We’ll buy all your gold”. That would have propelled both gold and the European equity markets upwards. As it is markets on the continent get cheaper as the good doctor fiddles.

 
Tyler Durden's picture

This Time Is The Same: Like The Housing Bubble, The Fed Is Ignoring The Shale Bubble In Plain Sight





We are now far advanced into the third central bank generated bubble of the last two decades, but our monetary politburo has taken no notice whatsoever of its self-evident leading wave. Namely, the massive malinvestments and debt mania in the shale patch.

 
Tyler Durden's picture

Systemic Failure: "Doctors Prescribing Meds Based On Drug Company Kickbacks" Edition





Corruption and lack of ethics is now endemic to American life and the economy.

 
Phoenix Capital Research's picture

Oil Is a Warning of What's to Come





The entire “recovery” story was total BS and that the Fed has made things worse than before. As always, stocks are the last to “get it.” But we wouldn’t be surprised to see a crash in stocks in the coming months.

 
 
Tyler Durden's picture

Even The BIS Is Shocked At How Broken Markets Have Become





"The highly abnormal is becoming uncomfortably normal... There is something vaguely troubling when the unthinkable becomes routine."

 
Tyler Durden's picture

Frontrunning: December 8





  • Welcome to the recovery:
    • Euro zone warning hits stocks, currency as oil plumbs depths (Reuters)
    • Japan GDP Worse Than Initially Reported (WSJ)
    • China trade data well below expectations (BBC)
    • German industrial production frustrates forecasts (FT)
  • Oil Extends Retreat With European Stocks as Dollar Gains (BBG)
  • California police, protesters clash again after 'chokehold' death (Reuters)
  • Ruble’s Rout Is Tale of Failed Threats, Missteps (BBG), not to be confused with "Yen's Rout Is Tale Of Keynesian Success, Prosperity"
  • Uber banned from operating in Indian capital after driver rape (Reuters)
 
Tyler Durden's picture

150 Billion Reasons Why Low Oil Prices Are Not Good For The Global Economy





While the clear narrative forced upon the investing (and consuming) public is that lower oil prices are great for the economy - which is utter crap (as we have explained here and here) - the fact of the matter both primary and secondary effects are extremely significant... and already occurring. As Reuters reports, global oil and gas exploration projects worth more than $150 billion are likely to be put on hold next year as plunging oil prices render them uneconomic as the cost of production has risen sharply given the rising cost of raw materials and the need for expensive new technology to reach the oil. As one analyst notes, "at $70 a barrel, half of the overall volumes are at risk."

 
Tyler Durden's picture

5 Things To Ponder: Unstoppable Force Paradox





Investors have been lulled into a state of complacency due to a seemingly "unstoppable" rise in the financial markets. Bad news remains good news, and even small drawdowns are quickly reversed sending stocks surging higher. Eventually, the paradox of what happens when a seemingly unstoppable force collides with an immovable will be answered. Historically, such realizations have not been kind to investors. This weekend's reading list takes a look at the reasons why stocks could rise higher, and the potential they won't. The question to be answered is "What will you do when the immovable object is met."

 
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