Gold futures saw a massive $1.5 billion liquidation in one minute yesterday which had all the hallmarks of a "non profit" liquidation - a large seller trying to manipulate gold futures lower rather than maximise profits.
A firm cannot just willy-nilly raise their prices without a competing firm leaping in to give consumers what they want at a lower price. As it turns out, Mylan has a great friend who keeps would-be competitors out of the market, or at least makes it so difficult for them that they eventually go out of business. That friend is the FDA.
The Obamacare exchange in Tennessee is "very near collapse" as insurers are imposing nearly 60% YoY premium hikes and pulling back on coverage areas which could leave certain counties with no health insurance options at all...
According to Jeffrey Miller, "all the conditions for a market crash are in place" but when it happens is anyone's guess and ultimately depends on "how dumb things will get before" central banks finally stop.
What the world is witnessing, without actually paying much attention, is the death of our debt-based economy - that is, borrowing the means to thrive in the now from a future that can’t really furnish it anymore.
This slow exodus of insurers from the health law's marketplaces represents a serious threat to the continued stability and existence of its exchanges. Obamacare is perched on the edge of a death spiral. The fundamental problem is simple: Insurers are losing money... was that the plan all along for the Affordable Care Act?
In the US the year-on-year trend for productivity has turned negative . Most central bankers dismiss this fact as a short-term aberration. But the Japanese economy provides an example of what interest rates at or near zero can do to a large, developed economy. The answer is not much: not much real growth; not much inflation - and, together, not enough nominal GDP growth to repay historic debt should yields on sovereign debt ever return to normal.
So the next round of experiments will probably feature bigger deficits and more aggressive public hand-outs. Which – since these have already been tried and failed – doesn’t give much hope for the future.