Reality

Werner Issues "Disturbing" Warning About State Of Trucking And Logistics Industry

Following ongoing warnings of the dismal reality surrounding heavy, Class 8 trucking, reality finally hit overnight when trucking and logistics company Werner Enterprises warned that a sluggish freight market and increases to driver pay would hurt its second-quarter earnings, leading to a plunge in its stock price. Werner said it now expects to report a profit of 21 cents to 25 cents a share, which includes a pretax gain of $3.4 million from the sale of real estate; this was nealy 50% below the consensus forecast of 40 cents a share.

"Whatever It Takes" Wasn't Enough

Bond manager Jeffrey Gundlach made headlines this week with the comments “central banks are losing control.” I would suggest that central bankers actually lost control back in 2012. Mario Draghi’s “whatever it takes” pledge actually amounted to concerted central bank intervention to shield global markets and economies from the intensifying forces of the downside of a historic Credit Cycle. The global Credit boom persevered for a few more years, right along with historic market distortions and economic maladjustment. Downside risks have grown significantly.

The New Iron Curtain - A Monument To Washington's Imperial Folly

A foreign army consisting of 31,000 soldiers from an anti-American alliance are conducting military “exercises” a few miles from San Diego. Hundreds of tanks converge on the Rio Grande, while jets from 24 countries converge in attack formation, darting through Mexican skies. It isn’t hard to imagine Washington’s response. Yet that’s precisely what has been happening on Russia’s border with the NATO alliance, as the cold war returns.

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..."

How Many Law Schools Need To Close? (Spoiler Alert: Plenty!)

America is in the opening stages of a massive surplus of over-credentialed workers. The default setting for 50 years has been: if you want a secure upper-middle class salary, get a law degree, MBA, PhD or other graduate-level professional degree. The massive surplus is now apparent in J.D.s (law degrees) and PhDs. The writing is already on the wall...The only solution for the surplus of workers with law degrees is a massive, permanent reduction in the issuance of new law graduates.

Is The End In Sight For Alaska's Oil Based Economy?

Alaska has long been one of the few U.S. states without an income tax. Thanks to its incredible bounty of natural resources, the state had more than enough cash coming in through oil company taxes and especially Prudhoe Bay production. All of that is starting to change. After a 40 year oil boom that transformed Alaska from a frozen tundra into one of the richest states in the country, the oil price crash is bringing reality back to bear.

The Economy Is Not What It Seems

The last two-quarters of economic growth have been less than exciting, to say the least. However, these rather dismal quarters of growth come at a time when oil prices and gasoline prices have plummeted AND amidst one of the warmest winters in 65-plus years. Why is that important? Because falling oil and gas prices and warm weather are effective “tax credits” to consumers as they spend less on gasoline, heating oil and electricity. Combined, these “savings” account for more than $200 billion in additional spending power for the consumer. So, personal consumption expenditures should be rising, right?

Huge Scandal Erupts Inside NATO: Alliance Member Germany Slams NATO "Warmongering" Against Russia

Suddenly everything is imploding for NATO when none other than the Foreign Minister of NATO member Germany, Frank-Walter Steinmeier, criticized NATO for having a bellicose policy towards Russia, describing it as "warmongering", the German daily Bild reported. And just like that, the entire fictional narrative of "innocent" NATO merely reacting to evil Russian provocations has gone up in flames.

Forget Brexit, It's The Banks Stupid!

Political instability for the EU is a significant and visible threat, but is not the immediate problem, which is financial. As a result of savings and spending imbalances, none of the core Eurozone states can stand on their own.

How The Welfare State Dies

Brexit has diverted attention from another little drama playing out in Europe. As of the time of writing, if you Google Hollande threatens to ban protests or variations thereof, you will find Russian, South African and even Iranian press reports on the topic. Otherwise, it’s basically crickets (sole exception: Politico).  Gee, we wonder why? Those who elected Mr. Hollande did so because they expected him to deliver the loot. His problem is that he’s running out of stuff to loot.