"Those who got Donald Trump totally wrong in the nomination process, still have not figured out why. Thus, it’s no surprise they are still wrong now. I propose, that instead of being the demise of the Republican party, Donald Trump will be its savior."
Putting the "hype" in hyperloop - 3 seconds of awesome...ish.
Heard the one about the guy that threw his boomerang only to see it come swinging and swishing its way through the air and knocking him out?
Had the federal government held a constant measuring stick rather than "tinkering, engineering, distorting" key government calculations such as the size of the economy (GDP), the rate of inflation, level of unemployment, or size of federal deficits and federal debt...the reality we face would be plain and honest choices needed. Instead, the responsibility of those working for "the people" has been breached via falsifying and distorting each of these (over decades). This consistently improves the output and does not allow a true means to quantify and qualify the nations health. Simply put, the government has continually tinkered, tampered, and distorted the accounting so as to mislead or create a falsely positive appearance.
Facebook (FB) stock is going to crash, it's a disaster waiting to happen. FB is supported by an artificial house of cards, based on hopes and dreams.
The share rebound triggered by the hasty creation last month of the fund intended to inject capital into weaker lenders and buy their bad loans proved short-lived. Banco Popolare is dragging the rest of the Italian banking system drastically lower today after a "susprise" Q1 loss driven by soaring bad loan writedowns. Banco Popolare is down 14% on the day (25% in a week) to a record low, as Reuters reports the bank was forced to admit the reality of its bad loans by the European Central Bank as a condition for approving a planned merger with Banca Popolare di Milano that will create Italy's third-biggest banking group.
Many overseas investors may think last night’s chaos is driven by the weak April import/export data announced during the weekend. We can tell you that it’s not. The local Chinese traders take the “anonymous authorities” article very seriously and his (Mt Lui He) opinion will have much deeper impact for China in the coming quarters.
Japanese banks may soon pay borrowers to accept loans if they can raise funds at even cheaper rates. Negative interest-rate lending is increasingly becoming a reality since the Bank of Japan started levying charges on idle cash. Lenders can now borrow for three months in the Tokyo interbank market at a record-low 6 basis-point annualized rate, versus 17 basis points since the BOJ move in January. They may eventually be able to be paid to borrow and then profit by paying less to lend, according to Credit Suisse Group AG, JPMorgan Chase & Co. and SMBC Nikko Securities Inc. This is also known as shoving money down people's throats... and then paying them for it.
Central bankers have been waging a war against savers. What those central bankers want you to do is either (1) spend money to increase demand, or (2) buy stocks to increase capital. Well, it sure looks like American consumers are not doing the former...
One week ago, when SolarCity was trading around $30, prompted by Jim Chanos' bearish take on the company we wrote a piece asking if "SolarCity is the next SunEdison" in which we presented the Full Bear case as noted by Axiom's Gordon Johnson, who incidentally had the only "sell" rating on the company ahead of last night's earnings debacle (at which point there were also 12 Buys and 9 Holds), which has resulted in the company plunging 25% overnight, and is about 40% lower than when we first prompted readers to pay attention to Elon Musk's solar venture. Today, Gordon gives ZH readers an exclusive look at five points why the pain for SCTY has only just begun, and why - as we speculted - SolarCity may indeed be the next unfortunate bankruptcy in the sector.
With the collapse of China's smoke-and-mirrors commodity bubble comes the post-mortem as the horde of Chinese gamblers flood from one government-appointed market to another as the American dream of get-rich-quick schemes appears to have been adopted by the burgeoning middle classes now disillusioned with real work. As Bloomberg reports so shockingly, from the Dutch tulip craze of 1637 to America’s dot-com bubble at the turn of the century, history is littered with speculative frenzies that ended badly for investors; but rarely has a mania escalated so rapidly, and spurred such fevered trading, as the great China commodities boom of 2016..."you have far too much credit, money sloshing about, money looking for higher returns."
Welcome to a world scrubbed of offense...
The Fed cannot create growth... so it is opting to increase inflation. Why? The bond bubble.
The promises made when there were 7 workers for every retiree cannot be kept when there are only 2 workers for every retiree. We need a complete system overhaul, and the sooner we face up to this sobering reality, the sooner we can start working on real solutions.
An Update From the Front Lines ...