"This market has a lot to be concerned about," warns Carl Icahn in an interview with FOX Business Network's Trish Regan, slamming Fed policy, "by keeping interest rates this low you are creating bubbles that you don’t even know about." While mainstream media pundits are instantly feverish over every bullish AAPL word the aging activist has to say (or tweet), it seems that when it comes to facing facts and reality of the broad market, few, if any, are willing to share his thoughts as he concludes, "it’s not just a question of it could be the beginning... It’s not will it happen. It’s when it will happen."
At some point in the middle of the last century, economics of money shifted to economics of psychology. Abenomics is the perfect example of this faith-based policy. The Japanese economy, to any clear mind, took a huge turn for the worst under Abenomics yet its practitioners are still, somehow, given the final word on judging its performance, meaning that the mainstream still, somehow, subscribes to the religion.
We have long argued that the most likely endgame for Greece is that PM Tsipras caves to the troika, compromises on the government’s ‘red lines’ and risks a government reshuffle on the way to a third program, thus averting a euro exit and keeping Greece from descending into a drachma death spiral, even as the “solution” effectively strips the Greek people of their right to choose how they want to be governed — a tragically absurd outcome in what is the birthplace of democracy. It now appears that scenario is set to unfold.
Back in 1976, Congress decided that they needed more information on US companies’ international trade activities. So they passed a law requiring the Department of Commerce to survey the biggest businesses in America to find out more about what they were doing abroad. These days, the survey is conducted every five years. And like most surveys it’s a bunch of useless bureaucratic drivel that only wastes the time of the poor souls who have to fill it out. Now it’s something that can get you thrown in jail.
"Cook also told these millennials, 'Don't shrink from risk.' That's a musty old standard for commencement addresses: Find your passion, follow your dreams, take some risks, blah-blah-blah-blah-blah-blah. It cannot be lost among the most discerning grads that these commencement tips are coming from a generation that left them with crushing student debt, a wobbly job market, unaffordable real estate and cities increasingly ablaze."
All too often investors are bombarded with bullshit presented as facts by talking heads in constant denial and forever protecting their commissions - as opposed to protecting their client's interests. One notable case in point is the "it's different this time" meme surrounding IPOs and their apparent 'realness' in the current new normal vs the 199/2000 dotcom boom/bust. As the following chart shows: yes, this time is different - there has never, ever, been a greater perecentage of unprofitable companies IPOing...
Promptly upon release of today’s GDP update, Steve Liesman and his Wall Street economist pals spent 10 minutes bloviating about why the negative print should be completely ignored. The MSM cheerleaders like Liesman and his pals cannot see the handwriting on the wall because central bank bubble finance has essentially abolished the old rules of macro-economics. Someone should tell them that an economic deja vu is about to happen... all over again!
Capitalism takes you into the future... with innovation, failure, and surprise. You invest, you lose your money, you try something different, and you stumble forward. Capitalism is constantly burying its mistakes and discovering tomorrow. Cronyism, on the other hand, keeps you in the past. It is today and yesterday trying to stop tomorrow from happening.
It is time for another sacrificial gold market manipulation crackdown (the same gold market, mind you, which CFTC commissioner and HFT lobby sellout extraordinaire Bart Chilton said was completely unrigged). Only it's not Barcalys, JPM, Virtu, Citadel, the NY Fed, the Bank of England, or even the PBOC - i.e., the real market manipulators - who is the receiving end of the CME's special breed of "justice." It is another "trade from his parents' home" Indian.
The banking system must be doing great... just days after JPMorgan announced mass layoffs, SkyNews reports that HSBC is preparing to announce a revised headcount target, which insiders said that it was likely to be between 10,000 and 20,000 job cuts.
The banking problems we see all over the world are a direct expression of the limits to growth, specifically the limits to debt creation. We can’t continue to borrow from the future to pay for our comforts and conveniences today because we have no real conviction that these debts can ever be repaid. We certainly wish we could, and the central bankers running the money system would like to pretend that we could by making negligible the cost of borrowing money and engaging in pervasive accounting fraud. But that has only served to cripple the operation of markets and pervert the meaning of interest rates — and, really, as a final result, to destroy any sense of consequence among the people running things everywhere.