Zero (or negative) interest rates around the world have practically destroyed any reasonable expectation of savings. Simply put, saving money guarantees that you will lose after adjusting for inflation, at a time when the US government’s finances have never been more precarious. Crazy. Buying ‘risk free’ bonds, dumping money in a mutual fund, and waiting for the government pension to kick in just won’t produce the results that it used to.
The British Response To Obama "Why Should We Take Advice From A President Who Has Surrendered The World To Chaos?"Submitted by Tyler Durden on 04/24/2016 21:05 -0400
With the Urbancorp bankruptcy filing, and the first official canary death in Canada's real estate "coal mine", we anticipate that the near future for Canada's real estate sector will be a far more volatile one. Excluding Vancouver of course: that particular Chinese money laundering hub will continue humming until the locals finally decide they have had enough of having their city sold to criminal Chinese oligarchs.
How is it that so many smart people came to believe things that aren’t true? Krugman, Stiglitz, Friedman, Summers, Bernanke, Yellen – all seem to have a simpleton’s view of how the world works. They believe they can manipulate the future and make it better. Not just for themselves… but also for everyone else. Where did such a silly idea come from?
Those that were hoping for an “economic renaissance” in the United States got some more bad news this week. It turns out that the U.S. economy is in significantly worse shape than the experts were projecting. Retail sales unexpectedly declined in March, total business sales have fallen again, and the inventory to sales ratio has hit the highest level since the last financial crisis. When you add these three classic recession signals to the 19 troubling numbers about the U.S. economy that we wrote about last week, it paints a very disturbing picture.
Some 'entertainers' among the mainstream media have proclaimed the recent dead-cat-bounce in The Baltic Dry Freight Index as representative of some renaissance in China and thus the world's trade.. and thus why one should "buy buy buy" stocks. However, three quick points of note suggest this is nothing but noise as the index flounders around record lows.
It’s not the more fickle and systemic nature of the FIRE economy that makes manufacturing particularly important. It goes well beyond that...
Despite a lackluster holiday sales season and massive big box store closures, despite major 1Q hiring companies like Home Depot reporting flat hiring plans, the BLS model reports 181K payrolls added in 1Q 2016. To put that into context:Best 1Q ever; Better than the entire annual Retail payroll growth for 2014; 2/3s the level of 2015
"The United States must choose! It’s up to you whether the nation called the United States exists on this planet or not.”
After the February jobs report, President Obama said “America’s pretty darn great right now.” He then went on to disparage the “doomsday rhetoric” of the Republicans, which he said was pure “fantasy. I think that there is a good chance that this will enter the Hall of Fame of miss-timed statements, right up there with this jewel from Ben Bernanke in March 2007: “At this juncture, however, the impact on the broader economy and financial markets of the problems in the sub-prime market seems likely to be contained.”
The future of America's energy policies will heavily depend on who our next president is. Each presidential candidate has strong views on energy policy...
In the end, the oil attrition wars may lead us not into a future of North American triumphalism, nor even to a more modest Saudi version of the same, but into a strange new world in which an unlimited capacity to produce oil meets an increasingly crippled capitalist system without the capacity to absorb it. Think of it this way: in the conflagration of the take-no-prisoners war the Saudis let loose, a centuries-old world based on oil may be ending in both a glut and a hollowing out on an increasingly overheated planet. A war of attrition indeed.
Italy is no Greece...it's worse!
Just one day after the DOJ unveiled its had indicted Chesapeake Founder and former CEO Aubrey McClendon on federal charges of conspiring to rig bids for oil and natural gas leases, moments ago the Oklahoma Police announced that he was found dead in a car accident, when while traveling in a 2013 Chevy Tahoe at a high rate of speed he crashed while driving on a two-lane highway and was engulfed in flames.