It’s not that long ago, in 2001, that Jim O’Neill, then still with Goldman Sachs, coined the term BRICs, for the fast emerging markets of Brazil, Russia, India and China. O’Neill saw a global power shift from the west to these four nations happening. Fast forward to today, and we see Russia under multiple attacks, including economic ones, from the west, as India just announced the second rate cut this year and China is attempting controlled demolition of the possibly biggest financial bubble in the history of the world. And Brazil? If anything, it’s falling even faster off its pedestal than the other three nations.
NYC Residents Pay $2-3,000 A Month For “Micro-Apartments” As Luxury Car Sales Outpace Regular Car SalesSubmitted by Tyler Durden on 03/02/2015 15:29 -0400
It’s an oligarch’s world, you’re just living in it. One of the main reasons that hyper-luxury cars are outselling regular cars, is because all of the wealth gains from the oligarch recovery are going to, well, oligarchs ... Global policies implemented since the oligarch created financial melt-down, have been used to cover up its criminality, and further advance the status quo’s consolidation of wealth and power. A continuation of this trend presents the greatest threat to liberty, free markets and an evolution of human consciousness on the planet today.
- Greece requests euro zone loan extension, offers big concessions (Reuters)
- Germany Rejects Loan Request Saying Greece Must Meet Conditions (BBG)
- Did the Fed Just Enter the Currency Wars (BBG)
- French consumer prices fall for first time since 2009 (Reuters)
- Oil falls sharply after U.S. crude inventories rise (Reuters)
- High-Speed Firm Virtu Revives IPO Plans (WSJ)
- Fed Tiptoes Into Rate-Hike Debate (Hilsenrath)
- Rajoy’s Nemesis Is Back: Anti-Graft Editor Targets Vote (BBG)
This country has gone from being one of the most regulated countries in the OECD to one of the least regulated and as a result the economy has boomed. Many of the wealthiest people in the world have been quietly establishing escape hatches here.
- Germany Sees No Need to Scrap Troika in Overseeing Greek Turnaround (WSJ)
- European markets subdued as Chinese data weighs (Reuters)
- U.S. Oil Workers Strike Enters Second Day as Crude Prices Slide (BBG)
- Oil prices rally above $55 as investors pile in (Reuters)
- Obama Wants a New Tax on U.S. Companies' Overseas Profits (BBG)
- If Trading Bonds Is Hard, Think About Pain When Rates Rise (BBG)
- Julius Baer Braces for Swiss Franc Impact (WSJ)
- Coke, Budweiser win as Super Bowl ad battle gets serious (Reuters)
- Fed seen remaining patient with rate guidance amid global turmoil (Reuters)
- National Weather Service apologizes for blizzard forecast miss (CBS)
- Greek PM Tsipras pushes on with radical change, markets tumble (Reuters)
- Obama Drops Plan to Raise Taxes on ‘529’ College Savings Accounts (WSJ)
- Hard Choices on Easy Money Lie Ahead for Fed Chief (Hilsenrath)
- Debt That Once Boosted Its Cities Now Burdens China (WSJ)
- Skymark Said to File for Bankruptcy After Airbus Deal Flops (BBG)
- Heavy Fighting Drains Ukraine Government’s Options and Finances (WSJ)
After panicky New Yorkers stormed their local neighborhood Whole Foods to stock up for the "Blizzard of 2015" which subsequently was revised to merely "The Tempest In A Teapot of 2015", not a creature was stirring this morning except...
- Earnings Pessimism Jumps as Oil Threatens S&P 500 Growth (BBG)
- It’s Amateur Hour in the Booming Chinese Stock Market (BBG)
- France mobilizes 10,000 troops at home after Paris shootings (Reuters)
- European Stocks Gain With S&P 500 Futures While Oil Drops (BBG)
- Nasdaq Looks to Operate Dark Pools for Banks (WSJ)
- This Guy Called Bonds in ’14. You Listening This Time? (BBG)
- Paris attacks boost support for Dutch anti-Islam populist Wilders (Reuters)
- OPEC price war in Asia intensifies as oil falls below $50 (Reuters)
To all those wondering if everything is rigged, we have a very simple answer: Yes.
They say be careful what you wish for. And, as is often the case, "they" are right.
For the first time in the 600-year history of Michelangelo's masterpiece, Pope Francis has decided to rent out the Sistine Chapel for an $8000-per-head Porsche Travel Club concert. What makes this unprecedented action even more 'interesting' is the fact that The Vatican - in all its omnipotent wisdom - also made an announcement that it will be limiting the number of vistors (read 'common folk') allowed inside the chapel and as IBTimes reports, demanding vistors must be silent and cannot take photographs. So much for Pope Francis' "poor Church of the poor."
As the "Big Mac Index" is to global purchase price parity levels of inflation, so when it comes to the state of the "recovery" if not for everyone, then certainly for the 0.1%, there is no better metric than the "Porsche Indicator." Recall: "Porsche Reports Record Sales in 2013; 21 Percent Increase Over 2012" which certainly didn't come on the back of yet another year of declines in real incomes for the middle class (spoiler alert: it came on the back of some $10 trillion in liquidty injections by the world's central banks). Yet one place where the "Porsche" recovery forgot to make landfall, is none other than the biggest casualty of Europe's artificial monetary, political and wealth-transferring union: insolvent Greece.
The economic "recovery" has been based on a simple premise: debt can be substituted for income with no ill effects. As real household incomes have declined, the legitimate foundation of additional spending--more income--has eroded for the bottom 90%. The Fed's substitution of debt for income has only doomed the nation to a deeper, more painful realignment of real income and expenses.
Here's a two-word summary of why the American healthcare system is fundamentally broken and cannot be fixed with policy tweaks: perverse incentives.
Self-sufficiency is the deep rooted belief that you can take care of yourself and those around you.