• Gold Money
    05/26/2016 - 14:27
    Here’s a question that might have you pondering: Is gold a commodity? More importantly, are we doing a disservice to the gold industry by calling gold a commodity? These may sound like silly...

Credit Crisis

Tyler Durden's picture

How This Default Cycle Is Different: Record Low Recovery Rates





Once the current short squeeze is over, expect everyone to start paying far more attention to recovery rates and the true value of "fundamentals." Here's why.

 
Tyler Durden's picture

"Peak Stupidity" - Where We Go From Here





"Why would market participants be baking in so much growth when the actual data simply doesn’t support it?"

 
Tyler Durden's picture

The Case For Outlawing Cash





In 2008, almost every major U.S. bank was on the edge of bankruptcy. But if the feds succeed in cutting us off from cash, that will never happen again. Because the banks will just whack us all – with the full approval of the Fed, the cronies in Congress, and zombies everywhere – to make themselves whole again. If this new campaign succeeds, it will be almost impossible to protect yourself.

 
Tyler Durden's picture

Frontrunning: February 15





  • China’s Yuan Makes Largest Gain Since 2005 on PBOC Cue (WSJ)
  • Japan's Nikkei soars over 7%, for its biggest gain since 2008 (BBG)
  • Global shares rise as firmer Chinese yuan eases deflation fears (Reuters)
  • Banks' Surge Takes Europe's Stock Rally Into 2nd Day; HSBC Rises (BBG)
  • Oil extends rally on prospects OPEC could act to counter low prices (Reuters)
  • Europe's Higher-Yielding Bonds Benefit as Global Turmoil Eases (BBG)
 
Tyler Durden's picture

Through The Looking Glass On Rates





Negative interest rates act effectively as a hidden tax funneled directly to banks. They are inherently unhealthy. Currently, they could indicate also a measure of unease among two of the four most powerful central banks. If so, that could well escalate.

 
Tyler Durden's picture

"Negative Rates Are Dangerous" OECD Chair Warns "Our Entire System Is Unstable"





"There is excessive debt everywhere and negative interest rates are dangerous... My number one fear? That’s the same as asking me where it will start. When you view the economy as a complex, adaptive system, like many other systems, one of the clear findings from the literature is that the trigger doesn’t matter; it’s the system that’s unstable. And I think our system is unstable... Central Bank models are just wrong"

 
Tyler Durden's picture

The Return Of Crisis





Let me be blunt: this next crash will be far worse and more dramatic than any that has come before. Literally, the world has never seen anything like the situation we collectively find ourselves in today. The so-called Great Depression happened for purely monetary reasons. Before, during and after the Great Depression, abundant resources, spare capacity and willing workers existed in sufficient quantities to get things moving along smartly again once the financial system had been reset. This time there’s something different in the story line...

 
Tyler Durden's picture

JPMorgan Unveils The "Bogey" For NIRP In The US





"it seems reasonable to judge that the Fed’s current political situation is more parlous than is the case among its overseas counterparts. For all of the above reasons, we believe the hurdle for NIRP in the US is quite high, and we would need to see recession-like conditions before the Fed seriously considered this option."

 
Tyler Durden's picture

Mass Layoffs To Return With A Vengeance





Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival. Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. The nightmare of 2008 soon became a golden era of 'recovery'. Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses.

 
Gold Money's picture

This is Not 2008 …at least Not for Gold





If equities sell off another 20% like 2008, gold would not follow them down in a  "dollar short squeeze or flight to quality". There is now a very different real interest rate and energy price setup and gold doesn't have the same macro correlations as before.

 
Tyler Durden's picture

Blame Birinyi!





Just before the US equity market topped out last August, none other than infamous stock-chart-extrapolator Laszlo Birinyi ventured on to CNBC and proclaimed that the S&P 500 will hit 3,200 by the end of 2017. Since the soprano uttered that extreme, US equity markets have collapsed not just once, but twice and now trade at levels first seen over two years ago...

 
dazzak's picture

The China Syndrome





Call it whatever you like,blame whoever you want...but Houston,we have a problem....

 
Tyler Durden's picture

Gold In 2016: "Economic Power Is Shifting"





An unseen bubble at the heart of the financial system is deflating with unknown consequences. When bubbles deflate, and here we are talking about one in the hundreds of trillions, bad debts are usually exposed. Even though much of the reduction in outstanding OTC derivatives is due to consolidation of positions following the Frank Dodd Act, much of it is not. When free markets reassert themselves, and they always do, the disruption promises to be substantial. We appear to be in the early stages of this event. If so, demand for physical gold can be expected to escalate rapidly as a financial crisis unfolds.

 

 
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