Multibillion Hedge Fund Manager: "Ultimately QE Will Fail; US And China Might Enter Recession At The Same Time"Submitted by Tyler Durden on 04/20/2015 12:20 -0400
"Ultimately, the current QE programs will fail. I think most likely through a large devaluation in the emerging market currencies. Having dodged and parried so many blows from Central Bank QE programs, the market is seemingly failing to break higher. Breadth is narrowing in the US stock market, and credit spreads widening. Economic data, with the exception of jobs, which is a lagging indicator, indicate the US economy is peaking. To me it looks like the US and China might go into recession at the same time."
SEC Reaches "Appropriate" Settlement With Freddie Mac Execs Who Will Pay Nothing And Receive No PunishmentSubmitted by Tyler Durden on 04/15/2015 15:25 -0400
Three former Freddie Mac executives who understated the amount of subprime exposure on the GSE's book by a factor of 28 came to terms with the SEC today on a settlement which imposes fees no one has to pay and "limitations on future behavior" that "will not limit [anyone] in any practical way."
The implosion of America serves a very particular purpose. It is not a product of blind coincidence, fate, political stupidity or corporate greed. It is an engineered event meant to clear the way for an even more sinister economic environment designed to establish a final economic empire with the purpose of permanently enslaving us all.
Can't Wait To Read Bernanke's Memoirs? Here Are All The Timeless Statements By The Former Fed ChairmanSubmitted by Tyler Durden on 04/09/2015 16:13 -0400
We know it will be next to impossible to wait until October when this book of toner repair and printer cartridge replacement wisdom comes out, here is a sampling of timeless soundbites by the former Fed Chairman and current blogger, that should be enough to hold readers over.
- Shell Will Buy BG Group for $70 Billion in Cash and Shares (BBG)
- IMF warns of long period of lower growth (FT)
- Wall Street sanguine as it heads into worst earnings season in six years (Reuters)
- Switzerland First With 10-Year Bond at Negative Yield (WSJ)
- U.S. Dot-Com Bubble Was Nothing Compared to Today’s China Prices (BBG)
- Rahm Emanuel Re-Elected as Mayor of Fiscally Ravaged Chicago (BBG)
- Oil falls on U.S. stock build, record Saudi output (Reuters)
- White South Carolina policeman charged with murdering black man (Reuters)
- German Factory Orders Drop for Second Month (BBG)
- A third of Republicans support Iran nuclear deal (Reuters)
Breaking the Definintion of Money and Inhibiting Seigniorage (Money Printing) with Asset Backed BitcoinSubmitted by Reggie Middleton on 04/03/2015 13:01 -0400
Taking the gold-backed dollar into the next millenium and imbuing it with all of the attributes of the Bitcoin blockchain.
"When I was chairman, more than one legislator accused me and my colleagues on the Fed’s policy-setting Federal Open Market Committee of “throwing seniors under the bus” (to use the words of one senator) by keeping interest rates low. The legislators were concerned about retirees living off their savings and able to obtain only very low rates of return on those savings. I was concerned about those seniors as well."
- Ben Bernanke first blog post
When we left you yesterday, we were trying to connect the bloated, cankerous ankles of the US economy (Part 1) to the sugar rush of its post-1971 credit-based money system (Part 2). Today, we look at the face of our government. It is older... with more worry lines and wrinkles. But whence cometh that pale and stupid look? That is also the result of the same advanced diabetic epizootic that has infected American society.
Americans still say they believe in free markets, democracy and financial rectitude. But only as platitudes and hypocrisies... the free market was one of the first casualties of the post-1971 fiat money period. In a free market, people earn money by working (income) or by saving and investing it (capital growth). But credit-based money needed neither work nor saving; you just had to know the right people.
"Leverage is risky. Purchasing assets with borrowed money can amplify small movements in prices into extraordinary gains or crippling losses, even default."
- San Fran Fed
FHFA finds that the GSEs might well need billions more in taxpayer dollars in the event of a downturn, suggesting the deck may be stakced against those the companies' common.
- Hilsenrath: Fed to Markets: No More Promises (WSJ)
- Fed set to ditch 'patient' rate vow as it eyes U.S., world growth (Reuters)
- Fannie, Freddie could need another bailout (Reuters)
- Alibaba Stock-Sale Lockup Is Ending (WSJ)
- Netanyahu Sweeps Aside Herzog’s Challenge to Win Israel Vote (BBG)
- Oil Bonds Lose Investors $7 Billion in 10 Days (BBG)
- There’s a mysterious $1.1 trillion in spending cuts in the House GOP’s budget (WaPo)
- ECB's Celebration of Its New $1.4 Billion Tower Is Spoiled by Protesters (BBG)
Welcome to the new old normal 'Murica... buy those homes... lever up... spend the HELOC... die a debt serf...
Having exuberantly reached its highest level since September 2013 last month (despite the total collapse in mortgage applications), it appears the ugly reality of the housing market has peeked its head out once again. As prices rose, existing home sales plunged 6.1% - the most since July 2010 (against an expected 1.1% drop) to 4.93mm SAAR (the lowest in 6 months). As usual there is an excuse for this carnage... NAR's Larry Yun blames the stock market (and rising home values). Quite a conundrum for the Fed...
Despite the authorities' best efforts to keep everything orderly, we know how this global Game of Geopolitical Tetris ends: "Players lose a typical game of Tetris when they can no longer keep up with the increasing speed, and the Tetriminos stack up to the top of the playing field. This is commonly referred to as topping out."
"I’m tired of being outraged!"