Mad Money

Carrier & The Broken Window Narrative

The “Carrier” deal, and future deals like it, only succeed in temporarily keeping the jobs of yesterday with a cost to taxpayers today.

The Central Bank War On Savers - The Big Lie Beneath

The central bank war on savers is rooted in a monumental case of the Big Lie. Here is what a retired worker who managed to save $5,000 per year over a 40 year’s lifetime of toil and sweat in a steel factory now earns in daily interest on a bank CD. To wit, a single cup of cappuccino. Yet the central bankers claim they have absolutely nothing to do with this flaming economic injustice.

Institutionalized Lying - Why Central Bankers Never See Bubbles

Every day there is more confirmation that the casino is an exceedingly dangerous place and that exposure to the stock, bond and related markets is to be avoided at all hazards. In essence the whole shebang is based on institutionalized lying, meaning that prouncements of central bankers, Wall Street brokers and big company executives are a tissue of misdirection, obfuscation and outright deceit. And they are self-reinforcing, too.

The Tragedy Of America's Bull Market Culture

The middle class in America forgot all about the importance of savings and frugality and instead bought into the lie that one’s future would be “taken care of” if only it threw its money into the stock market.

Chipotl-E.coli Slides Below $500 As JPM Has Had Enough, Downgrades To Neutral On "Negative News Flow"

For weeks in a row, every new instance of an E.coli outbreak at Chipotle was taken by the BTFD crowd as an opportunity to, well, BTF-E.Coli, and as a result sharp intraday drops on recurring disease outbreak headlines led to prompt recoveries in CMG's price. However, this may no longer be the case: following yesterday's announcement of yet more cases emerging involving E.coli, one of CMG's biggest defenders, JPM analyst John Ivankoe has thrown in the towel, and first thing this morning downgraded the stock from Buy to Neutral, and lowered his target stock price from $630 to $555.

Should People Be Allowed To Work For $1 An Hour?

Whether a job requires intense effort and a specialized skill or just having a human brain, market prices are the only way to match people that want to do the job with the people that want the job done. Even $0/hour is sometimes voluntarily chosen by a worker who simply wants to help a certain cause. Mandated minimum wages eliminate these kinds of peaceful and productive arrangements, leaving both parties unsatisfied and society worse off.

The Wall Street Ponzi At Work - The Stock Pumping Swindle Behind Four Retail Zombies

The dance of the zombies goes on... During the 10 years between 2005 and 2014, these four retailers spent $34 billion on stock buybacks and dividends. But, alas, their cumulative net income during the period was only $13 billion. So they pumped 2.6X more into the casino than they earned! Last week’s tepid retail reports were not only a reminder that QE and ZIRP have by-passed main street entirely. The faltering department store sector is also a reminder that the monumental amount of Fed confected cash pooling-up in the canyons of Wall Street is breeding debt-laden zombies throughout the length and breadth of the land.