Krugman's Solution Is "The Fiscal Equivalent Of War" - Japan Agrees

In the wake of the Bank of Japan (BoJ) decision to stand pat, Japan looks to be in ever more desperate straits, given the growing danger of sliding into its second recession since Abenomics was introduced. Such a recession would be the nail in the coffin of Abenomics, launched with high hopes and much fanfare three years ago. It made sense, therefore, for Prime Minister Shinzo Abe to seek the advice of Paul Krugman, who has been one of the chief cheerleaders for Abenomics, in a private meeting last month meant to lay the groundwork for the G7 Summit at Ise-Shima next month.

  • Apr 28, 2016 1:20 PM

Blistering 7 Year Auction Stops Through, Driven By Surge In Foreign Central Bank Demand

This week's preceding 2 and 5 Year auctions, both tailing, were nothing to write home about, or as we characterized them "mediocre." We also said that a big part of the reason may have been the overhang from yesterday's Fed decision. But now that the Fed is out of the picture for 2 months, the real shape of the primary TSY market could show itself and sure enough it did with blistering demand for today's $28 billion in 7 Year paper.

  • Apr 28, 2016 1:12 PM

Congress Fixes "Sexist" Draft - Votes To Require Women To Register For Selection

"This is not about women serving in the infantry. The administration has made that decision unilaterally disregarding what the Marine Corps and special operations communities have said. But that's not what this is about. Right now the draft is sexist. Right now the draft only drafts young men. Women are excluded."

  • Apr 28, 2016 12:56 PM

Did Bernie Sanders Just Go Full Establishment?

Comments made by Bernie Sanders this week may just have blindsided and disillusioned swathes of his support base. Some of those with higher expectations of the ‘peacenik’ candidate breathed a collective sigh of disappointment after he endorsed Obama’s extrajudicial drone assassination program.

  • Apr 28, 2016 12:51 PM

Volume Collapses As China Commodity Exchanges Ordered To "Curb Speculation"

We have been warning about China's speculative commodity trading bubble - spewing false signals around the world about the strength of the real economy - and now, as we suggested previously, Chinese authorities have decided to burst yet another bubble they created.Reuters reports that China's Securities regulator has ordered three major commodity exchanges to "control intraday speculation in commodity markets," ordering them to "curb trading for investors with no commodity industry background." Volume has crashed... and just as it did in the equity markets, price will follow.

  • Apr 28, 2016 12:32 PM

Gold & Silver Soar - Lead The Way Post-Japan "Policy Error"

It seems - just as we have seen since The Fed's December rate-hike decision - that The Bank of Japan's "shock" decision not to pour more punch into the global equity bull's bowl overnight has sparked another leg higher in the market's indicator of monetary policy incompetence. Gold and Silver are surging back near cycle highs...

  • Apr 28, 2016 11:52 AM

JPM Summarizes Earnings Season So Far: "At -8%, The S&P500 Q1 EPS Growth Is The Worst Since ’09"

80% of US companies beating EPS estimates is above the historical average. However, we note that in the last 10 years, the proportion of EPS beats was always well above the 50% threshold, suggesting that companies typically do a good job at managing analysts’ expectations. The actual delivered EPS growth is a better indicator of the underlying earnings backdrop, in our view. At -8%, the S&P500 Q1 EPS growth is the worst since ’09.

  • Apr 28, 2016 11:18 AM

What Americans Spent The Most Money On In Q1

what did they spend the most amount of money on? The answer, drumroll.... Recreational goods and vehicles. Not cars, which actually were a huge negative to Q1 GDP growth, reducing the headline consumption number by $13.4 billion nominal, but recreational vehicles, and other sundry related goods, which amounted to to $11.3 billion in Q1 spending.

  • Apr 28, 2016 11:03 AM

Dear Janet: Thanks For Helping The Average American

In March of 2005, 52,000 new homes were sold at prices of less than $200,000. At the bottom of the crash in March 2009 that number had dropped to 14,000. The Fed instituted ZIRP and QE around that time. Sales of homes under $200,000 totaled 9,000 units in March.

  • Apr 28, 2016 10:58 AM

Why One Trader Believes The BOJ Made A "Massive Misstep"

Even if keeping policy unchanged might once have been the correct decision, it’s not now. The failure to deliver, especially after Governor Kuroda’s comments about currency appreciation had driven hopes for further easing so high, is terrible news for the Japanese economy. Not to mention a further blow to the BOJ’s credibility. The immediate surge in the yen and the panicked sell-off in equities were the most obvious examples of trader disappointment. And the currency’s rally will put further downward pressure on both growth and inflation.

  • Apr 28, 2016 10:21 AM

Key Gold Index Doubles In 2016 (But Nobody Noticed)

Coming months will give us a far better clue as to how far the trend is entrenched. All we know right now is that the general investing public, and mainstream media, remain out of the picture.

  • Apr 28, 2016 9:56 AM

Why Real Reform Is Now Impossible

The endless bleating of well-paid pundits in the corporate media about "reform" is just more circus designed to distract us from the much colder truth: the status quo is beyond reform. The choice is either collapse or well, collapse: letting the status quo strip-mine the bottom 95% will eventually lead to collapse and so will structural reforms that deprive the few of their power to create near-infinite sums of money and credit for their cronies.

  • Apr 28, 2016 9:23 AM

US Economy Grew At Just 0.5% In Q1, Missing Expectations, Lowest Growth Rate In Two Years

"Did the Fed have an advance glimpse at Q1 GDP?" That was a question everyone was asking yesterday when the Fed came out with another not too hawkish statement. The answer may have been yes because moments ago the BEA reported that the US economy grew at just a 0.5% annualized rate in the first quarter, missing expectations of a 0.7% growth rate, growing at half the rate recorded in the 4th quarter, and the lowest quarterly growth rate since Q1 2014 (when the winter was blamed for a negative print). It was also the third consecutive quarter of GDP declines.

  • Apr 28, 2016 8:40 AM

Stockman: Anything Trumps Hillary

So is there any chance at all that Trump will make America Great Again by erecting trade barriers, a Trump Wall on the Rio Grande and an end to America’s imperial beneficence and meddling abroad? Stayed tuned. There may be more to The Donald than meets the eye. And whatever it is, it certainly trumps Hillary’s deplorable purpose to make Imperial Washington an even greater menace both abroad and at home.

  • Apr 28, 2016 8:27 AM

Priceline CEO Resigns After Revelation Of Inappropriate "Personal Relationship With An Employee"

"Mr. Huston resigned following an investigation overseen by independent members of the Board of Directors of the facts and circumstances surrounding a personal relationship that Mr. Huston had with an employee of the Company who was not under his direct supervision.  The investigation determined that Mr. Huston had acted contrary to the Company's Code of Conduct and had engaged in activities inconsistent with the Board's expectations for executive conduct."

  • Apr 28, 2016 8:16 AM