By Michael Snyder
Are we watching a replay of the last financial crisis? Over the past six months, the price of oil has collapsed, the U.S. dollar has soared, and a whole bunch of other patterns that we witnessed just before the stock market crash of 2008 are repeating once again. But what we have not seen yet is the actual stock market crash. So will there be one […]
IN THIS INTERVIEW: – Why America is getting poorer ?0:19 – Financial bubble and negative interest rates ahead ?12:07 – How to prepare for the next economic crisis ?16:44
Global bond bubble poses systemic risk to financial system FT warns that a June rate hike could put fixed-income funds under severe pressure Fed’s Bullard warns of “dire consequences” of developing asset price bubbles UK fund managers worried about “inflated value of bonds” Regulators talk tough but have wavered since 2011 Mutual fund markets have “ballooned” since 2008 “Gates” or capital controls that limit investor withdrawals in troubled […]
Jim Rickards: The Fed Has The Worst Forecasting Record In Economics
Even The Fed Can’t Decide What ‘Data Dependent’ Really Means
The Federal Reserve released its official account of the Federal Open Market Committee’s January meeting Wednesday. The minutes show considerable debate about the timing of interest rate hikes with members highlighting the dangers of raising interest rates too soon as well as the dangers of hiking too late.
“Nothing in the minutes indicates […]
U.S. student-loan delinquency near highest since data started 12 years ago: @WenzelEconomicshttp://t.co/esS1UxAGGypic.twitter.com/KmP9EaXrPb
— Pedro da Costa (@pdacosta) March 30, 2015
What I’m about to tell you is not my own opinion or even analysis. It’s original data that comes from the United States Federal Reserve and national credit bureaus. 40 million Americans are now in debt because of their university education, and on average borrowers have four loans with a […]
United States Stress testing
In the USA, the largest banks are regulated by the Federal Reserve (FRB) and the Office of the Comptroller of Currency (OCC). These regulators set the selection criteria, establish hypothetical adverse scenarios and oversee the annual tests. 19 banks operating in the U.S. (at the top tier) have been subject to such testing since 2009. Banks showing difficulty under the stress tests are required to postpone […]
By Michael Snyder
The Russian military is in the midst of a sweeping modernization program, and it is currently developing some incredibly impressive offensive and defensive next-generation weapons that are designed to be used in a future war with the United States. The key to winning World War III will be to strike hard and to strike fast, and the Russians understand this. Meanwhile, the U.S. military has totally […]
Wolf Richter wolfstreet.com, www.amazon.com/author/wolfrichter
The healthcare merger binge on Monday came in the nick of time. While the overall US economy is struggling to grow at anything faster than the puny pace of 2.3% per year, healthcare spending has been on a tear, rapidly grabbing an ever larger part of the economy. If it hadn’t been for the nearly 8% growth in healthcare spending last year, there might not have been […]
By Michael Snyder
When an economic crisis is coming, there are usually certain indicators that appear in advance. For example, commodity prices usually start to plunge before a recession begins. And as you can see from the Bloomberg Commodity Index which you can find right here, this has already been happening. In addition, I have previously written about how the U.S. dollar went on a great run just before the […]
by James Quinn
These stories always remind me of Wile E. Coyote. Virtually every municipality and State in this delusional empire of debt nation has promised their vast horde of government drones gold plated pensions. They have done so based on false assumptions, absence of a politicians’ backbone to stand up to government unions, total failure to understand the most simple mathematical concepts, and pure stupidity on the part of […]
by David Stockman
If you need evidence that we are in the midst of a lunatic financial mania, just consider this summary from a Marketwatch commentator as to why markets are ripping higher this morning:
“The dovish comments from both Fed Chairwoman Janet Yellen and People’s Bank of China Governor Zhou Xiaochuan are giving markets a big lift, and in the absence of negative data or news, I imagine this will continue to […]
WASHINGTON (Reuters) – The Obama administration’s plan for U.N. climate change talks encountered swift opposition after its release Tuesday, with Republican leaders warning other countries to “proceed with caution” in negotiations with Washington because any deal could be later undone.
The White House is seeking to enshrine its pledge in a global climate agreement to be negotiated Nov. 30 to Dec. 11 in Paris. It calls for cutting greenhouse […]
Iran and six major world powers have managed to reach a preliminary agreement on ‘all the key aspects’ of a deal over Tehran’s controversial nuclear program, Russia’s FM has announced, adding that the sides have begun drafting the text.
by David Stockman
Blogger Ben’s work is already done. In his very first substantive post as a civilian he gave away all the secrets of the monetary temple. The Bernank actually refuted the case for modern central banking in one blog.
In fact, he did it in one paragraph. This one.
A similarly confused criticism often heard is that the Fed is somehow distorting financial markets and investment decisions by keeping interest […]
The overwhelming majority of doctors — a total of 93 percent — are concerned about the common meat industry practice of using antibiotics on healthy animals for growth promotion and disease prevention, according to a new poll released today commissioned by Consumer Reports and released by Consumers Union and U.S. PIRG.
“Doctors need antibiotics to keep working, and they want factory farms to stop using the medicine on healthy animals,” […]
by Lance Roberts
A few weeks ago I discussed the importance of price momentum as an important component of portfolio management particularly in the late stages of a market advance when “investor exuberance” begins to overtake value based measures. To wit:
“The effect of momentum is arguably one of the most pervasive forces in the financial markets. Throughout history, there are episodes where markets rise, or fall, further and faster than […]
Two months ago, when looking at the most recent physical gold withdrawal numbers reported by the Fed, we observed something peculiar: between the publicly reported surprise redemption by the Netherlands (122 tons) and the just as surprise redemption by the Bundesbank (85 tons), at least 207 tons of gold should have vacated the NY Fed’s gold vault. Instead, the Fed reported that in all of 2014 “only” 177 tons of […]
US President Barack Obama has approved the delivery of a dozen F-16 aircraft to Egypt that had been frozen after a military-led takeover.
The White House said Obama told Egyptian President Abdel Fattah al-Sisi by phone on Tuesday that a 2013 freeze would be lifted.
The move comes as Egypt plays a key role in the Arab offensive against Iranian-backed Huthi rebels in Yemen and engages in the fight against […]
Skipping college doesn’t actually result in more years working. College grads work more. http://t.co/XqTT0KnyDcpic.twitter.com/2wVZsET8pV
— Josh Zumbrun (@JoshZumbrun) March 31, 2015
In 1979, the Labor Department began to track the careers of young men and women born between 1957 to 1964. The survey has tracked the same 10,000 people who were between 14 and 22 when they were first interviewed and are now 47 to 56.
New results of this survey […]
The outlook for corporate profits is getting worse, and it’s not just about the battered energy sector.
Banks, looked to as a bright spot for the upcoming earnings season, might not live up to expectations, according to an analysis from Goldman Sachs.
The firm’s analysts have cut profit outlooks for three of the top four money center banks on Wall Street, representing about a 6 percent reduction overall and serving […]
http://www.elliottwave.com/r.asp?rcn=… Chinese stocks hit a 7-year high today (Mar. 30). The Shanghai Composite is still far away from its 2007 all-time high, but in the first quarter of this year alone, it’s up 16%. What’s more, reports Bloomberg…