From Dennis Miller of Casey Research:
Eight percent is not good news. In my latest article I shared some reader feedback from our inflation survey, and in case you missed it, the Money Forever Reader Poll Inflation Rate is 8%.
But what does that number really mean for us – seniors and savers trying to protect our buying power? It’s time to read the tea leaves and find out…
One of our readers [...]
From The Big Picture:
I mentioned last week that bullish sentiment was getting a bit frothy. After a few weeks of record highs, expectations that stock prices will continue rising had surged.
Not quite an extrapolation of recent trends into infinity, but getting there.
This morning, I wanted to address the flip side of that — Bearish sentiment (expectations that stock prices will fall in the near future). This Pessimism remains above historical [...]
from Bloomberg:
Massachusetts ranked first in economic opportunity in a new index that bolsters President Barack Obama’s argument that government and education are essential for creating the conditions for growth.
Massachusetts, Maryland and Minnesota placed among the top five states measured by unemployment, household income and the chance for residents to boost earnings. The new gauge was developed at Harvard University and the University of Pennsylvania.
“The states that invest in their citizens end up having better economies, which [...]
Ethan A Huff
Natural News
October 27, 2012
They continue to be all the rage today, particularly among the masses of chronically-fatigued individuals and young people seeking a rapid energy boost. But highly-caffeinated beverages like Monster Energy and Red Bull are increasingly finding themselves implicated in wrongful death accusations, as the drinks typically contain caffeine levels up to 14 times higher than a normal cup of coffee, which some allege can lead to [...]
It is just getting sad now. In April the number of people not in the labor force rose by a whopping 522,000 from 87,897,000 to
88,419,000. This is the highest on record. The flip side, and the reason why the unemployment dropped to 8.1% is that the labor force participation rate just dipped to a new 30 year low of 64.3%.
Labor force participation Rate:
People not in labor force:
Source
It is also true that upwards of 46% of Americans don’t pay federal taxes, but simple math shows that if 80% of the population is only pulling in 40% of pre-tax wealth there isn’t going to be a lot there to tax on the individual level.
Take $1000 dollars and split it up among 10 people. Two people would each have $300 and the other eight would have $50 each. More [...]
A few days ago, Eric Sprott decided to take advantage of the record premium over NAV of his physical silver fund PSLV (or for some other arbitrary reason) and to issue a $300MM follow-onoffering, whose proceeds would be used to buy up silver to add to PSLV’s existing physical holdings. Naturally, as soon as the news broke, the premium dropped to about 10%, making PSLV holders unhappy. This is not the [...]
From Sovereign Man:
We recently received a great question from a reader, Chuck, who asked, “Simon, I’m going to HK in 10 days to open a bank account, and I know there are options to do this in several foreign currencies. What foreign currency would you recommend to hold over the longer term?”
I could never make a personal recommendation as I’m not a financial advisor, nor do I know the details [...]
by ZH
Just when you thought the latest round of liquidity improvement rumors out of the ECB (such as the resumption of a 12 month refinancing operation from last week) would buy the European financial system some time (not like many did, but for the sake of sentence construction bear with us), here comes reality confirming that it took about 4 days before liquidity got hopelessly [...]
No matter how you look at this development, it does not smell right. From JP Morgan’s website, hat tip Lisa Epstein:
JPMorgan Chase recently donated an unprecedented $4.6 million to the New York City Police Foundation. The gift was the largest in the history of the foundation and will enable the New York City Police Department to strengthen security in the Big Apple. The money [...]
No matter how you look at this development, it does not smell right. From JP Morgan’s website, hat tip Lisa Epstein:
JPMorgan Chase recently donated an unprecedented $4.6 million to the New York City Police Foundation. The gift was the largest in the history of the foundation and will enable the New York City Police Department to strengthen security in the Big Apple. The money will pay [...]
During the Bush Presidency the US borrowed on average 1.6 billion per day.
During the Obama presidency the US borrows on average $4 billion per day.
President Obama does not care much about deficits — other than worrying that big debt might matter in his re-election campaign.
In his first three budgets, Obama borrowed nearly $5 trillion. Currently, the government is borrowing about 45% of everything it spends. Obama’s [...]
By The Canadian Press
TORONTO – Nearly one-third of Canadians that responded to a recent survey backed by a major Canadian bank said they didn’t have enough money to cover living expenses.
An online survey completed for TD Canada Trust (TSX:TD) also found that 54 per cent of the 1,003 people who answered said it was a real struggle or impossible to save.
The report, released Wednesday, says that [...]
Akito Fukanaga from RBS warned of a “financial shock” as banks and insurers comes under strain, and investors focus on the nexus of structured products linked to the yen.
“Preventive measures on the financial front are urgently needed. Sentiment has declined severely and there are concerns over capital erosion at financial institutions. Lower stock prices and yen appreciation are on the verge of triggering a credit crunch,” he said.
The yen’s violent [...]
by polymath22
the stock market has been pumped up into a bubble with the baby boomers 401(k) money.
baby boomers retirement money has been being pumped into wall street, week-after-week, year-after-year, chasing a limited number of stocks.
the only reason “the stock market went up” is because people kept trading the same stocks back-and-forth… week-after-week, bidding the stocks higher and higher, in a classic bubble…
but this bubble has the life savings of the [...]
by Derivative
I am sure you noticed the steep drop in the U.S. equity markets on Tuesday of this week. This was primarily a result of a sharp plunge oversea in the Asian markets during their Tuesday session. It followed comments and speculation that China would increase its benchmark interest rate, causing further strengthening of their currency versus the dollar. I am over simplifying the dynamic, but China states it [...]
Despite the fact that China states that they are going to start projects to build up or improve the infrastructure in the western provinces, this thing keeps tanking. What is happening?
As a note, I know that orders for new Capesize ships have been fulfilled recently with more to come … so is this why the prices are staying down? Does anyone else [...]
My response:
When the economy is truly recovering: when we’re gaining 100-200K jobs a month, house prices recover, and people who work at Walmart aren’t on public assistance. And P/E ratios are 8-10, rather than 15-20, as they are now. http://online.wsj.com/mdc/public/page/2_3021-peyield.html?mod=topnav_2_3002 Maybe then the bear is over.
That’s the glib answer. In truth, I have no idea.
Right now the Fed and its minions are pumping the futures, Dow is -+24 points, while [...]
Gains in the major averages now stand in the 70% range or higher. The longer it lasted and the higher it climbed, the more people have believed it must be “for real.”
But of course, it was certain to be this way. It’s common for stocks to rally strongly after a big decline, especially one as immense as the decline of 2007-2008. And the flip side of more people believing in [...]
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