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by Charles Hugh-Smith Giddy “buy the dip, the Fed’s got our back” participants tend to forget that major players profit from going short when all the other shorts have been terminated with extreme prejudice. A funny thing happened on the way to the next Bull market: the price-earnings (P/E) ratio has entered bubble territory–again. Courtesy of frequent contributor B.C., here is a chart of the average P/E for the S&P 500 (SPX). Note [...] from sovereignman: Humbly I will ask you to please excuse the 48+ hour hiatus since we last spoke. I ate some tainted beef Tuesday evening that caused some of the worst food poisoning I’ve ever had in my life. It wasn’t pretty. Being sick is a funny thing… it really makes one appreciate being healthy. When we’re feeling great, we take our health for granted. Few people wake up in the morning and think, [...] by Lester Don’t live anywhere near the path of Hurricane Sandy? Figure you dodged The Bullet? Maybe, but most likely not. Sandy has taken out key and vital infrastructure especially New Jersey shipping ports, trucking terminals and refining infrastructure. Not like the tonnage and container cargoes processed there will easily be diverted elsewhere on the Atlantic Seaboard. What’s the nautical steaming distance to New Orleans or Houston? About 2,000 miles? Not much [...] zerohedge.com Give a man a gun, and he can rob a bank. Give a man a bank, and he can rob a country. Those are the very true words that two weeks ago had a man in Pennsylvania arrested. His purported crime? Terroristic threats, and the attempted robbery of the bank he was protesting! From CBS: An Occupy Easton protester faces an attempted bank robbery charge following an arrest at an organized event [...] Economic Collapse Blog When news broke of a 2 billion dollar trading loss by JP Morgan, much of the financial world was absolutely stunned. But the truth is that this is just the beginning. This is just a very small preview of what is going to happen when we see the collapse of the worldwide derivatives market. When most Americans think of Wall Street, they think of a bunch [...] by Charles Hugh Smith from Of Two Minds Where’s the Collateral? A sound system of credit is built on collateral. A doomed system of debt sits precariously on phantom collateral. The global “recovery” is based not on reducing debt but on increasing it. Nice, but where’s the collateral? The basic idea of debt is that credit is extended based on collateral, i.e. something of enduring, tradable value, or an income stream that isn’t reduced to [...] by Charles Hugh Smith of OfTwoMinds,
Depending on debt to fuel nominal growth leads to an economic death spiral.
Sometimes one chart says it all. Here is a chart of the S&P 500 (a broadly based measure of the U.S. stock market) in a ratio with total consumer credit, courtesy of frequent contributor Chartist Friend from Pittsburgh. Charted against consumer credit, the S&P 500 (SPX) collapsed after the 2000 dot-com bubble burst and has been tracing [...] Here is what a multi-trillion dollar liquidity expansion looks like even with the Fed running silentA funny thing happened while we all waited for the Fed to announce QE3. The rest of the world did it for them. Courtesy of Bloomberg’s excellent Economics Brief, and the n’th time, here is what a multi-trillion dollar liquidity expansion looks like even with the Fed running silent.
We do note that EUR strength recently and the acceleration of asset prices in Europe (bank stocks, credit etc.) appear to have done [...] From OilPrice.com: A funny thing is happening on the way to the clean energy future – reality is setting in. There is “incontrovertible evidence” about the economic growth and job creating effects of America’s unconventional oil and gas production boom – more than 600,000 jobs directly attributable to shale gas development. Even President Obama is praising the job creating benefits of “America’s resource boom.” America is getting its energy mojo back [...] Most people dont know about ACTA, but you must try to stop it. Google it and it says it all EDIT: the reason I didnt explain it was because it is a complex bill and googling it would be easier. I’m sorry for any inconvenience this may have caused, this post was mostly to spread awareness EDIT: Wow, the front page, first time here XD oh well, I just wanted to spread [...] by WeeklyStandard DNC chair Debbie Wasserman Schultz went to Iowa to spin the Iowa caucus results. But a funny thing happened when she appeared as a talking head on television: Folks wanted to know whether President Obama would drop Vice President Joe Biden from the 2012 Democratic ticket and instead choose to run with Hillary Clinton. On CNN, Wasserman Schultz was asked to react to this statement, “Robert Reich is predicting that Hillary [...] Personally, I really enjoy making almost everyday my “kaspi yogurt” as they refer to it here in Japan. The procedure is dumbfounding simple: Boil enough water by Chris Martenson What we care about most here is helping people adjust and adapt — happily, profitably, and safely — to what is likely to be a very different future. Our framework centers on the idea that humanity is facing a set of predicaments quite unlike anything else in the history books. Because this time there are no borders to cross in search of safety; the entire world is involved. On a [...] by The American Dream It should be evident to anyone with half a brain that the recent Republican presidential debates have been incredibly slanted in favor of certain candidates. The candidates that the mainstream media favor are receiving far more talking time than the other candidates during the debates. It is hard to defend the legitimacy of our political system after watching what a farce the race for the Republican nomination has [...] by Jeff Snider of Atlantic Capital Management ‘Tis The Season For Seasonal Obfuscation The headline GDP number was apparently enough growth to completely erase all thoughts of any renewed recession. However, most of us know that one quarter is not a trend and that the quarterly numbers are often statistically adjusted beyond something non-statistically meaningful. If we look at the headline numbers in sequence, it certainly seems that the economy is picking up from [...] The OccupyLA protesters call themselves the 99%. A self-described 1%’R, a Capitalist, wandered into the Occupy Los Angeles protest at City Hall one evening and confronted the protestors and answered questions that many of them had. Funny thing is, the protestors enjoyed the discussion with the capitalist and invited him back. We Are The 99% This week, bond god Bill Gross just made a super-long bet on the long end of the yield curve, coming right after a historic rally in fixed income. It was a gigantic shift from his stance earlier this year, when he bet against Treasuries — a bet that famously worked out badly for him. The interesting thing about this is that his short bet got TONS of attention (including a big story in The [...] by ZH A funny thing happened in Euro spreads today. While the bonds of all PIIGS countries surged higher in price (and plunged in yield) upon the announcement of the second Big Bang bailout, the reaction in core Eurozone credit was hardly as exuberant, and in fact spreads of the two core European countries pushed wider by the end of the day, and over the last [...] by Jim Quinn of The Burning Platform Unforgiven – Part Five “You’d be William Munny out of Missouri, killer of women and children”. – Little Bill Daggett – Unforgiven ”That’s right, I’ve killed women and children, I’ve killed just about everything that walked or crawled at one time or another, and I’m here to kill you Little Bill, for what you did to Ned” – Willam [...] by Charles Hugh Smith from Of Two Minds Your Pick, Ben, But One Goes Off the Cliff It’s one or the other, Ben: you either push the real economy over the edge or you push stocks and the risk trade off the cliff. Now that you’ve pushed the dollar down, Ben, it’s your pick on what to push off the cliff: your beloved risk trade or the real economy. Here’s [...] Seriously, we need a translator device or something. Japanese Emperor announcing surrender in WWII: “Despite the best that has been done by everyone – the gallant fighting of the military and naval forces, the diligence and assiduity of Our servants of the State, and the devoted service of Our one hundred million people – the war situation has developed not necessarily to Japan’s [...]
Last October, when everyone was jubilant about the housing “recovery,” Gary Shilling of A. Gary Shilling & Co., predicted that house prices would fall another 20%.
In the five months since, house prices have resumed their decline. In his most recent research note, Gary sticks by his “20%” decline prediction. We’ve included a summary and updated charts from his argument below. (Gary is offering a special discount on [...] Knight Capital has released a sovereign roadmap Catalyst Calendar which is a must read for anyone who trades with more than a 15 millisecond eye on the markets. And while everyone is now focused on what is going on with the Chinese tightening regime (with expectations of two-three more liquidity tightening steps over the next several months) with much speculating over just how priced in [...] by fishhook The overnight rally just caught fire today and ran all the way up to the 1305 area, which was the estimate for about the maximum possible up move today that I posted earlier this morning. While there wasn’t really much extreme positive tick today, the tick was positive on balance for most of the day. The funny thing about this move, and we [...] Washington’s Blog The stated purpose of quantitative easing was to drive down interest rates on U.S. treasury bonds. But as U.S. News and World Reported noted last month: By now, you’ve probably heard that the Fed is purchasing $600 billion in treasuries in hopes that it will push interest rates even lower, spur lending, and help jump-start the economy. Two years ago, the Fed set the [...] by fishhook For sure, stocks are pointing to a higher start this morning. Well, at least the stock futures contracts are! Santa did his merry work last night (he always does his best work at night). This is the rally-prone month of Christmas, and the pattern has been very consistent almost every day. The market starts to drift down in a slow, oozing fashion, and [...] by zh Well, folks, it’s official – mark November 22, 2010 in your calendars – today is the day the Ponzi starts in earnest. With today’s $8.3 billion POMO monetization, the Fed’s official holdings of US Treasury securities now amount to $891.3 billion, which is higher than the second largest holder of US debt: China, which as of September 30 held $884 billion, and Japan, with $864 [...] |
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