When you get into too much debt, eventually really bad things start to happen. This is a very painful lesson that southern Europe is learning right now, and it is a lesson that the United States will soon learn as well. It simply is not possible to live way beyond your means forever. You can do it for a while though, and politicians in the U.S. and in Europe [...]
LATEST UPDATE:Japan quake: No serious damage, tsunami warning lifted
(Old)UPDATE: One meter high tsunami hits Ishinomaki, Miyagi prefecture – NHK
37.710°N 144.625°E depth=33.0km (20.5mi)
295km (183mi) SE of Kamaishi, Japan
295km (183mi) ESE of Ofunato, Japan
300km (186mi) SE of Otsuchi, Japan
302km (188mi) ESE of Ishinomaki, Japan
494km (307mi) ENE of Tokyo, Japan
A warning for a one meter tsunami was issued for the coast of Miyagi Prefecture in northeastern Japan, which was hit by a [...]
The eurozone economic downturn since the start of the crisis looks like the Great Depression of the 1930s, according to one economist
The decline in the economy of the eurozone, sparked by the beginning of the debt crisis with the shocks in Greece two and a half years ago, “seems to be more of a long-distance run than a quick sprint,” according to Carl Weinberg, chief economist at High Frequency Economics.
While pundits and critics are divided over whether “2016: Obama’s America” is a sobering documentary examining “the most mysterious U.S. president in modern history” or an 87-minute attack ad, there’s no debating that the film is a box office phenomenon.
Taking a page from his own book “The Roots of Obama’s Rage,” conservative scholar Diniseh D’Souza’s film has shocked industry prognosticators by earning an estimated $20 million to date, more than [...]
It would be odd to suggest that one of the most scathing critiques of the ECB’s attempts to talk up the market on nothing but hope, promises and expectations would come from rating agency Moody’s, yet that is precisely what has happened. With Swiss, Dutch, Finnish, and German short-dated bonds once again hitting new record low (negative) rates (and Italian 10Y is weakening), it would appear that at least some of [...]
Moody’s Investors Service on Monday changed its outlook for top-rated Germany, the Netherlands and Luxembourg to negative from stable, warning that they may have to increase support for indebted euro zone states such as Spain and Italy.
Moody’s also cited an increased chance of Greece leaving the euro zone, which “would set off a chain of financial sector shocks … that policymakers could only contain at a very high cost.”
The agency [...]
(Bloomberg) — Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., forecasts real growth in the U.S. will be about 1.5% a year for at least the next 10 years.
Slower labor-force expansion, overextended credit and potential geopolitical or environmental shocks will limit growth as the economy struggles to duplicate previous productivity gains, Gross said in a July 11 telephone interview.
“Slower growth means lower returns on [...]
The heatwave in America is set to continue beyond all expectations.
Especially if you believe one news station which accidentally told viewers that temperatures would reach new highs of 775 degrees.
The gaffe was made on ABC2′s WMAR newscast in Baltimore, Maryland, on Sunday.
As weatherman Mike Masco said he expected Monday to reach somewhere in the mid 70s, he turned to see producers had forgotten to add a decimal point on the graphic [...]
There simply isn’t enough money under current bail-out arrangements to rescue Italy should it require help. And markets are once more preparing for that eventuality.
Rome became a fully paid-up member of the 6pc-plus club on Tuesday as its cost of borrowing jumped to 6.14pc. Its predicament is different from Spain’s and Spain’s was different from Greece’s. But that didn’t stop Spain needing financial aid.
Italy’s budget deficit is not the primary [...]
June 10, 2012
So Spain is the latest country within the Eurozone saga to formally ask for money.
A decision was made last night that Spain would be able to have access to 100 billion euro to inject capital into the Spanish banking sector. The prime minister is pleased with his efforts to protect the financial sector while the people of Spain are in dire crisis.
Spain’s economic problems have now [...]
Don Rickles nearly hijacked the American Film Institute’s tribute to Shirley MacLaine on Thursday night at Sony Pictures Studios, unleashing a trademark barrage of insults that took aim atPresident Obama, Warren Beatty, Jack Nicholson and the honoree herself.
“I shouldn’t make fun of the blacks,” Rickles said, and then proceeded to do just that: “President Obama is a personal friend of mine. He was over to the house yesterday, but the mop broke.”
The black-tie crowd, gathered to [...]
Audiences at a graduation ceremony were left aghast when Congressman Barney Frank told a black degree recipient that his graduation gown finally gave him a hoodie that he could wear ‘and no one will shoot at you’.
The Democrat made the controversial remarks while speaking at the University of Massachusetts Dartmouth graduation on Sunday.
Frank was one of two people to receive the Chancellor’s Distinguished Service Medal at the event.
Scroll down for video
Shock: While [...]
Key indicators are deteriorating on almost every front, raising concerns that the world’s third largest economy is running aground after two “Lost Decades”.
Japan’s debt has jumped by 61 percentage points of GDP since 2008, compared to eight points for the AAA bloc. Public debt is expected to reach 239pc of GDP this year, uncharted levels for a major economy in peace-time. `Net debt’ – subtracting Japan’s vast holdings of foreign [...]
Two officers charged with murder of 37-year-old Kelly Thomas
Shocking new video shown at preliminary hearing shows graphic account of Thomas being beaten and Tasered by officers
Court also shown graphic images of Thomas’ body after he died
New surveillance video showing two officers beating a 37-year-old homeless man was played Monday – the latest evidence presented at a preliminary hearing in the man’s death.
The graphic black and white video is from a [...]
While in ‘normal’ times the commonly held view is that P/E ratios tend to fall as real interest rates rise, as we recently pointed out here, the relationship is highly non-linear and nowhere is this regime-dependence more evident than in the following chart from Morgan Stanley. Empirically, the current interest-rate regime (the 2-3% 10Y) is as good as it gets and whether rates rise or fall from here, equity valuations are likely [...]
Today billionaire Eric Sprott told King World News that Europeans have now lost confidence in both the banking system and the sovereigns. Sprott, who is Chairman of Sprott Asset Management, also warned the global economy is now rolling over and investors need to be prepared. Here is what Sprott had to say about the situation: “The Ponzi scheme in the financial world continues. Month after month there is a new technique [...]
Gold and Silver were held in range again, and continue to wind within the symmetrical triangles that are fairly visible on the chart.
Unless there is a major liquidity event, most likely triggered by Europe, the bias seems to the upside.
Eric Sprott warns that there are ‘global shocks coming’ in this interview at King World News. I think he is right.
Republican presidential hopeful Ron Paul revealed this week that he would support moving the U.S. Embassy in Israel to Jerusalem, a surprising position that contradicts conventional wisdom about Paul’s stance toward the Jewish state.
Paul first made this position known Wednesday night, during a private meeting with evangelical leaders interested in helping the Texas Congressman reach out to the conservative Christian community.
According to a transcript of the meeting obtained by Business Insider, the [...]
We are just barely arriving at the acceptance stage.
Peak oil was predicted to occur about NOW. Not 10 years ago, not 20 years ago, not 30 years ago.
It is becoming blindingly obvious that unconventional oil is difficult, expensive and slow to extract and is barely offsetting declines from conventional oil fields. We have been on a plateau since 2005 despite record oil prices. $147 oil in 2008 crippled the economy. [...]
Naked Girl Eating From Trash Cans Shocks Temecula Neighbors February 18, 2012
Neighbors in Temecula expressed shock after seeing a 12-year-old girl walking naked through a neighborhood and eating out of trash cans.
Neighbors noticed the girl roaming through trash cans looking for food and called 911.
Police arrested the girl’s mother, Tracy Betts, shortly after officers, acting on witness tips, searched for the girl Thursday and found her without clothes and sitting [...]
From King World News:
With stocks on the move and gold and silver consolidating recent gains, today King World News interviewed Rick Rule, CEO of Sprott USA. Rick spoke with KWN about what he is doing with his own money and his clients money right now…
“When conditions are unsettled and when conditions have no precedent, and I think we’re in that period of time, one result is volatility. There is currently [...]
Since 2005, the global production of oil has remained relatively flat, peaking in 2008 and declining since, even as demand for petroleum has continued to increase. The result has been wild fluctuations in the price of oil as small changes in demand set off large shocks in the system.
In today’s issue of Nature, two authors (the University of Washington’s James Murray and Oxford’s David King) argue that this sort of volatility [...]
Amid the best start of the year for the S&P 500 since 1987, Nic Colas of ConvergEx offers some deep thoughts on how behavioral finance concepts can help us understand the dichotomy between last year’s derisking and this year’s rerisking in terms of market participant psychology. Between delving into whether a short-sharp or long-slow colonoscopy is ‘preferable’ Nic reflects (antithetically) on 10 bullish perspectives for the current rally and how the human mind [...]
Global economy could endure disaster for a week
By Nina Chestney
LONDON (Reuters) – The global economy could withstand widespread disruption from a natural disaster or attack by militants for only a week as governments and businesses are not sufficiently prepared to deal with unexpected events, a report by a respected think-tank said.
Events such as the 2010 volcanic ash cloud, which grounded flights in Europe, Japan’s earthquake and tsunami and Thailand’s floods [...]