Monthly Archives: April 2015

The Fed is Twice As Leveraged As Lehman Was

The 2008 Crisis was caused by too much debt/ leverage, particularly in the form of illiquid derivatives (mortgage backed securities get the most attention, but the derivatives market was well over $800 trillion at the time of the crisis). To … Continue reading

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The Global Bond Market Bubble DWARFS the Housing Bubble

The global Central Banks, driven by their Keynesian lunacy, have induced the single largest misallocation of capital in history. Nowhere is this clearer than in the bond market today. Do the following sound normal? 1)   Globally 45% of all Government … Continue reading

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The Black Swan Your Broker Won’t Tell You About

The US Dollar as we know it, derives its value based on where it trades against a basket of other currencies. Some 56% of this basket is comprised of Euros. Because of this, moves in the Dollar and the Euro … Continue reading

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The Fed Has Bet the Financial System on Misguided Theories

The Fed has bet the financial system on academic theories, that upon close inspection defy even basic common sense. One could easily write a multi-volume set of books on the Fed’s mistakes. However, in its simplest rending, the biggest flaw … Continue reading

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Are Stocks Heading For a 1929-Type Crash?

In the early 2000s, Alan Greenspan was worried about deflation. So he hired Ben Bernanke, the self-proclaimed expert on the Great Depression from Princeton. The idea was that with Bernanke as his right hand man, Greenspan could put off deflation … Continue reading

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Stocks Are In the Second Biggest Bubble Since 1870!

By almost any measure, stocks are sharply overvalued. Warren Buffet’s favorite value metric for stocks is Total Market Cap of the market/ GDP. Today we find this metric showing stocks as sharply overpriced. As Doug Short recently noted, only the … Continue reading

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We’ve Entered the Worst Economic Collapse Since 2008

The global economic implosion continues to worsen. China is growing at 3%… possibly even lower. One of the only remotely accurate Chinese economic data points is rail traffic. Well, Chinese rail freight has fallen at a pace not seen since … Continue reading

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