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…
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 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.…
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…
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…
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…
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…
Earnings may very well have peaked. MarketWatch notes that adjusted profits (even after all of the accounting gimmicks), FELL last year. This is the first time this has happened since…
Stocks are bouncing today because the Fed will wrap up its monthly FOMC meeting and make a public statement this afternoon. Stocks have been rallying into FOMC meetings for the…
This is a trader’s market. The markets are showing us sharp moves up and down. And while “buy and hold” investors might find this a unpleasant, short-term trades can use…
The bells are ringing for the markets, but few are noticing. The primary driver of all stock prices for the last 5 years has been Fed intervention. The Fed is…
Time and again, we’ve been told that the Great Crisis of 2008 has ended and that we’re in a recovery. Indeed, earlier this year, we were even told by Fed…
We have entered a very dangerous stock market. On one side we have entered a period that historically is very weak for stocks. The old adage “sell in May, go…
The signs of inflation continue to appear in the economy. The Fed is ignoring this because the Fed is afraid of deflation… despite food prices, energy prices, healthcare costs, home…
Janet Yellen has a BIG problem on her hands. The Fed has been tapering its QE programs to the tune of $10 billion per month or so. The problem with…
About that jobs report. Upon closer inspection, the report was a total disaster. You wouldn’t know this from the financial media’s coverage, but it was. The establishment survey shows a…
The financial media are gaga over the alleged great jobs numbers from last week. We’ve been over this saga many times. The methodology for calculating jobs gains is not even…
The Central Bank intervention fiasco continues to unravel before our eyes. Globally all Central Banks have kept an eye on the Bank of Japan, which announced the single largest QE…
Historically, the Fed has claimed to have two mandates: maintaining stable prices and maximum employment. However, the Dodd-Frank bill, which passed in 2010, unveiled a new, third mandate for the…
Central Bankers will never openly admit that they or their policies have failed. Moreover, they do not rush into sudden tightening (more on this in a moment). But one can…
