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Chart of the Week Video: Parabolic Thinking!
This week’s Chart of the Week video looks at the notion that bean stalks don’t grow forever, stock prices don’t always go up, and investors never stop believing that this time is different. Call this...
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Despite Plunge In New Orders, Employees, Wages, And Workweek, Richmond Fed...
Just because you have to laugh (rightfully so since it seems everyone is so 'confident'), we thought a quick look under the covers of the Richmond Fed 'beat' was worthwhile. The index 'rose' from -6 to...
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When Reality Intrudes: When Is A Stock Buyback Not A Stock Buyback?
Over a year ago we wrote "How The Fed's Visible Hand Is Forcing Corporate Cash Mismanagement" in which we explained that due to ZIRP, management teams are left with just two (very shareholder-friendly)...
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Stocks Nervously Eyeing Soaring Bond Yields
While this morning's explosion higher in Treasury bond yields (the largest in 9 months) was 'evidence' for many of the 'great rotation' as stocks rallied; it seems that now the 'crowd' is selling...
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US Mint Resumes Selling One-Tenth Ounce Gold Coins... At A 40% Premium To Spot
When news broke a month ago that the US Mint had suspended selling one-tenth ounce gold coins, perhaps the most surprising news was that there were thousands of consumers willing to pay the exorbitant...
View Article"What Hath Kuroda Wrought?"
We have been warning about the circular and adverse impact of soaring JGB yields since the day Kuorda announced the BOJ's new shock and awe "double the monetary base or bust"policy ("Is It Beginning?...
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Got Wood? A Housing Recovery Built On Faith
With lumber prices limit-down again (and now over 28% from their March highs), we are left assuming that they are building houses with hopium, as opposed to wood, these days... Of course this is not...
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Schaeuble Warns Of "Revolution" If Welfare Model Threatened
Over the weekend, when discussing the latest casualty of Bernanke's disastrous monetary policy, the US corporate pension plan, we touched on a topic that has been a recurring theme on these pages: "the...
View ArticleTax Burden in EU
Algirdas Šemeta, the European Commissioner responsible for Taxation and Customs Union, Audit and Anti-Fraud has announced in a speech that there are ten nations in the EU that need to cut the tax...
View ArticleHousing Bubble II: Euphoria And Other Shenanigans
Wolf Richter www.testosteronepit.com www.amazon.com/author/wolfrichterThe good old days are back. Those days during the last housing bubble when money grew on trees: home prices jumped 10.9% year...
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Meanwhile, Big Investors Quietly Slip Out The Back Door On Housing As "Stupid...
Last September, one of the original institutional investors in the housing-to-rent strategy, multi-billion hedge fund Och-Ziff called it quits on the landlord business. The reason: "the New York-based...
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Solid 5 Year Auction Follows Poor 2 Year; Dealers Left With Lowest Ever...
What a difference 24 hours makes: if yesterday's 2 Year bond auction was weak from beginning to end, today's 5 Year showed that any fears of a "great vortexing" in the market can be largely forgotten....
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What Do Credit Markets Know That Stocks Don't?
Two weeks ago we warned of the 'shift' we were seeing in the high-yield credit market. Equity market participants remain bereft of the ability to realize that releveraging to fund buybacks (which are...
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Guest Post: Is Oil Cheap?
Submitted by Charles Hugh-Smith of OfTwoMinds blog,Gasoline is expensive at the pump, but by one measure oil is cheap and poised to go higher. I recently posed this question to longtime contributor...
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Are We There Yet?
I’ve written this article for Institutional Investor Magazine. I feel very passionate about the topic and thus could not compress all my thoughts into 800 words. I expanded it and it was published in...
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Banks Behaving As If 'It' Never Happened
Today's Quarterly FDIC data release was cheered by many on the basis that US banks made the most money ever ($40.6bn) in Q1 which must mean something positive, right? With rates low, spreads low,...
View ArticleCentral Banks' Central Bank Warns About Rehypothecation Threats
Just a few years ago, central bankers dared not breathe the word rehypotehcation - after all it was the secret fabric that held the shadow banking system together, which was a critical hub to...
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10 Under-Reported Realities In The US Labor Market
Beneath the unemployment rate and headline jobs number is a world of labor market signals that few, if any, ever take the time to look at. ConvergEx's Nick Colas analyzes 10 under-reported signals to...
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GoDZiRA IS DeaD?
. . . . . . . . . Kuroda's a dangerous manHe's armed with a Keynesian planHis violent attackLeft open his sackThis flaw is the death of JapanThe Limerick King . .
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Guest Post: How Cheap Credit Fuels Income/Wealth Inequality
Submitted by Charles Hugh-Smith of OfTwoMinds blog,Cheap credit is a great boon to the wealthy and a path to debt-serfdom for everyone else. The ever-widening chasm between the wealthy and the "rest of...
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