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Powell, Do You Even Know What The Economy Is?
Powell, Do You Even Know What The Economy Is? To Clarify, Main Street Is Not Wall Street After all the destructive policies we have seen coming out of the Eccles Building, it may be time to ask Fed Chairman Jerome Powell, “Do you even know what the economy is?” All the easing and stimulus has […]
Mission Accomplished: Fed Officially Blows The Biggest Ever Bubble
Mission Accomplished: Fed Officially Blows The Biggest Ever Bubble Mission Accomplished: Stocks managed gains on the month (4th month in a row) – Nasdaq best, Dow worst… Source: Bloomberg And note that despite the epic surge in the mega tech stocks overnight… Yes, that is AAPL up 10%!! (GOOGL -4%)…MSFT managed to rally back to […]
Weekly Commentary: Bubble Meets Pandemic Consequences
Weekly Commentary: Bubble Meets Pandemic Consequences For posterity, some numbers: Over the past three weeks (14 sessions), the S&P500 gained 11.5%. The KBW Bank Index surged 36.1%, with the NYSE Financials up 23.9%. The Dow Transports rose 27.2% in 14 sessions, with the Bloomberg Americas Airlines Index up 75.8%. Over this period, the broader market […]
Overpriced Stocks May Be Bubble Ready to Pop
Overpriced Stocks May Be Bubble Ready to Pop Even if local and state governments hadn’t shut down businesses in attempts to mitigate the coronavirus, the U.S. economy was still set up to take on a number of economic challenges. But now, there’s one additional challenge being considered by billionaire David Tepper: over-inflated stock prices: Billionaire hedge fund investor David Tepper told […]
They’re All High on Fed Fairy Dust
They’re All High on Fed Fairy Dust Everybody realizes the US economy is in a bad spot. But most people still seem to believe it will bounce right back once we deal with the coronavirus. They’re all high on Federal Reserve fairy dust. US GDP contracted by 4.8% in the first quarter. It was the […]
Doug Noland: There’s No New Bubble Coming To Save Us
Doug Noland: There’s No New Bubble Coming To Save Us In this week’s Credit Bubble Bulletin, Doug Noland points out the ominous truth that the world’s governments have run out of new financial bubbles to inflate. The result, as John Rubino sums up perfectly, “This time is different, in a very bad way.” Here’s an excerpt from the much […]
No, The Fed Will Not “Save the Market”–Here’s Why
No, The Fed Will Not “Save the Market”–Here’s Why The greater the excesses, speculative euphoria and moral hazard, the greater the reversal. A very convenient conviction is rising in the panicked financial netherworld that the Federal Reserve and its fellow dark lords will “save the market” from COVID-19 collapse. They won’t. I already explained why […]
When Bubbles Pop, Only the First Sellers Escape Being Bagholders
When Bubbles Pop, Only the First Sellers Escape Being Bagholders Hapless bagholders have two options: buy the dip and be destroyed, or hang on hoping for a reversal and be destroyed. One often overlooked characteristic of the current stock market bubble is the extremely small exit for sellers trying to avoid becoming hapless bagholders. Bubbles always […]
The Violent Collision of Market Fantasy and Viral Reality
The Violent Collision of Market Fantasy and Viral Reality When the stampede tumbles off the cliff, buyers vanish and markets go bidless. The shock wave unleashed in China on January 23 is about to hit the U.S. economy and shatter everything that is fragile and fantasy, starting with the U.S. stock market. The shock wave is […]
Prelude to Crisis
Prelude to Crisis “The Federal Reserve is running the risk of fomenting an eventual financial crisis by easing banking regulations at the same time that it’s cut interest rates…say some former Fed officials, including ex-Vice Chairman Alan Blinder and financial stability experts Daniel Tarullo and Nellie Liang.”– Bloomberg article on December 17th, 2019 ______________________________________________________________________________________________________ INTRODUCTION […]
Negative Rates, The Destruction Of Money. Sweden Ends Its Experiment.
Negative Rates, The Destruction Of Money. Sweden Ends Its Experiment. Negative rates are the destruction of money, an economic aberration based on the mistakes of many central banks and some of their economists who start from a wrong diagnosis: the idea that economic agents do not take more credit or invest more because they choose to save […]
It’s Beginning to Look a lot Like…
IT’S BEGINNING TO LOOK A LOT LIKE… A BUBBLE! As the markets grind higher into the year-end the look of what is happening is becoming clear. The Fed is inflating a bubble. Valuation on the S&P is approaching 19x which is up from ~14-15x a year ago. Valuation isn’t a great tool for timing however […]
Dalio & Tudor Jones Warn: “We Will Kill Each Other” If Our Broken Economic System Isn’t Fixed
Dalio & Tudor Jones Warn: “We Will Kill Each Other” If Our Broken Economic System Isn’t Fixed Two hedge fund icons – Bridgewater founder Ray Dalio and Paul Tudor Jones – joined Yahoo Finance for the 2nd annual Greenwich Investment Forum earlier this month. Speaking directly after Connecticut Gov. New Lamont, with whom Dalio is working to […]
Is The ‘Mother of all Bubbles’ About to Pop?
Is The ‘Mother of all Bubbles’ About to Pop? When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets (the market banks use to make short-term loans to each other) in September, they said this would only be necessary for a few weeks. Yet, last Wednesday, almost […]
“Goodbye Asset Inflation” – Marc Faber Fears Funding Chaos Contagion From Repo Markets
“Goodbye Asset Inflation” – Marc Faber Fears Funding Chaos Contagion From Repo Markets Faber wrote in his Monthly Market Commentary for October, under the title : THE THREAT TO ACADEMIC FREEDOM AND TO THE RIGHT TO FREEDOM OF OPINION IS A MENACE TO LIBERTY, The historian Niall Ferguson recently wrote an article entitled: A message to […]
