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Mike Pento Warns Global Central Banks Are Entering The Danger Zone
Mike Pento Warns Global Central Banks Are Entering The Danger Zone Authored by Michael Pento via PentoPort.com, Investors are experiencing huge moves in commodities, currencies, equities and in sovereign debt across the globe. And now the fall has arrived. Expect the volatility currently witnessed in markets to only surge. This is because global central banks […]
The Fed and Asset Bubbles
THE FED AND ASSET BUBBLES In his speech on April 7 2010 at the Economic Club of New York the President of the New York Fed, William Dudley argued that asset bubbles pose a serious threat to real economic activity. The New York Fed chief is of the view that the US central bank should […]
John Law and the Mississippi Bubble – 300 Years Later
John Law and the Mississippi Bubble – 300 Years Later Most people are aware that historically there have been speculative bubbles. Some of them can even name a few – the South Sea bubble, tulips, and more recently dot-coms. Some historians can go even further, quoting the famous account by Charles Mackay of the South […]
Once the Bubbles Pop, We’re Broke
Once the Bubbles Pop, We’re Broke I hate to break it to you, but the everything bubble isn’t permanent. OK, I get it–the Bull Market in stocks is permanent. Bulls will be chortling in 2030 that skeptics have been wrong for 22 years–an entire generation. Bonds will also be higher, thanks to negative interest rates, and housing will […]
Weekly Commentary: $247 Trillion and (Rapidly) Counting
Weekly Commentary: $247 Trillion and (Rapidly) Counting I chronicled mortgage finance Bubble excess on a weekly basis. Relevant data were right there in plain sight, much of it courtesy of the Federal Reserve. Yet only after the Bubble burst did it all suddenly become obvious. Flashing warning signs were masked by manic delusions of endless […]
Here We Go Again: Our Double-Bubble Economy
Here We Go Again: Our Double-Bubble Economy The bubbles in assets are supported by the invisible bubble in greed, euphoria and credulity. Well, folks, here we go again: we have a double-bubble economy in housing and stocks, and a third difficult-to-chart bubble in greed, euphoria and credulity. Feast your eyes on Housing Bubble #2, a.k.a. […]
Jerome Is The New Janet: Tie, Trousers And Same Old Keynesian Jabberwocky
Jerome Is The New Janet: Tie, Trousers And Same Old Keynesian Jabberwocky The election of 2016 was supposed to be the most disruptive break with the status quo in modern history, if ever. On the single most important decision of his tenure, however, the Donald has lined-up check-by-jowl with Barry and Dubya, too. That is to […]
Wolf Richter: The Era Of The Fed “Put” Is Over
Wolf Richter: The Era Of The Fed “Put” Is Over It now wants lower asset prices (just not too fast) To all those investors expecting the Fed to step in to backstop the recent weakness seen in the stock market, Wolf Richter warns: The cavalry isn’t coming. After years of force-feeding too much liquidity into […]
Worst Case Scenario: What is It?
Worst Case Scenario: What is It? This article provides insight as to the way the Fed and all central banks think. A worst-case scenario is a concept in risk management wherein the planner, in planning for potential disasters, considers the most severe possible outcome that can reasonably be projected to occur in a given situation. […]
Weekly Commentary: Anbang and China’s Mortgage Bubble
Weekly Commentary: Anbang and China’s Mortgage Bubble The Shanghai Composite traded as high as 3,587 intraday on Monday, January 29th, a more than two-year high. This followed the S&P500’s all-time closing high (2,873) on the previous Friday. On February 9th, the Shanghai Composite traded as low as 3,063, a 14.6% decline from trading highs just […]
Don’t Worry, It’s Only a “Pre-Bubble”
Don’t Worry, It’s Only a “Pre-Bubble” Ray Dalio, who embarrassed himself saying “You’re Going to Feel Pretty Stupid Holding Cash” offers more silliness. Ray Galio, the head of the world’s largest hedge fund says U.S. in a ‘Pre-Bubble Phase’ with a 70% Chance of Recession. “I think we are in a pre-bubble stage that could […]
What Just Changed?
What Just Changed? The illusion that risk can be limited delivered three asset bubbles in less than 20 years. Has anything actually changed in the past two weeks? The conventional bullish answer is no, nothing’s changed; the global economy is growing virtually everywhere, inflation is near-zero, credit is abundant, commodities will remain cheap for the […]
Flying Blind, Part 2: The Destruction Of Honest Price Discovery And Its Consequences
Flying Blind, Part 2: The Destruction Of Honest Price Discovery And Its Consequences In Part 1 we noted that the real evil of Bubble Finance is not merely that it leads to bubble crashes, of which there is surely a doozy just around the bend; or that speculators get the painful deserts they fully deserve, which is coming big time, too; or even […]
The Fascinating Psychology of Blowoff Tops
The Fascinating Psychology of Blowoff Tops Central banks have guaranteed a bubble collapse is the only possible output of the system they’ve created. The psychology of blowoff tops in asset bubbles is fascinating: let’s start with the first requirement of a move qualifying as a blowoff top, which is the vast majority of participants deny […]
