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A Scam Called Valeant——Why The Casino Is Going To Blow

A Scam Called Valeant——Why The Casino Is Going To Blow If you need evidence that Wall Street is a financial time bomb waiting for ignition look no further than the recent meltdown of Valeant Pharmaceuticals (VRX). In round terms, its market cap of $90 billion on August 5th has suddenly become the embodiment of that proverbial sucking sound […]

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The Price Isn’t Right——-How Central Banks Are Fixing To Ambush The Casino

The Price Isn’t Right——-How Central Banks Are Fixing To Ambush The Casino The casino is incorrigible. After a monumental short squeeze that has lifted the averages right into the jaws of danger, Goldman Sachs has the temerity to print the following: “Our model suggests SPX calls are more attractive than at any time over the past 20 years”.  […]

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The Spook In the Casino—–Recession Just Ahead, Part 1

The Spook In the Casino—–Recession Just Ahead, Part 1 The wise guys keep buying the dips owing to the simple proposition that there is never a lasting bear market without a recession. So after today’s blow-out we are likely to get another call to scoop up the “bargains” because the correction has run its course and […]

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Now Comes The Great Unwind—-How Evaporating Commodity Wealth Will Slam The Casino

Now Comes The Great Unwind—-How Evaporating Commodity Wealth Will Slam The Casino The giant credit fueled boom of the last 20 years has deformed the global economy in ways that are both visible and less visible. As to the former, it only needs be pointed out that an economy based on actual savings from real production […]

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The Fed’s Painted Itself Into The Most Dangerous Corner In History—–Why There Will Soon Be A Riot In The Casino

The Fed’s Painted Itself Into The Most Dangerous Corner In History—–Why There Will Soon Be A Riot In The Casino The chart below crystalizes why the Fed is stranded in a monetary no man’s land. By the time of next week’s meeting the federal funds rate will have been pinned at about 10 bps, or effectively zero, […]

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Central Banks Have Shot Their Wad——-Why The Casino Is In For A Rude Awakening, Part I

Central Banks Have Shot Their Wad——-Why The Casino Is In For A Rude Awakening, Part I There has been a lot of chatter in recent days about the plunge in commodity prices—–capped off by this week’s slide of the Bloomberg commodity index to levels not seen since 2002. That epochal development is captured in the chart below, but […]

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Stay Out Of Harm’s Way—-The Casino Is Fixing To Blow

Stay Out Of Harm’s Way—-The Casino Is Fixing To Blow Shock waves have been rumbling through the global bond market in the last few days. On April 17 the yield on the 10-year German bund pierced through the 5bps level, but yesterday it tagged 100bps. That amounted to a 20X move in 39 trading days. It also amounted to total annihilation if you […]

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Olduvai IV: Courage
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Olduvai II: Exodus
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