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Quantum leap for banks as ABN AMRO questions gold price discovery
Quantum leap for banks as ABN AMRO questions gold price discovery Earlier this week, an interesting article appeared on the website of the major Dutch bank ABN Amro, written by the bank’s currency and precious metals strategist, Georgette Boele. The article, titled “A world with two gold prices?”, questions how, if gold is a safe haven […]
2018 Chaos, 2019 Mayhem
2018 Chaos, 2019 Mayhem Titian The rape of Europe 1560-62 It took me a while to decide which word(s) best define the past year and the next one, but I think this is pretty much it. 2018 was chaotic more than anything else, and that chaos will give rise to mayhem in 2019. What I […]
Warren Buffett Explains Bubbles: But He Doesn’t Know We Are In One
Warren Buffett Explains Bubbles: But He Doesn’t Know We Are In One Buffet explains bubbles: “People see neighbors ‘dumber than they are’ getting rich.” Warren Buffett explains Why Bubbles Happen Buffett was asked by CNBC’s Andrew Ross Sorkin if he is worried another crisis will happen again. “Well there will be one sometime,” Buffett said […]
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 […]
Bubble Fortunes
Bubble Fortunes Wynn Bullock Child on a Forest Road 1958 A few days ago, former Reagan Budget Director and -apparently- permabear (aka perennial bear) David Stockman did an interview (see below) with Stuart Varney at Fox -a permabull?!-, who started off with ‘the stock rally goes on’ despite a London terror attack and the North […]
Do Any of the Current Rallies Pass “The Sniff Test”? No.
Do Any of the Current Rallies Pass “The Sniff Test”? No. But you can’t tame the monster of speculative, legalized looting and financialization. Everything from iron ore to copper to the Baltic Dry Index to stocks to bat guano is rallying. The problem is not a single rally passes “the sniff test:” is the rally the […]
Low Interest Rates Cannot Save a House of Cards
Low Interest Rates Cannot Save a House of Cards When is the price of some marketable good or service at or near zero? When either the supply of it is so plentiful that virtually any demand, no matter how great, can be satisfied. Or when no matter how large or small the supply of it […]
When Authorities “Own” the Market, The System Breaks Down: Here’s Why
When Authorities “Own” the Market, The System Breaks Down: Here’s Why Central planning asset purchases aimed at propping up prices destroy the essential price discovery needed by private investors. Panicked by the possibility of declines that undermine the official narrative that all is well, authorities the world over are purchasing assets like stocks, bonds and […]
Price Discovery and Emerging Markets
Price Discovery and Emerging Markets I got to admit, Paris and Charlie have thrown me off a bit. Can’t be just me who noticed how well the French CAC 40 was doing since Charlie Hebdo got shot, can it? Up some 2%, I don’t quite recall, Wednesday, the day of the attack, and 3.59% yesterday. […]
