Category: Economics & Investing

Deranged Central Bankers Blowing Up The World – S.Q. o o o Financial Crisis 2016: High Yield Debt Tells Us That Just About EVERYTHING Is About To Collapse o o o Items from Professor Preponomics: US News What Energy Bankers are REALLY Saying: “We are looking to save ourselves now!” (Zero Hedge) Excerpt: “…anyone holding out for a big push higher across energy equities as a result of a wave of distressed equity M&A can give up: according to Credit Suisse the next wave of mergers will take place via ‘debt negotiations’, not equity buyout offers….” Warning: Commentary following the …

Fingerprints for Food: Venezuela Rolls Out New Plan to Keep Shelves Stocked. “…critics warn that the scheme — which is not mandatory for the moment — will be one more way for the state to keep tabs on the population, or might be a precursor to rationing.” Submitted by T.A. o o o ‘Look out, we are heading for a crash again’, warns William White, the central banker who predicted 2008 crisis – G.G. o o o Items from Professor Preponomics: US News Food Stamp Beneficiaries Exceed 45M for 55 Straight Months (Washington Free Beacon) Excerpt: “The USDA has been …

Alternate Unemployment Charts 25percent sound good – B.B. o o o The world can’t afford another financial crash – it could destroy capitalism as we know it – S.B. o o o Items from Professor Preponomics: US News Four Horsemen of the Economic Apocalypse (Business Insider) Excerpt: “It’s getting impossible to ignore all the risks… We know how leveraged banks are… If they get in trouble, then that money is gone. People have been avoiding thinking about it.” Yellen’s Dilemma: A Downturn with No Easy Response (Reuters) No right answer, and there’s no way out. In my opinion, there were …

Venezuela’s Collapse Brings ‘Savage Suffering’ – Submitted by P.S. o o o Items from Mr. Econocobas: Welcome To Obama’s Recovery: Carrier Moving 1400 Jobs To Mexico | Zero Hedge Items from Professor Preponomics: US News How Negative Interest Rates Could Remake the Global Financial System (New York Times) Excerpt: “A decade ago, negative interest rates were a theoretical curiosity that economists would discuss almost as a parlor game. Two years ago, it began showing up as an unconventional step that a few small countries considered. Now, it is the stated policy of some of the most powerful global central banks….” …

Genius: FATCA has brought in just $13.5 billion in revenue on a cost of $1 trillion o o o Items from Mr. Econocobas: Investors ‘Go Bananas’ for Gold Bars as Global Stock Markets Tumble – Getting more serious by the day. Yellen on Negative Rates: ‘We Wouldn’t Take Those Off the Table’ – You bet your biscuits, negative rates are not off the table. However, they have painted themselves in a corner, without an “event” that provides the cover to say, “Well things were going great until XYZ event, which was totally unforeseen and unpredictable.” Items from Professor Preponomics: US …

What does Wal-Mart owe the towns it leaves? 9 experts weigh in – There are a variety of opinions, but the bottom line really is that Walmart does not owe the community anything. Smaller businesses were driven under because the community chose to save a few bucks. It is the community itself that bears the responsibility. – RBS o o o CEO of shipping giant Maersk says economy is “worse than 2008” TRUNEWS with Rick Wiles – RBS o o o Items from Professor Preponomics: US News Fed’s Yellen Says Global Risks Could Pose US Growth Threats (Reuters) Excerpt: “But …

Fed May Lack Legal Authority for Negative Rates: 2010 Memo – G.P. o o o Collapsing America: America’s Infrastructure Decaying Into 3rd World Status. o o o Items from Professor Preponomics: US News 2016’s Economy Begins with a Whimper (Mises) Excerpt: “During many Fed tightenings, the stock market and overall economy improved for years afterward because the Fed stimulus had actually brought a temporary form of economic recovery. But rarely, if ever, has the mood turned dark so fast after the Fed officially announced that the recovery is sound and the life support can be removed.” Puerto Rico Emergency Fiscal …

Feds unlikely to hike interest rates in the months ahead – P.S. o o o Items from Mr. Econocobas: Greek Tragedy: Pension Pandemonium Sparks Bank Crash, Stocks At 26 Year Lows – The first line sums it up. And you thought Greece was “fixed”, but now problems are manifesting themselves globally. Greek Stock Market Falls Sharply on Banking Sector Meltdown – More evidence Three Reasons To Be Worried About The Economy – Zero Hedge Items from Professor Preponomics: US News JP Morgan Strategist: Central Banks Tried to Control the World…and Failed Miserably (Business Insider) Excerpt: “In Kelly’s ideal world, the …

California renter apocalypse: Why the rise in housing values is a reflection of a disappearing middle class. California rents up 5.7 percent last year. o o o Will Lehr: Jim Willie Interview o o o Items from Professor Preponomics: US News Fed’s “Accommodation” Outrun by Tightening Credit (Reuters) Excerpt: “Judging by recent market action and what’s happening in many economies around the world, it is an appropriate time to take recession risks seriously….” The Cozy Relationship Between the Treasury and the Fed (Mises) Excerpt: “Since the Fed does not exist to generate profits, some may be confused as to how …

Ann Barnhardt on a Personal Update and Negative Interest Rates: Highway to a Cashless, Statist Hell. o o o ‘New Money’ Powers PayPal’s Super Bowl Push – another step in herding the sheep towards a cashless society. Submitted by RBS. o o o Items from Professor Preponomics: US News The Velocity of Money (American Thinker) An interesting conversation about the velocity of money and its implications for the economy. I would add that in addition to an unwillingness to spend through the system at the level of the individual consumer or household, there are structural constraints also in play. Excerpt: …

World Going into Nasty Depression-Hugo Salinas Price – B.B. o o o Hard times if you’re a business owner (or an employee) and part of your business relies on the State of Illinois. State of IL is $10B past due paying vendors – P.S. o o o Items from Professor Preponomics: US News How Free Electricity Helped Dig $9B Hole in Puerto Rico (New York Times) Excerpt: “Now, however, the island’s government is running out of cash, facing a total debt of $72 billion and already defaulting on some bonds — and an effort is underway to limit the free …