Risk

When “the retirement of the baby boomers is expected to severely cut U.S. stock values in the near future,” is the ominous initial sentence from no lesser maintainer-of-the-status-quo than the San Francisco Fed’s research department, one begins to recognize the Federal Reserve’s overall need to hyper-inflate asset prices at whatever cost for fear of the ‘wealth’ destruction looming. […]

The Stage Is Set For an Ever Bigger Crash Than 2008 Last week we touched upon the “white elephant” in the room: that the biggest, most important bubble investors should worry about is in bonds, NOT stocks. Consider the following… The financial system is based on debt. US Treasuries, the benchmark for an allegedly “risk […]

 SKEW “Is Flashing A Big Warning Signal For Stocks” SKEW “Is Flashing A Big Warning Signal For Stocks” 07-15-14 ZH As stocks have pushed to new record highs in recent weeks, and VIX has dropped accordingly, the cost of protecting desperate asset managers from a far bigger collapse in prices has been soaring. We first noted the record […]

THE DELUSIONAL HIGH When Reality, Misguided Perceptions & Delusion Intersect. EXPECT MONETARY MALPRACTICE TO LEAD TO DELUSIONAL BEHAVIOR We wrote extensively in 2012 and 2013 how Monetary Malpractice was creating Moral Hazard and Unintended Consequences through Misinformation and Manipulation. In turn this was leading to behavior which involved increasing levels of Malfeasance, Mispricing and Malinvestment […]

CHARTS of NOTE: RISK Being Withdrawn from the Markets   Old Adage “Rarely a Sell-Off without the Banks Leading the Move Lower”   Hedge Funds Levered to the Hilt on: AMZN, GILD, DISH, PCLN, YAHOO, and FB   Poor Historic Comparisons   US MACRO Lowest in 19 Months   RUSSELL 2000, 200 Wek   Maximum […]

Reflexivity Suggests another Crash Is Inevitable Soros’s Reflexivity Suggests another Crash Is Inevitable 03-13-14 Chase Van Der Rhoer, Bloomberg Markets slumped on a toxic brew of headlines about the dismantling of Fannie Mae and Freddie Mac, writedowns from UniCredit, losses at Ceasars Entertainment and escalating tension between the West and the kremlin. Investment-grade corporates responded […]

SUMMARY STAGES STAGES-UNSOUND MONEY TO FIAT CURRENCY FAILURE STAGES-PUBLIC, FISCAL & MONETARY FAILURE STAGES-ROAD TO REAL DEFLATION STAGES-NATURAL PROCESS OF MATURATION End    Gordon T Long As seen in

SHADOW BANKING – REITS & CMBS Growth Competition for banking business lurks in the shadows 01-17-14 Tracy Alloway in New York Tighter rules for commercial lenders drive growth in shadow banking, writes Tracy Alloway Cocktails, cabanas and credit quality were some of the talking points at a commercial real estate conference held this week in […]

MONETARY POLICY – Dollar, Currency & Gold Outlook Merk 2014 Dollar, Currency & Gold Outlook 01-14-14 Axel Merk, Merk Investments Nothing normal about U.S. monetary policy During her confirmation hearings, incoming Fed Chair Janet Yellen testified that U.S. monetary policy is to revert towards more traditional monetary policy once the economy is back to normal. […]