Junk Bond Bubble Cracks, Destroys Stocks One at a Time
Junk-bond default rates have been low; as long as old debt can be replaced easily and more cheaply with new debt, and as long as losses can be funded with new debt, default isn’t necessary. Investors...
View ArticleIs Canada Next? Housing Bubble Threatens “Financial Stability”
Bank of Canada now frets that Canada’s housing bubble, which is much more magnificent than the US housing bubble ever was, is so vast and weighed down with so much debt that a “sharp correction in...
View ArticleShrinking Deficit? Ha! The Incredibly Ballooning US Government Debt Jumps by...
When it comes to the Federal deficit, reliable numbers are as elusive as unicorns. Not that there aren’t plenty of numbers out there, but they don’t match reality, which is the increase in the gross...
View ArticleThe Calm Before the Storm in the Gold Market
Gold sentiment is at a historic low. With more and more articles coming out with titles like “Gold Dies,” I am convinced we are seeing a major bottom being created. Read….. The Calm Before the Storm in...
View ArticleDebris from US Subprime Auto Loans to Ricochet across Main Street
Bank regulators fret about reckless lending and risks to the banks. But when this doozie pops, it will hit retail sales, manufacturing, industrial production, services, railroads…. It won’t go away...
View ArticleToxic Mix Blows up: Oil Price Collapse & Junk Bond Insanity
Theories abound why this is suddenly happening, after years of deceptive calm. Read….. Toxic Mix Blows up: Oil Price Collapse & Junk Bond Insanity
View ArticleIf the US Deficit is ‘only’ $483 Billion, why does the Government Have to...
We’re shocked and appalled: they’re lying to us, here in the land of open and transparent governance? Read… If the US Deficit is ‘only’ $483 Billion, why does the Government Have to Borrow $1.1...
View ArticleMore QE? These Charts Show the Pauperization of Workers in the UK and America...
These are the designated losers of monetary policy. And there are a lot of them. Read… More QE? These Charts Show the Pauperization of Workers in the UK and America since 2008
View ArticleWhat the Swiss Gold Referendum Means for Central Banks
Unlike the rest of us, the lucky Swiss get to go to the polls next month and tell their central bank what to do about gold. A yes-vote will send shock waves through the gold market and shake central...
View ArticleThe Wrath of Draghi: German Savers Hit with Negative Interest Rates
“Punishment Interest” it’s lovingly called in Germany, as the ECB intends to flog savers until their mood improves. Deutsche Skatbank, a division of VR-Bank Altenburger Land, which was founded in 1859,...
View ArticleEuropean Harmony? Merkel Hands Cameron an Ultimatum and for First Time Ever...
The German government draws a line. If Britain steps over it, it doesn’t belong in the EU. And it’s not about money. Read… European Harmony? Merkel Hands Cameron an Ultimatum and for First Time Ever...
View ArticleWhat the Heck is the Deal in Macau?
Gaming revenues have been soaring in Macau, the world’s largest gambling hub. Hefty double digit year-over year gains have been the rule, driven by newly rich Chinese high-rollers and their love for...
View ArticleThis Chart Shows How The Biggest Problem in the American Jobs ‘Recovery’...
The undisputed growth industry in the US that has done so well since the very beginning of the Financial Crisis, and in fact since 2001, after having plateaued or even declined for years before then,...
View ArticleHow Low Can the Price of Oil Plunge?
It is possible that a miracle intervenes and that the price of oil bounces off and zooms skyward. We’ve seen stocks perform these sorts of miracles on a routine basis, but when it comes to oil,...
View ArticleIt’s Official: Party Now, Apocalypse Later
That’s the new thinking about the markets in a crummy global economy where everything is overvalued. Read… It’s Official: Party Now, Apocalypse Later
View ArticleGlobal Business Outlook: “Darkest Picture since Financial Crisis.” US...
The plunging price of oil since June has been a leading indicator: global economic growth is in trouble, despite six years of unprecedented central-bank free-money policies that caused asset prices to...
View ArticleTreasury Warns Congress (and Investors): This Financial Creature Could Sink...
In its 2014 Annual Report to Congress, the US Treasury’s Office of Financial Research, which serves the Financial Stability Oversight Council, analyzed for our Representatives the “potential threats”...
View ArticleThis Is Why the Oil-Price Crash Will Maul the US Economy
The plunge in the price of oil that began in July acts like a tax cut, it is said, and will boost spending by consumers and businesses, and thus goose the US economy. Among the voices propagating this...
View ArticleSo-Called ‘Dumb Money’ Flees Junk Debt. And the Market Quakes
The Fed-triggered feeding frenzy in stocks on Wednesday and Thursday was paralleled in the junk-bond market. Energy-related junk bonds had gotten shredded over the past couple of months, as the price...
View ArticleGold “Terrifies” the International Monetary System
Gold is the most maligned asset, if you listen to the Fed, the ECB, and other central banks. This was driven home again in a variety of ways, including what transpired before the Swiss gold referendum...
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