zerohedge.com / By Tyler Durden / June 19, 2013, 16:51 -0400
The economic and asset bubble in Japan burst in 1990, at roughly the same time as its demographic structure reached a tipping point. As UBS’ George Magnus notes, the working age population began to fall, marking the start of a relentless rise in both [...]
from Financial Survival Network
We caught up with Bill Holter of Miles Franklin today.
“The United States debt, foreign and domestic, was the price of liberty. The faith of America has been repeatedly pledged for it… Among ourselves, the most enlightened friends of good government are those whose expectations of prompt payment are the highest. [...]
acting-man.com / By Pater Tenebrarum / June 19, 2013
Something Might Be Going Wrong Over There …
Now it’s official – even the credit rating agencies are noticing the huge credit bubble in China, which has in recent years been mainly driven by the ‘shadow banking’ market. Keep in mind though, the [...]
zerohedge.com / By F.F. Wiley / June 18, 2013, 17:24 -0400
Submitted by F.F. Wiley via Cyniconomics blog,
Awhile back, I thought it might be interesting to create one of those island economy stories to demonstrate a problem with the Fed’s policy framework. I finally got around to it over the past week, after reading [...]
zerohedge.com / By Tyler Durden / 06/18/2013 13:25 -0400
It appears that while investors seem loathed to sell their underlying positions, they are actively (and anxiously) hedging in equities and credit today…
The credit ETF (and CDS) market provides liquidity for active hedging – as does the VIX ETF and futures market…
dailyreckoning.com.au / By Greg Canavan / June 17th, 2013
Before we get into today’s Daily Reckoning, just a quick reminder to keep an eye out for a new ‘Revolutionary Technology Report’ coming out later today. It should be with you around 3pm. It’s the culmination of the three part tech-trilogy video series [...]
zerohedge.com / By Tyler Durden / June 16, 2013, 20:01 -0400
The recent market weakness (selling off in equity indices and widening in credit spreads) shares many elements of the previous dips this year, which should give bulls some comfort (the Italian- and Cyprus-led dips didn’t last very long). However, there are elements which are [...]
dollarcollapse.com / By John Rubino / June 15, 2013
Things have been a little erratic lately here in US, but not really headline-worthy. The economy continues to grow, sort of, houses continue to sell and stock and bond prices fluctuate but can’t seem to follow through in either direction. We are not, in short, engulfed [...]
zerohedge.com / By Tyler Durden / June 13, 2013, 21:04 -0400
Gluskin Sheff’s David Rosenberg has ten nagging concerns…
1. No wonder China can no longer reflate like it did back in 2009. It would be adding more debt to an unprecedented credit bubble…
2. Wondering why the Euro is doing so [...]
dailyreckoning.com.au / By Bill Bonner / June 13th, 2013
‘Behind every great fortune is a great crime,’ said French novelist Honoré de Balzac. What crime lies behind Booz Allen Hamilton?
More on that in a moment…
Still no clarity in the markets. Still no resolution. The unstoppable force of more and more [...]
market-ticker.org / By Karl Denninger / June 12, 2013
Everyone thinks of the Stock Market Crash of 1929 as having been caused by “irrational exuberance”.
The panic of ’87 and the crash of 00/01 was thought of the same way. Nope.
So what causes them?
Overuse of leverage.
In other words, they [...]
zerohedge.com / By Tyler Durden / June 12, 2013, 14:47 -0400
The “buy-the-dip mentality” has left the building (for now)… The Great Rotation out of USD assets continues (for now as Gold remains bid and equities play catch-down to credit)… only 45 minutes to 330 Ramp Capital…
zerohedge.com / By Tyler Durden / June 6, 2013, 13:06 -0400
Presented with no comment…
So summing it all up – 10Y is almost unchanged on the year; credit is now worse on the year; VIX is dramatically worse; Lumber has plunged; and the Nikkei 225 is down 24% from its highs…
dailyreckoning.com.au / By Greg Canavan / June 5, 2013
So, the monthly interest rate hype has come and gone for, well, another month. Boss Stevens, of course, left interest rates on hold yesterday, at 2.75%. If anything the absence of a cut saved us from the hysteria about how it will be good for consumption/housing/building/retail [...]
globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / Tuesday, June 04, 2013 7:34 PM
The Fed believes that holding interest rates low fosters business growth, hiring, and bank lending?
So why isn’t that happening? I have discussed many reasons, but today I have another one from Steve H. Hanke, Professor of Applied Economics [...]
charleshughsmith.blogspot.com / By Charles Hugh Smith / THURSDAY, May 30, 2013
Cheap credit is a great boon to the wealthy and a path to debt-serfdom for everyone else.
The ever-widening chasm between the wealthy and the “rest of us” has generated any number of explanations for this deeply troubling phenomenon. We can start with capitalism, [...]
zerohedge.com / By Tyler Durden / May 29, 2013, 09:03 -0400
There is a simple mnemonic for the Keynesian world: credit creation = growth. More importantly, no credit creation = no growth. And that, in a nutshell is the entire problem with Europe.
With the ECB unable and unwilling to engage in [...]
zerohedge.com / By Tyler Durden / May 28, 2013, 23:02 -0400
The last week has seen quite dramatic drops in the prices of a little-discussed but oh-so-critical asset-class in the last housing bubble’s ‘pop’. Having just crossed above ‘Lehman’ levels, ABX (residential) and CMBX (commercial) credit indices have seen their biggest weekly drop in 20 [...]
zerohedge.com / By Tyler Durden / May 23, 2013, 09:23 -0400
While it should be no surprise to anyone that buybacks have been a major support of the market for the last few years (as we explicitly showed here and here in terms of earnings manipulation and here in terms of ill-timing), the following chart [...]
zerohedge.com / By Tyler Durden / May 15, 2013, 09:01 -0400
It would appear that the credit markets both anticipated and began to price in what is now the worst recessionary period for the European Union on record a few days ago. However, their exuberant, ever-hungry colleagues over in equity land remain in the bad [...]
zerohedge.com / By Tyler Durden / May 13, 2013, 12:25 -0400
Presented with little comment aside to remember what we said the market ignored in 2007… and as a reminder, we warned last night that the Hilsenrath article would be spun to the equity-eating retail public as a positive (just another reason to buy stocks)…
aucontrarian.blogspot.com / By Frederick J. Sheehan / WEDNESDAY, MAY 8, 2013
“When Ro-Ro goes No-No” expounded upon the ultimate futility of conjuring illusory wealth. Bernard Connolly’s analysis, “Rethinking the Rogoff-Reinhoff Thesis,” made the case. Connolly wrote This Time is Different: Eight Centuries of Financial Folly, ”is largely an exercise in measurement rather than theory (while [...]
market-ticker.org / By Karl Denninger / May 5, 2013
Most people fail to understand basic mathematical concepts such as exponents and ratios as they apply to everyday life. We usually “get it” when it comes to the mathematical facts that are taught in school (if we passed through basic Algebra) but nobody in our [...]
doctorhousingbubble.com / By Dr. Housing Bubble / April 23, 2013
What if I told you that you could have a $600,000 mortgage for a monthly payment of $1,700? Sounds like a great deal right? Of course the only way to get this kind of action is by going into the “exotic” mortgage options that everyone [...]
blogs.telegraph.co.uk / By Jeremy Warner / April 24th, 2013
Up until now, I’ve always been a bit suspicious of complaints from the likes of Vince Cable, the business secretary, that the banks are gratuitously and deliberately starving UK business of the credit it needs to grow. It’s long seemed to me that [...]
armstrongeconomics.com / By Martin Armstrong / April 14, 2013
A new EU Directive provides that compulsory levies in Cyprus will be charged over the weekend. At a meeting of EU finance ministers in Dublin, Commissioner Michel Barnier confirmed that the the people are responsible for the bank they deal with. Depositors will risk [...]
oftwominds.com / By Charles Hugh Smith / April 9, 2013
It’s important to draw a line between two very different flavors of banker: “restrained” (Dr. Jekyll) and “unrestrained” (Mr. Hyde).
Those who read The Proper Use of Credit (April 4, 2013) know that I see a vital role for credit and yes, banks, in [...]
acting-man.com / By Pater Tenebrarum / April 5, 2013
A Number of Sectoral Credit Bubbles Become Evident
We have previously argued that the current inflationary echo boom (a boom with clear ‘depression undertones’ it should be added) is more diffuse than the previous two bubbles were, which were clearly concentrated in specific industries (namely technology [...]
charleshughsmith.blogspot.com / April 3, 2013
Great fortunes are built on the proper use of credit. Improper use of credit leads to mal-investment and wealth destruction.
We cannot understand our fundamental financial problems if we do not understand the proper use of credit. Credit has a key role in capitalism; credit-starved economies are underdeveloped economies, [...]