Monthly Archives: August 2013

US Interest Rates Will Continue to Rise

"The recent rise in long-term interest rates is just the beginning of an increase that will punish investors who are seeking extra yield by betting on long-term bonds. The relatively low interest rates on both short-term and long-term bonds are now causing both individual investors and institutional fund managers to assume duration risk and credit-quality risk in the hope of achieving higher returns. That was the same risk strategy that preceded the financial crisis in 2008. Investors need to recognize that reaching for yield could end very badly yet again." Continue reading →

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Housing Recovery Mirage Over; Bernanke Hoping to Retire Before It’s Noticed

"At the end of 2010, the interest rate on a 30-year mortgage was just under 5 percent… 4.97% to be more precise. Over the next 28 months actions taken by the Fed pushed that rate down as low as 3.42%. So… wonders of wonders… miracles of miracles… soon we were witnessing the inexplicable recovery of our previously decimated and hopelessly underwater housing markets from coast-to-coast. Stories of streets being paved with the gold of home equity and sprawling rental empires were being passed along from Realtor to mortgage broker throughout our apparent Land of Opportunity… the worst was finally over… everyone said so… even on T.V. so it simply had to be true." Continue reading →

Continue ReadingHousing Recovery Mirage Over; Bernanke Hoping to Retire Before It’s Noticed

Bernanke Textbook Royalties

"The textbook business can be very very lucrative. Fed Chairman Ben Bernanke is co-author (from before he was in government) of 'Principles of Economics' and 'Principles of Macroeconomics' (written with Robert Frank, published by McGraw-Hill) and 'Macroeconomics' (with Andrew B. Abel and Dean Croushore, from Pearson). It appears that the McGraw-Hill books are more lucrative, generating $100,000 to $1 million in income for the chairman, who also made $50,000 to $100,000 from Pearson." Continue reading →

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Bernanke Is Getting Killed in the Bond Market

"Federal Reserve Board chairman Ben Bernanke's latest disclosure statement for year end 2012 shows that he held positions in the Blackrock High Yield Bond Fund and US Treasury strips. If he continues to hold these positions, he is losing big time. His Blackrock bond position is down by at least 5%. Meanwhile, his strips position is likely getting destroyed. Here is a chart on the PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF, which is likely comparable to what Bernanke is holding. Over the last 12 months, it is down more than 24%. Bottom line: Bernanke is not only screwing up the nation's economy, he is screwing up his own portfolio." Continue reading →

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102-year-old woman parachutes from Idaho bridge

"Dorothy Custer celebrated turning 102 on Sunday by parachuting from a bridge in Idaho. For her 101st birthday last year, Custer zip-lined over the Snake River Canyon. This year, however, she told KMTV that she had planned to have a 'very calm birthday.' But those plans changed when her family gave her a tandem jump with professional BASE jumper, Sean Chuman, for her birthday. In BASE jumping — which stands for Buildings, Antennas, Spans, and Earth — participants jump off of platforms and then parachute to the ground. 'That was a thrill,' Custer says just after landing. 'But it was so quick! It was over with before I knew it.' 'There’s nothing much left to do but just live now,' she explains." Continue reading →

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The search for the world’s biggest BASE jump!

"Patrick Kerber opened a new exit point, by wingsuit BASE jumping off the Wengen-Jungfrau peak in Switzerland. Exit Point: Wengen-Jungfrau Peak, 4060m; Rockdrop: 138m; Landing: Lauterbrunnen; Flyable Altitude: 3240m; Time in Freefall: 2min 03s" Continue reading →

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Official wants E-cigarettes covered in school rules

"The Citrus County School District wants to crack down on anything that even looks like cigarette smoking. According to the Citrus County Chronicle, Planning and Growth Management Director Chuck Dixon has proposed adding language that would include electronic cigarettes to the school's no smoking policy. Dixon said the Florida Department of Health recommended language for e-cigarettes be inserted into the district’s policy. Since the Food and Drug Administration doesn't have a minimum age for who can purchase E-cigarettes, the district wants to make sure the students don't have them." Continue reading →

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France announces e-cigarette ban, then French study finds e-cigarettes harmful

"French Health Minister Marisol Touraine announced in May that the ban on smoking in public places would be extended to cover electronic cigarettes, and that they would be subject to the same controls as tobacco. The move has sparked outrage among sellers and users of the battery-powered devices which contain liquid nicotine that is turned into a vapor when inhaled. Ms Touraine said: 'The e-cigarette is not an ordinary product. We need to apply the same measures as there are for tobacco. That means making sure it cannot be smoked in public places, that its sale is restricted to over 18s and that firms are not allowed to advertise the products.'" Continue reading →

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All-seeing eyes focus on the sea

"The center, operated by U.S. Customs and Border Protection, can track as many as 50,000 aircraft at any moment. Officials say the center has reduced illegal cross-border flights from thousands per year in the mid-1980s to a handful. Initially, the focus was on drug trafficking, but has expanded over the years to include human trafficking, the smuggling of counterfeit products, and terrorist activities. The center now is testing software that will allow similar scrutiny of maritime traffic. The system would provide a comprehensive view of marine vessels within 100 miles of the U.S. coastlines. The omniscient view allows for greater coordination of agencies that might respond to a potential emergency." Continue reading →

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22 Reasons Why Starting World War 3 In The Middle East Is A Really Bad Idea

"Russia and China are sternly warning the U.S. government not to get involved in Syria, and by starting a war with Syria we will do an extraordinary amount of damage to our relationships with those two global superpowers. Could this be the beginning of a chain of events that could eventually lead to a massive global conflict with Russia and China on one side and the United States on the other? Of course it will not happen immediately, but I fear that what is happening now is setting the stage for some really bad things. The following are 22 reasons why starting World War 3 in the Middle East is a really bad idea." Continue reading →

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