History Repeating

People Are Using Borrowed Money To Buy Stock Like It’s 2007 Or 1999

"Deutsche Bank has a monster note out on margin debt that has been making the rounds. The conclusion of the note is rather simple – today’s euphoric borrowing on margin to buy stocks is reminiscent of past bubbly equity market periods (see here for more). The note reviews commentary from the 1999 & 2007 periods and compares it to what’s being said today. So, are we in a 2007 or 2000 type environment? Yes. I would say we are given that the data is confirming the same sort of market trends and debt trends. But the question is what’s the trigger? The market is kind of like a Jenga set at this stage in the cycle." Continue reading →

Continue ReadingPeople Are Using Borrowed Money To Buy Stock Like It’s 2007 Or 1999

Federal Debt: Frozen for Two Months. A Miracle!

"How is is it that the official debt of the United States government has been frozen at $16,699,396,000,000.00 for over 70 days? The Secretary of the Treasury is not saying. He merely reports that this is the case. 'Trust me.' Congress is trusting him. The Media are trusting him. The voters are trusting him. How does the U.S. government deal with an annual deficit of at least $600 billion, yet the official, on-budget debt does not change for over two months? Inquiring minds want to know. Actually, they don’t want to know. This willingness to believe in miracles is part of the national pastime: 'kick the can.'" Continue reading →

Continue ReadingFederal Debt: Frozen for Two Months. A Miracle!

Treasury’s Lew: Congress Needs to Pass Debt Limit

"Congress needs to raise the debt limit and take away the 'cloud of uncertainty' about the nation's ability to pay its bills, Treasury Secretary Jack Lew said. 'The fight over the debt limit in 2011 hurt the economy, even though, in the end, we saw an extension of the debt limit. We saw confidence fall, and it hurt the economy. Congress needs to do its job. It needs to finish its work on appropriation bills. It needs to pass a debt limit,' Lew said on NBC's Meet The Press. Senior lawmakers on Capitol Hill are trying to come up with must-do legislation to keep federal agencies running after Sept. 30 and prevent the possibility of a government shutdown." Continue reading →

Continue ReadingTreasury’s Lew: Congress Needs to Pass Debt Limit

The Soviet Setup is Now the China Setup

"The most lucrative trade of 90's Soviet period was obtaining a bank loan (there were only state banks). Which was easy as long as you paid bank manager 20% straight in the pocket. It was up to you what you did with the 80%. Fast forward to today's China. Special investment financing vehicle and state bank loan architecture has been in place for a long time and not just since 2008. As you can imagine such vehicles are predominantly used to skim a little bit off the top. Operator gets rich, lender gets rich, party official gets rich. 2008-2009 RMB 4trn stimulus is the payday system the operators were waiting for, a once in a lifetime chance." Continue reading →

Continue ReadingThe Soviet Setup is Now the China Setup

Wall Street: The Next Fed Chief Should Keep the Presses Running

"'Monetary policy has little scope to stimulate the economy,' Summers suggested in September 2008, 'given how low interest rates already are and the problems in the financial system.' Since then, the Fed has bought $2.3 trillion in Treasury and mortgage bonds. It also increased the money supply to unprecedented levels. In contrast, the other front-runner, Federal Reserve vice chair Janet Yellen, said back in March she would not taper anytime soon. CNBC’s poll of Wall Street analysts indicated they believed Yellen would better manage a financial crisis. Translation: She is more likely to keep the presses hot." Continue reading →

Continue ReadingWall Street: The Next Fed Chief Should Keep the Presses Running

US blows out $16.7 trillion debt limit

"The US Treasury has already exceeded the federal legal borrowing limit of $16.7 trillion in May. That signals the main structural problems remain unresolved putting at risk the fragile recovery. The country’s outstanding public debt is already $38.82 million above the statuary debt ceiling and now at $16,738,220,000,000.00, according to Treasury data. In the debt ceiling debate two years ago, lawmakers and the White House battled for months before Obama signed an increase into law on Aug. 2, 2011, the day the Treasury Department warned that US borrowing authority would expire, Reuters reports." Continue reading →

Continue ReadingUS blows out $16.7 trillion debt limit

Obama, Republicans gear up for bruising U.S. budget fight

"Another dramatic showdown between Republicans and the White House over federal spending looks inevitable this fall, with scary talk of government shutdowns and default on government debt. While Capitol Hill analysts are not predicting catastrophe, they have several reasons to worry that the conflict just weeks away could be even worse than usual. Obama and Congress face two fiscal deadlines in quick succession. They must agree by October 1 on a stop-gap measure to keep the government funded or face a shutdown. And in early November, Congress must raise the legal limit on the country's borrowing authority or risk an unprecedented default." Continue reading →

Continue ReadingObama, Republicans gear up for bruising U.S. budget fight

James Corbett with Sibel Edmonds: Gladio Revisited

"As one of the most thoroughly-documented examples of a decades-long program of officially-sanctioned false flag terror, Operation Gladio remains a woefully under-reported piece of the War on Terror puzzle. Today we go behind the trite summarizations of this program to look at it in-depth, examine its roots, and discover how it is continuing to operate right through to the present day." Continue reading →

Continue ReadingJames Corbett with Sibel Edmonds: Gladio Revisited

Seven killed, hundreds injured in new round of dueling protests in Egypt

"At least seven people were killed and hundreds wounded in scattered violence across Egypt during mass rallies for and against the army’s overthrow of Islamist President Mohamed Mursi, who was placed under investigation for murder. With hundreds of thousands taking to the streets on Friday, the new bloodshed deepened the turmoil convulsing the Arab world’s most populous country, and could trigger a decisive move by the military against Mursi’s Muslim Brotherhood. The country of 84 million people forms a bridge between the Middle East and North Africa and receives $1.5 billion a year in mainly military aid from Washington." Continue reading →

Continue ReadingSeven killed, hundreds injured in new round of dueling protests in Egypt