investment

China’s Property Bubble – Why Is ’60 Minutes’ Telling the Tale?

"Western Money Power doesn't have the same control in China. China has a Western system but ultimately the ChiComs are the ones that run it. And maybe they have run it into the ground. Either it was planned or it was not. Or a combination of both. But we wrote that when the property bubble burst, if it did burst (as all bubbles must) then the Chinese Communist Party itself would be in trouble. So listen to this video snippet, excerpted above: the part where one of the largest builders of homes in China (and thus the world) is interviewed. He seems paralyzed by fear, and says a housing bust would be a disaster. He even predicts regime change." Continue reading →

Continue ReadingChina’s Property Bubble – Why Is ’60 Minutes’ Telling the Tale?

Ron Paul: The Sequester ‘Crisis’ And What Should Be Done

"The United States did not collapse last Friday when the package of spending reductions known as 'sequestration' went into effect. The financial markets hardly blinked, as they have come to be more skeptical about these periodic government-hyped 'crises.' What had been portrayed as a drastic reduction in government spending was merely a decrease in the projected rate of increase in government spending over the next decade. Under sequestration, government spending increases by $2.4 trillion over the next 10 years rather than $2.5 trillion without it. So we are speeding toward collapse at only 100 miles per hour instead of 110 miles per hour." Continue reading →

Continue ReadingRon Paul: The Sequester ‘Crisis’ And What Should Be Done

So You Want To Short The Student Loan Bubble? Now You Can

"SecondMarket Holdings, the private-market securities trading firm best known for allowing numerous overzealous fans to buy FaceBook at moronic valuations, on Monday 'will roll out a platform allowing lenders to issue securities backed by student loans directly to investors.' Why is SecondMarket doing this? The same reason Lloyd Blankfein was selling Abacus (and all those other synthetic MBS CDOs) to clueless yield chasers all across Europe and Asia: yield chasing and career risk. The justification is also the same: making a market." Continue reading →

Continue ReadingSo You Want To Short The Student Loan Bubble? Now You Can

The Bond Bubble Is About to Burst

"The United States is shown in the following chart. Central banks have aided the government in managing to keep rates low despite big deficits, by buying the debt. Balance sheets of the world's central banks are growing rapidly to support government deficits while forcing rates to low levels. It is a bubble. When you buy Treasury bonds, you are putting your fate in the hands of the government, expecting it to give back your purchasing power and a reasonable amount of interest to you, in return for the use of your money. I believe we are headed for a serious loss of confidence in the value of the dollar, which will be accompanied by a burst of the Bond Bubble." Continue reading →

Continue ReadingThe Bond Bubble Is About to Burst

Fed’s Evans: Keep Easing and Economy Will Hit ‘Escape Velocity’ by 2014

"The U.S. economy should emerge from the doldrums next year if the Federal Reserve sticks to its super-easy monetary policies, a top Fed official said on Thursday, even as he warned that cutting back too early would be a 'big mistake.' The Fed is buying $45 billion in Treasuries and $40 billion in mortgage bonds per month, its third round of 'quantitative easing,' and has said it will continue the purchases until it sees substantial improvement in the labor market outlook. 'I don't think we are anywhere near the end of the program,' Chicago Federal Reserve Bank President Charles Evans told reporters after speaking to the CFA Society of Iowa here." Continue reading →

Continue ReadingFed’s Evans: Keep Easing and Economy Will Hit ‘Escape Velocity’ by 2014

Michigan Governor Declares Emergency in Detroit; Grabs Power from Locals

"Michigan Governor Rick Snyder plans to name an emergency manager to handle Detroit’s fiscal crisis, stripping power from local officials. Detroit has a budget deficit of about $327 million and more than $14 billion in long-term obligations, reports Bloomberg. Starting later this month, a manager will have the power to cancel labor contracts, cut spending and sell assets. This all is, of course, an attempt to prevent what could be the largest U.S. municipal bankruptcy. Snyder will act to protect Detroit's debt holders. However, the best thing that could happen to Detroit is for the city to declare bankruptcy and start fresh, rather than a Motown version of eurozone-type austerity." Continue reading →

Continue ReadingMichigan Governor Declares Emergency in Detroit; Grabs Power from Locals

Bernanke’s Subsidies: Houses and Cars

"What happens when the Federal Reserve promises to create $1 trillion in fiat money per year, and then starts by buying long-term Treasury bonds and Fannie/Freddie bonds? Interest rates go up. Wait a minute. Weren’t interest rates supposed to go down? Yes, they were. That is what Keynesian economics teaches. Problem: Keynesian economics is wrong. But Bernanke and the FED will move forward, inflating on a scale undreamed of prior to 2008. That is the only trick it has up its collective sleeve. 'When in doubt, inflate.' That is alpha and omega. That is the law and the prophets. Lock in that mortgage rate." Continue reading →

Continue ReadingBernanke’s Subsidies: Houses and Cars

Japan seen nominating “deflation basher” as BOJ head

"Japan's prime minister is likely to nominate an advocate of aggressive monetary easing - Asian Development Bank President Haruhiko Kuroda - as the next central bank governor to step up his fight to finally rid the country of deflation. The yen fell on the nomination news to a 33-month low and the yield on five-year government bonds hit a record low as markets moved to factor in bolder monetary policy. Kuroda has long criticized the BOJ as too slow to expand stimulus, and is expected to push for more radical efforts to achieve a 2 percent inflation target set in January." Continue reading →

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Upcoming European Financial Trading Tax: “All Markets, All Actors, All Products”

"The tax would be owed no matter where the trade took place, as long as a European security or European institution was involved. If a French bank bought shares in an American company on the New York Stock Exchange, the tax would be owed. To get out of the tax, a financial institution would have to do more than simply move its headquarters out of the 11 countries that now plan to impose the tax. It would also have to forgo serving clients in any of those countries and trading in securities or derivatives from any of the countries. Officials are confident that no major institution will be willing to forsake such large markets as France, Germany, Italy and Spain." Continue reading →

Continue ReadingUpcoming European Financial Trading Tax: “All Markets, All Actors, All Products”