Archive for August 2020
The Fed’s Big Lie
Insanity is doing the same thing over and over again, but expecting different results. Federal Reserve Chairman Jerome Powell announced on Thursday that the Fed will now shift its focus from hitting inflation targets and instead prioritize closing “unemployment shortfalls”. This gives it the aircover to do “whatever it takes” until the unemployment rate is…
In The Long Run… We Are All Alive
In 1976, economist Herbert Stein, father of Ben Stein, the economics professor in Ferris Bueller’s Day Off, observed that U.S. government debt was on an unsustainable trajectory. He, thus, established Stein’s Law: “If something cannot go on forever, it will stop.” Stein may have been right in theory. Yet the unsustainable trend of U.S. government…
America’s Coming Double Dip
www.zerohedge.com Soaring financial markets are blithely indifferent to lingering vulnerabilities in the US economy. But the impact of consumers’ fear of COVID-19 on pandemic-sensitive services are unlikely to subside, undermining the case for the uninterrupted recovery that investors seem to expect. The double dip is not a dance. It is the time-honored tendency of the US economy to…
What Are You Going To Do As Our Money Dies?
Central banks are killing our currency to protect the already-rich… In our recent article It’s Time To Position For The Endgame, Chris Martenson explained how the US Federal Reserve and its sister central banks around the world have been engaged in the largest and most egregious wealth transfer in all of history — one that has…
“Stand Down!” – How One Navy Seal Killed A Multi-Billion Hedge Fund
It has now been revealed that the fall of Dan Kamensky’s Marble Ridge Capital was at the hands of a former Navy SEAL, turned trader. Joe Femenia, the head of distressed-debt trading at Jefferies Financial Group, is the man who was outlined in court filings as having taped conversations that brought the hedge fund down, according…
World’s Biggest Sovereign Wealth Fund Lost $21 Billion In First Half 2020
Readers may recall in April that Norway’s sovereign wealth fund, the world’s biggest, posted record losses for 1Q20 as the virus pandemic wreaked havoc on global markets. For more color on the losses, the $1.15 trillion sovereign wealth fund posted a $21.27 billion loss (-3.4%) over the first half of 2020. Citing “major fluctuations” in equity markets, Deputy CEO of Norges Bank Investment Management Trond Grande said…
After “Extraordinary Event” Crushes Traders, Credit Suisse Forced To Accelerate “Berserk” NatGas ETN
Following yesterday’s “berserk” price action in Credit Suisse’s 3x Inverse Natural Gas ETN, the Swiss banking giant has been forced to do something about it. In recent years the price hadn’t risen above $600, but it advanced in each of the past five sessions with percentage increases of 35%, 34%, 29%, 223% and 400%, and closed…
S&P Jumps Above Record High After $9 Trillion Global Liquidity Tsunami
$9 trillion in additional global liquidity (from $79 to almost $88 trillion since the March lows)… Are we Drowning in liquidity? Pushed the S&P above its prior record closing high (3386.15 from 2/19/20) but could not hold it… Because it sure isn’t being driven by fun-durr-mentals… Source: Bloomberg The recent Momo/Value rotation is over… Source:…
Central Bank Balance Sheets To Hit $28 Trillion Next Year
As noted earlier, silver is crashing as much as 15% today, a plunge which if it had spread to stocks would prompt a panic at the Fed and an injection of at least several trillion. The fact that precious metals do not need a rescue from the Fed – and in fact anything the Fed does do will only…
Liquidation: Stocks, Bonds, Bullion, & Bitcoin All Puked
Well that really did escalate quickly… Today had the feeling of ‘liquidation’ (similar to March) as big-tech stocks (growth/value rotation), bitcoin, bonds, and bullion were all dumped unceremoniously. While Nasdaq futs were bid along with everything else on Putin’s vaccine headlines overnight, it didn’t take long for the growth/value rotation pressure to kick in and send…