by Dr. Jeffrey Lewis
Silver Coin Investor
The top two questions people ask me when they learn that I’m a northern California surfer, are
1) whether I’m afraid of sharks or, 2) isn’t the water cold? The answer is yes to both.
Of course I’m afraid of natural born killers the size of small cars lurking beneath the murky surface in the ocean while I am floating on a thin layer of fiberglass wearing what might as well be a wounded seal suit three quarters of a mile from the shore. Who wouldn’t be?
So, why do it? Because the odds are very low that I will be ‘tasted’. Plus I do it for sport, not for livelihood. Although, based on most people’s fear, you would think that the risk was much higher.
Continue Reading at Silver-Coin-Investor.com…
by Karl Denninger
You have to love the way the media puts a spin on nonsense like this.
Snapchat, the photo-messaging app raising cash at a $15 billion valuation, probably isn’t actually worth more than Clorox or Campbell Soup. So where did investors come up with that enormous headline number?
Here’s the secret to how Silicon Valley calculates the value of its hottest companies: The numbers are sort of made-up.
Give me a break. These are not clean numbers or “investments.” They are typically loaded up with all sorts of measures that nobody gets in a real market — such as multiple layers of protection against the firm not meeting those valuations in the future.
Continue Reading at Market-Ticker.org…
from Grant’s Interest Rate Observer
Mar. 25, 2015 – 4:41 – James Grant of Grant’s Interest Rate Observer discusses risk in the markets and the Fed.
by David Kranzler
Investment Research Dynamics
The real enemy of this country is not the Russians or the Islamic population – it’s the neoconservatives who control your Government.
Wikipedia erroneously attributes the origins of “neoconservatism” to the United States. In fact, it was a political philosophy that has its roots in Israel. It’s essence: “kill your enemy and spare no expense.” It’s a political movement that gained momentum in the U.S. Government, I believe, starting with Henry Kissinger’s influence. Perhaps there’s earlier roots. It’s true substance is nothing short of unbridled political and financial terrorism. However, it was during the Bush II administration the the neoconservatives gained a stranglehold on the most important avenues of power inside the Government.
Continue Reading at InvestmentResearchDynamics.com…
by Chris Hamilton
If the “markets” are rigged and economies divorced from true market valuations, then what (if anything) could trigger a recoupling of reality to the record setting flashing numbers presently offered by the “market” facade? My best guess is decelerating global credit and debt creation (and a rotation from private to government debt creation) is the harbinger progressively pushing the financial rigging to its ludicrous conclusion. The rigging isn’t likely to stop, but the loss of belief and confidence in these numbers (along with economic mismanagement based on these faulty signals) is soon to force market resets and revaluations of everything. This will culminate in a global depression of unknown duration and depths until balance is restored.
Continue Reading at SRSRoccoReport.com…
from Zero Hedge
Last quarter, when we showed what was “The Reason For The “Surge” In Q3 GDP”, some were shocked to learn that in the quarter in which US GDP posted a 5% surge, it was none other than Obamacare – a mandatory tax according to the Supreme Court which has the benefit of flowing through the US income statement – which contributed the bulk of this upside.
[...] We are happy, and we use the term loosely, that history has just repeated itself, and now that the final number is available, what we wrote a month ago in “Here Is What Americans Spent Their “Gas Savings” On” has just been confirmed, and as the chart below shows, in the final revision of Q4 GDP, while virtually every other category of household spending was largely unchanged or revised lower, it was Healthcare, of which Obamacare was the biggest contributor on the margin, which saw an unprecedented surge in total spending, from $1.858 trillion to $1.871.9 trillion just between the second and final GDP revisions: a bump of $13.9 billion, without which Q3 GDP would have grown well below 2%!
Continue Reading at ZeroHedge.com…
by Mike Meyer
Good day. And welcome to Friday morning. It’s going to be a collaborative effort this morning, so in keeping with tradition, let’s kick off this TGIF with Frank Trotter.
“Saint Louis, Missouri – Empathetic Sales. My corporate MacBook Air has been barking a warning at me for some time now. “Service Battery” says the ominous message. Clicking through doesn’t add much more in terms of explanation other than get thee to an Apple Store. Suspecting the urgency I have now procrastinated over a year before taking action but on Thursday headed over to the Galleria Mall that I can see from my office at my appointed time with the Genius Bar. Waiting for a sufficiently genius person to be ready I listened to the conversations around me. “Yah, that happens to me too.” “I really hate it when it does that.” “Oh man, I get that all the time.” We had studied Apple’s “empathetic sales” technique a couple years ago and found it fascinating. The sales team can draw a client or prospect in as they feel like they are on your side of the table all the time, but of course there is a gentle nudge in the desired direction of a sale along the way. Excellent technique that is well executed. “Service Battery” as suspected turns out to be code for “Replace Battery” – very empathetic indeed.
Continue Reading at DailyPfennig.com…
by Mark O’Byrne
Geopolitical risk has escalated sharply this week after the Saudi bombing of Yemen and the U.S. House of Representatives voting overwhelmingly for the President to provide offensive weaponry to the Ukrainian army.
Both are likely to result in sharp escalation in tensions between NATO and Russia and see an intensification of war in Eastern Europe and the possibility of a regional war in the Middle East.
The move is concerning as European countries who have a real interest in maintaining stability in Ukraine – Germany and France, who are Europe’s de facto leadership, and Russia – have already restored a degree of stability through the Minsk agreement. Germany and France pointedly excluded the U.S. from the process.
Continue Reading at GoldGore.com…
by Andrew Hoffman
By my estimation, the “official starting point” of the government’s commandeering of financial markets was September 17, 2001, when stocks were blatantly supported upon re-opening after the 9/11 attacks. Since then, the level of manipulation has gradually expanded – often, via PPT “trial balloons” following dramatic events like the Enron and Worldcom bankruptcies a year later. All along, the gold Cartel was doing its regular, day-to-day thing (albeit, less maniacally than today); but regarding stocks, the PPT – officially, the “President’s Working Group on Financial Markets” – was still utilized more for “emergency situations” than “day to day operations.” The 2008 crisis altered that status quo forever – although, as I have discussed ad nauseum, it undoubtedly took “TPTB” by surprise. And thus, their immediate reaction more closely resembled a “deer in headlights” than an orchestrated manipulation machine. Hence, the extremely sloppy, public debate regarding TARP; the collapse of major financial firms like Lehman Brothers, AIG, and Fannie Mae; and of course, plunging markets despite their best manipulative efforts.
Continue Reading at MilesFranklin.com…
by Nate Rifkin
Laissez Faire Books
“Place the stick under your tongue,” the exhibitor said to me.
I had a momentary flashback to being drug-tested while applying for a part-time job bagging groceries. They had me swab cells from my cheek, pretty much without warning. At the time, I took it as a sign the interview was going well.
But that was over four years ago. The current circumstances were slightly different, so I snapped out of my reverie.
Continue Reading at LFB.org…
by Dan Steinhart, Managing Editor, The Casey Report
David Stockman needs no introduction, but I’ll give him one anyway. He’s a former US Congressman who, upon assuming responsibility as Ronald Reagan’s budget director in 1981, became the youngest presidential cabinet member of the 20th century.
Following a 20-year career on Wall Street, David is now an outspoken critic of government stupidity. He argues on behalf of outdated notions like a balanced budget, free markets, and for the government to just plain leave us alone.
Below, David shares a scathing financial analysis of Tesla… and that’s putting it nicely. He argues that Elon Musk’s company is a crony capitalist creation that owes its very existence to government handouts and bailouts.
Continue Reading at CaseyResearch.com…
As market volumes explode, even teenagers are buying
by Laura He
HONG KONG (MarketWatch) — Some say that when the average “mom-and-pop” retail investors get back into the stock market, it could be time to get out. But what about when even teenagers start buying?
China has entered a new stock frenzy, like something out of America in the Roaring 20s or the dottiest days of the dot-com bubble, with trading volumes continuing to push to new record highs.
On Wednesday, combined trading on the Shanghai and Shenzhen markets hit 1.24 trillion yuan ($198 billion), the seventh straight session in which turnover surpassed the 1 trillion yuan mark. By comparison, the New York Stock Exchange typically saw $40 billion-$50 billion a day in trading during the first two months of this year.
Continue Reading at MarketWatch.com…