Government Sponsored Mortgages Go Full Retard: 2008 Redux-Squared

by David Kranzler
Investment Research Dynamics

This is a note to me from one of my Short Seller Journal subscribers:

As a 20 year real estate agent, investor and wholesaler in Atlanta, I’d like to add my comment to your analysis. I totally agree that things are not what they seem to be in housing. I despised the NAR [National Association of Realtors] when I was a member because of their “it never rains” housing reports and their confiscatory attitude toward realtor dues and their subversive political activity. I eventually gave up my agent’s license when they started forced PAC contributions in 2010. Edward Pinto of the American Enterprise Institute told me that NAR is spending $55 million a year for lobbying on housing issues. The NAR never met a loan they did not like.

Continue Reading at InvestmentResearchDynamics.com…

Did Brexit Kill the Oil Price Rally?

by Nick Cunningham
Oil Price

Oil prices fell again on Monday after last week’s rout following the Brexit vote, deepening the losses and killing off a multi-month oil price rally.

There is quite a bit of debate around how lasting the negative effects of the Brexit result will be for crude oil. On the one hand, there has been no change to the physical oil market. The global economy continues to hum along, albeit at an unimpressive pace. Billions of people continue to fuel up their cars, factories continue to operate. In other words, not much has changed.

Although the UK ranks as a top five global economy, a Brexit won’t materially affect the supply/demand balance for crude oil, even if a withdrawal from Europe turns out to be hugely negative for economic growth. Goldman Sachs looks at the numbers:

Continue Reading at OilPrice.com…

Brexit: The Big Picture – Mike Maloney

from GoldSilver (w/ Mike Maloney)

Video Description…

European Dead-Cat-Bounce Dies – Big Banks End Lower

from Zero Hedge

Well that didn’t last long. With hopes of a face-ripping ride higher this morning as Draghi jawboning lifted bank stocks and Cable, the bounce was nothing but an opportunity for sellers to escape at better prices. While Deutsche eked out a tiny gain, RBS, Unicredit, Credit Suisse, and UBS all tumbled to end the day red…

[…] And Cable has rolled over notably… back below 1.33!

Continue Reading at ZeroHedge.com…

The 2016 U.S. Election: A Possible Repeat of the 1964 Election?

by Prof. Rodrigue Tremblay
Global Research

I would remind you that extremism in the defense of liberty is no vice. And let me remind you also that moderation in the pursuit of justice is no virtue. Barry Goldwater (1909-1998) US Senator (R-Arizona) and 1964 Republican Presidential candidate, (in his Acceptance speech as the 1964 Republican Presidential candidate, in San Francisco, July 16, 1964)

Sometimes, I think this country would be better off if we could just saw off the Eastern Seaboard and let it float out to sea. Barry Goldwater (1909-1998) US Senator (R-Arizona) and 1964 Republican Presidential candidate, (in a December 1961 news conference)

We’re going to hit them and we’re going to hit them hard. I’m talking about a surgical strike on these ISIS stronghold cities using Trident [nuclear] missiles. Donald Trump (1946- ), Republican presidential candidate, (in an interview with ‘Meet the Press’, NBC News, August 9, 2015)

Continue Reading at GlobalResearch.ca…

Unusual Central Bank Criticism Isn’t Good for Solvency or the Economy

by Daily Bell Staff
The Daily Bell

Central Banks Worry About Engaging World Markets After ‘Brexit’ … As global markets reel after an establishment-rattling vote by Britain to sever ties with Europe, investors are again expecting central banks to ride to the rescue. And that may be the problem. – New York Times

Yesterday, we wrote about a new dominant social theme emerging as a result of Brexit.

The propaganda seemed to be resolving itself into Globalism vs. Populism.

Brexit supporters were being characterized as populists. “Remainers” were in the globalist camp.

In this New York Times article, we can see this theme repeated clearly.

Continue Reading at TheDailyBell.com…

Brexit is What Happens When the Pie is Shrinking

by Charles Hugh Smith
Of Two Minds

This process of withdrawal into the relative safety of internally cohesive groups and group identities is intrinsically messy in globalized, multicultural societies.

A great many narratives are drifting around the Brexit pool: a return to sovereignty, class war, “controlled demolition,” nothing-but-another-political-Kabuki- spectacle, end of the European Union, etc.

I think it boils down to something much simpler: the pie is shrinking, and the illusion that it’s about to start growing has been shattered. For many communities in the developed world, the pie started shrinking in the 1970s, and has been shrinking (despite the narrative of “45 years of strong growth”) since then.

Labor’s share of the GDP has been declining for 45 years. Occasional blips higher during debt-fueled bubbles quickly fade when the bubble du jour pops, and the decline of labor’s share of the economy resumes its trendline decline.

Continue Reading at OfTwoMinds.com…

The End Game of Bubble Finance – Political Revolt

by David Stockman
David Stockman’s Contra Corner

During Friday’s bloodbath I heard a CNBC anchor lady assuring her (scant) remaining audience that Brexit wasn’t a big sweat. That’s because it is purportedly a political crisis, not a financial one.

Presumably in the rarified canyons of Wall Street, politics doesn’t matter much. After all, when things get desperate enough, Washington caves and does “whatever it takes” to get the stock averages moving upward again.

Here’s a news flash. That’s all about to change.

The era of Bubble Finance was enabled by a political abdication nearly 50 years ago. But as Donald Trump rightly observed in the wake of Brexit, the voters are about to take back their governments, meaning that the financial elites of the world are in for a rude awakening.

Continue Reading at DavidStockmansContraCorner.com…

More Updates from Martin Armstrong – 2016.02.27

by Martin Armstrong
Armstrong Economics

Hillary & the Email Conspiracy that even Taints Obama

Hollande Explains the Elitist Perspective & Why EU is So Out of Touch

Have Scottish Politicians Lost Their Minds?

Brussels Proposes Ending Any Right to Vote to Exit EU

Market Talk — June 27, 2016

Continue Reading at ArmstrongEconomics.com…

Greenspan Warns a Crisis is Imminent, Urges a Return to the Gold Standard

from Zero Hedge

On Friday afternoon, after the shocking Brexit referendum, while being interviewed by CNBC Alan Greenspan stunned his hosts when he said that things are about as bad as he has ever seen.

“This is the worst period, I recall since I’ve been in public service. There’s nothing like it, including the crisis — remember October 19th, 1987, when the Dow went down by a record amount 23 percent? That I thought was the bottom of all potential problems. This has a corrosive effect that will not go away. I’d love to find something positive to say.”

Strangely enough, he was not refering to the British exodus but to America’s own economic troubles.

Continue Reading at ZeroHedge.com…

Brexit Vote So Overwhelming It Overcame Fraud. Michael Rivero – June 27, 2016

from Talk Digital Network

Video Description…

The Latest Updates from Mike ‘Mish’ Shedlock – 2016.06.27

by Mike ‘Mish’ Shedlock
Mish Talk

Clear Response to Brexit Emerges: Take Your Time, But Move Fast!

UK Rate Cut Coming, No Hikes Expected for 5 Years: Osborne Stupidity Revisited

Yuan Dips 1.57% in 3 Days, Approaches 2016 Lows

30-Year and 10-Year Treasury Yields Approach Record Lows

Services PMI Remains Weak, Markit Chief Economist Estimates 1% GDP Growth

Continue Reading at MishTalk.com…