One of the Fed’s congressionally charted objectives is to promote stable prices for the goods and services we all purchase. Investors have been lulled to sleep for over 20 years by “price stability.” As a result, few investors have an appreciation for how inflation can impact their investments. Read More.
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Category: Bear Market News
Rather than right the ship, the “easy fix” is to distribute “free money”–not just to billionaires and corporations but to everyone. The system of collecting taxes and distributing the dough is a zero-sum game: each dollar of tax revenue paid by someone and given to someone else is one dollar that the taxpayer will no longer have to save or spend. Meanwhile, the recipient received a dollar that would not have been available without taxes. Read More.
069/24/20 – Tyler Durden: In Unprecedented Monetary Overhaul, The Fed Is Preparing To Deposit “Digital Dollars” Directly To “Each American”
Over the past decade, the one common theme despite the political upheaval and growing social and geopolitical instability, was that the market would keep marching higher and the Fed would continue injecting liquidity into the system.Read More.
But, but, but… fiscal stimulus… Powell Put… v-shaped recovery… vaccine… Nasdaq is leading the tumble but the S&P 500 has just hit a 10% drop from its highs – entering correction… Read More.
09/24/20 – Shalini Nagarajan: The US is facing a dollar collapse by the end of 2021 and an over 50% chance of a double-dip recession, economist Stephen Roach says
The US dollar could collapse by the end of 2021 and the economy can expect a more than 50% chance of a double-dip recession, the economist Stephen Roach told CNBC on Wednesday. The US has seen economic output rise briefly and then fall in eight of the past 11 business-cycle recoveries, Roach said. Read More.
In an ephemeral world, few things survive. I am not talking about species or human beings whose existence on earth is also transitory. Instead I am referring to social and financial systems which are now coming to an end. Read More.
09/23/20 – Stephanie Landsman: Economist Stephen Roach issues new dollar crash warning, sees double-dip recession odds above 50%
Evidence supports ‘seemingly crazed idea’ that dollar will crash: Stephen Roach
Economist Stephen Roach warns next year will be brutal for the dollar. Not only does he see growing odds of a double-dip recession, the Yale University senior fellow believes his “seemingly crazed idea” that the dollar would crash shouldn’t be so crazy anymore. Read More.
09/22/20 – Kevin Stankiewicz: Billionaire Barry Diller calls stock market ‘great speculation,’ urges everyone to save cash
Billionaire media mogul Barry Diller on Tuesday urged investors to maintain sizable cash positions following the stock market’s robust rally from coronavirus-induced lows in late March. “Personally, and professionally, every nickel you can, keep it … wherever it’s banked,” the chairman of both Expedia and digital media group IAC said on CNBC’s “Squawk Box.” Read More.
Look, I’m a systems guy. I think in systems terms. You should as well. Why? Because we’re entering a period of time when the major systems that have supported humanity are going to fail. Or, put more accurately: they are already failing. As just one example, our monetary system delivers outsized gains to the already stupendously-wealthy while piling up massive debts on the backs of we citizens, both born and yet-to-be-born. Read More.
09/21/20 – Michael Snyder: Why Is The Mainstream Media Signaling That A Much Larger Stock Market Decline Is Coming?
Why would the mainstream media want all of us to believe that stock prices are about to fall dramatically? Just like we witnessed earlier this year at the beginning of the pandemic, the corporate media is full of reports that seem to imply that it is a virtual certainty that stock prices are going to go even lower. Read More.
Thanks to the shutdowns, economic activity on main street is at a standstill. Government, corporate, and personal debt is skyrocketing. Yet, the stock market is in a mania. Has the stock market become out of touch with reality, and if so, what are the consequences of that? Read More.
This is why inflation will rip everyone’s faces off: production will continue to stagnate no matter how many trillions the Federal Reserve prints and throws around. This is how market capitalism is supposed to work: consumers decide (for whatever reason) to buy more toilet paper. This increase in demand strips the shelves of TP and pushes the price up as demand exceeds supply. Read More.
Last month, the Federal Reserve moved its inflation goalposts. Is it setting us up for a return to the inflation of the 1970s? During a speech at Jackson Hole, Federal Reserve Chairman Jerome Powell announced new policy guidance for how it addresses price inflation. In the past, the central bank has targeted a 2% inflation rate as measured by CPI. Now it will shift to “average inflation targeting.” Read More.
There was a tremendous amount of volatility in the stock market this week with the NASDAQ entering correction territory and then rebounding. Is this just a blip on the radar? Or is the biggest bubble ever running out of steam? Read More.
In Energy & Gold’s latest conversation with 321gold founder Bob Moriarty we discuss why the coming US election could result in destabilization that could potentially be catastrophic. We also discuss the Federal Reserve and its recent commitment to creating inflation, as well as the potential for very high, or even hyper-inflation. Read More.
The Federal Reserve has potentially had the most memorable year in its more than a century–long history. What started out as a year of “Will they or won’t they cut interest rates?” blossomed into a time of slashing rates to near zero, unleashing unlimited quantitative easing, purchasing corporate and municipal bonds, and growing its balance sheet to a record high. Now, as the economic consequences from the covid-19 pandemic linger, the Fed has taken advantage of the crisis to modify its policies to be more expansionary—which will inevitably blow bubbles and wreak havoc on households everywhere. Read More.
There can be little doubt that macroeconomic policies are failing around the world. The fallacies being exposed are so entrenched that there are bound to be twists and turns yet to come. Read More.
I am experiencing déjà vu. In 1988, as a young and inexperienced investor, I met a transportation analyst from Nomura. He explained how a midsized and heavily indebted railroad company owned land in Tokyo Bay. It had the potential to build a giant condominium complex on this land, thereby diversifying into the highly profitable real estate market. Read Moer.
Central banks, China, Financial crisis, Global depression, Global economy, Recession
We have been watching, with disbelief and bemusement, how the “recovery-narrative” has been touted in the financial media and among some economists and analysts. Categorically, an economic recovery is a period of expansion, where we eventually exceed the previous peak in employment and output. There’s no such thing coming (anytime soon). Read More.
Blackstone’s market maven Byron Wien sees a significant correction risk. He warns of rising speculation in the stock market, the vulnerable state of the U.S. economy and possible turmoil in the course of the presidential election. He also shares his views on where he spots opportunities for patient investors. Read More.
08/07/20 – Joe Carson: “Averaging” Inflation Does Not Eliminate The Flaws In The Fed’s Policy Approach; It Compounds Them
Federal Reserve has spent over a year conducting a review of its monetary policy strategy, tools, and communication process. The review was an academic re-assessment of an academic experiment called inflation targeting. The new framework of inflation averaging is an extension of the inflation-targeting regime, with a longer timeline. Read More.
Misguided lockdowns have destroyed the global economy and the impact is likely to last for years. The fallacy of the “lives or the economy” argument is evident now that we see that countries like Taiwan, South Korea, Austria, Sweden, and Holland have been able to preserve the business fabric and the economy while doing a much better job managing the pandemic than countries with severe lockdowns. Read More.
Asset prices could be on the cusp of a sharp collapse known as a “Minsky moment,” and may retest lows last seen in March, according to Ron William, market strategist and founder of RW Advisory. Read More.
Last week we showed that following the July 31 “fiscal cliff”, which saw the end of the $600 weekly emergency unemployment benefit and as a result, weekly unemployment insurance benefit payments were cut in half, from $25BN pre-July 31 to just over $10 BN after… Read More.