Bubbles End; Eventually the Can Explodes

No matter what politicians promise, bubbles end at some point. Kick the can… kick the can… kick the can… It’s a game Western politicians and Central Bankers play with incredible skill. Unfortunately, economic reality can be delayed, but not completely denied. The “can” will one day go off a cliff—or slam into a wall—and the day of reckoning will be upon us. History shows those days often come in an instant—when no one expects. Recently, Phoenix Capital Research wrote about Read more […]

Stock Market Debt: Beware the Bear!

A picture of stock market debt is worth 1000 words—I’ll be well below that. The markets are hitting new highs. Is it because the economy is performing so well, or is there another explanation? Check out the amount of borrowed money (the red measurement) that has accompanied the recent ascent to new highs (the blue line). [See also, “Does Stock Market Euphoria Mean A Better Economy? Americans Aren’t Buying It.”] All of the Fed’s “funny money” has been doing its primary job: Read more […]

Wall Street Journal: “Bubble? What Bubble? That’s just ‘froth.’”

Can the propaganda get more outrageous? I normally consider the Wall Street Journal one step better than CNBC, but they have not gone into full bubble-cheerleader mode, as is evidenced in this headline: “There’s No Housing Bubble, but Places Like California Starting to Look Frothy.” Froth! That was exactly the kind of rhetoric used a few years ago to deny that a housing crash was on the way. As the Guardian recently recalled: It was argued that financial innovation – manifested in the alphabet Read more […]

Dear Tom Perkins: Why Comparing Hatred Of The Rich To Nazism Is Misguided

Tom, I had never heard of you before I read about you at Newser: A billionaire venture capitalist has sparked a furor with a worried letter to the Wall Street Journal. In the brief piece, Tom Perkins notes “the parallels of fascist Nazi Germany (and) its war on its ‘one percent,’ namely its Jews, to the progressive war on the American one percent, namely the ‘rich.'” He continues: “From the Occupy movement to the demonization of the rich embedded in virtually every word of our local newspaper, the Read more […]

Jim Grant Exposes The 1/10th Of The 1 Percent: Recognizing The Kleptocracy

CNBC, much like Bloomberg, is a source for regime propaganda. It wants people to comply with a system of central-bank-driven nation-states. But the only way it can be effective as propaganda is to keep its ratings up. That is the only reason people like James Grant get time on the network. But Grant’s sensible critique of the Federal Reserve system was too much for fedreservista Steve Liesman decided to challenge him, claiming that the Federal Reserve’s QE program was “working.” Of Read more […]

The Housing Implosion: Here It Comes?

From Money News under the headline: “New Wave of US Mortgage Trouble Threatens Banks. U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country’s biggest banks. The loans are a problem now because an increasing number are hitting their 10-year anniversary, at which point borrowers usually must start paying down the principal on the loans as well as the interest they had been paying Read more […]

Does The Record Stock Market Mean Anything Good For The Economy? No.

Yesterday, Jake Tapper had Peter Schiff on his show, giving those who care to listen a needed corrective about the stock market euphoria in the wake of the Dow Jones historic high. Should people be happy that the Dow Jones industrial average hit a historic high of 16,000? “Not if you’re concerned about the economy,” said CEO of Euro Pacific Capital Peter Schiff, author of “The Real Crash – America’s Coming Bankruptcy.” Schiff correctly predicted the housing market crash would overwhelm the Read more […]

People Who Buy Stocks Must Be Idiots: The Yellen Bubble Denial Extends Bubble

Was 2008 really that long ago? Are today’s traders so young that they don’t remember it? I hadn’t planned on saying anything about the Janet Yellen hearings because I think she doesn’t matter. The Federal Reserve System is a big scam that provides welfare to millionaires and billionaires at the expense of poor and middle class people. She will use her position to do exactly what any other Federal Reserve Chairman would do. So there was no need to pay attention to her. The Federal Reserve Read more […]

Debt and Bubbles from Bloomberg TV

The headline says it all: “US Debt Is A Black Cloud Over Investors.” Steve Holland of The Holland Group was discussing “why we’re seeing a rally” in US markets with Angie Lau on Bloomberg Television’s “First Up.” Holland listed a lot of short term positive signs, but his outlook did not seem positive at all when he was done. Listen especially at 1:53 and following. [Click here if the video does not work below] Hearing Holland mention the debt as a reason that investors fear the US economy Read more […]