So How Smart Was Boasting in the Stock Market, Mr. President?

Only two months ago Barack Obama claimed he saved the stock market. Earlier this month I pointed out that not even Politifact could support the President’s boasting in the economy. Indeed, Obama’s boasting was immense. Consider this Business Insider report from exactly two months ago: “Obama: I saved the stock market.” President Barack Obama says he saved the American economy … and its stock market. Obama did a victory lap on comedian Marc Maron’s podcast, WTF, earlier this week, and Read more […]

Telegraph: Economic Doomsday Is Here

The inevitable collapse of China is finally happening and with it comes economic doomsday — but we should welcome it. The Telegraph has an excellent account of what is happening in the world economy: “Doomsday clock for global market crash strikes one minute to midnight as central banks lose control.” Here is a video that illustrates the report: The article begins with an obvious whitewash: When the banking crisis crippled global markets seven years ago, central bankers stepped Read more […]

The Coming Solar Panel Bailout

Why a solar panel bailout? Because a solar panel bubble will cause a solar panel bust. Directly funding private corporations isn’t always possible in the United States. It looks like you are taxing the poor to build up the rich. That is because, when you give corporate welfare, you are taxing the poor to build up the rich. So what do you do? You come up with a relatively cheap way to “stimulate” the industry and then, when the inevitable collapse takes place, you portray the situation Read more […]

More Evidence that the Federal Reserve Is Failing

If you walked the streets, asking citizens the purpose of the Federal Reserve, my guess is that in any place other than a major financial district, not one-in-a-hundred people could tell you. Probably not one-in-a-thousand. If I told you the Fed wasn’t even accomplishing what it was allegedly created to do—arguably making things worse—yet it was enriching and empowering bankers like those who lobbied to create the Fed 100 years ago, would it be a surprise? Consider this paper from the Heritage Read more […]

The Stock Market Crash Could Cut Values in Half

Not everyone will call yesterday’s drop a stock market crash… yet. But now it is admitted that a crash might be a reality. Henry Blodgett begins his post in Business Insider by saying that he is not predicting a crash: After meandering higher for most of the year, the stock market is now sputtering. That’s triggering chatter about a minor “correction,” which many people believe is long overdue. And maybe that’s what we’re at the start of, a minor correction. Or maybe this is just a blip, Read more […]

Is the Financial System Now More Unstable Than in 2007?

We “solved” a debt-crisis by taking on additional debt. Why, with economic brilliance like that, what could possibly go wrong?!? I mean, when we don’t make enough to cover the mortgage and credit card payments don’t all of us rush out and add three more loans to the mix? If you don’t understand the wisdom in that, you must not be a high-powered, overpaid banker or economist!! There’s also this little problem of financial derivatives—some estimates put the notional amount at $1.4-quadrillion Read more […]

Is the Bubble about to Burst?

Do you own any stocks or mutual funds? If so, you really should read and ponder this article. From the Sovereign Man blog: Lord Overstone said it best. “No warning can save people determined to grow suddenly rich.” Case in point– CYNK Technology Corp, a listed company that as of this morning has a market capitalization in excess of $1 BILLION. According to official filings, the social media development company had one employee, no website, no revenue, no product, and no assets. What Read more […]

Hope You Enjoyed the “Recovery” Because We’re Due for Another Recession

CNS News posted a rather sobering economic story. Their headline is: “Obama Recovery Now as Long as Average Post-WWII Recovery.” If that isn’t clear to you, perhaps I can help by offering my own translation: We are due for another recession any time now. If the economic expansion continued in April, then That would make it as long as the average economic expansion period in the post-World War II era, according to estimates made by the National Bureau of Economic Research. Since World Read more […]

Janet Yellen Says, “Don’t Worry, I’ll Keep Pumping Out More Money,” And Stocks Rise

Remember when everyone wondered what Yellen would do when she became Federal Reserve Chairperson/woman? The media acted like this was a mystery. It wasn’t. She’s going to do exactly what Alan Greenspan and then Ben Bernanke did. It was all she was ever going to do. She is going to create new dollars to pump into the stock market and other bubbles. From Federal Reserve Chair Janet Yellen, easing investor concern that interest rates may rise earlier than previously forecast, 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 […]

Ben Bernanke Pretends To Explain The Reason For The Recession

The scariest thing about reading this report is to consider that Ben Bernanke might truly believe what he says—that his economic blindness is so deep he is authentically incapable of seeing reality. From Zero Hedge: So what was the reason, according to the man who was easily the most powerful person in the world for nearly a decade? Ready? “Overconfidence.” (no, not “weather”) Yup. That’s it. “The United States became ‘overconfident,’ he said of the period before the September Read more […]

Nightmare On Wall Street: Markets About To Become A Roller Coaster Without A Track?

From Business Insider Australia: “ALBERT EDWARDS: The Markets Will Become Locked In A ‘Freddy Kruger-Like’ Nightmare That Takes Stocks Down To Levels Not Seen In A Generation.” Profits and profit expectations are ultimate what drive stock prices. And the worry is that fragile and weak profit growth is about to make a big turn for the worse. “One thing [SocGen’s Andrew Lapthorne] has been highlighting for some months is just how incredibly anemic profits growth has been in both the developed Read more […]