Flooding The World With New Currency Is Getting Old

A person begins heavy drinking in order to get drunk and stay drunk. Eventually, unless he stops and deals with reality, he drinks just to stay sane—until his health collapses. Likewise, a person may get high from heroin but later need the drug just to stay functional. Creating continual flows of new currency “stimulus” works in a similar fashion on the economy. Thus far, the Fed’s (now slightly reduced) monetary stimulus has kept the stock market rising. But there are signs that the drug 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 […]

Less Affordable Housing In 20 Cities In 2014 Is Not Good Economic News

Apparently the essence of financial wisdom in the Western World is to learn nothing from the housing boom and bust leading into the 2008 recession. All anyone can do is simply hope for the government to somehow take us back in time to 2006. Many of us who own homes are, of course, wishing we could think of these homes as an asset rather than a liability. I sympathize. I’m in that group with many other. But the entire way of life is toxic and we need to wish it dead, even if it is going to mean 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 […]

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 […]

Small Town America Dying From Recessions, Heroin, Depopulation; But Media Not Curious About Causes

The headline looks like it is ready to go all Marxist on the readers: “Reinventing the Dwindling Middle Class May Take A Revolution.” But the content of the radio news report didn’t match it. It was just sad story about a journalist returning to her hometown of Lincoln, Illinois and noticing the changes. It turns out that what’s happening in Lincoln is happening in so many towns and communities across the country: As we recover from the Great Recession, jobs are coming back. But they are not Read more […]

Mainstream Media Doesn’t Want You To Stare Directly At Our Economy

What a lovely headline from the Associated Press at the L. A. Times website! “U. S. economy adds 204,000 jobs in October” And then the teaser tells us that the media is even willing to weaken their mantra about how the government “shut down” (as if!) hurt the economy: “The burst of hiring comes despite the 16-day government shutdown…” And then a slight bit of bad news: “The unemployment rate ticks up to 7.3%.” But even that bit of bad news is soon dispelled: The U.S. economy added Read more […]

What Do The Rich Know That No One Is Telling Us?

Think the stock market is going to go higher? I suspect some people may disagree with you. A new survey of family offices by Citi finds that the wealthy are cash heavy—meaning they may fall short of the investment returns they’re expecting. Wealthy families have about 39 percent of their assets in cash, according to a recent poll of more than 50 large family office representatives from 20 countries conducted by Citi Private Bank. Stocks represented about 25 percent of portfolios on average. Read more […]

Implosion Architect Greenspan Blames Us for Being Irrational

The Wall Street Journal has given former Federal Reserve Chairman Alan Greenspan a careful platform so he can justify himself. The most nauseating thing about this “interview” is it gives us few direct quotations. It mostly summarizes points. Obviously, this is simply the defense that he wishes public to swallow about himself and that the “reporter” Alexandra Wolfe dutifully produced, no doubt allowing him to edit and “correct” the final draft. If we were given a transcript or (better) Read more […]