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  • The Latest Unsustainable Trend [View article]
    Somehow corporate share repurchases always peak at the same time as share prices and then crater during such times as 2009 when prices are low.

    Rather than an insightful investment timed to undervalued shares, American corporate share repurchases are a drunken orgy for top management to maximize compensation and bonuses to be obtained by any means necessary, whenever possible, good stewardship be damned.
    Aug 15 05:12 PM | 1 Like Like |Link to Comment
  • Japan's GDP Problems, The Big Picture [View article]
    Once upon a time, pre-2008 Wall Street crash, it was not uncommon to hear and read criticism of Japan's zombie banks and interests who were not allowed to fail after their 1988 stock market debacle and recognize losses, and whose propping up by government and CB diktat and taxpayer debt and financial repression was creating bottlenecks, inefficiencies and burdens that could be clearly observed as stifling Japan's economic growth.

    Fast forward to 2014 and we find such a discussion is not considered "serious" if it even finds it's way into centralized MSM at all as a footnote, even though Japan's policies have clearly been adopted by the US and Europe with similar, horrible results. Results can be seen as horrible because describing them as "pitiful" does not do justice to their corrosive effects visited on the "land of the free" to protect the interests of Wall Street, the "citadel of capitalism" by centralizing power in Washington and the Federal Reserve to socialize the failures of the ruling kleptocracy.

    It is no stretch to point out that this road points Japan and also the US towards the same economic results as seen in Venezuela whose command and control system is of the same ilk as the former USSR whose government's effect on it's economy was correctly described as sure to produce a shortage of sand if it were in charge of the Sahara.
    Aug 15 10:58 AM | 4 Likes Like |Link to Comment
  • Low-Rate Oasis Is A Mirage For Real Estate Stocks [View article]
    Ignored or minimized by mainstream economists, rising rates will have the disastrous effect on real estate as well as corporate and government finances, of taking money out of budgets or the value of assets from the owners while buyers do not see much improvement because increased interest payments will eat up any benefits.

    Inflationary Fed policies will commence to protect leveraged balance sheets on TBTF Wall Street and corporations from such asset destruction but they will finally meet bond vigilantes when they are in a position to demand higher interest rates which is only a matter of time. Trying to protect the level of leveraged junk financing based on inflated assets that has gone on during ZIRP will not succeed in reducing interest rates as successfully as it will cause the dollar to implode.
    Aug 14 02:24 PM | 1 Like Like |Link to Comment
  • Wallets Remain Closed [View article]
    Another clear damning indictment of the mainstream economist, political and MSM "recovery" spin that cannot stand true scrutiny in the light of day.

    Each graph showing the last several eras of monetary bubble-blowing pumps and subsequent declines cannot help but illustrate the clearly declining efficacy of each "pump priming" binge even as those policies reach levels of excess debt and moneyprinting previously unimaginable.

    Even an imbecile can see what economists can't; what does that say of that "profession" in a time of an unparalleled world debt binge when it has never been more important for it's practitioners to contribute sanely according to professional and scientific standards?
    Aug 13 05:04 PM | 1 Like Like |Link to Comment
  • Bini Smaghi Pleads For More Money Printing By The ECB [View article]
    "It should be obvious even to Bini Smaghi and those supporting his ideas that not even an iota of real wealth can possibly be created by increasing the money supply."

    Unfortunately that is not at all obvious to any of the elitestas in charge nor is it to many on SA who are entirely content as long as they reap the gains afforded by the policy of creating a "wealth effect" that has failed to spread into real business activity and hiring beyond levels that have always been associated with recessions in the past. In fact, monetary inflation is core to the prevailing Keynesian "logic" with longterm effects excused because "in the long run we are all dead."

    And the last quote in the article from Mises sums up how activist central planners always push the same kind of increasingly worthless fiat and financial paper as John Law did, as their schemes which are increasingly uneconomic the larger and longer they grow require ever more and greater lies to cover previous and metastasizing economic fraud.
    Aug 12 11:30 AM | 3 Likes Like |Link to Comment
  • A Long Look At Productivity And The Stark Reality Of It [View article]
    This article shows that even fudged as they are, these official labor statistics provide perhaps the clearest condemnation yet of the mainstream "recovery" narrative and the ridiculous contortions of interrelationships that are required to suspend disbelief. Such as the extreme declining productivity that must be imputed to conjure a sufficiently if barely rising number of hours worked to maintain a continued "recovery" presupposition.

    And an excellent summation, "The absence of that wealth is as we see above, where labor suddenly stops holding its relative 'value' and the economy simply wastes resources in non-productive pursuits (like the endless churn of ledger money and credit through expansive bubbles)," which is precisely the conclusion narrowly-concentrated corporate MSM would have us avoid regarding the financialist paradise that leaves the public holding the debt bag while the Bernanke "wealth effect" that inflates financial assets, costs of living and keeps too many politically favored zombie economic interests and activities alive, continues to plague entrepreneurism and to dash true recovery on Main Street.
    Aug 11 10:48 AM | 1 Like Like |Link to Comment
  • The Coming Market Crash And The "Trigger" [View article]
    Agreed that all points of the article are true, yet timing remains the critical point. The article doesn't explain why the picture is much different than the last article June 25 as all indicators mentioned show growing fundamental weakness in Bernanke's multi-year asset bubble built on a foundation of sand, but don't really clarify why the promised triggers are decisively more imminent now than they were 6 weeks ago.
    Aug 8 11:25 AM | 3 Likes Like |Link to Comment
  • The Deflation Menace [View article]
    "But a mere increase/ decrease of money supply does not necessarily cause monetary inflation or deflation. It's a question of supply AND demand."

    We have a targeted inflation of financial assets via ZIRP to the politically connected to create a false sense of sufficient debt-fueled "wealth effect" that creates an appearance of national solvency and corporate profitability to "back" the recklessly increasing debt while bonuses continue to be distributed even as national capex and Main Street continue to languish.

    Cost of living is spiraling out of control for average Americans during this statistical recovery partly because their actual rise is both falsely minimized and is occurring simultaneously with drooping pay and economic opportunities.

    The other shoe has yet to drop as ZIRP policies inflating financial assets via debt issuance and massive perpetual deficit spending leaves national and corporate finances dangerously at the mercy of rising interest rates. In the next crisis once again the gaping hole of asset implosion will be met with money printing, this time even vaster, whose effects will not likely permit the dollar to appear only moderately debased and retain "safe haven" or reserve status.
    Aug 7 12:08 PM | Likes Like |Link to Comment
  • The Deflation Menace [View article]
    Inflation helps grease the wheels of the business of banks - lending, while tending to move demand forward which gets politicians reelected. This game, now played to ad absurdum levels of $trillions of taxpayer debt backstopping the Wall Street casino, entitlement checks and in QE purchases on the Fed balance sheet, is running out of time assuming the imagination of corrupt policymakers and the credulity of voters and markets is not infinite.

    Debt cannot truly reach for the sky unless printed on fiat scrip of negligible value especially if it is used for too many worthless endeavors driving asset prices up and keeping consumer prices rising while national capex withers, as is the case in the US today.
    Aug 5 09:27 AM | 6 Likes Like |Link to Comment
  • Cutting Through The Multicultural Nonsense [View instapost]
    Very interesting stories.

    I had an encounter with admiring the tools plus the general design and workmanship on a used Honda I bought recently while changing a tire on it today. Even the jack itself is a beautiful device!
    Aug 2 10:37 PM | 1 Like Like |Link to Comment
  • Better To Risk Worse Recession; Recovery Compounding Matters Far More [View article]
    The article well states the fallacy of the crony capitalist efforts to save incumbent elites and politically favored interests from any failure at the expense of the taxpayer balance sheet since it has clogged the economy with so many inefficient players and false signals, that genuine entrepreneurship cannot rise re-invigorate the economy with any confidence.

    If domestic businesses cannot ascertain the latest inside information from the monetary and political manipulators or receive direct government checks, they cannot invest with any confidence on Main Street where demand suffers anyway as the whole process has business formation and self- and private employment is at record low levels.

    This is not surprising as interest rates, proliferating rules and the eroding value of the fiat currency become more engineered from the top than ever leaving uncertainty since 2008 unabated as government debt and obligations tower larger and the endlessly proclaimed and absurdly exorbitantly financed "recovery" now clearly lags any more normal results that would have bounced off a deeper but less-manipulated dip.
    Aug 1 11:24 AM | 1 Like Like |Link to Comment
  • Wall Street Breakfast: Condensate Leaves U.S. Shores As Industry Demands Export Guidelines [View article]
    gnnpa - Read "eBay: A Short Idea On PayPal's Upcoming Woes" by AltonRa Partners on SA today for an alternative view on Paypal's prospects.

    Paypal grew mainly via millions of captive customers on Ebay and that management has a record of seeking short term profits at the expense of small sellers, a lack of vision and of clobbering unlucky customers who have stumbled into it's sights by seizing their Paypal accounts without respecting their rights. And David Marcus, Paypal CEO, was recently hired by Facebook, a company whose management culture is far more attuned to freethinking ideas about the future possibilities of IT.

    Ebay's marketplace has been stunted by CEO John Donahoe's management allowing Amazon and now Alibaba to equal or exceed it's size and Paypal faces lots of hurdles and questions about whether or not it will split from Ebay and whether or not they really have what it takes to outcompete in online payments as many other larger players loom who have the clout and innovative skills to succeed and possibly prevail in that arena.
    Jul 31 10:14 AM | 1 Like Like |Link to Comment
  • How Do You Like Them Textiles? [View article]
    Looks like Amazon has stuck it's toe into too many businesses even as it benefited disproportionately because while so many ZIRP-fueled Bernankebucks have been available to drive financial asset prices higher, Amazon's "story" has been successfully sold as representing the "future."

    Shorter term, the market functioned as a voting machine as enough investors have bought Amazon hype and sent it's stock skyward for several years despite a lack of earnings and forward prospects in it's proliferating and increasingly competitive areas of business, but it appears increasingly likely and imminent that it's valuation when the market acts as a weighing machine must be far lower.
    Jul 29 08:33 AM | 4 Likes Like |Link to Comment
  • Beyond Gallup [View article]
    Problem for average US working people is that the more they fall behind, the less the establishment cares to issue statistics or policies that are relevant to their actual experience.

    Policymakers and academics who seem to exist primarily to justify and solidify the widening gap in the status quo enjoyed at the top are well-supported by the conventional endlessly massaged statistics they issue as well as a increasingly centralized MSM all of whom ignore fast-rising actual costs of living while finding no issue with conflating the low-wage and part-time employment opportunities of today with the high-income jobs lost while ignoring weakness in total employment and $trillions of mounting public debt, to maintain a narrative of "recovery."

    The declining state of the diminishing US middle class particularly in the vanishing privately employed sector, has become solidly perpetuated by a status quo that that features an upper tier that has never had it better and which finds no shortage of willing allies in politics, academia and media who demonstrate a clear willingness to follow the money at the expense of objective truth, and this leaves most working middle Americans increasingly far behind and forgotten.
    Jul 28 08:58 AM | 2 Likes Like |Link to Comment
  • The Amazon.com 'Come To Jesus' Earnings Report [View article]
    The scope of Amazon's accounting deception combined with the level of delusion and potential financial loss encompassed by it's stock valuation has the potential to end in an Enron-type scandal.

    When this latest financial asset bubble market goes south when the supply of Bernankebucks slows it's rate of increase, the greatest losses will be suffered by highflyers whose valuation cannot withstand sober scrutiny nor an even weaker economy. There will then be plenty of angry investors and grandstanding politicians and DA's to examine the likes of Amazon for just the accounting shenanigans described in this article.
    Jul 25 09:38 AM | 12 Likes Like |Link to Comment
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