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Contra Club

Financialism Run Amok: Now Comes The Twisted Finance And Economics Of Brazil

Last week was pretty much a disaster, not just economically speaking, for a wide swath of the globe – from Japan’s ongoing “unexpected” collapse to Europe’s “unexpected” third go at contraction (without recovery) to a very dim and “unexpected” view of credit markets pretty much everywhere including the US. This week started out with more [...]

How Free Money Corrupts Corporate America: Insider Selling, Stock Buy-Backs, Dodgy Profits

…..this comment succinctly captures the underbelly of Corporate America: massive insider selling, borrowing billions to buy back their own stocks to push valuations to the moon so shares granted as compensation can be sold for a fortune, and dodgy accounting strategies that boost headline profits and hide the gutting of investments in long-term growth.

China’s $25 Trillion Debt Bubble Fracturing: Bad Loans Mount At Big Four Banks

These four mastodons – Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China – admitted to 384.7 billion yuan ($62.6 billion) of bad loans on their book at the end of June, a 13.2% jump from just six months earlier. The jump in bad loans ranged from 11% at Agricultural Bank of China to 17% at Bank of China.

S&P Tops 2000 But Weary Consumers On Strike: The Recovery Delusion Gets Obvious

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The propaganda machine is working at hyper speed as the wheels fall off this out of control bus. But all the messaging, packaging, and lies can’t change the facts. Ignorance about the facts doesn’t change the facts…… You mindless consumers simply won’t consume as much as you used to, even with 7 year 0% interest subprime auto loans, $1 trillion of government loans to generate consumption disguised as student loans, and five credit card offers per week from the Too Big To Trust Wall Street cabal. WTF is wrong with you?

War Party Working Overtime On Labor Day Weekend: More Hoaxes, Hype, and Hysteria

While Americans were barbecuing over the Labor Day weekend, the Usual Suspects were busy cooking up new wars, from Iraq to Ukraine. While this is nothing new – after all, evil never sleeps – one thing I did notice: the stunning lack of imagination on their part. It was, in effect, the equivalent of a bunch of summer reruns: tired formulaic retreads that weren’t all that convincing in the first place……

Contra News & Views

The ‘Big Lie’ on Ukraine Or How Putin Got WMD’d

The original lie behind Official Washington’s latest “group think” was that Russian President Vladimir Putin instigated the crisis in Ukraine as part of some diabolical scheme to reclaim the territory of the defunct Soviet Union, including Estonia and other Baltic states. Though not a shred of U.S. intelligence supported this scenario, all the “smart people” of Washington just “knew” it to be true.

Sound The Bugle! Washington’s Got War Fever…..Again

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From the highest levels of the Obama administration to the media pundits, emotions are flaring over what the United States should/could do. The act in itself has changed nothing insofar as IS’ threat to the United States and its significance for Middle East politics are concerned. It is the mood that has been transformed. Irresistible impulse is displacing cool deliberation. The flood of commentary, as usual, reveals little in the way of rigorous logic but much in the way of disjointed thinking and unchecked emotion.”