The Latest

Contra Club

Central Bank Distortions At Work: Cheap Debt And The Fraking Binge

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The financial hype around fracking, the limitless, nearly free liquidity provided by the Fed since late 2008, and investors so desperate for yield that they’re willing to incur just about any risks in their vain battle to come out ahead have had Wall Street frothing at the mouth…. the boundless stream of money has been searching for a place to go, and it went to an economic activity – fracking – where money goes to die. What’s left is debt, and gas wells, that will never produce enough to pay off the debt that was incurred to drill them.

When “Up” Is Still Heading Down: Why Bubblevision Is Clueless About Consumer Confidence Surveys

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The long term trend is still down. Note that the index is based on the average reading in 1985 being 100. The peak reading of around 185 was reached at the end of the tech bubble. Another peak around 140 was reached at the top of the housing bubble, when virtually everybody had a home equity ATM. The current reading remains below the 1985 average at about half the peak level.

Contra News & Views

Senator John McCain On The Libya Intervention: “The World Is Now A Better Place”

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In 2011, interventionists were crowing that the “Libya skeptics have been proved wrong” and that a brutal dictator had been removed with “surgical strikes and a minimum of collateral damage”, at very little cost to Western tax payers. Compared to other interventionist success stories like Iraq, that John McCain, evidently happy that finally one of the endless wars he has been promoting in the course of his career appeared to have worked out as advertised, declared that “the Obama administration deserves great credit,” adding, “I had different ideas on the tactical side, but the world is a better place.”

America’s Nanny State Puts On Brass Knuckles: Tales Of Outrageous Domestic Police Abuse

What these incidents reflect is a society that has become so bureaucratic, so legalistic, so politically correct, so militaristic, so locked down, so self righteous, and so willing to march in lockstep with the corporate-minded police state that any deviations from the norm—especially those that offend the sensibilities of the “government-knows-best” nanny state or challenge the powers that be—become grist for prosecution, persecution and endless tribulations for the poor souls who are caught in