The Albatross Of Debt: The Stock Market’s $67 Trillion Nightmare, Part 2

In Part 1 we postulated that the chart below embodies nothing less than the nightmare that will be coming to Wall Street right soon. It means, in effect, that you can climb the financial tiger’s back for an extended time, but when you reach the mane its generally impossible to get off alive. Needless to say, […]

Today's Contrarian Reads

Public Debt Spikes Nearly $1 Trillion In less Than Six Months

That debt ceiling was suspended on February 8, at which point the gross national debt began to surge again, adding $1 trillion ($960.4 billion rounded to the nearest 100 million), a 5% jump in the gross national debt in just 5.5 months…..

2018: The Year Of The Margin Call

Investors borrowing record sums to bet on stocks exacerbated this month’s selloff, after they were hit with calls to reduce those obligations and forced to sell shares to raise cash. If that debt, known as margin loans, continues to rise at the current pace, analysts warn that big selloffs and sudden bouts of volatility in […]

Washington’s Phony Campaign To “Save” East-Ghouta

The huge propaganda campaign about east-Ghouta is certainly not over humanitarian concern or over adherence to some legal rules of war. Last year the U.S. destroyed Raqqa with more than 31,000 artillery rounds and a large air campaign and killed more than 3,200 civilians. It even destroyed the water pipeline to Raqqa that supplied the […]

The Ghosts Of Eastern Europe: Why Price Controls On Money Always Fail, Too

Regrettably, price controls don’t stop with just goods, commodities, and services.  The United States, Europe, and Japan have been doing their darnedest during the early years of the 21st century to show that these ghosts of the old Eastern Bloc also haunt credit. Remember, credit, like a commodity or good, has a price attached to […]

Canary In Pension Land: CalPERS Is Near Insolvency, Needs Bailout Soon

CalPERS, however, has no choice because as both Walters and Westly claim, America’s largest public pension fund itself is on the brink, “and the policy change is one of several steps it has taken to avoid a complete meltdown.” As we have reported previously, the Calpers system, once more than 100 percent funded, now has […]

Mortgage Regulation Failing Again—Lending Moving Into The Shadow Banking System

The non-banks’ growth has been breathtaking. At the end of 2016, such unaffiliated mortgage companies accounted for more than 40 percent of new conventional mortgages (those eligible for sale to government-controlled guarantors Fannie Mae and Freddie Mac), twice the share they accounted for just eight years earlier. They’re also responsible for a decline in credit […]

Where’s The Beef Stroganoff? Eight Sacrilegious Reflections On RussiaGate

Neo-McCarthyite liberals and other dismal Democrats are clucking about how Robert Mueller’s indictment of 13 untouchable Russians for “defrauding” the U.S. by buying some Facebook ads and employing some Internet trolls to “say horrible things” (imagine!) about Hillary Clinton (a horrifically bad politician who was accurately described as a “lying neoliberal warmonger” by a leading […]

GOP Tax Cut Takes Hold: Goldman’s Buyback Desk Had Its Two Most Active Weeks Ever

Tax reform and the recent market correction will fuel 23% growth in buybacks to $650 billion. The Goldman Sachs Corporate Trading Desk recently completed the two most active weeks in its history and the desk’s executions have increased by almost 80% YTD vs. 2017. New repurchase program announcements will also support buyback growth. Authorizations have surged […]

RussiaGate Morphs Into A New Reign of Terror

The theme of Russian subversion is repeated throughout the indictment without any compelling evidence to explain how Mueller knows what he asserts to be true, suggesting either that the document would have benefited from a good editor or that whoever drafted it was making things up….

What A Real “America First” Security Policy Would Look Like

Still, just suppose that by some wild unpredictable accident we ended up with a strategy that in some way resembled the “America First!” prioritization Donald Trump promised us? Here’s a possible broad sketch….