Hyperinflation!
Gonzalo Lira: How Hyperinflation Will Happen: "The Global Depression we are in is being exacerbated by the very measures being used to fix it—stimulus is putting pressure on Treasuries, which are being shored up by the Fed. This obviously cannot have a happy ending. Therefore, the smart money prepares for what it believes is going to happen next.�"
Part II is here.
Oh, and another great article from tonight:
"The structural bear market has not reached the end. We have long said that the de-bubbling process would end only when equities became very cheap and revulsion in equities as an asset class hangs in the air like a fog. The problem remains more of excess valuation within the US rather than Europe, but that will not prevent the bear market hurting other cheaper markets as much. We will return to the valuation nadir last seen in 1982 with the S&P bottoming around 450 (see chart below)."
More after the jump...
The best of the blogosphere, hand picked for your convenience. Family man, 20 year market veteran, technical trader, Macro Econ junkie, MBA, working on my black belt in Shotokan and on anything with 4 or 6 strings ;)
Thursday, August 26, 2010
Tuesday, August 24, 2010
More sunshine..
"The Congressional Budget Office (CBO) forecasts the U.S. budget deficit will hit $1.3 trillion this year. An astronomical figure, to be sure, but that’s lower than was projected in March. It’s also less than last year’s record $1.41 trillion deficit, which was close to 10% of GDP.
And, that's the good news.
As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures.
But the situation is actually much, much worse, according to Boston University economics professor Laurence Kotlikoff.
“Forget the official debt,” he tells Aaron in this clip. The “real” deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget - is actually $202 trillion, the professor and author calculates; or 15 times the “official" numbers.
“Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don't Even Know It."
More here...
And, that's the good news.
As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures.
But the situation is actually much, much worse, according to Boston University economics professor Laurence Kotlikoff.
“Forget the official debt,” he tells Aaron in this clip. The “real” deficit - including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget - is actually $202 trillion, the professor and author calculates; or 15 times the “official" numbers.
“Congress has engaged in Enron accounting,” says Kotlikoff, who recently penned an op-ed for Bloomberg entitled: The U.S. Is Bankrupt and We Don't Even Know It."
More here...
Are you ready?
Ambrose nails it in his usual style. This quote should scare the snot out of the "long only" crowd:
"'This has been one of the most interesting days in finance ever,' said Andrew Roberts, head of credit at RBS. 'We are right at the tipping point. Yields are about to collapse even further, equities are about to turn over. The end game approaches, probably in next few weeks.'"
Hard-nosed Fed sends global markets reeling - Telegraph
"'This has been one of the most interesting days in finance ever,' said Andrew Roberts, head of credit at RBS. 'We are right at the tipping point. Yields are about to collapse even further, equities are about to turn over. The end game approaches, probably in next few weeks.'"
Hard-nosed Fed sends global markets reeling - Telegraph
Thursday, August 19, 2010
Tuesday, August 17, 2010
Monday, August 16, 2010
Friday, August 13, 2010
Rosie!
Friday, August 6, 2010
Canadian Pension Issues
Oh please, the economy here is rocking. There is no way these companies won't increase their contributions! And besides, a 50% haircut is nothing for all these baby boomers with 80% of their wealth in real estate (only goes up!) and on average, less than $30K in RRSPs (what, me worry?).
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