Articles Category

Federal Reserve Chair Janet Yellen is quite convinced that the United States will not experience another financial crisis for a very long time to come.  In fact, she is publicly saying that she does not believe that another one will happen “in our lifetimes”.  But there are other central bankers that see things very differently.  In fact, a new report that was just released by the Bank for International Settlements is warning that a new financial crisis could soon strike “with a vengeance”.  So who is right? It would beRead More
The borrower is the servant of the lender, and through the mechanism of government debt virtually the entire planet has become the servants of the global money changers.  Politicians love to borrow money, but over time government debt slowly but surely impoverishes a nation.  As the elite get governments around the globe in increasing amounts of debt, those governments must raise taxes in order to keep servicing those debts.  In the end, it is all about taking money from us and transferring it into government pockets, and then taking moneyRead More

Posted On July 4, 2017By HoudiniIn Articles

“You Think This Market’s Crazy?”

You think this market’s crazy? One day in early 1987, with Wall Street humming, a meeting after trading closed involved several cases of champagne. The Dow Jones Industrial Average had breached 2000 that day, a cause for celebration. A week and a half later, more champagne was ordered when the average passed 2100. Then again a few weeks later for 2200. Eventually my boss stopped buying bubbly when breaking records became the norm. Japanese insurance companies would show up at the brokerage firm where I was a securities analyst and ask for a listRead More

Posted On July 4, 2017By HoudiniIn Articles

David Stockman On the Coming Carmageddon

Ben Bernanke’s successors at the Fed and other global central banks still don’t get it. Falsified debt prices do not promote macroeconomic stability. They lead to reckless credit expansion cycles that eventually collapse due to borrower defaults. We’re now seeing that play out in the auto sector, especially since anyone who can fog a rearview mirror has been eligible for a car loan or lease. If that reminds you of the sub-prime housing disaster, you’d be right. That, in turn, will make the looming collapse even worse, due to the sudden drastic shrinkage ofRead More
As I sat down to enjoy some smoked salmon at a recent BBQ I attended, I ended up at a table with two recent high school graduates. To my disappointment, when I asked them what their plans were for the summer and beyond, both said they were heading to college. With student loans and a wasteful four years in front of them, I couldn’t help but ask why. Is there really anything that takes 4 to 8 years to learn or become an expert in? Seriously, what a waste ofRead More
Nobody for President  On 17th July 2017, India will elect a new President through a vote of the elected representatives. The two real choices are between Ram Nath Kovind and Meira Kumar. Afraid of looking completely ignorant, I asked a few people who Kovind is. No-one knew of him and people only vaguely remembered Ms. Kumar. India will get a complete nobody as its next President. Both candidates are from the Indian province of Bihar. If it were a country, Bihar with its 119 million inhabitants would be the 12th most populated in theRead More
“…people believed that everything was going to be great always, always. There was a feeling of optimism in the air that you cannot even describe today.” “There was great hope. America came out of World War I with the economy intact. We were the only strong country in the world. The dollar was king. We had a very popular president in the middle of the decade, Calvin Coolidge, and an even more popular one elected in 1928, Herbert Hoover. So things looked pretty good.” “The economy was changing in this new America. ItRead More

Posted On July 3, 2017By HoudiniIn Articles

Rebalancing the housing market

AFTER making a profit of RM1mil from the sale of a property he lived in for a decade, Joe went house hunting. Most of the properties he saw were completed in 2014 or 2015. Some were tenanted, others left unoccupied the last two to three years. After seeing about 20 properties, he settled for one that cost slightly less than RM1mil. “It’s a buyer’s market, so maybe I can get the agent to negotiate it down to RM950,000,” he says. Joe is not the only one looking for a goodRead More
If something happens seven times in a row, do you think that there is a pretty good chance that it will happen the eighth time too?  Immediately prior to the last seven recessions, we have seen an inverted yield curve, and it looks like it is about to happen again for the very first time since the last financial crisis.  For those of you that are not familiar with this terminology, when we are talking about a yield curve we are typically talking about the spread between two-year and ten-yearRead More
Bill Gates’s net worth still beats bitcoin’s entire market cap. Not all money is created equal. Bitcoin burst into our financial consciousness like a fiery comet, setting the internet ablaze with visions of upending the existing global money system. Yet, by its nature as a cybercurrency, whose legitimacy only exists in the ether, its credibility leaves much room for debate. HowMuch.net on Wednesday put things into perspective and demonstrated that for all the buzz and excitement bitcoin has generated, it still has a long way to go to be evenRead More