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Tag Archives: On Economy

The Exiling of Risk

The Exiling of Risk

  A Quick Chart Overview Below is an overview of charts we picked to illustrate the current market situation. The selection is a bit random, but not entirely so. The first set of charts concerns positioning and sentiment. As one would expect, these look fairly stretched at the moment, but there are always ways in which they could become even more stretched. First a look at the NAAIM exposure index:   At 101.6% net long (responses can range from 200% leveraged short to 200% leveraged...

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The Reign of Bubble Finance

The Reign of Bubble Finance

  Financialization Genius BALTIMORE – When we left you last time, we were in the middle of describing the crooked hind leg of crony capitalism. We used billionaire businessman Wilbur Ross – Donald Trump’s pick for the Department of Commerce – for illustration purposes. Not that there is anything wrong with Mr. Ross. He plays the game, just as everyone else does. He’s particularly good at it.   The steel magnate in his command center. He is one of a number of particularly alert...

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The Crony’s Recipe for Building a Fortune

The Crony’s Recipe for Building a Fortune

  Setting the Financial Course – Crimes and Great Fortunes BALTIMORE – “Behind every great fortune is a crime,” said French novelist Honoré de Balzac. Even our modest little pile owes much to a crime, though not our own. But what is behind Wilbur Ross’ billion-dollar fortune?   Today it’s Honoré de Balzac’s turn to provide us with a pithy quote. Balzac failed in his many attempts at getting a business off the ground. He tried various careers, from   lawyer to publisher, to...

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How Do You Destroy a Business?

How Do You Destroy a Business?

  Running Out of Time and Money BALTIMORE – We are looking ahead. And coming together is not only a clearer picture of how Trump’s reflation might turn out – but also a better understanding of what has gone wrong with the whole economy.   The famous Sears Tower (now Willis Tower) dominates the Chicago skyline. Its former owner Sears Holdings is on the ropes after being in business for 130 years. What happened? Photo credit: Carol Highsmith   Over the next three days,...

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No Surrender in the Fed’s “War on the Markets”

No Surrender in the Fed’s “War on the Markets”

  The Nasty Habits of Reality BALTIMORE – People never intend to bring disasters upon themselves. But they sometimes put themselves in situations in which disaster is the only way out. The War Between the States was supposed to be quick and decisive. The glorious histories of the war were already written – at least in the minds of the combatants – by the time of the First Battle of Bull Run.   General Thomas “Stonewall” Jackson inspects the action at the First Battle of Bull Run....

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The Swamp Is Winning

The Swamp Is Winning

  Donald vs. the Swamp BALTIMORE – Judging by the Diary mailbag, dear readers would like to see a more positive attitude towards the president-elect. We would like to take a more positive approach; we like wishful thinking as much as anyone. In particular, we’d like to see Mr. Trump do away with the inheritance tax.   A message from the swamp thing: all you’ll get is a maw-full of muck –  it is knitting itself back together already. And besides, it is ticked off. Illustration...

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Attaining Self-Destruct Velocity

Attaining Self-Destruct Velocity

  Bad Monday Some Monday mornings are better than others.  Others are worse than some.  For one Amazon employee, this past Monday morning was particularly bad. No doubt, the poor fellow would have been better off he’d called in sick to work.  Such a simple decision would have saved him from extreme agony.  But, unfortunately, he showed up at Amazon’s Seattle headquarters and put on a public and painful display of madness.   Good-bye cruel world! On this our planet, ignoring air friction,...

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Gold Price Skyrockets in India after Currency Ban – Part IV

Gold Price Skyrockets in India after Currency Ban – Part IV

  A Market Gripped by Fear The Indian Prime Minister announced on 8th November 2016 that Rs 500 and Rs 1,000 banknotes would no longer be legal tender. Linked are Part-I, Part-II and Part-III updates on the rapidly encroaching police state. The economic and social mess that Modi has created is unprecedented. It will go down in history as an epitome of naivety and arrogance due to Modi’s self-centered desire to increase tax-collection at any cost.   Indian jewelry merchant Photo via...

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All Aboard! Trump’s Express Train to the Future

All Aboard! Trump’s Express Train to the Future

  Free Money! BALTIMORE – Last week, the Dow punched up above 19,000 – a new all-time record. And on Monday, the Dow, the S&P 500, the Nasdaq, and the small-cap Russell 2000 each hit new all-time highs. The last time that happened was on the last day of December 1999.   Ironically, two events that were almost universally expected to trigger large stock market declines were followed by quite rapid and strong gains. Would the market have fallen if Hillary Clinton had won the...

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A Note on Gold and India – What is Driving the Gold Price?

A Note on Gold and India – What is Driving the Gold Price?

  Hidden Motives It is well-known that India’s government wants to coerce its population into “modernizing” its financial behavior and abandoning its traditions. The recent ban on large-denomination banknotes was not only meant to fight corruption.   Obviously, this very bad Indian has way too much cash. Just look at him, he looks suspicious! Photo via thenewsminute.com   In fact, as our friend Jayant Bhandari has pointed out, fresh avenues for corruption  immediately...

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