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02.05.16- The Great Crisis Has Begun (Oil is Just the Beginning)
Graham Summers

It would be a lot easier to be bullish today if the entire financial system wasn’t based on fraud and BS.

Every explanation we see regarding the bull market in stocks is really just a cover for the fact that Central Banks spent $14 trillion propping up the bond bubble.

All claims that stocks went up because of the “recovery” or because of “expansion” or whatever really translate to “stocks went up because TRILLIONS in liquidity went into the system and a lot of it ended up in stocks.”

Here’s the reality of things. Read More

02.04.16- The Great Credit Unwind!
Bill Holter

The action in nearly all markets worldwide changed on a dime since January 1st. I am not sure “what or why” the change coincided so closely with the calendar year but the rate hike by the Fed is the leading candidate. As for the real global economy, there is certainly evidence the weakness of late last year has deepened significantly. The pace of collapse has shifted gears as evidenced by trade, earnings and even central banks. Japan’s new policy of negative interest rates followed by new Fed trial balloons of same speak volumes about “stress”. Read More

02.03.16- Billionaire George Soros Thinks This Could Spark an Economic Collapse
Palwasha Saaim, B.Sc

Billionaire George Soros “broke the Bank of England” 23 years ago by shorting the pound. Now he’s betting against another country. According to media reports, the legendary investor is worried this country could spark the next economic collapse.

There’s good reason to be worried. Investor and hedge fund manager, George Soros, told Bloomberg he is going to be shorting the Chinese yuan. Because of his notorious track record, Chinese authorities are spooked. (Source: “China accuses George Soros of ‘declaring war’ on yuan,” The Guardian, January 27, 2016.) Read More

02.02.16- How To Beat The Market: One Surprisingly Simple Trade
Tyler Durden

Back in 2012 and then again in 2013, after repeatedly observing just how broken markets have become as a result of central bank intervention, a topic that back then was still taboo and is now wholeheartedly accepted even by the Davos billionaires (whose mood the WSJ summarized as "irritated, bordering on affronted, with what they say has been central-bank intervention that has gone on too long") we presented what may have been the "best alpha opportunity around" and how to outperform the "market" in a world in which not only fundamentals no longer matter, but in which hedge fund herding has led to relentless losses for the active investor community for 7 years in a row as a result of the omnipresence of central banks who have made hedging pointless: just do the opposite of what everyone is doing, and go long the most shorted stocks. Read More

02.01.16- Already Lousy Corporate Investment Comes Totally Unglued
Wolf Richter

A toxic cocktail.

American corporations borrowed more in the years following the Financial Crisis than ever before. Debt was dirt-cheap even for the riskiest borrowers, and they went out and sold bonds and borrowed from banks, and blew the proceeds on funding operating losses, buy each other out in a record-breaking wave of M&A, and buy back their own shares. And not enough went into productive investments that would help their businesses grow and thrive. Read More

01.30.16- Troubling Turnover
Ted Butler

The turnover or physical movement of metal brought into or taken out of the COMEX silver warehouses literally exploded over the last three weeks, as nearly 22 million ounces were moved and total inventories fell 4.5 million ounces, to 156.9 million ounces. I can recall only a few weeks over the past five years where more silver was physically moved. Please remember that I am speaking of physical movement and not paper work changes of metal being reclassified between the registered and eligible COMEX categories, on which so much is written. Physical turnover is just that – metal taken from warehouses and put on trucks and metal taken off trucks and put into the COMEX warehouses. Read More

01.29.16- Latest Twist In The Stock Market's Wild 2016 Ride
Dana Lyons

The Dow Jones Industrial Average just alternated 1% moves up and down for 4 days in a row – just the 17th such stretch in the last 70 years.

The stock market’s wild ride to begin the year continues, with the latest twist reminiscent of a roller coaster. Over the past 4 days, the Dow Jones Industrial Average (DJIA) has moved at least 1%, with each day alternating up and down. Since 1900, this is the 68th such streak and just the 17th in the past 70 years (actually, today narrowly missed making it 5 days in a row which would have been just the 3rd occurrence in the last 84 years). Read More

01.28.16- Is China About To Drop A Devaluation Bomb?
Raúl Ilargi Meijer

Though she had no intention of being funny, we laughed out loud, as undoubtedly many did with us, when incumbent and wannabe IMF head Christine Lagarde said last week in Davos that China has a communication issue. Of course, Lagarde knows full well that Beijing has much bigger problems than communication ‘with the market’. Or, to put it differently, if Xi and Li et al would ‘improve’ their communication by telling the truth about their economy, nobody would be talking about communication anymore. Read More

Stocks, the Economy and the Money Supply – What to Watch
Pater Tenebrarum

The Stock Market and Economic Data

In previous articles we have occasionally discussed the interaction between economic indicators and the stock market. Among the topics we have touched upon: for one thing, the capitalization-weighted indexes can hardly be called “leading indicators” of the economy anymore. In fact, if one studies specific major turning points over the past two decades or so, it is clear that the market seems to “know” very little (at least not in advance). Read More

01.26.16- The Beast System Arises: The Largest Bank In Norway Calls For The Elimination Of Cash
Michael Snyder

The biggest bank in Norway is calling for the complete and total elimination of cash. Many local bank branches in Norway already don’t deal in cash, but that is not good enough for DNB. They want a blanket ban on the use of cash, and they are selling this as a way to crack down on criminals and money launderers. But in the end, the truth is that they want to be able to force everyone in society to use the banks and it would enable them to collect fees on almost every transaction. It is an agenda that is being driven by greed, but it could also open the door for great tyranny. Unfortunately, we are not just seeing aggressive movement toward a cashless society in Norway. It is also happening in Sweden, in Denmark and in many other nations all around the globe. The Beast system is rising, and yet very few people out there even seem alarmed by this. Read More

01.25.16- One Trillion Dollars' Worth of Bonds Magically Turn into Cash
Hugo Salinas Price

Bloomberg is back and presents updated data on International Reserves held by Central Banks, excluding gold, as of Friday, January 8, 2016, after a hiatus on this information since December 11, 2015 (for reasons unexplained).

The data for Friday, January 8, 2016 are shocking, as expected: Total International Reserves held by Central Banks, excluding gold, expressed in US dollars, amount to $11.032 Trillion dollars as of that date. Read More

01.23.16- The 'Madness' of Central Bankers
The Daily Bell

BlackRock Chief: Markets Will Be 'Fine' ... The boss of the world's largest money manager said financial markets will be "fine" over the next year despite a sharp downturn early in 2016 ... BlackRock Inc. Chairman and Chief Executive Laurence Fink said in an interview ... that the market is "going through a correction phase and is doing it rapidly." – Wall Street Journal

Dominant Social Theme: It's all good.

Free-Market Analysis: We can see from the above excerpt that Laurence Fink sees the current sell off as simply a cyclical event, the turning of the business cycle. The interview took place a week ago, but doubtless his sentiments remain the same Read More

01.22.16- Russian Ruble Crashes To Record Lows In "Panic": "Some Investors Are Selling At Any Price"
Tyler Durden

Late last month, we took a look at Russia’s economy and concluded that although the country has proven to be remarkably resilient in the face of collapsing crude prices, the outlook is darkening.

The ruble has fallen for three consecutive years and is now under immense pressure both from Western economic sanctions and from crude’s inexorable decline. “The wish to hedge potential risks from geopolitics and commodities may well push the ruble to 75,” Evgeny Koshelev, an analyst at Rosbank PJSC in Moscow, told Bloomberg by e-mail in December. “It will be interesting to see if there’s a reaction from the central bank, government and households to this weakening.” Read More

01.21.16- Willem Middelkoop: This Could Spark a Global Economic ‘Reset’
Robert Appel

Looming Economic ‘Reset’ Should Terrify Investors

Although treated almost as gospel in the West, Keynesian theory is a relatively new development in the long history of economics. However, its backwards ideas are pushing the world to a global economic ‘reset’. Read More

01.20.16- Walmart set to close 269 stores as economic collapse begins
HangTheBankers

Wal-Mart is doing some rare pruning.

The world’s largest retailer is closing 269 stores, including 154 in the U.S. that includes all of its locations under its smallest-format concept store called Wal-Mart Express. The other big chunk is in its challenging Brazilian market.

The stores being shuttered account for a fraction of the company’s 11,000 stores worldwide and less than 1 percent of its global revenue. Wal-Mart Stores Inc. said the store closures will affect 16,000 workers, 10,000 of them in the U.S. Its global workforce is 2.2 million, 1.4 million in the U.S. alone. Read More

01.19.16- Peddling fiction...?
Bill Holter

“Peddling fiction” …this is what Mr. Obama said of anyone who believes and says the U.S. has a weak economy. How ironic he should say this when he did, the State of the Union address? I mean the timing could not have been any better! In a week where oil prices hit a 14 year low, freight rates at over 30 year lows, equity, credit and FOREX markets all over the world crashing and derivatives blowing up. How do we know derivatives are blowing up? Simply because the Dallas Fed has given their banks permission not to mark energy debt to market. In essence, the Fed has instructed their banks TO PEDDLE FICTION!

One must ask the question(s), how can the Fed really do this as accounting firms must sign off on any audits or official financial reports? Do the accounting firms also get “special waivers” to lie or as our fearless leader says “peddle fiction”? Also, how can the Fed really do this with a straight face? Did they really believe the markets would not sniff this out? Read More

01.18.16- Get Ready for the Obama Crash of 2016
Ron Holland

“With all of the quick fixes in our nation’s economy, Americans maysoon have to pay a heavy price. Holland expects that when the crash,which he refers to in his latest report as the “Greenspan Crash,”occurs, the initial market pullback for the Dow will be 25 percent. Aworst-case scenario, according to Holland, could resemble that of whathappened in Japan last year with the Dow possibly dipping as low as50-60 percent.” – Ron Holland, 1/20/1999

The last time Ron Holland a noted investment expert, writer and former president of a broker/dealer firm licensed for business in 47 states gave a major stock market crash warning was 17 years ago.  On January 20, 1999 Ron warned “Is the big crash coming” in an article on World Net Daily. Read More

01.16.16- US Economy – Slip-Sliding Away
Pater Tenebrarum

It must be China. Or the weather, which is usually either too cold or to warm – somehow the weather is just never right for economic growth. Surely it cannot be another Fed policy-induced boom that is on the verge of going bust? Sorry, we completely forgot – the Fed is never at fault when the economy suffers a boom-bust cycle. That only happens because we have “too few regulations” (that’s what Mr. Bernanke said after the 2008 bust – no kidding). Read More

01.15.16- The Chart That Explains Everything
Mike Whitney

Why is the economy barely growing after seven years of zero rates and easy money? Why are wages and incomes sagging when stock and bond prices have gone through the roof? Why are stocks experiencing such extreme volatility when the Fed increased rates by a mere quarter of a percent? It’s the policy, stupid. And here’s the chart that explains exactly what the policy is.

What the chart shows is that the vast increase in the monetary base didn’t impact lending or trigger the credit expansion the Fed had predicted. In other words, the Fed’s madcap pump-priming experiment (aka– QE) failed to stimulate growth or put the economy back on the path to recovery. For all practical purposes, the policy was a flop. Read More

01.14.16- The Dow Falls Another 364 Points And We Are Now Down 2200 Points From The Peak Of The Market
Michael Snyder

It was another day of utter carnage on Wall Street.  The Dow was down another 364 points, the S&P 500 broke below 1900, and the Nasdaq had a much larger percentage loss than either of them.  The Russell 2000 has now fallen 22 percent from the peak, and it has officially entered bear market territory.  After 13 days, this remains the worst start to a year for stocks ever, and trillions of dollars of stock market wealth has already been wiped out globally.  Meanwhile, junk bonds continue their collapse.  JNK got hammered all the way down to 33.06 as bond investors race for the exits.  In case you were wondering, this is exactly what a financial crisis look like. Read More

01.13.16- RBS cries 'sell everything' as deflationary crisis nears
Ambrose Evans-Pritchard

Clients told to seek safety of Bunds and Treasuries. 'This is about return of capital, not return on capital. In a crowded hall, exit doors are small'

RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel. Read More

01.12.16- Margin Call Gentlemen!
Bill Holter

Those who have been reading my work for any length of time know I have been adamant we would someday face a “global margin call”.  I believe this call was issued last week!  No matter how you look at the world, whether financially, geopolitically, macro, micro or whatever …what underlies everything in our world today is “credit”.  Credit is used to build, wage war, to produce and deliver, to consume or to trade, EVERYTHING runs on credit.  As a side note, in order for credit to be extended, the borrower must have some sort of “collateral”.  This collateral can be physical, financial, or simply “faith”, meaning a good credit rating or at least trust by the lender. Read More

01.11.16- CEO: “Valuations Are At Crazy Levels…
Like Nothing I’ve Seen Over My Career”

Mac Slavo

If the first week of 2016 has proven anything, it’s that the contrarian investors who have been warning of systemic breakdown in financial markets have been correct in their assessments that some of the world’s most well known brands and companies are significantly overvalued.

But the crazy valuation levels aren’t just limited to Wall Street darlings who saw prices of their stocks rise to all-time highs in recent years. Read More

01.09.16- The Systemic Failure of High Finance
Charles Hugh Smith

A number of systemic, structural forces are intersecting in 2016. One is the failure of high finance to fix the global economy’s systemic problems.

The operative conceit of the past 7 years has been that high finance can fix whatever’s broken in the world’s economies. According to this narrative, all the world needed to boost “growth,” employment and profits was lower interest rates, more liquidity, reverse repos and some other fancy financial footwork. Read More

01.09.16- The Systemic Failure of High Finance
Charles Hugh Smith

A number of systemic, structural forces are intersecting in 2016. One is the failure of high finance to fix the global economy’s systemic problems.

The operative conceit of the past 7 years has been that high finance can fix whatever’s broken in the world’s economies. According to this narrative, all the world needed to boost “growth,” employment and profits was lower interest rates, more liquidity, reverse repos and some other fancy financial footwork. Read More

01.08.16- Perfect Storm!
John Rubino

One of the (many) fascinating things about this latest global financial crisis is that there’s no single catalyst. Unlike 2008 when the carnage could be traced back to US subprime housing, or 2000 when tech stocks crashed and pulled down everything else, this time around a whole bunch of seemingly-unrelated things are unraveling all at once.

China’s malinvestment binge is crashing global commodities, an overvalued dollar is crushing emerging markets (most recently forcing China to devalue), the pan-Islamic war has suddenly gone from simmer to boil, grossly-overvalued equities pretty much everywhere are getting a long-overdue correction. Read More

01.07.16- The Most Important Stock Market Chart Today
Justin Spittler

U.S. stocks have opened the year with a flop.

Yesterday, the S&P 500 fell 1.5%. The Dow Jones Industrial Average fell 1.6%. At one point, the Dow was down 2.7%, which would have been its worst opening day since 1932.

All 10 sectors in the S&P 500 dropped yesterday. Financial and health stocks were the biggest losers, dropping more than 1.9% each. And 39 stocks hit new 52-week lows yesterday, compared to just three that hit new 52-week highs. Read More

01.06.16- Teenagers just learned what happens when you start a business in America
Simon Black

When I was a teenager, it was pretty common for young people in my lower-middle class neighborhood to find work.

I was a waiter myself… though probably one of the worst in history, as I may still hold the record at Tippin’s Restaurant and Pie Pantry for the most cups of coffee spilled on patrons.

A lot of other kids would do odd jobs like cutting the grass and whatnot. And some of them were pretty successful at it. Read More

01.05.16- This Time It Isn't Different
Jim Quinn

Last year ended with a whimper on Wall Street. The S&P 500 was down 1% for the year, down 4% from its all-time high in May, and no higher than it was 13 months ago at the end of QE3. The Wall Street shysters and their mainstream media mouthpieces declare 2016 to be a rebound year, with stocks again delivering double digit returns. When haven’t they touted great future returns. They touted them in 2000 and 2007 too. No one earning their paycheck on Wall Street or on CNBC will point out the most obvious speculative bubble in history. John Hussman has been pointing it out for the last two years as the Fed created bubble has grown ever larger. Those still embracing the bubble will sit down to a banquet of consequences in 2016. Read More

01.04.16- Dow kicks of 2016 with 400-point plunge on China fears
Anora Mahmudova

The Dow Jones Industrial Average plunged about 400 points in early trade Monday as a 7% drop in Chinese shares stoked a global selloff in stocks.

The Dow DJIA, -2.21%  plunged nearly 411 points to 17,015, led by a drop in DuPont Co. DD, -4.20%  and American Express Co. AXP, -2.90%

The S&P 500 SPX, -2.16%  fell about 45 points to 1,998, led by a decline in technology stocks, financials and industrials. Only the S&P 500’s energy sector showed a modest gain as Middle Eastern tensions helped lift crude-oil prices. Read More

01.02.16- The Herd is Heading for a Cliff
Jim Quinn

You would think investors (muppets) would be grateful for the extended topping process of the stock market, as it has given them the opportunity to exit before the inevitable crash. As CNBC and the rest of the mainstream media spin bullish stories to keep the few remaining mom and pop investors sedated and the millions of passive working Americans invested in their 401ks, the Wall Street rigging machine siphons off billions in ill-gotten gains, while absconding with fees for worthless advice. Read More

01.01.16- 2015 Was The Worst Year For The Stock Market Since 2008
Michael Snyder

It’s official – 2015 was a horrible year for stocks.  On the last day of the year, the Dow Jones Industrial Average was down another 178 points, and overall it was the worst year for the Dow since 2008.  But of course the Dow was far from alone.  The S&P 500, the Russell 2000 and Dow Transports also all had their worst years since 2008.  Isn’t it funny how these things seem to happen every seven years?  But compared to other investments, stocks had a relatively “good” year.  In 2015, junk bonds, oil and industrial commodities all crashed hard – just like they all did just prior to the great stock market crash of 2008.  According to CNN, almost 70 percent of all investors lost money in 2015, and things are unfolding in textbook fashion for much more financial chaos in 2016. Read More

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