H/t reader M.G.:
“Another article on Greece from Bloomberg…..does not address many of the points the NY times did……..but at least they are mentioning it…”
- Greece’s Debt Crisis Explained (Bloomberg, March 25, 2015):
Time is running out for Greece. By early April, the Greek government will have a bond payment come due, and there will be no way for the government to make the payment unless it gets a fresh tranche of cash from its creditors, who are in large part euro zone governments.
H/t reader M.G.:
“Here is a story that ought to be worrying every state of the EU and the US economy……..Greece.
Greek officials are meeting with Russian and Chinese leaders…..Greek leaders already assuring China they have a place in the largest Greek shipping port. Russia and China are financial and political allies, and together, they could easily step in and help Greece if they leave the Euro…..
If Greece leaves the Euro, it will start a financial unraveling that will spread throughout the Euro Zone and the US……”
- Greece Looks to Russia as Deal With Europe Stumbles (New York Times, March 30, 2015):
THENS — With the prospect of a default looming in Greece, Prime Minister Alexis Tsipras is preparing to meet next week with President Vladimir V. Putin of Russia as a European deal to give more aid to Athens falters.
The timing has raised questions of whether the visit is an ordinary component of the new Greek government’s multipronged foreign policy, or a pivot toward Russia for financial aid in the event that Greece’s talks with European officials collapse. Continue reading »
- Every young person should see the Fed’s startling numbers on student debt (Sovereign Man, March 30, 2015):
What I’m about to tell you is not my own opinion or even analysis. It’s original data that comes from the United States Federal Reserve and national credit bureaus.
- 40 million Americans are now in debt because of their university education, and on average borrowers have four loans with a total balance of $29,000.
- According to the Fed, “Student loans have the highest delinquency rate of any form of household credit, having surpassed credit cards in 2012.”
- Since 2010, student debt has been the second largest category of personal debt, just after a home mortgage.
- The delinquency rate for student loans is now hovering near an all-time high since they started collecting data 12 years ago.
- Only 37% of total students loan balances are currently in repayment and not delinquent.
The rest—nearly 2 out of 3—are either behind on payments, in all-out default, or have entered some sort of deferral program to delay making payments, with a small percentage still in school.
It’s pretty obvious that this is a giant, unsustainable bubble (more on this below). But even more important are the personal implications. Continue reading »
As I’ve said many times before:
“Only physyical gold and silver are real.
Everything else is an illusion.”
Paper investments in gold and silver will not be covered and there is a bloodbath coming.
The coming crisis will make 2008 look like a walk in the park.
- Madness Coming To Gold Market: “There Are Thirty to Fifty Owners For Each Ounce of Gold That’s Out There” (SHFTplan, March 25, 2015):
Though the price of gold has seen a significant drop over the last two years from it’s all time highs of about $1900 per ounce, many experts and analysts believe that western central banks and their colleagues at major financial institutions have been manipulating the price. The rampant manipulation is believed to stem, in part, from the formerly Rothschild owned London Gold Fix, an organization made up of five large banks that make a daily determination of what the price of gold should be.
It is this unilateral control by western banks that recently prompted the Chinese to create their own Shanghai Gold Exchange. What separates the two is that the Chinese will be using their currency, the Yuan, as the reserve rather than the U.S. Dollar. Moreover, unlike their European counterparts, the Chinese will be trading in actual physical dollars.
- The Price Of Ground Beef Has DOUBLED Since The Last Financial Crisis (Economic Collapse, March 25, 2015):
Since the depths of the last recession, the price of ground beef in the United States has doubled. Has your paycheck doubled since then? Even though the Federal Reserve insists that we are in a “low inflation” environment, the government’s own numbers show that the price of ground beef has been on an unprecedented run over the past six years. In early 2009, the average price of a pound of ground beef was hovering near 2 dollars. In February, it hit a brand new all-time record high of $4.238 per pound. Even just 12 months ago, the price of ground beef was sitting at $3.555 per pound. So we are talking about a huge increase. And this hits American families where they really live. Each year, the average American consumes approximately 270 pounds of meat. The only nation in the world that eats more meat than we do is Luxembourg. If the paychecks of American workers were going up fast enough to deal with this increase, it wouldn’t be that big of a deal. But of course that is not happening. In an article just last week, I showed that real median household income is a couple thousand dollars lower now than it was during the depths of the last recession. The middle class is being squeezed, and we are rapidly getting to the point where burgers are going to be considered a “luxury” item. Continue reading »
- The Canadian Housing Bubble Has Begun To Burst (ZeroHedge, March 24, 2015):
Energy accounts for 10% of Canadian GDP and around 25% of exports and the swift fall in oil prices is having a profound effect in the nation’s oil producing regions where home sales are collapsing by as much as 65%.
- China Lands Hard: Rail Volume Plunges, PMI Tumbles Into Contraction, Employment Worst Since Lehman (ZeroHedge, March 23, 2015):
Chinese rail freight collapses 9.1% YoY; China Manufacturing PMI tumbled back to a contractionary 49.2 – lowest in 11 months; and the Employment sub-index plunged to its lowest since Lehman … yeah but apart from that, everything is awesome. And for those excited about just how disastrous Chinese data is (and thus how huge the next stimulus unleashing will be), think again – China now sees exactly where the last trillion dollar QE went… a de minimus and unsustained blip in the economy and liquidity-fueled rampage in stocks (which is not what a corruption-crackdown politburo wants to encourage).
- Why Greece is the lynchpin that could unleash economic collapse, domestic martial law and global war (Natural News, March 23, 2015):
I wish I could download to your brain everything you need to know about the European Crisis unfolding right now. The possibility of the breakup of the European Union could be the spark that sets off the global debt implosion that leads to violent conflict across the globe.
The actions of Greece, it turns out, could set off a chain reaction that leads directly to a Wall Street panic and the “bail-in” seizure of your savings accounts at your favorite hometown bank. It could also radically destabilize Eastern Europe, heightening the risk for conflict between Russia and Western European nations (including NATO members like the United States).
Continue reading »
- Who Left the Crash Window Open? (OfTwoMinds, March 22, 2015):
Can stocks keep hitting new highs even as sales and profits fall?Given that we live in a world where a modest 3% decline in the stock market triggers panicky demands for more quantitative easing (QE 4), few observers expect much a correction, regardless of the souring fundamentals such as sales and profits.
A correspondent notified me of a Puetz “crash” window (based on the analysis of Stephen J. Puetz) opening in late March-early April. (Since I am not a subscriber to Puetz’s work, I can’t confirm this.) As I understand it, while these windows do not predict a crash/sharp correction, such moves tend to occur in these windows, which are based on cycles and events such as eclipses.So I decided to look for any evidence that a sharp correction might be in the offing. Continue reading »
“Article from The Telegraph…..liquidity crisis could fire up the next financial crash.
- Liquidity crisis could spark the next financial crash (Telegraph, March 21, 2015):
Traders warn of a global credit ‘meltdown’ if corporate bond markets don’t improve
For Norval Loftus, chief investment officer at Allegra Asset Management, trading corporate bonds is not as easy as it used to be.
“It’s like night and day compared with six or seven years ago,” the bond market veteran says. “There’s no comparison. It’s even tougher than it was six or seven months ago. It’s getting more and more difficult all the time.”
He is not alone. Investors across corporate bond markets are finding it harder to buy and sell company debt. And some investors are beginning to fear that the lack of liquidity will be the spark that ignites the next crisis in financial markets. Continue reading »
- Pink Slips: 100,000 Jobs Wiped Out Amid Oil Price Collapse: “Spreading Like Cancer” (SHFTplan, March 21, 2015):
Low oil prices are good for America according to President Obama. In fact, he has personally taken credit for the savings you’re experiencing.
In a normal economy lower prices at the pump would certainly help to spur growth in other sectors. The problem, of course, is that the new normal means that oil companies and banks leveraged heavily as prices rose. They assumed, like real estate speculators ahead of the 2008 crash, that the price of oil could only go in one direction. As we’ve seen in recent months, however, oil speculation is exactly that and despite our dependency on black gold the energy industry is not immune from massive price swings.
The consequences will be two-fold and the cracks are already starting to appear. Continue reading »
From the article:
“I don’t think there is much space left to fill, …”
- Just as Global Oil Glut Deepens, China Cuts Oil Imports (Testosterone Pit, March 20, 2015):
“We don’t want to lose our share in the market,” Kuwait Oil Minister Ali al-Omair said on Thursday. OPEC had to maintain production despite the plunge in price since last summer, he said, underscoring Saudi Arabia’s position. OPEC would not cut production to goose prices. It would not let the American fracking boom off the hook.
The price of oil promptly dropped, annihilating much of the Fed-inspired rally the day before.
No one wants to cut production. In the US, production is still soaring. Demand is lackluster. What gives? Crude oil is piling up around the globe.
- 10 Charts Which Show We Are Much Worse Off Than Just Before The Last Economic Crisis (Economic Collapse, March 18, 2015):
If you believe that ignorance is bliss, you might not want to read this article. I am going to dispel the notion that there has been any sort of “economic recovery”, and I am going to show that we are much worse off than we were just prior to the last economic crisis. If you go back to 2007, people were feeling really good about things. Houses were being flipped like crazy, the stock market was booming and unemployment was relatively low. But then the financial crisis of 2008 struck, and for a while it felt like the world was coming to an end. Of course it didn’t come to an end – it was just the first wave of our problems. The waves that come next are going to be the ones that really wipe us out. Unfortunately, because we have experienced a few years of relative stability, many Americans have become convinced that Barack Obama, Janet Yellen and the rest of the folks in Washington D.C. have fixed whatever problems caused the last crisis. Even though all of the numbers are screaming otherwise, there are millions upon millions of people out there that truly believe that everything is going to be okay somehow. We never seem to learn from the past, and when this next economic downturn strikes it is going to do an astonishing amount of damage because we are already in a significantly weakened state from the last one.
For each of the charts that I am about to share with you, I want you to focus on the last shaded gray bar on each chart which represents the last recession. As you will see, our economic problems are significantly worse than they were just before the financial crisis of 2008. That means that we are far less equipped to handle a major economic crisis than we were the last time. Continue reading »
- One Last Look At The Real Economy Before It Implodes – Part 3 (Alt-Market, March 18, 2015):
In the previous installments of this series, we discussed the hidden and often unspoken crisis brewing within the employment market, as well as in personal debt. The primary consequence being a collapse in overall consumer demand, something which we are at this very moment witnessing in the macro-picture of the fiscal situation around the world. Lack of real production and lack of sustainable employment options result in a lack of savings, an over-dependency on debt and welfare, the destruction of grass-roots entrepreneurship, a conflated and disingenuous representation of gross domestic product, and ultimately an economic system devoid of structural integrity — a hollow shell of a system, vulnerable to even the slightest shocks. Continue reading »
- 100,000 Layoffs And Counting: Is This The New Normal? (Oil Price, 17, 2015):
This time a year ago, the oil industry’s biggest problem was finding a way to deal with the “retirement tsunami” about to crash down on it as older oilfield workers hung up their cork boots to enjoy freedom-55. Now, with oil prices still in the doldrums, many of those same workers are lucky to be hanging onto their jobs, while others have been booted from the payroll as an ugly wave of layoffs takes hold.
One of the worst-affected areas is the Canadian oil sands, where a higher per-barrel cost of production than conventional sources has oil companies scrambling to cut capital expenditures and in several cases, put long-term projects on ice. Continue reading »
- Paul Tudor Jones Warns This “Disastrous Market Mania” Will End “By Revolution, Taxes, Or War” (ZeroHedge, March 20, 2015):
“This gap between the 1% and the rest of America, and between the US and the rest of the world, cannot and will not persist,” warns renowned trader Paul Tudor Jones during his recent TED Talks speech, as he addressed the question – can capital be just? Hoping to expand the “narrow definitions of capitalism,” that threaten the underpinnings of society, Tudor Jones exclaims, “we’re in the middle of a disastrous market mania,” adding “one of worst of my life.” Perhaps most ominously, he concludes, historically this ends “by revolution, higher taxes or wars. None are on my bucket list.”
Can capital be just? As a firm believer in capitalism and the free market, Paul Tudor Jones II believes that it can be. Tudor is the founder of the Tudor Investment Corporation and the Tudor Group, which trade in the fixed-income, equity, currency and commodity markets. He thinks it is time to expand the “narrow definitions of capitalism” that threaten the underpinnings of our society and develop a new model for corporate profit that includes justness and responsibility. Continue reading »
- How Many Shale Oil Plays Make Money At $37 Per Barrel? (Spoiler Alert: None) (The Burning Platform, March 18, 2015):
I’m tossing you a softball. Now think carefully. The choices are:
I know Americans are math challenged and need a calculator to subtract 10 from 20, but I think even a CNBC bimbo or Princeton economic professor could get this one right.
Last year there was much banter from the Wall Street shysters and Bakkan shale oil experts about the true breakeven price for shale oil not being $80 (which is the truth) but actually being as low as $58 a barrel. They were spreading this lie in order to keep idiot investors buying the stocks and bonds of these fly by night shale oil companies.
- The Unraveling Is Gathering Speed (OfTwoMinds, March 18, 2015):
Debt saturation and debt fatigue = diminishing returns on central bank tricks.Does anyone else have the feeling that things are not just unraveling, but that the unraveling is gathering speed?Though quantifying this perception is more interpretative than statistical, I think we can look at the ongoing debt crisis in Greece as an example of this acceleration of events. Continue reading »
More info here:
- Dollar Flash Crashes: Currency Market Pulverized As Dollar Implodes After Close (ZeroHedge, March 18, 2015):
Complete Currency Carnage…
At 1604ET – the FX world went crazy…
As The Dollar flash-crashed…
In 2002 (Source)
- Maserati Sales Tumble 43% (ZeroHedge, March 17, 2015):
Just blame it on the weather, because everyone knows no self-respecting 1%-er would be caught dead driving (or being driven) to their nearest Maserati dealership in their snow-ploughing $100K Range Rover, when it is snowing outside. In the middle of winter.
End result: only 481 Maseratis were sold in all of the US in February, a plunge of 43% from a year ago (following a 20% drop in January) back when it was the Polar Vortex’s fault that Q1 2014 GDP went from an initially forecasted 3.5%, to -2.5%.
But this time the snow is different.