Archive | Mainstream News

China markets get obliterated. This is why you need to pay attention.

It’s been an ugly week for Chinese equities, but today’s performance is a whole other level of ugly: Today marked the fourth largest decline of the Shanghai Composite in two decades. We’ve discussed the insane valuations on the Shanghai and Shenzen stock-exchange before. As our regular readers will know, today’s fireworks have been a long time in […]

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Why do we survey economists’ opinions when the majority are wrong?

When it comes to the question of when (and if) the Federal Reserve will raise interest rates, we’re not really sure why the media continues to report on “what economists think“.   It’s clear to anyone who is paying attention that economists are not good at making predictions, and that the consensus of economists has been consistently wrong after […]

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The Financial Singularity Cometh

More than two millennia ago Plutarch wrote these simple words:  “An imbalance between rich and poor is the oldest and most fatal ailment of all republics”. The real zinger of a word there is “fatal“. History has shown us time and again that a nation can not and will not survive once the disparity between rich and poor passes a […]

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Breach shows government can’t protect data. But FBI wants to abolish encryption anyway.

By now, everyone has heard that the US government was “hacked” by Chinese hackers who may or may not have been affiliated with the Chinese government.   President Obama wasted little time in stirring up the hornet’s nest by pointing the finger at the Chinese premier and demanding that China take responsibility for the breach.  The […]

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Fed just said it will raise rates when economy of the WORLD improves.

The greatest disconnect in the world today must be the vast chasm between what the Federal Reserve “thinks we think” and what the rest of us “actually think”. What the Fed “thinks we think” is that there’s some significant possibility that they will raise rates sometime soon. What we “actually think” is that any meaningful hike in rates will instantly […]

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The Israel-Palestine Conflict: Do we care about it too much?

We receive lots of emails asking us to post or re-print political articles.   A sizable percentage of them concern that perennial favorite:  The Israeli-Palestinian conflict. Our short answer is: No.  We’re not going there. We’re not here to weigh-in on who’s right and who’s wrong the world’s most popular conflict.  Everyone else is already doing that ad nauseum.  But […]

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Rick Santelli vs. the Talking Heads

Today’s pro-Fed vs. anti-Fed showdown on CNBC was highly entertaining and highly infuriating all at the same time. Here’s the problem with the closing argument: Those that argue that ‘the market has risen ergo the Fed has succeeded’ not only misunderstand the role of the Federal Reserve (as Santelli pointed out), or to whom the benefits […]

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What if we discussed food and healthcare inflation like we discuss housing?

“Economists  announced the positive news that both food and healthcare prices are up strongly today showing a promising growth trend since the beginning of the year.   The malaise in food prices is now seen as over, and positive growth is indicated for the next two quarters.   The rise in healthcare prices is particularly robust, as […]

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