Posts Tagged ‘Financial Armageddon’

Bad C’s

Bad C’s prompts me to recycle my introduction to George Washington’s Blog’s "The Ongoing Cover Up of the Truth Behind the Financial Crisis May Lead to Another Crash":

Our freedom depends on our government enforcing and abiding by the law. It’s apparent that we are headed down the slippery slope Justice Louis Brandeis describes in Olmstead v. United States (1928):Justice Louis Brandeis

"In a government of laws, the existence of the government will be imperiled if it fails to observe the law scrupulously. Our government is the potent, the omnipotent teacher. For good or ill, it teaches the whole people by its example. Crime is contagious. If government becomes a lawbreaker it breeds contempt for law: it invites every man to become a law unto himself. It invites anarchy."

We have the Federal government’s massive and flagrant display of lawlessness, and population somewhere on the way from apathy to dependency in the Fatal Sequence cycle of civilization. – Ilene

Michael Panzner elaborates on this theme: 

Bad C’s

Courtesy of Michael Panzner of Financial Armageddon

Before the era of Frankenstein Finance and the fanatical focus on fee-based income, lenders tried to hold themselves out as models of probity (for the skeptics out there, I did say "try."). Those responsible for making credit-granting decisions and looking after the interests of shareholders also demanded that borrowers meet certain standards before they would see even a dime of their employers’ money. These criteria are known as the "5 C’s of Credit," which are the

key elements a borrower should have to obtain credit: character (integrity), capacity (sufficient cash flow to service the obligation), capital (net worth), collateral (assets to secure the debt), and conditions (of the borrower and the overall economy).

In an interesting twist of fate, the firms that have traditionally decided who should get credit have been put in the position of needing extraordinary amounts of other people’s money just to stay alive. Unfortunately, based on what we’ve seen so far, including reports like those that follow, it’s doubtful whether most, if not all, of today’s troubled financial institutions would even qualify for a loan based on traditional measures of suitability — like "character," for example — if their friends in high places weren’t so intimately involved in the process.

"Wall Street’s


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A Little Financial Armageddon-Style Humor

A Little Financial Armageddon-Style Humor

Courtesy of Michael Panzner of Financial Armageddon

The only way to deal with tragedy is to laugh at it.
--Indra Sinha

I serve up plenty of bad news on this site, but that doesn’t mean I’m a gloomy person. In fact, I enjoy a good laugh as well as the next guy (or girl). So, without veering too far away from the usual topics of discussion, I bring you a little Financial Armageddon-style humor:

First up: a report from Britain’s Sky News, "Credit Crunch Calendar Is Surprise Hit":

Februarycalendar

The revelation that Britain is still in recession could be good news for a surprise bestseller which ‘celebrates’ the decay wrought by the downturn.

Each month of the Credit Crunch Calendar features a depressing image of economic decline, such as closed-down shops and vandalised factories.

Covercalendar
 

The depiction of a derelict Woolworths – the old retail favourite which became a symbol of high street failure – adorns the front cover.

The product is the brainchild of Worcestershire printer Kevin Beresford, whose creations also include the Round-A-Bouts Of Great Britain range of calendars.

The UK’s downtrodden industrial landscape, viewed up-close on his many roundabout-spotting trips, moved Mr Beresford to create his chronicle.

He told Sky News: "I was just looking at all these sad, depressing things and wondered if I could turn it around and put a positive, quirky slant on it.

"I thought ‘What the hell, we’re in a recession anyway – we may as well laugh instead of cry about it’."

And last but not least: "Bohemian Bankruptcy – A Tragedy by Drag Queen," a satire from iBall, a daily video blog for investors from Britain’s Interactive Investor (via YouTube):

(Hat tip to EF.)


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Armageddon, Round Two?

Armageddon, Round Two?

Courtesy of Michael Panzner at Financial Armageddon

In Financial Armageddon, I wrote about "four impending catastrophes": debt, government guarantees, the retirement system, and derivatives. But well before the first pages of my manuscript saw the light of day, I was particularly concerned about the latter aspect.

In fact, I’ll let you in on a little secret: the article I published in November 2005, "The Coming Disaster in the Derivatives Market," was actually derived from material in my original book proposal, tentatively entitled FWMDs: Financial Weapons of Mass Destruction, after Warren Buffett’s famous remarks on the subject in Berkshire Hathaway’s 2002 annual report.

Eventually, the publisher and I decided that there was a bigger story there, which proved to be far more accurate than anybody (including me) realized at the time, and I set forth my vision of how the derivatives menace would come to interact with the various other threats I saw lurking in the shadows.

Yet even with all that has happened so far, it’s hard to ignore the fact that the house of cards that was built on this labyrinthine mass of paper promises remains a serious threat to the financial system and the economy.

To be sure, I’m not the only one who feels this way. Even some of the better known financial experts are worried, as CNBC.com reveals in "Derivatives Could Cause Another Meltdown: Mobius":

Derivatives caused the market Armageddon of recent years and if left unchecked by global leaders, the same market could cause another catastrophe, Mark Mobius, executive chairman of Templeton Asset Management, told CNBC Monday.

When asked by a CNBC viewer what kind of Armageddon could be expected if the derivatives problem is not addressed, Mobius replied: “The same kind of Armageddon that we just had, what we just saw in the last few years has been caused by derivatives.”

The lack of liquidity, transparency, coupled with its sheer size means the derivatives market poses a major risk to financial stability, according to Mobius. The currency derivatives market is especially at risk of causing problems, but interest-rate derivatives also, he said.

Mobius thinks that global leaders meeting for the G20 summit in Pittsburgh next week should focus almost solely on the derivatives trade. Debates over how much bankers are paid in bonuses should be bumped down the agenda,


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Phil's Favorites

How many Americans really misuse opioids? Why scientists still aren't sure

 

How many Americans really misuse opioids? Why scientists still aren't sure

Defining opioids. Darwin Brandis/shutterstock.com

Courtesy of Joseph Palamar, New York University Langone Medical Center

With rates of prescription opioid use disorder and opioid-involved overdose deaths on the rise, the U.S. opioid crisis appears to be continuing unabated.

Data on overdose and de...



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Kimble Charting Solutions

King Dollar Created Multi-Year Topping Pattern?

Courtesy of Chris Kimble.

The currency markets often play a role in asset management for investors. And one key asset that pays close attention to the US Dollar is Gold (and precious metals). Could a near-term trend change be in store for the US Dollar… and its counterpart, the Euro? Precious metals bulls would love to see the US Dollar topping and the Euro bottoming.

In the chart below, you can see that the two currencies are showing similar reversal patterns – a traditional head and shoulders top for the US Dollar Index and an inverted head and shoulders bottom for the Euro.

BUT, they need to confirm these pattern by breaking down / up.

It’s worth noting that NOTHING has been proved so far, but the potential of both creating longer-term reversal patterns is there and traders should stay tuned.

US D...



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Zero Hedge

Italy's 5 Star Threatens To Ditch Coalition Over Budget Talks, Italian Bonds Slide

Courtesy of ZeroHedge. View original post here.

While the market turmoil over Italy's budget has quieted down in recent weeks as a result of soothing words by the ruling coalition that it would comply with European demands, that snapped moments ago when DPA reported that the leader of Italy's Five Star Movement has threatened to pull the plug on the country's populist government if it cannot find money to implement election campaign promises.

"If we do not find the resources to do what we have said, then it is better for us to go home, there is no point in...



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ValueWalk

How Soon Will A.I. Replace All The Traders: Q&A With Gaurav Chakravorty, CIO Of Qplum

By Jacob Wolinsky. Originally published at ValueWalk.

VW: Tell our readers, what is Qplum?

Qplum is an AI-driven investment management firm. We manage money for individuals, families, and institutions. We actively manage investments using machine learning and deep learning technology.

Our three product lines are:

  1. Wealth, servicing the financial needs of individuals and families via separately managed accounts.
  2. Alpha, for institutional clients only, where we offer different products like GTAA (Global Tactical Asset Allocation), managed futures program, etc. and
  3. Solutions, where we work on customized tactical asset allocation solutions for pension funds and family offices to target a dual loss-aversion and return-seeking investment mandate.

[REITs]

...

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Digital Currencies

Mania to Mania

 

Mania to Mania

Courtesy of 

“Russell rarely played the stock market and had little investing experience when he put around $120,000 into bitcoin in November 2017.”

This comes from a CNN money article, Bitcoin crash: This man lost his savings when cryptocurrencies plunged. From January 2017 through the peak in early 2018, Ethereum gained 16,915%.

Any time you have something go vertical, you just know that some peopl...



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Insider Scoop

A Peek Into The Markets: US Stock Futures Flat Ahead Of Housing Starts, Current Account Data

Courtesy of Benzinga.

Pre-open movers

U.S. stock futures traded mostly flat in early pre-market trade. Data on housing starts for August and the current account report for the second quarter will be released at 8:30 a.m. ET.

Futures for the Dow Jones Industrial Average fell 1 point to 26,273.00, while the Standard & Poor’s 500 index futures traded declined 2 points to 2,909.75. Futures for the Nasdaq 100 index slipped 1.5 point to 7,523.

Oil prices traded ...



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Chart School

Weekly Market Recap Sep 16, 2018

Courtesy of Blain.

Slow and steady drip up all this past week in a very quiet news environment.  A gap down top open the day Tuesday (which was recovered quickly) and a gap up Thursday (which held) were the highlights!

The latest on TRADE WARS!(tm):

Tuesday, news hit that China vowed to retaliate and plans to ask the World Trade Organization next week for permission to impose sanctions on the U.S. for Washington’s noncompliance with a ruling in a dispute over U.S. dumping duties, Reuters reported. That’s part of a dispute that goes back to 2013.

“Trade wars are certainly a concern, but I don’t know that they’re a one...



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Members' Corner

Nike, Colin Kaepernick and the pitfalls of 'woke' corporate branding

 

Adding this article to Members Corner, in case anyone wants to share their opinions on Nike and Kaep, or on divisiveness in general. Also see the article I mentioned in the comments section, "A Warning From Europe: The Worst Is Yet to Come" and What’s behind the current wave of ‘corporate activism’? ~ Ilene

Nike, Colin Kaepernick and the pitfalls of 'woke' corporate branding

Courtesy of Simon Chadwick, University of Salford...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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