Posts Tagged ‘government policies’

THOSE WHO IGNORE HISTORY….

THOSE WHO IGNORE HISTORY….

Courtesy of The Pragmatic Capitalist 

Elderly Asian woman in kimono standing on bridge

My position over the last 2 years has been as follows: this is a Main Street debt crisis.  I have been highly critical of the government’s incessant interventionist policies over the last few years largely because they ignore the actual problems at hand.  First it was Mr. Bernanke saving the banks because he believed the credit crisis started with the banking sector.  The great monetarist gaffe ensued.  Tim Geithner piled on with the PPIP.  FASB jumped on board the bank rescue plan by altering the accounting rules.  And then the icing on the cake was the Recovery Act, which, in my opinion, just shoveled money into the hole that had become the output gap, without actually trying to target the real cause of the crisis – those burdened by the debt.  In essence, the various bailouts primarily targeted everyone except the people who really needed it.

A year ago I posted a story citing the many reasons why we were sinking into the deflationary Japanese trap.  The primary flaw with the US response to the crisis was that we never actually confronted the problem at hand.  I have often cited Japanese economists such as Richard Koo who appear to have a good grasp on the problems in Japan and now in the USA.  In this case, I cited Keiichiro Kobayashi who is now looking most prescient:

We continue to ignore our past and the warnings from those who have dealt with similar financial crises. Keiichiro Kobayashi, Senior Fellow at the Research Institute of Economy, Trade and Industry is the latest economist with an in-depth understanding of Japan, who says the U.S. and U.K. are making all the same mistakes:

“Bad debt is the root of the crisis. Fiscal stimulus may help economies for a couple of years but once the “painkilling” effect wears off, US and European economies will plunge back into crisis. The crisis won’t be over until the nonperforming assets are off the balance sheets of US and European banks.”

Read that last paragraph again.  These are scarily accurate comments.  While the USA claims to have many economists who understand the Japan disease and/or the Great Depression the policy actions we’ve undertaken do not appear to be in line with any understanding of this history.

What we’ve done over the last few years is repeat the mistakes…
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Voters Madder Than Ever; 63% Say Better If Congress Not Reelected; Can Republicans Retake The House?

Voters Madder Than Ever; 63% Say Better If Congress Not Reelected; Can Republicans Retake The House? 

Courtesy of Mish 

Here are a few polls from Rasmussen in January and February that many will find interesting. 

Group of people with arms raised above heads, close-up of hands

75% Are Angry At Government’s Current Policies

Voters are madder than ever at the current policies of the federal government.

A new Rasmussen Reports national telephone survey shows that 75% of likely voters now say they are at least somewhat angry at the government’s current policies, up four points from late November and up nine points since September. The overall figures include 45% who are Very Angry, also a nine-point increase since September.

Just 19% now say they’re not very or not at all angry at the government’s policies, down eight points from the previous survey and down 11 from September. That 19% includes only eight percent (8%) who say they’re not angry at all and 11% who are not very angry.

63% Say Better for Country If Most of Congress Not Reelected

A new Rasmussen Reports national telephone survey finds that 63% of likely voters believe, generally speaking, that it would be better for the country if most incumbents in Congress were defeated this November.

Just 19% disagree and say it would be better if most congressional incumbents were reelected. Another 18% aren’t sure.

59% Say Cut Taxes to Create Jobs, 14% Expect Congress to Listen

The latest Rasmussen Reports national telephone survey finds that 59% of voters nationwide believe cutting taxes is better than increasing government spending as a job-creation tool.

Only 15% of voters hold the opposite view and believe that increasing government spending is the better approach.

However, while voters overwhelmingly think cutting taxes is the better approach, they also overwhelmingly expect Congress and President Obama to take the opposite approach. Seventy-two percent (72%) say the nation’s elected politicians are more likely to increase government spending than cut taxes. Only 14% think they’ll cut taxes instead.

Only 21% Say U.S. Government Has Consent of the Governed

Seventy-one percent (71%) of all voters now view the federal government as a special interest group, and 70% believe that the government and big business typically work together in ways that hurt consumers and investors.

45% Say Random Group From Phone Book Better Than Current Congress

More voters have greater confidence in the telephone book these days


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Phil's Favorites

Insider trading has become more subtle

 

Insider trading has become more subtle

Michael Douglas in Wall Street: Money Never Sleeps (2010)

Courtesy of Barry Oliver, The University of Queensland

Insider trading comes in two main forms: arguably legal and clearly illegal.

But, as with drugs in sport, it’s hard to tell when arguably legal ends and clearly illegal begins.

It is generally accepted that it is wrong to buy shares in the company you run when you know something about it that the market does not.

It’s especially wrong to buy shares when you are telling the market that things are much worse for the company than you know them to be.

But what a...



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Kimble Charting Solutions

History Says Gold Correction Could Lead to Big Rally!

Courtesy of Chris Kimble

Over a decade ago, Gold rallied past its 1980 highs and over $1000/oz at (1) on today’s chart.

That rise to new highs was met with a 30 percent correction at (2), followed by a blast off rally to new highs.

Is gold setting up for a repeat of its past?

Gold recently rallied past its 2011 highs and above $2000/oz. Could Gold soon turn lower for a sharp correction before another blast off toward $3000?

If so, Gold bulls should look for a pullback, before blasting higher. Stay tuned!

This article was first written fo...



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ValueWalk

Berkshire Hathaway's Second-Quarter Earnings

By Jacob Wolinsky. Originally published at ValueWalk.

Whitney Tilson’s email to investors discussing Berkshire Hathaway’s second-quarter earnings; it feels like deja vu all over again; it may be time for bank stocks to trade higher; the lowest-ever u.s. junk bond yield; your worst 1%.

Q2 2020 hedge fund letters, conferences and more

Berkshire Hathaway's Second-Quarter Earnings

1) My longtime friend and former partner, Glenn Tongue, is the ax on Berkshire Hathaway (BRK-B).

So, as I do every quarter, I asked if he'd share his thoughts on Berkshire Hathaway's second-quarter earnings report (here are links to the ...



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Zero Hedge

El Erian: Reading The Dollar Doldrums

Courtesy of ZeroHedge View original post here.

Authored by Mohamed El-Erian via Project Syndicate,

A sharp decline in the relative value of the dollar this year has been met with cheers from those hoping for a short-term boost to the US economy, and with hand-wringing by those worried about the currency's global standing. But while both views reflect underlying truths, neither tells the whole story.

...



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Biotech/COVID-19

New Study Finds Potential Reason Why COVID-19 Occurs Less In Children

By Paula Liu via The Epoch Times, via ZeroHedge

The reason COVID-19 occurs less frequently in children could be due to the lack of a certain enzyme, researchers have found.

This new study detailed in the Journal of the American Medical Association ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Chart School

Silver Big Channel

Courtesy of Read the Ticker

Big channels are the sand pit of price action. Lets review some big trends of these past months.


GLD
- Moving higher to upper solid red line channel


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XAU
- Ready to pause, or simply explode.



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SILVER
- Ready to pause, or simply explode.


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Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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