Posts Tagged ‘LIQUIDATIONISM’

Where We Are Today: Interest Rates ‘Too High,’ Double Dip on Deck, the Failure of Economics

Key point: "Reform is the only solution that is sustainable. Austerity or stimulus without reform are worse than useless." I post many articles discussing virtues and vices of more stimulus vs. the benefits and evils of austerity measures.  But I think Jesse has it precisely correct. – Ilene 

Where We Are Today: Interest Rates ‘Too High,’ Double Dip on Deck, the Failure of Economics

Courtesy of JESSE’S CAFÉ AMÉRICAIN

David Rosenberg of Gluskin Sheff is a daily read of mine. His most recent breakfast message does a remarkably concise job of summarizing the US financial markets.

The reason for the gold market rally is obvious; declining production in the face of record monetization and increasing demand. The same financial engineers in the central banks that ruined the economy had been suppressing the price of gold through managed sales for almost thirty years in a desperate reaction to the Nixon assault on Bretton Woods in 1971. And now we see the fruits of their long contrivance, and its inevitable failure. The world will have to develop a replacement to this incredible farce we call globalization and world trade based on arbitrary and easily manipulated values.

At the same time, Dave points out that according to the Taylor Rule the Fed is overly tight, even with ZIRP! We have spoken about this in the past, in making a distinction between quantitative and qualitative easing. This also speaks to the massive deformity which the US economy had become under first Greenspan and then Bernanke, and a financial sector turned outsized predator, with little connection to real market discipline of supply and demand thanks in large part to the proliferation of derivatives.

Ben could adjust somewhat this with the interest payments on reserves which the Fed is now paying. I suspect at some point he will, even taking them negative if necessary. But the Fed’s first priority is the insolvent Wall Street firms, and the continued charade that allows them to still pay outrageous bonuses while the nations suffers between the hammer of unemployment and the anvil of a toxic disaster in the Gulf and the collapse of its local economies. The first policy failure was in not nationalizing the insolvent US banks like Goldman and liquidating them. The second policy error is the failure to engage in serious financial reform, severely curtailing the derivatives market to something more resembling a well…
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Zero Hedge

Peter Schiff: Don't Listen To What The Fed Says; Look At What The Fed Is Doing

Courtesy of ZeroHedge View original post here.

Via SchiffGold.com,

The Fed continues to talk tough about fighting inflation.  And the markets seem to be listening. But in his podcast, Peter Schiff said you need to look at what the Fed is actually doing. And it’s not doing much.

Despite a big rally in the stocks on Friday, the stock market finished its sixth consecutive week in the red. It’s the longest streak of consecutive losses since June of 2011.

Peter said despite Friday&rsq...



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Phil's Favorites

Where Are We in the Cycle?

 

Where Are We in the Cycle?

Courtesy of 

Where are we in the cycle? It’s a hard question to answer. Inflation is high but interest rates are low. The stock market is getting crushed but the economy is okay. When you put everything together, some pieces of the puzzle seem very out of place.

Ben and I went on Derek Thompson’s Plain English podcast to discuss all of this.

I’ll give you the bad news first. It’s over.

Over the last decade, the defining feature in financial markets has been easy money. Investors were willing to subsidize money-losing companies as long ...



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ValueWalk

Robinhood CEO: Whenever People Think Crypto Is Over, People Build New Products

By Jacob Wolinsky. Originally published at ValueWalk.

Following is the unofficial transcript of a CNBC exclusive interview with Robinhood Markets Inc (NASDAQ:HOOD) CEO Vlad Tenev on CNBC’s “Power Lunch” (M-F, 2PM-3PM ET) today, Tuesday, May 17th. Following is a link to video on CNBC.com:

Whenever People Think Crypto Is Over, People Build New Products: Robinhood CEO Vlad Tenev

KATE ROONEY: Alright, thanks Julia. Vlad, it’s great to see you in person. You just got off stage. We’re here at the Permissionless Conference, which is a crypto conference and we’ll get to some of the news you had out today. But it is good to see you. Thanks for joining ...



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Digital Currencies

Stablecoin volatility shows an urgent need for regulation to protect consumers

 

Stablecoin volatility shows an urgent need for regulation to protect consumers

Shutterstock/David Sandron

Courtesy of Matthew Shillito, University of Liverpool

Some cryptocurrencies have always been fairly volatile, with values soaring or plunging within a short space of time. So for the more cautious investor, “stablecoins” were considered the sensible place to go. As the name implies, they are designed to be a steadier and safer bet.

At the moment though, that stability is proving hard to find. The value of o...



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Chart School

Powell doing a Volker to crush inflation, yeah right!

Courtesy of Read the Ticker

In 1979, Volker was equal to Goliath as he had a good chance of crushing inflation, today the debt Goliath is massive.

In the video below David Rosenberg explains the FED is on a 'Volker' mission to crush inflation no matter what happens to risk on assets like stocks.

David Rosenberg thinking is challenged when ask about the current US debt levels, as Paul Volker did say that he could not have crushed inflation with the debt levels of today.  David Rosenberg simply says the FED is going to hike no matter what, until something very serious breaks.

The question remains will something break in the markets after 1%, 1.5% or 2% hikes. No one knows. But as the US debt to GDP% is over 120% this suggests s...



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Kimble Charting Solutions

Microstrategy Stock Crash Gets Crypto Bulls Attention, Key Support Test In Play!

Courtesy of Chris Kimble

Microstrategy is a tech company selling its enterprise software solutions and analytics (platform)… but it is better known for something else…

It’s CEO Michael Saylor is a bitcoin whale. And he has been investing significant amounts of the companies reserves in Bitcoin. He even secured a term loan using bitcoin as collateral.

So Microstrategy is a bitcoin play as much as anything else. Well, bitcoin and the cryptocurrency space has been hit hard of late, with Bitcoin falling under $30K and other crypto coins tanking.

This is also illustrated through today’s “monthly” chart of ...



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Biotech/COVID-19

China's COVID crisis and the dilemma facing its leaders, by experts who have monitored it since the Wuhan outbreak

 

China’s COVID crisis and the dilemma facing its leaders, by experts who have monitored it since the Wuhan outbreak

A Shanghai refuse worker shows the strain of the month-long COVID lockdown. Shutterstock

Courtesy of Jane Duckett, University of Glasgow; Meixuan Chen, University of Glasgow, and William Wang, ...



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Politics

5 justices, all confirmed by senators representing a minority of voters, appear willing to overturn Roe v. Wade

 

5 justices, all confirmed by senators representing a minority of voters, appear willing to overturn Roe v. Wade

An unscalable fence around the U.S. Supreme Court, on May 7, 2022, set up in response to protests against the possible overruling of Roe v. Wade. Jose Luis Magana / AFP/Getty Images

Courtesy of Kevin J. McMahon, Trinity College

If the leaked Supreme Court decision on abortion is to be believed, five justices have ...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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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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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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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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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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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.