Posts Tagged ‘Neel Kashkari’

They Were Making It Up as They Went Along – And Still Are

They Were Making It Up as They Went Along – And Still Are

Courtesy of Jesse’s Café Américain

"Mr Kashkari admitted that he plucked “a number out of the air” when deciding with Mr Paulson how much funding to request from Congress for the Tarp."

A telling memoir of the financial crisis by neo-mountain man Neel Kashkari, soon to be maven of what he hath wrought at bond insiders firm Pimco.

They not only did not know then, as should have been painfully obvious to anyone who looked at the ten page request for $700 billion or else, but they also do not know now. When you do not have the facts to support your case, employ fear, uncertainty and doubt (aka FUD factor).

There is an all too human tendency to give credit to planning and forethought to experts, particularly those in key positions, in both government and corporate life.

One of the most surprising things I learned as a young man working his way from the hinterlands of a multi-national behemoth into the lofty towers of headquarters is that quite simply, they do not know. They are too often just frightened people making it up as they go along. Decision making too often comes down to verbal acuity, cults of personality, tides of emotion, and totemistic tribalism.

And the scary part of course is that the same can be said of the Bernanke’s Gamble today. They just do not know, but can only hope for the best, and make corrections as they go along. Ben is just doing what worked last time, with a modification for what has been perceived as the ‘one big error’ the Fed made in the Great Depression.

It is, after all, the best that can be done with what is hardly a science, more akin to medieval medicine than geometry. But these modern day monetary witchdoctors are wielding enormous power over the people and the nations of the world, and they are most likely making it up as they go along, with all the avenues of corruption and self-interest that this implies.

Then as now, the world is giving ‘the experts’ far too much credit for knowledge and forethought, and most sadly, wisdom.

In February 2008, Mr Kashkari was charged with drafting an emergency plan in case the credit crunch became a full-blown financial crisis. By October


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Ukrainians are divided over Trump's 'quid pro quo'

 

Ukrainians are divided over Trump's 'quid pro quo'

Ukrainians don’t agree on how their president should have handled Trump’s request. Andreas Wolochow/Shutterstock.com

Erik C. Nisbet, The Ohio State University and Olga Kamenchuk, The Ohio State University

As Americans turn their attention to the first p...



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Zero Hedge

Watch Live: Trump Talks Trade At Economic Club Of New York

Courtesy of ZeroHedge View original post here.

Update: President Trump's scheduled speech started a few minutes late, some of his prepared remarks have already hit the tape.

  • TRUMP TO SAY AMERICAN MARKET IS MOST COVETED ON THE GLOBE
  • TRUMP: THOSE WHO WANT ACCESS TO AMERICAN MARKET MUST OBEY RULES
  • TRUMP SAYS FED FAR TOO SLOW IN CUTTING RATES
  • TRUMP SAYS FED PUTS U.S. AT DISADVANTAGE VS OTHER COUNTRIES

And a quote...

"The American Market is the most valuable and coveted market on the globe - tho...



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The Technical Traders

Welcome to the Zombie-land Of Investing - Part II

Courtesy of Technical Traders

In Part I of this research post, we highlight how the ES and Gold reacted 24+ months prior to the 2007-08 market peak and subsequent collapse in 2008-09.  The point we were trying to push out to our followers was that the current US stock market indexes are acting in a very similar formation within a very mature uptrend cycle.

We ended Part I with this chart, below, comparing 2006-08 with 2018-19.  Our intent was to highlight the new price hig...



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Kimble Charting Solutions

Bank Breakout Of Financial Crisis Highs or Double Topping Again?

Courtesy of Chris Kimble

If the saying “So Goes The Banks, So Goes The Broad Market” is true, banks are facing a critical breakout/resistance test in my opinion.

This chart looks at Financials ETF (XLF) over the past 12-years. This chart reflects that a double top took place prior to the financial crisis getting started.

XLF has remained inside of rising channel (1) since the lows in 2012. It hit double resistance at (2), then it declined nearly 25%.

The decline then tested rising support at (3) and a strong rally has followed. The rally now has XL...



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Insider Scoop

Barrington Downgrades Fluent After Earnings Miss, Stock Drop

Courtesy of Benzinga

Fluent Inc (NASDAQ: FLNT) fell short of top- and bottom-line third-quarter estimates. Some suspect the missed metrics herald longer-term underperformance.

The Rating

Barrington Research analysts James Goss and Patrick Sholl downgraded Fluent to Market Perform but maintained a $5 price target....



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Digital Currencies

3 Reasons Why One Trader Didn't "Manipulate" Bitcoin Price To $20K

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin price highs in 2017 were not the result of a single trader on an exchange, the CEO of payment company Circle claims. In a series of tweets on Nov. 4, Jeremy Allaire disputed ...



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Chart School

Gold Gann and Cycle Review

Courtesy of Read the Ticker

Gold has performed well, golden skies are here again. In fact it has been a straight line move, and this is typically unusual and a pause can be expected.

It seems the markets are happy again, new highs in the SP500, US 10 year interest rates look to re bound, negative interest may soften. The US FED has reversed their QT and now doing $250BN (not QE) repo. The main point is the FED has stopped QT, and will do QE forever. The evidence now is the FED put is under market risk and the possibility of excessive losses do not exist. 

Point: If in future if there is market risk, the FED will print it's way out of it.
Subject To: In this blog view. The above is so until the amount required rocks confidence in the US dollar as a reserve currency.&n...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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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.

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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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