Mon, 20 October 2014
Would you believe that New York City is paying over $14 million per year to store the property of the homeless. It's paid over $200,000 since 2006 to store the items of Andrea Logan, a suspected hoarder. She's got 11 units that run the City $3500 per month in fees. The average homeless person costs the City nearly $1500 per month in storage costs. The world has truly gone nuts. If you want to have a good laugh, take a look at the reviews of Andrew Cuomo's latest book, All Things Possible: Setbacks and Success in Politics and Life. They're quite hysterical and are quaranteed to lift your spirits. Over 500 one start reviews will keep you in stitches and even the 5 star reviews are not exactly enamored with Cuomo's writing skills. The reviews are so bad they're actually starting to make news. Also gold has hit Charles Nenner's buy signal and silver is almost there. Take it for what it's worth.
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Mon, 20 October 2014
John Rubino stopped by for our Monday discussion. IBM's disappointing earnings point to trouble on Wall Street. Perhaps it's time to buy back a few hundred million more shares. There's always a solutions for poor fundamentals, they've been doing it for years. Eventually the piper is going to have to be paid and it's not going to be a pretty site when the check comes due.
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Mon, 20 October 2014
Has "it" begun?
Signs everywhere… -third Chinese "backdoor QE" announcement in two months Friday
-heightened chatter of increased BOJ stock purchases -European stocks plunging despite QE having started. Major Western sovereigns (even France, which had its outlook downgraded to negative by S&P last week) plunging to all-time lows…but PIIGS stocks and bonds collapsing, led by Greece (Athens stock index down 30% since April, and Greek 10-year yields up 200 bps last week) -EU manufacturing, industrial production, sentiment plummeting, led by Germany - clearly in continent-wide recession, and falling quickly -U.S. retail sales, industrial production plummeting. NFLX, WMT major earnings announcments last week, and IBM earnings catastrophe today -Aritcle - "need or want, demand is dying"
Last week's market carnage, PPT not withstanding, was horrific -vast majority of stocks in bear markets -volatility surged, at times overwhelming "manipulation organizations" like the PPT, Fed, and ESF -dollar index not "strong" last week b/c down vs. Euro, but continued to wreak havoc by surging against peripheral currencies -Article - "the single most bullish PM factor imaginable" -biggest one-day percentage drop in Treasury history Wednesday morning, when 10-year plunged from 2.2% to 1.9% in an hour (en route to Japanese and German levels sub 1%, before hyperinflation inevitably destroys them) -Article - "most damning proof yet of QE failure" -commodities continue to crash, as well as all indicators of global trade -Articles - "Commodity Crash! (but don't worry, gold and silver are not commodities), "Crashing Oil prices portend unspeakable horrors"
Fed desperate to maintain calm -Six Fed governors hinted at "QE and/or ZIRP to Infinity" last week, including Vice Chairman S. Fischer -"coincidentally," five are on the 2015 FOMC voting committee, while the two biggest "hawks" (Plosser and R. Fisher) will be departing - crucial FOMC meeting 10/29, when QE supposedly ends, just six days before critical mid-term elections (with both Presidential and Congressional approval ratings at all-time lows) - Article - "Manipulation, Jawboning, and Prayer" - of course, this is all that matters
PM fundamentals never stronger, with record physical demand for both metals -for silver specifically, best risk/reward in history -demand in India, the U.S., and Canada on pace to match 2014's record levels
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