Latest Posts
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Finance 0
E The Secret Fed Plan To Buy Gold
When I spoke to a senior official at the Federal Reserve the other day, I couldn’t believe what I was hearing. If the American economy moves into the next recession with interest rates already near zero, the markets will take the interest rates for all interest bearing securities well into negative numbers. At that point, our central bank’s primary tool for stimulating US businesses will become utterly useless, ineffective, and impotent. What else is in the tool bag? How about large-scale purchases of Gold (GLD)? You are probably as shocked as I am with this possibility. But there is a rock solid logic to the plan. As solid as the vault a... -
Finance 0
EC Just. One. Trade
Is there anything more quintessentially American than the all you can eat buffet bar? The idea that you can just eat an endless supply of food until you finally give up out sheer exhaustion is bewildering to most people across the world. Don’t get me wrong. I love an all you can eat buffet bar as much as the next guy. There is a chain in the south called Golden Corral that is a guilty pleasure for even the snottiest of New Yorkers. I dare you to have their fried chicken without going back for seconds. The all you can eat buffet is perhaps the clearest cultural symbol of American ingenuity and technological prowess in conquering agriculture.... -
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Dear Homeowner: If You’re Paying $260,000 In Property Taxes Over 20 Years, What Exactly Do You “Own”?
If we understand property taxes as a “lease from the local government for the right to gamble on another housing bubble arising,” we see “ownership” in a different light. We’re constantly told ours is an ownership society in which owning a home is the foundation of household wealth. The concept of ownership may appear straightforward, but consider these questions: 1. If the house is mortgaged, what does the homeowner “own” when the bank has the senior claim to the property? 2. If the homeowner owes local government $13,000 a year in property taxes, what does the homeowner “own” once the... -
Finance 0
Jobless Claims Spike Higher In 1st Week Of May
New filings for unemployment benefits in the US soared last week, delivering a sharp rebuke to the consensus forecast, which was looking for a modest decline. Instead, economists were blindsided as jobless claims surged 20,000 to a seasonally adjusted 294,000 for the week through May 7, the Labor Department reports. The government advises that no “special factors” influenced today’s release, which marks the biggest weekly rise for the seasonally adjusted data in two years. But the numbers could be skewed by a Verizon strike in New York state and so the bearish report may be less threatening than it appears on first glance. “New York... -
Finance 0
BOE Warns On Brexit But Raises Inflation Forecasts – GBP Rises
No change in policy nor in the voting pattern, but the BOE did change inflation and growth forecasts: inflation to the upside and growth to the downside, more or less with data coming out recently. GBP/USD made a small move towards 1.45 but we are back to range. The Bank of England was widely expected to leave the interest rate unchanged at 0.50%, as it has been since March 2009. Some had expected a change in the voting pattern: from a unanimous 9:0 vote in favor of no-change to perhaps one member voting to cut rates, in order to fight low inflation and/or to preempt a potential vote in favor of a Brexit. However, chances seemed slim for a ch... -
Finance 0
US Import Prices Tumble For 21 Months In A Row As China Exports Most Deflation Since 2009
For a near record 21 months in a row, US Import Prices dropped in April compared to last year (down a worse than expected 5.7% YoY, and rising only 0.3%, less than the 0.6% expected rebound from March) with China exporting deflation at the fastest pace since 2009. Looking at the breakdown, while a major culprit for the collapse in imported deflation remains sliding energy prices, it wasn’t the only reason for the slowdown as imports ex-fuel and food fell a notable 2% Y/Y in April. Additionally, industrial supplies prices rose 1.5% after rising 2.7% in March; capital goods prices fell 0.1% after falling 0.1% in March; consumer goods pric... -
Finance 0
Don’t Get Caught Without This Department Store In Your Portfolio
Key Takeaways The Estimize consensus is looking for a loss of 35 cents per shares on $2.94 billion in revenue, 4 cents higher than Wall Street on the bottom line and right in line on the top JCP has already indicated that first quarter profits will come in higher than expected, providing reassurance to investors that worry its turnaround is coming to an end. Strong numbers have been driven by an increased focus on its omni channel capabilities, expanding store-in-store Sephora sales and deeper penetration of its private brand What are you expecting for JCP? Get your estimate in here! On the verge of bankruptcy, JCPenney has made a remarkabl... -
Finance 0
Yen Resumes Risk-off Rally After Japanese Trade Balance Figures
The Japanese Yen showed a tepid reaction when the country released March’s trade balance figures. Heading into the data announcement, the Yen was recovering against its US counterpart in a risk-off environment, following Wall Street lower. Shortly after the data crossed the wires, the USD/JPY resumed falling, reaching its lowest level since Thursday’s trading session began. The country’s trade balance rose to ¥927.2 billion in March, higher than the ¥906.0b estimates and the¥425.2b reading in February. The surplus was the highest since October 2010. The trade figures combine net exports minus imports which means Japan is selling mo... -
Finance 0
Middle Class Shrinks In 203 Of 229 Metropolitan Areas
Hollowing Out of America’s Middle Class Since 2000, the percentage of America’s middle class fell in nearly 90% of the nations 229 metropolitan areas according to PEW research. Those metro areas account for 76% of the nation’s population in 2014. In 160 metro areas the percentage of those with lower incomes rose. In 172 areas the percentage of people in higher income brackets rose. 108 metro areas experienced a rise in upper income and lower income households. Please consider PEW’s study on America’s Shrinking Middle Class: A Close Look at Changes Within Metropolitan Areas. Highest Shares Winners and Losers Median Incomes Decline A... -
Finance 0
The “Gold Of Tech” Could Become Your Best Portfolio Insurance
In uncertain markets like these, you need to stay as focused – and unemotional – as possible. One way to do that is to always have some “portfolio insurance” on hand. For instance, many investors dedicate a portion of their portfolio to gold or some other precious metal where it can act as a hedge against trouble in other markets. Now, some of these folks go overboard, and you probably know a “gold bug” or two. But at bottom, this is a sound strategy, because precious metals generally aren’t affected by the ups and downs of the stock market. Now, what you have in your hands isn’t a “gold report.” My main interest is in t...
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