Global Market Commentary, Analysis and Investments
Have yourself a merry little depression.
Dow up 45 points. Gold down $9.
We’re still waiting for a major correction in the gold market. Each time one begins, it seems to run out of steam before doing any real damage. At yesterday’s closing price, $1,577, gold is still solidly ahead for the year.
[Read more...]What’s new?
When we signed off last week, the Germans and the French were trying to hold Europe together. This morning, they are still trying.
“Don’t you live in Europe?” asked a friend at a party over the weekend.
“Yes…much of the time.”
“Well, maybe you can tell me what is going on with this European debt crisis?”
[Read more...]Yesterday, I told you the currencies were range trading, with the euro (EUR) better bid, after Friday’s Jobs Jamboree crock… Well, about mid-morning, we received word that German Chancellor, Angela Merkel, and French President Sarkozy, had reached an agreement on how to handle rogue Eurozone members going forward. They ironed out a new Eurozone Treaty, which will be presented to the Head of the Eurozone on Wednesday, and then on for a vote on Friday… This news was well received by the markets, and they happily marked up the euro, with the other currencies following along.
[Read more...]The huge rally on Wednesday of last week fizzled by the end of the week.
What a week. Full of sound and fury…signifying nothing.
Wednesday’s rally was the “seventh best day for the DJIA in 110 years,” reports our Bonner Family Office analyst, Chris Hunter. “And sure, this sounds pretty impressive. But it’s useful to bear in mind that the best day in history for the DJIA was on October 13, 2008 (when the index shot up 936 points). In the next few days the DJIA was down 11%. Then it shot up again by 15%. Then it nosedived by 25%. The next best day after that for the index was October 28, 2008. And the sixth best day came six days after the top of the Nasdaq bubble, on March 16, 2000.”
[Read more...]The Dow fell 248 points. Oil dropped to $96. And gold down a whopping $46. Why?
“Deficit Effort Nears Collapse”
Thus did yesterday’s Wall Street Journal describe the latest Congressional failure. To put it into perspective, a group of well-meaning, intelligent members of Congress had been asked to do something very simple. Every head of a household in the nation does it. Every businessman does it. Even some college students do it.
[Read more...]Europe falls apart.
Dow down again — 134 points. Oil back below $100.
We’re back in the USA after 5 months in Europe. What a delight it was to be Europe. It’s always a pleasure to watch something fall apart.
How far apart the Old World will fall, we don’t know. But it looks as though big chunks of the continent must be cut adrift…or the whole of it will sink.
[Read more...]We have been exploring the zombification of the US economy. Major industries — finance, health, education and defense — have been taken over by zombies, parasites whose real interest is to transfer wealth to themselves, from the part of the economy that remains productive.
As the economy becomes more zombified, the part of it dominated by these non-productive industries increases, leaving fewer resources for the productive part. And as the productive part weakens, so does the entire economy’s ability to produce real wealth, or grow its way out of debt.
[Read more...]Little by little, one step at a time, the mainstream press is beginning to understand. There was no ordinary recession. There will be no ordinary recovery. And something is very wrong.
A Great Depression? We should be so lucky, writes David Leonhardt in The New York Times:
UNDERNEATH the misery of the Great Depression, the United States economy was quietly making enormous strides during the 1930s. Television and nylon stockings were invented. Refrigerators and washing machines turned into mass-market products. Railroads became faster and roads smoother and wider. As the economic historian Alexander J. Field has said, the 1930s constituted “the most technologically progressive decade of the century.”
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Who’s Still OK With Deficit Spending Now?
I had to laugh yesterday when the New York traders came in and didn’t sell the currencies right away… I said to myself, “Self, maybe the ‘big boys’ read the Pfennig and now know that I’ve uncovered their ‘game,’ so they have to lay low for a while!” HA! Whatever the case, the currencies held their gains most of the day, and even added on in some cases.
[Read more...]