Global Market Commentary, Analysis and Investments
A moment of silence, please, for our fallen comrade, the Dow Jones Industrial Average…
Yes, it’s true; the beleaguered index fell through 10,000 yesterday to finish the trading session below where it stood last November. But yesterday was not the first time the Dow ever fell below 10,000. In fact, it was the 28th time since March 29, 1999 – the Dow’s very first close above 10,000.
[Read more...]Dear, dear reader…we’re sorry to write so much. We would have written less…but we just didn’t have time.
As expected…the Bubble Era was followed by the Bust Era. We’re in it now.
And as expected…the feds swung into action, busily making things worse. The last budget from the Obama Administration beats even our cynical expectations. We anticipated something stupid. But this is suicidal. Scandalous…
[Read more...]The public spectacle continues. Bankers appeared in Congress yesterday.
‘Yes…we sold a lot of toxic, explosive stuff to our clients,’ they said.
‘Yes, we used our own money to bet against them…’ admitted Goldman’s top man.
‘Yes, we blew up the whole world economy. We’re sorry.’
[Read more...]The fight goes on!
We mean the fight between greed and fear, boom and bust, expansion and contraction.
This is a fight that goes on all the time. But it is usually kind of a ‘cold war.’ Years go by without much activity. Stocks meander. A few companies go bust. A few boom. Interest rates…the dollar…and commodities are fairly steady.
[Read more...]There must be some dark corner of Hell warming up for modern, mainstream economists. They helped bring on the worst bubble ever…with their theories of efficient markets and modern portfolio management. They failed to see it for what it was. Then, when trouble came, they made it worse.
But instead of atoning in a dank cell, these same economists strut onto the stage to congratulate themselves.
[Read more...]We are looking back at the year almost finished, and trying to figure out what lies ahead. The surprise of 2009 was that the stock market didn’t turn down again. Stocks worldwide were cut in half. Then, they bounced. A textbook, classic bounce…Normally, you’d expect the bounce to peak out after 5 or 6 months. This one hasn’t…yet. Our guess is that it will…
[Read more...]What’s happening in the world of money is that the depression continues… You wouldn’t know it from reading the headlines or talking to economists. According to the official line, the US economy expanded 2.2% last quarter.
How is that possible? Well, here at The Daily Reckoning, we’ve invented a new word to describe it – ledgerdemain. Go ahead. Look it up. You won’t find it. But the word perfectly describes the practice of making things look like what they are not by using accounting tricks. Unemployment is over 10%…and apparently still rising. House prices are punky…probably anticipating an avalanche of new houses for sale, from the ‘hidden inventory’ of places that people would like to get rid of…if there were any buyers. And the typical consumer household is rediscovering thrift.
[Read more...]Copyright © 2012 · Church Theme on Genesis Framework · WordPress · Log in
China: No Shortcut to Greatness
The Chinese economy must be getting out of control, because the Chinese government is doing the unthinkable: It is desperately trying to put the brakes on the economy. When you pump a stimulus package that represents 14% of GDP through a fire hose into an economy, which was already on shaky bubble foundation, in a very short time you’ll have some serious unintended consequences — you’ll get super bubbles. ?
[Read more...]