The Difference Between Market and Government Swindles

What’s going on in the markets?

Well, a gloriously strong chávena de café at one of this city’s many colorful, street side vendors (not Starbucks) will set you back one Brazilian real, or around fifty cents. In other words, pretty cheap. A Caipirinha on the deck of what is surely the most unique hotel bar your editor has recently visited, however, will cost you the equivalent of maybe forty chávenas de café — about twenty dollars. Still, you pay for the view…and for the city skyline in the background.

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The Difference Between Market and Government Swindles

What’s going on in the markets?

Well, a gloriously strong chávena de café at one of this city’s many colorful, street side vendors (not Starbucks) will set you back one Brazilian real, or around fifty cents. In other words, pretty cheap. A Caipirinha on the deck of what is surely the most unique hotel bar your editor has recently visited, however, will cost you the equivalent of maybe forty chávenas de café — about twenty dollars. Still, you pay for the view…and for the city skyline in the background.

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“Net Sober”

Derivatives are the “meat and meat by-products” of the financial markets. They look, smell and taste just like regular securities, but almost no one understands why we need them in the first place. After all, what’s wrong with actual meat? Or to re-phrase the question: Is Spam really an advancement over ham?

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Seeking to Explain the Market’s Dour Mood

Well, well… it’s a “risk-off” day in the markets. Let’s look at some quick numbers:

  • All the major U.S. stock indexes are down at least 1%. According to Bespoke Investment Group, the last time the S&P opened down this much was Nov. 21
  • Gold is down another 2%, to $1,671. Silver’s back below $33
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What the Greek Rescue is Really About

In today’s Daily Reckoning, we’ll do something we can barely stand to do: we’re going to write one more time about Greece. If you can stand to read it, you may come to the same conclusion we reached.

That conclusion is simple: what’s going on Europe has nothing to do with solving a debt crisis and everything to do with preserving a corrupt system based on limitless debt and growing government power. The sooner you understand that fact, the sooner you’ll be able to prepare for what happens next. There are two options for what happens next, and we’ll get to those shortly.

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Why “Risk On” Trades Have Suddenly Become Fashionable

The stock market rallied big-time last Wednesday after the Fed and a gaggle of other central banks announced their latest scheme to rig the financial markets. On the surface, the central banks merely promised to cut the cost of borrowing dollars. Beneath the surface, as we explained last week, the central banks committed themselves to subtle forms of money-printing.

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ECB to the Rescue?

Markets closed today. And not much from us either. We’ve got family chores to attend to.

As expected, Europe is falling apart. Yields are rising. France’s debt no longer looks safe. And Germany can’t sell its bonds.

The failure of the German bond auction earlier this week was the latest shock. It tells us that pressure on the ECB is mounting.

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How to Find New Capital and Influence Financial Markets

Major stock indexes are drifting today, seemingly awaiting some sort of news from Europe.

It’s as if traders are now hanging on every word emanating from some commissioner, director, functionary or spokesmodel on the continent before they make their next move.

Up one day, down the next, the mood swings like a love-struck girl pulling petals off flowers…

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How to Pass the Gold Bull Market Test

Last week in the financial markets was unsatisfactory. No clear trend announced itself. The Dow should have gone down. Gold should have gone down too. But they diddled around…and on Friday, both seemed to be back in counter-trends, moving against the direction we think they OUGHT to go.

As for stocks, everything we’ve found out about the economy since 2007 suggests that our Great Correction view is right. This market aims to correct something; we just don’t know what.

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