NEWS #24


From September 9, 2014 to November 16, 2014

November 16, 2014

Here are some interesting links.

No Interest Rate Hike in 2015??? on DailyWealth.Com

COMMENT: Here we go again. It was Albert Einstein who defined insanity as doing the same thing over and over but expecting different results. The world's Central Bankers are going to keep on inflating until we have no way to accurately price anything.

It's Almost Time to Buy This Beaten-Up Energy Sector on GrowthStockWire.Com

COMMENT: I am going to be watching this one, and will hold some cash in reserve for it.

The American Consumer in Three Shocking Charts on GrowthStockWire.Com

COMMENT: I find the ratios in this article to be facinating. If the Central Banks wanted the average consumer to quit saving, and move that money instead to stocks and into spending, they have succeeded wildly. Just look at auto sales and the record high stocks.

Unemployment falls to 5.8% but "things actually aren't going well": Dan Alpert on Finance.Yahoo.Com

COMMENT: Trouble in paradise.

November 7, 2014

Tobby Connor sends along this posting:


COMMENT: This is where I disagree with Toby. I think the Euro could drop a lot further - at least 10 percent more, and with it gold and oil.

October 26, 2014

Here are some links to recent reading.

The Mortgage Industry Is Strangling the Housing Market and Blaming the Government on NewRepublic.Com

COMMENT: Here we go again. It was Albert Einstein who defined insanity as doing the same thing over and over but expecting different results.

Is Congress setting the stage for another mortgage crisis? on Finance.Yahoo.Com

COMMENT: There is a cure for this. First we recognize that the only folks who benefit from this move are the top 1 percent. This is yet another trickle down manuever. How are all the other trickle down initiatives working? The economy doing GREAT? Well then, let's quit doing trickle down. Instead, I propose a simple idea that would halt a lot of flim flannery and the pass-the-buck-to-Fanny-Mae-bullshit-so-the-taxpayers-take-the-hit-instead-of-the-1-percent. The essense of this idea is to insure that the 1 percent do actually have some skin in the game.

The idea: A simple law that requires all mortgage originators to retain ownership of a minimum of 10 percent of the mortgage in perpetuity.

And if you do not think the middle class has suffered all that much from the last two recessions, please read the article below.

All The Wealth The Middle Class Accumulated After 1940 Is Gone on HuffingtonPost.Com

COMMENT: If you are a Keynes fan then the absolute destruction of savings by families is a non factor. But if you are a follower of the Austrian School it is an unmitigated disaster. Debt has eaten savings and raised the prices of homes to the point where the average wage earner can not afford one. Kill savings and increase debt to these levels and you get an economy that is not capable of bouncing back. Why don't we dial back the debt a bit both for families and for government. We've tried the borrow and spend your way to prosperity. Why don't we try the other way?

China's Banks Are Getting Ready For A Debt Implosion on Finance.Yahoo.Com

COMMENT: It does not look like China is in any position to save the world's economy.

Is the oil price fall more than just a coincidence? on Finance.Yahoo.Com

COMMENT: The writer of this article dodges the bullet. My guess is that the Saudis have the valve wide open. In this way they can hurt an enemy (Russia) and help friends (U.S. and Europe).

They Studied Keynes and They're Doing This. Why Can't the Fed See It? on Finance.Yahoo.Com

COMMENT: My wife gathers info for the Census - a part time job because she can not find full time employment. My county is in a huge boom due to the oil patch. Yet, from what she tells me (and she only tells me things in generalities), there is a lot of underemployment even in our county. Meanwhile, this 'recession' began in 2008. It is still going and wages are stagnant. When do we get to call this a Depression?

October 19, 2014

Here are some links to recent reading.

The U.S. Dollar Just Peaked on DailyWealth.Com

COMMENT: A whole lot of folks missed this turn of the dollar and even more missed the importance of this event. This is huge. Markets should straighten out now and go up. See the article below.

Cramer calls the market bottom: Safe to buy again on Finance.Yahoo.Com

Just Try to Refinance. I Dare You on BloombergView.Com

COMMENT: I think, besides taxes, we can count on this constant: Big Banks will get it wrong.

Forget Obama and the Keystone pipeline… Canada has a brand-new plan on TheCrux.Com

Sand: A Major Key to America's Energy Future on DailyWealth.Com

It's Still the Economy, Stupid! on HuffingtonPost.Com

COMMENT: Newscasters, on both sides of the spectrum are wonderfully ignorant about what goes on in the oil patch. None could tell you what are the three phases in the life of an oil well, or that some of those phases can and do get revisited. No body is talking about the huge energy boom we are witnessing, a boom that may well economically save us from ourselves (and the FED). No one is speculating about what happens when the new technology from horizontal drilling and fracking oil shale is applied to old existing fields where up to 90 percent of the oil still remains in the ground.

Absolutely no one in the news business could tell you how many pipelines already cross the Ogalala Aquifer (hint: The number is a lot bigger than ten.).

October 9, 2014

Tobby Connor sends along this posting: