My view is that the stock market is simply pegging itself to the idea that the central banks have backed themselves into a corner and that there’s no other option but to keep the liquidity spigots open. I cannot fault that view, as it has been right for the past 6 years.
However, it cannot be true forever. And we all know that a day of reckoning is out there somewhere.
An informative video showing how you can create a simple but effective door lock using a dinner fork. A handy backup for when the zombies come knocking at your door.
- Fewer Poor Uninsured After Health Law, Study Finds
- A World Without Work
- Is the Trans-Pacific Partnership Unconstitutional?
- A Disaster Foretold - And Ignored
- The Way Humans Get Electricity Is About to Change Forever
- 2015 New Energy Outlook
- The New Big Oil Is State-Owned
- Climate Change Health Risk Is a 'Medical Emergency,’ Experts Warn
Buffalo CarShare serves the daily needs of residents. Photo: Buffalo CarShare
Buffalo CarShare is a nonprofit carsharing organization serving the transportation needs of low-income communities in Buffalo, New York. The organization recently had to cease operation after their insurance company, Philadelphia Insurance, ended their coverage.
A May 2015 report documents confusion among casual riders about the cost of bikesharing. (SF Bay Area Metropolitan Transportation Commission)
The Mount St. Vincent retirement home in Seattle is home to over 400 residents. It’s also home to a preschool. The results of this innovative project, dubbed the Intergenerational Learning Center, are extraordinary. Elders and young children share time, space, projects, meals and conversations. By doing so, the children learn about the normal aging process, reduce their fear of older adults, and share their love and attention.
- The Next Downturn Will Be Worse Than 2008 And What You Can Do About It?
- "It's Time To Hold Physical Cash", Fidelity Manager Warns Ahead Of "Systemic Event"
- Federal Reserve System a Run Away Machine: G. Edward Griffin
- Pay No Income Taxes, Legally!
- Gold: Will This Summer’s Rally Mark A Cyclical Turning Point?
- Anti-intellectualism Is Killing America
- Every Single County in America Is Facing an Affordable Housing Crisis
- Texas Production Down, Gas Takes Biggest Hit
Photo credit: Lisbon Council. Used under Creative Commons.
Since the Jasmine revolution of January 14, 2011 that sparked the Arab Spring, Tunisian social and political life has changed considerably. After 23 years of the brutal and corrupt regime of General Ben Ali, the people of Tunisia started to experience the basic preconditions of a democratic state for the first time. Among them are freedom of expression, freedom of the press, and political pluralism, including competitive elections.
Two years since his last interview with us, investor Jim Rogers returns and notes that the risks he warned of last time have only gotten worse. In this week's podcast, Jim shares his rational for predicting:
- increased wealth confiscation by the central planners
- a pending major financial market collapse
- gold's return as the preferred safe haven investment
- more oil price weakness, followed by a trend reversal
- Russia's rebound
- a China bubble reckoning
- agriculture's long-term value
- Debt, War and Empire By Other Means
- ‘World’s Poorest President’ Explains Why We Should Kick Rich People Out Of Politics
- The Hunt for the Financial Industry's Most-Wanted Hacker
- Most Millennials Want to Own Homes
- For many in Greece, the economic crisis takes a major toll: their homes
- The Humans Who Dream Of Companies That Won't Need Us
- The People v. the Coal Baron
- Sixth mass extinction is here: US study
There are large signs of stress now present in the credit markets. You might not know it from today's multi-generationally low interest rates, but other key measures such as liquidity and volatility are flashing worrying signs.
- Liquidity is drying up
- Volatility is returning
- HFT has dramatically increased crash risk
- The key takeaways for investors
Financial assets are worth what someone will pay for them. A corollary of this is that you’d much rather be trying to buy or sell in markets that are deep and liquid. Thin markets provide bad prices at best, and no bids or offers at worst.
Low trading volumes are worrisome because they are usually accompanied by higher volatility. And those two can easily become dance partners that whirl each other ever faster.
There are numerous warning signs coming from all asset markets, but especially from the bond markets.Low Liquidity
The issue of low liquidity really jumped out at me roughly a year ago with the news that the utterly broken Japanese government bond (JGB) market had gone an entire 36 hours without a single trade(!!).
Japan bond market liquidity dries up as BoJ holding crosses ¥200tn
Arp 15, 2015
The Bank of Japan’s massive purchases of government debt hit a milestone this week, sucking liquidity out of the market to such an extent that the benchmark 10-year bond went untraded for more than a day, the first time in 13 years.
The current 10-year cash bonds saw its first trade of the week yesterday afternoon, having gone untraded for more than a day and a half.
Trade volume in the benchmark cash bonds so far this month dropped to less than one trillion yen, down about 70% from the same period last year.
Thus comes the law of unintended consequences. The main reason for buying JGB’s by the Bank of Japan (BoJ) was to inject a lot of liquidity into ‘the system’ in hopes that the Japanese economy would take off.
While that may have happened to some (slight) extent what also happened was that ...
- The Latest American Mass Killing
- Charleston And The Age Of Obama
- Greece faces banking crisis after eurozone meeting breaks down
- A sentimental education: inside the school that Tilda built
- After an Era of Ups and Downs, Home Prices Return to Sanity
- Proposed Rule for Big Trucks Aims at Cutting Fuel Emissions
- Expect A Wave Of Consolidation In The Oil Industry
- Championing Environment, Francis Takes Aim at Global Capitalism
In this week's Off the Cuff podcast, Chris and Charles Hugh Smith discuss:
- The War On Cash
- Why governments are so interested in a cashless society
- Why the EU power structure fears it
- The Bond Bomb
- This one will be for all the marbles
- Too Many Risks
- There's little gain to remaining long in this market
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
- Three Ways to Protect Your Financial Privacy
- 'Goldbug' Analysts Capitulation
- Sneak Preview: 10 Charts From In Gold We Trust Report 2015
- In California, Uber driver is employee, not contractor
- A New Era For Utilities
- Chris and Michael Berry: What the Boomers Got Wrong—and Right—About Natural Resource Investing
- Toxic algae bloom off West Coast might be largest ever
- The Blight Of The Honeybee
The Bank of North Dakota is the only state-run bank in the United States. Photo: Hulsing & Associates Architects
With the many benefits that can be derived from Aloe Vera, every homestead or prepared person should include this valuable plant as part of their growing plans.
StokeShare surfing event participants with the LAPD Cadet program. Photo: Lauren Devon
As you've probably noticed, there are sharing economy apps to help you share just about everything from lightly-worn clothes and parking spaces to surfboards and meals.
Some of these apps take the sharing spirit a step further by supporting nonprofits. Here are three of our favorites: