27
Mar
2013
The Fed Needs To Have A “Moment of Clarity”

As I mentioned in Confessions of an Economic Witch Doctor, the analogy of the economy having been in a car accident is the wrong metaphor to describe the predicament we’re in, and that a much more appropriate one is that of the alcoholic. We have become so accustomed to collectively living beyond our means, to consuming without producing, to buy now, pay later that we have become a society addicted to debt.…

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25
Mar
2013
Global Finance has Devolved into a game of Calvinball

 

Familiar with “Calvinball” ? The game of choice in a comic strip, whose nonsensical and kafka-esque rules now describe global finance more accurately than any other model.

Forget Rule of Law, forget the sanctity of private property and given the Cyprus “bail-in”, forget the concept of “risk free” savings. In the olden days (2012) people used to refer to an endeavor considered to be a fairly safe bet as  being “as good as money in the bank”.…

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19
Mar
2013
Jaimie Johnson’s The One Percent Documentary

2011 documentary by Johnson & Johnson heir Jamie Johnson about wealth disparity in the US. There is an unflattering interview with Milton Friedman in there, along with a clip with Warren Buffet’s grand-daughter which paints the folksy billionaire in a not-so-benevolent light.

At the end of the day, this is where a jerry-rigged cronyist system gets you to, a hockey-stick shaped graph of wealth distribution with a protected aristocracy at the top.…

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16
Mar
2013
The War on Savers Intensifies as Cyprus nabs depositors in bailout

As reported via Bloomberg:

Euro-area finance ministers agreed to an unprecedented tax on Cypriot bank deposits as officials unveiled a 10 billion-euro ($13 billion) rescue plan for the country, the fifth since Europe’s debt crisis broke out in 2009.

Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros — the ceiling for European Union account insurance — and 9.9 percent above that.”

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16
Mar
2013
Confessions of an Economic Witch Doctor

I just read about Jeffries economist Jim Zervos’ note to clients on BI, in which he admonishes the “Austrian economist types” and “perma-bears” for being so gloomy, for likening this current bull market to a “sugar high”. Because in his opinion, the policy handlers (like Bernanke and the central banks) have all of this under control and it’s full steam ahead.…

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10
Mar
2013
BREAKING: Intrade shutdown effective immediately

Intrade, the Irish based  online trading exchange website has ceased trading with immediate effect. Visitors to Intrade.com are greeted with the following:…

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