Equities see “known unknowns” as bullish

Let’s say it is safe to say that the level of animosity in Washington will lead to divided government for the foreseeable future, despite the Republicans holding a sliver of power within Congress. That premise can only be good for equities as investors see gridlock as a means to remain with the status quo. Markets […]

Kuroda has no yen to ease

This is what equity markets look like when central bankers run out of bullets. The Japanese central bank did nothing with rates and stood pat on its QE level and stocks around the world sold off hard. The Nikkei sold off 3.6% and major Europe exchanges are down between 1% ans 2%. Dow futures are […]

QE is coming to prop up the Potemkin bank balance sheets

If we take the position that the world’s central bankers have no answers on how to right what their policies has wrecked on the economic welfare on the globe, then we have a sense of what is driving the markets. The amount of debt created from between 2008 and 2015 through various easing programs, which […]

The numbers behind the greatest wealth transfer ever

A new Oxfam International study confirms my Great Fleecing article from Sunday’s New York Post. The result of the greatest transfer of the wealth the world has ever seen, facilitated by the Federal Reserve and its Quantitative Easing programs under President Obama, shows the richest 1% now have more wealth than the rest of the […]

Down 500 points here, minus 300 points there, pretty soon you can’t retire

Stocks are overvalued. It’s that simple. With a global economy going into recession, there will be pain in global equities. As money gets tighter with the Fed raising rates, US companies, which just began reporting Q4 results, will not be able to borrow to buyback shares to make their quarterly returns look better on the […]

Welcome to Wonderland

So Mario Draghi — formerly of Goldman Sachs — and the European Central Bank Thursday told the markets that further heroin in the form of EQE (European Quantitative Easing) could be delivered in December. And just this morning China cut its lending rate by 0.25% on slower growth. These two events sent global stock indices […]