AUG 14 16 SIT EC
y POL
ZERO HEDGE
ECONOMICS
The only way to reverse declines in labor participation
and stagnation in wages is to make it easier to start
enterprises and hire people, and dramatically lower the cost basis of the
entire economy. There is
scant evidence that policymakers have any real interest
in either of these goals or any knowledge of how to make them happen, despite
the abundance of lip-service paid to "business-friendly" strategies.
----
----
The latest custody data from the Fed shows that reserve
manager holdings of Treasuries has tumbled by $17 billion in the past week, to
the lowest effective level since late 2012. The prevailing hypothesis is that smaller central
banks and reserve managers sell US paper to defend their currencies, while OPEC countries such as Saudi Arabia are
quietly raising cash in an environment of low oil prices and acute budgetary tightness.
----
----
While it might be cynical and unpatriotic, we dare
to show one simple chart that illustrates how awful Obama's job "recovery" has actually been relative
to past recessions.
EVALUATING OBAMA?.. So
far so good .. under limits of time & context
….
MY COMMENT at http://nd-hugoadan.blogspot.com/ : EVALUATING
OBAMA?.. So far so good .. under limits..
----
----
Here the investors view on our crisis: little chances of
continue profiting as before
"What can go wrong?" ... A lot...
Yesterday, media
headlines rang out:
“The Markets Just Did
Something It Hasn’t Done Since 1999.”
While much of the media analysts continue to suggest there
remains a bearish attitude towards stocks, price
action of the markets as compared to fundamental data suggests quite the
opposite.
The chart below compares the current S&P 500 to both
earnings and the annual ROC in GDP.
Image location at: https://realinvestmentadvice.com/wp-content/uploads/2016/08/SP500-MarketUpdate-081216-2.png
Notice any
similarities?
Despite a “belief” that “This
Time Is Different (TTID)” due to Central
Bank interventions, the reality is that it probably isn’t. The only
difference is the interventions have elongated the current cycle, and has
created a greater deviation, than what would have normally existed. What is “not different this time” is the eventual
reversion of that extreme will likely be just as damaging as every other
previous bear market in history.
But, of course, “TTID” is the old Central Bank driven
mantra, today it is “There Is No Alternative (TINA).”
Let’s review where we stand currently.
Chart updated through Friday’s open.
See chart at: https://realinvestmentadvice.com/wp-content/uploads/2016/08/SP500-MarketUpdate-081216-1.png
While the market has continued to consolidate gains over the
last few weeks, the overbought conditions still remain. As I stated earlier this week:
“The market, on a short-term
basis, remains in extreme overbought territory. This needs to
be relaxed somewhat before additional equity exposure is added to portfolios.
As shown, a reversion to the current bullish trend
line, which coincides with the market’s recent breakout levels, is a likely
target in the short-term.
However, there is [not]
a more than reasonable chance, as I laid out two weeks
ago for a deeper correction in the next 60-days.
The chart below shows the potential drawdowns from current levels.”
See chart at: https://realinvestmentadvice.com/wp-content/uploads/2016/08/SP500-MarketUpdate-080916-2.png
“Here is the point. It would take a correction from
current levels to break 2000, which is very important support for the markets
currently, to even register a 10% correction.
Given the current bullish
exuberance for the market, this is probably unlikely between now and the
election. Therefore,
even a “worst case” correction currently would likely be an 8.5% drawdown back to major support.
Of course, for most individuals, even such a small correction would
likely feel far more damaging.“
Let’s take a look at some of
the issues that suggest a reversion in prices is likely coming sooner rather
than later.
VIX & Junk Bond Spreads Out Of Whack
The level of “complacency” in the market has simply
gotten to an extreme that rarely last’s long.
The chart below is the comparison of the S&P 500 to the
Volatility Index. As you will
note, when the momentum of the VIX has reached current levels, the market has
generally stalled out, as we are witnessing now, followed by a more corrective
action as volatility increases.
This continues..
----
----
Real economists, if
there were any, looking at the real economic picture would see an economy collapsing into widespread debt deflation and
impoverishment. Debt deflation is when consumers after they service
their debts have no discretionary income left with which to drive the economy
with purchases. The reason that Americans have no income from their savings
is that public authorities put the welfare of a
handful of “banks too big to fail” above the welfare of the American people.
The enormous liquidity created by the Federal Reserve has gone into the
financial system where it has driven up the prices of financial instruments. There has been a stock market recovery but not an economic recovery.
----
----
POLITICS
According to the government's official data, the number of unemployed black Americans is at its lowest since
2007 seemingly confirming President
Obama's narrative that "everything is awesome." So, we wondered, if
everything's awesome and everyone's got a job, why are black Americans rioting
in Milwaukee? Here is the answer in one chart and
one short sentence from a Milwaukee protester...
Jobs are not fungible... Since President Obama was elected,
black Americans may have seen their joblessness decline - but since President Obama was elected, income inequality for
black Americans has soared...
The solution is simple - as this young black American
explains... the violent rioting that occurred last night in Milwaukee is
rich people's fault...
----
----
YES, THE SYSTEM IS RIGGED
In his latest rant
during an hour-long speech in Connecticut, Donald Trump lashed out he would be leading Hillary Clinton by 20% if "the
disgusting and corrupt media covered me honestly and didn't put false meaning
into the words I say." Threatening
to revoke The New York Times' press credentials (just as he did The Washington Post), Trump -
somewhat understandably exclaimed "these are
the most dishonest people," pointing to the press corps.
----
----
Louisiana National
Guard troops are set to drop water and other supplies from helicopters Sunday
to more than 1,500 motorists who have been stranded on Interstate 12 for almost
24 hours. The state is reeling, and more than 7,000
people have been rescued from their homes after historic floods swept across
the state.
----
----
ME & WORLD ISSUES
A review of a recent
study into the intelligence gathering process of CENTCOM reveals consistent,
intentional efforts by senior military officials to "suppress" and
"soften" intelligence related to America's fight against
ISIS.
----
----
The political and
economic issues broadly discussed in the media usually revolve around political
cycles, terrorism, foreign policy, rising debt levels, sluggish economic
performance, academic underachievement, environmental problems, ageing
demographics and so forth. In our view, this all ties into a major cycle of
history that has been with us for some time, and which has been gaining
traction since the 1990s: the
end of "Western Civilization" and the transition towards a globalized
society.
----
----
GLOBAL RESEARCH
Thousands
of Saudi-Backed Terrorists Ready to Enter Syria via Border with Jordan By Fars News Agency
----
----
Wikileaks
Says They Have 1,700 Emails Proving Hillary Clinton Knew about U.S. Military
Weapons Shipments to Al Qaeda and ISIS
By Tara West
----
----
“The
Presidential Dementia Meme” Is Out There: Who Best Fits? Hillary or Trump.
Reliable Medical Records from Presidential Candidates By William Boardman
----
----
Steve Ellner: The
image of Venezuela as an oppressive failed state is really very far from what's
happening on the ground.
----
Professor Chris
Williams says even the U.S. Department of Defense is speaking of climate change
in the present tense
----
Jules Boykoff, author
of Power Games: A Political History of the Olympics, says protest mobilizations
have brought attention to the corruption and mis-spending around Rio's
'corporate sport party for the 1 percent'
|
----
----
|
|
NOTICIAS IN SPANISH
La Victoria de Trump en las
primarias del Partido Republicano agita la política estadounidense Dan La Botz
----
----
----
----
PRESS TV
Where these weapons came from?
----
----
The Ec situat is so
bad that they opt to give away life to devil
----
In war time nothing
come from heaven
----
Is there any
blackmail to release F Gulen?
If oil is the
problem.. nothing can be done by our pancake
----
----
Once we open a
Pandora box .. no way to control evil spirits
----
Corporate media is
under fire now .. nobody trust them
With the alternative
media .. we all can beat them
----
Kuwait nabs 10 Iranians for 'infiltration' Emirates are easy target
----
US satisfaction with country low: Poll only 27% according to Gallup
----
Fact 1: more GOPs are
islamofobic .. Trump is capitalizing that audience
Fact 2: Killary
islamophobia: greater than words.. Hill used them as toiled paper
----
Any police killing,
deepens division of American society
Solution: don’t arm
them to kill; arm them for peace & reconciliation
----
Violence
flares up in South Sudan get out
of there asap
African front against
US is under way .. China is playing Chess,
.. we are still
playing checkers with intrusion in Chi-Jap mess
----
How many million have been saved when taking them out?
----
We intentionally try to divide them ..
.. and they responded with fraternity and Union
----
All Europe policy is obsolete .. they sell weapons &
violence ..
..and then after complain on the tit for tat violence.
----
It is time to revise & cancel our relation with
Saudis & Israel
----
This is part of the war we are in .. the worse for us
will come..
.. when cyber sabotage come to our banks inside &
outside ..
Those banks used to manufacture dollars from the thing
air.
----
Afghanistan
was 'Obama’s war': Trump thai is a fact.. the ..
..question is who benefit from the drug trafficking in
Afg?
----
World corp media is controlled by 5 US-Israel giants ..
.. our nasty ally
----
More
forces in South Sudan? Is the UN covering imperial aims there?
----
Debate:
Impacts of Lebanon's victory against Israel
----
We are destroying entire nations to protect evil allies
----
===
No hay comentarios:
Publicar un comentario