The Bank of Japan could not stand to be left out of central bank idiocy and decided to join the demolition duo comprised of the ECB and U.S. Fed. The BoJ announced that it will waste an additional 10 Trillion Yen on its so called asset purchasing fund. It is quite amusing to see another central bank that is incapable when it comes to the identification of assets. The most basic definition of an asset is something that puts money into your pocket. This definition is simplified to pre-school difficulty. This means even a five year old would...
This week may very well record the highs for the year as far as major global benchmarks are concerned. Equity markets have enjoyed this artificially induced rally, especially after central banks from Frankfurt to New York to Tokyo have acted in such an idiotic manner which allowed dumb money investors to keep pushing the markets to multi-year highs. Does this sound familiar? Well, it should. I have one word for you, actually it is a number: 2008. During the summer of 2008 investors ignored all the bad news and were in a state of trance...
The Euro in its current form cannot and will not be able to exist. The markets have been relatively calm over the past few weeks which is also known as the eye of the storm. Several geopolitical problems currently enjoy this eye of the storm sense of calm and security. Policy makers as well as traders should be extremely careful as the clouds get dark faster than dumb money can congratulate them on what they believe has solved the Eurozone debt contagion. Their guard is down and they have no idea what calamity is moving their way. The ECB...
When it rains it pours. Japan has made one big crucial mistake in the late 90’s in direct response to its own financial crisis. Yes, they bailed out their system and thought they made an intelligent move. That was in 1999. Why anyone thought economic socialism would be the right response to idiotic fiscal policy combined with extensive mismanagement of portfolios remains an unresolved mystery. Nevertheless, it did happen and Japan has suffered ever since then. It has been over thirteen years since their policy misstep and Japan has...
The U.S. economy continues to disappoint on most major fronts. Third-quarter GDP rose 2.0% and GDP for the first nine months of this year has been 1.7%, below the growth rate of last year. The downward spiral will continue its path and most factors which will contribute to a slightly better reading than idiotic economists forecast will be attributed to more debt. Consumer spending rose 2.0%. Consumers are the backbone of the U.S. economy and accounts for roughly 70% of all economic activity. Consumers have been stretched since 2008 and...
