Financial topics

[Higgenbotham]

http://www.safehaven.com/article/29851/ ... l-euphoria

Thanks, Vince. Also from the article:

"I see nothing in the environment inconsistent with my view that this is the biggest, most precarious Bubble in history.

I've briefly addressed excesses that led to the 2000 collapse. Well, there's a bevy of relatively recent (from a historical perspective) booms and busts to compare to: the stock market crash of 1987; the late-eighties Japanese Bubble; the 1992/3 bond Bubble; Mexico; SE Asia; Russia; Argentina, Brazil and Latin America; Iceland; U.S. mortgage finance; European debt, etc.

Nothing, however, even remotely compares to the current global Bubble environment."

Doesn't matter how I slice it or dice it, that's what I come up with too.

[vincecate]

Hussman: "I see nothing in the environment inconsistent with my view that this is the biggest, most precarious Bubble in history."

Doesn't matter how I slice it or dice it, that's what I come up with too.

We all agree this is a bubbly time. But some people think the bubble is in gold and silver, some in bonds and dollars, some in stocks.

If bonds and dollar become worth far less, then stocks and gold might go up.
If gold and silver become worth far less, then bonds and dollars might go up.
It is important to be right about where the bubbles are.

The Yen is down about 5% in the last month. By betting against the Yen and for silver, it is sort of like "buying silver in Yen". And I am very happy with this. It does not matter if there is a bubble in US bonds and US dollars or not. I am sure there is a bubble in Japanese bonds. They were paying 0.69% for 10 year bonds and doubling the monetary base. I am just sure that is bubble pricing on bonds. And when a bond bubble that big pops you get hyperinflation, so the currency will be way down.

[Higgenbotham]

http://www.safehaven.com/author/74/robert-mchugh

Some of his articles from 2012 are worth looking at again.

http://kingworldnews.com/kingworldnews/ ... bolic.html
http://kingworldnews.com/kingworldnews/ ... ation.html

"Eric King: “Jeffrey Saut spoke to KWN about this being one of the greatest buying stampedes ever, saying he’s never seen anything like this in his 43 years (in the business).”

Cashin: “Well, I think he’s quite right on it. We’ve taken the market to areas that used to be considered extreme. The S&P is selling at a 25% premium to its 200-week moving average. That is very rarified air.

You can look at the number of stocks that have reached new 52-week highs, they are at a 35-year high going back into the 1980s. So you see things that ordinarily people would say, ‘The air is far too rarified here.’ Yet because of the concept that ‘I must buy the dip,’ they really don’t get a chance to dip.

I think Jeff is dead right. What did he say, 43 years? Well, I’ve got a couple of years on him and I’ll agree with that. It is unique and certainly rarified air."

"Cashin: “You are in uncharted territory in many ways. This is what the ancient mapmakers would call, ‘Terra incognita, or ‘Land unknown.’"

I hadn't read a lot of these types of comments until this weekend but this looks like generational panic to me.

[Higgenbotham]

We all agree this is a bubbly time. But some people think the bubble is in gold and silver, some in bonds and dollars, some in stocks.

Money supply and stocks are going parabolic so I would think the bubble is there.

I did McHugh's "Jaws of Death" pattern on the Dow after reviewing his articles from last year. Based on some of these comments from Art Cashin, it sounds to me like if the market goes straight up to that top line in a generational panic a lot of shorts will be trapped and ruined. Many are probably betting on a slow topping process like that seen in 2000 and 2007. At the same time, gold and silver may have their final washouts and ruin more investors. That would probably set the stage for a stock market collapse which will ruin the rest of the herd.

DOW JAWS OF DEATH.gif (71.21 KiB) Viewed 3275 times

[Higgenbotham]

A 285-unit apartment complex in Parla, less than half an hour’s drive from Madrid, should be an ideal target for investors seeking cheap property in Spain. Unfortunately, two thirds of the building generates zero revenue because it’s overrun by squatters.“This is happening all over the country,” said Jose Maria Fraile, the town’s mayor, who estimates only 100 apartments in the block built for the council have rental contracts, and not all of those tenants are paying either. “People lost their jobs, they can’t pay mortgages or rent so they lost their homes and this has produced a tide of squatters.”

Few things are more characteristic of a descendant society than the emergence of a squatter mentality (previously quoted from Widdowson).

[aedens]

The employees of the FED with gun powder and god like ability will decide who gets the kill switch as we know for so long here.
They will crash it to eliminate thought, action, liberty. George was right the boot on your face forever.

"The Oversight Committee knew about the audit because it requested it"

Of course Taxpayers need these people to lead us. We had it pegged spot on as they are us as we are them before the wall fell in passing.
All the same as we noted, Amerikans deserve it and moar until they cannot sit down. This Country is mentally rotted beyond comprehension.
Assholes voted this insanity. Spend time with normal people and try to clean up what idiots left behind locally. Run from the DC swamp as far
and fast since they are beyond toxic and beyond any normal regard. Omamacare is just literally the government up your ass now.

[Higgenbotham]

"A high stock market doesn't change anything except to show that this cycle is larger, Bernanke has had more freedom to tweak it at the end, and the worst possible path has been chosen. The ability to tweak the cycle has come from many unique factors. The US has the world reserve currency and has used that power to milk out and destroy Europe and Asia through the various QE programs in order to artificially hold up the US economy and stock market. This will not lead the world out of depression but will cause countries to topple like dominoes, probably starting with Japan, then the rest of Asia and Europe, followed by the world power centers of New York and Washington collapsing into chaos like Rome."

I wrote this yesterday and Tyler gives the detailed explanation of how QE "milks out" the rest of the world "to artificially hold up the US economy and stock market."

http://www.zerohedge.com/print/474106

[aedens]

Yea they reminded me of the cost a few straight shooters had to bear. I was correct in my view and so was they on
the kill switch from the internalized creatures on a specific case. I will read it and "take delivery" of the information.
I noted the article and the only difference is the seven sisters that are now the five pillars Higg. We noted the
articles on the nerve centers that are the issue as we read. Pipelines and the control of it through Syria.
Our other observation was the Northern ones which I will dig up later in the forums. Tyler noted it also
and they understand the carnage associated with it.

[Higgenbotham]

The Empire State Building is a 102-story skyscraper located in Midtown Manhattan, New York City, at the intersection of Fifth Avenue and West 34th Street.

Excavation of the site began on January 22, 1930, and construction on the building itself started symbolically on March 17—St. Patrick's Day—per Al Smith's influence as Empire State, Inc. president.

Construction started one month before the slide into the great Depression. The rebound peak in the stock market after the 1929 crash ended April 17, 1930.

Only 10 floors have been completed in what is intended to be the tallest residential building in the Western Hemisphere — a slender, 84-story tower on Park Avenue at 56th Street in Manhattan.

This is the building of the 21st century, the way the Empire State Building was the building of the 20th century,” Mr. Macklowe said.

I believe this is a highly significant parallel. It represents mass generational behavior.

[vincecate]

I wrote this yesterday and Tyler gives the detailed explanation of how QE "milks out" the rest of the world "to artificially hold up the US economy and stock market."

http://www.zerohedge.com/print/474106

He has a big, but common, error: " But to keep the yuan from appreciating against the dollar as a result of the increased supply of dollars from QE, the government of China must buy all the dollars anyone shows up with, at the pegged exchange rate."

This is just not true. The Chinese could keep the value of their currency low by printing money and buying anything, it does not have to be US dollars. They could buy European stocks, they could buy gold, they could buy up oil wells in the Arab world, whatever. If they print enough Yuan and buy enough stuff then they can drive the value of Yuan down. They do not have to buy US dollars. Big but common error.