Financial topics

[aedens]

Bridgewater, was kind enough to remind the world just how pointless any debates about Europe's future viability are if the primary funding conduit: the EFSF/ESM hybrid can not provide the cash needed for even half the combined funding needs of Italy and Spain.

Is the master assumed to be an honorable man, or is he a partner-in-crime with his steward?
Has the steward obliged the renters to sign bills for amounts greater than the actual debts?
Is his reduction of the debts merely a surrender of his dishonest cut?
Is the steward an estate manager dealing with land rentals or is he an authorized agent for a moneylender?

Of a few small positions they are commissioned to duration of 2020
I tend to feel as we do here the eye has come. No we cannot guage this yet.

Level I - pathological defences (i.e. psychotic denial, delusional projection)
Level II - immature defences (i.e. fantasy, projection, passive aggression, acting out)
Level III - neurotic defences (i.e. intellectualization, reaction formation, dissociation, displacement, repression)
Level IV - mature defences (i.e. humour, sublimation, suppression, altruism, anticipation)

Think then ask. Spain already tipped there hand. World’s Central Banks cannot possibly hope to contain the coming disaster. They literally
have one of two choices:
1) Monetize everything (hyperinflation) 'Havenstein Moment'
2) Allow the defaults and collapse to happen (mega-­deflation)
Yea 10 cents on the dollar sale in the political economy just as before. Imagine that...
Cheerfull, usefull or village idiots think blue or red. In the past I was all.

[aedens]

http://www.khou.com/home/Honor-Student- ... 47275.html

From 2007 to 2010, the number of PhD recipients receiving entitlements has tripled to 33,655 and the number of master’s degree holders on food stamps and other forms of welfare nearly tripled during that same time period to 293,029, according to an Urban Institute study cited by the Chronicle of Higher Education.

Employers say they cannot find educated people.

You Americans are so gullible. No, you won’t accept communism outright, but we’ll keep feeding you small doses of socialism until you’ll finally wake up and find you already have communism. We won’t have to fight you. We’ll so weaken your economy until you’ll fall like overripe fruit into our hands.’ — Ezra Taft Benson Speech, 1966, repeating Soviet Union’s Kruschev’s warning.

I was informed you should vote for a generic democrat. What is announced these days is asounding.

http://www.prudentbear.com/index.php/th ... t_id=10674 balance of opinion

[OLD1953]

http://www.khou.com/home/Honor-Student- ... 47275.html

From 2007 to 2010, the number of PhD recipients receiving entitlements has tripled to 33,655 and the number of master’s degree holders on food stamps and other forms of welfare nearly tripled during that same time period to 293,029, according to an Urban Institute study cited by the Chronicle of Higher Education.

Employers say they cannot find educated people.

You Americans are so gullible. No, you won’t accept communism outright, but we’ll keep feeding you small doses of socialism until you’ll finally wake up and find you already have communism. We won’t have to fight you. We’ll so weaken your economy until you’ll fall like overripe fruit into our hands.’ — Ezra Taft Benson Speech, 1966, repeating Soviet Union’s Kruschev’s warning.

I was informed you should vote for a generic democrat. What is announced these days is asounding.

http://www.prudentbear.com/index.php/th ... t_id=10674 balance of opinion

http://intelligencewars.com/

Of course they can't find work, with over 100,000 dollars of short term debt they MUST pay, with no bankruptcy relief, what do you expect? Younger people with a PhD cannot "work their way up", that avenue is closed to them, they have to find a job that will enable them to both live and pay a wage high enough to service their college loans. So what city can you find me that has a cost of living cheap enough, enough public transportation and jobs that pay well enough for a new PhD who did the "smart" thing and went straight through school to manage to survive their college loans, especially given that they are young and want to start a family? If they are indigent they don't have to pay, but that makes the problem worse over time as the interest still piles up and the payments get ever higher. We are busily creating a class of highly educated workers who ARE NOT ALLOWED TO WORK IN THE US! And people wonder why the educated are immigrating.

http://www.asa.org/policy/resources/stats/default.aspx

Couple of notes about that link, first, it's from 2007 data, the situation currently is MUCH worse. Second, if you read carefully, quite a bit of borrowing is on credit cards, which also can no longer be discharged via bankruptcy. And finally, the list shows that professional degrees, legal degrees and medical/pharmacy degrees are the most expensive for a PhD or a degree to allow you to work in the field, and those are the ones we claim to need.

Really, it's come down to telling young people, "you can be brilliant and the best at what you do, and if you work in the US, we'll keep you in poverty for at least ten years after graduation, while you struggle to make ends meet, or you can immigrate, get rid of the debt, and become well to do over that same period of time. We trust you'll do the "right" thing.".

At some point, it would be instructive to figure up the gross per square foot of a university classroom over a year. It is high, very very high. When professors at low end legal schools complain about "only" making mid six figures, while the students struggle to pay their bills, then something has gone out of balance in the system. Decades ago I was paying what figured up to be over 100$ per classroom hour. That's a high rate indeed for a dozen students and one paid worker.

For an article on "cracked" this guy makes a lot of sense. We're all in it together, and we can't just say "crap on everyone who didn't make it as well as I did". Even though that's what happens when the Nomads take power, before the crisis really hits and they have to finally grow up.

http://www.cracked.com/blog/6-things-ri ... op-saying/

******

The sentiment driving the market today is foreign to me. The big economic news is a plan in Europe to arrange things so they'll never bail out banks again. Bailouts are the sole thing that has propped up the banks and markets since 2007. So a plan to end bailouts would drive the markets down, correct? No, open is 95 points up on the DOW.

This kind of meaningless market movement is going to wind up in a crash. It' simply can't do anything else. When markets are driven in no particular direction for an extended period, they end up dropping.

[aedens]

When in the course of Human events. Basically PBOC and BOJ merged just as JPM and Roth have done.
The so called narrative is America's debt induced stupor of intent. Red or Blue cannot help you.
I expect SDR trade certs to replace paper sooner than later than our 2015 ish guestimation we observed some time back.
http://www.youtube.com/watch?v=eD_ybaXh ... ata_player

I tend to feel as we do here the eye has come. No we cannot guage this yet.
Getting alot closer. Soft targets are underway. Press and now visual media soft policy.

Level I - pathological defences (i.e. psychotic denial, delusional projection)
Level II - immature defences (i.e. fantasy, projection, passive aggression, acting out)
Level III - neurotic defences (i.e. intellectualization, reaction formation, dissociation, displacement, repression)
Level IV - mature defences (i.e. humour, sublimation, suppression, altruism, anticipation)

Pick one since you have no choice.
http://www.youtube.com/watch?v=LlzX2u6W ... re=related

[Higgenbotham]

I don't think the market is going to crash just yet. It may get about a week of relief and actually could rally strongly enough to convince everyone the worst is over. If it doesn't start to rally sometime tomorrow, then I don't know what's going on.

Back to this from Sunday night. Sunday night did turn out to be the low in the futures and stocks have rallied now for 3 days. For some reason, I am getting a crash vibe tonight. I believe the stock market may crash from this closing high, similar to how the May 29 closing high started a downdraft but that wasn't the real crash just yet. I have no logical reason to draw this conclusion. Everyone knows that tonight Janet Yellen said she'd love to print more money and supposedly she has Bernanke's ear and we can all assume that tomorrow Bernanke will say that he too would love to print more money. So stocks should be going up as far as the eye can see. But to me, the markets look and act like they finally have nothing left in them and are going to collapse. Like another few trillion ain't going to help - might even cause the patient to have a fatal heart attack or the bridge to collapse.

[aedens]

http://www.zerohedge.com/news/did-sec-h ... ket-plunge
Trot out the a few who warned and now are on a leash to comfort the
poor confused vanillas. TBTF is TBTE

[Higgenbotham]

Previously, but not in these words, I had said that the time horizon for predictability in the financial markets is approaching zero. In other places we talked about the chaos created by QE in the moral, social, and financial arenas. This is all one and the same. As the time horizon for predictablity continues to approach zero, chaos is growing exponentially. I believe they have gone in so heavy with QE that monitoring the degree of chaos is actually the only way to predict a crash at this point. The crash is predictable only in the sense that there is very little order or predictability left in the system and most movement is chaotic. Since the HFT exists only for the purpose of making money based on algorithms which predict the market, once only a certain very small time horizon of order remains such that profit is impossible to attain, they will crash. This I believe is also similar to the statement by the author of The Coming Dark Age pdf that as a dark age approaches, the time horizon for creating and maintaining records of lasting value becomes shorter and shorter. And, surely, if you want to blow up the financial system, you want to computerize the records and the money and blow them up with it.

[Trevor]

I don't think we can know for sure just when the stock market is going to collapse. Frankly, I thought we'd have been well on our way buy now, but it does seem to be holding roughly steady. It was at a 6-month low at the beginning of the week, but managed to rally.

That being said, there does seem to be a growing understanding that we're in for major trouble. Several months ago, I told people we were in for another depression and they blew me off. I'm saying the same thing now and while they're not convinced, people do seem to at least know the possibility if not all the specifics.

[Higgenbotham]

I suspect that the crash is starting. One reason to suspect it is the market is trading below the level it was trading at when China announced the rate cut, which set off an orgy of buying in the futures markets early this morning. When China released their poor PMI last week, the Central Bank immediately put out a bulletin saying more stimulus was forthcoming. That held the market up for a few hours before it dropped. I made a mental note of that and that trend is continuing.

[Trevor]

Because of the economy, the young generation are beginning to be referred to as a new "Lost Generation". More interestingly, some of them are seeing themselves this way. http://www.cbsnews.com/2100-201_162-20110000.html

I've seen just what college is costing. At my local college, the tuition rates have doubled in just five years and that doesn't include the ten percent increase that occurred in 2012. I'd like to know just where all that money is being spent. It's certainly worth investigation at least, not that I see it happening in the near future. If I had to hazard a guess, I would say that most of it is going to hiring more and more administrators, not to mention all the fat pay raises that they're receiving. The president of this school gets paid 350,000 a year, not including all the benefits he receives, such as free housing. I heard somewhere (can't swear to this, but it wouldn't surprise me) that in the past 15 years, college teachers have only increased by 15 percent or so, while the number of administrators has more than tripled over the same time frame.

And after going 25,000 or more into debt, you may not even get a good job to pay off all of your student loans. Half of all graduates are unemployed or underemployed a year after graduation. It's getting to the point where many are just not bothering to go to college. If you want an example of waste, look at our colleges.