Here We Go Again: Obama Pushes Banks To Lower Home Loan Standards

Recently, White House Press Secretary Josh Earnest said the following: “One of the key legacy achievements of this presidency will be the important reforms of Wall Street. Those reforms have led to a financial system that is more stable and ensures that taxpayers are not on the hook for bailing out financial institutions that make risky bets.” Evidently the Obama administration has a different definition of “risky bets”, and “taxpayers not on the hook” than most people, because as the Washington Post reports: The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place. … administration officials say they are working to get banks to lend to a […] Read More

How A Pork Bellies Trader And Milton Friedman Created “The Greatest Trading Casino In World History”

“I held in my hand the Holy Grail for the Chicago Mercantile Exchange. The most influential economic mind of the twentieth century provided the CME with the intellectual foundation upon which to build its financial superstructure.” Nixon’s estimable free market advisors who gathered at the Camp David weekend were to an astonishing degree clueless as to the consequences of their recommendation to close the gold window and float the dollar. In their wildest imaginations they did not foresee that this would unhinge the monetary and financial nervous system of capitalism. They had no premonition at all that it would pave the way for a forty-year storm of financialization and a debt-besotted symbiosis between central bankers possessed by delusions of grandeur and private gamblers intoxicated with visions of delirious wealth. In fact, when Nixon announced on August 15, 1971, that the dollar was no longer convertible to gold at $35 […] Read More

“Bernanke & Greenspan Have Destroyed America” Schiff & Maloney Warn “People Don’t Realize What Is Coming”

Ali and Frazier, Laurel and Hardy, Mayweather and Pacquiao, Liesman and Santelli, and now Schiff and Maloney. Peter and Mike join clash of the titan-like to discuss their investment strategies and expose the charts the government doesn’t want you to seeas “people like Bernanke are taken seriously still and the people that did predict [the crisis] are dismissed as lunatics half the time.” The wide-reaching conversation covers everything from gold and stocks to The Fed and The Dollar – Bernanke “took the coward’s way out because all he did was exacerbate the problems to postpone the day of reckoning.” The air is coming out of the bubble, they warn, “Bernanke and Greenspan have absolutely destroyed America. People don’t realize what is coming…” Full interview here: Full transcript below: Mike: I was in Puerto Rico a little while back and Peter Schiff invited me over to his house and we […] Read More

Eight Points on the Investment Climate and the Dollar

1.  The swing in the pendulum of expectations back toward a mid-year Fed rate hike is one of the key developments that will shape the investment climate.  The data in the week ahead, including the broader measures of the labor market, like the Fed’s new index (Labor Market Activity Index) and JOLTS (Job Opening and Labor Turnover Survey), and core retail sales will strengthen the view.   The rise in US interest rates will lend the dollar support and allow the appreciating trend to continue after a consolidating over the last few weeks.   Equity investors need to adjust to the rise in interest rates.  High dividend payers and utilities are vulnerable.  US companies have expanded overseas more by direct investment than exporting.  That means that while they earn revenues in foreign currencies they also incur local costs.  In addition, many producers price and invoice in dollars.  In any […] Read More

The Truth About The Monetary Stimulus Illusion

Authored by Tadashi Nakamae of Nakamae International Economic Research, Perhaps economic policymakers, including Federal Reserve Chair Janet Yellen and the Bank for International Settlements, should take a closer look at Japan, China, and yes, the United States, when debating the limits of monetary stimulus and the dangerous nature of financial bubbles. The discussion is happening too late to be anything more than an intellectual exercise. Since its inception in 2008, easy monetary policy has created very few positive effects for the real economy—and has created considerable (and in some cases unforeseen) negative effects as well. The BIS warns of financial bubbles. Quantitative easing has already created asset price bubbles in the United States and elsewhere, and an investment bubble (this includes capital expenditure and real estate) in China and other emerging markets. Meanwhile, this policy has failed to have a positive impact on the real economy partly because central […] Read More

The American People Are Utterly Clueless About What Is Going To Happen As We Enter 2015

Submitted by Michael Snyder via The Economic Collapse blog, The American people are feeling really good right about now.  For example, Gallup’s economic confidence index has hit the highest level that we have seen since the last recession.  In addition, nearly half of all Americans believe that 2015 will be a better year than 2014 was, and only about 10 percent believe that it will be a worse year.  And a lot of people are generally feeling quite good about the people that have been leading our nation.  According to Gallup, once again this year Hillary Clinton is the most admired woman in America and Barack Obama is the most admired man in America.  I don’t know what that says about our nation, but it can’t be good.  Unfortunately, when things seem to be going well common sense tends to go out the window.  A couple days ago, the […] Read More

The Most Destructive Generation Ever

Submitted by Raul Ilargi Meijer via The Automatic Earth blog, Dorothea Lange Hoe culture in the South. Poor white, North Carolina July 1936 I’m afraid I got to delve into a particularly unpopular topics once again today. Blame it on Bloomberg. They ran a piece on the Silent Generation (people born between 1928-’45), which finds it self in a ‘sweet spot’ but refuses to spend enough. A funny problem: the by far richest group in the US doesn’t spend, while those who would like to spend, for instance to build a home and a family, are too poor to do it. I know I’m not going to make myself popular with what I have to say about this, but then I’m not running for US President, or Miss Universe for that matter. Besides, people should be careful about taking things personal that are not. My point is that the […] Read More

19 Surprising Facts About The Messed Up State Of The US Economy

Submitted by Michael Snyder of The Economic Collapse blog, Barack Obama and the Federal Reserve are lying to you.  The “economic recovery” that we all keep hearing about is mostly just a mirage.  The percentage of Americans that are employed has barely budged since the depths of the last recession, the labor force participation rate is at a 36 year low, the overall rate of homeownership is the lowest that it has been in nearly 20 years and approximately 49 percent of all Americans are financially dependent on the government at this point.  In a recent article, I shared 12 charts that clearly demonstrate the permanent damage that has been done to our economy over the last decade.  The response to that article was very strong.  Many people were quite upset to learn that they were not being told the truth by our politicians and by the mainstream media.  […] Read More

The Fed Has A Big Surprise Waiting For You

Submitted by Raul Ilargi Meijer via The Automatic Earth blog, Risdon Tillery Greenwich House day care, New York May 1944 The topic of potential interest rate hikes by central banks is no longer ever far from any serious mind interested in finance. Still, the consensus remains that it will take a while longer, it will take place in a very gradual fashion, and it will all be telegraphed through forward guidance to anyone who feels they have a need or a right to know. Sounds like complacency, doesn’t it? Now, it seems obvious that the Bank of Japan and the ECB are not about to hike rates tomorrow morning. In Europe, dozens of national politicians wouldn’t accept it, and in Japan, it would mean an early end to many things including Shinzo Abe. But the Bank of England and the Fed are another story. Though if the Yes side […] Read More

America’s Poor Have Never Been Deeper In Debt

Ever since the Lehman bankruptcy, one of the main reasons given by the perpetual apologists about why i) the so-called “recovery” has been the worst in US history and ii) the Fed has been “forced” to conduct 6 years of wealth transferring policies, boosting the stock market to all time highs and creating a record wealth split in US society between the super rich and everyone else (one that surpasses even that seen during the roaring 20s) is that the US consumer, scarred by the economic crash, has been rushing to deleverage and dump as much debt as possible. There are two problems with that story: First, as we first pointed out in 2012, US households are not deleveraging, they are defaulting, a huge difference which goes to motive and intent, and shows that instead of actively paying down debt households are instead loading up on as much debt […] Read More

Gold And What The High Priests Of Funny Money Don’t Want You To Know

Steve Forbes has had enough of the Federal Reserve and its “sinning” policies to undermine the dollar. In this brief interview with Birch Gold Group, the publisher and CEO of Forbes, Inc. exposes the damage that the central bank has created, “Bernanke was a disaster…has totally mucked up the credit markets.” Blasting Janet Yellen “who needs to go to re-education camp,” Forbes explains why he believes so strongly in the gold standard, and the one single scenario under which he would ever sell his gold.     Rachel Mills for Birch Gold Group (BGG): I am so glad to be talking with Steve Forbes, here at FreedomFest. My name is Rachel with Birch Gold Group. Can you talk a little bit about the Federal Reserve printing money these days. And the Federal Reserve recently announced that they have decided to stop printing money by October. Do you think that […] Read More

“There Is No Honest Pricing Left” – The Epochal Error Of Modern Central Banking

Submitted by David Stockman of Contra Corner blog, David Stockman, Director of the Office of Management and Budget under Reagan, former Congressman, and author of the bestseller The Great Deformation: The Corruption of Capitalism in America, discusses his book, the gold standard, bailouts, and the problems the American economy faces today. Mises Institute: In the book, you oppose Bernanke’s view of the Great Depression, which you point out relies heavily on the views of Milton Friedman. David Stockman: Bernanke has cultivated this idea that he is a brilliant scholar of The Great Depression, but that’s not true at all. What Bernanke did was basically copy Milton Friedman’s misguided and very damaging theory that the Federal Reserve didn’t expand its balance sheet fast enough by massive open market purchases of government debt during the Great Depression. Bernanke therefore claimed that monetary stringency deepened and lengthened the depression, but in fact interest […] Read More

The Modern Investor’s Manifesto

Submitted by Tim Price via Sovereign Man blog, “The stock market is filled with people who know the price of everything, but the value of nothing.” – Philip Fisher. A personal perspective on some of the challenges facing today’s investor: 1. The Communist experiment of the planned economy did not work. 2. Not only did it not work, it impoverished millions. 3. Western central banks, their client governments, and agents in the economics “profession” seem unaware of this fact, or wilfully disregard it. 4. People respond to incentives. Everything else is detail. 5. Adam Smith’s invisible hand does work, if left well alone by the dead arm of bureaucracy. 6. In the aftermath of the breakdown of Bretton Woods, ‘developed’ governments have amassed unpayable mountains of debts. 7. A culture of entitlement has made these debt mountains higher. 8. These debts will never be repaid, except in devalued money. […] Read More