By David Stockman: GM blamed a low-level engineer for its ignition switch fiasco. That doesn’t even merit an “oh puleese!” I speak from personal experience: I owned a supplier that was smashed to smithereens by GM’s engineering and purchasing bureaucracy.
By Don Quijones: Quietly, the rules governing global trade and financial markets are being changed. Despite the enormous impact they have on our lives, the public is not consulted. Most people are not even aware it is happening.
No, I didn’t sell out, though I had an offer. Don’t worry, I won’t go mainstream. Or go soft on Wall Street. I won’t water down my sarcasm, either. But there are big changes coming.
By David Stockman: Coach just had an earnings fiasco. Sales plunged 21%. Prospects are worse for the period ahead. Store closings are coming. That's the payoff for playing the destructive game of the Wall Street casino.
By Hilary Barnes: The impression that the French government was not going to cave to trade unions on its reform of the state rail system was wrong. After causing rail chaos for 10 days, trade union militants got what they wanted.
So what happens when these huge and reckless buyers with their nearly endless resources start cutting back after a phenomenal peak? Well, we know what happened in 2008.
By Jeff Clark: There were no surprises in the Fed’s announcement yesterday. But interest rates may give us one anyway. Take a look at this chart of the 30-year Treasury bond yield.
By Andrew Topf: No-brainer? Thorium is abundant and reactors are more efficient than uranium reactors. They yield less waste, which is also less radioactive. So what's the snag?
The fundamental and largely invisible shift in Western economies from the markets to central management.
By Scott Belinksi: Gazprom’s mega-deal with China sent shockwaves around the world. But Gazprom might not be able to honor the deal if shale reserves are not tapped soon. And that might not happen because capitalism à la russe is a harsh mistress.
Politicians and Eurocrats have already taken credit for the recovery, and a whirlwind of backslapping has ensued – prematurely, it turns out.
By David Stockman: The headline is a thunderbolt: “Fed Looks At Exit Fees On Bond Funds”—exit fees designed to stop small investors from exiting bond funds in a crisis. But it could trigger the very kind of run on bond funds it’s designed to prevent.
By Lee Adler: Here’s something I missed that started back in May, and it just got bigger. It makes me mad as hell. And it should make you mad as hell too.
It always starts with a toxic mix: Home sales plunged and inventories jumped in May. The housing market is buckling under its own inflated weight.
By David Stockman: These realities reflect a dangerous fiscal and social policy breakdown. They're also thumping proof that monetary policy has exactly nothing to do with employment conditions and job creation.
I was interviewed by Jorge Nascimento Rodrigues for "Janela na web" (a Portuguese site) and the printed edition of Expresso. After what I said, he might never interview me again :-]
Executive Report, ISA Intel: OPEC’s 2nd largest producer has the 5th largest reserves in the world and is one of the last places with enormous amounts of underexplored low-cost oil.
By Don Quijones: When it comes to creative accounting, few can hold a candle to Spain's finance minister Cristobal Montoro, who unveiled his latest scheme to “grow” the economy: adding prostitution and illegal drugs to GDP to solve a host of urgent problems.