By Don Quijones: There are things politicians should never do – assuming they want to hold on to their jobs. Using the dirty “s” word (sovereignty) is a definite no-no. Also high up on the list of “don’t dos” is threatening the interests of foreign creditors and bondholders.
By Dan Dicker, Oil & Energy Insider: The IEA report on Crude supplies has got me thinking, an accomplishment for the IEA; it has been woefully behind the curve on most major energy trends of the last two decades. But this time, it is finally in front of the curve.
Individual investors have a unique opportunity now to buy sewer bonds – yup, that’s where they belong – issued by a bankrupt county to pay off holders of defaulted sewer bonds who’ll get a fashionable haircut as part of the deal – a deal made in bond-bubble heaven.
By Charles Kennedy, OilPrice.com: Canadian plans for a large nuclear-waste facility on the Canadian side of Lake Huron, directly opposite the thumb of the State of Michigan, are triggering a cross-border public outcry and a looming diplomatic backlash.
NSA Spying Crushes US Tech Companies in Emerging Markets (“An Industry Phenomenon,” Says Cisco’s Chambers)
Cisco CEO John Chambers had a euphemism for it during the earnings call: “challenging political dynamics” in China, without ever naming the NSA. Then there was India and others, including Russia where Snowden is holed up, and where sales outright collapsed.
The huddled masses yearning to breathe free in the EU drown by the boatload in the Mediterranean. They languish in detention centers in Greece and elsewhere. They’re maligned, hounded, sometimes killed. But it’s getting cheaper and easier for the rich.
By Lee Adler, The Wall Street Examiner: Overlaying raw employment data from the Bureau of Labor Statistics with the Fed’s balance sheet offers surprising insights. Brief must-see video with excellent chart and explanation. Somebody should send it to Yellen.
By Michael Lombardi, Profit Confidential: More and more time-proven stock market indicators scream “Danger!” Investors are too bullish, an omen of lower stock prices ahead. The higher this market gets, I question how bad the sell-off is going to be when it finally hits.
We’ve known it all along, but now a former Fed insider confirmed it. QE, despite the Fed’s relentless efforts “to spin it as a tool for helping Main Street,” was “the greatest backdoor Wall Street bailout of all time.” But it’s complicated. He’s a revolving-door Wall-Street banker.
By Bianca Fernet, Argentina, The Bubble: In many circles, President Cristina Fernández de Kirchner is pinned up as the cause of Argentina’s cyclical and seemingly inescapable economic demise. But she is nothing more than the current face of Peronism, a political and economic model that limits her alternatives.
A new era has dawned: there is now a consensus that this is a stock market bubble. We’re back where we were during the last bubble, or the one before it. How do I know it’s not just some intrepid souls on the bleeding edge who are claiming this, but a consensus?
By Scott Belinksi, Oilprice.com: In Germany, where renewable energy has been aggressively pushed, companies may soon lose an exemption from expensive renewable energy surcharges. Business leaders worry this will "destroy Germany's industrial core."
Now “trade agreements” are negotiated behind sealed doors, without public oversight, beyond the reach of Congress. The text of the Trans-Pacific Partnership is secret, but some sections were leaked. It deals with trade only on the margins. Corporate interests dominate. It mocks democracy, establishes kangaroo courts, and taxpayers are on the hook.
After five years of QE, and $3 trillion in new money floating around, we now have asset bubbles everywhere. Risk is no longer priced into anything. In fact, it has disappeared as a factor. And the Fed is publicly fretting about it.
By Dave Forest, of Oil & Energy Insider: Sometimes geography works. To the north: America, natural gas superpower with a glut that killed prices. To the south: Mexico, where oil production is down, and politicians are desperate to move away from oil-fired electricity generation. Solution to both problems: gas pipelines south. But it’s not that easy.
By Don Quijones: Despite a miraculous economic “recovery,” EU-wide youth unemployment hit 24%. New records were set in Spain (56.5%), Greece (57.3%), Italy (40%), and France (26%). The warnings from history are clear: governments that allow youth unemployment to escalate, do so at their own peril.
Dan Dicker, Oil & Energy Insider: Manipulations and fraud in the capital and commodity markets: Now four traders from my old home, the NYMEX, are suing BP, Shell, Statoil, and Vitol Group for collusion and manipulating Brent oil trades to fix reported prices.
There has been a symphony of calls for American investors to plow their money into European stocks. So, net inflows into European equity funds have set records, driven by euphoria about a presumed recovery. Equities soared. But turns out, reality has bad breath.
By George Leong, Investment Contrarians: Apple is maintaining its position as top seller of smartphones in the US, but not in the global market. Unless it gains traction in the emerging markets, the stock is going nowhere – that’s what institutional money is saying.
Today it was Hotel Okura Co., which operates landmark hotels across Japan. It confessed its restaurants had misrepresented 235 menu items. That followed confessions by leading department store chains, other high-end hotel chains, traditional ryokan hotels.... New revelations bubble up daily. And consumer confidence is taking a hit.