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Old 09-27-2018, 02:11 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,606
Mor bumps in the road

9/26 Governments face debt time bomb; blue states are worst off – LifeZette
Just a coincidence.
9/26 Jim Grant – the calm before the storm: defaults ahead – Value Walk
You MUST believe a guy who only wears bow ties.
9/26 Report: ‘True cost of government’ has state $11.6 billion in the red – Florida Watchdog
They just forgot to mention a few details.
9/26 Uber drivers make $9.20/hour, half of what they earned four years ago – Zero Hedge

9/26 Bonds flashing a “late 2007” signal… remember what came next? – Graham Summers
Nope, I already forgot. Stocks are peaking and insiders are selling out. But, since YOU are in a passive investment fund, you signed up for the roller coaster ride to hades.
9/26 Default shock in India sees firms pulling most bonds in decade – Bloomberg
Get used to it.
9/26 Wealth of top 1% surpasses $100 trillion: more than global GDP – Zero Hedge
Yup, they have been snorting Viagra.
9/26 Tokyo Whale sells $230 million of bitcoin in Mt. Gox wind-down – Bloomberg
Yup, the big flashing sign that says EXIT.
9/24 B of A: Peak home sales has been reached – Zero Hedge
Just wait til the FED does 2 more rate hikes.
9/26 President Trump is ‘not happy’ with Fed’s decision to raise interest rates – CNBC
Yes, fiscal policy vs monetary pollicy.
9/26 Brexit agreement could come in October, Germany’s Merkel says – CNBC
Don't hold your breath.

9/26 Europe, Russia and China join forces to dodge Iran sanctions – CNBC
9/26 EU rebukes Trump, will create “special vehicle” to bypass US sanctions on Iran – Mish
9/26 Trump, Iran’s Rouhani exchange threats, insults on U.N.’s world stage – Reuters
9/25 Tensions grow as China, Russia and Iran move towards multipolar world – SC

Having the reserve currency eventually becomes a curse. The R.O.W. DEMANDS that we over-print so that they will have reserves. That leaves us with an enormous trade deficit AND unemployment. Why produce when you can just print? The R.O.W. is reluctantly abandoning the dollar. Trump is hurrying things along. He pushes everybody to abandon the dollar by sanctioning them. We will no longer be able to run our $1.5 billion a day trade deficit. We will actually have to work and produce the things that we previously paid for with green confetti.
The FED had to inflate the snot out of the dollar supply to meet the demand for reserves.
This monetary inflation created steady price inflation to where we could no longer afford houses and kids.
The jobs will return when the trade deficit comes to an end.

9/26 Default shock in India sees firms pulling most bonds in decade – Bloomberg
Bonds will eventually be ground zero.

"Free riding is one of the oldest problems in economics and in society in general. Simply put, free riding describes a situation where one party takes the benefits of an economic condition without contributing anything to sustain that condition."
"Eventually a tipping point arrives when there are so many parasites that the elephant dies. At that point, the parasites die too. It’s a question of short-run benefit versus long-run sustainability. Parasites only think about the short run."
Parasites NEVER think about death
"An active investor is one who does original research and due diligence on her investments or who relies on an investment adviser or mutual fund that does its own research. The active investor makes bets, takes risks and is the lifeblood of price discovery in securities markets."
"A passive investor is a parasite. The passive investor simply buys an index fund, sits back and enjoys the show"
Personal axe to grind.

"the following chart shows that this is exactly what is happening. Since 2009, over $2.5 trillion of equity investment has been added to passive-strategy funds, while $2.0 trillion has been withdrawn from active-strategy funds."
"Passive investors may be enjoying the free ride for now but they’re in for a shock the next time the market breaks, as it did in 2008, 2000, 1998, 1994 and 1987."
"The market crash will be like a runaway train with no brakes."
The algos will roll like a snowball down a mountain slope. Nobody who is a passive investor will have any control.

How to Prepare For the Coming Inflationary Storm
The storm will bring both inflation and deflation.
The closer an asset is to a must survival position, the more it will inflate. 1600% for farmland, bought up by investors, rather than farmers.

All that FED hot money went into anything that could be considered a store-of-value. This has really screwed the millennials.
The EU / IMF is trying to scare Britain into remain,
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