Janet Yellen Gives the Green Light, Interest Rates to Remain Unchanged

(Image Source: Wikimedia Commons, the free media repository) “Stay the course”…that’s what Janet Yellen, the ultra dovish FED head is saying to the markets. In the most recent FED meeting, Yellen indicated that interest rates would remain unchanged for the immediate future. The reason for this was a sluggish global economy and stubbornly low inflation, according to the FED. Despite admitting this, stock markets rallied, sending markets to near all time highs. Ironically, all the global uncertainty and unrest around the world is seen as a positive in this upside-down world that we now live in. The reasoning for this, is the […]

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What on earth is the ECB up to?

The ECB has abruptly announced withdrawal of the “waiver” under which it was prepared to accept Greek sovereign bonds as collateral for liquidity. This created a considerable Twitter storm, with lots of angry people saying the ECB’s action was beyond its mandate and far too precipitate: it should at least have waited for the Greek Finance Minister, Yanis Varoufakis, to meet his German counterpart, and it should not be acting as if the bailout programme was ended when negotiations were still proceeding. I admit, I was one of those people. And I stand by my views. The ECB is acting […]

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The Stock Market In 2015 Is Starting To Look Remarkably Similar To The Stock Market In 2008

Are we watching a replay of the last financial crisis?  Over the past six months, the price of oil has collapsed, the U.S. dollar has soared, and a whole bunch of other patterns that we witnessed just before the stock market crash of 2008 are repeating once again.  But what we have not seen yet is the actual stock market crash.  So will there be one this year?  In this article, I am going to compare the performance of the Dow Jones Industrial Average during the first three months of 2008 to the performance of the Dow Jones Industrial Average […]

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Extension After Extension, EU Gives France Until 2017 to Cut Deficit

The European Union is in trouble. Germany cannot hold the remainder of the nations together forever. The German people know this, they are tired of supporting dead beat nations and those who technically don’t even meet the qualifications to remain in the Union. The media likes to focus on the woes currently afflicting Greece, granted their troubles are incredibly significant, as they are in reality bankrupt and can only stay afloat due to the bailout funds they receive from the EU and the IMF. Yet, Greece should not share all the scorn. Other nations, such as Spain, Italy and now France have […]

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My Favourite Greek Things

Fresh from the resounding success of “How do we solve a problem like Mario“, lyricist-extraordinaire Brian Lucey has a new song for the delectation of those interested in all matters Greek. Mario’s Favourite Things Haircuts on Greek bonds and ELA exploding,LTROs and OMTs, liquidity flowing,Wondering which of the lefties will win,These are a few of my favourite things. Deposits eroding and capital oozing,Taxes evading and cronies a-schmoozing,Yanis going cheap via German wings,These are a few of my favourite things. 13-month salaries and no privatisation,Structural reforms that are stuck at the station,Coming the Troika – what will it bring?These are a […]

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Gold Finds an Unlikely Ally in Apple, Third of Worlds Gold to be Purchased

The gold market may soon have an ally from an unlikely source. Technology giant, Apple, known for its innovative and stylish products plans on entering into the gold market in a big way. As recently announced, Apple plans on entering the ever more popular “smart watch” arena. A segment of the industry that is seeing incredible growth, due the increased capabilities and functionality of having a small computer around your wrist. As always, Apple’s line of products looks sleek, stylish and are greatly anticipated by its almost “cult-like” following of customers. Customers who seem willing to pay just about any price to have the latest […]

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Reforms, bloody reforms

From the OECD comes this chart showing which countries have done the most since 2007 to reform their economies: (h/t London Analyst):   Isn’t this marvellous? All those who say Greece hasn’t done any reforms now have egg on their faces. Greece deserves hearty congratulations for its reform effort. And as the headline says, all those reforms are paying off, aren’t they? From the OECD’s Economic Outlook dataset for November 2014, here is the GDP growth of the five best reformers since 2007: And here’s the GDP growth of the five countries that have done the least reform since 2007: […]

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Lobbyist and Government Say They’re Not Stupid?

“I’m from the government, and I’m here to help you”. This is a statement you don’t want to hear. It is common knowledge that government officials and the lobbyist that control a large majority of government officials will do just about anything to push their agenda, no matter what harm it may cause the broader general public. If the government truly cared about its people, it would not have sold our children’s future in the economic crisis that began in 2008. It would have swallowed its medicine and done the right thing, by bearing the brunt of the load this generation and ensuring a brighter future for all. Rather the exact opposite unfolded. The big […]

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The Battle of the Drafts

 Greece’s battle with the Eurogroup over its debt and bailout terms is heating up. And both sides have deployed a new and powerful weapon. The draft communique. It all started with the draft communique presented to the Eurogroup finance ministers meeting by Jeroen Dijsselbloem. This was leaked to the press by the Greek delegation, complete with angry annotations, before the meeting even started. When the Greeks rejected it, therefore, the press already knew both the contents of the communique and the reasons for its rejection. Round 1 to the Greeks. And Round 2, as well. After the meeting, Yanis Varoufakis […]

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5 Charts Which Show That The Next Economic Crash Is Dead Ahead

When an economic crisis is coming, there are usually certain indicators that appear in advance.  For example, commodity prices usually start to plunge before a recession begins.  And as you can see from the Bloomberg Commodity Index which you can find right here, this has already been happening.  In addition, I have previously written about how the U.S. dollar went on a great run just before the financial collapse of 2008.  This is something that has also been happening over the past few months.  Some people would have you believe that nobody can anticipate the next great economic downturn and […]

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