Painful To Watch: This Is The Weakest U.S. Economic ‘Recovery’ Since 1949

Most of us have never witnessed an economic “recovery” this bad.  As you will see below, the average rate of economic growth since the last recession has been the lowest for any “recovery” in at least 67 years.  And unfortunately, the economy appears to be slowing down even more here in 2016.  On Friday, I talked about how the U.S. economy grew at a painfully slow rate of just 1.2 percent in the second quarter after only growing 0.8 percent during the first quarter.  And last week we also learned that the homeownership rate in the United States has dropped […]

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The WASPI campaign’s unreasonable demand

As my readers will know, I have been watching the WASPI campaign with a growing sense of despair. Every attempt to find a realistic solution to their issue fails because it does not meet their demand for “fair transitional arrangements”. But they have steadfastly refused to say what “fair transitional arrangements” are – at least publicly. The 1995 Pensions Act included transitional arrangements. The rises in women’s state pension age (SPA) did not start for 15 years after the Act was passed, so did not affect women born prior to April 1950. And women’s SPA was to rise gradually from […]

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Deja Rear View or Who’s Sub-Prime Now?

Guest post from  James Cordelaine Rotten, Stinking Crooks and How They Crash Our Economy Sometimes I get mad (okay, lots of times) but this time I’m right on the money, literally. Everyone remembers the 2008 Great Recession; the giant gash torn through the global economy, from which we’re still trying to recover. Most people even know that one of the primary causes of that crash had to do with millions of defaulted subprime housing loans. What they don’t know is that lenders are at it again. They’ve taken a long, sober look at the shady practices that crashed our economy, rendered […]

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Barack Obama Is On Track To Be The Only President In History To Never Have A Year Of 3% GDP Growth

We just got another extremely disappointing GDP number.  It was being projected that U.S. GDP would grow by 2.5 percent during the second quarter of 2016, but instead it only grew by just 1.2 percent.  In addition, the Census Bureau announced that GDP growth for the first quarter of 2016 had been revised down from 1.1 percent to 0.8 percent.  What this means is that the U.S. economy is just barely hanging on by its fingernails from falling into a recession.   As Zero Hedge has pointed out, the “average annual growth rate during the current business cycle remains the weakest […]

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If You’re At All Exposed to Muni Bonds, You Need to Read This

The housing bust was awful, particularly in Florida and other “sand states.” As the economy slowed, consumers lost their jobs, and when they couldn’t pay their mortgages, they then lost their homes. Even though that wrenching period happened almost a decade ago, it will live in our memories for years to come. I can recall much of the pain, but also other aspects of the moment. Some people were desperate for the relief that came their way; others were using it as cover to game the system. We’re about to see the same thing happen again, but this time on […]

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Bitcoin’s security pricing problem

I can’t resist this. Blithely ignoring the utter mess he and his developers have managed to make of the cryptocurrency Ethereum, Vitalik Buterin has written a post on inflation and monetary policy. Wow. Is there no end to his talents? In this case, there is most definitely an end. Economics 101 is the end, pretty much. I don’t claim to be the world’s greatest economic expert – not by a LONG way – but the errors in this piece leapt out at me.  Firstly, inflation. Here is Buterin on inflation: The primary expense that must be paid by a blockchain […]

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Bye Bye Middle Class: The Rate Of Homeownership In The United States Has Hit The Lowest Level Ever

The percentage of Americans that own a home has fallen to the lowest level ever recorded.  During the second quarter of 2016, the non-seasonally adjusted homeownership rate fell to just 62.9 percent, which was exactly where it was at when the U.S. Census began publishing this measurement back in 1965.  This is not what a “recovery” looks like.  All throughout the Obama years, the percentage of Americans that own a home has gotten smaller and smaller and smaller.  The reason for this, of course, is that the middle class in America is dying.  Last year, we learned that middle class […]

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HARRY DENT: Central Bankers are Driving Us All Into the Dirt

One of the major triggers I’ve been warning about is already happening, even before we understand and/or admit that we are in a recession. Zero Hedge just picked up on an article from Jeff Cox at CNBC. Global corporate debt now sits at a record $ 51 trillion and is poised to hit $ 75 trillion by 2020 – just four years away. If interest rates rise and the economy slows, it will be very hard for companies to roll these bonds over – and then we get what S&P Global Ratings is calling “Crexit.” The bond markets dry up […]

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Deutsche Bank Profit Plunges 98 Percent As The Outlook For ‘The World’s Riskiest Bank’ Darkens

The biggest and most important bank in the biggest and most important country in Europe continues to implode right in front of our eyes.  If you follow my work regularly, you probably already know that I issued a major alarm about Deutsche Bank last September.  Subsequently, Deutsche Bank stock hit an all-time low.  Then I sounded the alarm about Deutsche Bank again back in May, and once again that was followed by another all-time low for Deutsche Bank.  And then I warned about Deutsche Bank again in early June, and you can probably imagine what happened after that.  Over the past […]

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Spread Thin — How The Fed Manipulates Financial Spreads

“The Fed is manipulating markets…” “Central Banks are destroying capitalism…” “Yellen has distorted true price discov… yada-yada-yada” We’ve all heard the constant chorus of central bank bashing. The ridicule comes from a diverse crowd, ranging from retail Joe Schmoes to prominent hedge fund managers… and I admit, Fed economists make for easy targets. But I figured some of you may want to know; Is this rancor justified… or are central banks just a popular scapegoat for traders who’ve continuously been on the wrong side of markets? My answer is… yes and no. Helpful, right? Don’t worry, I’ll explain. And lucky […]

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