“This Is Not The Reaction The Fed Wanted”: Goldman Warns Yellen Has Lost Control Of The Market

 

With stocks soaring briskly around the globe following Yellen’s “dovish” hike, and futures set for a sharply higher open with the Nasdaq approaching 6,000, something surprising caught our attention: in a note by Goldman’s Jan Hatzius, the chief economist warns that the market is overinterpreting the Fed’s statement, and Yellen’s presser, and cautions that it was not meant to be the “dovish surprise” the market took it to be.

Specifically, he says that while the FOMC delivered the expected 25bp hike, with only minor changes to its projections. “surprisingly, financial markets took the meeting as a large dovish surprise—the third-largest at an FOMC meeting since 2000 outside the financial crisis, based on the co-movement of different asset prices.”

Even more surprisng is that according to Goldman, its financial conditions index, “eased sharply, by the equivalent of almost one full cut in the federal funds rate.”

In other words, the Fed’s 0.25% rate hike had the same effect as a 0.25% race cut! Continue reading

No President Will Escape Fed’s Debt Bomb – Feb 4, 2017

Continue reading

Deutsche Bank MELTDOWN: Shares plunge as bank tries to raise £6.9BILLION in call for cash

Deutsche Bank’s share price plunged on Monday [Bloomberg]

 

DEUTSCHE Bank shares have dived by six per cent after it announced a shock share sale aimed at raising €8billion (£6.9bn) of cash in a desperate bid to shore up the German giant.

The chief executive John Cryan previously said such a move would be a last resort for the bank.

Now Germany’s largest lender wants to raise the extra capital amid reports of more legal issues, which could lead to more big fines for the troubled firm.

It is the fourth time the bank has had to turn to investors for extra cash since 2010 and suggests Mr Cryan’s previous plans to save the bank have failed. Continue reading

The Coming Great Wealth Transfer

WakingTimes.com

 

Spoiler alert! It’s already here.

In the past, I’ve warned about the coming Great Wealth Transfer.  But now we need to talk about it in the present tense, because it’s here.

And it will only accelerate from here on out. The Rich will get richer at the expense of everybody else.

This isn’t personal. It’s simply a feature of what happens near the end of a debt-based monetary system run by corruptible humans. Continue reading

Trump Avoid Debt Crisis ? “Extremely Unlikely” – Rickards

Remember to keep an eye on March 15th as mentioned in a previous post, the poison pill left by the Obama administration where “everything will grind to a halt”.

 

The Congressional Budget Office, CBO, estimates that inflation and real GDP will each grow at about 2% per year in the coming ten years. This means that nominal GDP, which is the sum of real GDP plus inflation, will grow at about 4% per year. Since debt is incurred and paid in nominal terms, nominal GDP growth is the critical measure of the sustainability of U.S. debt.

 

Trump Avoid Debt Crisis ? “Extremely Unlikely” says Rickards

The upcoming March 15 U.S. debt ceiling deadline is something that is being largely ignored by markets and most media for now. Despite it being just 9 trading days away. This will change in the coming days and is one of the many reasons why we are bullish on gold.

James Rickards writing for the Daily Reckoning today looks at the important ‘next signal to watch’ and explains that Trump and his advisors believe they can avoid a debt crisis through higher than average growth. Continue reading

Greek Gov’t is 40% of GDP

 

QUESTION:  Hello, I do not understand what Martin say about the fact that the Greek debt doubled when it changed into euro. Indeed, if the currency is twice the value of the old one then all your debt will double as Martin said. However all your assets will double in value too. So it is the same situation as before. I may miss something, could you please explain me what I am missing? Continue reading

Warning Signs a Stock Market Crash Is Coming

The Dow has soared 13% since Election Day, and just last week (Feb. 10), all three major indexes closed at all-time highs. The “Trump Rally” has been great for stocks, but some observers are starting to wonder if soaring highs mean a stock market crash is coming.

No one can predict a stock market crash with 100% certainty. But we want our readers to be as informed as possible about what could happen in the market.

That’s why we’re looking into historic stock market crashes to identify warning signs that can be used now. Continue reading

EURO COLLAPSE: Italy to QUIT EUROZONE in final nail of coffin for EU, warns top economist

As corrupt as Varoufakis is, he’s right that the German-led EU wants to crush its own member states. Its aim is to make vassal states out of them.

 

Yanis Varoufakis and Italy

Yanis Varoufakis has warned Italy is about to quit the union

 

ITALY could be set to pull out of the Eurozone in what would be the final nail in the European Union’s (EU) coffin, Greece’s former finance minister has warned.

Yanis Varoufakis said there was an “epidemic” among countries using the single currency, with Italy the next to fall foul of Brussels’ economic malaise.

He also said Brexit would “speed up” the break-down of the bloc – before making a dig at Jeremy Corbyn.  Continue reading

EUROZONE CRUMBLES: Germany orders Greece to LEAVE euro if it wants debts cut

Germany seems to be enacting plan B for its European conquest: Consolidate and strengthen.

 

Wolfgang Schaeuble

olfgang Schaeuble said Greece must leave the euro if it wants debts cut (Getty)

 

HARDLINE German minister Wolfgang Schaeuble has warned the only way Greece’s loans can be written off is through the country leaving the eurozone, as the debt crisis once again blows up.

Angela Merkel’s finance chief ruled out cutting the amount of money owed by the struggling Mediterranean state in an interview on German television.

He insisted creditors must keep the pressure on Greece to meet the strict terms of its bailout programme or kick it out of the single currency.

Markets reacted with alarm after the minister raised the prospect of a Grexit. Continue reading

Greece on ‘Explosive’ Path Inside Euro and EU

Shutterstock

 

Latest crisis could spark the end of the Eurozone.

Despite years of austerity and economic reforms, Greece cannot dig itself out of its financial hole all the time it is tied into the disastrous Euro currency. Continue reading

German Default Risk Spikes To Highest Since Brexit As Merkel Lead Plunges To Multi-Year Low

 

Germany’s Social Democrats narrowed the gap with Chancellor Angela Merkel’s bloc to the closest in more than four years, reinforcing a poll bounce after they chose outsider Martin Schulz to challenge Europe’s longest-serving leader. As Bild reports, the 6-point surge in opposition support was the biggest ever recorded for the party… and may explain why German sovereign risk spiked to its highest since Brexit.

As Bloomberg reports, support for the SPD jumped 8 percentage points to 29% from a month earlier, the highest level since the last election in September 2013, according to the Infratest-Dimap for broadcaster ARD. Merkel’s Christian Democratic-led bloc, known informally as the Union, slid 3 points to 33%. Half of those surveyed would support Schulz if the chancellor were elected directly, compared with 34% for Merkel. Continue reading

Ron Paul Warns: “Second Financial Bubble Going To Burst Soon… Even Trump Can’t Stop It”

 

By all appearances notes SHTFPlan.com’s Mac Slavo, President Trump is doing his damnedest to turn around the economy, revitalize jobs and bring back prosperity. But the larger trends are already in place; the cycle is turning, and the bust cannot be put off forever.

Federal Reserve policy has literally set the country up for collapse, and though the central bank has been very creative in making the impossible work, and putting off disaster, nothing can hold back the flood forever.

Unfortunately, it looks like Trump may be blamed for a financial crisis that he didn’t cause. Analysts, including notably Brandon Smith, may be correct in pinpointing the attempt to use the new and highly controversial president as a scapegoat for the dirty work of the bankers.

The conditions are there, and the consequences were built in when the bubble was still being pumped up. Someday it will burst. When, how, and how bad remains to be seen.

If former Rep. Ron Paul (R-TX) is correct, an Economic Doomsday is here. The second financial bubble is going to soon burst, and there’s nothing anyone can do about it. That’s because, as Paul stated, the Federal Reserve has set up the American economy for financial collapse for printing trillions of dollars back in 2008 and 2009. Continue reading

Draghi Admits EU May Breakup For First Time

For the first time, the head of the European Central Bank, Mario Draghi, has conceded the possibility that the EU may fall apart. Draghi came out and said that any member leaving the Eurozone would need to settle its claims or debts with the bloc’s payments system before severing ties. This statement reveals the heated discussion at Davos and the rift that is beginning to spread. This statement, released on Friday, was made in a letter to two Italian lawmakers in the European Parliament. Continue reading

One big, fat, ugly bubble is about to burst… and Donald Trump will be wrongly blamed for it

 

(Natural News) Editor’s note: Donald Trump is officially the president of the United States. But what happens now could change everything…in sudden, unexpected ways.

Today, we’re featuring another important essay from Crisis Investing editor Nick Giambruno on this topic. On Wednesday, Nick said Trump could go down as the worst president…but it won’t be his fault. Today, he gives more reasons why Trump is destined to fail…and what you should be watching closely today.

(Article by  By Nick Giambruno, editor, Crisis Investing from Caseyresearch.com)

The establishment is setting up Donald Trump.

The mainstream media hates him. Hollywood hates him. The “Intellectual Yet Idiot” academia class hates him.

The CIA hates him. So does the rest of the Deep State, or the permanently entrenched “national security” bureaucracy.

They did everything possible to stop Trump from taking office. None of it worked. They fired all of their bullets, but he still wouldn’t go down.

Of course, the Deep State could still try to assassinate Trump. It’s obvious the possibility has crossed his mind. He’s taken the unusual step of supplementing his Secret Service protection with loyal private security. Continue reading

Turkey, ‘Axis of Gold’ and the End of US Dollar Hegemony

 

Introduction

With a ‘Hard Brexit’ looking more likely and Trump’s inauguration this week, 2017 is well and truly under way.

What we expect the year to hold is probably not even half of what it really will. But from what we know, the upcoming French and German elections, referendums, geopolitical crises, steps towards reverse globalisation and a third of global government debt yielding negative interest rates, governments are already prompting central banks and investors to turn to the one asset that has survived millennia of financial and monetary crises.

One that is highly liquid and convertible into other currencies – gold. Continue reading