While most asset managers have been growing increasingly skeptical and gloomy in recent weeks (despite a few ideological contrarian holdouts), joining the rising chorus of bank analysts including those of Citi, JPM, BofA and Goldman all urging clients to “go to cash”, none have dared to commit the cardinal sin of actually predicting when the next crash will take place.
On Sunday a prominent hedge fund manager, One River Asset Management’s CIO Eric Peters broke with that tradition and dared to “pin a tail on the donkey” of when the next market crash – one which he agrees with us will be driven by a collapse in the global credit impulse – will take place. His prediction: Valentine’s Day 2018. Continue reading
If Bitcoin blew you away when you first discovered it, and continues to do so to this day, Spiral Dynamics can help explain why. Bitcoin was an expression in the physical world of the newly emergent leading-edge integral level consciousness. It drew lessons from history and attempted to take the best of orange and green worldviews and incorporate them into an entirely new form of money. We see the clear presence of free markets and individualism, as well as the intentional separation of the system from dominator hierarchies (bureaucratic government meddling), which had corrupted all money before it. Its greenness is evident in the fact that by design no individual or company controls the network. Global, decentralized, revolutionary technology. This is perhaps the perfect example of integral consciousness operating on our planet at this time from an economics standpoint, and why it has captured the imagination of so many, while at the same time being violently rejected by so many others.
Although I had heard about it much earlier, I didn’t truly start investigating Bitcoin until the summer of 2012. The more I learned the more my mind was blown away, and for a while I couldn’t think about anything else. What truly solidified its real world usefulness to me was when I discovered it had been used by Wikileaks to accept payments in the midst of a financial services blockade against the renegade publisher. This realization inspired my first Bitcoin related post in August 2012 titled, Bitcoin: A Way to Fight Back Against the Financial Terrorists? Continue reading
The recklessness of the “too big to fail” banks almost doomed them the last time around, but apparently they still haven’t learned from their past mistakes. Today, the top 25 U.S. banks have 222 trillion dollars of exposure to derivatives. In other words, the exposure that these banks have to derivatives contracts is approximately equivalent to the gross domestic product of the United States times twelve. As long as stock prices continue to rise and the U.S. economy stays fairly stable, these extremely risky financial weapons of mass destruction will probably not take down our entire financial system. But someday another major crisis will inevitably happen, and when that day arrives the devastation that these financial instruments will cause will be absolutely unprecedented.
During the great financial crisis of 2008, derivatives played a starring role, and U.S. taxpayers were forced to step in and bail out companies such as AIG that were on the verge of collapse because the risks that they took were just too great. Continue reading
Jared Kushner failed to disclose his ownership of a real estate startup linked to Goldman Sachs and George Soros, according to a report Tuesday.
Kushner, President Trump’s son-in-law and top adviser, didn’t note on his government financial disclosure form that he is a part-owner of real estate finance firm Cadre, which matches investors with real estate projects, the Wall Street Journal reported.
Cadre’s other investors include Goldman Sachs, billionaire and top Democratic donor Soros and PayPal co-founder Peter Thiel. Continue reading
The following is an editorial from TRUNEWS host Rick Wiles
Are you curious whats behind President Trump’s surprise decision to launch missiles at Syria on Thursday?
(VERO BEACH, FLA) President Donald Trump bombed Syria last night. John McCain went to bed last night with a big smile on his face. Little Lindsay Graham was singing Happy Days Are Here Again.
Marco Rubio is having nightmares that Syrian President Assad will gas American troops just like he gassed those Syrian children.
The news media is boasting that President Trump is now acting tough like Hillary Clinton.
Nobody’s talking today about Donald Trump being a Russian stooge. Chief of Staff Reince Preibus may be the next White House official to get booted out.
And the President got his Supreme Court nominee approved by the Senate while everybody was talking about Syria. My, my, how things can change in less than 24 hours. Continue reading
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
While energy traders remain focused on weekly changes in crude supply and demand, manifesting in shifts in inventory of which yesterday’s API data and today’s EIA data was a breathtaking example, a much more troubling data point was revealed by the Energy Information Administration last week when it reported implied gasoline demand.
To be sure, surging gasoline supply and inventories are hardly surprising or new: they remain a byproduct of the unprecedented global crude inventories leftover from two years of failed OPEC policy which resulted in a historic glut. Last January, overall crude runs were up 500,000 bpd as refiners shifted away from diesel and other products to gasoline to chase more attractive margins amid a mild winter and sluggish diesel demand. The move led to an overbuild of gasoline stocks that lingered into the summer, punishing margins when they should have been at their strongest. This January, crude runs are at historic levels, up by roughly 300,000 bpd over last year. Continue reading
What you’re seeing from the corrupt government is a threatened corrupt government. It’s making preemptive desperate attempts to discredit, sideline, hamper and delegitimize Donald Trump before he takes office, and will continue thereafter for as long as it can. They have to strike first and do all the damage they can. They know their corrupt rein is up.
One thing you can see out of this are the corrupt people for who they really are, such as John McCain and all the Clinton/Obama-appointed intelligence agency heads.
What was done in the dark for several decades is now coming to light and heads in Washington will roll come January 20.
What is getting really interesting is just how desperate many in Washington seem to be about Trump. It seems they are really concerned that he will cut off the gravy train in Washington. Even the Republicans hoped they could train him, fearing that his ban on lobbying for five years could be a deathblow to their livelihood.
Trump is not a racist as the nutcases claim; they are prompted by the Democrats in the campaign. Nobody can discriminate against any class, race, or religion as president. He cannot even overrule abortion — that is the Supreme Court’s decision. So why all the hatred and exaggeration? Why are people saying he wants to stop Muslims coming from other countries? The overall nastiness of those on the left against anyone who disagrees with them is stunning. Continue reading
The dollar is likely to hit parity with the euro during 2017 driven by diverging paths for interest rates, according to Goldman Sachs’ chief economist.
The Federal Reserve is likely to hike interest rates three times in 2017, pushing it even further from the rate positioning stance of Europe during the course of the year, Jan Hatzius told CNBC at the Goldman Sachs Strategy Conference in London on Monday. Continue reading
Trump has broken his word and is by no means draining the swamp — he is filling it. He has really betrayed a lot of people by his nomination of Gary D. Cohn as Director of the National Economic Council, which is a policy-making position for domestic and international economic issues. Continue reading
FURIOUS American banks are fighting back against burdensome Brussels plans, which would allow European regulators to exert more control over foreign lenders.
Wall Street financial giants warned they will not be able to tie up more cash in their operations within the European Union (EU), as proposed by the European Commission (EC).
The rules hand the EU more oversight of foreign firms and are set to cost the likes of Goldman Sachs, Morgan Stanley and JPMorgan, as the banks would need to stump up fresh funds to keep within the bloc. Continue reading
The inundated Chancellor Angel Merkel has always had her own team who poll her popularity regularly. She cannot let go of power and she is known for not standing for anything but herself. She will change positions whenever necessary to maintain her popularity. Merkel created this entire refugee crisis because she was being criticized for her hardline on Greece. Now, Merkel is changing direction promising to deport 100,000 refugees. Continue reading
- Blockchain technology – What is it?
- Latest developments – Royal Mint Gold & CME, Goldman Sachs and Santander
- Why do we need it? It’s about value
- Blockchain is an extension of economics
- Blockchain allows us reduce uncertainty and risk
- How will it change your life?
For those of you who follow anything to do with blockchain and blockchain technology, you will know that the space has had its ups and downs in the last couple of weeks.
The exciting news is that two major players in the gold market, the Royal Mint and CME Group have announced a blockchain-backed gold project, and the surprising news is that the R3CEV consortium is apparently under threat. Continue reading
EUROPE’s biggest banks are vulnerable and pose a huge risk to financial stability, according to some of Wall Street’s top bankers.
Financial heavyweights from the US and Switzerland joined forces to sound the alarm over Deutsche Bank and its peers.
Goldman Sachs’ president Gary Cohn hit out at eurozone banks for failing to clean-up their balance sheets after the financial crisis. Continue reading