It’s been about a decade since the term “mortgage arbitrage” made headlines. It’s back.
In the clearest sign yet of just how late far the investing cycle the developed world finds itself, the FT writes that wealthy British homeowners are again borrowing against their property to invest in bonds, equities, alternative investments or commercial property as the low cost of debt creates opportunities for “mortgage arbitrage”. And while taking out a mortgage to invest in “safer” arbs like corporate bonds, commercial real estate or private equity would be at least understandable, if not excusable, in the current low-yield regime, some more extreme “investment” decisions suggest that the madness and euphoria that marked the peak of the last asset bubble is back: because while growing numbers are prepared to risk using their primary residence as collateral, some are ready to gamble on extremely volatile assets like bitcoin, wine and cars. Continue reading →
There are roughly 76 million Baby Boomers in the United States that are about to transition out of the highest wage earning years of their lives and into retirement where they’ll be making precisely nothing. Unfortunately, as MarketWatch points out today, those Baby Boomers are woefully unprepared for what awaits them. Continue reading →
You have 78 days left to spend your old (£1) coins
BRISTOL, ENGLAND – JANUARY 16: In this photo illustration, Pound Sterling coins and notes are seen on January 16, 2017 in Bristol, England. Sterling has dropped sharply following reports that British Prime Minister Theresa May is to announce that the UK is planning a so-called ‘hard’ exit from the European Union. According to the exchange firm Travelex, UK travellers buying US Dollars are now getting the lowest rates since 1986, being offered just $1.17 for every pound. (Photo Illustration by Matt Cardy/Getty Images)
People are being urged to dig out their old coins before the legal tender status ends – as the new pound becomes more common.
If you are one of those people who like to collect their loose change in a jar then this news could be very important to you. Continue reading →
“Anybody With A Pension, IRA, 401k… Any Wealth Held Inside Of The System”
Will Get Creamed
When you look at how much debt and future obligations are clinging to our financial system, it’s difficult to comprehend how it has lasted this long without imploding. Unfortunately, the inevitable collapse can’t be avoided for much longer, and it might be coming sooner than you think. Continue reading →
“I came of age on Wall Street when the Chairman of the Federal Reserve Board—he was William McChesney Martin—condemned even trace amounts of inflation as an economic and moral evil. In the interval of 1960-65, there was not one year in which the CPI registered a year over year rise of as much as 2%.” ~ Grant’s Interest Rate Observer
We’ve all heard of fake news, but consider the growing possibility of fake or at least virtual assets. Investors face a deliberately orchestrated shortage of real investments c/o global central banks in markets such as stocks and real estate. Is there any wonder that the financial engineers of Wall Street have again begun to manufacture new derivatives leveraging the real world?
Case in point, bitcoin. The most recognized “digital currency,” bitcoin is a form of high-tech gaming instrument that fulfills just one of the traditional roles of money, but is among the world’s fastest appreciating – and most volatile– “asset” classes. Continue reading →
This week the International Monetary Fund shocked some economic analysts with an announcement that America was “no longer first in the world” as a major economic growth engine. This stinging assertion falls exactly in line with the narrative out of the latest G20 summit; that the U.S. is fading away leaving the door open for countries like Germany and China to join forces and fill the power void. I wrote about this rising relationship between these two nations as well as the ongoing controlled demolition of America’s economy in my article ‘The New World Order Will Begin With Germany And China‘. Continue reading →
Causing Serious Problems In Other Minerals Outside Of Precious Metals
With the world seemingly in economic and geo-political shambles, those concerned with the real possibility of collapse continue to position themselves in precious metals. As highlighted by SGT Report in the five-minute metals update below, physical acquisition of gold and silver continues unabated, with Silver Eagles once again hitting month-over-month sales records in July. Moreover, the supply of gold appears to be dwindling. Coupled with heavy investment demand, this suggests that prices may soon jump to the upside as investors continue to shift into the asset class of last resort and larger gold and silver mining companies move to lock in physical assets through junior mining acquisitions. Continue reading →
Visa recently announced its new Cashless Challenge program, which offers $10,000 to restaurants willing to transition into accepting only digital payments. As the largest credit card processor in the U.S., it’s no surprise Visa is spearheading this campaign. Under the guise of increasing transparency and efficiency, they’ve partnered with governments around the world to help convert financial systems into cashless models, but their real incentive is the billions of dollars in extra transaction fees it would generate.
“We are declaring war on cash,” Visa spokesman Andy Gerlt proudly proclaimed after the program was announced. Continue reading →
Since I have never been a user of ATM’s, debit cards, on-line banking, and minimal use of a credit card I can’t imagine being told that my credit card or ATM account is denied. I’ve been with folks who have had that happen – they go to pay with their card and are told it has been denied.
Whatcha gonna do when you think you have a certain amount of ‘digits’ in your *account* but are told that it is EMPTY. I am not sure what I will do when they stop letting me use those FAUX dollars I call cash. That time is coming closer each day – I’ve read of many businesses that now will not accept CASH. ~ Jackie Juntti
The Future of Money
Not since the arrival of the almighty dollar has currency been poised for a more dramatic leap forward.
There was a time when people happily used chickens, pigs, or a nice pile of lumber as payment for a cow, some clothes, or anything else of value. And then some smart people got behind a breakthrough—they introduced currency. Continue reading →
There is no longer any question about it: Coinbase is a massive fraud and appears to be engaged in widespread criminal conspiracy. Coinbase is the most popular online wallet for Bitcoin, and I have previously reported on how Coinbase has seized Bitcoins from users in Wyoming and Hawaii, preventing them from accessing their coins even if they move their residency to a different state.
Coinbase is currently taking WEEKS to respond to urgent queries, I’m being told, and they provide no working mechanism whatsoever for users in Wyoming or Hawaii to change their state of residency. When those users attempt to login to upload new IDs or change their address, they are given “Unable to create account” errors which state that “Coinbase has indefinitely suspended its business…” in their old state. In effect, Coinbase has stolen all the Bitcoins from users in those states and may have already absconded with those Bitcoins. Continue reading →
Disneyland is known as a place “where dreams come true” and where every story always has a happy ending. But there is going to be no happy ending for the U.S. economy. Wishful thinking has resulted in one of the greatest stock market rallies in history in recent months, but like all childhood fantasies, it won’t last. The real economy continues to deteriorate, and we can see this even right outside of the gates of Disneyland. Every night growing numbers of homeless people sleep on the pavement just steps away from “the happiest place on Earth”. It can be fun to “play make believe” for a while, but eventually reality always catches up with us. Continue reading →
The Gold Price is FAKE News
Lethargic summer markets tend to instill a sense of false security. Stocks and property are near all-time highs, interest rates are at 72 year lows and most investors feel richer than ever. Central banks signal strong economies with indications of higher interest rates and tapering of their balance sheets. As I discussed last… (Continue to full article)
National Debt Too High, Silver Price Too Low
Silver currently sells around $16, which would be sensible if the U.S. national debt was much less than its current $20 trillion. Given the massive national debt and 100 years of experience, silver prices could easily be double or triple their current prices, and far higher in a panic. WHY? Examine over a century of official national debt data… (Continue to full article)
Two Scenarios in Gold — One Very Bullish, the Other Moderately Bearish
We’ve been using an 1194.40 correction target for a while, but today’s chart, a continuous daily, shows a bigger picture that is intended to ward off despair. First the bad news. The red abc pattern projects to as low as 1100.60, a $116 drop from these levels. That is my worst-case scenario for the next 8-10 weeks, and the odds of this target being… (Continue to full article)
Stocks Are Now at 1999 Bubble Levels (Guess What’s Next)
Remember the 2007 Bubble? Remember how everyone said that it really wasn’t that big of a bubble because stocks weren’t as expensive as they had been during the previous bubble (the Tech Bubble).We all remember how that turned out: the bubble burst leading to the greatest financial crisis in 80 years.Well, today’s bubble is WAY larger than that of… (Continue to full article)
The Metal of Hope
In history gold alone has been the money of Kings. However, throughout most of recorded time there has been a metal far more important to the average man than gold. In the ancient of days it was silver alone that could provide the means for a slave to save and eventually purchase his freedom which is why silver became referred to as the Metal of Hope… (Continue to full article)
Cryptocurrencies vs. Bullion
Bitcoin and ethereum. By now, at least one of these nameswill be familiar to readers. These are “crypto-currencies”.What is a crypto-currency? In general terms, acrypto-currency is a digital currency where the value/exchange rate of thatcurrency is the product of a complex mathematical formula.Proponents of these crypto-currencies are adamant that… (Continue to full article)
Bitcoin’s acceptance among retailers is low and getting lower
Retailers were already skeptical about letting customers pay with bitcoin before the cryptocurrency’s price underwent an astronomical rally this year. That rapid surge hasn’t made them any more accepting. In fact, it may have done the opposite… (Continue to full article)
A Tale Of Two Gold Markets
In the early morning hours of Monday, June 26, gold fell about 1%, from $1,254 per ounce to $1,242 per ounce, in a matter of seconds. And that the equivalent of 1.8 million ounces of gold were sold at once. The 1.8 million ounce amount is equivalent to about 59 metric tons of gold. That’s about 2% of the entire gold mining production of the world for a full year. No one sells that amount of physical gold… (Continue to full article)
A decade after Great Recession, 1 in 3 Americans still haven’t recovered No s#*t Sherlock!One in 3 people say they have yet to, or never will, recover financially from the 2007 recession, according to a new report from Country Financial. Women, African-Americans and low-income people have taken the hardest hit, with 25 percent of women, 26 percent of African-Americans and 37 percent of those earning less than $30,000 per year saying they would not be able to pay their bills within one month of being unemployed… (Continue to full article)
Gold is Watching
Gold is watching and waiting, moving down on deflation fears and then up again on the view that the Fed will have to reverse course once the economy cools down. My models show that bonds, Bill Gross and gold have it right and that stocks are heading for a fall… (Continue to full article)
Is This The Generation That Is Going To Financially Destroy America?
Did you know that the federal government is going to spend more than 4 trillion dollars this year? To put that into perspective, U.S. GDP for the entire year of 2017 is going to be somewhere between 18 and 19 trillion dollars. So when you are talking about 4 trillion dollars you are talking about a huge chunk of our economy. But of course the federal government doesn’t bring in 4 trillion dollars a year. At the beginning of Barack Obama’s first term, we were 10.6 trillion dollars in debt, and now we are nearly 20 trillion dollars in debt… (Continue to full article)
Should you save for retirement or pay off credit card debt?
Should you save for retirement or pay off credit card debt? If you’re carrying a card balance, you mayretirement 1 be wrestling with whether to put all your resources into attacking the debt, or start building your retirement nest egg while you slowly pay off debt. To figure out which scenario is better in a given situation, we’ve done the math for you… (Continue to full article)
Jazz Club : Classic Jazz Masterpieces
An absolutely superb and sublime collection of classic Jazz music. Sit back and chill out.
Life, Liberty & All That Jazz is on the air LIVE at 1:00 p.m. (Eastern Time) for TWO-HOURS, each Monday through Friday on The Micro Effect.
Study Shows That Political Interests Play a Major Role
In his memoir Stress Test (Crown, 2014), former Treasury Secretary Tim Geithner offers an impassioned defense of the Wall Street bailout he helped engineer during the height of the 2008 financial crisis, arguing that the bailout was the only way to save the economy from collapse. Geithner, however, acknowledges just how unpopular the decision to bail out the banks that were widely viewed as responsible for the crisis really was, famously observing that “We did save the economy, but we lost the country doing it.”
Public outrage over the Wall Street bailout played a significant role in the 2016 election cycle, with both Democrats and Republicans citing it as an example of Washington’s subservience to special interests and corporate donors. Historically, though, bank bailouts have always been unpopular. In his book The Creation and Destruction of Value (Harvard University Press, 2012), historian Harold James recounts for instance the controversy that surrounded the 1931 bailout of the Austrian bank Creditanstalt, whose collapse helped escalate the Depression and contributed to the rise of the Nazi movement. Continue reading →