When the Dow crashed 514 points on August 8, 2010, the market lost a staggering $850 billion in market capitalization. High frequency traders were possibly responsible for half of this move, but generated a mere $65 million in profits, some 7/1,000?s of a percent of the total loss. Are market authorities and regulators being penny
?My feeling is that the bond market is grossly overvalued. We?re going to have 2%, 3%, 4% inflation. That?s what Bernanke is really saying. If we are going to have interest rates at zero for two years, that is actually going to push inflation up higher,? said professor Jeremy Siegel of the Wharton School of
Europe has a big problem. No, it is not the continuing sovereign debt crisis, the lack of leadership, or the possible departure of up to a quarter of its membership, although these are all major worries.? Nor is it the Euro, the currency that everyone loves that has been declining for the last two years.
I often get accused by readers of being a dinosaur, of being insensitive to the feelings of others, and of living as a relic from a previous age. Well, you all may be right. So it is with some amusement I run a piece that I have lifted from my friend, Dennis Gartman?s, The Gartman
?We?re getting three business cycles a week with this kind of volatility,? said Kevin Ferry of Cronus Futures.
After my weekly dump on residential real estate, I feel obliged to reveal one corner of this beleaguered market that might actually make sense. By 2050 the population of California will soar from 37 million to 50 million, and that of the US from 300 million to 400 million, according to data released by the
Some 18 months ago, bank research analyst Meredith Whitney is predicted that the dire straits of state and local finances would trigger a collapse of the municipal bond market that would resemble the Sack of Rome. She believed that total defaults could hit 2,000 issues and reach $100 billion in value. Those sharp edged comments
Milan, Italy appears to be a city entirely populated by fashion models riding bicycles on the city?s frenetic streets. That is one?s first impression coming out of the monolithic Milano Centrale train station, built by Mussolini to reaffirm faith in his state. Despite years of allied bombing during WWII, the building is as imposing as
?It?s ironic that just as we break out of a three year trading range, the market is about to be hit by a sledge hammer,? said Dave Rovelli at Canaccord Genuity.
After my entertaining repast with the head of our nation?s intelligence service, I had to ask myself this question. During the sixties, new dwarf varieties, irrigation, fertilizer, and heavy duty pesticides tripled crop yields, unleashing a green revolution. But guess what? The world population has doubled from 3.5 to 7 billion since then, eating up