Thursday, February 25, 2016

SAR #16056

Has all that I have said amounted to nothing? Jesse
How Low Will They Go? Parking your money is even more popular than the little red-haired girl. So popular that it will cost you to do it, as the return on 1, 3, 5 and 10 year Treasuries is negative. Tracking when the Treasury yield curve (10Y-2Y premia) goes negative has been a consistent forecaster of recessions. It is now negative and at its lowest level since 2007. Not to worry, JPMorgan says the chances of a recession this year are only 31%. But then they add that the odds are 50-50 next year and 2 out of three within three years.
Distinction/Difference: What is the point of closing Guantanamo's torture chambers if those being illegally held there are simply disappeared into other Federal maximum security coffins? The feel-good isn't worth the hypocrisy.
Going, Going, Goners: About a third of the world's coral reefs have died and the rest will probably die off by mid-century. But not to worry, they are just the nurseries for much of the ocean's fish. Why? As the oceans absorb CO2, they become more acidic and absorb increasing amounts of calcium carbonate, the mineral corals use to build their skeletons. The oceans today are 26% more acidic than they were before we started making the Koch brothers rich.
An Observation: “Pessimism among investors reflects not just the indicators pointing towards recession. There is a deeper concern that, if or when that recession comes, policymakers will have very few options for dealing with it.”
Here Come da Judge: A federal judge has ordered several of Hillary 'The Candidate' Clinton's aides to answer questions under oath about The Emails. This is not a plus in the win column for Ms. Clinton.
Happy Birthday: Russia, anxious to elbow the US out of the way, has bestowed 10,000 automatic rifles (for which read Kalashnikovs) and millions of rounds of ammo upon their once lost but now newfound friends in Afghanistan. The country's military is starved for equipment because politicians in Kabul steal most of the billions in aid money the US continues to pour into that particular bottomless pit.
It’s The Corruption, Stupid: If Bernie wins, and the polls show pretty convincingly that he could beat Trump, the Democratic Party's current power makers will be out of power – which explains their devotion to the Mrs.
And Then There Were None: The Arizona Senate has passed a school voucher program that, by 2018, would allow every student in the state attend a private or parochial school using tax dollars. The only requirement would be that before making the decision to flee public schools the student would be required to attend a public school for at least 100 days – which could be four months of kindergarten. What could possibly go right with this plan?
Flashback: In China, 45% of new debt is being used to pay interest on old debt, much like using a new credit card to pay off an old one. Don't try this at home...
The Rich Boys: Hemingway was wrong, it's not the money that makes the rich so different from you and me, it is that they live so much longer. They have better food, better healthcare, they do not labor and they live in safer neighborhoods.
A Parting Shot:
Innocents Abroad.


Anonymous said...

Russia has no interest in shoving the USA out of Afghanistan. The longer we bleed there, the better it is for Russia, it keeps us from making even more trouble for them elsewhere than we already doo.

The miserly size of the "donation" proves it, Russia only gives enough to bleed us, not to make us pack our bags faster. The best way to give weapons to the Taliban (or ISIL), just like the USA in Syria, is to give them to the "good guys" (snort) so they can be sold/stolen. It's a perfect crime, they're doing a good deed fighting terrorist, just like the USA in Syria.

G-fan said...

Shell out: It's worse than loss of coral. Mollusks, Krill, and nearly every intermediary between Phytoplankton/Zooplankton are exoskeleton who will also suffer from acidification. Thinning of shells has already been noted. Hence, not just reef, but the entire ocean ecology is due for a collapse.

George Anderson said...

RE: Flashback: Sometimes the boomerang comes around, cleans your clock, makes another round, comes back and does it again! What's the takeway from this? Damn good thing the 'thieves' don't need the money (because they already have more than they can spend) How else could this continue?

Worse, what's wrong with the LLC/INC cabal that continues borrowing money to buy back shares, boosting stock prices that are translated into CEO bonuses without creating any actual increase in market performance?

Did I mention that paying attention really does result in a weird, perpetual WTF moment?

Have we really arrived at 'If they don't care, I certainly don't care!' brand of what passes for 'leadership'? [both corporately & politically]

I appreciate how 'chicken little' this sounds but I think I'd get a general nod of agreement if I put forth the opinion that it's all headed south and the morons in charge have abandoned ship.

Not that they want somebody to pick up the pieces and clean up the mess (because the first 'reasonable action' of a restoration crew would be to 'form a posse'.) The swindlers that are drowning us in our own refuse continue to loot what they can while actively preventing their own apprehension for their multiple crimes.

Every thinking person knows there's a ton that needs to happen, yesterday, if we are to have any hope of fending off a cascading systemic collapse.

Yet nothing is happening while we watch transfixed at the horror show that has become our political system kills it's own citizens and jails the rest while the real criminals walk away, snickering 'what are you chumps going to do about it?'

Jim Dandy said...

...while the real criminals walk away, snickering 'what are you chumps going to do about it?

What are we gonna do? Why, we're gonna vote for Bernie Sanders because we believe in the hope for change we can believe in with change and hope! Also, we're lazy, TV-addled, middle-class buffoons who think supporting fauxgressive judas-goats in a rigged and purchased election is an act of revolutionary dissent.

Tulsatime said...

There seems to something inherently deflationary about borrowing money to buy back your company shares so the price will go up, because it does not go up continually. The knife to the heart in housing was putting too much into an already inflated price. The corporate stock scene was already way inflated from the theft known as QE.

Finance has no checks on itself. It is a parasite gone rouge, one that kills the host.

George Anderson said...

@ Jim Dandy...OUCH! We can't use the system to fix the system, we're gonna have to put our big boy pants on and kick some ass, no two ways about it.

Meaningful change will NEVER be on the ballot, you know that just as everybody else does.

That said the reason nobody is stepping up is because of what comes afterwards. IF you're taken alive NOBODY is coming to the rescue and if you suffer 'mistreatment', nobody will be held accountable...but that's the 'price of freedom', isn't it?

If they keep it up civil order will break down and then it will be harder to single out who did what.

Things will get vicious soon enough, especially if their dogs keep killing the innocent and claiming they 'feared for their life' and their bought and paid for judges keep letting them walk. A card they play all too often.

@ Tulsatime: Agreed, the whole price/value structure is insane but it serves the singular purpose of keeping the majority of us pauperized and the rest on a very short leash.

Ironic that finance is in fact a fiction but couple that fiction with the power of the bench and you have a mighty tool that is being weilded with brutal efficency.

All of the ingredients are in place to make 'The Terror' look like a tea party...

Anonymous said...

Anonymous said...

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