Thursday, February 25, 2016
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:
Posted by Charles Kingsley Michaelson, III at 7:26 AM