Housing Bubble 2.0 – Are You Ready For This? (Kevin J.)
Not shown in these charts of absolute index levels is the three-straight months of national yy price gain deceleration. Moreover, the CS captures prices up to 7-months old at the tail so conditions are already a lot different than shown here.
The complexities of options are not well understood by most of the retail trading world. Nevertheless, they’re highly attractive because of their limited downside, unlimited upside, and embedded leverage. Who hasn’t thought about buying that call option on the hot biotech stock that returns 1000%? Or the way out-of-the money put on the SPY that triples a trading account in a nasty crash? We all visualize that outcome and crave it.
In this episode, Max and Stacy talk to Jim Rickards, author of The New Case for Gold, about gold as a solution to the world’s debt problems. They also discuss the solution that the leading global powers will present: rolling up the world’s bad debt into the Special Drawing Rights (SDR), which is why China has been buying SDRs on the market.
Too Late For Gold? (Tiffany D.)
At these prices, you didn’t need gold prices to climb to make money. All you would need is for the selling to stop. And then the natural demand from smart money investors, who sniff out these panic situations to make massive amounts of money fast, would drive prices up. That’s the scenario I laid out.
The Financial Stress Index by the Federal Reserve Bank of Cleveland is an indicator of financial stability. The index is composed by credit indicators, forex and equity data, as well as interbanking spreads and rates. This indicator is in a strong uptrend, testing its 2011 highs, and moving towards 2008 crash levels. Note how this indicator peaked way before the stock market crash in 2008/9.
The Broad Market, Helicopters and Gold (Kevin J.)
Helicopter money is basically unlimited global liquidity intended to head off a liquidity crunch and keep the game going as long as possible—this is the next and ultimate stage in the fiat endgame. The starting point for this is Japan, but it will quickly become global, and legal constraints can simply be brushed aside—if laws prohibit it, they can be changed.
We have been caught flat footed by this rally, and the best course of action is thought to be to unload any broad market short positions.
In its latest report, the agency said global supplies of crude rose in June, by 600,000 barrels per day to 96 million bpd. Production, on the other hand, was 750,000 bpd lower than last June, with OPEC pumping more, but not enough to offset the decline in the U.S. The IEA also noted that there was healthy demand for crude in Europe and that this demand supported global growth of 1.4 million bpd, which should continue through the end of the year.
The news came after the appointment of Andrea Leadsom – who revealed her first question to officials when she became Energy Minister last year was “Is climate change real? – was appointed as the new Environment Secretary.
And, after former Energy and Climate Change Secretary Amber Rudd announced in November that Britain was going to “close coal” by 2025, Ms Leadsom later asked the coal industry to help define what this actually meant.
“Exploitation of terrestrial systems has been vital for human development throughout history, but the cost to biosphere integrity has been high,” notes the study published Thursday in Science, which was led by Tim Newbold of the United Nations Environment Programme and University College London with a large group of colleagues representing several British, Australian, Danish and Swiss universities and institutions.
Gold & Silver
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