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Return of the Euro Crisis: Italy Quakes, Rest of the World Shakes and Merkel’s Empire Breaks

Posted June 7, 2018 By David Haggith
Angela Merkel, emperor of the euro crisis zone

Europe’s many fault lines are spreading once again, bringing the endless euro crisis saga back in 3-D realism. Italy gained a new anti-establishment government last week, even as Spain elected a new Socialista government that could crack Catalonia off from the rest of Spain. All of Europe fell under Trumpian trade-war sanctions and threatened their own retaliation. […]

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Death of the Great Recovery Part 3: Housing Collapse 2.0 Has Begun

Posted May 29, 2018 By David Haggith
Signs of a housing collapse in 2018

It’s simple math — an equal and opposite reaction. After a long spell of QE took mortgage interest down to the lowest it has ever been, a long spell of QT (quantitative tightening) is going to take it back up again. That’s why I forecasted another housing collapse with confidence last year: Rising mortgage rates will […]

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The Global Economic Tide is Quickly Receding

Posted May 19, 2018 By David Haggith
By Pipe310593 [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], from Wikimedia Commons

The global economy is now stranded as the central-bank tide runs out. By the end of this year, the collective monetary inflow from all the central banks of the world, which rose to a high-water mark of $2-trillion per year, will have ebbed to zero. After that, it runs net negative for years to come. […]

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Death of the Great Recovery Part 2: The Second Coming of Carmageddon

Posted May 5, 2018 By David Haggith

Like the disintegration of the formerly charmed stock market, the return of Carmageddon is right on schedule. I had stated early last year that one of the first cracks in our economy to become evident would be the crash of the car industry. That crack materialized as promised, but then Hurricanes Harvey and Irma showed […]

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Stocks Perfectly Poised to Plummet Past Point of No Return

Posted May 2, 2018 By David Haggith
Gathering around the stock ticker during the 1929 stock market crash.

We are now well into the year when I said stocks would plunge in January and would prove to be a gaping “crack” in the economy by summer, and look at how seriously the market has fallen apart since it started to drop in the last week of January:   It was just three months […]

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Death of the Great Recovery Part 1: Stocks in Bondage and Bonds in the Stockade

Posted April 18, 2018 By David Haggith

Is the US economy collapsing into the Epocalypse that I predicted would start to show up as large cracks in the economy last summer? The initial damage that I forecast for last summer was in auto sales, housing sales, and the ruin of retail stores and shopping malls along with their satellite restaurants. These initial breakups, […]

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Larry Kudlow is Still an Idiot

Posted March 15, 2018 By David Haggith
Larry Kudlow by Gage Skidmore [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons

One Loonie fell today, and another rose. The Canadian “Loonie” tested 2018 lows against the dollar when existing Canadian home sales crashed to their lowest in five years. On the same day Loony Larry Kudlow rose to a new chief position at the White House, more than justifying recirculation of the following article:

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US Government Deficit Rising Rapidly as Predicted Here

Posted March 12, 2018 By David Haggith

It wasn’t just the rise in the deficit that I had said was certain with the passage of the Trump tax plan and the spending bill, it was another one of those bad turns where you have to reach all the way back to the official part of the Great Recession to find a matching […]

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The Dumb Money is Helping the Smart Money Exit the Stock Market

Posted March 9, 2018 By David Haggith
Published in the US before 1923 and public domain in the US. Used to represent people piling up America's national debt.

Bloomberg this week ran a story telling us how the smart money gets out of the stock market when it hits its all-time peak and how the dumb money helps the smart money out. Only they didn’t know that was what they were writing. It typically happens this way:

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All Fed up on Peak Debt

Posted March 3, 2018 By David Haggith
By Germán Torreblanca (Own work) [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons

How inflated with debt have we become? How long can we float on our own bloat? Reasonably trim in 1970, the sum of all debt publicly financed by the US government was $275 billion. Last week, the government sought to raise $258 billion in just one week! The weekly financing to keep the government afloat […]

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As a Matter of INTEREST, Talk of Inflation Fear, the Fed’s Perfect Unwind, Concern about Wages is ALL Economic Denial

Posted February 28, 2018 By David Haggith
Federal Reserve hacking its own recovery to death

The Federal Reserve is now hacking its own zombie recovery to death and eating it by reversing the actions it employed to create this artificially supported recovery. Each time the Fed unwinds its balance sheet, 10-year bond rates recoil, and the stock market dances along in countermoves and wild swings. The main theme of my […]

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Stock Market’s Massive Moves Not Seen Since Great Recession: Many who didn’t see the bubble bursting have fallen

Posted February 11, 2018 By David Haggith
Édouard Riou [Public domain], via Wikimedia Commons

Talk about the market busting a move … and a lot of people! In less than half a month, the Trump Rally lost a third of the height it had developed over a period of sixteen months — the worst two-week drop since February 2009. (The market’s moves are so extreme by many measures that […]

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Epochal Stock Market Flash Crash Reconnects Stocks and Bonds, Portends End of Fake Recovery

Posted February 6, 2018 By David Haggith

It took sixteen months to build the exceptionally steep Trump Rally, and just one week to eliminate a quarter of it. While I wouldn’t call that jolting reversal a stock-market crash in the ordinary sense, the largest one-day point fall in the history of the market (by far) certainly marks a massive change in market conditions. […]

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Grandma Yellen Pats Markets on the Head and Sends them off to Bed … with a Warm Glass of Poison

Posted February 3, 2018 By David Haggith
Federal Reserve balance sheet reduction not happening yet even as the Fed applauds its own success

The sweet grande dame of the central bankster world sees nothing but the brightest future to the furthest horizons for the markets she has been nurturing with her benevolent “wealth effect,” as one of her close colleagues called it. While Grandpa Greenspan routinely warns now that stock and bond markets are in bubbles, Grandma Yellen […]

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