This Chart Will Save You from a Dangerously Popular Delusion
There's a very dangerous meme making the rounds.
It goes something like this:
The economy is improving, therefore the Fed's going to taper… and, when it does, the economy is strong enough to endure the withdrawals that will come with it.
Don't fall for it.
Nothing could be farther from the truth. Any amount of stimulus reduction will indeed trigger a "taper tantrum."This chart is all the proof we need...
The Strange Numbers Running the World this Week
We live in an age of numbers, and they tell stories worth a thousand pictures. Here's are 10 of the most fanciful, bizarre, infuriating, and compelling ones this week:
General Motors (NYSE: GM) Bailout Leaves Taxpayers with $10.5 Billion Loss
Monday, the U.S. Treasury Department sold off its remaining shares in General Motors (NYSE: GM), closing a chapter of the auto industry bailout with a cringe-worthy $10.5 billion loss of taxpayer dollars.
The federal government spent $49.5 billion to save the doomed auto-making giant in 2008. It took on about 912 million GM shares (a 60% stake) in exchange for cash.To continue reading, pleae click here
U.S. Budget Deal Softens Sequester, Does Little Else
Rep. Paul Ryan (R-WI) and Sen. Patty Murray (D-WA) come with tidings of great joy this week: They have crafted a U.S. budget deal that solves the government's fiscal problems.
Or, not really…Here's what you need to know...
The Surprising Benefits of Raising the Minimum Wage
The notion of raising the minimum wage has moved back into the national spotlight courtesy of U.S. President Barack Obama, who last week called for an increase in the federal minimum rate from the current $7.25 an hour to $10.10.
It's an idea the president last mentioned publicly in his State of the Union speech in February, when he called for raising the minimum wage to $9 by 2015.It makes more sense than you'd think...
The Volcker Rule Surprises Wall Street – Thanks to JPMorgan
Federal regulators will vote tomorrow (Tuesday) on the Volcker Rule, and this latest draft includes stricter language than Wall Street had expected…
The Volcker Rule, proposed by former U.S. Federal Reserve Chair Paul Volcker, is a central provision of the 2010 Dodd-Frank Act reform law. It would stop banks that receive federally insured deposits from engaging in risky trading practices and force Wall Street banks to end or spin off proprietary trading operations. The goal is to prevent future taxpayer bailouts.close to clamping down on some of Wall Street's worst excesses...
Forget the Malls… The Really Great December Deals Are on Wall Street
The S&P 500 is up 157% since March 2009 and, until last week's pullback, the concept of value investing seemed deader than a doorknob.
Everything is too expensive, they say…
Stocks have been bid up to unrealistic levels, they insist…
Multiples can't support further growth, they challenge…
Believe it or not, there are actually plenty of companies that have been cast aside in this year's record-setting bull run. Even more are being put on sale right now.
Here are three firms to get you started right now.
Move quickly, though.This could be your last chance to take advantage of these "deals"...
What the November Jobs Report Means for "Dectaper"
Good news is actually good news on Wall Street today.
Stocks rallied Friday following a robust November jobs report that showed U.S. employers continued to add jobs at a steady pace last month, which pulled the unemployment rate down to a five-year low at 7.0%.To continue reading, please click here...
The Five Biggest Asset Bubbles in History
Between the stock market, bitcoin, and tech IPOs, today everyone seems in a race to spot the next biggest asset bubbles readying to pop.
The term "asset bubble" indicates that there is a marked, noticeable divergence between the market price of an asset and its fundamental value. In other words, something that people store value in – a coin, a house, a share of stock – is valued much, much higher than the thing itself could possibly be worth.
Bubbles usually end with crashes: double- or triple-digit percentage losses in the price of the inflated asset over a very short time.To continue reading, please click here...
Three Charts Obama Hopes You'll Never See
Today I'm going to show you three charts Obama hoped you'd never see.
You're about to get a very different view of the "recovery" picture that the administration keeps painting for us.
This one, for starters, is accurate.
It also explains why incoming Fed Chair Janet Yellen can't cut stimulus, which is one of the reasons you have an opportunity to make some money here… especially if you follow my "mid-December plan." More on that in a minute.
Let's start with the charts…The White House positively hates this first one...