Author Archives: Malcom Reynolds

Stockman on 1/27/2016

David Stockman has a nice piece that sets in context the recent really from lows in context of the deeper economic structural problems.    The piece is quite good because it mixes current events with layman economic explanations and an excellent summary of how it is we got into this mess: 700 Days In No Man’s …

Read more

Draghi cannot change arrest the laws of economics

I’ve been reading Doug Noland since 2001, and have come to enjoy his commentary for its concise ability to frame what we’re facing. From a critically timed post today titled “Draghi Ready to Fight” The collapse of the Soviet Union coupled with the Greenspan Fed’s push into activist central banking ushered in what was almost …

Read more

Unraveling

2015 steadily confirmed that the global credit bubble was coming unhinged.  Yet mainstream market optimism remained deeply entrenched at precarious heights. As we often noted during the build-up to credit cycle crisis that culminated with the collapse in 2008, there is a Wile E. Coyote phenomenon at work that preys on the psychology of most …

Read more

David Stockman lets loose on the High IQ Morons gathering in Jackson Hole at the moment.  In particular, their delusion that their efforts are “science” in the truest sense of the word — e.g., like physics, hard and fast laws and rules that always create repeatable and predictable results. Quite the contrary, yet that never …

Read more

Rothbard on the Great Depression

A half-century ago, America — and then the world — was rocked by a mighty stock-market crash that soon turned into the steepest and longest-lasting depression of all time. It was not only the sharpness and depth of the depression that stunned the world and changed the face of modern history: it was the length, …

Read more

China the Scapegoat

What is very frustrating amid the the Great Unwind that has now started is the knowledge that the power elite at the Federal Reserve Congress and on Wall Street – the very ones who sowed the seeds for this crashing mess – will find a scapegoat to throw under the bus so they are not …

Read more

Flash Crash 2015 – HFTs at it again…

From ZeroHedge on High Frequency Traders: Anyone who actually trades (and is not part of the Modern Market initiative) knows that this precisely what happens every time there is a spike in market vol: HFTs simply walk away leading to the dreaded “HFT STOP” moment, creating a feedback loop of even less liquidity, and even …

Read more

Iron Law of Valuation

John Hussman on what’s been brewing for some time: The way to understand the bubbles and collapses of the past 15 years, and those throughout history, is to learn the right lesson. That lesson is not that overvaluation can be ignored indefinitely – we know different from the collapses that have regularly followed extreme valuations. …

Read more

Mother’s Milk of Speculation

“…It is undeniable that ZIRP is the mother’s milk of Wall Street speculation. After all, the money market is where dealers and hedge fund gamblers finance themselves and put on their carry trades. By contrast, no businessman with productive inventories of raw materials, work-in-process or finished goods would be foolish enough to fund his working capital in the overnight markets. Speculators …

Read more

China – Let the Dominoes Fall

It’s early 2007 all over again.   Slightly different tune, but it sure rhymes a lot! From the FT article: Eleven shadow banks have written an open letter to the top Communist party official in northern China’s Hebei province asking for a bailout that would enable the bankrupt credit guarantee company to continue to backstop loans …

Read more