Federal Reserve

Human Inability To Grasp Very Large Numbers Abused By Politicians And The Fed

by James Murray •  • Comments Off on Human Inability To Grasp Very Large Numbers Abused By Politicians And The Fed

By James Murray: Crows are considered the most intelligent birds. They can count to three. Anything over three is “many” to a crow. Humans are basically the same way. At some point, numbers get so big that they just become “many.”

Dancing Chickens And The Fed

by Wolf Richter •  • Comments Off on Dancing Chickens And The Fed

Some time ago, I listened to the host of a radio show tell the story about the dancing chickens – and the Fed. It wasn’t, intuitively, an obvious combo. But he nailed it, now that the 100th anniversary of the Fed’s creation is approaching.

The Smart Money Denies They’re The Smart Money As They Franticly Sell Their Crown Jewels Before The Bubble Blows Up

by Wolf Richter •  • Comments Off on The Smart Money Denies They’re The Smart Money As They Franticly Sell Their Crown Jewels Before The Bubble Blows Up

“It’s a great time to sell,” mused a pension fund investment officer. And Blackstone Group, the world’s largest private equity firm, is doing exactly that, feverishly, relentlessly, hand over fist, at peak valuations, cashing out. What does that mean for the rest of us?

Another Heap Of Wall-Street Hype and BS

by Wolf Richter •  • Comments Off on Another Heap Of Wall-Street Hype and BS

Earnings estimates for Q3 have been crashing for a year. On October 1, 2012, our brilliant Wall Street analysts estimated that they’d leap 15.9%. As of Friday, these brilliant analysts have chopped their forecasts for the same brilliant quarter down to a measly growth of 2.1%. Stagnation! Now they’re hyping how companies are beating these crummy forecasts!

Dollar Destruction And Gold Over 47 Years – A Personal Story

by Johnnygeneric •  • Comments Off on Dollar Destruction And Gold Over 47 Years – A Personal Story

In a human life, 47 years isn’t all that long. So this is a personal data point of how the Fed has managed, or rather mismanaged, or rather utterly and willfully destroyed, the dollar since his mom sold their trailer in 1966 – and what that would mean in gold today.

David Stockman: Blackstone Double Dip

by Wolf Richter •  • Comments Off on David Stockman: Blackstone Double Dip

The Wall Street machinery was back in business thanks to the Fed’s policies, David Stockman writes. When Extended Stay America exited bankruptcy, its new owner was, well, Blackstone – which had done the LBO. To underscore that speculators had returned to the scene of the strangulation, as it were, its partner in the deal was John Paulson’s hedge fund.

Next Step In Dismantling The Dollar And US Credit Hegemony

by Wolf Richter •  • Comments Off on Next Step In Dismantling The Dollar And US Credit Hegemony

The US has abused its three phenomenal privileges – including the control of the only world currency – to put global financial stability at risk, “like a truck full of dynamite heading right toward us,” said the chairman of the International Advisory Board of the Universal Credit Rating Group. But a “new financial order” is forming. And there’s a timeframe.

Why The Wall Street Casino Lives On

by David Stockman •  • Comments Off on Why The Wall Street Casino Lives On

David Stockman lashes out at the LBO of Extended Stay, a scam that made Blackstone billions, and saddled taxpayers with the detritus. It’s perhaps the most brilliant explanation ever as to why the Fed bailouts of Wall Street were an asinine idea that benefited the “0.0001%” but hurt everyone else, including taxpayers and the main-street economy.

Earnings Season Starts With A Bang, So To Speak

by Wolf Richter •  • Comments Off on Earnings Season Starts With A Bang, So To Speak

They’re getting hilarious, the shenanigans on Wall Street. Revenues have been lousy all year, and despite feverish cost cutting, earnings are sliding. The third quarter has been over for almost two weeks, but Q3 earnings estimates are still being pushed down. A lot! So that companies can “exceed expectations.” They’re now at stagnation levels. And stocks soar.

“Yellen Props Up Stocks” And Other Scary Data Points

by Wolf Richter •  • Comments Off on “Yellen Props Up Stocks” And Other Scary Data Points

Alarm bells went off: “Yellen props stocks,” the headline read. Somebody needs to. Politicians are actively contemplating how to most effectively send the largest and brokest debtor in history into default. Corporate revenues can’t keep up with inflation. Earnings estimates and actual earnings growth plunge. And the S&P 500 soared 16% year to date.