John Rubino's picture

As Europe grinds out yet another doomed banking system rescue plan, it might be helpful to examine the underlying assumption, which is that we need these big banks.

Frank Holmes's picture

Right now, there are planes full of travelers heading to Vegas with dreams of striking it rich. These starry-eyed gamblers would greatly improve their odds by learning how to count cards. Yet, as we learned in the movie 21, where six MIT students team with Micky Rosa to become expert card counters and “bring down the house,” this technique carries some severe consequences such as being banned from the casino for life.

Michael Pettis's picture

There have been many "economic miracles" throughout history, which, ironically enough, have all been based on a similar investment growth strategy. This model, first invented by the French in the early 1800s, always proceeds along the same lines and, as explained, is no different for China currently.

Chris Puplava's picture

In short, no, but the macro backdrop is clearly improving. Earnings season so far has held up nicely with 106 of the 500 S&P 500 companies reporting and of those, 78 showing positive earnings surprises for roughly a 74% positive surprise rate.

Ryan Puplava CMT's picture

Technical analysis we can all understand. This pot is boiling and is close to overflowing. The lid’s just waiting to pop off with a lot of force. Or, the EU jacks everything up and turns off the gas next week.

Doug Short's picture

The Weekly Leading Index (WLI) growth indicator of the Economic Cycle Research Institute (ECRI) has now posted 11 consecutive declines since early August. The interim high of 8.0 was set in the week ending on April 15.

Ryan Puplava CMT's picture

Copper has technically fulfilled a lot of the requirements it needs to put in a major bottom with momentum divergence, a major support zone, and a bearish corrective pattern that has completed. Other economically sensitive commodities have also already stabilized with oil’s rise from $76 to approach $90 on Wednesday.

Daniel Amerman CFA's picture

There is a common but mistaken belief that the children and grandchildren of older Americans will be the ones who will be paying for today's massive government deficits. In this article we will look at six different layers of the deficit and unfunded government promises and put them into personal, per household terms in order to get to the truth of the matter.

Bill Powers's picture

A brief history of the Keystone pipeline and the importance of its expansion to the refineries on the Gulf Coast as it relates to the both the oil consumer and Canada’s oil sands industry.

Gail Tverberg's picture

While I agree that we need more oil production, I think we are kidding ourselves if we expect that 90% of the needed growth in global oil production will come from MENA countries. In this post, I will explain seven reasons why I think we are kidding ourselves.