Charles Hugh Smith's picture

Unfortunately for future generations who might like to own a home whose price was set by the market rather than a Central State devoted to "saving" predatory banks and Wall Street's financialization machine, Wall Street and the banks are terrified of a healthy housing market, because an unfettered "price discovery" would doom their marked-to-Tinkerbell house of cards.

Axel G Merk's picture

The markets appear euphoric about the ability for European policy makers to deliver on new promises. Low market expectations were met. We, too, have a positive takeaway, but only because of one detail of the grand plan; actually, let’s call it a “grand sketch,” as many details are still unknown.

Ryan Puplava CMT's picture

Leading up until today, we’ve been hearing from Europe about a three-pronged attack. They have been planning to have a plan for three weeks now. Fear that gripped the markets yesterday was that we’d get a “number-less” statement on how much capital banks needed to raise, on how much they’d leverage the EFSF fund, and how much private bondholders of Greek bonds would get clipped.

Doug Short's picture

Here is a look at GDP since Q2 1947 together with the real (inflation-adjusted) S&P Composite. The start date is when the BEA began reporting GDP on a quarterly basis. Prior to 1947, GDP was reported annually. To be more precise, what the lower half of the chart shows is the percent change from the preceding period in Real (inflation-adjusted) Gross Domestic Product. I've also included recessions, which are determined by the National Bureau of Economic Research (NBER).

Charles Hugh Smith's picture

Sovereign currencies are the only mechanism for discounting differences in credit worthiness and production costs. The euro was established as the currency equivalent of gold, holding the same value in every member country.

James J Puplava CFP's picture

Accurate market technician and founder of Princeton Economics, Martin Armstrong, shares his thoughts on a wide range of topics including Fed policy, Occupy Wall Street, the state of Europe, and his forecasts for the U.S. and the global economy.

Bud Conrad's picture

Looking at the data on a monthly basis (and then multiplied by 12 to give the annual rate), here is the dramatic picture of how foreign central-bank purchases of our debt have shifted, from buying $500 billion to selling off $1 trillion.

Jeff Rubin's picture

What U.S. presidents seeking re-election fear most is the wrath of a rising misery index. And nothing brings more misery to the world’s largest oil consuming economy than high oil prices.

Axel G Merk's picture

On its face, suggesting that the Occupy Wall Street movement may threaten the U.S. dollar may appear like a tall order. However, simply dismissing Occupy Wall Street as a fad may be a big mistake, just as it is a mistake to dismiss the Tea Party movement.

Dominic Frisby's picture

Gold's recent nasty fall took many investors by surprise. But it seems to be recovering well after dropping to a very specific technical level – the 144-day moving average. Dominic Frisby explains.