The future likely holds a default where debts that cannot be repaid must be expunged. Seek assets which will not be affected by that.
Poor California. The land of dreamin' in the '60s has awakened from a long slumber to find itself at the bottom of a dog pile of bummed-out karma. That the state is once again being steered by Gov. Jerry "Moonbeam" Brown is an irony not lost on the hopeful denizens of a once-great state looking for redemption. Yet, deliverance from the economic and regulatory sins of several past decades will not be easy.
Over the July 4th holiday world markets were mixed and rather uneventful. The early going today in America was essentially a complete snooze, as the indices drifted around unchanged for the first half of the day. Beneath the surface, many of the high-flyers were strong, but other than that there wasn't a whole lot going on.
Party rulers in China are trapped in a position that chess players deeply fear — zugzwang — where any move made puts you at disadvantage. In China, the potential cost of both action and inaction is economic collapse.
Declaring higher commodity prices and higher inflationary pressures a transitory or temporary phenomenon based solely on lack of meaningful US wage growth is shortsighted at best and perhaps very dangerous in investment decision making.
In 1943, Milton Bradley introduced a board game called Chutes and Ladders, inspired by an 18th century game from India. The object is to make your way step-by-step from the bottom of the game board to the top, while you periodically come upon ladders that help you advance more quickly, or fall into chutes that set you back, sometimes a great distance.
Now that Greece has been kicked down the road, it’s time for the other PIIGS countries to start lining up for similar deals. Portugal looks to be next, after its most recent deficit report.
Greece has had no say in this for the simple reason the plan is not to save Greece, but rather save the French banks who are most on hook should Greece default. It will be interesting to see if the plan changes now that the S&P has warned the French plan for Greece constitutes default. Even if the plan is modified, I do not see how it can be modified to meet the "voluntary" rollover criteria of the rating agencies.
When discussing the US dollar in the past, we have pointed out that one must keep a close eye on certain indicators that tend to give early warning of an impending rally – more on this follows further below.
After an extended period of consolidation, the price of silver launched from $17 in August 2010 to just under $50 in April 2011. The fuel behind this move was not speculative buying, but instead short covering by large commercial short traders including JP Morgan.