Gordon T Long

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CURRENCY WARS: Misguided Economic Policy

 

The critical issues in America stem from minimally a blatantly ineffective public policy, but overridingly a failed and destructive Economic Policy. These policy errors are directly responsible for the opening salvos of the Currency War clouds now looming overhead.

 

Don’t be fooled for a minute. The issue of Yuan devaluation is a political distraction from the real issue – a failure of US policy leadership. In my opinion the US Fiscal and Monetary policies are misguided. They are wrong! I wrote a 66 page thesis paper entitled “Extend & Pretend” in the fall of 2009 detailing why the proposed Keynesian policy direction was flawed and why it would fail. I additionally authored a full series of articles from January through August in a broadly published series entitled “Extend & Pretend” detailing the predicted failures as they unfolded. Don’t let anyone tell you that what has happened was not fully predictable!

 

Now after the charade of Extend & Pretend has run out of momentum and more money printing is again required through Quantitative Easing (we predicted QE II was inevitable in March), the responsible US politicos have cleverly ignited the markets with QE II money printing euphoria in the run-up to the mid-term elections. Craftily they are taking political camouflage behind an “undervalued Yuan” as the culprit for US problems. Remember, patriotism is the last bastion of scoundre s  READ MOREE

   

 

PRESERVE & PROTECT: The Jaws of Death

 

The United States is facing both a structural and demand problem - it is not the cyclical recessionary business cycle or the fallout of a credit supply crisis which the Washington spin would have you believe.

 

It is my opinion that the Washington political machine is being forced to take this position, because it simply does not know what to do about the real dilemma associated with the implications of the massive structural debt and deficits facing the US.  This is a politically dangerous predicament because the reality is we are on the cusp of an imminent and significant collapse in the standard of living for most Americans.

 

The politicos’ proven tool of stimulus spending, which has been the silver bullet solution for decades to everything that has even hinted of being a problem, is clearly no longer working. Monetary and Fiscal policy are presently no match for the collapse of the Shadow Banking System. A $2.1 Trillion YTD drop in Shadow Banking Liabilities has become an insurmountable problem for the Federal Reserve without a further and dramatic increase in Quantitative Easing. The fallout from this action will be an intractable problem which we will face for the next five to eight years, resulting in the “Jaws of Death” for the American public.  READ MORE


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POSTS:  WEDNESDAY 10-27-10

Last Update: 10/28/2010 03:42 AM

SCHEDULE: 1st Pass: 5:30AM EST, 2nd Pass: 8:00 AM, 3rd Pass 10:30 AM. Last Pass 5:30 PM

ARTICLE SOURCE 1 2 3 4 5 6 7 8 9 10
                       
Greece reignites Europe debt woes, bond investors jittery  Prichard                   
USA                       
Durable-goods orders jump 3.3% in September MW X                  
New home sales rise 6.6% after dismal summer AP X                  
Retail appetite helps Goldman sell $1.3bn in 50-year bonds  FT                   
Calif. Borrows $6.7 Billion Cash From JPMorgan-Led Group  Bloomberg                   
Banks Turn Reserves to Profit  WSJ                   
Mortgages to Drop Below $1 Trillion in 2011 to Least Since 1996  Bloomberg                   
Record-low mortgage rates will be gone in 2011  MW                   
Foreclosuregate: playing with systemic fire?  Fortune (Barr)                   
The real foreclosure mess: Lack of accountability for banks  Sloan                   
Mortgage Bankers Push Housing Recovery to 2012  WSJ                   
                       
ARTICLE SOURCE 11 12 13 14 15 16 17 18 19 20
                       
Pittsburgh’s pensions crisis nears deadline  FT                   
FHA’s Stevens- Mortgage Industry Faces 'Trust Deficit'                     
U.S. companies hoarding almost $1 trln cash - Moody's  Reuters                   

A Comprehensive Presentation Of America's $1 Trillion Cash Hoard

ZH                   
Asian Leaders Head to Hanoi to Weigh Pressure on China Over Yuan  Bloomberg                   
China opens new high-speed railway amid spending binge Asahi                   
Worker shortage spreads to China's western regions  Xinhua                   
Bernanke Leaps into a Liquidity Trap  Hussman                   

Liquidity Traps, Falling Velocity, Commodity Hoarding, and Bernanke's Misguided Tinkering

Mish                   
                       
                       
CENTRAL BANKING & MONETARY POLICY                      
Fed Gears Up for Stimulus  WSJ                     
Grantham On The Ruinous Cost Of The Fed's Manipulation Of Asset Prices  ZH                     
Federal Reserve 'Terrified' of Deflation: El-Erian  AEI                     
Scope of Fed’s QE2 comes under scrutiny  FT                     
More Evidence that QE Doesn't Work  Prag. Cap.                     
GENERAL INTEREST                      
Without a Plan, U.S. "Doomed to Move from Asset Bubble to Asset Bubble"  TTicker                     
MARKET WARNINGS                      
The Proof Is Everywhere That Day Trading Is DEAD  WS Cheat Sheet                     
The Fed and "Plunge Protection Team": Are They Manipulating Stocks?  EWI                     
Faber Says More Fed Easing May Cause Stocks to Decline  Bloomberg Video                     
U.S. Financial Markets: The Well Has Been Poisoned (Anger of the Honest Part II)  Smith                     
Insider Selling Volume at Highest Level Ever Tracked  CNBC                     

G20 MEETING

                     
China and US closer on trade targets  FT                     

CURRENCY WARS

                     
India’s Currency Attracts Investors, but Damages Exports  NY Times                     
Q3 EARNINGS                      
Deutsche Bank Reports Third-Quarter Loss on Postbank Writedown  Bloomberg                     
MARKET & GOLD MANIPULATION                      
DJIA Priced in Gold: What It Means for the Long-Term Trend  EW                     
CFTC Urged to Act in Silver Probe  WSJ                     
VIDEO TO WATCH                      
                       

Complete Legend to the Right, Top Items below.
Articles with highlights, graphics and any pertinent analysis found below.

1

         

1-SOVEREIGN DEBT

2-EU BANKING CRISIS
3-BOND BUBBLE

4-STATE & LOCAL GOVERNMENT

5-CENTRAL & EASTERN EUROPE
6-BANKING CRISIS II
7-RISK REVERSAL

8-COMMERCIAL REAL ESTATE

9-RESIDENTIAL REAL ESTATE - PHASE II
10-EXPIRATION FINANCIAL CRISIS PROGRAM
11-PENSION CRISIS

12-CHRONIC UNEMPLOYMENT

13-GOVERNMENT BACKSTOP INSUR.
14-CORPORATE BANKRUPTCY

TODAY'S TIPPING POINTS UPDATE

RED ALERT

AMBER ALERT

ACTIVITY

MONITOR

Click to Enlarge





10-27-10

 

GEO-POLITICAL TENSIONS - ISRAEL / KOREA / IRAN

 

IRAN

ISREAL

KOREA

 

1- SOVEREIGN DEBT & CREDIT CRISIS

 

SOVEREIGNS

 

 

GREECE

Greece reignites Europe debt woes, bond investors jittery Pritchard
 

Mohamed El-Erian, chief executive of Pimco, said the EU-IMF package prevents Greece from growing its way out of the crisis and will test political consensus to destruction. He said it would be healthier for both Greece and Europe to opt for orderly debt restructuring.

 

Most investors seem to agree that the EU-IMF plan is unworkable, merely buying time for German and French banks to shift Greek liabilities on to EU taxpayers. A Barclays survey found that 82pc of clients expect the eurozone to face a debt restructuring, a sovereign default or even a full break-up by 2013.

 

Hans Redeker, currency chief at BNP Paribas, said global attention may switch back to Europe once the US Federal Reserve clears the air on quantitative easing next week.

 

"We are seeing a complete failure of the EU to agree on common foundations for how to solve the eurozone's problems. Germany is demanding a mechanism for controlled bankruptcy but the high-debt states refuse to accept this," he said.

 

"And over the next few months we are going to find out what fiscal consolidation in Europe really means."

 

SPAIN

 

GERMANY

 

FRANCE

 

UK

 

IRELAND


JAPAN

 

 

USA

 

time (et) report period Actual Consensus
forecast
previous

Wednesday, Oct. 27
8:30 am Durable goods orders Sept. 3.3% 2.5% -1.0%
8:30 am Durables ex-transportation Sept. -0.8% 0.6% 1.9%
10 am New home sales Sept. 307,000 300,000 288,000

 

Durable-goods orders jump 3.3% in September MW Census

 

Excluding the 15.7% rise in transportation orders, durable-goods orders were down 0.8%...

 

New home sales rise 6.6% after dismal summer AP PDF

 

 

2- EU BANKING CRISIS

   

 

3- BOND BUBBLE

Retail appetite helps Goldman sell $1.3bn in 50-year bonds  FT

4- STATE & LOCAL GOVERNMENT

Calif. Borrows $6.7 Billion Cash From JPMorgan-Led Group BL
 

5- CENTRAL & EASTERN EUROPEE

 


6-BANKING CRISIS II


Banks Turn Reserves to Profit  WSJ

The biggest U.S. banks virtually doubled their collective earnings in the third quarter just by injecting $8.1 billion into net income from funds they had set aside to cover loan losses.

There are 18 commercial banks in the U.S. with at least $50 billion in assets, and together they earned an adjusted $16.8 billion in the third quarter. Of those profits, nearly half, or 48%, were from drawing down what bankers call loan-loss reserves, according to an analysis by Dow Jones Newswires. A year ago, the same 18 banks earned $6.2 billion in quarterly profits; at that time, they added more than $7.8 billion to the same reserves, a move that reduced their profits. The analysis omits a $10.4 billion noncash charge to earnings that Bank of America Corp. disclosed during the third quarter.

J.P. Morgan Chase & Co. earned $4.4 billion in the third quarter, in part because it released $1.7 billion from the bank's loan-loss reserves. During a recent conference call with investors, Chief Executive James Dimon told investors, "We don't release reserves because we want [to hit] earnings targets or something like that. We release them because we have to." He called the rules "silly" and said they promote the industry's history of boom-and-bust cycles; banks are unable to build an extra cushion of reserves in good times, and then have to build such reserves when loan problems surface.

At other banks, draw-downs from reserves accounted for the vast majority of third-quarter profits. Of Citigroup Inc.'s $2.2 billion in earnings, 92% came from reserve releases. Similar releases accounted for 82% of earnings at Capital One Financial Corp. in McLean, Va., and 65% at Huntington Bancshares Inc. in Columbus, Ohio.




7- RISK REVERSAL7- RISK REVERSAL

 

 

8- COMMERCIAL REAL ESTATE

 

 

9-RESIDENTIAL REAL ESTATE - PHASE II

Mortgages to Drop Below $1 Trillion in 2011 to Least Since 1996 BL

Record-low mortgage rates will be gone in 2011 MW 

Foreclosuregate: playing with systemic fire? Fortune (Barr)

The real foreclosure mess: Lack of accountability for banks Sloan

Mortgage Bankers Push Housing Recovery to 2012 WSJ

10- EXPIRATION FINANCIAL CRISIS PROGRAM10- EXPIRATION FINANCIAL CRISIS PROGRAM

 

 

11- PENSION & ENTITLEMENTS CRISIS


Pittsburgh’s pensions crisis nears deadline  FT

12- CHRONIC UNEMPLOYMENT12- CHRONIC UNEMPLOYMENT



13- GOVERNMENT BACKSTOP INSURANCE

 

FHA’s Stevens- Mortgage Industry Faces 'Trust Deficit'  WSJ

 

14- CORPORATE BANKRUPTCIES14- CORPORATE BANKRUPTCIES

 

U.S. companies hoarding almost $1 trln cash - Moody's Reuters 

A Comprehensive Presentation Of America's $1 Trillion Cash Hoard  ZH

Companies have done nothing less than the inverse of what our Keynesian government is doing: they have cut all investment in future business to the benefit of building out a cash buffer (while the government has taken all future benefits to the present day courtesy of an unlimited taxpayer funded piggybank). And since this capex will need to be reinvested at some point, assuming some reversion to the corporate mean, it is only a matter of time before cash levels decline dramatically once again, only this time nominal debt levels, as pointed out previously, will be at fresh record high levels, courtesy of Bernanke's ZIRP insanity.

17- CHINA BUBBLE17- CHINA BUBBLE


Asian Leaders Head to Hanoi to Weigh Pressure on China Over Yuan BL

Asian leaders head to Hanoi this week for talks that may center on calls for China to accelerate yuan gains to protect the region’s export-dependent economies.


China opens new high-speed railway amid spending binge Asahi
The latest landmark in the largest-ever railway construction boom. 

Worker shortage spreads to China's western regions Xinhua

19- PUBLIC POLICY MISCUES

Bernanke Leaps into a Liquidity Trap  Hussman

 

 Liquidity Traps, Falling Velocity, Commodity Hoarding, and Bernanke's Misguided Tinkering  Mish



 


OTHER TIPPING POINT CATEGORIES NOT LISTED ABOVE

 

24-RETAIL SALES

 

 

26-GLOBAL OUTPUT GAP

 

 

31-FOOD PRICE PRESSURES

 

 

32-US STOCK MARKET VALUATIONS

 




BP - British Petroleum

SULTANS OF SWAP: BP Potentially More Devastating then Lehman!

------------

 






   

CENTRAL BANKING MONETARY POLICIES, ACTIONS & ACTIVITIES

------------

 

Fed Gears Up for Stimulus  WSJ
The Fed is close to embarking on another round of monetary stimulus next week, against the backdrop of a weak economy and low inflation—and despite doubts about the wisdom of the policy among economists and some of the Fed's decision makers.

The central bank is likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, a measured approach in contrast to purchases of nearly $2 trillion it unveiled during the financial crisis.

Fed Chairman Ben Bernanke's push to restart the bond-buying program—a form of monetary stimulus known as quantitative easing—has been greeted with deep skepticism among some of his colleagues.

In some of his strongest words yet, Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said Monday that more expansive monetary policy was a "bargain with the devil."

In the next few months, internal opposition to Mr. Bernanke's approach could intensify as presidents of three regional Fed banks who have expressed skepticism about the plan—Narayana Kocherlakota of Minneapolis, Richard Fisher of Dallas and Charles Plosser of Philadelphia—take voting positions on the Fed's policy-making body. There are 12 regional Fed banks, and five voting seats on the Federal Open Market Committee rotate among them every year, with New York always keeping one.

Investors already expect Fed action. Stock prices have rallied since Mr. Bernanke broached the idea of bond buying in late August. But investors and analysts are divided on whether the gambit will work.




Grantham On The Ruinous Cost Of The Fed's Manipulation Of Asset Prices ZH


He summarizes his case against the Fed into 18 easy-to-digest points that start with the myth of lower rates, and end with massive bubbles that destroy he economy.

1)    Long-term data suggests that higher debt levels are not correlated with higher GDP growth rates.
2)    Therefore, lowering rates to encourage more debt is useless at the second derivative level.
3) Lower rates, however, certainly do encourage speculation in markets and produce higher-priced and therefore less rewarding investments, which tilt markets toward the speculative end. Sustained higher prices mislead consumers and budgets alike.
4) Our new Presidential Cycle data also shows no measurable economic benefits in Year 3, yet point to a striking market and speculative stock effect. This effect goes back to FDR, and is felt all around the world.
5)    It seems certain that the Fed is aware that low rates and moral hazard encourage higher asset prices and increased speculation, and that higher asset prices have a beneficial short-term impact on the economy, mainly through the wealth effect. It is also probable that the Fed knows that the other direct effects of monetary policy on the economy are negligible.
6)    It seems certain that the Fed uses this type of stimulus to help the recovery from even mild recessions, which might be healthier in the long-term for the economy to accept.
7)    The Fed, both now and under Greenspan, expressed no concern with the later stages of investment bubbles. This sets up a much-increased probability of bubbles forming and breaking, always dangerous events. Even as much of the rest of the world expresses concern with asset bubbles, Bernanke expresses none. (Yellen to the rescue?)
8)    The economic stimulus of higher asset prices, mild in the case of stocks and intense in the case of houses, is in any case all given back with interest as bubbles break and even overcorrect, causing intense financial and economic pain.
9)    Persistently over-stimulated asset prices seduce states, municipalities, endowments, and pension funds into assuming unrealistic return assumptions, which can and have caused financial crises as asset prices revert back to replacement cost or below.
10) Artificially high asset prices also encourage misallocation of resources, as epitomized in thedotcom and fiber optic cable booms of 1999, and the overbuilding of houses from 2005 through 2007.
11) Housing is much more dangerous to mess with than stocks, as houses are more broadly owned, more easily borrowed against, and seen as a more stable asset. Consequently, the wealth effect is greater.
12) More importantly, house prices, unlike equities, have a direct effect on the economy by stimulating overbuilding. By 2007, overbuilding employed about 1 million additional, mostly lightly skilled, people, not counting the associated stimulus from housing- related purchases.
13) This increment of employment probably masked a structural increase in unemployment between 2002 and 2007, which was likely caused by global trade developments. With the housing bust, construction fell below normal and revealed this large increment in structural unemployment. Since these particular jobs may not come back, even in 10 years, this problem may call for retraining or special incentives.
14)    Housing busts also help to partly freeze the movement of labor; people are reluctant to move if they have negative house equity. The lesson here is: Do not mess with housing!
15) Lower rates always transfer wealth from retirees (debt owners) to corporations (debt for expansion, theoretically) and the financial industry. This time, there are more retirees and the pain is greater, and corporations are notably avoiding capital spending and, therefore, the benefits are reduced. It is likely that there is no net benefit to artificially low rates.
16) Quantitative easing is likely to turn out to be an even more desperate maneuver than the typical low rate policy. Importantly, by increasing inflation fears, this easing has sent the dollar down and commodity prices up.
17) Weakening the dollar and being seen as certain to do that increases the chances of currency friction, which could spiral out of control.
18) In almost every respect, adhering to a policy of low rates, employing quantitative easing, deliberately stimulating asset prices, ignoring the consequences of bubbles breaking, and displaying a complete refusal to learn from experience has left Fed policy as a large net negative to the production of a healthy, stable economy with strong employment.


Grantham October




Federal Reserve 'Terrified' of Deflation: El-Erian AEI

Scope of Fed’s QE2 comes under scrutiny  FT
DeliberationDeliberationoverrlonger-termmgoalsgoals

More Evidence that QE Doesn't Work  Pragmatic Capitalist

Of course, the whole theory behind QE revolves around the idea that the Central Bank can reduce long-term interest rates.  If they can reduce rates they can make other assets more attractive, they can create a refinancing effect, they can entice borrowing/lending and they can alleviate the pressure on debtors.  All of this will theoretically help boost aggregate demand and result in sustained recovery.  There is only one problem with all of this.  There is no historical evidence that QE actually works to lower interest rates.  I’ve already highlighted the two most famous cases – the USA and Japan where interest rates rose throughout the programs, borrowing remained weak and the economies remained weak.

One instance that is less well documented, however, is the case of quantitative easing in the UK.  The following chart shows the duration of the program and the interest rate effect:

 

The conclusion is obvious.  Interest rates do not decline during a program of quantitative easing.  In fact, in all three cases I’ve highlighted interest rates rose throughout the program.  This is extremely important to understand because without the intended interest rate decline there is simply no argument in favor of this policy.  There is no refinancing effect, there is no reduced rates to borrow at, there is no fundamental change in the economy.  This is why, after all three instances, the economies remain(ed) very weak.  QE is merely an asset swap.  It doesn’t alter net private sector financial assets.  It does not reduce rates.  It does not create jobs.  It does not boost aggregate demand.

Thus far, the only thing QE appears to do is drive asset prices hOf course, the whole theory behind QE revolves around the idea that the Central Bank can reduce long-term interest rates.  If they can reduce rates they can make other assets more attractive, they can create a refinancing effect, they can entice borrowing/lending and they can alleviate the pressure on debtors.  All of this will theoretically help boost aggregate demand and result in sustained recovery.  There is only one problem with all of this.  There is no historical evidence that QE actually works to lower interest rates.  I’ve already highlighted the two most famous cases – the USA and Japan where interest rates rose throughout the programs, borrowing remained weak and the economies remained weak. One instance that is less well documented, however, is the case of quantitative easing in the UK.  The following chart shows the duration of the program and the interest rate effect: The conclusion is obvious.  Interest rates do not decline during a program of quantitative easing.  In fact, in all three cases I’ve highlighted interest rates rose throughout the program.  This is extremely important to understand because without the intended interest rate decline there is simply no argument in favor of this policy.  There is no refinancing effect, there is no reduced rates to borrow at, there is no fundamental change in the economy.  This is why, after all three instances, the economies remain(ed) very weak.  QE is merely an asset swap.  It doesn’t alter net private sector financial assets.  It does not reduce rates.  It does not create jobs.  It does not boost aggregate demand. Thus far, the only thing QE appears to do is drive asset prices higher without being supported by any underlying fundamental change.  This is largely due to the psychological impact of QE and the falsehood that QE = “money printing”.  Thus far, this psychological impact of QE has backfired on the Fed as input costs have surged and the Fed has inadvertently begun to reduce corporate margins.  If the goal here is to keep “asset prices higher than they otherwise would be” then the Fed appears to be winning their battle.  Unfortunately, there is no evidence showing that there is a fundamental reason why QE would justify such a move.  In fact, the market collapses following the end of all three major historical QE programs appears to prove that this is bordering on ponzi Central Banking and nothing more. Mr. Bernanke appears to be ignoring the simple historical facts.  And those who ignore history are destined to repeat it. igher without being supported by any underlying fundamental change.  This is largely due to the psychological impact of QE and the falsehood that QE = “money printing”.  Thus far, this psychological impact of QE has backfired on the Fed as input costs have surged and the Fed has inadvertently begun to reduce corporate margins.  If the goal here is to keep “asset prices higher than they otherwise would be” then the Fed appears to be winning their battle.  Unfortunately, there is no evidence showing that there is a fundamental reason why QE would justify such a move.  In fact, the market collapses following the end of all three major historical QE programs appears to prove that this is bordering on ponzi Central Banking and nothing more.

Mr. Bernanke appears to be ignoring the simple historical facts.  And those who ignore history are destined to repeat it.

 

 GENERAL INTEREST

Without a Plan, U.S. "Doomed to Move from Asset Bubble to Asset Bubble" TTicker

 

FLASH CRASH - HFT - DARK POOLS

 

 

MARKET WARNINGS

The Proof Is Everywhere That Day Trading Is DEAD Wall Street Cheat Sheet

The Fed and "Plunge Protection Team": Are They Manipulating Stocks?  EWI

Faber Says More Fed Easing May Cause Stocks to Decline BL Video

U.S. Financial Markets: The Well Has Been Poisoned (Anger of the Honest Part II) Smith

Insider Selling Volume at Highest Level Ever Tracked CNBC Charts
 

G20 MEETING

China and US closer on trade targets  FT

FTCentral bank adviser indicates progress on imbalances

CURRENCY WARS

 

India’s Currency Attracts Investors, but Damages Exports NY  

Q3 EARNINGS

Deutsche Bank Reports Third-Quarter Loss on Postbank Writedown  BL

 

 

MARKET & GOLD MANIPULATION

DJIA Priced in Gold: What It Means for the Long-Term Trend E  

CFTC Urged to Act in Silver Probe  WSJ

The Commodity Futures Trading Commission's Bart Chilton is putting pressure on the agency to take action in a high-profile, two-year-old investigation of the silver marke

 

AUDIO / VIDEO

 

 

QUOTE OF THE WEEK

 

"The global financial system continues to be unsound in the same way that a Ponzi scheme is unsound: there are not enough cash flows to ultimately service the face value of all the existing obligations over time. A Ponzi scheme may very well be liquid, as long as few people ask for their money back at any given time. But solvency is a different matter - relating to the ability of the assets to satisfy the liabilities."

John Hussman
No Margin of Safety, No Room for Error


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Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, he recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.ont>

 

© Copyright 2010 Gordon T Long. The information herein was obtained from sources which Mr. Long believes reliable, but he does not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that Mr. Long may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Mr. Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from him.

 

         

TODAY'S NEWS

WEDNESDAY

10-27-10

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ARCHIVAL

 

READING THE RIGHT BOOKS?  NO TIME?

 

WE HAVE IT ANALYZED & INCLUDED IN OUR LATEST RESEARCH PAPERS!

 

 

ACCEPTING PRE-ORDERS

 

 

 




 

         

TIPPING POINTS

1-SOVEREIGN DEBT & CREDIT CRISIS

2-EU BANKING CRISIS
3-BOND BUBBLE

4-STATE & LOCAL GOVERNMENT

5-CENTRAL & EASTERN EUROPE
6-BANKING CRISIS II
7-RISK REVERSAL

8-COMMERCIAL REAL ESTATE

9-RESIDENTIAL REAL ESTATE - PHASE II
10-EXPIRATION FINANCIAL CRISIS PROGRAM
11-PENSION CRISIS

12-CHRONIC UNEMPLOYMENT

13-GOVERNMENT BACKSTOP INSUR.
14-CORPORATE BANKRUPTCY
 

15-CREDIT CONTRACTION II

16-US FISCAL IMBALANCES
17-CHINA BUBBLE
18-INTEREST PAYMENTS
19-US PUBLIC POLICY MISCUES
20-JAPAN DEBT DEFLATION SPIRAL
21-US RESERVE CURRENCY.
22-SHRINKING REVENUE GROWTH RATE
23-FINANCE & INSURANCE WRITE-DOWNS
24-RETAIL SALES
25-US DOLLAR WEAKNESS
26-GLOBAL OUTPUT GAP
27-CONFIDENCE - SOCIAL UNREST
28-ENTITLEMENT CRISIS
29-IRAN NUCLEAR THREAT
30-OIL PRICE PRESSURES
31-FOOD PRICE PRESSURES
32-US STOCK MARKET VALUATIONS
33-PANDEMIC
34-S$ RESERVE CURRENCY
35-TERRORIST EVENT
36-NATURAL DISASTER

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book Review- Five Thumbs Up for Steve Greenhut's Plunder!  Mish

 

 

   

 

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Gordon T Long is not a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. Of course, we recommend that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and barring that, we encourage you confirm the facts on your own before making important investment commitments.

Copyright and Disclaimer

© Copyright 2010, Gordon T Long. The information herein was obtained from sources which the Gordon T Long. believes reliable, but we do not guarantee its accuracy. None of the information, advertisements, website links, or any opinions expressed constitutes a solicitation of the purchase or sale of any securities or commodities. Please note that the Gordon T Long. or its principals may already have invested or may from time to time invest in securities that are recommended or otherwise covered on this website. Gordon T Long does not intend to disclose the extent of any current holdings or future transactions with respect to any particular security. You should consider this possibility before investing in any security based upon statements and information contained in any report, post, comment or recommendation you receive from us.