October 20: Daily Contrarian Reads

The Fed’s Savage War On Retirees—An Excellent And Timely Rant

The more I think about where the “monetary policy community” of academic elites has brought us, the angrier I get. We have a huge bulge of Boomers—retirees and near-retirees—who do not need to be moving out on the risk curve at this time in their lives. They need Steady-Eddie returns, and they need to be reducing their risk, not increasing it……A sober look at the current economic environment reveals overvalued, overbought, and illiquid markets everywhere. Ultra-low and negative interest rates have created an environment of risk that is looking more and more like a bubble in search of a pin.

China’s Debt Rises By A Quarter Trillion In Debt In September——Debt Mountain Now Too Massive To Measure

Overnight the PBOC reported its debt statistics for the month of September and it will probably not come as a surprise that for yet another month, China flooded its economy with the latest massive new loan injection, while the country’s broadest aggregate measure of new credit, Total Social Financing, again surpassed estimates with the number exceeding a quarter trillion dollars in total new debt…..

Mind The Rent-To-Wages Gap—–It Signals Deep Economic Dysfunction

……what is noteworthy and concerning is how that compares to wage and income growth. As pay has tended to decelerate in the BLS statistics, rents have been increasing at that painfully steady rate. The difference over the past two years has been at levels usually found during recessions.

The Red Ponzi Trifecta——GDP Growth At Exactly 6.7% For Third Straight Quarter!

China’s economy has managed a curiously singular feat for any country: Growing a steady rate of 6.7 percent for the third quarter in a row……The GDP trifecta is the first since at least 1992 when Reuters began compiling data.

Cass Freight Index Takes Another Dive 

Heading into the Christmas shopping season, the Cass Freight Index shows shipments sank 0.4% for the month and are down 3.1% from shipments a year ago. It’s difficult to make a case for a great holiday sales season or robust third quarter GDP, based not only on shipments, but also on many other factors discussed below.

Vote-Rigging Felon Robert Creamer Visited The Obama White House 340 Times

Within the video, an undercover journalist details a plan to register Hispanic voters illegally by having them work as contractors, to which Creamer can be heard offering support saying that “there are a couple of organizations that that’s their big trick” ….you can imagine our surprise when we discovered that a Mr. Robert Creamer showed up on the White House visitor logs 340 times beginning in 2009 when Obama took office and culminating with his latest visit in June 2016.  Moreover, in 45 of those instances, Creamer was scheduled to meet with POTUS himself.

Good Thing Wall Street’s Fixed:  How A 34-Year Old Goldman Trader Made A Quick $100 Million On Junk Bonds

Back in 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act which was intended to shut down proprietary trading desks at the big wall street banks while allowing them to hold just enough inventory to satisfy market making requirements.  Which is why many are now questioning how a 34-year-old Goldman Sach high-yield trader, Tom Malafronte, managed to make $100mm while maintaining compliance with federal banking regulations.  As a senior trader of Skyland Capital told the Wall Street Journal, “It goes against everything we’ve been seeing the last three years.”

A Pileup of Perversion

So much attention is being absorbed by the presidential campaign that Martians could land on the White House lawn and no one would notice. Instead, pollsters would ask how they intend to vote. Meanwhile, day after day, the clouds thicken and the economic picture darkens. And day after day, no one cares. Corporate profits are down for the fifth quarter in a row. Profit margins are tightening. China is sinking. Deutsche Bank is wobbling. But U.S. stocks continue bouncing around near the top of their ranges…and Pompous know-it-all Larry Summers has proposed a plan to make sure the sun always shines.

Judgment About War And Peace: Trump’s Iraqi War Opposition Versus Hillary’s Advocacy

……..We could go on and try to pierce the fog of words in the present election to wriggle out of her strong advocacy for the criminal adventure in Iraq.  But her deeds as Secretary of State speak much louder than any words she and her advisors might engineer. By contrast,  in 2004 Trump said: What was the purpose of this whole thing? Hundreds and hundreds of young people killed. And what about the people coming back with no arms and legs? Not to mention the other side. All those Iraqi kids who’ve been blown to pieces. And it turns out that all of the reasons for the war were blatantly wrong. All this for nothing.”

Julian Assange—Hero For Our Times Who Hillary Wanted To Drone

His role in exposing the machinations of the US government over the years earned him the plaudits of liberals – until the Bush era ended, and he started exposing the crimes of the Obama administration and – most pointedly – the hypocrisy and venality of Hillary Clinton and her journalistic camarilla… with Mrs. Clinton herself wondering “Can’t we just drone this guy?” . Now we see right-wing figures like Sean Hannity and – yes! – Donald Trump praising and defending him, while the ostensible liberals take up the cry of the Clinton campaign that he’s a “pawn of the Kremlin” and a “rapist.”