ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
September 10, 2022 | Synchronous Global Housing Downturn
This segment offers a good overview of the global housing downturn. Rather than thinking of it as a housing “crash” though, realists can see it as an inevitable mean reversion cycle following a massive speculative bubble. Home Prices across America are DROPPING FAST, according to New Data from Redfin. Metros like Austin, Dallas, San Jose, […]
September 10, 2022 | Trading Desk Notes For September 9, 2022
Trading against sentiment extremes One of my favourite trading questions is, “How much is already in the price?” Market sentiment has recently become very negative, and with good reason; the “news” has been bad, and markets have priced in the bad news with higher interest rates, lower stocks and commodities and a US Dollar at 20-year highs. I think markets have […]
September 9, 2022 | The Time of Separation of the USA is Rapidly Approaching
QUESTION: Marty, is Steve Bannon another pre-election ploy to put a spike in the heart of Republicans for the elections? ZB ANSWER: Of course. Claiming that you raised money and then did not disclose you were paying salaries is really stretching it. You can put every charity in prison for the very same thing. How much […]
September 9, 2022 | The Bank of Canada Says Full Speed Ahead
The Bank of Canada increased its policy rate by 75 basis points on Wednesday. It also stated that the fight to contain inflation is likely to last for some time. You could imagine them saying, “damn the torpedoes, full speed, go ahead.” How much pain will higher rates cause? The Governing Council of the Bank […]
September 9, 2022 | Mortgage Stress is International Saga
Recent Canadian mortgage data compiled by the Bank of Montreal gives a glimpse at the rate of change afoot for many Canadian property owners: Some 20% of all Canadian mortgages outstanding ($260 billion) are variable rate loans taken out near the interest lows at 1.5% into February 2022. With rates on offer now closer to 5%, many […]
September 9, 2022 | Financial Markets, Inflation, Interest Rates, Depopulation
Does The Fed want you to lose your job?
September 9, 2022 | Integrated versus Stand Alone Lithium-ion Battery Recycling Plants
Benchmark Mineral Intelligence – Battery production scrap will account for 78% of recyclable materials in 2025. Read Bloomberg Article – “The Next Big Battery Material Squeeze Is Old Batteries“. Read Benchmark Mineral Intelligence Article – “Battery Production Scrap To Be Main Source of Recyclable Material This Decade“. Watch Kitco Mining Interview with CTO Zarko Meseldzija […]
September 8, 2022 | Deutsche Bank CEO Says a Recession is Inevitable
Yet another head of the financial system is coming out and warning that a recession is inevitable. Deutsche Bank CEO Christian Sewing echoed the words of BoE’s Governor Andrew Bailey and blamed the coming recession on the war in Ukraine. “We will no longer be able to avert a recession in Germany. Yet we believe […]
September 8, 2022 | One More Reason to Leave California?
California wants to ban gas powered cars, yet it can’t keep the lights on and the A/C running during a typical summer heat wave. And they want to add millions of EVs to the grid that can’t even support itself with the current demand. Meanwhile the Texas and Arizona power grid are holding up nicely […]
September 8, 2022 | Desjardins: Canada the Most Debt Sensitive Economy in the World
Canada comes into this global downturn with a world-leading real estate bubble (property values accounting for some two-thirds of household net worth) and record-private debt levels at a whopping $7 trillion (households and businesses) in an economy tracking about $2.6 trillion in GDP. A bursting debt bubble in a poorly diversified economy largely dependent on […]
September 8, 2022 | Is Fed Goal to Kill US Economy?
Gold, US Dollar, Interest Rates
September 8, 2022 | Crude Oil, Natural Gas, Climate, Geo-Cosmic Events
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September 7, 2022 | Aggressive Fed-Rate Increases: Is Powell Doing A Volcker?
After being arbitrarily accommodating, then in a relatively sudden fit of increasing administered rates, is the current Fed Chair, Powell, trying to replicate Chairman Volcker’s “success” in ending inflation in 1980? Perhaps, but since the Fed opened its doors in 1914 the US dollar is only worth, well, 3 cents on the dollar – which […]
September 7, 2022 | Debunking the Volcker Myth
The USD Index (DXY shown below since 1980) above 110 this morning is a 20-year high not seen since April 2002. The Euro (58% of the dollar index) is below par and at the lowest since July 2002, while the Japanese Yen (14%) is at the lowest since 1998, and the British Pound (12%) is […]
September 7, 2022 | British Pound Falls to 37-Year
The Bank of England has admitted defeat, admitting they cannot prevent a recession. The pound fell to the lowest level against the USD on Wednesday afternoon after declining 0.64% to $1.145. When asked if the central bank could prevent the next recession, Governor Andrew Bailey was blunt in his answer. “Insofar as the war is […]
September 7, 2022 | Bank of Canada Hikes by 75 Basis Points, Brushes Off Housing Woes, Dip in CPI, Slowing Growth
The Bank of Canada hiked the target for its overnight rate for the fifth time in a row, today by 75 basis points, to 3.25%, the highest since 2008, following the 100-basis-point monster hike at the last meeting, which got everyone’s attention. In the statement, the BoC said that its policy interest rate “will need […]
September 6, 2022 | Millions of Chinese on Lockdown
At least 65 people are dead after a 6.8 magnitude earthquake rocked the province of Sichuan. This comes as 21 million people in Chengdu are confined to their homes as China has placed yet another city on a strict lockdown to adhere to its zero COVID policy. In fact, 65 million people in 33 cities […]
September 6, 2022 | Bear Market in Housing Continues
Canada’s second quarter GDP came in at 3.3% annualized rate, below economists forecasts of 4.4% and below the Bank of Canada’s own estimate of 4%. While weaker than expected, that won’t prevent the Bank of Canada from delivering a super sized rate hike this week on September 07th. Markets are still pricing in a 75bps […]
September 6, 2022 | Quantitative Tightening is Supposed to Step up 5.5x This Month
Happy September!! Starting now, the US Fed is to run off its balance sheet (reduce liquidity in the banking system via ‘Quantitative Tapering’) by $95 billion a month–double the amount they were supposed to have been withdrawing (QT) since the start of June. In reality, though, rather than shrink its holdings by $45 billion a […]
September 5, 2022 | 94% of Baby Food Contains Toxic Metals
The Food and Drug Administration does nothing to protect the American public. We have yet another revelation of products intended for infants containing toxic substances. Healthy Babies Bright Futures’ (HBBF) conducted a study of 288 products, including over 7,000 from other previously published studies. “We found no evidence to suggest that homemade purees and family […]
September 5, 2022 | “Say Nothing” Phase Of This Fourth Turning
“God made the Catholics, but the Armalite made them equal.” ― Patrick Radden Keefe It has become clear to me, since the installation of dementia patient Biden as the illegitimate figurehead president by his globalist Deep State handlers, their agenda is to tear down our modern civilization and replace it with a totalitarian techno-gulag where you will […]
September 4, 2022 | Happy Marxist Day
On June 28th, 1882, President Grover Cleveland signed S. 730 law declaring Labor Day a national holiday. This was the era of Marxism as it was rising to become a popular theory. Indeed, when the Panic of 1893 unfolded, there was a great uprising in Marxism as always blamed the capitalists for the depression. In […]
September 4, 2022 | As Apple Goes, So Goes the Global Economy
Although I am on a busman’s holiday and will not resume publishing The Morning Line until Sep 17, here’s a timely note concerning AAPL. We’ve been using a 151.38 downside target that remains viable, but I expect the stock to go much lower in the months and years ahead — well beneath $100, that is. When the company announced a week […]
September 3, 2022 | Trading Desk Notes For September 3, 2022
Demand destruction requires higher for longer. The DJI is down >2,000 points since Powell made it “perfectly clear” in his August 26 Jackson Hole speech that the Fed is determined to do “whatever it takes” to bring inflation back down to 2%, regardless of the combination of factors which caused it to rise substantially above the Fed’s target. The […]
September 3, 2022 | Making a Million – My Way
Buy low, add value, and sell high is my favorite strategy for making money in real estate. My wife Pam and I plan on buying a high-end fixer in San Diego at bottom of the next housing cycle – and then move into it. We will rent out the home we currently live in, and […]