ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
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 […]
September 2, 2022 | Junk Bond Prices Have Collapsed
Junk bond prices have collapsed, losing more than 15 percent of their value this year. But the push to higher rates by central banks and the possibility of a deep recession point to a much deeper adjustment during 2023. This will create some great opportunities for stock and bond investors. This chart shows how […]
September 2, 2022 | US Oil Reserves Nearly Depleted
The US Strategic Petroleum Reserve (SPR) has been at its lowest level since, ironically, 1984. The reservoirs are composed of four underground sites constructed from salt domes on the Gulf Coasts of Louisiana and Texas. The White House began extracting oil from the emergency reserves to combat rising gas prices. Politicians simply hope that the […]
September 1, 2022 | CBO Confirms Inflation Reduction Act Will Target Everyone
The Congressional Budget Office (CBO) conducted a study that proves claims that the middle class will not face tax increases under the Inflation Reduction Act are unfounded. This comes after the CBO said that the act would have little if no impact on inflation. Treasury Secretary Janet Yellen urged the IRS not to target the […]
September 1, 2022 | How to Green Our Parched Farmlands and Finance Critical Infrastructure
Congress has passed two major infrastructure bills in the last year, but imminent needs in infrastructure funding remain. The 2021 Bipartisan Infrastructure Law chiefly focused on conventional highway programs, and the Inflation Reduction Act of 2022 (IRA) mainly centered on energy security and combating climate change. According to the American Society of Civil Engineers (ASCE), […]
August 31, 2022 | Chinese Property Strife is Contagious
Falling property prices and a growing cash crunch are upping financial pressures globally. Chinese real estate development and its capital flow to other countries like Canada helped inflate demand and prices from 2009 to 2021. Reverse effects are being felt worldwide too. See more on the implications for developers, lenders and investors in WSJ: China’s property […]
August 31, 2022 | Trudeau Throws C$100 Million at Woke Agenda
As Canadians grapple with inflation, most taxpayers are eager to spend money on 2SLGBT programs and awareness. Well, at least that is what the Trudeau Administration falsely believes. The government has budgeted C$100 million for 2SLGBT initiatives. Sadly, they have the power to spend this money recklessly without the taxpayers’ consent. I had to look […]
August 30, 2022 | Taiwan to Destroy Chinese Drones
The video above has gone viral, depicting Taiwanese soldiers throwing rocks at drones believed to be sent by China. Reports are circulating that Taiwan also allowed store-bought civilian drones to enter its airspace, which leaves many to wonder how they can compete against China’s military surveillance. Backed by the US, Taiwan is beginning to push […]
August 30, 2022 | EPB Macro Compares 2022 and 2008 Housing Market Risks
This video presentation offers an illuminating comparison of US housing market risks today versus the last bust in 2008. Many economists are talking about a potential 2022 housing crash, but very few are comparing this housing market to the 2008 crisis. In the video we will look leading indicators, debt levels, and monetary policy from […]
August 29, 2022 | Trading Against Yourself
COMMENT: Thank you for your monthly subscription, interviews, and blog. I have a monthly subscription to Socrates. I did do investments and made more than enough to pay my yearly dues, albeit with some stomach ache. Weekly might have been better than monthly, but my investment amounts are not at the institutional level. Socrates doesn’t […]
August 29, 2022 | Floating Rates
Canadian banks reported quarterly earnings this past week. One thing was clear, loan loss provisions are increasing, albeit from very low levels. Banks are preparing for more turbulence ahead, as highlighted by comments from Canada’s largest bank, RBC. The bank says interest rate hikes may trigger higher monthly payments for 80,000 customers with variable rate mortgages. […]
August 28, 2022 | Zuckerberg Admits FBI Manipulated the Election
Mark Zuckerberg admitted that Facebook aided the FBI in manipulating the 2020 Presidential Election. This is huge news that proves the FBI had direct involvement in helping Joe Biden become president. Zuckerberg opened up to Joe Rogan and revealed that the department contacted him to say Russia was planning to release a disinformation campaign, and […]
August 28, 2022 | Bozo-dom’s Friday Frisson
[The Morning Line commentary will resume on Sunday, September 17, to allow your editor a holiday break. In the interim I will continue to update ‘touts’ and to post in the Rick’s Picks trading room as usual. RA] The way stocks plummeted on Friday, one could almost believe that Fed blatherer-in-chief Jerome Powell made it happen. We know […]
August 28, 2022 | QT at the Bank of Canada: Assets Down 24% from Peak. Spiraling Losses on Bonds, to Be Paid for by Canadians
On the Bank of Canada’s balance sheet released Friday, total assets of C$439 billion were down by 24% from the peak in March 2021 (C$575 billion). By comparison, the Fed’s balance sheet peaked in April 2022. The BoC’s Quantitative Tightening (QT) started in essence in April 2021 and is way ahead of the Fed’s QT. […]
August 27, 2022 | The Real IRS Hunt
There is NOTHING that the politicians EVER say that is the truth. Hiring 87,000 new IRS agents is NOT to go after billionaires as they claim. There are ONLY 614 billionaires in the United States. Clearly, you do not need 87,000 new agents to hunt down billionaires – they are coming after you! There is […]
August 27, 2022 | Trading Desk Notes For August 27, 2022
Powell was more hawkish than expected – stocks, bonds, and gold tumble – USDX hits a new 20-year high Powell’s Jackson Hole speech on August 26 was much more hawkish than markets had expected. He said that the Fed is determined to get inflation back to its 2% target and that “restoring price stability will likely require maintaining a […]
August 27, 2022 | Your Inflation May Vary
People who think about the economy are a non-random subset of the population. Most folks aren’t like us. Worse, we aren’t always like us. Hence the endless arguments. Currently our subset is debating whether we face inflation or recession. In my view, it’s not an either/or question: We can have inflation and recession. That’s why I keep talking about […]
August 27, 2022 | Biden’s Student Loan Forgiveness Bribe
While many are praising Biden for maintaining his campaign promise to cancel student debt, others are furious that the costs will be passed on to the taxpayers. Even Mitt Romney accused Biden of bribing voters before the midterms. “Biden’s student loan forgiveness plan may win Democrats some votes, but it fuels inflation, foots taxpayers with […]
August 26, 2022 | The Fed: Cold Shower on the Way
Fed Chairman Jerome Powell gave a hawkish speech today about how the Fed was going to do whatever it takes to get inflation back to 2%. How will this change in Fed monetary policy impact housing prices? If the Fed keeps its word in its commitment to bring inflation down to 2% (it’s 8.5% now), the […]