A Word From Bob

As Seen & Heard

Contact Us

rss

Invest Yourself

The FREE Investment Newsletter That Really Works!

Insiders Club - 12.16.2014 Bookmark

12.16.2014


Remember those egg shells we've been walking on? Well a few of them crumbled last night.  Lets chat...

Last night I got a news blurb on my screen stating that Russia had hiked their interest rates from 10.5% to 17% in an attempt to halt the incredible slide in the Ruble. Russia's currency, the ruble had fallen yesterday in dramatic fashion against the Euro and the US dollar. So they attempted to halt that slide. Well, it worked for about an hour. For a short time the ruble traded about 10% higher. But then as we got closer to dawn, all hell broke loose.

12.15.2014 Empire Report Crashes! Bookmark

In the macro, which simply means the big picture, nothing could possibly be worse. I really mean that folks. Bonds are up a huge 14 points since July 2014. Bonds will soon be higher than they have been in decades. U.S. Bonds are telling us that the economy is in serious trouble, in Depression era territory. The jobs report everyone crowed about, was so bolstered by seasonal adjustments that it bears no resemblance to reality. The constant drumbeat of the US/NATO for some form of war with Russia continues unabated. The baltic dry index has fallen 45% in a month. Banks have lobbied the G-20 to basically secure public bail-ins when their risky trades blow up. Student loan debt is well over a trillion dollars, wages are flat for the last 15 years, and Obama-care has created the 30 hour full time job

10.19.2014 Financial Intelligence Report Bookmark

Will They Do More QE?

Pull up a chair and let’s chat folks.  This is going to be an interesting letter on a lot of levels, so let’s get started.

Everyone that has any interest in finance knows that the Federal Reserve has had a program in place called Quantitative Easing for the past 5 years. For those of you who don’t understand what it is, the basics are that the Fed’s have printed up money and then used that money to buy Treasuries from the Government and to soak up toxic assets like bad mortgages from the banks. In doing so, it has had the effect of constantly lowering interest rates, since they don’t have to raise rates to “lure” folks into buying the T bills. The Fed’s would buy them at any price, and any rate of return.

But the offshoot of QE was that because they were buying up toxic crap from the banks, AND because Treasuries are also bought from the “primary dealers” ( the big banks) the banks got tons and tons of money to go play cowboy in the asset markets. With virtually zero percent money for the big companies to borrow and buy back their own stock, and all the bank money sloshing around, we’ve had the best bull market that fake money can buy. Stocks are up gigantically since the beginning of the program.

Social Media

Archive

Bob Recommends