BALTIMORE – The U.S. stock market broke its losing streak on Thursday [and even more so on Monday, ed.]. After five straight losing sessions, the Dow eked out a 92-point gain. The financial media didn’t know what to say about it. So, we ended up with the typical inanities, myths, and claptrap.
“Investors” are pushing the DJIA back up again..apparently any excuse will do at the moment. The idea may backfire though, as exactly the same thing happened shortly before Sweden’s euro referendum (a prominent pro-euro politician was killed by a “lone nut” a few days ahead of the vote), and Sweden still had the krona last we looked… – click to enlarge.
A Sucker’s Deal
The yield on the 10-Year Treasury note’s accelerating its descent toward zero. The last we checked the yield was at about 1.56 percent. But in every practical sense, for income investors, a yield of 1.56 percent may as well be zero.
Myths Are Worth Wondering About
Wondering is what we do, here at the Diary, especially wondering about myths. “Myths” are not necessarily untrue. They just can’t be known or proven in the way, say, that Archimedes could prove that the king’s crown was made of gold.
Antiquity’s most famous patent troll Archimedes shortly after his famous epiphany in the bathtub
Beyond Human Capacity
Distilling down and projecting out the economy’s limitless spectrum of interrelationships is near impossible to do with any regular accuracy. The inputs are too vast. The relationships are too erratic.
The economy – complex and ever-changing interrelations.
Image credit: Andrea Dionne
Muhammad Ali Could Take a Punch
BALTIMORE – You had to admit. Muhammad Ali could take a punch. Unlike Donald Trump, Dick Cheney, George W. Bush, and Bill Clinton, he was a real war hero. He stood up and faced his enemies on the draft board, rather than dodging them.
An iconic photograph: Muhammad Ali after knocking out Sonny Liston.
Photo credit: John Rooney / Associated Press
Stuffing the Futon
Our friend Ramsey Su just asked what Haruhiko Kuroda and Shinzo Abe are going to do now in light of the strong yen (aside from perhaps doing the honorable thing). Isn’t it time to just “wipe out some debt with the stroke of a pen”?
The modern Samurai futon!
Seven Year Achievement
“Read the directions and directly you will be directed in the right direction.” — Lewis Carroll
See? It’s easy Janet! Just read the directions!
Illustration credit: Walt Disney
An Alert for the Global Posse of Liquidity Junkies
In the summer of 2015 and again in December-February this year, global stock markets were rattled by weakness in the yuan’s exchange rate vs. the US dollar. Yuan weakness is widely held to exacerbate pressures on other (already weak) emerging market currencies, but more importantly, it is seen as a symptom of accelerating capital flight from China.
USD-CNY, daily (a rising price denotes yuan weakness) – slowly creeping toward Panicville again? Resistance is between 6.60 and 6.65 – we suspect that if that level is exceeded, all hell could break loose again – click tro enlarge.
Policy-Induced Contrition in Japan
As we keep saying, there really is no point in trying to make people richer by making them poorer – which is what Shinzo Abe and Haruhiko Kuroda have been trying to do for the past several years. Not surprisingly, they have so to speak only succeeded in achieving the second part of the equation: they have certainly managed to impoverish their fellow Japanese citizens.
Photo credit: Toru Hanai / Reuters
Deluded Central Planners
Zerohedge recently reported on an interview given by Lithuanian ECB council member Vitas Vasiliauskas, which demonstrates how utterly deluded the central planners in the so-called “capitalist” economies of the West have become. His statements are nothing short of bizarre (“we are magic guys!”) – although he is of course correct when he states that a central bank can never “run out of ammunition”.
BoJ governor Haruhiko Kuroda
Photo credit: Toru Hanai / Reuters
Most read in the last 20 days:
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Blame “Brexit” BALTIMORE – The U.S. stock market broke its losing streak on Thursday [and even more so on Monday, ed.]. After five straight losing sessions, the Dow eked out a 92-point gain. The financial media didn’t know what to say about it. So, we ended up with the typical inanities, myths, and claptrap. “Investors” are pushing the DJIA back up again..apparently any excuse will do at the moment. The idea may backfire though, as exactly the same thing happened...
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