Even though the major stock market averages are flat for the first six
months of the year, by nearly every measure the stock market is still
extremely overvalued. This point is not lost on Ms. Yellen and company,
as the Fed Chair herself has recently assented that the current value of
stocks are “quite high.” Given this, the Fed must privately be afraid
that even a small change in the Fed Funds Rate could serve as the needle
that pops the massive bubble in the stock market.Exactly How Overvalued Is This Market?
First, the median Price to Earnings (PE) multiple on New York Stock Exchange (NYSE) equities is currently off the charts. Using this measure, the 2,800 NYSE stocks are at the highest level since records began since 1945. Adding to this, the cyclically adjusted PE ratio (CAPE) for the S&P 500, which uses real per-share earnings over a 10-year period, is at a current level of 27.17. This is far higher than the long term average of 16.61, and only slightly below the 32.56 level achieved at the start of the Great Depression in 1929.
Michael Pento continues @ KingWorldNews
With Stocks 3% Off Record Highs, Investor Confidence Crashes To "Extreme Fear"
Submitted by Tyler Durden on 06/15/2015 - 11:10 You know The Fed has suppressed vol too low for too long when stocks drop 3% from their all-time record-est highs and sentiment collapses into "Extreme Fear"...
Our Phantom Economy
Submitted by Tyler Durden on 06/15/2015 - 10:36
Just
as Rome in terminal decline had its phantom legions, we have a phantom
"recovery," phantom democracy, phantom GDP and phantom unemployment
rate.Those who believe that phantom recoveries and phantom
metrics can be substituted for reality are in for a shock in the next
downturn.
Gold & Silver Prices Spike As Europe Closes
Submitted by Tyler Durden on 06/15/2015 - 11:41 After a quiet sideways session, just as European markets closed, gold and silver prices have surged on heavy volume...
Massachusetts Senators Ed Markey and Elizabeth Warren introduced
legislation last week, that could have serious ramifications for gun
owners in America. The “Handgun Trigger Safety Act”
would demand that “anyone selling a handgun must retrofit it with
personalization technology before that sale can be completed.”Infusing a handgun with this “smart” technology would allow the weapon to only be used by the authorized owner. They typically operate with either fingerprinting technology, password recognition, or by being in range of an electronic bracelet or ring. The bill would ban the manufacture of any handgun in the United States that is not “personalized” within 5 years, and would give an additional 5 years time to retrofit any older handguns with the technology before they are sold.
Gun activists are sure to see this as an underhanded attempt restrict gun ownership by making these weapons too expensive to own. Currently, one of the few smart guns on the market today is a .22 that costs $1,800. It also opens the door to placing micro stamps, tracking devices, and other electronic controls in new firearms. Perhaps someday, your gun will be much like your car. The authorities will be able to “turn it off” remotely.
Read More @ ActivistPost.com
Summarizing The State Of Greek Negotiations
Submitted by Tyler Durden on 06/15/2015 - 09:56 It's quite simple really. Here is Draghi:- DRAGHI SAYS BALL LIES SQUARELY IN CAMP OF GREEK GOVERNMENT
- GREEK GOVT AWAITS INVITATION BY CREDITORS TO TALKS: STATEMENT
Grexit Contagion Uncontained: Peripheral Bond Risk Surges As Greek Banks Collapse
Submitted by Tyler Durden on 06/15/2015 - 08:47 Despite weeks of reassurances and repetitions that Grexit is "contained" - it's not! Bond spreads for Portugal, Italy, and Spain are blowing out (now up 35-50bps in the last 2 days). While Draghi desperatly soaks up selling pressure, Spanish bond yields have surpassed US yields for the first time since October. But while bonds are turmoiling (Bunds/TSYS -5-7bps, everything else ugly), the real carnage is in Greece. Greek bank bonds are pushing to new record lows and the broad ASE is down over 13% from last week's exuberant surge when Greece was fixed again (based on a Reuters headline rumor).
Will The ECB Finally Use The Greek "Nuclear Option" This Wednesdsay?
Submitted by Tyler Durden on 06/15/2015 - 09:05 With both sides digging in and unwilling to budge, will Europe revert back to its strategy from day 1, namely creating a slow initially, then fast bank run in Greece, one which leads to gradual then sudden capital controls, resulting in civil discontent and disobedience and ultimately, a violent overthrow of the Greek government.
Europe Warns Of "State Of Emergency" As Greek Stalemate Drags On
Submitted by Tyler Durden on 06/15/2015 - 07:36 With talks between Greece and creditors at what appears to be an intractable stalemate, Germany's EU Commissioner warns that a "state of emergency" could leave Greeks without energy and medicine. Meanwhile, PM Alexis Tsipras has pledged to defend democracy "in the place where it was born."
from Storm Clouds:
The push to ram the TPP and TTIP down our throats isn’t over. They are hoping you aren’t paying attention.
The push to ram the TPP and TTIP down our throats isn’t over. They are hoping you aren’t paying attention.
from X22Report:
by Austin Ruse, Breitbart:
One
of the speakers slated for the Vatican rollout of the long-awaited
Papal document on climate change once said the earth is overpopulated by
at least 6 billion people. The teaching document, called an encyclical,
is scheduled for release on June 18 at Vatican City. Perhaps with the
exception of the 1968 encyclical on contraception, no Vatican document
has been greeted with such anticipation.
The political left is hoping for a document that ties belief in global warming to a religious obligation. Climate skeptics have already started criticizing the document.
The choice of Professor John Schnellnhuber, founding director of the Postdam Institute for Climate Impact Research, as one of three presenters may be giving the left added hope and giving giving skeptics severe heartburn. He has been described as one of the more aggressive scientists on the question of man-made global warming.
Read More @ Breitbart.com
One
of the speakers slated for the Vatican rollout of the long-awaited
Papal document on climate change once said the earth is overpopulated by
at least 6 billion people. The teaching document, called an encyclical,
is scheduled for release on June 18 at Vatican City. Perhaps with the
exception of the 1968 encyclical on contraception, no Vatican document
has been greeted with such anticipation.The political left is hoping for a document that ties belief in global warming to a religious obligation. Climate skeptics have already started criticizing the document.
The choice of Professor John Schnellnhuber, founding director of the Postdam Institute for Climate Impact Research, as one of three presenters may be giving the left added hope and giving giving skeptics severe heartburn. He has been described as one of the more aggressive scientists on the question of man-made global warming.
Read More @ Breitbart.com
by David Chapman, Gold Seek:
Ok pardon the play on a 1986 Kurt Russell action adventure flick
entitled “Big Trouble in Little China”. China isn’t little but the
bubble is potentially big. Apparently, the Chinese stock market has
boomed to a value of $6.5 trillion in the past year. That still leaves
the Chinese stock market well short of the NYSE whose value in February
2015 was $16.6 trillion. The Shanghai Stock Exchange (SSEC) is up 58%
thus far in 2015 and a 152% since the low of 2014. To put that in some
perspective the SSEC was up in 2007 129% to the top in October and had
run 293% from the low of 2006. The current market is still about 20%
below the highs of 2007.
But there are differences in the 2015 bull market and the 2007 bull market. In 2007, the Chinese economy was still growing at well over 10% annually. Today GDP growth has fallen under 7% and could go lower. P/E valuations of small cap stocks have moved into NASDAQ late 1990’s levels; leverage has soared with loans to stock investors at record levels; and, finally the current stock market is being fueled by smaller traders seeking quick profits. One study suggested that two-thirds of new stock market investors hadn’t completed high school. If there is a silver lining, it is that the SSEC is still trading at P/E valuations somewhat in line with its longer-term average.
Read More @ GoldSeek.com
Ok pardon the play on a 1986 Kurt Russell action adventure flick
entitled “Big Trouble in Little China”. China isn’t little but the
bubble is potentially big. Apparently, the Chinese stock market has
boomed to a value of $6.5 trillion in the past year. That still leaves
the Chinese stock market well short of the NYSE whose value in February
2015 was $16.6 trillion. The Shanghai Stock Exchange (SSEC) is up 58%
thus far in 2015 and a 152% since the low of 2014. To put that in some
perspective the SSEC was up in 2007 129% to the top in October and had
run 293% from the low of 2006. The current market is still about 20%
below the highs of 2007.But there are differences in the 2015 bull market and the 2007 bull market. In 2007, the Chinese economy was still growing at well over 10% annually. Today GDP growth has fallen under 7% and could go lower. P/E valuations of small cap stocks have moved into NASDAQ late 1990’s levels; leverage has soared with loans to stock investors at record levels; and, finally the current stock market is being fueled by smaller traders seeking quick profits. One study suggested that two-thirds of new stock market investors hadn’t completed high school. If there is a silver lining, it is that the SSEC is still trading at P/E valuations somewhat in line with its longer-term average.
Read More @ GoldSeek.com
from X22 Spotlight:
The Russia-China “Silk Road” Strategy
by F. William Engdahl, Global Research:
Russia
is about to take another major step towards liberating the Ruble from
the Dollar System. Its Finance Ministry just revealed it is considering
issuing Russian state debt in Chinese Yuan. That would be an
elegant way to decouple from the dependence and blackmail pressures from
the US Treasury financial terrorism operations while at the same time
strengthening the bonds between China and Russia–Washington’s worst
geopolitical nightmare.
Russian Deputy Minister of Finance, Sergei Storchak, announced that his ministry is making a careful study of what would be required to issue Russian bonds denominated in Chinese Yuan. The latest news is part of a long-term strategy between Russia and China that goes at the heart of American hegemony—the role of the dollar as the leading world central bank reserve currency.
The dollar is used in some 60% of central bank reserves today. The second largest is the Euro. Now clearly China is carefully moving, as the world’s largest trading nation, to create its Renminbi or Chinese Yuan as another major reserve currency. That has huge geopolitical implications. So long as the US dollar is the leading reserve currency, the world must de facto buy US dollar Treasury bonds for its reserves
Read More @ GlobalResearch.ca
by F. William Engdahl, Global Research:
Russia
is about to take another major step towards liberating the Ruble from
the Dollar System. Its Finance Ministry just revealed it is considering
issuing Russian state debt in Chinese Yuan. That would be an
elegant way to decouple from the dependence and blackmail pressures from
the US Treasury financial terrorism operations while at the same time
strengthening the bonds between China and Russia–Washington’s worst
geopolitical nightmare.Russian Deputy Minister of Finance, Sergei Storchak, announced that his ministry is making a careful study of what would be required to issue Russian bonds denominated in Chinese Yuan. The latest news is part of a long-term strategy between Russia and China that goes at the heart of American hegemony—the role of the dollar as the leading world central bank reserve currency.
The dollar is used in some 60% of central bank reserves today. The second largest is the Euro. Now clearly China is carefully moving, as the world’s largest trading nation, to create its Renminbi or Chinese Yuan as another major reserve currency. That has huge geopolitical implications. So long as the US dollar is the leading reserve currency, the world must de facto buy US dollar Treasury bonds for its reserves
Read More @ GlobalResearch.ca
from Greg Hunter:
Will a cashless society put off the next crash? Financial expert Gordon Long says, “We have run out of runway, but never underestimate the ingenuity of a trapped politician and central bankers to come out with new policies and new ways to extend this.”
“We are going to see some pretty violent volatility and corrections. We are going to be in there guaranteeing collateral because our issue is . . . there is a shortage of collateral. The Fed sucked all of the bonds out of the market. There is a shortage of them. So, we have a major liquidity problem. That’s the runway we are running out of, and flows are starting to slow dramatically. Now, that says it’s getting unstable, but that doesn’t mean the world is coming to an end. It does mean we are going to do something else, and one of those things is negative nominal rates and cashless society. That’s the reason why we are going to have a cashless society. You are going to see this (cashless society idea) accelerate in the next six months.”
Will a cashless society put off the next crash? Financial expert Gordon Long says, “We have run out of runway, but never underestimate the ingenuity of a trapped politician and central bankers to come out with new policies and new ways to extend this.”
“We are going to see some pretty violent volatility and corrections. We are going to be in there guaranteeing collateral because our issue is . . . there is a shortage of collateral. The Fed sucked all of the bonds out of the market. There is a shortage of them. So, we have a major liquidity problem. That’s the runway we are running out of, and flows are starting to slow dramatically. Now, that says it’s getting unstable, but that doesn’t mean the world is coming to an end. It does mean we are going to do something else, and one of those things is negative nominal rates and cashless society. That’s the reason why we are going to have a cashless society. You are going to see this (cashless society idea) accelerate in the next six months.”
from Liberty Blitzkrieg:
If you still think that the establishment Republicans in Congress
represent real opposition to President Obama’s policies, you’re either
extremely brainwashed or extremely stupid.
Honestly, I don’t know what it will take for some people to wake up. How many times do you need to be used, abused and conned by slimy politicians before you can shake off your political Stockholm Syndrome? Does John Boehner need to drive up to your front door in a motorcade and eat your first born’s liver at the dinner table with your wife’s silverware before you get it? It’s pathetic.
The focus of today’s piece is the secretive corporatist giveaway known as the Trans Pacific Partnership, or TPP.
Read More @ libertyblitzkrieg.com
If you still think that the establishment Republicans in Congress
represent real opposition to President Obama’s policies, you’re either
extremely brainwashed or extremely stupid.Honestly, I don’t know what it will take for some people to wake up. How many times do you need to be used, abused and conned by slimy politicians before you can shake off your political Stockholm Syndrome? Does John Boehner need to drive up to your front door in a motorcade and eat your first born’s liver at the dinner table with your wife’s silverware before you get it? It’s pathetic.
The focus of today’s piece is the secretive corporatist giveaway known as the Trans Pacific Partnership, or TPP.
Read More @ libertyblitzkrieg.com
Filed under Assholes...
On The Floridian Clod & Hillary Is The New Nixon
Submitted by Tyler Durden on 06/15/2015 - 10:44 "...a bigger bundle of platitudes and insincerities has not been served up since the heyday of Nixon. As the politicians are so fond of saying these days, make no mistake, Hillary is the New Nixon."
A "Pivotal" Week (But No Time For Cowboys)
Submitted by Tyler Durden on 06/15/2015 - 10:23 It is fair to say, Bloomberg’s Richard Breslow dares to say - without being trite, that this really is a very interesting pivotal week we are heading into. The FOMC trying to thread the needle of moving on, keeping everyone calm and keeping a wary eye on a geopolitical landscape that isn’t getting better. Greek negotiations that layer existential questions of problem resolution paralysis on top of default and Grexit. And let’s not forget MERS, Turkey coalition issues, Hong Kong bomb makers, Ukraine and meaningful MPCs given Kuroda’s comments, CHF wariness and NOK economic projections. Feels to me like Act 4 of Macbeth, “Double, double toil and trouble.” Lots of predictions, forecasts and pronouncements, but what will it all really mean and should we beware what we ask for?
Dow Dumps Into Red For 2015, Bond Yields Plunge
Submitted by Tyler Durden on 06/15/2015 - 09:38 No opening ramp? Something is different as Draghi refuses to step in and save the day (for now)...
US Industrial Production Weakest Since January 2010, Flashes Recessionary Red Flag
Submitted by Tyler Durden on 06/15/2015 - 09:27 US Industrial production has missed expectations for 4 of the last 5 months (not seen outside recession) and has not seen notable MoM gains for 6 months in a row (not seen outside recession). Against expectations of a 0.3% gain, IP dropped 0.2% in May (not what the meteorconomists were hoping for). Without the over-stocking of motor vehicles, the number would have been a total disaster as Autos rose 1.&% MoM (the only industry to gain) but the 7.9% plunge in drilling/servicing at oil/gas wells is "unequivocally bad." At 1.37% YoY growth, this is the weakest industrial production since January 2010. Minor upward revisions stalled the MoM drop streak but US factory output has now fallen YoY 6 months in a row (not seen outside recession) for the biggest drop in over 4 years./
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