Authored by Jeffrey Snider via Alhambra Investment Partners,
We don’t live in a perfect world by any means. Because of that, it may from time to time seem like mere noise when something just doesn’t to fit. There will always be irregularities in life, the inherent nature of humanity inherent in the systems humans create. Thus, it pays to remember not to let perfection become the enemy of good.
America’s Best Economist Tells It Like It Is
The Middle Class Is Now The Company Store Class
Michael Hudson
Students usually don’t think of themselves as a class. They seem “pre-class,” because they have not yet entered the labor force. They can only hope to become part of the middle class after they graduate. And that means becoming a wage earner – what impolitely is called the working class.
After the subprime mortgage bubble burst back in 2009, new regulations prevented banks from rushing right back into mortgages to re-inflate a market that nearly took down the global financial system. Of course, Uncle Sam didn't restrict wall street from blowing massive bubbles in all asset classes, in fact the Fed seemingly condones it, just the mortgage market.
And so, all that loan volume shifted to autos...
...and student loans.
Authored by Adam Taggart via PeakProsperity.com,
Lance Roberts, chief investment strategist of Clarity Financial and chief editor of Real Investment Advice has authored a number of impressive recent reports identifying potential failure points in today's financial markets.
In this week's podcast, Lance explains how the massive flood of investment capital into passively-managed ETFs, along with record amounts of margin debt, has the potential to set the markets afire:
Authored by Charles Hugh Smith via OfTwoMinds blog,
When debt-asset bubbles expand at rates far above the expansion of earnings and real-world productive wealth, their collapse is inevitable. The Supernova model of financial collapse is one way to understand this.
As I noted yesterday in Will the Crazy Global Debt Bubble Ever End?, I've used the Supernova analogy for years, but didn't properly explain why it illuminates the dynamics of financial bubbles imploding.