Bob Shiller Warns "It's Different Now, We Can't Trust Momentum" | Zero Hedge

Bob Shiller Warns "It's Different Now, We Can't Trust Momentum" | Zero Hedge: "Some uncomfortable truths from the Nobel winner...

"Real homebuyers are not as excited about the housing market as the price increases seem to suggest..."

"It's more of an 'unusual' demand from investors that's driving the market now..."

"...the market is driven more by psychology than affordability""

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BlackRock Says JPMorgan Deal Undermining U.S. Market: Mortgages - Bloomberg

BlackRock Says JPMorgan Deal Undermining U.S. Market: Mortgages - Bloomberg: "Under the agreement, JPMorgan will receive partial credit for steps it takes on loans serviced for others, according to a settlement document on the Justice Department’s website. For instance, the bank typically will get a 50 cent credit for each dollar of principal reductions for homeowners whose debt it doesn’t own. The bank gets 100 percent for loans it owns."

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There it is. If Chase forecloses on you the worst they can get hit is $.50/$1.00 and in those cases they will have bought the asset for less than that. They get 100% coverage or 0% liability on their own loans.
Corruption at it's finest

Goldman predicts steep losses for gold in 2014

Goldman predicts steep losses for gold in 2014:

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Goldman is predicting a pullback to $1057.50, that is not "steep". It in fact may pull to the $1100 area although $1200 is more likely going to hold, the important thing to see here is whether GS is posturing to enter Gold, which is much more the possible reason for the press. A 15% fade entry is nothing for GS who will then ride it to $1900-$2500 making 90%-150% on the trade

Jeremy Grantham's GMO: "The S&P Is Approximately 75% Overvalued; Its Fair Value Is 1100" | Zero Hedge

Jeremy Grantham's GMO: "The S&P Is Approximately 75% Overvalued; Its Fair Value Is 1100" | Zero Hedge:

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What Quinoa Can Teach The Markets | Zero Hedge

What Quinoa Can Teach The Markets | Zero Hedge:

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German business: Europe should copy, not criticize surplus

German business: Europe should copy, not criticize surplus: "Critics argue that this means that Germany should be encouraging its people to spend more on foreign imports and help stimulate growth in the rest of Europe."


This is the beginning of the US Plan to kill the Euro and thereby reduce the potential threat of a future German threat.

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Nuff said !!

Andrew Huszar: Confessions of a Quantitative Easer - WSJ.com - AND THERE IT IS !!

Andrew Huszar: Confessions of a Quantitative Easer - WSJ.com: "In its almost 100-year history, the Fed had never bought one mortgage bond. Now my program was buying so many each day through active, unscripted trading that we constantly risked driving bond prices too high and crashing global confidence in key financial markets. We were working feverishly to preserve the impression that the Fed knew what it was doing.

It wasn't long before my old doubts resurfaced. Despite the Fed's rhetoric, my program wasn't helping to make credit any more accessible for the average American. The banks were only issuing fewer and fewer loans. More insidiously, whatever credit they were extending wasn't getting much cheaper. QE may have been driving down the wholesale cost for banks to make loans, but Wall Street was pocketing most of the extra cash."


This is what has driven the meteoric rise in the stock market, the artificial rise in housing prices, the highest level of unemployment and food stamp usage in history. Look out below; cause here we come !!
It was apparent that sooner or later someone within the ranks would blow the whistle on the cabal because they either didn't get their fair share or because they had a crisis of conscience....not sure which happened to Andrew Huszar but be assured; this is the beginning of the crumble.


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UK Oct inflation falls more than expected to 13-month low

UK Oct inflation falls more than expected to 13-month low:

And here is exactly why they are complaining in the post below ! 

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Germany is ripping off the world: Ex-BoE member Adam Posen - Posen is basically crying foul because Germany is executing Capitalism perfectly. Just what the Brits always love to do !

Germany is ripping off the world: Ex-BoE member Adam Posen: ""First it doesn't pay its workers anything in commensurate with the productivity that they have, thereby cheating its own workforce. Second it invests nothing ever in the public sector or in the private sector. Third, those two combined means it's competing as a low wage economy," he said.

(Read more: German business: Europe should copy, not criticize surplus)
"Fourth, it rips off Europe and the rest of the world in that it gets a subsidy to its exports from a weaker euro than the deutschmark would be because of the weakness of other countries. And fifth, it tries to grab market share when there's lots of unemployment in the world thereby exporting deflation.""

Masterful plan and the only way the Euro will survive. If Germany begins to lose the Euro is dead !

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EU to fine banks billions of euros over rate rigging

EU to fine banks billions of euros over rate rigging: "The fines will add to the spiraling cost to banks for cleaning up past misdeeds. Globally this is expected to reach about $125 billion if JP Morgan agrees a $13 billion deal with the U.S. authorities over mortgages."

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This is What Happens to Walmart Pork Before It Reaches Your Plate | Zero Hedge

This is What Happens to Walmart Pork Before It Reaches Your Plate | Zero Hedge:


As much as I hate to post this as I feel like a hypocrite because I love my breakfast as much as the next guy, I feel it may be a small move towards thinking about alternatives


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Trulia Pushes The Panic Button As Young Adults Refuse To Move Out Of Parents' Basements, Get Jobs | Zero Hedge

Trulia Pushes The Panic Button As Young Adults Refuse To Move Out Of Parents' Basements, Get Jobs | Zero Hedge: "Below, courtesy of Bloomberg, is the summary of what Trulia chief economist Jed Kolko wrote in a note.

Census 3Q homeownership, vacancy survey shows household formation “alarmingly slow,” vacancies “remain stubbornly high,” Trulia chief economist Jed Kolko writes in note.
"Slow household formation number is one of the most alarming housing indicators to come out this year"
Share of millennials living with their parents rose to 31.6% vs 31.4% y/y
Household formation 380k in yr leading up to 3Q vs L-T “normal” increase of 1.1m
No increase over past yr in young adults moving out of parents homes or getting jobs is “most worrying”
Vacant homes still pose “problem” for recovery
53% of vacant homes were held off mkt in 3Q, highest share since before bubble
10.2% of all housing units are vacant, unchanged y/y, higher than pre-bubble level of 8.9% in 3Q 2001


And yet:

Oct. Trulia price, rent monitors show asking prices rose 0.6% m/m in Oct., prices up 11.7% y/y, rents up 2.7% y/y"

This is how you pump a market...in this case it's the fudged Govt. data working in concert with realtor organizations, herding the uneducated, TV watching, BS data believing; lemming-like public to the cliff. And when it crumbles they will all wonder why and how it happened.
And the Govt. will step in and create yet another pseudo- regulatory body ( think CFPB) whose apparent job it'll be to punish the evil shepherds ! But whose real agenda it'll be to create revenue via fines and law suits; for a busted Govt; with a constituent group of citizens who have no money to pay in taxes, no jobs and no immediate prospects of getting one.


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Earnings boost from buybacks gets scrutiny - Buy your own garbage if no one else is !

Earnings boost from buybacks gets scrutiny: ""Oracle would have lower EPS by 8.9 percent today while Direct TV would be 46.9 percent lower," had it not bought back its stock. Wynn's $3.14 per share earnings would 23 percent lower, and Motorola would be 17 percent lower, if it had not reduced shares outstanding from 323.6 million to 265.3 million."

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The VIX is an ephemeral beast beloved by talking-heads and options-market-makers alike (and now FX strategists). In a rather alarming note from CitiFX today, they are concerned over the chance of an explosive breakout as one of their favorite technical setups comes to pass - a double bottom within a triangle. If these levels break then the team expects a test of S&P 1000-1015.

In a note titled "Oh Dear...", CitiFX points out:

The set up on the VIX is now looking increasingly like a double bottom within a triangle. This often results in an explosive breakout.

The levels detailed below need to be watched carefully as if they go then there is a danger we get to out 1,000-1,015 target on the S&P a lot faster than we thought.

The pattern above is one of our favourites when completed (A double bottom within a triangle.)

So far we have not managed a daily close above the neckline which stands at 43.18%.

A close above here would complete the double bottom and suggest an impulsive move higher to at least 56%.

That is a problem. Not only does that suggest another sharp selloff in the S&P 500 but it creates an even bigger breakout.

It has not been our base case scenario that the 48.00-48.2% level will be broken on a weekly close basis on this chart. If, however that does happen then there is a real danger that our 1,000 target on the S&P gets hit much quicker than we think.

The pattern on the daily chart above suggests that if we close over 43.18% we will go over 56% which by definition means that a close over 43.18% suggests that the 48.00-48.20% area will give way.

A weekly close above here would almost certainly suggest a move to our 1,000-1,015 target on the S&P 500 extremely rapidly. Such a development would also strongly question our present view in today’s’ weekly highlights that further consolidation was likely in the short-term before the next move lower in “risk”.

The target on such a break for the VIX would be at least 80%+...we are now officially worried.

Economic effect from food stamp cuts may be as high as $10B - HUGE MISTAKE, DON'T UPSET THE MINIONS

Economic effect from food stamp cuts may be as high as $10B: "And while there are some abuses, the need for the program says something about the dichotomy of the stock market's soaring to new heights while income disparity widens to Great Depression-era levels."

"It may not matter to the economic data on which Wall Street hangs its fedora, but it is certainly enough to spark a political response," he said. "How this plays out, I honestly have no idea. We are in uncharted waters here, as the historical record clearly shows."

Another brilliantly idiotic "political play" move to set us on the path to civil unrest. Is the plan to destabilize us so the focus can be shifted away from the total shit show that's really occurring

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