Another great article from Mr Hudson. We can’t but agree, the Governments don’t represent the People anymore. This is not Democracy, this is Financial Oligarchy. Welcome to the new order, until people get fed up.
The seeds for President Obama’s demagogic press conference on Thursday were planted last summer when he assigned his right-wing Committee of 13 the role of resolving the obvious and inevitable Congressional budget standoff by forging an anti-labor policy that cuts Social Security, Medicare and Medicaid, and uses the savings to bail out banks from even more loans that will go bad as a result of the IMF-style austerity program that Democrats and Republicans alike have agreed to back.
In order to get some perspective on the Economy and Markets, while the News feed strikes us with all the risk on/risk off news, below two videos by great minds. Remember, Napier’s long term SPX price target is around 400, give or take a couple of handles.
Earlier this spring, we wrote extensively on the increasingly polarization of the US society. With Occupy Wall Street, we have seen the green shoots of people fed up with the system. The Melting Pot has just started boiling, and expect more to come. Further great reading After the Empire by the French historian Emmanuel Todd. Below Hudson on implication of Occupy Wall Street.
Occupy Wall Street, like the Tea Party, is something that needs to be taken seriously. It is tapping into a populist anger that has been building for several years. But, just as ‘the bankers’ are at the center of the movement’s crosshairs, politicians who have made poor policy decisions seemingly based upon an all-too-cosy relationship with the financial sector, will undoubtedly be dragged into the debate before long.
Gimmicky attempts to ingratiate themselves such as The Buffett Tax and the constant demonizing of the rich and successful will ultimately be a futile exercise.
The long awaited fresh Things that Make you go Hmmm report, on Buffet, Occupy Wall Street, Gold, Europe, Greece and much more.
Weekend reading explaining the Ticking Euro Bomb.
The Greek crisis has revealed why the euro is the world’s most dangerous currency. The euro was built on a foundation of debt and trickery, where economic principles were sacrificed to romantic political visions. The history of the common currency is the story of a good idea that turned into a tragedy of epic proportions. By SPIEGEL Staff.
There are a lot of reports on Volatility, by clever quants, but very few actually understand Volatility, how to trade it, and what drives it. Mr Cole of Artemis Capital Management, has once again produced another must read Volatility report. Earlier this spring, we published his “Broken Volatility” report, which was the best piece we had read in along time, and besides that, it proved to be very accurate. Enjoy reading.
The world economy is fighting a fearsome wildfire as the European sovereign debt crisis burns its way closer toward the tinderbox of a second global recession. The insolvency inferno has no prejudice and will fuse to the flesh of any asset class fueling a blistering spiral of correlation and volatility. The third quarter of 2011 was characterized by explosive movements in equity markets as the S&P 500 index declined -14% in the worst performance since the crash of 2008. Global indices officially entered bear market territory with the MSCI All-Country World Index down more than -20% since peaking in May. The 10-year US Treasury yield reached the lowest level on record in September as credit markets braced for an economic slowdown. Over the quarter implied volatility increased +96% as the VIX index climbed to 42.96. If you heeded the omens of variance markets earlier this year you were richly rewarded by this increase in volatility.
More selling ahead…Guest post by Macro Story.
A weekly update of market and economic indicators across various asset classes.
Copper VS SPX
More Charts continue.