While the precious metals are totally off the radar by the majority of investors, silver is setting up for one major bull market. Yes, it’s hard to believe as the gold and silver prices have been trending lower while the broader markets grind up higher, but if we look at the fundamental and technical indicators, the stock market and precious metals are now at extreme opposites.
The U.S. Supreme Court held in 1895 that the federal government had no power under the U.S. Constitution to tax interest on municipal bonds. But, in 1988, the Supreme Court stated the Congress could tax interest income on municipal bonds if it so desired on the basis that tax exemption of municipal bonds is not protected by the Constitution. In this case, the Supreme Court stated that the contrary decision of the Court 1895 in the case of Pollock v. Farmers' Loan & Trust Co. had been "effectively overruled by subsequent case law."
A stone slab bearing 3,000-year-old writing previously unknown to scholars has been found in the Mexican state of Veracruz, and archaeologists say it is an example of the oldest script ever discovered in the Western Hemisphere. — John Noble Wilford, New York Times, 15 Sept. 2006 Large public buildings often bear only a loose resemblance to what was originally in the minds of the architects who designed them. Things get cut back to save money; somebody has second thoughts about the way part of the building will function; it takes so long to get public approval that the original idea starts to seem dated … — Paul Goldberger, New Yorker, 17 Jan. 2002 The most famous work of Louis Pasteur (1822-1895), of course, was purifying milk with the process that now bears his name. — Brendan Miniter, American Enterprise, September/October 1998 In so-called parking schemes, securities aren't carried on the books of the true owner but are temporarily sold to someone else with the understanding that the seller will continue to bear any risk of loss and reap any profits. — James B. Stewart, New Yorker, 8 Mar. 1993 As a science fiction buff, many years ago, I remember being particularly fascinated by tales of genetic surgery. Imagine the surgeon … peering through the electron microscope, repairing the sickle-cell gene and returning the ovum to its mother, who would then bear a normal child. — Richard Novick, New York Times Book Review, 15 Feb. 1987 The sight of Niña already there, snugged down as if she had been at home a month, finished Martín Alonso Pinzón. Older than Columbus, ill from the hardships of the voyage, mortified by his snub from the Sovereigns, he could bear no more. — Samuel Eliot Morison, The European Discovery of America, 1974 a symphony that can bear comparison with Beethoven's best The company agreed to bear the costs. The criminals must bear full responsibility for the deaths of these innocent people. Who will bear the blame for this tragedy?
As of early March 2009, the Dow Jones Industrial Average had fallen 20% since the inauguration of President Barack Obama (less than two months earlier), the fastest drop under a newly elected president in at least 90 years. Editorials in the Wall Street Journal by the editorial staff and Michael Boskin, one of George H.W. Bush's Council of Economic Advisors, blamed this on Obama's economic policies.
This is untrue, because cycles of business activity have their origin in the expansion and contraction of credit, whose origin in turn is in central banks’ monetary policy and fractional reserve banking. Cycles of credit are then manifest in variations of business activity. Cycles are the cause, booms and slumps the consequence. It follows that if we understand the characteristics of the different phases, we can estimate where we are in the credit cycle. Read More
If you were standing in the smoldering ashes of 9/11 trying to peer into the future, you might have been overjoyed to discover this happy snapshot of 2018: There has been no subsequent major terrorist attack on America from Al Qaeda or its heirs. American troops are not committed en masse to any ground war. American workers are enjoying a blissful 4 percent unemployment rate. The investment class and humble 401(k) holders alike are beneficiaries of a rising GDP and booming stock market that, as measured by the Dow, is up some 250 percent since its September 10, 2001, close. The most admired person in America, according to Gallup, is the nation’s first African-American president. Read More
*** “Treasury officials said their decision to halt the issuance of the 30-year bonds was intended to save the government money,” writes Gretchen Mortgensen in the NY Times. “Traders scoffed at that explanation, viewing the move as an almost desperate attempt to push down long- term interest rates, and prod both corporate and individual borrowers to spend again.”
By the way, investors are keeping an eye on Washington’s relationship with other major economies, including Canada. Both the United States and Canada are yet to secure a deal that would replace the North American Free Trade Agreement (NAFTA). Lest we forget, Trump did threaten to leave Canada out of the new NAFTA. He said that there was “no political necessity” to have Canada in the new NAFTA deal. This has been challenged by Richard Trumka, president of the AFL-CIO. Trumka categorically mentioned that NAFTA won’t work if Canada isn’t included and that the new deal structure remains too vague.
The result is banks and their attending insiders are a de facto Committee of Central Planners in the great Soviet style. What is fashionable and exciting to them can happen, and what they dislike or disapprove of for any reason can never happen. And once on a completely fiat system, this is how capital is allocated through our entire system: badly. Read More
If I were the devil, I would desire the most efficient system of governance whereby maximum control could be exerted over the greatest amount of people at any given time. I would identify those who stood in my way and take them down either by force or subversion. There would be no room in my world for individuality, free thought, or vain imaginings of anything, or anyone, more powerful than me. As an orchestrator of chaos, the only unity I could tolerate would be that which served both my means and ends.
The Peerless Stock Market Timing system of automatic trading that I use has given what I call a “near Sell S9”. The “Peerless Sell S9” I invented has a pretty amazing track record. Here are recent examples. But there were many more in earlier years. October 1987 July 1990 July 1998 January 2000 February 2001 May 2002 July 2007 December 2007 March 2008 May 2008
There’s simply no single answer to the question: What causes a bear market? It might be monetary conditions, yield curve shifts, surpluses, a sector implosion, excess demand reverting or bad legislation impacting property rights. But it likely won’t be what it was last time. Two bear markets in a row rarely start with the same causes because most investors are always fighting the last war and are prepared for what took them down last time.
AnnS, your “tri-county area” is undoubtedly flyover/filler state crap. And that’s why the banks are quick to take it back and unload it as soon as possible, because it most likely didn’t run up significantly to begin with thus the losses won’t be steep (and most likely the bulk of these properties were already FHA/VA/FME/FRE backed or will be now). In prime areas the banks are looking at jumbo loan balances that they and they alone are on the hook for the losses – often to the tune of 6 or even 7 figures EACH.
Usage Note: Thanks to the vagaries of English spelling, bear has two past participles: born and borne. Traditionally, born is used only in passive constructions referring to birth: I was born in Chicago. For all other uses, including active constructions referring to birth, borne is the standard form: She has borne both her children at home. I have borne his insolence with the patience of a saint.
One of the strangest things about this strangest-ever expansion has been the way pretty much everything went up. Stocks, bonds, real estate, art, oil – some of which have historically negative correlations with others — all rose more-or-less in lock-step. And within asset classes, the big names behaved the same way, rising regardless of their relative valuation.
*** Reviewing yet another of the government’s attempts to revive the economy, Christopher Byron writes (in MSNBC): “…the stimulus being proposed – roughly $100 billion at last tally – is utterly trivial when measured against the collapsed stock values in the tech sector. [It] doesn’t even offset the $450 billion in lost value in a single company – Cisco Systems, Inc.”