Saturday, November 9, 2013

Can We Support 75 Million Retirees in 2020?

by Charles Hugh-Smith
All financial schemes for retirement are misdirections of the real challenge, which is creating enough real-world surplus to support 75 million retirees.
I received a number of interesting comments on my recent series on the insolvency of the Social Security Ponzi Scheme:
The Generational Injustice of Social (in)Security (November 6, 2013)
The Problem with Pay-As-You-Go Social Programs: They’re Ponzi Schemes (November 5, 2013)
There are two questions here:
1. How can we sustainably pay for [...]  (more)
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Deutsche Bank: “Yellen May Actually Have To Increase QE” – Here’s Why

With what few vacuum tube-based trading algos are left and reacting with rabid kneejerkiness to every flashing red headline, one would get the impression that what matters to the Fed’s decision on how to adjust its balance sheet flow depends on the US economy. But if Deutsche Bank is correct, the next source of global economic contraction, which it will be up to the Fed to offset (just like China was the marginal growth dynamo in the months after Lehman filed), and result in an increase in QE nevermind taper, is not in the US at all, but in China where things are about to go bump in the night. Which means that just like that we have moved into the “New Normal paradigm” where the worse the news out of China, the better for stocks.
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The Next Wave Of Massive Wealth Destruction Is Imminent /
On the heels of a smash in the gold and silver markets, today the 42-year market veteran who correctly predicted that the Fed would not taper warned King World News that that the next wave of massive wealth destruction is now imminent.  Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this extraordinary interview.
Greyerz:  “As stock markets are booming, fueled by unprecedented liquidity, the financial system is under more pressure than ever.  A couple of your recent guests have been talking about the Fed’s balance sheet, and the fact that it’s leveraged 70 times….
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The End of Barack Obama - Stansberry's Investment Advisory, How To Profit From the Coming Economic Collapse

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Stock Market Warning: Margin Debt Hits Record-High $401 Billion / By Sasha Cekerevac
I had an interesting conversation the other day with a friend of minewho asked a very compelling question: with margin debt in the equities market hitting a new all-time high—$401 billion on the NYSE in September—is this a sign of a market top?
To find out what this really means, we have to dig a little deeper into how this can affect the equities market.
An increase in margin debt is really a story of investor sentiment. As the equities market moves up, this gives people more confidence and therefore increases investor sentiment. Many investors then borrowmoney to invest in the seemingly bullish market—this creates margin debt.
Now, this all sounds great on the way up, but in the end, the problem with higher levels of margin debt is twofold.
First, the very fact margin debt is increasing can be looked at from various angles. One is the obvious point of view that investor sentiment is becoming increasingly bullish on the equities market, so people are borrowing to get in on the action.
Another way to look at higher levels of margin debt is that while borrowing money to put into the equities market is bullish, as more money is chasing the same number of shares, at some point, if everyone is in the market, who’s left to buy?
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Coal: The World's Most Hated Resource Is a Buy

If I had to point to a segment of the natural resources sector with the lowest investor sentiment right now, it might well be coal.
Coal is thought of as antiquated and brutish, a relic that will soon be excised from the ranks of global energy markets.
It's easy to see why. On the surface, there's a lot to dislike about coal. The biggest strike against the industry is environmental. This month, the news has been rife with stories about record air pollution nearly shutting down a number of cities in northern China.
Whether it's for these environmental reasons -- or simply a matter of economics -- there's a sense that the world is turning away from coal.  (more)

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Day Trading Using Candlestick Charts

Day trading was made famous during the tech bubble of 2000.   From October of 1998 to March of 2000, the NASDAQ composite index went from 1492 to 5048, a whopping 240% return in 17 months.  I remember infomercials touting day trading as a career!!  Day trading back then was buy the open and sell the close. NEVER confuse genius with a bull market.  In this informative piece I will highlight intra-day high probability of success set-ups using popular candle patterns.   I'm assuming our readers have basic knowledge of candlestick construction.  I prefer analyzing intra-day candle set-ups because of the rapid dissemination of market information. I don't like to be the last one to show up at the party!  I will be highlighting the Engulfing formation. Let us review:
Bullish Engulfing Pattern:
The bearish candle real body of Day 1 is usually contained within the real body of the bullish candle of Day 2.  On Day 2, the market gaps down; however, the bears do not get very far before bulls take over and push prices higher, filling in the gap down from the morning's open and pushing prices past the previous days open.  The power of the Bullish Engulfing Pattern comes from the incredible change of sentiment from a bearish gap down in the morning, to a large bullish real body candle that closes at the highs of the day. Bears have overstayed their welcome and bulls have taken control of the market. (more)

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