Saturday, July 25, 2015

The Next Financial Disaster Starts Here

Carl Icahn says this market is in a bubble… and that there’s “going to be a great run to the exits.”
Icahn is one of the world’s most successful investors. He’s worth $21.5 billion. According to Forbes, he’s the 31st richest person on the planet.
Last week, Icahn said that junk bonds are “extremely overheated.”
Junk bonds are usually issued by companies with shaky finances. They pay high interest rates to compensate investors for their high risk.
•  Low interest rates have pushed investors into these risky bonds…
Junk bonds have become popular in recent years. They’re one of few places where investors have been able to get a decent income stream.  (more)

This Has Never Happened To Gold Before

For the first time since records began, hedge funds are net short gold futures, according to CFTC data...

This is what happened the last time gold saw a 'low' net long position...

Is this why Gold is spiking this afternoon?


‘V’ The Guerrilla Economist on Greece, China, Petrodollar demise, more

The Recent Carnage In The Gold Market And The Riskiest Rate Hike Ever

from KingWorldNews:
Jeffrey Saut’s note regarding the carnage in the gold market: Yesterday, however, I got some really interesting questions. One came from a portfolio manager who wanted to know, “Have you heard any chatter regarding margin calls within gold and or the gold miner sector?” Given the carnage in the gold space, it is certainly a question to ponder. In my view, gold entered a bear market in 2012, but the recent Gold Gotcha’ began in earnest last June when the Chinese stock market lost about one-third of its value.
As it turns out, Chinese brokerage firms were allowing gold to be used as collateral in margin accounts for participants to buy Chinese stocks. When the Chinese stock market started to melt down, not only were stocks liquidated, but so was gold. That exacerbated the decline in gold prices around the world with a concurrent “hit” to the gold mining stocks. As a sidebar, a 50% retracement of gold’s entire 2001-2011 rally comes in at $1088 per ounce.
Jeffrey Saut Continues @