Archive for the ‘Economics’ Category

When Will the Lumbersexual Bubble Go Boom?

Wednesday, March 9, 2016 22:38 1 Comment

The Detroit resurrection of recent years is being tainted by the inanities of a creeping bubble, and accordingly, a multitude of poorly-allocated business investments. Once again, existing businesses have been growing at unprecedented rates and new businesses are springing up overnight, and that is in spite of many recent contractions and/or failures in the retail sector. [...]

This was posted under category: Detroit, Economics

No Recession in Texas

Saturday, March 5, 2016 15:13 No Comments

They lived high on the hog in Bubble McMansions near Houston, the economy tied to the oil industry. And now, a very different story all over Texas.   An apt quote from Zero Hedge from 2015: …what we are witnessing is not the after-effect of the “severe and protracted recession” -we are witnessing the continuation of the [...]

This was posted under category: Economics

Housing Bubble Idiocracy – Flipper’s Disease

Saturday, March 5, 2016 14:47 No Comments

RealtyTrac reports that, well, flippers are flipping houses again. “As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home flipping bandwagon,” said Daren Blomquist, senior vice president at RealtyTrac. “Not only is the share of home flips on the rise again, but we also [...]

This was posted under category: Economics

Holding Cash = “Nefarious Behavior”

Saturday, March 5, 2016 14:10 1 Comment

While world emperors are forcing Keynesian economic policy and negative interest rates to the point of financial chaos, these government shenanigans are turning savvy folks into cash hoarders and it gets them branded as likely terrorists. With economic growth an anemic 1%, many Swiss withdrew cash from the bank and stashed it at home or [...]

This was posted under category: Economics

Firing Bazookas at Financial Markets

Monday, February 29, 2016 17:29 No Comments

CNN Helicopter Money has run a headline, “Deflation is Back: Cue More Money Printing.” Consumer prices fell by 0.2% in Europe in February, inciting panic among the central banking inflationists. European Central bank President Mario Draghi has promised to pump more money into the system “if necessary.” To quote: Economists believe Draghi will fire another bazooka [...]

This was posted under category: Economics

Another Bubble Extravagance Hitting Its Peak

Sunday, February 28, 2016 12:19 No Comments

One outcome of a bubble era is irrational profligacy in corporate spending because business executives and managers can’t unravel the false market signals that lead to malinvestments and careless management of company assets and cash flow during a bubble period. Silicon Valley startups have been throwing around cash to carelessly buy luxury items as signing [...]

This was posted under category: Economics

Sports Authority Filing for Bankruptcy

Friday, February 26, 2016 10:26 No Comments

Another retail giant that has been oh-so-bloated for so long is about to go under. Sports Authority has been teetering on the edge for some time. From the article: Sources tell Reuters the company was unable to come up with a plan, leading it to make the decision to move toward bankruptcy. Of course there’s [...]

This was posted under category: Economics

Slavery and Digital Legal Tender

Friday, February 26, 2016 9:50 1 Comment

On January 31st, the Bloomberg View Editorial Board produced what may be the most unhinged and Orwellian piece I have read in quite some time: “Bring on the Cashless Future.” Cash had a pretty good run for 4,000 years or so. These days, though, notes and coins increasingly seem declasse: They’re dirty and dangerous, unwieldy and expensive, antiquated and so [...]

This was posted under category: Economics

[Fill in Blank] Retail Closings

Thursday, February 25, 2016 17:40 2 Comments

With the current state of retail contraction, Kohl’s has announced store closings. Kohl’s follows other retailers hunkering down and shedding costs, including Walmart, Macy’s, J.C. Penny, Barnes & Noble, Office Depot, Gap, American Eagle, Aeropostale, Abercrombie & Fitch, Wet Seal, and Kmart/Sears. That’s quite a list of recent closure announcements. These retailers have all been growing their immense brick-and-mortar malinvestment [...]

This was posted under category: Economics

Monopoly Joins the War on Cash

Thursday, February 18, 2016 5:27 No Comments

With its cashless version of electronic banking Monopoly. Is there anything worse in a game of Monopoly than thinking you’ve bankrupted another player only to discover they have a secret stash of cash hidden away? That’s no longer an option with the new Monopoly Ultimate Banking edition that uses a tiny ATM to keep track [...]

This was posted under category: Economics