Tag Archives: Mike Shedlock

Mish/ Mike Shedlock – Deconstructing And Debunking Shadowstats – 28 April 2015

MishMikeShedlockAn interesting article came my way today courtesy of a friend “BC”. The article is Deconstructing ShadowStats. Why is it so Loved by its Followers but Scorned by Economists? by Ed Dolan.

Mish readers likely know that I believe inflation to be understated, and that I also believe Williams’ ShadowStats is wildly on the high side. For example, please consider GDP, Real GDP, and Shadowstats “Theater of the Absurd” GDP.

I have also mentioned food inflation on many occasions. While food prices (especially beef) did jump in the last year or so, I recently bought chicken breasts for $.99 a pound and very lean center cut pork chops for $2.49. Sale prices on center cut pork chops have generally ranged from $1.79 to $2.49 for 15 years! Not on sale, I have seen them as high as $5.49. Continue reading

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Mish/ Mike Shedlock – Sad News For Greece? Will Greece Kiss Troika’s Ass? – 28 April 2015

MishMikeShedlockI am convinced the best thing for Greece is to tell the troika where to go. And recent events (at least until today) suggested Greece would do just that.

On the other hand, extreme sentiment is usually wrong. It may not be, it just usually is. So please consider the British betting site, William Hill.

Sentiment is so lopsided that the British betting site William Hill No Longer Accepts Bets On Greece. Continue reading

Mish /Mike Shedlock – Greece Boils Over; No Rules, Just Right; German Rabbits – 26 April 2015

MishMikeShedlockThe inevitable in Greece gets closer and closer. Looking back, I wonder how many rabbits in the hat there were. More importantly, how many still remain?

I believe the answer to the latter question is zero.

Yet, I also point out the propensity of German chancellor Angela Merkel to prolong the “not on my watch” inevitable. Meanwhile, the pot has is far more advanced than “simmering”. Continue reading

Mish / Mike Shedlock – ECB Buys Negative Yield Covered Bonds; Trade Guaranteed To Blow Up – 25 April 2015

MishMikeShedlockIn a move 100% guaranteed to blow up at a later date, the ECB Said to Start Buying Covered Bonds With Negative Yields.

The European Central Bank started buying covered bonds with negative yields as its asset-purchase program reduces the supply of the highly rated debt, according to two people familiar with the matter.

The central bank bought the debt in the past two weeks, said the people, who asked not to be identified because the information is private. The notes were from Germany, one of the people said. Continue reading

Mish/ Mike Shedlock – Spain’s Unemployment Rate Increases To 23.7%; 114,300 Jobs Vanish In First Quarter, Public Sector Jobs Rise – 24 April 2015

MishMikeShedlockThe economic recovery in Spain has gone from jobless to jobloss. Spain shed 114,300 jobs in the first quarter of 2015.

Via translation from El Pais, Spain’s Unemployment Rate Rose Slightly in the First Quarter.

The economic recovery has not been enough to create jobs. In the first three months of the year, the economy shed 114,300 jobs. The result has been a slight increase in the unemployment rate from 23.7% to 23.78% according to the Labour Force Survey (EPA) published by the National Employment Institute. Continue reading

Mish/ Mike Shedlock – Seven Year Negative Returns In Stocks And Bonds; Fraudulent Promises – 23 April 2015

MishMikeShedlockIt is extremely refreshing to see a large, prominent, and historically accurate fund manager lay it on the line.

GMO does that quarter after quarter, with no-nonsense projections.

As of March 31, their 7-Year Asset Class Real Return Forecast is as follows.
image: https://lucas2012infos.files.wordpress.com/2015/04/00ef0-gmo2b2015-04.png?w=300 Continue reading

Mish/ Mike Shedlock – Euribor Goes Negative, Banks Paid To Borrow from Each Other; ECB Risks Freezing Repo Market – 22 April 2015

MishMikeShedlockBanks Paid to Borrow From Each Other

Via massive QE purchases of bonds, ECB president Mario Draghi is flooding Europe with cash that European banks don’t want and cannot use.

One curious result of unwarranted QE is a negative interbank lending rate: Banks Paid to Borrow as Three-Month Euribor Drops Below Zero.

Banks in the euro area can now get paid to look after each others’ cash for three months as the European Central Bank’s bond-buying program floods the region’s money markets with excess liquidity. Continue reading