The recent stock market and financial turbulence is going to get worse -- possibly a lot worse. This will be true even in the 'core' countries (US, Europe, Japan), while peripheral countries are suffering unusual levels of turmoil.
It’s nothing personal. This is simply how things were always destined to end.
- An Escalating Migrant Crisis and an Intensifying Search for Solutions
- Statement by Glenn Stevens, Governor: Monetary Policy Decision
- Are There Investing Opportunities For The Remainder Of 2015?
- Outrage builds over mentally ill man shot by off-duty cop at hospital
- Blood Plasma, Sweat, and Tears
- Let Coal Die A Natural Death
- U.S. Oil Production Nears Previous Peak
- The American Lawn: A Eulogy
There is a pretty clear path for those looking to pursue better health. Pretty much anyone can do it (Chris and I both did), and it doesn't cost a lot of money nor make you feel miserably deprived of life's joys. In fact, you'll look, feel, and actually be much better.
The word architecture generally brings to mind urban skylines, ultra-modern homes, and attention-grabbing skyscrapers—not favelas, waterside slums, and ravaged buildings. But creative architects around the world are working in challenging environments to improve the lives of the locals with innovative designs and building techniques.
During the past few decades, an estimated 80,000 refugees, mostly from Indonesia, have sought asylum in Australia. Fleeing war and civil unrest, with limited means and access to welfare or work, these asylum seekers are going hungry. More than 90% of those seeking protection experience food insecurity, 40% have gone to bed hungry in the past month, and 42% have lost weight since arriving in Australia because they didn’t have enough food to eat.
Photo by Paul Goddin. Article and images cross-posted from Mobility Lab. Author Jason Hardin is Arlington’s Capital Bikeshare Planner and a consultant to Arlington County (Virginia) Commuter Services.
- Robert Reich: The Upsurge in Uncertain Work
- Everything you’ve heard about China’s stock market crash is wrong
- Gold Coming Off the LBMA Spiked Last Week
- Bond Market Explosion Not Stoppable: Craig Hemke
- The Fed Is Dead Wrong
- Silver and Warnings From Exponential Markets
- Why So Much Oil Price Volatility? Blame The Speculators
- The Cross Of The Moment
- The Coddling of the American Mind
- With Ruble’s Decline, Russian Tourists Gain Appreciation for the Motherland
- China Construction Bank Posts Zero Profit Growth on Weak Economy
- Optimistic About Inflation, Stanley Fischer Suggests That Fed Will Stick to Plan on Rates
- In pictures: An emotional arrival in Europe
- The Black Route of Death From Syria
- Printing Money Goes Haywire in Venezuela
- The Solar Sunflower: Harnessing the power of 5,000 suns
- Gold Is the Best Insurance for Your Portfolio
- Consumer Anxiety in China Undermines Government’s Economic Plans
- Homes for the homeless
- Waste into Waistcoats: 3 Ways We’re Recycling Slaughterhouse Scraps
- In Alaska, Obama Will Be in Middle of Oil and Climate Change Battle
- Federal judge blocks Obama’s water rule
- The Green Rebuilding of Post-Katrina New Orleans
- Would warming stop after greenhouse gas emissions end? Not quite
When stock markets are free-falling 10+% in a matter of days, it’s natural to seek some answers to the question “why now?”
- Why global capital flows will determine everything
- What impact euphoria and fear wil have on liquidation and valuation
- The importance of debt denominated in other currencies
- What's likely as capital shifts from Risk-On to Risk-Off assets
If you have not yet read Part 1: Here's Why The Markets Have Suddenly Become So Turbulent available free to all readers, please click here to read it first.
In Part 1, we listed five interlocking trends that will severely limit the scale and effectiveness of official responses to the next recession. In effect, the world will not be able to “borrow and spend” its way out of recession.
In Part 2, we’ll examine the single most important dynamic in any asset value: capital flows.The Tidal Forces of Capital
Let’s start with the most basic building blocks of supply and demand.
Capital flowing into an assets class (buying) in excess of capital flowing out (selling) increases demand and pushes prices up.
If supply increases even faster than demand, prices may decline despite rising demand.
If capital flows out (selling) in excess of inflows (buying), prices will decline.
Prices are set on the margin. If 5 homes out of a neighborhood of 100 homes sell for 25% below the previous price level, the valuation of the other 95 homes also drops 25%.
Risk on = seeking asset appreciation and taking on more risk in exchange for higher yields.
Risk off = seeking capital preservation and accepting lower yields in exchange for reduced risk.
Assets have two ways to appreciate/depreciate: the nominal price, and the underlying currency the asset is priced in.
If a Mongolian bond yields 7%, the owner earned a nominal 7% on the capital. But if the currency the bond is denominated in dropped 20%, the owner suffered a 13% loss when the investment is priced in other currencies.
The consequences of capital flows can be counter-intuitive.
For example, if the Federal Reserve creates $1 trillion out of thin air, our initial expectation would be...
- Breaking The Mold
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- Carbon Fiber Cloth Can Generate Hydrogen
- Wireless electricity: Scientists send energy 55 meters away through air
- China’s jaw-dropping progress at reducing CO2 emissions in just 4 months
- South African prototype may solve solar power problem
- Is This The Beginning Of A Longer Oil Price Rally?
- Why a Left-Wing Socialist Is Poised to Become the Leader of Britain’s Labour Party
“You Fly to the Edge of the Tar Sands, and ... No Life”: A Montana Professor on the Issue of Our Time
In this week's Off The Cuff podcast, Chris and New Harbor Financial discuss the recent gyrations of the market.
- Are we witnessing a secular trend reversal?
- What's likely to happen next?
- How can prudent investors position themselves now?
- Where can shelter best be taken?
- Is it time for risk-seekers to place bets?
All these questions and more are addressed in this podcast. Needless to say, this is one of the most challenging times to protect capital in living memory.
- How China's economic slowdown could weigh on the rest of the world
- Australia 'sleepwalking into a mess'
- Paul Craig Roberts – A conversation on the world-wide stock rout
- What If The "Crash" Is as Rigged as Everything Else?
- The Amazing Harbinger of the Dow's 531-Point Slide
- An Assessment Of The Stock Market After the Mini Crash
- Deflationary Collapse Ahead?
- How companies make millions off lead-poisoned, poor blacks
- Fate Of U.S. Fracking Could Rest With Colorado Supreme Court
- Trees losing limbs in drought — a risk seen through storm season
Too big to fail is a seven-year phenomenon created by the most powerful central banks to bolster the largest, most politically connected US or European banks. More than that, it’s a global concern predicated on that handful of private banks controlling too much market share and elite central banks infusing them with boatloads of cheap capital and other aid. Synthetic bank and market subsidization disguised as ‘monetary policy’ has spawned artificial asset and debt bubbles - everywhere.
- The biggest Mexico risk factors investors need to watch
- Remittance risk
- Currency risk
- Capital flight risk
- Oil price risk
- Debt risk
- What Mexico must prioritize going forward to secure its future
Republican presidential candidate, Donald Trump has nabbed many a headline with his disparaging remarks on how Mexico is sending ‘bad’ Mexicans over the border to ostensibly steal US jobs and sell drugs. He has called US leaders ‘stupid’ for letting this happen. The truth of the US-Mexico economic relationship is entirely different.
According to Pew Research, between 2005 and 2010, 1.4 million immigrants moved back to Mexico from the US, 90 percent of them voluntarily. The total amount of 11.3 million unauthorized immigrants to the US has remained stable, not increased, over the past five years, having risen from about 3.5 million in 1990 to a peak of 12.2 million in 2007. The figure dropped between 2007-09, mainly due to a decrease in immigration from Mexico. Since 2009, an average of about 350,000 new unauthorized immigrants have entered the US annually, of which less than a third are from Mexico, compared to one half before the financial crisis of 2008. (Source)
There are other misunderstandings about the economic and financial relationship between the US and Mexico that transcend raising constituent anger about faux population movements. There is the matter of...
Think Little Free Libraries are just plain boxes filled with books? Think again. These otherworldly “branches” push the realm of Little Free Libraries to the outer limits.
This Doctor Who-inspired Little Free Library is an almost-life-size model of the famous TARDIS time machine and spacecraft.